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Comcast (CMCSA) earnings Q3 2024

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Comcast beats earnings expectations as the Olympics propel the company

Comcast beat third-quarter revenue expectations Thursday because the Summer season Olympics in Paris boosted NBCUniversal’s income and Peacock’s subscriber base.

Comcast shares rose 6% in early buying and selling Thursday.

This is how Comcast carried out, in comparison with estimates from analysts surveyed by LSEG:

  • Earnings per share: $1.12 adjusted versus $1.06 anticipated
  • Acquire: $32.07 billion versus $31.66 billion anticipated

For the quarter ended September 30, internet revenue fell 10% to $3.63 billion, or 94 cents per share, from $4.05 billion, or 98 cents per share, a 12 months earlier. Adjusted earnings earlier than curiosity, taxes, depreciation and amortization, or EBITDA, fell 2% to about $9.74 billion. Adjusted for one-time gadgets, Comcast reported earnings per share of $1.12 for the quarter.

The corporate’s income rose 6.5% to $32.07 billion in comparison with the identical interval final 12 months. Total income was boosted by the Summer season Olympics in Paris, which NBCUniversal broadcast completely within the US, and home broadband revenues – regardless of continued slowing buyer progress.

Revenues for the media section – ​​which consists primarily of NBCUniversal – rose almost 37% to $8.23 billion, thanks largely to the Olympics. Excluding the Summer season Video games, turnover elevated by virtually 5%.

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The media section additionally consists of NBCUniversal’s cable tv networks, together with Bravo, Syfy and CNBC. Throughout Thursday’s name, Comcast President Mike Cavanagh introduced that the corporate is exploring a separation of its cable community enterprise.

This greater than offset the decline in adjusted EBITDA for the media section, attributable to larger working prices associated to the Olympic Video games, in addition to larger programming prices at Peacock and in different sports activities TV applications.

The Summer season Olympics in Paris proved to be successful for NBCUniversal, drawing a median of 31 million viewers per day throughout NBC’s TV and streaming platforms and producing a file $1.2 billion in promoting income, CNBC beforehand reported.

This elevated complete income for the content material and experiences section – ​​which additionally consists of theme parks and film studios – by 19.3% to roughly $12.6 billion. That complete consists of $1.9 billion in extra income from the Paris Olympics.

Peacock additionally loved a lift from the Olympics – the place the whole lot of the Video games was streamed completely – with 3 million extra subscribers. The variety of paid subscribers for the platform elevated 29% 12 months over 12 months to 36 million. Peacock’s income rose 82% to $1.5 billion.

NBCUniversal Peacock

Todd Williamson | Peacock | NBCUniversal | Getty Pictures

Losses from Peacock improved for the section, with an adjusted EBTIDA lack of $436 million through the quarter, in comparison with $565 million in the identical interval final 12 months.

The corporate’s movie studios, that are additionally a part of the content material and experiences section, noticed income enhance 12.3% to $2.83 billion in comparison with the earlier 12 months. Theatrical revenues had been boosted by the latest profitable releases of “Despicable Me 4” and “Twisters.”

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NBCUniversal’s theme park income fell 5.3% to about $2.3 billion attributable to decrease attendance. Theme parks have been a heavy burden on the enterprise of late as rising customer numbers following Covid lockdowns have cooled.

In the meantime, the broadband division – the cornerstone of Comcast’s enterprise – continued to mirror ongoing business developments.

The expansion within the variety of cable broadband clients within the sector has decreased. Comcast executives have attributed this to a slowdown in house shopping for and promoting. Competitors has additionally elevated from wi-fi carriers reminiscent of Verizon and T-Cellular.

It was a blended bag for Comcast this quarter. The federal government’s Reasonably priced Connectivity Program (ACP), which provided a reduction to eligible low-income households, ended earlier this 12 months.

Whole internet home broadband losses had been 87,000, however excluding losses arising from the tip of the ACP nations, the corporate estimates there was a progress of 9,000 clients.

On Thursday’s name, CFO Jason Armstrong famous that the broadband enterprise usually advantages from back-to-school exercise within the third quarter, and remained according to that development this 12 months.

Home broadband income rose 2.7% to $6.54 billion from the prior 12 months, and common income per consumer – the continued supply of progress for the section regardless of lagging additions – rose 3.6%.

In the meantime, Comcast’s wi-fi enterprise added 319,000 clients, bringing its complete to about 7.5 million strains. The corporate misplaced 365,000 cable TV clients through the quarter.

Disclosure: Comcast owns NBCUniversal, the mum or dad firm of CNBC. NBCUniversal owns NBC Sports activities and NBC Olympics. NBC Olympics is the U.S. broadcast rights holder for all summer time and winter video games by way of 2032.

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