Comcast Q1 Revenue Slips 4% But Beats Forecasts; NBCUniversal Hits 22 Million Peacock Subscribers As It Turns Page From Jeff Shell
Comcast reported a 4% year-over-year dip in revenue in the first quarter, to $29.7 billion, but still exceeded Wall Street forecasts.
Analysts had expected $29.3 billion in revenue. Earnings per share, meanwhile, handily beat expectations at 92 cents.
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Revenue in the company’s Connectivity & Platforms division (which includes broadband, wireless and cable TV operations) fell 2% to $20.153 billion, though the company said it was flat when foreign currency impacts are excluded. The unit continued to see a sizable decrease in video customers, with 614,000 residential customers leaving the fold during the quarter.
Media revenue fell 20% to $6.152 billion, largely due to comparisons with the year-ago period when the Beijing Olympics and the Super Bowl were part of the quarterly results. Even when those events are taken out, however, revenue still dipped 2%. Domestic advertising revenue dropped 6% when Beijing and Super Bowl are not counted, with the company blaming the downturn on “lower revenue at our networks, driven by audience ratings declines.”
The earnings release came just days after the stunning ouster last Sunday of Jeff Shell as CEO of NBCUniversal. The exec apologized for having had an “inappropriate relationship” with a female colleague, and the company said it dismissed him for cause because Shell had sexually harassed and discriminated against her. Comcast President Mike Cavanagh has assumed Shell’s duties on an interim basis.
NBCU said streaming service Peacock is now at 22 million subscribers, up more than 60% from the same period in 2022. Revenue at Peacock increased 45% to $685 million, though losses continue to hit the balance sheet. Higher costs at Peacock contributed to a 25.5% downturn in EBITDA in Content & Experiences, to $880 million.
The Studios unit saw revenue inch up just 2% to $2.96 billion, though adjusted EBITDA climbed 13% to $277 million. Grosses from Puss in Boots: The Last Wish and M3GAN helped boost the unit.
Theme Parks revenue shot up 25% to $1.95 billion, with EBITDA rocketing 46% to $658 million compared with a year-ago period affected by a wave of Covid shutdowns.
The quarterly numbers did not include the April 5 release of The Super Mario Bros. Movie. The film is well on its way to $1 billion in global box office and should stimulate ancillary sales and theme park business for many quarters to come.
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