Comcast It broke Wall Street estimates on Thursday due to second-quarter revenue and revenue. However, the company saw the loss of broadband customers, even as it pivots its segment market strategy.
Comcast and its cable peers are struggling with slowing broadband growth, affecting the company’s stocks. Comcast shares rose about 4% in pre-market trading.
According to LSEG, here is how Comcast did it in the second quarter compared to Wall Street estimates:
Earnings per share: $1.25 adjusted vs. $1.18 forecast revaluation: $303.1 billion vs. $29.81 billion
Revenue of $303.1 billion increased 2% year-on-year.
In the second quarter, the company’s net profits leaps forward with the sale of its shares in streaming service Hulu. Disney. As a result, net income was $3.93 billion, or $1 share per share, or $2.98 per share, or $2.98 per share, for the same period last year. Adjusting one-off items, including Hulu Sale, Comcast reported a profit of $1.25 per share.
Adjusted revenue prior to interest, tax, depreciation, amortization or EBITDA increased by 1% to $10.28 billion.
Revenue for Comcast’s connectivity and platform business, including Xfinity brand broadband, mobile, pay TV and other services, totaled $203.9 billion, up about 1% from the same period last year.
The company lost 226,000 broadband customers in the quarter. The majority came from residential clients. Comcast recently pivoted a broadband strategy, including a new pricing plan, to address ongoing industry issues and increased competition with alternative providers such as 5G and so-called fixed wireless.
Meanwhile, Comcast added a record 378,000 mobile customers, bringing its total line to penetration of 8.5 million or 14% of broadband customers. Comcast and Charter Communications are leaning towards mobile business for growth.
Pay TV customers’ losses continued for Comcast, with the bundle being removed during the 325,000 quarter.
The company’s content and experience business, including NBCuniversal, its film studios and theme parks, saw revenue rise by 5.6% to $10.63 billion.
In particular, film studio revenues rose 8% to $2.43 billion. It was unlocked with the release of “How to Train Your Dragon,” which debuted in June and has so far earned more than $600 million at the global box office.
Universal Theme Park revenues rose 19% to $2.35 billion, following the launch of the epic universe.
Media Business (NBCUniversal) reported revenues of $6.444 billion, an increase of nearly 2% from the same period last year.
Domestic advertising revenue fell 7% to $1.855 billion as the industry struggles with the weakness of the paid TV business’ advertising market. NBCuniversal nevertheless released its records this year as advertisers were drawn to the upcoming slate of live sports programming.
Peacock, NBCuniversal’s streaming platform, has remained flat at 41 million subscribers since the first quarter. Peacock’s revenues rose 18% to $1.2 billion, helping to offset a decline in domestic advertising in the media segment.
Peacock reported a quarterly loss of $101 million. This is an improvement due to a loss of $348 million in the same period last year. NBCuniversal has been working to make its streaming platform profitable. Other services have already reported being in black.
Last year, Comcast announced it would spin-off its portfolio of cable networks, including CNBC. The transaction is expected to be completed later this year.
Disclosure: Comcast is the parent company of CNBC.
This story is developing. Please check for updates.
