Stocksak: Comcast beats quarterly revenue but broadband and advertising growth is muted

© Stocksak. FILE PHOTO : The Comcast NBC logo can be seen on a building located in Los Angeles, California, U.S.A June 13, 2018. REUTERS/Mike Blake

By Eva Mathews & Helen Coster

(Stocksak). -Comcast Corp’s Third Quarter Revenue edged above Wall Street’s Expectations on Thursday. This was due to a steady rebound at its studios and theme parks businesses, but slow broadband subscriber growth continues to weigh on the media company.

Comcast (NASDAQ) added 14,000 broadband customers to its quarter, compared with the hundreds of thousands at the height of the pandemic. This was due to competition from telecom companies that have been offering attractive deals on wireless and internet plans to price conscious Americans.

Thursday’s call with investors was a call where Comcast executives acknowledged rising inflation. They said that they expect media growth will be affected by cutbacks in pay-TV cords, pullbacks in advertising spend, and higher costs for broadcasting the World Cup soccer tournament.

The media giant expects to also take a hit on its cable networks due to the damage caused Hurricane Ian, which includes broadband customer losses.

Comcast’s media arm, NBCUniversal, reported a 35% drop in advertising sales compared with the same quarter a previous year when it broadcast the Olympics. It reported 15 million paid subscribers to its Peacock streaming service, an increase of 13 million in the previous quarter.

Refinitiv data shows that total company revenue fell 1.5%, to $29.85 trillion in the third quarter, compared to estimates at $29.65 billion.

Comcast’s net loss was $4.6 Billion, or $1.05 per Share, compared to a profit in the same year of $4.04 Billion, or 86 Cents per Share.

Partially due to an $8.6 Billion goodwill impairment charge in Sky’s UK pay-TV company Sky, the net loss was also due to this.

Comcast earned 96c/share, excluding certain items, exceeding expectations of 90c.

The success of films like “Jurassic World: Dominion”, “Minions: The Rise of Gru” and “Minions: The Rise of Gru” drove Comcast’s studios profit to triple to $537 million in quarter.

Shares rose 8% Thursday.

News Source and Credit

Stocksak Editorial

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