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Comcast Q2 2022 Earnings

NBCUniversal launches new Peacock streaming service.

Todd Williamson | Peacock | NBCUniversal | Getty Images

Comcast reported second-quarter revenue and earnings that beat analysts’ estimates, but the cable provider didn’t add broadband customers in the quarter for the first time.

Comcast’s high-speed Internet customer base was flat in the quarter, missing the average analyst estimate of 84,000 customers, according to FactSet. Revenue increased 5.1% to $30.02 billion from a year ago, helped by NBCUniversal’s theme parks and studios. Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, rose 10.1% to $9.8 billion.

Comcast shares fell more than 6% in premarket trading.

Comcast is seeing increasing competition for high-speed broadband, its most profitable product. For more than a decade, the cable industry dominated the home broadband market, but wireless companies like T-Mobile are now competing with 5G home Internet products. T-Mobile added 560,000 broadband users in the second quarter, up from 338,000 in the first quarter.

Here are the key numbers:

  • Earnings per share: $1.01, adjusted from an estimate of 92 cents, according to Refinitiv
  • income: $30.02 billion, compared to estimates of $29.68 billion, according to Refinitiv.
  • High-speed Internet customers: 0 vs. 84,000 net additions, according to the average estimate of analysts polled by FactSet.

In a statement, Comcast Chief Executive Brian Roberts called the drop temporary as macroeconomic conditions, such as high inflation, limit the number of new connections for the company. Broadband revenue rose 6.8% year-over-year to $6.1 billion in the quarter, thanks to higher rates and more residential customers than a year earlier.

“We achieved our highest adjusted EBITDA margin on record even in the face of a unique and temporarily evolving macroeconomic environment that temporarily pressured our new customer onboarding volume,” Roberts said.

Since March 2020, Comcast has added more than 3 million broadband customers.

Video clients submit

Comcast lost 521,000 video customers in the quarter and lost 1 million video subscribers in the first six months of 2022. Consumers are rapidly abandoning traditional pay-TV subscriptions in favor of streaming options such as Netflix, Disney+, HBO Max and NBCUniversal’s Peacock. .

Brian Roberts, Chairman and CEO of Comcast

David A. Grogan | CNBC

Voice subscribers fell by 286,000 in the quarter, although wireless subscribers jumped by 317,000. Wireless revenue increased nearly 30% year-over-year to $722 million. Business services rose 10% to $2.4 billion.

NBC Universal

NBCUniversal’s revenue rose 18.7% in the quarter to $9.4 billion. Adjusted EBITDA for NBCUniversal rose 19.5% to $1.9 billion.

The studio’s earnings increased more than 33% to $3 billion thanks to Jurassic World: Dominion, which topped $900 million worldwide.

Universal’s theme park business continued to recover after last year’s slowdown due to the Covid pandemic. Revenue jumped about 65% to $1.8 billion. Adjusted EBITDA rose 187% to $632 million, the Parks division’s highest-ever second quarter EBITDA.

Peacock’s paid subscribers remained flat at 13 million after growing by 4 million last quarter. Comcast said it expects “Jurassic World: Dominion” and two movies coming to theaters in the third quarter — “Minions: Rise of the Gru” and Jordan Peele’s “No” — to help boost Peacock subscribers when they arrive on a streaming service. after their box office windows end. “Sunday Soccer” and the World Cup, which kicks off Nov. 21, should also help boost the Peacock’s total subscribers later this year, according to Comcast.

Here’s how Comcast’s divisions did in the quarter compared to a year earlier:

  • Cable Communications revenue was $16.6 billion, up 3.7% year-over-year
  • Media brought in $5.3 billion in revenue, up 3.6%
  • Studios revenue was $3 billion, up 33.3%
  • Theme parks brought in $1.8 billion in revenue, up 64.8%
  • Sky’s profit was $4.5 billion, down 13.8%

Disclosure: Comcast is the parent company of NBCUniversal, which includes CNBC.

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Comcast Q2 2022 Earnings

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