Comcast reported a mixed second quarter as the company missed revenue estimates, beat earnings, and Peacock lost 500,000 paid subscribers compared to the previous quarter.
Company-wide revenue for the period ended June 30 fell 2.7% year-on-year to reach $29.7bn, however adjusted earnings per share increased 7% to $1.21. Adjusted net income climbed marginally to $4.7bn, and adjusted EBITDA fell marginally to $10.2bn.
Stock dropped 2.6% to $38.51 after closing.
Peacock currently commands a base of 33m members. Executives were understandably more eager to tout a 38% year-on-year increase.
Revenue at the streamer increased 28% to $1bn, marking the best year-over-year improvement in adjusted EBITDA for any quarter since the platform launched in 2020. In another positive sign, losses improved to $348m loss compared to $651m a year ago.
Peacock is part of the media division within the content and experiences unit and media revenue climbed 2.1% to $6.3bn and adjusted EBITDA increased 9% to $1.4bn driven by improved performance at the streamer.
However revenue at the studios division fell by 27% year-on-year to $2.3bn due to a smaller pipeline and lower content licensing revenue.
Theatrical revenue from Universal Pictures fell 74.1% to $237m compared to $913m last year when there were tough comparison points in the form of The Super Mario Bros. Movie on $574.9m and Fast X on $146.1m. Adjusted EBITDA fell 51.4% to $124m due to lower revenue.
Revenue at Comcast’s cable and broadband operations fell 1.4% to $17.8bn. Starting on Friday NBC and Peacock will air the Paris Summer Olympics. The theme parks division fell 24.1% to $632m.
Comcast will report Q3 in several months’ time when they look back at Despicable Me 4, which opened on June 20 and so far has grossed $577m worldwide and powered the Despicable Me/Minions franchise to more than $5bn, becoming the first animated franchise to reach the benchmark.
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