Comcast exceeded Wall Street’s fourth-quarter estimates despite facing higher-than-expected losses in broadband subscribers and stagnant paid subscribers for its streaming service, Peacock. The focus has been on cable companies’ broadband businesses, which generate significant revenue and earnings but have experienced a slowdown in customer growth due to increased competition from wireless providers and other factors.
Streaming services have also been a key concern for investors. While profitability is now a crucial metric for success, recent subscriber additions by major players have caught investors’ attention, especially with the introduction of more affordable, ad-supported tiers.
During the fourth quarter, Comcast lost 139,000 residential broadband customers, surpassing the 100,000 losses forecasted by Comcast Cable CEO Dave Watson in December. The company also reported that Peacock had 36 million subscribers in the latest quarter, showing a year-over-year increase but remaining flat compared to the previous period.
Comcast’s net income attributable to Comcast rose by approximately 47% to $4.78 billion for the quarter ended Dec. 31, with earnings per share of $1.24. Adjusted earnings per share were reported at 96 cents, and adjusted EBITDA increased by about 10% to $8.81 billion. Overall revenue rose by 2% to $31.92 billion, driven by growth in segments such as mobile business, film studio, and Peacock.
Despite the slowdown in broadband customer growth, Comcast’s Connectivity and Platforms segment, which includes Xfinity Mobile, has been a significant revenue driver. The company plans to focus more on the mobile business in the coming quarters to boost growth and bundle it with broadband services.
Comcast lost 311,000 cable TV customers during the fourth quarter, while revenue for the Content and Experiences business, including NBCUniversal’s TV networks, film studio, and theme parks, increased by 5% to approximately $12.08 billion. The media segment’s revenue was up 3.5% to about $7.22 billion, driven by higher revenue from Peacock.
Comcast announced plans to spin off its cable network channels, including CNBC, MSNBC, E!, Syfy, USA, Oxygen, and the Golf Channel, along with digital assets like Fandango and Rotten Tomatoes. The separation is expected to take about a year, while NBC broadcast network, Bravo, and Peacock will remain with Comcast.
Peacock has been moving towards profitability, reporting $1.3 billion in fourth-quarter revenue and an adjusted EBITDA loss of $372 million. Universal Studios’ revenue increased by 6.7% to $3.27 billion, and Theme Parks revenue remained flat due to lower attendance at domestic locations.
