Comcast earnings highlight NBCUniversal strength ahead of planned split - CNBC

What the report says

CNBC reported that Comcast’s second-quarter earnings underscored a widening contrast between NBCUniversal’s media operations and the company’s traditional cable and broadband business, shortly after Comcast announced plans to separate those operations into two publicly traded companies. The company’s content and experiences segment, which includes NBCUniversal, posted revenue of $10.73 billion, up nearly 23% from a year earlier, helped by television, film and live sports programming.

Peacock, NBCUniversal’s streaming service, turned profitable for the first time since launching in 2020, according to Comcast. CNBC reported that the platform added 2 million subscribers during the quarter, reaching 48 million as of June 30, with events such as the FIFA World Cup, the NBA postseason and programming including “Love Island USA” contributing to strong June viewership. Film studio revenue rose 25%, while theme parks revenue increased nearly 3%, though Comcast cited weaker Orlando attendance tied to consumer sentiment and travel costs.

The connectivity and platforms division, which includes Xfinity broadband, mobile and cable TV, showed more pressure. Revenue fell 3% to $19.8 billion, adjusted EBITDA declined nearly 6% to $7.96 billion, and Comcast lost 167,000 residential broadband customers and 280,000 cable TV subscribers. Mobile was a brighter area, reaching 10.2 million lines after another record quarter of additions.

CNBC reported that co-CEOs Brian Roberts and Mike Cavanagh described the planned split as a way to create two more focused companies. Cavanagh, who is set to lead NBCUniversal after the separation, said work on the transaction began after the announcement and is targeted for completion in about a year. Comcast’s overall quarterly revenue fell 1.2% to $29.94 billion, while adjusted earnings of $1.04 per share beat LSEG estimates.