Comcast Q2 2022 Earnings

NBCUniversal launches its new Peacock streaming service.

Todd Williamson | peacock | NBCUniversal | fake images

Comcast reported second-quarter revenue and profit that beat analysts’ estimates, but the cable provider added no broadband customers in a quarter for the first time.

Comcast’s high-speed Internet customers in the quarter were flat, below analysts’ average estimate of 84,000, according to FactSet. Revenue rose 5.1% to $30.02 billion from a year earlier, helped by NBCUniversal’s theme park and studio businesses. Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, increased 10.1% to $9.8 billion.

Comcast shares fell more than 6% in premarket trading.

Comcast is experiencing growing competition for high-speed broadband, its most lucrative product. For more than a decade, the cable industry has dominated the home broadband market, but wireless carriers like T-Mobile are now competing by offering 5G home internet products. T Mobile added 560,000 broadband users in the second quarterwell above its first-quarter total of 338,000.

These are the key numbers:

  • Earnings per share: $1.01, adjusted vs. estimate of 92 cents, according to Refinitiv
  • Income: $30.02 billion versus an estimate of $29.68 billion, according to Refinitiv
  • High Speed ​​Internet Clients: 0 vs. 84,000 net adds, according to the median estimate among analysts surveyed by FactSet.

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

“We achieved our highest Adjusted EBITDA margin on record even amid a unique and evolving macroeconomic environment that is temporarily putting pressure on the volume of our new customer connections,” Roberts said.

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

Video clients drop

Comcast lost 521,000 video customers in the quarter and lost 1 million video subscribers in the first six months of 2022. Consumers are ditching traditional pay TV subscriptions at accelerated rates in favor of streaming options like Netflix. , Disney+, HBO Max and NBCUniversal’s Peacock. .

Brian Roberts, Chairman and CEO of Comcast

David A Grogan | CNBC

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

NBCUniversal

NBCUniversal revenue increased 18.7% in the quarter to $9.4 billion. NBCUniversal’s Adjusted EBITDA was up 19.5% to $1.9 billion.

Studio revenue jumped more than 33% to $3 billion, buoyed by “Jurassic World: Dominion,” which topped $900 million in global box office sales.

Universal’s theme park business continued to recover from last year. COVID-19 pandemic decelerate. Revenue increased about 65% to $1.8 billion. Adjusted EBITDA increased 187% to $632 million, the highest EBITDA in parks division history for a second quarter.

Peacock’s paid subscribers were flat at 13 million after a profit of 4 million last quarter. Comcast said it hopes “Jurassic World: Dominion,” along with two movies opening in theaters in the third quarter, “Minions: The Rise of Gru” and Jordan Peele’s “Nope,” will help boost Peacock’s subscribers when they come. to the streaming service. after their box office windows expire. “Sunday Night Football” and the World Cup, which starts Nov. 21, should also help boost Peacock’s subscriber count later this year, Comcast said.

Here’s how Comcast’s divisions fared during the quarter compared to a year ago:

  • Cable Communications contributed $16.6 billion in revenue, up 3.7% year over year
  • Media generated $5.3 billion in revenue, up 3.6%
  • Studios contributed $3 billion in revenue, up 33.3%
  • Theme parks generated $1.8 billion in revenue, an increase of 64.8%
  • Sky contributed $4.5 billion in revenue, down 13.8%

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

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