Comcast’s second-quarter earnings released Thursday demonstrated divergent performance across its business segments as the company prepares to separate its media and connectivity operations into independent entities.
The content and experiences division, anchored by NBCUniversal, posted revenue of $10.73 billion, representing significant growth driven primarily by live sports programming. Peacock, the company’s streaming service, reached profitability during the quarter for the first time, buoyed by viewership related to the FIFA World Cup and NBA postseason content. The platform added 2 million subscribers, bringing its total to 48 million as of June 30, and recorded its largest viewership month in June. The TV media unit benefited from increased advertising revenue and higher streaming usage, while the film studio saw revenue rise 25%. Theme parks revenue increased nearly 3 percent, though international properties showed weakness while Orlando operations performed better.
The connectivity and platforms segment, which encompasses Xfinity-branded broadband, mobile, and cable TV services, presented a contrasting picture. Revenue for this unit declined 3 percent to $19.8 billion, while earnings before interest, taxes, depreciation, and amortization fell nearly 6 percent to $7.96 billion. The company reported losing 167,000 broadband residential customers and 280,000 cable TV subscribers during the quarter. Mobile services emerged as a strength, adding subscribers for a record quarter and reaching 10.2 million total lines.
Comcast’s overall revenue declined 1.2 percent to $29.94 billion but exceeded analyst estimates of $29.3 billion. The company reported adjusted earnings per share of $1.04, surpassing Wall Street expectations of 97 cents, along with net income of $3.53 billion. Co-CEOs Brian Roberts and Mike Cavanagh stated that the planned separation would provide both companies with financial resources and strategic flexibility to pursue their respective priorities, with the split expected to be completed within approximately one year.
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