Comcast reported a decline in third-quarter profits as the media and cable giant continued to face challenges from cord-cutting trends and the absence of last year’s financial boost from the Paris Olympics, which had generated an additional $1.9 billion in revenue.
During this quarter, Comcast lost 104,000 domestic broadband customers, decreasing its total to approximately 31.4 million subscribers. This marks the fourth consecutive quarter of subscriber losses in this significant segment. The company also experienced a drop of 257,000 pay TV subscribers. Revenue from its media operations, which includes NBCUniversal, amounted to $6.6 billion, reflecting a nearly 20% decrease. However, excluding the impact of the upcoming 2024 Paris Olympics, revenue experienced a 4% increase compared to the previous year.
Net income attributable to Comcast fell by 8% to $3.33 billion, or 90 cents per share, down from $3.63 billion, or 94 cents per share, during the same quarter last year. Despite these challenges, the company’s results exceeded Wall Street expectations.
In a significant leadership transition, Comcast announced changes within its cable systems division. Dave Watson, a longtime executive at Comcast, will step up as vice chair, while Steve Croney will take on the role of CEO of connectivity and platforms starting January 1. Croney, previously the division’s chief financial officer, is expected to lead with a clear vision as Comcast continues to navigate the evolving media landscape.
Comcast has recognized the importance of expanding its mobile services, adding a record 414,000 mobile customers in the third quarter. Company leadership, including Chairman and CEO Brian Roberts, highlighted these mobile gains and the increased emphasis on sports content at NBCUniversal as pivotal for generating renewed interest in both NBC’s TV networks and the Peacock streaming service. Roberts also noted that despite ongoing investments aimed at repositioning the company, Comcast generated $4.9 billion in free cash flow during the quarter and $14.9 billion year-to-date.
Peacock, while still early in its growth phase, reported 41 million subscribers as of September 30, remaining relatively stable compared to earlier in the year. The streaming service experienced a loss of $217 million in the third quarter, although this was less than the $436 million lost in the same period last year.
Additionally, there were positive developments in Comcast’s film and theme park sectors. Movie revenues climbed 6% to $3 billion, partly fueled by the release of “Jurassic World Rebirth” in July. Theme park revenues surged nearly 19% to $2.72 billion, bolstered by the May opening of the new Epic Universe attraction.
Comcast’s ability to navigate its current challenges while also showcasing growth in mobile services and theme park revenues suggests potential for future resilience and adaptability in a rapidly changing market.