Prime Highlights:
Comcast exceeded Wall Street’s Q4 earnings expectations, reporting adjusted earnings per share of 96 cents, above the consensus estimate of 86 cents.
Total revenue for the quarter increased by 2% year-over-year to $31.92 billion, driven by growth in broadband, mobile services, and Peacock streaming.
Despite losing 139,000 broadband customers, higher pricing and increased average revenue per user helped offset the decline.
Key Background:
Comcast exceeded Wall Street’s expectations for the fourth quarter, driven by solid growth in its broadband business, despite experiencing customer losses in that segment. The company reported overall revenue of $31.92 billion, marking a 2% increase from the previous year’s $31.25 billion, with notable contributions from mobile services, its film studio, and the Peacock streaming service.
For the quarter ending December 31, Comcast’s net income rose nearly 47%, reaching $4.78 billion, or $1.24 per share, compared to $3.26 billion, or 81 cents per share, in the same period last year. Adjusted earnings per share came in at 96 cents, surpassing analyst expectations of 86 cents.
The broadband division, while facing a decline in customers, remained a key revenue driver due to higher pricing and increased average revenue per user. Comcast reported a loss of 139,000 domestic broadband customers, while also losing 311,000 cable TV subscribers. However, these declines were offset by the success of its mobile business, which surpassed 7.8 million lines, and continued growth in other areas of the company’s operations.
Peacock, Comcast’s streaming service, maintained 36 million paid subscribers in the fourth quarter, unchanged from the previous period but slightly below analysts’ projections of 37.56 million. The platform’s revenue grew to $1.3 billion, reflecting a reduction in its adjusted EBITDA loss from $825 million in the previous year to $372 million.
Revenue from Comcast’s Content and Experiences segment, which includes NBCUniversal’s TV networks, film studio, and theme parks, rose 5% to $12.08 billion. Notably, Universal Studios saw a 6.7% increase in revenue, bolstered by the success of films like Kung Fu Panda 4 and Despicable Me 4. However, theme park revenue remained flat due to continued lower attendance at domestic locations. Despite challenges in the broadband and cable TV segments, Comcast’s diverse portfolio of services helped the company deliver strong earnings and revenue growth in the fourth quarter.