- Comcast beat Wall Street’s third-quarter earnings expectations on strength in its media unit, with adjusted earnings of $1.07 a share. Shares rose roughly 5% after the report.
- Peacock posted $261 million of adjusted EBITDA on $1.8 billion of revenue, only its second quarterly profit since launching in 2020. Paid subscribers held at 48 million, flat from last quarter and up 17% from a year earlier despite an August price increase.
- Connectivity remained under pressure, with segment revenue down 2.7% and net losses of 144,000 domestic broadband customers and 274,000 cable customers. Mobile added 368,000 customers, which Comcast sees as a capital-light growth opportunity.
- Theme park revenue fell 4.4% to $2.6 billion and the unit’s adjusted EBITDA sank 17%, as promotions dented admissions. Co-CEO Mike Cavanagh said the spinoff of NBCUniversal and Sky remains on track for completion by mid-2027.
What Happened?
Comcast reported third-quarter results on Thursday that topped analysts’ earnings expectations, CNBC reported. Media revenue, which includes Peacock, rose 13% to $5.4 billion, helped by record World Cup viewership early in the quarter. Total revenue fell 6% from a year earlier but was essentially flat after adjusting for the Versant spinoff, and net income rose to $3.45 billion, or 97 cents a share. The studios unit lifted adjusted EBITDA 18.6% to $402 million, boosted by “The Odyssey,” Universal’s highest-grossing film ever.
Why It Matters?
The results sharpen the case for Comcast’s breakup, because the media assets are improving while the cable business keeps shrinking. A profitable Peacock with strong retention after a price increase suggests streaming can stand on its own as part of the media company. The broadband losses show that the shift to mobile and competitive pricing has not yet stopped the bleeding from wireless competition. The theme park weakness is notable given Epic Universe opened last year, and Cavanagh cited rivals’ marketing and technology issues alongside macro factors.
What’s Next?
Watch broadband net losses for signs that mobile bundling is stabilizing the core cable franchise. Cavanagh expects theme park performance to strengthen through 2027, with a return to growth in the second half of the year. Progress on the NBCUniversal and Sky separation will be the main event for the stock into mid-2027. Peacock’s ability to stay profitable without a World Cup tailwind will also be tested in coming quarters.
Affected Tickers and Coins: CMCSA
Source: CNBC
