Comcast Q2 Revenue Dips On Studio And Theme Park Wobbles; Peacock Sheds 1M Subscribers But Trims Losses And Hits $1B In Revenue

Comcast posted second-quarter revenue below Wall Street analysts’ expectations and also saw Peacock subscriber levels decline after a burst in the prior quarter.

Revenue of $29.7 billion dipped 3% from the same period in 2023, while earnings per share beat estimates, rising 7% to $1.21 on an adjusted basis.

The studio division posted a 27% dip in revenue due to difficult comparisons. The year-ago quarter saw the release of The Super Mario Bros. Movie and Fast X, while current hits like Despicable Me 4 and Twisters were released outside of the second quarter.

Theme parks also marked a decline, with revenue down 11% as attendance gave back previous gains.

Peacock trimmed losses but also saw subscriber levels decline to 33 million from 34 million in the year-ago quarter. Revenue climbed 28% to $1 billion, while adjusted EBITDA improved to a loss of $348 million, nearly halving the year-ago loss of $651 million. It was the best year-over-year improvement on the bottom line since Peacock launched in 2020, the company said.

The service, while it has generally grown steadily, remains one of the least-penetrated of the top-tier streaming outlets. NBCU has held talks with other companies about potential joint ventures. It formed one with Paramount in 2022, launching SkyShowtime in 20 European markets. Bundling is also afoot. Last week, Verizon announced a promotion giving customers a year of free Netflix if they sign up for Peacock. Comcast itself last May announced a bundle for its internet customers, Xfinity StreamSaver, to bring together Peacock, Netflix and Apple TV+.

The company has been faring better than most in the media sector, in part because of its still-healthy broadband business and strong balance sheet. NBCUniversal has been on a solid run of late, outmaneuvering Warner Bros. Discovery to reclaim NBA rights after two decades on the sidelines and launching Twisters to a better-than-expected opening last weekend. The coming weeks will also see a signature event for NBCU, the Paris Olympics, in the first full-on Summer Games since 2016. Advertising demand has already been robust and qualifying events, the prologue to the Games themselves, have posted stellar ratings. The Opening Ceremony is slated for Saturday. A $2-a-month price hike for Peacock took effect this month in anticipation of the Games, which will have comprehensive coverage on the streaming outlet.

In part due to the Paris Games, the upfront ad picture is looking relatively bright for NBCU. The company was the first in the video sector to announce it has closed its upfront sales process, reporting last week that it notched “modest growth” in cash commitments thanks to digital, sports and Peacock.