Peacock, NBCUniversal’s streaming service, continues to soar in popularity, hitting a subscriber count of 28 million. In the latest quarter alone, Peacock added a whopping 4 million subscribers to its platform. This surge in users has helped Peacock narrow its loss to $565 million, a significant improvement from the $614 million loss in the same period last year.
The entertainment conglomerate had initially projected “peak losses” of approximately $3 billion for Peacock this year. However, they have revised this estimate to a $2.8 billion loss outlook, indicating that they are moving in the right direction. Furthermore, Peacock’s revenues have surged by an impressive 64 percent to $840 million year-over-year, highlighting the service’s growing popularity among consumers.
Comcast Corp. president, Mike Cavanagh, has reaffirmed Peacock’s pivotal role in the company’s transition to streaming. Cavanagh predicts improved financial performance for Peacock through 2024, suggesting that the platform’s success is set to continue.
Overall, Comcast’s content and experiences division experienced a slight increase in revenues of nearly 1 percent, reaching $10.5 billion. Adjusted earnings before interest, taxes, depreciation, and amortization for this division were recorded at $1.97 billion, indicating a stable financial position.
However, not all divisions witnessed positive growth. NBCUniversal’s studio division saw a decline of 23.6 percent in revenue to $2.5 billion. This decrease can be attributed primarily to lower content licensing and theatrical revenue. Nevertheless, NBCU’s media unit reported $6 billion in revenue, up 0.4 percent from the previous year, with a 6.5 percent rise in adjusted EBITDA profit.
On a brighter note, Universal’s theme park revenues experienced a notable increase of 17 percent, reaching $2.41 billion. This surge in revenue underscores the enduring popularity of Universal’s attractions.
Despite these positive developments, Comcast suffered a setback in its legacy cable TV business, losing 490,000 subscribers in the latest quarter. This decline, coupled with drops in broadband customers and domestic ad revenue, caused Comcast’s stock to fall by 6.6 percent to $39.92.
However, Comcast did manage to save around $500 million in working capital during the Hollywood production shutdown, though they do expect this benefit to reverse as production ramps up once again.
Looking ahead, Comcast CEO Brian Roberts emphasized the company’s focus on streaming live sports on Peacock, highlighting their upcoming coverage of the 2024 Paris Olympics. Additionally, Roberts addressed the recent carriage agreement between Walt Disney and Charter Communications, noting that each situation is unique. Comcast aims to provide their customers with a great network and access to content, ensuring a satisfying user experience for all.