"Comcast reported adjusted earnings per share of $0.84, surpassing the analyst consensus estimate of $0.75."
Comcast Corporation released its fourth-quarter earnings, presenting a combination of financial results that exceeded analyst expectations on earnings per share but showed revenue slightly below forecasts. The report highlights contrasting trends across the company's divisions, including a decline in broadband subscribers, growth in mobile and streaming services, and increased losses at Peacock.
Financial Highlights
For the fourth quarter, Comcast reported adjusted earnings per share of $0.84, surpassing the analyst consensus estimate of $0.75. Total revenue for the quarter was $32.31 billion, a 1.2% increase from $31.9 billion in the same period last year, but slightly below the expected $32.35 billion.
Net income attributable to Comcast decreased by approximately 55% to $2.17 billion ($0.60 per share), down from $4.78 billion ($1.24 per share) in the prior year. Adjusted net income, after accounting for one-time items, was $3.06 billion ($0.84 per share). Adjusted EBITDA fell by 10% to $7.9 billion.
Connectivity and Platforms Division
Revenue for the Connectivity and Platforms unit, which includes Xfinity broadband, pay TV, and mobile services, decreased by 1% to $20.24 billion.
- Broadband: The company reported a loss of 181,000 domestic broadband customers, a figure attributed to competitive pressures. This decline was partially offset by an increase in international subscribers. Domestic broadband unit revenue fell by 1% to approximately $6.32 billion, resulting from customer losses being partially mitigated by higher average rates.
- Pay TV: The division lost 245,000 video customers, bringing the total to 11.27 million.
- Mobile: Comcast's mobile service added 364,000 customers in the quarter, bringing the total to over 9.3 million subscribers.
Media Unit (NBCUniversal)
Revenue for the Media unit increased by 5.5% to $7.62 billion. Domestic advertising revenue for the media business rose by 1.5%, attributed to the inclusion of NBA programming on NBC.
Peacock Streaming Service
Peacock reported a widened fourth-quarter loss of $552 million, an increase from a loss of $372 million in the same period a year ago. The higher losses were partly attributed to the launch of NBA and an exclusive NFL game on the platform.
Despite the increased losses, Peacock’s total revenue grew to $1.6 billion, up from $1.3 billion in the prior-year quarter. The service added 3 million paid subscribers in the quarter, reaching a total of 44 million by year-end.
Content and Experiences Division
Revenue in the Content and Experiences division rose 5.4% to $12.7 billion.
- Universal Film Studio: Revenue decreased by 7.4% to $3.03 billion, attributed to lower licensing and theatrical revenue compared to the previous year.
- Theme Parks: Revenue increased by 22% to approximately $2.9 billion, driven by the upcoming May 2025 opening of Epic Universe.
Corporate Developments
Comcast recently completed the separation of most of its cable networks into a new entity, Versant Media Group, with Mark Lazarus as CEO. The company is also focusing on enhancing its broadband, wireless, and entertainment distribution platforms, including adjustments to packaging and pricing, following Steve Croney’s appointment as CEO of the Connectivity and Platforms division.
Comcast CFO Jason Armstrong stated that Peacock has “reached meaningful scale” and projected that losses would “meaningfully improve again” by 2026. Comcast chairman and CEO Brian Roberts commented on industry consolidation, noting that the company had explored an opportunity with Warner Bros. Discovery but withdrew interest when it became clear the deal would require an all-cash transaction, which the company deemed too straining for its balance sheet at current valuations. He added that Comcast is observing further consolidation and remains open to exploring opportunities.