Comcast’s Q4 Revenue Soars on Blockbuster Movie Releases
Despite a decline in broadband customers, Comcast’s fourth-quarter revenue exceeded estimates, thanks to the massive success of its movie releases, including the highly anticipated “Wicked” and “The Wild Robot”. The media giant’s stock took a slight hit, falling over 1% before the market opened on Thursday.
A Boost from the Big Screen
The movie adaptations raked in hundreds of millions of dollars at the global box office, with “Wicked” earning a staggering $700 million and “The Wild Robot” grossing over $300 million. This significant boost propelled Comcast’s studio revenue up by nearly 7% in the quarter, contributing to a 2.1% increase in total revenue to $31.92 billion, surpassing estimates of $31.64 billion.
Share Buyback Program Announced
In addition to its impressive revenue, Comcast also unveiled a substantial $15 billion share buyback program, demonstrating its confidence in its financial performance.
Challenges in the Broadband Market
However, Comcast’s broadband unit faced significant challenges, losing 139,000 customers in the quarter, higher than expected. The company attributed this decline to increased competition from telecom firms like AT&T and Verizon, which are aggressively marketing bundled 5G wireless plans with high-speed fiber. Hurricanes Milton and Helene, which disrupted businesses in Florida, also contributed to the loss.
Peacock’s Revenue Soars, but Subscribers Stay Flat
Comcast’s streaming service, Peacock, saw a 27.8% revenue increase, thanks to price hikes implemented last year ahead of the Olympics. However, the subscriber count remained flat at 36 million, as the company focused on retaining users after a record-breaking third quarter.
Cable TV Networks Feel the Pinch
Comcast’s cable TV networks lost 311,000 subscribers due to cord-cutting, as consumers increasingly shift to streaming services. While this loss was lower than expected, it still highlights the ongoing challenges facing traditional cable TV providers.
Theme Park Unit Sees Flat Revenue
The theme park unit reported flat revenue at $2.37 billion, but its core earnings fell 3.9% due to pre-opening costs for Universal Epic Universe, which is set to open in May.
Overall, Comcast’s Q4 results demonstrate the company’s resilience in the face of declining broadband customers and increasing competition. Its successful movie releases and strategic initiatives, such as the share buyback program, position the company for future growth.
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