World Stock Watch

Comcast’s Q4 Earnings: A Mixed Bag

Broadband Subscriber Losses Weigh on Comcast’s Q4 Results

Comcast’s fourth-quarter earnings report was a mixed bag, with the company beating Wall Street estimates despite reporting larger-than-expected broadband subscriber losses and stagnating paid subscribers for its streaming service, Peacock.

The Broadband Business: A Key Driver of Revenue

Comcast’s broadband business, part of its Connectivity and Platforms segment, remains a key driver of revenue for the company. Despite a slowdown in customer growth, average revenue per user has risen, making broadband a crucial component of Comcast’s balance sheet.

Peacock’s Stagnant Growth Raises Concerns

Peacock, Comcast’s streaming service, reported 36 million subscribers in the most recent quarter, up year over year but flat from the prior period. This stagnation in growth has raised concerns among investors, who were expecting total paid subscribers to reach 37.56 million.

Comcast’s Q4 Performance: A Breakdown

For the quarter ended December 31, Comcast reported:

• Net income attributable to Comcast rose 47% to $4.78 billion, or $1.24 per share
• Adjusted earnings per share of 96 cents
• Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) up 10% to $8.81 billion
• Revenue up 2% to $31.92 billion, driven by growth in segments including mobile, film studio, and streaming service Peacock

Mobile Business and Film Studio Shine

Comcast’s mobile business, Xfinity Mobile, surpassed 7.8 million mobile lines, contributing to overall residential connectivity revenue. The film studio also performed well, with revenue up 6.7% to $3.27 billion, driven by box office successes such as “Kung Fu Panda 4” and “Despicable Me 4”.

Content and Experiences Segment: A Mixed Performance

Revenue for the Content and Experiences business, which includes NBCUniversal’s TV networks and streaming, film studio, and theme parks, was up 5% to roughly $12.08 billion. However, the media segment reported $298 million in adjusted EBITDA, falling short of Wall Street expectations.

Comcast’s Future Plans

In November, Comcast announced plans to spin off its cable network channels, a portfolio that includes several popular networks. The separation, which will also include digital assets, is expected to take about a year. The NBC broadcast network, cable channel Bravo, and Peacock will remain with Comcast.