Nearly exactly six years after NBCUniversal debuted Peacock, the streaming service reported its first profitable quarter ever.
Comcast reported its second-quarter earnings early Thursday, with EBITDA of $189 million and subscribers rising to 48 million, driven by the NBA playoffs, the FIFA World Cup, and Love Island.
Overall, Comcast’s content and experiences businesses reported revenue of $10.7 billion, up 22.9 percent from last year, and adjusted EBITDA of $1.3 billion, up 7.1 percent.
Media revenue was $5.7 billion, up 25 percent, with adjusted EBITDA of $708 million. The World Cup soccer tournament, to which Telemundo had the Spanish-language rights, generated a staggering $440 million in revenue in the quarter, but the company was going higher regardless.
He drives it Super Mario Galaxy movie and maniastudio revenue rose 25 percent to $3 billion, with adjusted EBITDA of $202 million. Comcast co-CEO Mike Kavanagh also criticized Christopher Nolan’s The Odyssey, even though it did not contribute to the second quarter, telling Wall Street analysts that the film “has become one of the defining theatrical events of the year, strengthening the strength of our creative partnerships and ambitious storytelling, with Odyssey It became Nolan’s biggest worldwide opening ever.
As for Peacock, executives warned that “profitability will vary quarter-to-quarter, based solely on the timing of sports schedules and other content delivered quarter-to-quarter,” suggesting that the service could return to the black in future quarters, and recommended that analysts compare its performance on a year-over-year basis, rather than quarter-to-quarter.
However, Comcast warned that its theme park business was weak, even as revenue rose 2.7 percent to $2.4 billion. Adjusted EBITDA fell 5.1 percent to $609 million.
“While we see some near-term weakness in theme parks, we remain confident in the long-term opportunity, supported by our world-class brands, attractive locations and proven ability to create attractions and experiences that drive real consumer demand,” Brian Roberts and Mike Kavanagh said in a statement.
“We believe there are some temporary factors at work, including higher fuel prices and weak consumer sentiment. But we are monitoring these trends closely,” Kavanagh added on the company’s earnings call.
Comcast is in the process of splitting itself in two, separating its cable and communications businesses, which will be led by CEO Michael Angelakis, and its entertainment and content businesses, which will be led by Kavanagh.
On the company’s earnings call, Brian Roberts told analysts: “We spoke with our key constituencies, employees at all levels, and most of our key partners, and the feedback was very positive. I feel more positive and energized today than I did the day we announced this.”
The deal is expected to be completed within a year, Kavanagh said, adding, “Our goal is to prepare both companies with strong portfolios, financial strength and flexibility to pursue their growth strategies.”
He added: “This is a very valuable set of assets in NBC, and we believe that separating the business and setting it up on its own will give it the focus, the opportunity and the platform to invest beyond the growth opportunities that it provides in its own businesses and the spaces around these businesses that provide growth and where the company has the right to play.” “I believe NBCUniversal and Sky have the heft, relationships and operational capabilities to continue to be a major player as an independent.”
He went on to say that they “will look for opportunities to partner, aggregate, and showcase other people’s intellectual property in our parks and create intellectual property in our studios that goes to other platforms. I think that’s a good strategy for accumulating the assets that we have, and I think it provides you with a path to growth in this business over time.”
Comcast overall is going through a transition, led by its communications business, which has weakened in a highly competitive environment. Comcast as a whole reported revenue of $29.9 billion, down 1.2%, and adjusted EBITDA of $8.9 billion, down 13%. Executives said Comcast’s communications business is on its “strategic track,” with results expected by next quarter.
