Comcast profit beats expectations even as TV subscribers vanish

Comcast Corp. shares gained as much as 8% Thursday after reporting profit that topped analysts’ estimates in the second quarter, even as internet and TV subscribers vanished. 

The Philadelphia-based owner of Xfinity broadband and cable services, the NBCUniversal media empire and Sky TV, reported earnings excluding some costs of $1.13 a share, a 12% increase from a year earlier and well above the 97 cents analysts predicted. Revenue rose 1.7% to $30.5 billion, exceeding analysts’ average prediction of $30.1 billion. The shares jumped the most in three months to $46.35, the highest since April 2022.

Results at the media and telecom conglomerate showed a disparity in trajectories among the various units as CEO Brian Roberts and President Mike Cavanagh revamp the media business after key executive departures, while cord-cutting and wireless competition has eroded Comcast’s traditional customer base. 

The company swung to a loss of 19,000 subscribers in its cornerstone broadband service in the quarter, despite investing heavily to gain market share and strengthen its brand. The erosion of cable TV customers continued, with a loss of 543,000 subscribers. 

Comcast, which offers wireless mobile through the Xfinity brand as part of a package for internet subscribers, added 316,000 mobile phone customers, fewer than the 345,000 analysts predicted. The weakness is possibly another sign of a subscriber slowdown across the wireless industry following lackluster numbers from AT&T Inc. and Verizon Communications Inc. earlier this week. 

On the bright side, Comcast’s streaming service, Peacock, added 2 million subscribers in the quarter for a total of 24 million, nearly doubling from the prior year. Revenue at the unit increased 85% to $820 million. The company expects Peacock losses to peak this year, but the company’s entertainment fortunes could be muddled by the effects of the strikes by Hollywood actors and writers. 

Elsewhere in the media empire, studio revenue declined nearly 1% to $3.1 billion despite the box office success of “The Super Mario Bros. Movie,” which grossed $1.3 billion in the second quarter, becoming the No. 2 animated picture of all time, according to Comcast. Universal is also distributing the critically acclaimed “Oppenheimer,” which opened last week.

Roberts is under pressure to do something big with Comcast’s media unit, after the sudden departures of CEO Jeff Shell, who was ousted in April amid sexual harassment allegations, and ad chief Linda Yaccarino, who jumped ship to run Twitter. Analysts have speculated that gaming assets could provide the next leg of growth. 

—Bloomberg News