Comcast exceeded Wall Street expectations for quarterly revenue, propelled by robust growth in its streaming and theme parks divisions, which offset a decline in broadband subscribers. The media giant reported a revenue increase of 2.3% to $31.25 billion in the fourth quarter, surpassing analysts’ estimates of $30.51 billion.
During a call with investors, Comcast CEO Brian Roberts addressed speculation about potential acquisitions, emphasizing the company’s commitment to its existing strategy. Despite ongoing industry speculation, Roberts reiterated that new initiatives must meet stringent criteria aligned with the company’s plan.
Shares of Comcast surged nearly 3% following the earnings report. While Comcast experienced a loss of 34,000 broadband customers in the quarter, it was fewer than the forecasted 61,000 losses, surpassing the 18,000 losses in the previous quarter. The company partially attributed these losses to competition from wireless carriers like Verizon and T-Mobile, which target lower-income customers with broadband services.
Revenue from Comcast’s Peacock streaming service soared by 56.5% year-over-year, exceeding $1 billion in quarterly revenue for the first time, reaching $1.03 billion. Paid subscribers for Peacock increased by 3 million in the fourth quarter, totaling 31 million.
Comcast’s investment in live programming paid off, with Peacock becoming the first streaming service to air an NFL playoff game exclusively. The broadcast of the Kansas City Chiefs and the Miami Dolphins game attracted an average of 23 million viewers, making it the most-streamed event in U.S. history. Revenue in Comcast’s content and experiences segment, including NBCUniversal, rose by 5.7% to $11.5 billion.
Blockbusters such as “Oppenheimer,” “Super Mario Bros. Movie,” and “Fast X” propelled Universal Pictures to the top spot at the worldwide box office for 2023, marking the first time since 2015 that Walt Disney was not the leader.
Comcast’s theme parks business also experienced a revenue increase of 12.2% to $2.37 billion, driven by strong attendance at parks in Osaka, Japan, and Hollywood, California. Additionally, Comcast announced a dividend increase of $0.08, raising it to $1.24 per share on an annualized basis for 2024.
Despite challenges in the broadband segment, Comcast’s strong performance in streaming, content, and theme parks underscores its resilience and strategic focus on diversified revenue streams.
