Comcast earnings Q2 2022

NBCUniversal launches its new Peacock streaming service.

Todd Williamson | peacock | NBCUniversal | Getty Pictures

comcast It reported second-quarter revenue and earnings that beat analyst forecasts, but it’s not the first time the cable provider has added broadband customers in a quarter.

According to FactSet, Comcast’s high-speed internet customers remained stable in the quarter, following the average analyst estimate of 84,000. Revenue was $30.02 billion, up 5.1% from the previous year, helped by NBCUniversal’s theme parks and studios businesses. Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, rose 10.1% to $9.8 billion.

Shares of Comcast fell nearly 3% in premarket trading.

Comcast sees increasing competition for its most lucrative product, high-speed broadband. For more than a decade, the cable industry has dominated the home broadband market, but wireless companies like T-Mobile are now competing by offering 5G home internet products. T mobile added 560,000 broadband users in Q2This is well above the first quarter total of 338,000.

Here are the key numbers:

Earnings per share: $1.01, adjusted vs. Estimate of 92 cents according to Refinitiv
Revenues: $30.02 billion Forecast of $29.68 billion according to Refinitiv
High speed internet customers: 0 versus 84,000 net additions based on the average estimate among analysts polled by FactSet.

Comcast CEO Brian Roberts described the decline as temporary as macroeconomic conditions such as high inflation limit the number of new connections for the company. Broadband revenue rose 6.8% year-on-year in the quarter to $6.1 billion, driven by higher rates and higher numbers of residential customers than in the previous year.

“We achieved our record-adjusted highest EBITDA margin even in the unique and evolving macroeconomic environment that temporarily puts pressure on the volume of our new client connections,” Roberts said.

Since March 2020, Comcast has added over 3 million broadband customers.

Video customers drop

Comcast lost 521,000 video customers in the quarter and has now lost 1 million video subscribers in the first six months of 2022. Consumers are abandoning traditional pay-TV subscriptions at accelerated rates in favor of streaming options like Netflix, Disney+, HBO Max, and HBO Max. NBCUniversal’s Peacock.

Brian Roberts, Chairman and CEO of Comcast

David A. Grogan | CNBC

While radio subscribers increased by 317,000, voice customers decreased by 286,000 this quarter. Wireless revenue grew nearly 30% year over year to $722 million. Business services rose 10% to $2.4 billion.

NBC Universal

NBCUniversal revenue increased 18.7% in the quarter to $9.4 billion. NBCUniversal adjusted EBITDA increased 19.5% to $1.9 billion.

Studios’ revenue increased more than 33% to $3 Billion, thanks to the peak “Jurassic World: Dominion”. $900 million in global box office sales.

The Universal theme park business continued to recover after last year’s pandemic slowdown. Revenue rose nearly 65% to $1.8 billion. Adjusted EBITDA increased 187% to $632M, with the parks division reaching its highest ever EBITDA in the second quarter.

Peacock paid subscribers flat at 13 million and 4 million earnings in the last quarter. Comcast said it expects “Jurassic World: Dominion,” “Minions: The Rise of Gru,” and Jordan Peele’s “Nope,” to help increase Peacock subscribers as they arrive on the streaming service, along with two movies that hit theaters in the third quarter. after the box office windows are over. Comcast said “Sunday Night Football” and the World Cup kicking off November 21 should also help add to Peacock’s subscriber totals this year.

Here’s how Comcast’s divisions did for the quarter compared to the previous year:

Cable Communications contributed $16.6 billion in revenue, up 3.7% from the previous year
Media brought in $5.3 billion in revenue, up 3.6%
Studios added $3 billion in revenue, up 33.3%
Theme parks brought in $1.8 billion, up 64.8%
Sky contributed $4.5 billion in revenue, down 13.8%