Comcast’s Q3 Profits Fall Amid Olympic Prep and Cord-Cutting Trends

Comcast’s third-quarter financial report reveals significant challenges and shifts in strategy as the company combats cord-cutting trends and prepares for the upcoming 2024 Paris Olympics.

Financial Performance Overview

During the third quarter, Comcast’s net income fell 8% to $3.33 billion, translating to 90 cents per share. This decline contrasts with last year’s earnings of $3.63 billion, or 94 cents per share. Revenue from the company’s media operations, which include NBCUniversal, dropped nearly 20% to $6.6 billion. However, when excluding the 2024 Paris Olympics impact, revenue saw a modest increase of 4% year-over-year.

Subscriber Losses

The company faced substantial subscriber losses during this period. It lost:

• 104,000 domestic broadband customers, totaling approximately 31.4 million subscribers.
• 257,000 pay TV subscribers.

This marks the fourth consecutive quarter of subscriber losses for Comcast in its broadband segment, underscoring ongoing challenges in this area.

Leadership Changes

Amid these challenges, Comcast announced key leadership transitions. Dave Watson will be promoted to vice chair of the parent company, while Steve Croney will take over as CEO of connectivity and platforms starting January 1. Croney, who previously served as chief financial officer, is regarded as a pivotal figure in advancing Comcast’s operational transformation.

In a statement, Comcast Chairman and CEO Brian Roberts, alongside President Mike Cavanagh, expressed confidence in Watson’s contributions to the company over three decades and endorsed Croney’s leadership approach moving forward.

Mobile Services and Revenue Highlights

Despite the challenges in traditional areas, Comcast reported record gains in mobile services, adding 414,000 new mobile customers in the third quarter. This increase was cited as a vital aspect of the company’s growth strategy. Roberts highlighted the significance of mobile growth and NBCUniversal’s focus on expanding sports programming to rejuvenate interest.

Streaming Service Performance

Comcast’s streaming service, Peacock, maintained 41 million subscribers as of September 30, showing little change from earlier in the year. However, it reported a loss of $217 million in the third quarter, an improvement from the $436 million loss during the same period the previous year.

Entertainment and Theme Park Successes

On a positive note, Comcast saw growth in its film and theme park segments. Movie revenue increased by 6% to $3 billion, aided by the success of “Jurassic World Rebirth,” which premiered in July. Meanwhile, revenue from theme parks surged by nearly 19% to $2.72 billion, partially due to the opening of the new Epic Universe in May.

Comcast generated $4.9 billion in free cash flow for the quarter and $14.9 billion year-to-date, reflecting the resilience of its core business amid significant investment in repositioning the company.