Comcast swung to a profit in the third quarter even as the media giant navigated new challenges presented by two different Hollywood talent strikes and shifts in demand for the connectivity services that are at the heart of the company’s financials.
The Philadelphia owner of NBCUniversal posted net income of $4 billion, or 98 cents per share in the third quarter, compared with a loss of $4.6 billion, or $1.05 cents per share, a year earlier. Earnings came to $1.08 when adjusted for one-time items. The year-earlier loss was spurred by impairment and goodwill charges tied to the company’s acquisition of Sky in 2018.
Revenue rose 0.9% to $30.1 billion, compared with $29.8 billion in the year-earlier period.
Comcast said that Peacock, the NBCU streaming hub, added 4 million subscribers, while losses narrowed to $565 million, compared with $614 million in the year-earlier period. Peacock revenue rose 64% to $830 million during the period, compared with $506 million in the year-earlier quarter. Paid subscribers rose 4 million to 28 million, compared with the 24 million reported in the previous quarter. Much of that uptick came from the conversion of Comcast subscribers who had been getting Peacock for free to paid subscriptions.
Even so, the company faced challenges. Despite the release of “Oppenheimer,” a critical favorite, theatrical revenue fell 25% to $504 million due to comparisons with last year’s “Minions: The Rise of Gru” and “Jurassic World: Dominion.” And Comcast posted a surprising loss in domestic broadband customers, a business that has appeared to be on the upswing in previous quarters.
Comcast lost 18,000 broadband customers in the quarter, and lost 490,000 video customers overall during the period. Wireless lines increased 294,000 during the quarter.
Revenue at the company’s theme parks rose 17.2%, buoyed by new activity at its international operations. many of which had been under restrictions due to the coronavirus pandemic. Revenue rose 17.2% to $2.41 billion.
