NBCUniversal launches new Peacock streaming service.
Todd Williamson | Peacock | NBCUniversal | Getty Images
Comcast Third-quarter earnings are released before the market closes on Thursday. Wall Street will once again focus on the subscriber numbers and growth of broadband and streaming platform Peacock.
Investors have begun to focus on the broadband businesses of Comcast and its cable peers in recent quarters as customer growth slows. Comcast executives blame the recession on slowing home sales. Competition has also increased from wireless providers, e.g. Verizon and T-Mobile.
Comcast’s broadband revenue has grown in recent quarters and helped drive profits despite slowing net subscriber growth.
Comcast’s expected performance is as follows, according to estimates from analysts surveyed by London Stock Exchange Group (LSEG):
- Earnings per share: Estimated $1.06
- income: Estimated US$31.66 billion
Wall Street will also be watching Peacock’s progress in user growth and how much the platform will cost the company this quarter.
As of the end of the second quarter, Peacock had 34 million customers. Things improved last quarter, although Peacock’s losses continued to weigh on the company.
Analysts expect earnings at Comcast-owned NBCUniversal, which is part of its media business, to be driven by the Summer Olympics in Paris, which will take place mainly in the early third quarter.
A recent analyst note from Deutsche Bank said, “Paris appears to represent a renaissance when it comes to the Olympics, with strong ratings, unprecedented use of peacocks, strong ad sales and positive buzz/ energy.
In the report, Deutsche Bank estimated that the Olympics helped boost media revenue by nearly 40% and said it expected Comcast to add 2.5 million Peacock units this season.
While broadband and streaming results tend to overshadow other business units, theme park results will also be of interest.
Revenue at Universal’s theme parks has begun to cool recently as attendance surged after last year’s coronavirus lockdowns. As visitor numbers normalized, theme park revenue fell nearly 11% last quarter.
Still, Comcast executives said they remain “bullish” on the future of the business.
The Deutsche Bank report said U.S. theme parks will likely continue to face harsh comparisons, while international theme parks are expected to perform better. The report said the impact of Hurricane Helene in Florida late in the third quarter could reduce park hours and have a minor impact on results.
Revealed: Comcast owns NBCUniversal, the parent company of CNBC. NBCUniversal owns NBC Sports and NBC Olympics. NBC Olympics is the U.S. rights holder for all summer and winter Olympics through 2032.
This story is developing. Please check back for updates.
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