On Thursday, Comcast released its second quarter earnings report, with overall revenues exceeding estimates and showing particular strength in its NBCUniversal media business. The earnings report comes at an intriguing time for Comcast Corporation, shortly after announcing a plan to separate its media and technology businesses. Q2 results show how the company’s two businesses are heading in opposite directions, with NBCUniversal’s media business growing at a healthy clip while Comcast’s broadband cable business is declining.
A notable surprise in Comcast’s quarterly report was how well NBCUniversal’s streaming platform Peacock has been performing. Peacock added two million new subscribers in the quarter, posting a profit of $187 million, which is the first profitable quarter in the network’s history. Subscriber and revenue growth was fueled by major sports events including the NBA Playoffs and Spanish broadcasts of the FIFA World Cup on Telemundo. Peacock’s reality TV series LOVE ISLAND USA was also a big hit, contributing to June becoming the largest viewership month in the history of the platform.
Universal’s film studio also had a strong quarter, with the horror sensation OBSESSION driving a 25% year-over-year increase in studio revenue. Universal’s theme park in Orlando experienced lower attendance than last year, but NBCUniversal CEO Mike Cavanaugh cited “weakness in consumer sentiment” to the decline in attendance and went on to say the revenue would rebound when “economic conditions and consumer demand stabilize.” A potential bundle partnership between Peacock and Netflix was discussed during the earnings call, especially of interest because Netflix is seen as a potential suitor for NBCUniversal’s media business once the corporate split has been completed in 2027.
