Comcast, the media giant, has reported strong fourth-quarter results, surpassing Wall Street forecasts. The company saw a net income of nearly $3.3 billion, with revenue exceeding $31 billion, representing a growth of 7.8% and 2.3% respectively. Despite losing video and broadband customers, Comcast managed to add wireless subscribers, contributing to its overall success.
One of the highlights of the quarter was the performance of Peacock, Comcast’s streaming service. Peacock added 3 million subscribers in the fourth quarter, reaching a total of 31 million subscribers, a significant increase of almost 50% compared to the previous year. Streaming revenue also experienced substantial growth, rising by 57% year-on-year to surpass $1 billion. Although Peacock incurred a loss of $825 million, it managed to narrow the loss from the previous year.
Peacock’s success can be attributed to its exclusive streaming rights for the AFC Wild Card game between the Kansas City Chiefs and the Miami Dolphins. This record-breaking game attracted a large number of viewers and showcased Peacock’s potential as a major player in the streaming industry.
Comcast’s Media division also performed well, despite a drop in advertising sales. The division saw a slight increase in revenue, with profit declining due to higher sports programming costs and increased programming costs at Peacock. Domestic advertising revenue fell by 6.9%, primarily due to Telemundo’s broadcast of the FIFA World Cup in the previous year. However, excluding this event, advertising revenue increased by 2.7%, thanks to increased ad sales at Peacock.
Universal Studios, a subsidiary of Comcast, achieved remarkable success in the film industry. It secured the top spot in worldwide box office rankings for the full year, with three of its films, including “Super Mario Bros. Movie,” “Oppenheimer,” and “Fast X,” ranking in the top five. In the fourth quarter, Universal Studios experienced an increase in revenue, primarily driven by higher theatrical releases such as “Five Nights at Freddy’s,” “Trolls Band Together,” “The Exorcist: Believer,” and “Migration.” Studio profit also surged by 83% to $308 million.
Comcast’s theme parks also set a new record for adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization). This achievement highlights the continued success and popularity of Comcast’s theme park offerings.
In light of its strong performance, Comcast announced an increase in its dividend by 8 cents per share for 2024. CEO Brian Roberts expressed his satisfaction with the company’s performance, stating, “For the third consecutive year, we generated the highest revenue, adjusted EBITDA, and adjusted EPS in our company’s history.” Roberts also praised the success of Peacock and the company’s overall achievements.
Looking ahead, Comcast is optimistic about its future prospects. The company aims to capitalize on the many opportunities that lie ahead, leveraging its unique and complementary capabilities. The Board’s confidence in Comcast’s future is evident in its decision to increase the dividend for the 16th consecutive year.
Comcast executives will provide further insights and analysis during a conference call with analysts at 8:30 ET. This call will offer a deeper understanding of the company’s financial performance and its plans for future growth.
