Comcast said third-quarter profit dropped as the media-and-cable conglomerate continued to grapple with cord cutting in its flagship content distribution business and faced comparisons with last year’s Paris Olympics, when the company generated $1.9 billion in extra revenue.
The Philadelphia company said it lost 104,000 domestic broadband customers during the period, bringing its total subscriber base to roughly 31.4 million — the fourth consecutive quarter of subscriber losses in this key business area. It also lost 257,000 pay TV subscribers. Revenue tied to its media operations which include NBCUniversal, came to $6.6 billion, a drop of almost 20%. Without taking the 2024 Paris Olympics into account, revenue rose 4% over the year-earlier period, Comcast said.
Net income attributable to Comcast fell 8% to $3.33 billion, or 90 cents per share, compared with $3.63 billion, or 94 cents per share, in the year-earlier quarter. The company’s results beat Wall Street’s estimate for the period.
Comcast unveiled a transition in the leadership of its cable systems division. Comcast veteran Dave Watson will be elevated to vice chair of the parent company while Steve Croney becomes CEO of connectivity and platforms as of Jan. 1. Croney had been chief financial officer of the division.
“Dave Watson has been an extraordinary partner and is one of the pioneers who helped build our company and our culture over three decades. He’s built an exceptional team and we’re grateful for all he’s done and continues to do for our company,” said Brian Roberts, Comcast chairman and CEO, and Mike Cavanagh, president of Comcast. “Steve Croney is exactly the right leader for the future. He is a trusted and accomplished executive who has been instrumental in advancing our operational transformation. Steve has a clear vision, and is already leading with focus and urgency, while ensuring we are well-positioned for the opportunities ahead.”
Comcast said it continued to emphasize sales of mobile service, and added 414,000 mobile customers in the third quarter — a record number for the company.
In a statement, Roberts pointed to the mobile gains as well as a growing focus on sports at NBCUniversal, which he said would create new interest in the company’s TV networks and Peacock streaming service. “We’re building momentum across NBC and Peacock as we head into one of the most exciting stretches of live sports in our history, including robust NBA coverage which just began last week,” he said in a statement, adding: “We generated $4.9 billion of free cash flow this quarter and $14.9 billion year-to-date despite significant investment we’re making in repositioning our company, a testament to both the durability and resilience of our underlying business.”
Peacock, which is still in its early days, boasted 41 million subscribers as of Sept. 30, close to flat with results from the rest of the year. Comcast said the streaming service lost $217 million in the third quarter, narrowing losses from $436 million in the year-earlier period.
The company found bright spots in its film and theme park operations. Movie revenue rose 6% to $3 billion, thanks in part to the release of “Jurassic World Rebirth” in July. Revenue from theme parks rose nearly 19% to $2.72 billion, due in part to the May opening of the new Epic Universe.
