Comcast NBCUniversal beat investor expectations for third-quarter results, with revenues declining less and earnings increasing more than had been expected. The company had been expected to struggle in the most recent quarter when compared to results from Q3 2021 when NBC had broadcast rights to the Tokyo Olympics.
The media giant reported strong earnings from its broadband, mobile, and cable businesses. Revenues from Universal Studios increased more than 30% compared with the year-earlier period, largely on the strength of JURASSIC WORLD: DOMINION and MINIONS: THE RISE OF GRU. The Peacock streaming service also reached the milestone of 15 million subscribers, 70% higher than last year at this time, though still only a small fraction of subscriber counts for Disney+, Netflix, Amazon Prime, Apple TV+, and HBO Max.
CEO Brian Roberts predicted, “a very challenging environment” over the next 12 months, due to anxiety over a looming recession and a continued trend by consumers to “cut the cord” on cable subscriptions, a market where Comcast is the #1 provider.
Even though the company’s stock rose by 7% after last week’s earnings announcement, the current share price remains 35% lower than it was this time last year. This dip reflects investor concern over the investments required to compete in the streaming market, causing years of substantial losses before hoped-for profitability.