Comcast reported lower second-quarter earnings despite paring losses at its Peacock streaming unit.
Philadelphia-based Comcast continued to lose pay TV subscribers, with a net loss of 419,000 video customers. Its Xfinity cable operations lost 120,000 domestic broadband subscribers.
Peacock ended the quarter with 33 million paid subscribers, down from 34 million at the end of Q1. But losses at Peacock were $348 million, down from $651 million a year ago and $639 million in the first quarter. Thanks to rate increases, Peacock revenue hit $1 billion in the quarter, up from $820 million a year ago.
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Compared to a year ago, Peacock subscribers are up 38%.
Overall, Comcast’s net income dropped 7.5% to $3.9 billion, or $1 a share, from $4.2 billion, or $1.02 a share a year ago.
Earnings per share were up 7% when adjusted. Revenue fell 2.7% to $29.7 billion.
The results were mixed compared to Wall Street expectations, with earnings above estimates and revenue lower.
Earnings before interest, taxes, depreciation and amortization at Comcast’s NBCUniversal unit — which the company calls Content & Experiences — fell 10.9% to $1.9 billion on declines at the company’s studio and theme park divisions.
NBCU’s media business registered a 9% increase in earnings before interest, taxes, depreciation and amortization (EBITDA) to $1.4 billion. Media revenue rose 2.1% to $6.2 billion.
Domestic advertising revenue fell 1.7% to almost $2 billion. The company said ad revenue was lower at its linear networks, partially offset by an increase in revenue at Peacock.
Domestic distribution revenue were up 5.7% to $2.8 billion.
Comcast’s cable business — known as Connectivity & Platforms — had adjusted EBITDA of $8.5 billion, up 1.6%.
Revenue dipped 0.7% to $20.2 billion. Residential revenue was down 1.5% and business services rose 5.7%
Despite losing subscribers, domestic broadband revenue grew 3% to $6.6 billion thanks to rate increases that averaged 3.6%.
Video revenues fell 7.9% to $6.7 billion and programming costs fell 7.3% to $4.2 billion.
Domestic wireless customer lines were up 20% to 7.2 million from a year ago, including net adds of 322,000 in Q2.
Wireless revenue jumped 17.3% to $1 billion.
Advertising revenue was flat at $993 million.
“We grew adjusted [earnings per share[ by high single digits and continued to invest aggressively in our businesses while returning $3.4 billion to shareholders,” chairman and CEO Brian Roberts said.
“More broadly, I am excited about the growth opportunities ahead, as our teams innovate and collaborate to connect our customers, viewers and guests to the moments that matter,” Roberts said. “The Paris Summer Olympics is a perfect example of this, where starting this Friday our company will be leveraging our most advanced technology and expertise in storytelling to provide millions of households in the U.S. with the finest, most-expansive television and streaming coverage in media history for an Olympics or perhaps any televised event … and even more important, an experience they hopefully will never forget.”
