Key Financial Data
- Overall revenue: $31.2 billion (-2.7% year-over)
- Net income: $3.33 billion (-8.2%)
- EPS: $.90 (-3.4%)
- Connectivity revenue: $20.18 billion (-0.6%)
- Content/experiences revenue: $11.74 billion (-6.8%)
- Video customers: 11.515 million (-10.3%)
- Broadband customers: 31.44 million (-1.7%)
- Read more Q3 media earnings coverage
Comcast reported a mixed set of financial earnings for the third quarter (Q3) of the year on Thursday, with gains in its Xfinity Mobile and theme parks businesses mostly offset by losses in its Xfinity TV, Xfinity Internet and media units.
The Philadelphia-based media and telecommunications company said it generated $31.2 billion in revenue for the three months ending September 30, down 2.7 percent from the same period last year, when the company benefited from the Paris Olympic Games. Net income fell 8.2 percent to $3.3 billion, while adjusted earnings held steady at $1.12 per share, matching Wall Street expectations.
“We’re making steady progress as we reposition the company for long-term, sustained growth,” said Brian Roberts, the Chairman and CEO of Comcast, in a prepared statement on Thursday. “In connectivity, we’re strengthening our broadband foundation and accelerating wireless as a meaningful growth engine.”
Comcast’s Connectivity and Platforms unit, which includes Xfinity TV and Xfinity Internet, remained largely flat with $20.2 billion in revenue, down less than one percent from a year earlier. The company added a record 414,000 Xfinity Mobile wireless lines, bringing its total to 8.9 million. But broadband losses continued: 104,000 residential customers dropped Xfinity Internet during Q3, while Xfinity TV saw 257,000 customer losses during the quarter.
Xfinity TV now has 11.52 million subscribers, while Xfinity Internet counts 31.44 million connections, Comcast said in its earnings statement.
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The company’s film and television studio delivered higher licensing and theatrical revenue thanks to the success of “Jurassic World Rebirth,” which has earned nearly $900 million globally. Meanwhile, Universal’s theme parks division remained a bright spot, with revenue up 19 percent and EBITDA up 13 percent to $958 million, fueled by strong attendance following the May opening of Epic Universe in Orlando.
Overall adjusted EBITDA slipped less than one percent to $9.7 billion, while free cash flow surged 45 percent to $4.9 billion, reflecting improved operations and cost discipline. Comcast returned $2.8 billion to shareholders during the quarter through dividends and stock buybacks, reducing its outstanding shares by five percent from a year ago.
Roberts said Comcast’s continued investment in its broadband and wireless strategy, along with the “early success” of its newest theme park, shows the company’s underlying resilience despite competitive and economic pressures.
The television side of Comcast’s business was primarily afflicted by higher Olympics-related advertising revenue during last year’s Q3, which weighed on comparative metrics from this year. Domestic advertising from Comcast’s NBC and its cable networks clocked in at $1.96 billion, down 41.3 percent compared to last year. With Olympics-related advertising factored out, Comcast’s media business saw a 2.6 percent dip in advertising.
Domestic distribution fees were also off, with Comcast earning $2.84 billion from income generated through cable, satellite and streaming cable-like subscription services. Comcast also counts wholesale distribution of Peacock in the amount; Comcast’s own Xfinity TV and Xfinity Internet offer some subscribers access to Peacock for free, as do other services like Charter’s Spectrum TV and DIRECTV.
With the Olympics excluded, Comcast said its distribution fee income was up 1.5 percent compared to last year, as the company executed agreements with cable, satellite and streaming partners that saw more per-subscriber income from its channels. The figure was down 13.1 percent when taking into account higher interest in NBC and Peacock during last year’s Summer Olympic Games.
Comcast did not provide an update on the number of customers who pay for Peacock, but said the streaming platform earned $1.4 billion in revenue during Q3. Peacock’s financial loss clocked in at $217 million, better than the $436 million the platform lost during Q3 2024. Comcast said cost disciplined and an uptick in subscriber interest factored in to Peacock’s better Q3 this time around.
