Comcast reported its fourth-quarter results, showcasing a mixed performance that beat analyst expectations for earnings but fell short on revenue targets. The company announced an earnings per share of 84 cents, surpassing the expected 75 cents. However, total revenue came in at $32.31 billion, slightly below the projected $32.35 billion.
The quarter brought significant news for Comcast’s broadband sector, which continues to face fierce competition, particularly from wireless providers like Verizon and T-Mobile. The company lost 181,000 domestic broadband customers during the period, although this decline was somewhat mitigated by an increase in international subscribers. In sharp contrast to its broadband struggles, Comcast’s mobile division performed strongly, adding 364,000 customers, bringing the total to over 9.3 million subscribers as part of its strategic shift to prioritize mobile growth.
Overall, Comcast’s net income attributable to the company fell significantly, down 54.6% to $2.17 billion, translating to 60 cents per share. This compares unfavorably to the previous year’s net income of $4.78 billion, or $1.24 per share. When adjusted for one-time items such as the valuation of intangible assets and various charges, Comcast recorded an adjusted net income of $3.06 billion, equating to 84 cents per share. The company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw a decline, dropping 10% to $7.9 billion.
Despite these setbacks, total quarterly revenue increased slightly, up more than 1% year-over-year. Within the connectivity and platforms unit—which encompasses its Xfinity services across broadband, pay TV, and mobile—revenue decreased by 1% to $20.24 billion. The domestic broadband unit’s revenue fell by 1% to approximately $6.32 billion, primarily reflecting the customer loss, albeit somewhat offset by an increase in average rates.
In addition to the broadband situation, Comcast also experienced a drop in pay TV customers, losing 245,000 during the fourth quarter, now totaling 11.27 million subscribers. On a brighter note, the company’s media unit, which includes NBCUniversal, saw revenue rise by 5.5% to $7.62 billion. This growth is particularly noteworthy as it marks the last quarter that NBCUniversal’s earnings report contains its full portfolio of cable networks, following the spinoff of many pay TV networks into the publicly traded entity Versant.
Furthermore, domestic advertising revenue for the media division increased by 1.5%, largely driven by the return of the NBA on NBC. Comcast’s streaming service, Peacock, reported a strong uptick, adding 3 million paid subscribers to reach a total of 44 million. However, it also reported substantial losses of $552 million for the fourth quarter, significantly higher than the previous year’s $372 million loss, a result attributed in part to the costs associated with the new NBA rights deal.
Conversely, revenue for Comcast’s Universal film studio experienced a decline of 7.4% to $3.03 billion, reflecting a decrease in both licensing and theatrical earnings compared to the same period last year. However, Universal’s theme parks reported a 22% increase in revenue to approximately $2.9 billion, buoyed by the successful opening of Epic Universe last year.
Disclosure notes that Versant Media is now the parent company of CNBC, with Comcast holding that position through the end of 2025.
