NBC, Olympics, ‘Secret Life of Pets’ Drive Comcast’s Strong Q3 Earnings
Comcast delivered strong third quarter earnings on Wednesday, powered by the Rio Olympics, advertising gains at NBC and Universal’s animated hit “The Secret Life of Pets.” The company’s theme parks also delivered another quarter of double-digit gains.
Comcast’s revenue of $21.31 billion, up 14.2% from the year-ago quarter, topped analysts’ expectations while earnings per share of 92 cents were in line with the high end of estimates for the quarter and up 15%. Net income was up 12% to $2.23 billion.
The numbers also demonstrated Comcast’s renewed muscle in the battle against cord-cutting. The cable giant added 32,000 new video subscribers for the quarter, the best result for a third quarter in 10 years, and 330,000 new broadband subs, the best result for a third quarter in seven years.
Comcast chairman-CEO Brian Roberts hailed the company’s double-digit revenue and operating cash flow growth.
“Cable delivered solid operating cash flow growth coupled with great customer metrics, and has now added 170,000 video subscribers over the past twelve months,” Roberts said. “The Rio Olympics were the most profitable and successful games in our history, and demonstrated our ability to deliver an unparalleled entertainment experience through NBCUniversal together with Comcast Cable and the X1 platform. NBCUniversal reported operating cash flow growth of over 30%, benefitting from the Olympics, continued growth at our Theme Parks, and the theatrical success of “The Secret Life of Pets” this quarter. I’m proud of our consistent execution and excited about the opportunities ahead for Comcast NBCUniversal.”
The NBC broadcast network saw a 56.6% jump in revenue for the quarter, although without the Olympics included revenue declined 3.6% to $1.9 billion. Cable networks were up 22% to $2.9 billion, or $2.5 billion (up 4%) with the Olympics excluded.
The film unit saw an 8% year-over-year decline to $1.8 billion, as expected given the studio’s blockbuster 2015 slate.
The Universal theme parks continue to be on a roll, thanks to the opening of the Wizarding World of Harry Potter attraction at Universal Studios Hollywood and the purchase of the remaining stake in Universal Studios Japan. Theme park revenue was up 16.1% to $1.4 billion, adjusted for the comparison of the Japan purchase in the year-ago quarter. The parks are generating more revenue per user, but the strength of the yen accounted for one-third of the revenue growth, Comcast said.
All told, operating cash flow at NBCUniversal was up 31.5% to $2.1 billion on the back of the Rio Olympics.
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