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Comcast Q3 Profit Declines 37%, But Results Top Estimates

comcast july2 29oct20 lt

Comcast Corp. (CMCSA,CMCSK) on Thursday reported a 37 percent decline in profit for the third quarter from last year, hurt primarily by revenue decline at NBCUniversal. Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also declared a quarterly dividend.

In the pre-market trade, CMCSA is trading at $42.83, up $0.85 or 2.02 percent.

Net income attributable to Comcast for the quarter decreased to $2.02 billion or $0.44 per share from $3.22 billion or $0.70 per share in the year-ago quarter. Excluding items, adjusted earnings for the quarter were $0.65, compared to $0.79 per share in the prior-year quarter.

On average, 26 analysts polled by Thomson Reuters expected the company to report earnings of $0.52 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter declined 4.8 percent to $25.53 billion from $26.83 billion in the same quarter last year. Analysts had a consensus revenue estimate of $24.74 billion for the quarter.

Revenue for Cable Communications grew 2.9 percent to $15.9 billion in the quarter, reflecting increases in high-speed internet, wireless, business services and advertising revenue, offset by decreases in video, voice and other revenue.

Total Customer Relationships increased by 556,000 to 32.7 million and total high-speed internet customer net additions were 633,000, both the best quarterly result on record. Cable Communications added 187,000 wireless lines However, total video customer net losses were 273,000 and total voice customer net losses were 3,000.

Revenue for NBCUniversal decreased 18.9 percent to $6.72 billion from last year. Broadcast Television revenue increased 8.3 percent to $2.4 billion, reflecting higher content licensing revenue and distribution and other revenue, partially offset by lower advertising revenue.

Cable Networks revenue also declined 1.3 percent to $2.7 billion, reflecting lower distribution revenue and advertising revenue, partially offset by higher content licensing and other revenue.

Filmed Entertainment revenue decreased 25.0 percent to $1.3 billion, primarily reflecting lower theatrical revenue and other revenue, partially offset by higher content licensing revenue.

Theme Parks revenue decreased 80.9 percent to $311 million, primarily due to Universal Orlando Resort and Universal Studios Japan operating at limited capacity, while Universal Studios Hollywood remains closed as a result of COVID-19.

Revenue for Sky increased 5.2 percent to $4.8 billion from last year. Excluding the impact of currency, revenue was consistent with the prior year period, due to higher content revenue, offset by lower direct-to-consumer revenue and advertising revenue.

Separately, Comcast announced that its Board of Directors declared a quarterly dividend of $0.23 a share on the company's common stock, payable on January 27, 2021 to shareholders of record as of the close of business on January 6, 2021.

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