Comcast Q3 2022 Revenue Beats Analysts’ Predictions

UTC by Ibukun Ogundare · 3 min read
Comcast Q3 2022 Revenue Beats Analysts’ Predictions
Photo: Depositphotos

Comparing Q3 2022 to Q3 2021, the total revenue generated by Comcast declined by 1.5%.

US-based telecommunication company Comcast Corporation (NASDAQ: CMCSA) has rolled out details of its revenue generated in Q3 2022, exceeding analysts’ expectations. Analysts estimated Comcast would generate $29.65 billion during the three months of Q3 2022. However, Comcast made $29.85 billion despite the decline in revenue across major subsidiaries and its slow broadband customer growth. The firm’s shares jumped 8% to $33.95 during pre-market trading. In contrast to Wall Street expectations, Comcast had an Earnings Per Share (ESP) of 96 cents against the estimated value of 90 cents, another impressive achievement in the quarter.

Unfortunately for the American firm, it could not onboard any new customers during the year’s second quarter. The period was weak for Comcast in the sense of performance, marking the first time it did not add new customers in a quarter since inception. In a turnaround of events, Comcast welcomed 14,000 broadband customers to their network in Q3 2022. The recent happenings indicate that Comcast faces increased competition from telecom and wireless internet companies. Also, major telecommunications companies like AT&T have acknowledged the fierce competition in the industry. AT&T claims to have added 338,000 in Q3 of 2022.

How Comcast Subsidiaries Impacted Its Revenue for Q3 2022

Comparing Q3 2022 to Q3 2021, the total revenue generated by Comcast declined by 1.5%. The generated revenue comes from pay TV, mobile, traditional phone, and broadband services. The broadband revenue skyrocketed because of the increase in average rates and the number of residential broadband customers. Five years ago, Comcast launched its business interface called Xfinity Mobile. Xfinity uses Verizon’s wireless network and has over 5 million customer lines. Comcast also lost 561,000 pay-TV customers, which is the most common challenge for broadcasting companies since the explosion of streaming services. Comcast switched to the trend by establishing Peacock as its streaming service. Since its debut, the streaming service has attracted over 15 million paying customers.

NBC Universal, a subsidiary of Comcast, plummeted by 4% compared to last year’s Q3. The media segment generated only $9.6 billion as opposed to $11.4 billion in Q3 2021. In 2021, NBC Universal broadcasted the Tokyo Olympics. The absence of the Olympics caused revenues from adverts to fall by 35% in 2022

NBC Universal’s movie studios revenue soared high, unlike other sectors, by 31.4%. The studios generated $3.2 billion due to the higher theater and content licensing revenue claims the releases of Jurassic World: Dominion and Minions: The Rise of Gru doubled the theater’s revenue. In an interview with Jeff Shell, the CEO of NBC said the movie business is booming due to the hybrid system implemented. The system simultaneously makes movies available at theaters and on Peacock, Comcast’s streaming platform. In the United Kingdom, Comcast’s Sky recorded a revenue fall of 4.7%, which is solely caused by the present currency exchange rates. Asides from this, the revenue remains the same compared to the previous year.

Business News, Market News, News, Stocks, Wall Street
Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

WhaleMaker
Related Articles
WhaleMaker