Comcast (CMCSA) Fourth Quarter 2020 Earnings: 33 Million Peacock Registrations
Comcast on Thursday reported fiscal fourth quarter results that beat analysts’ estimates in the upper and lower ranges.
Comcast also reported record growth in high-speed Internet service customers in the fourth quarter and an additional 11 million subscribers to its new streaming service, Peacock.
The stock rose more than 3% in the morning.
Here are the key numbers:
- Earnings per share: 56 cents adjusted compared to 48 cents, which were expected in a refinitive poll of analysts
- Revenue: $ 27.71 billion versus $ 26.78 billion expected from Refinitiv
- High-speed internet customers: In a FactSet survey, 538,000 versus 490,000 net additions are expected
The company said NBCUniversal’s Peacock now has 33 million filings in the U.S., up from 22 million last quarter. The company said its exclusive agreement to stream wrestling matches from the WWE network in the US, announced earlier this week, should encourage enrollment and engagement alongside the recent launch of “The Office” on the platform.
Comcast also increased its quarterly dividend from 23 cents to 25 cents per share. CEO Brian Roberts said in the earnings report that the company also expects to begin buying back shares later in 2021.
The company reported its best fourth-quarter result of any customer relationship, adding 455,000 customers to reach 33.1 million. There were 538,000 high-speed Internet customers.
Comcast said the Europe-based Sky division continued to add customers, up from 244,000 to 23.9 million in the fourth quarter. This brought its customer relationships and total Sky sales in Europe back to pre-Covid 2019 levels, the company said.
Comcast’s theme park division, which has suffered from the pandemic, continued to experience closings and capacity reductions as a result of the pandemic. Theme park revenues decreased nearly 63% to $ 579 million. The company said adjusted earnings before interest, taxes, depreciation and amortization represented a loss of $ 15 million that included the cost of Universal Beijing, which was not yet opened.
“Without these costs and better participation in the parks in Orlando and Osaka, even when Hollywood is closed, the theme parks have hit breakeven,” the company said.
The Filmed Entertainment Department has also been hit by the pandemic, which restricted the operation of the cinema and suspended some film productions. The segment’s revenue decreased 8.3% to $ 1.4 billion. The company said this was partially offset by increased revenue from content licensing. Adjusted EBITA increased more than 65% to $ 151 million.
Comcast said its decision to publish titles on premium video-on-demand has proven profitable.
The company said the introduction of vaccines brings optimism that the affected businesses will grow again. It is also optimistic that the Tokyo Olympics, set to open on July 23, will continue to take place.
“Anything could happen, but we’re pretty confident that the Olympics will take place and that advertisers will step in and agree,” said Jeff Shell, CEO of NBCUniversal, on the company’s earnings call.
Here’s how Comcast’s businesses performed for the quarter year over year:
- Cable communications generated sales of $ 15.7 billion, up 6.3 percent.
- Cable networks achieved sales of $ 2.7 billion, a decrease of 6.4%.
- Broadcast television had sales of $ 2.8 billion, down 12%.
- The filmed entertainment generated total revenue of $ 1.4 billion, down 8.3%.
- Theme parks achieved revenue of $ 579 million, a decrease of 63%.
Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.
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