Comcast Beats on Olympics Ad Boost, Blockbusters

Comcast beat third-quarter revenue estimates Thursday, driven by strong box office performance for its studio, higher ad sales during the 2024 Paris Olympics and a smaller-than-expected decline in broadband subscribers.

Shares of the company rose 4.2% in premarket trading.

The company's media business saw a $1.9 billion revenue boost from the Paris Games, its highest-ever for the Olympics, with most of it coming from increased advertising by brands.

Its studio unit enjoyed blockbuster hits including "Despicable Me 4" and "Twisters," which ranked among the year's top 10 box office releases in the U.S. and Canada, according to IMDb's Box Office Mojo.

The unit's revenue rose 12.3% from a year earlier to $2.83 billion in the quarter, exceeding expectations of $2.75 billion according to analysts' estimates compiled by LSEG.

Comcast's studio and media strength also helped make up for a 5.3% decline in revenue at its theme parks business, which grappled with a shift in customer spending towards international travel and cruises.

The company is set to open its newest theme park, Universal Epic Universe in Florida, on May 22 as part of its efforts to encourage guests to visit and increase spending amid tough competition in the Orlando market.

The owner of Xfinity-brand of internet and cable services lost 87,000 broadband customers in the September quarter, compared with estimates for 143,200 losses, according to FactSet.

The losses were primarily due to the end of the federal Affordable Connectivity Program (ACP), which subsidized internet access for low-income households in the U.S.

The company said excluding ACP's impact, broadband saw net additions of 9,000.

Total revenue was $32.07 billion, above estimates of $31.66 billion according to data compiled by LSEG, with media revenue rising 36.5%.

Its Peacock streaming service added 3 million paid subscribers in the quarter, bringing the total to 36 million.

Comcast also lost 365,000 video subscribers, compared with expectations for 420,300, according to FactSet, as customers switch from traditional TV to streaming services.