Peacock’s revenue increased over 16%. And its paid subscribers were up 20% to 41 million, driven by the service’s introduction on a Charter bundle introduced at the end of the quarter.
Comcast Corp.’s media unit experienced almost a 7% decline in domestic advertising revenue during the first quarter, and its distribution was up a skinny 0.6%. But the division managed to post a total revenue gain of 1.1% (to $6.44 billion) and an adjusted EBITDA gain of 21.5% ($1 billion), vs. the same quarter in 2024.
The results were in part buoyed by revenue from the company’s international networks and Peacock. The streamer’s revenue increased over 16%. And its paid subscribers were up 20% to 41 million, driven by the service’s introduction on a Charter bundle introduced at the end of the quarter. Peacock’s EBITDA losses improved by $424 million compared with the prior year period.
Mike Cavanagh, Comcast’s president, gave a big picture view of the entire company’s results in an earnings call this morning by focusing on the six businesses identified as key areas of growth: residential broadband, wireless, business services, theme parks, streaming and premium content in the studios. All told, they represent 60% of the company’s revenue and helped drive “2% EBITDA growth, 5% adjusted EPS growth, and $5.4 billion of free cash flow,” he said.
Cavanagh went on to speak of Comcast’s commitment to “capital allocation strategy, which balances robust, disciplined investment in these growth areas, the protection of one of the strongest balance sheets — if not the strongest balance sheet — in the industry, and the return of substantial capital to shareholders.”
Across the board, Comcast’s revenue declined 0.6%, to $29. 89 billion, and its adjusted EBIDTA was up 1.9%, to $9.53 billion.
“In media, total advertising revenue was down 7% mainly due to the volume and timing of sports content along with tough political comparisons,” said Jason Armstong, CFO. “However, for the upfront and for the balance of the year, we feel well positioned in the market as we capitalize on the NBA launching in the fourth quarter, a healthy Peacock subscriber base, and a strong content offering across entertainment and news.”
Armstong noted that a critical piece of Peacock’s strategy is a focus on sports. “Today, we offer more premium sports than any other streaming service, including the NFL, the Olympics, Premier League, Kentucky Derby, Big 10, and then, starting this fall, we look forward to adding the NBA.”
Later in the call, Cavanagh addressed a question about potential Peacock partnerships. “If opportunities come along to partner up in bundles or otherwise, we’ll be happy to consider those things if they make sense. But there’s no news to report on that front.”
He also addressed an analyst’s request for an update on SpinCo — a unit that Comcast intends to spin off, which encompasses USA Network, CNBC, MSNBC, Oxygen, E!, SyFy, and Golf Channel. There’s “no change in our expectation of timing. You know, around the end of the year.”
In addition to the media unit, Comcast’s Content & Experiences group includes theme parks. That unit’s revenue was off by 5.2% in the quarter, to about $1.88 billion. The wildfires around Los Angeles were partially responsible for lower attendance in the quarter.
So far, anti-American sentiment doesn’t appear to be impacting theme park sales. “Our first quarter results continue to be stable in Florida,” said Cavanagh. “We’re seeing that advanced bookings, both ticket sales and hotel bookings, are strong for the overall parks and for Epic [Universe, launching next month].”
Another part of the Content & Experience group are the studios, which exhibited 3% revenue growth, to $2.83 billion and adjusted EBITDA up 21% to $298 million, reflecting strong carryover from the hits Wicked and Nosferatu.
