Comcast’s Peacock Nearly Doubled Subscribers in the Second Quarter, But Losses Still Mount

Comcast Corp.'s signature streaming service Peacock nearly doubled its subscribers during the second quarter, recovering from last year's lows but still experiencing heavy losses.

Comcast’s streaming service, Peacock, nearly doubled its paid subscribers to 24 million from the same quarter a year ago. It raked in $820 million in revenues, up 85% from the same quarter last year and up from $685 million in the first quarter of this year.

However, the streaming service still lost $651 million on an adjusted basis, compared to $704 million in adjusted losses during the first quarter. Comcast forecasted $3 billion in losses from Peacock going into 2023 and is on track to meet that projection.

Most of the subscriber growth came from transitioning Comcast bundled subscribers, who received Peacock for free, to a paid subscription, Jason Armstrong, Comcast's chief financial officer, said in a call with analysts on Thursday morning.

The company's shares jumped by about 3% in premarket trading.

Earlier this month, Peacock raised its subscription rates for the first time since its launch in 2020 to $5.99 a month for a premium subscription, up from $4.99, and $11.99 per month for its premium plus tier, which is mostly ad-free, up from $9.99. Although modest, the increases raised eyebrows due to the timing of the measures in the midst of the historic double-strike in Hollywood.

Comcast reported revenues of $30.5 billion, up just 1.7% from $30 billion year-over-year. Its net income came in at $4.25 billion, a 25% increase from $3.4 billion in the second quarter of 2022. Adjusted earnings per share were $1.13, in line with analysts’ estimates, according to data compiled by FactSet.

Its blockbuster Super Mario Brothers film, released in early April, brought in $1.3 billion from the worldwide box office and became the second-highest grossing animated film ever.

Revenue at Universal theme parks also saw record results with a 22% increase to $2.21 billion in the second quarter, owing to the opening of Super Nintendo World at Universal Hollywood and Japan.

Comcast’s Xfinity cable and wireless products, in particular its high-speed broadband, are the company’s cash-cows. Its results were consistent with last year. It counted 32.3 million high-speed internet customers, losing 19,000 from the same quarter last year. Connectivity and platforms brought in $20.36 billion in revenues, up 0.1% from $20.34 billion a year ago. Notably, international connectivity brought in $1 billion in revenues.

NBCUniversal CEO Jeffrey Shell was ousted in April over allegations of sexual harassment and inappropriate conduct with a female employee, the company told investors in a securities filing. Mike Cavanagh, president of Comcast, stepped in to lead NBCUniversal in May.