01:14 PM EDT, 10/31/2024 (MT Newswires) -- Comcast ( CMCSA ) said Thursday it is considering a potential spin off of its cable brands to better navigate cord-cutting trends, while the company reported higher-than-expected results for the third quarter.

Comcast ( CMCSA ) will commence a study on whether to create a "new, well-capitalized company owned by our shareholders and comprised of our strong portfolio of cable networks," President Michael Cavanagh told analysts on a conference call, according to a Capital IQ transcript. A potential separation would exclude the Peacock streaming service and broadcast operations, Cavanagh said.

"Like many of our peers in media, we are experiencing the effects of the transition in our video businesses and have been studying the best path forward for these assets," Cavanagh said on the call.

As part of its review, Comcast ( CMCSA ) will consider whether a spin-off of its cable networks business would enable the company to "take advantage of opportunities in the changing media landscape," he said. Shares of Comcast ( CMCSA ) climbed 3% in afternoon trade.

"We chose not to participate in the M&A process around Paramount in the earlier part of this year, but we would consider partnerships in streaming despite their complexities," Cavanagh told analysts.

In the third quarter, Comcast ( CMCSA ) reported revenue of $32.07 billion, up from $30.12 billion in the same period last year and surpassing the $31.71 billion average analyst estimate on Capital IQ. Adjusted earnings per share edged up to $1.12 from $1.08, versus analysts' expectation for a dip to $1.06.

Total media revenue climbed nearly 37% to $8.23 billion, largely reflecting higher domestic advertising and distribution revenue amid the Paris Olympics. Excluding the Olympics, media revenue was up 4.9%. Olympics-related revenue and stronger Peacock sales were partially offset by lower revenue at networks, the company said.

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