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Comcast misses quarterly revenue estimates on weak studio, theme park business
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Comcast misses quarterly revenue estimates on weak studio, theme park business
Jul 23, 2024 4:26 AM

July 23 (Reuters) - Comcast ( CMCSA ) missed estimates

for quarterly revenue on Tuesday as the U.S. telecom and media

firm had fewer movie releases during the period, while

attendance at its theme parks stayed low.

With most of its big movies such as the fourth installment

in the hit animated franchise "Despicable Me" and the disaster

movie "Twisters" released in July, Comcast ( CMCSA ) had little to offer

in the April-June quarter to match the success of last year's

"The Super Mario Bros. Movie" and "Fast X."

Revenue from its studio business fell 27% and was a drag on

its total revenue, which fell 2.7% to $29.69 billion in the

three months ended June. LSEG was estimating $30.02 billion.

Its theme park business posted a 10.6% fall in revenue as a

post-pandemic surge in visitors eased.

Comcast ( CMCSA ) is leaning on Epic Universe - a collection of

immersive worlds such as Super Nintendo World and How to Tran

Your Dragon-Isle of Berk - to bolster its parks business but the

launch has been pushed back to 2025 from this year.

However, its broadband business was a bright spot, as it

weathered stiff competition in the sector. It lost

fewer-than-expected customers in the quarter with a drop of

120,000, compared with estimates for a loss of 143,000

customers, according to FactSet.

Comcast ( CMCSA ) said it had not yet seen the full impact of the

end of the Affordable Connectivity Program, which offered

internet subsidies to eligible households in the U.S.

The company's plan to focus on direct-to-consumer growth

while managing linear TV declines and investing in businesses

less impacted by cord-cutting also showed some progress.

Its Peacock streaming service posted a 27.5% rise in revenue

to $1.05 billion, driven by a 38% rise in paid subscribers to a

total of 33 million.

(Reporting by Harshita Mary Varghese; Editing by Anil D'Silva)

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