Latest news with #MikeCavanagh
Yahoo
24-04-2025
- Business
- Yahoo
Comcast Revenue Slips to $29.9 Billion in First Quarter on Continued Broadband, Pay TV Subscriber Losses
Comcast on Thursday beat Wall Street expectations for its first quarter. But the media conglomerate's total revenue fell 0.6% to $29.89 billion and profits fell 12.5% to $3.86 billion as it shed 199,000 broadband subscribers due to heightened competition and 427,000 video customers from continued cord-cutting. Also contributing to the decline was a 6% drop in domestic advertising revenue in its media business, from lower revenue at its linear networks; a 13% drop in theatrical revenue because of lower revenue from its releases in the quarter compared to the prior year period; and a 5.2% decline in theme parks revenue attributed to lower attendance and the impacts of the Hollywood wildfires on its domestic theme parks and $100 million in pre-opening costs for Epic Universe. Meanwhile, its mobile business was a bright spot, adding 323,000 lines. Peacock also continued to make progress during the quarter, growing revenue 16% to $1.2 billion and adding 5 million paid subscribers for a total of 41 million, primarily driven by its bundle with Charter Communications. But the streaming service remains unprofitable, narrowing its loss to $215 million, compared to a loss of $639 million in the prior year period. 'While we don't see any noteworthy evidence of economic challenges for the year thus far, the odds have increased that challenges may be approaching, but we are well positioned to handle whatever lies ahead,' Comcast President Mike Cavanagh told analysts on Thursday. The latest quarterly results come as Comcast is preparing to spin off its cable network portfolio into a publicly traded, standalone company. The move is expected to be completed by the end of the year and will be tax-free to Comcast's shareholders. The entity, currently dubbed SpinCo, will house USA Network, CNBC, MSNBC, Oxygen, E!, SYFY and Golf Channel as well as digital assets Fandango, Rotten Tomatoes, GolfNow and SportsEngine, reaching 70 million U.S. households and generating $7 billion in annual revenue. Comcast executives on Thursday offered few new details on the spin-off, including the timing of the move. Here are quick-take results from Comcast's earnings: Net income: $3.86 billion, down 12.5% year over year. On an adjusted basis, net income fell 0.9% to $4.17 billion. Earnings per share: 89 cents per share, down 7.7% year over year. On an adjusted basis, EPS came in at $1.09 cents per share, up 4.5% year over year, compared to 98 cents per share expected by analysts surveyed by Zacks Investment Research. Revenue: $29.89 billion, down 0.6% year over year, compared to $29.68 billion expected by Zacks. Comcast shares fell 4% during Thursday's trading session following the results. Comcast ended the quarter with a total of 51.4 million customers in its connectivity and platforms business, including 12.1 million video customers, 8.15 million wireless customers and 31.64 million broadband customers. 'In this intensely competitive environment, we are not winning in the marketplace in a way that is commensurate with the strength of the network and connectivity products,' Cavanagh said. 'Dave [Watson] and his team have worked hard to understand the reasons for this disconnect, and have identified two primary causes, one is price transparency and predictability, and the other is the level of ease of doing business with us. The good news is that both are fixable, and we are already underway with execution plans to address these challenges.' The company previously said it would focus on upgrading its broadband network and WiFi network capabilities to boost speeds for its customers, which would include incorporating artificial intelligence, as well as introduce new bundle packaging and pricing. Despite the broadband subscriber losses, the segment's revenue rose 1.7% to $6.56 billion. Wireless revenue climbed 15.6% to $1.12 billion. Video revenue fell 5.4% to $6.72 billion and advertising revenue for the residential connectivity and platforms segment fell 7.4% to $881 million. Overall, the connectivity and platforms segment's revenue fell 0.7% to $20.14 billion and profit grew 1.5% to $8.34 billion. While Peacock saw positive momentum during the quarter, the overall media segment, which comprises Peacock, grew revenue just 1.1% to $6.44 billion. The unit's revenue was dragged down by a 6.8% decrease in domestic advertising revenue to $1.89 billion, primarily due to lower revenue at the company's linear networks. But profits for the media segment jumped 21.5% to $1 billion due to lower operating expenses from lower sports programming volume and costs at Peacock compared to the prior year period, offset by higher content costs at its entertainment linear networks and an increase in sports costs for its international networks. Domestic distribution revenue grew 0.6% to $2.92 billion, reflecting higher revenue at Peacock, offset by the lower revenue at its networks. International networks revenue grew 13.9% to $1.16 billion, primarily due to increased revenue from the distribution of its sports networks. Looking ahead, Cavanagh touted Peacock's upcoming NBA games in the second half of the year as a key driver to help scale the streamer's subscriber base and trim its losses over time. He also said the company remains open to considering streaming bundles and partnerships. 'While we have not yet seen any impacts from the current macroeconomic uncertainty, advertising is the category that has shown the most economic related cyclicality in our business historically,' Comcast chief financial officer Jason Armstrong added. '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.' The studios business saw revenue grow 3% to $2.83 billion, driven by a 3.5% increase in content licensing revenue to $2.17 billion and a 17.5% increase in 'other' revenue to $366 million, primarily due to digital sales of 'Wicked.' But theatrical revenue dropped 13% to $286 million, primarily due to higher revenue from 'Kung Fu Panda 4' and 'Migration' in the prior year period, compared to releases in the current quarter, including 'Dog Man,' as well as the carryover benefit of 'Wicked' and 'Nosferatu.' Looking ahead, Universal will release 'How to Train Your Dragon' on June 13, followed by 'Jurassic World: Rebirth' on July 2. Overall, the segment saw profits grow 22.3% during the quarter, due to the higher revenue offsetting higher operating expenses. Programming and production expenses increased, mainly driven by higher costs associated with content licensing sales compared to the prior year period. Marketing and promotion expenses decreased due to the timing of spending on recent and upcoming theatrical film releases. Comcast's theme parks business saw revenue tumble 5.2% to $1.88 billion in the first quarter, due to lower revenue at its domestic theme parks driven by lower attendance and the impact of the Hollywood wildfires. Profit for the segment fell 32% to $429 million due to the lower revenue and higher operating expenses, including around $100 million of pre-opening costs for Epic Universe, which will open in May. 'We have seen strong demand since launching Epic ticket sales in the fourth quarter of 2024 and the most recent reaction to early previews has been nothing short of phenomenal,' Cavanagh said. 'Looking past these pre opening costs, underlying results in the quarter indicated stable trends in Orlando, giving us confidence that we are entering the Epic launch from a position of strength.' He added that international parks performance remains strong, but cited a 'softness' at Universal Hollywood due to the fires, adding it expects a 'gradual' recovery. In addition to Epic, the company will open Universal Horror Unleashed, its first permanent year-round horror entertainment experience in Las Vegas in August, as well as its first ever Universal Kids resort in Frisco, Texas, in 2026. It also plans to build its first Universal theme park and resort in the United Kingdom, with construction starting in 2026 and a grand opening scheduled for 2031. The post Comcast Revenue Slips to $29.9 Billion in First Quarter on Continued Broadband, Pay TV Subscriber Losses appeared first on TheWrap. Sign in to access your portfolio
CNA
24-04-2025
- Business
- CNA
Comcast sheds more broadband subscribers as wireless carriers ramp up bundled plans
Comcast reported a larger-than-expected quarterly decline in broadband customers on Thursday, hit by intense competition from wireless carriers bundling mobile services with high-speed internet plans, sending its shares down 6 per cent. Broadband customers decreased by 199,000 in the first quarter, higher than the 139,000 losses Comcast reported in the last three months of 2024. FactSet analysts had expected the company to shed 146,100 broadband customers. The competitive environment remains intense in broadband with wireless carriers marketing their plans aggressively, Comcast said. The media giant responded in mid-April with new pricing plans along with five-year price locks for new broadband customers to stem the churn in its Xfinity Internet service. "Comcast's new plans will undoubtedly improve on the results they reported this morning. However, it looks like broadband market growth is just slower than it has been, and competition in a slowing market is tough," New Street Research analyst Jonathan Chaplin said. Comcast is awaiting the launch of its "Epic Universe" theme park next month in Orlando, Florida, to lift demand for the business. "Ticket sales and advance plans for Epic Universe are a little ahead of our expectations," Comcast President Mike Cavanagh said. Revenue at the theme park business fell 5.2 per cent to $1.88 billion in the first quarter, as the Los Angeles wildfires in January impacted several services in Hollywood. Studio revenue rose 3 per cent to $2.83 billion, helped by the success of films "Wicked" and "Nosferatu" released in the fourth quarter. Streaming service Peacock reported an adjusted core loss of $215 million, narrower than $639 million reported a year earlier. Total paid subscribers at Peacock rose to 41 million, compared with 36 million at the end of last year, helped by its distribution deal with Charter Communications last year. Total revenue of $29.89 billion beat estimates of $29.77 billion, according to data compiled by LSEG.
Miami Herald
17-04-2025
- Business
- Miami Herald
Comcast hopes to win back fleeing customers with generous offer
Over the past few months, Comcast (CMCSA) has suffered from an unexpected change in customer behavior. While it was expected for the telecom giant to see a dip in cable customers during the fourth quarter of 2024 due to the rise of streaming services, a significant decrease in internet customers wasn't on the company's bingo card. Don't miss the move: Subscribe to TheStreet's free daily newsletter In Comcast's latest earnings report, it revealed that while its broadband revenue increased by 3% year-over-year during the last few months of 2024, it lost about 139,000 broadband customers, which is more than the 100,000 loss the company had previously forecasted. Related: Comcast flags an alarming shift in consumer behavior During an earnings call on Jan. 30, Comcast President Mike Cavanagh said the loss was "disappointing and worse" than previously expected. He also said that the steep loss in internet customers was partially due to the discontinuation of the Affordable Connectivity Program (ACP), which ended last February. It was a government program that offered eligible households a discount of up to $30 a month for internet service. Cavanagh also flagged that Comcast, which offers internet under the name Xfinity, is facing "intense" competition in its broadband business, especially when it comes to fiber internet, since competitors have larger coverage areas. Amid this concerning trend, Comcast has decided to roll out a five-year price lock for Xfinity plans. Prices for internet plans range between $55 and $105 a month, and they don't require an annual contract, which grants customers the ability to cancel anytime without penalty. Image source: Bloomberg/Getty Images "We're addressing two significant consumer pain points – rising costs and transparency – with incredible value and easy-to-understand pricing that is locked in for five years," said Steve Croney, chief operating officer of connectivity and platforms at Comcast, in a press release. Customers who enroll in an internet plan with the price-lock guarantee also receive unlimited data and an unlimited Xfinity Mobile line at no extra cost for a year. The new offer from Comcast comes after it announced in December that it will raise prices for its Xfinity services this year due to "strategic investments" to make its network "smarter, faster and more reliable." Related: T-Mobile angers customers with latest warning Comcast also recently reduced Xfinity's monthly autopay discount for credit and debit card payments from $5 to $2. Comcast's recent pricing adjustments have frustrated customers to the point where some are contemplating switching internet providers. Many consumers across the country have been feeling the brunt of inflation and higher costs of living in recent years, so it is no surprise that another price increase would be the last straw. According to a survey from U.S. News in October last year, the average internet bill at sign-up is about $81 in the most populous states. That's slightly higher than what U.S. News found in its survey in April 2024, which showed that the average initial internet bill nationwide was $77. More Retail: AT&T quietly issues stern warning to customersSam's Club makes a big change to a beloved membership perkGameStop announces risky move amid store closures Also, 53% of Americans in the survey said the higher cost of groceries and other household products has restricted their budget to the point where they struggle to pay their monthly internet bill. Comcast's decrease in internet customers also comes at a time when Verizon, AT&T, and T-Mobile are all offering their customers fixed wireless access (FWA) internet service. FWA internet provides a high-speed connection that uses radio signals instead of cables. It can provide internet access to remote or underserved areas where internet through cable is not available. FWA internet is also offered at a cheaper price than traditional internet services, which is giving Comcast major competition. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
09-04-2025
- Business
- Yahoo
Universal moves ahead with theme park plans for England
Comcast NBCUniversal plans to build a theme park and resort in England, and the project will have roots in Orlando, the company has confirmed. The Universal theme park would be the company's first in the United Kingdom and Europe. It will be 'designed and delivered by the company's Universal Destinations & Experiences segment,' which is in based in Orlando, according to a Comcast news release. The company purchased 476 acres of land in Bedford, about 50 miles north of London, in 2023. A new theme park would include 'several themed lands,' a 500-room hotel and a retail and dining complex. The project is subject to planning approval, and a proposal will be submitted to U.K. government for a hoped construction start in 2026, the news release says. 'This is a special and historic milestone moment for our company as we continue to accelerate the growth trajectory of our theme-parks business and delight audiences around the world,' Mike Cavanagh, president of Comcast, said in the release. Rides and other attractions within the proposed park were not announced. An artist concept shows at least three roller coasters, several show buildings, a central lagoon, a studios-style entrance and Universal's trademark globe out front. A taller building, perhaps a hotel, appears on the edge of the theme park. 'Expanding into Europe presents us with a significant opportunity to reach new fans and share the incredible experiences our team creates,' Mark Woodbury, CEO of Universal Destinations & Experiences, said in the release. Universal has several projects in the works, including Epic Universe theme park, which is set to open on May 22 as the company's fourth gate in Orlando. Also on its to-do list: Horror Unleased, a year-round spooky attraction in Las Vegas set to debut in August, and the under-construction Universal Kids theme park near Dallas, which is scheduled to open in 2026. Epic Universe preview: An early walk (and rides) in the park The average high temperature in August in Bedford is in the mid-60s. The high in January, February and December is in the low 40s, dipping into the high 30s. Universal also has theme parks in Hollywood, California; Osaka, Japan; Singapore; and Beijing. The Bedford location will be within two hours travel time of 80% of England's population and have 'fantastic connectivity' to all of Europe, Universal said. 'The unparalleled storytelling and technological innovation that the incredible team at Universal Destinations & Experiences brings to life is a perfect complement to the British creative arts and tourism industries,' Cavanagh said. Email me at dbevil@ BlueSky: @themeparksdb. Threads account: @dbevil. X account: @themeparks. Subscribe to the Theme Park Rangers newsletter at Popular theory: 'Wicked' movie has theme-park possibilities
Yahoo
09-04-2025
- Entertainment
- Yahoo
Universal Officially Moving Forward With U.K. Theme Park & Resort; Construction To Begin In 2026
Just one month before it is set to open its highly-anticipated Epic Universe expansion in Orlando, Universal Destinations & Experiences announced today that it will proceed with previously-teased plans to build a new theme park in the United Kingdom. In June of last year, UDX announced it was carrying out feasibility and due diligence studies and was set to make a final decision on the project by the end of this year. Today's announcement is the result of that process. More from Deadline Epic Universe: Fans Get A Look Inside Universal Orlando Resort's Ambitious New Park New Epic Universe Ticket Packages Unveiled For Universal Orlando Resort CinemaCon 2025: Here's What Worked & Didn't Work The UK project is subject to securing planning approval. A proposal along those lines will be submitted to UK Government in the months ahead with a projected construction start date in 2026. The theme park unit of Comcast subsidiary NBCUniversal announced in December 2023 that it had acquired the 476-acre site for a proposed new UK location outside the town of Bedford, some 60 miles northwest of London. See map below. 'This is a special and historic milestone moment for our company as we continue to accelerate the growth trajectory of our theme parks business and delight audiences around the world,' said Mike Cavanagh, President of Comcast Corporation. 'The unparalleled storytelling and technological innovation that the incredible team at Universal Destinations & Experiences brings to life is a perfect complement to the British creative arts and tourism industries.' The project is expected to deliver £50B of direct and indirect benefit in the UK, which translates to just shy of $64B. That includes 20,000 construction jobs over the next few years as well as 8,000 posts once the site was operational. See fact sheet below. 'Bringing the Universal brand to the United Kingdom is another exciting step forward in generating future growth,' said Mark Woodbury, Chairman and CEO of Universal Destinations & Experiences. 'Expanding into Europe presents us with a significant opportunity to reach new fans and share the incredible experiences our team creates.' Best of Deadline 2025 TV Series Renewals: Photo Gallery 2025-26 Awards Season Calendar: Dates For Tonys, Emmys, Oscars & More Brad Pitt's Apple 'F1' Movie: Everything We Know So Far
