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- Comcast reported growth in NBCUniversal's TV and films businesses, with streaming platform Peacock reaching profitability for the first time since its 2020 launch.
- Comcast's broadband unit once again reported customer losses, and revenue was down as its new strategy centered around mobile and broadband deals takes hold.
- Comcast said earlier this year it would split the cable businesses from the media business, creating two separate publicly traded companies.
Comcast's second-quarter results on Thursday showcased strength at NBCUniversal — particularly in its TV and film units — as the company prepares to split its media and broadband businesses apart.
NBCUniversal's streaming service, Peacock, hit profitability during the quarter for the first time, Comcast said, giving the media business a lift. The streaming service also benefited from live sports including the FIFA World Cup and NBA postseason that brought in new subscribers.
Revenue in the company's content and experiences division, which includes media unit NBCUniversal, rose almost 23% year over year.
Meanwhile, it was a different story with the traditional cable and connectivity business. The company said that its shifted strategy for the broadband business is "gaining traction" following years of significant competition and pressure due to the rise of alternatives like 5G providers.
But Comcast once again reported broadband customer losses for the period, and revenue for the connectivity and platforms segment notched down as its lower pricing plans and promotions took hold.
The diverging storylines for broadband and media come weeks after Comcast said it would divide the two businesses into separate publicly traded companies. In Thursday's release co-CEOs Brian Roberts and Mike Cavanagh called the split "an important step toward creating two focused companies with the financial strength and flexibility to pursue their respective growth strategies."
During Thursday's call with investors, Roberts addressed the separation immediately. He said that, following weeks of discussions with various employees and people inside and outside of the company, "I feel more positive and energized today than I was on the day we announced."
"This structure gives both companies the freedom to pursue the priorities that matter most to their futures," said Roberts. "There's a lot of work ahead, and we're moving with real urgency."
Cavanagh said on Thursday that work on the separation began immediately after the announcement was made, with the goal of it being completed in about one year.
Tale of two companies
Revenue for the connectivity and platforms segment, which includes the Xfinity-branded broadband, mobile and cable TV offerings, was down 3% to $19.8 billion during the second quarter. Earnings before interest, taxes, depreciation and amortization for the unit dropped nearly 6% to $7.96 billion.
Comcast lost 167,000 total broadband residential customers and 280,000 cable TV subscribers during the quarter. Mobile remained a bright spot with additions that once again marked a record quarter and brought its total to 10.2 million lines. Mobile has become a major driver and key part of Comcast's strategy to boost the broadband business.
"While the environment remains highly competitive, we like the progress we are making on the things we can control," Cavanagh said on Thursday's call, adding that the mobile business is scaling quickly.
The content and experiences segment that houses NBCUniversal's TV, film and theme parks, however, saw revenue surge to $10.73 billion, boosted by the impact of the FIFA World Cup that began in mid-June and was aired in Spanish in the U.S. on the company's Telemundo network.
The World Cup and reality TV series "Love Island USA" helped Peacock record its biggest viewership month ever in June, Cavanagh said Thursday. The streaming service added 2 million subscribers, bringing its total to 48 million as of June 30.
Cavanagh will lead the NBCUniversal business after it's spun out from Comcast.
Revenue for the TV media unit in particular benefited from Peacock and an increase in advertising, and film studio revenue rose 25%.
Elsewhere in the entertainment unit, theme parks revenue was up nearly 3% as softness at international parks offset higher revenue in Orlando, Florida.
Overall revenue for Comcast was down 1.2% during the second quarter to $29.94 billion, though it beat estimates from LSEG analysts of $29.3 billion. On a pro-forma basis, accounting for the impact of Comcast's Versant spinoff that was completed at the start of the year, the company said quarterly revenue was 4.7% higher.
Comcast reported adjusted earnings per share of $1.04, topping Wall Street estimates of 97 cents, according to LSEG. Comcast reported net income attributable to the company of $3.53 billion.
Disclosure: Versant Media Group is the parent company of CNBC.
