The Journal Gazette
Friday, July 31, 2020 1:00 am

Comcast reports tough quarter

TV, film, theme park revenue drop; internet figures up

TALI ARBEL | Associated Press

NEW YORK – The coronavirus pandemic took a toll on Comcast in the second quarter as movie theaters closed, theme parks shut down and advertisers cut back.

The company reported Thursday that its NBCUniversal TV, film and theme park divisions, as well as its Sky unit in Europe, all suffered steep drops in revenue in the April-June quarter.

But the period was not all grim news. The Philadelphia-based company added U.S. internet customers, and 10 million people have signed up for its new Peacock streaming service since April. Peacock is free for Comcast customers and has been available to them since April, but opened to the general public, with a much-promoted free tier, on July 15. Signing up for an app doesn't mean those costumers are using Peacock regularly or at all, however. Comcast has said it hopes to have 30 million to 35 million users by 2024.

Comcast's other entertainment divisions showed how the pandemic has hit its business. NBCUniversal revenue fell 25% to $6.12 billion. NBC reopened Universal Studios Japan and its Universal park in Orlando, Florida, in early June, despite a surge of cases in Florida. Disney's Florida park also reopened this month. The theme park business shrank to $87 million in revenue from $1.46 billion a year ago.

The movie division's revenue fell 18% to $1.19 billion. The pandemic has upended the movie business, shutting down Hollywood production and the distribution of films. Comcast struck an industry-changing deal with AMC on Tuesday that will let it offer its movies to customers at home much faster – after just 17 days rather than three months.

Overall, Comcast's net income fell 4.4% to $2.99 billion, or 65 cents per share. Stripping out one-time items, earnings were 69 cents per share. Wall Street analysts expected 55 cents, according to FactSet.

Revenue slid 12% to $23.72 billion. Analysts predicted $23.58 billion.

Shares were nearly unchanged at $43.87 in morning trading.

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