Comcast Corporation reported results for the quarter ended June 30, 2023, and revealed that the paid subscribers for its streaming service Peacock nearly doubled compared to the prior year period, adding 2 million users and reaching 24 million.
Peacock two million customers addition during the quarter was largely driven by Comcast Xfinity subscribers that began paying for subscriptions in June following nearly three years of free access. The streaming platform revenue increased 85% to US$820 million.
Financially speaking, the conglomerate reported adjusted net income for the quarter of US$4.7 billion, or US$1.13 per share. Total revenue grew 1.5% year over year to US$30.5 billion, while adjusted earnings before interest, taxes, depreciation and amortization grew 4.2% year over year to US$10.2 billion.
“The consistent investments we have been making in our growth businesses continue to generate strong results and position us extremely well both now and into the future. Second quarter operational and financial performance was excellent and included a double-digit increase in Adjusted EPS and significant free cash flow generation," commented Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation.
"This quarter contained a number of highlights and notable achievements. We not only continued to deliver solid revenue growth in our connectivity businesses but also expanded our Adjusted EBITDA margin at Connectivity & Platforms. We generated the best quarterly Adjusted EBITDA ever at Theme Parks, had the second-highest grossing animated film of all time in worldwide box office revenue with ‘Super Mario Bros.,’ and nearly doubled paid Peacock subscribers year-over-year. At the same time, we returned a healthy amount of capital to shareholders and maintained an enviable balance sheet. Our experienced and expert management team is executing at an exceptional level, and our long-term-oriented growth strategy is clearly working," Roberts added.
● US DEMAND SHARE FOR PEACOCK
According to Parrot Analytics, streaming platform Peacock – while still the smallest of the major streamers in terms of subscribers and content demand – hit a record high in US demand share for streaming original content in the second quarter of 2023, and has grown its market share for three consecutive quarters.
The WGA and SAG-AFTRA strikes will impact all players in the industry differently, but Peacock may be poised to survive a prolonged work stoppage by leveraging two key NBCUniversal TV assets: Bravo and NBC’s Sunday Night Football, Parrot Analytics noted.
“Peacock’s price hike may have come at just the right time, as the streamer is likely to rely more on the proven loyalty of Bravo and NFL audiences, which could help begin to turn around Peacock’s massive financial losses over the past several years,” Parrot Analytics concluded.
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