Comcast Corporation
Analysis
Comcast is paying customers to stay: cheaper broadband, a free year of wireless, and now the biggest cost overhaul in its history, while it splits itself into two companies. Broadband losses are finally narrowing, but the bill is landing in profit. How will the split divide Comcast's debt between the two companies?
- Broadband losses are shrinking, and price is paying for it.
Losses narrowed year over year from Q1, the first improvement since 2020, on better connects and lower churn. Revenue per customer fell all year and connectivity profit fell until Q3, so the fix is real and being bought with margin. How much of the broadband base is still on old promotional pricing?
- Peacock is now profitable, even in its most expensive year.
Profitable in Q2 and again in Q3, holding 48 million subscribers through a price rise, in the year the NBA bill peaked. That flips media from a drain into something that pays for its own shows, which is what the spin-off needs. How much of Peacock's profit comes from price rises versus advertising?
- Parks went from a record quarter to the biggest open question.
Epic pushed parks past $1 billion of quarterly profit, then June brought an Orlando slowdown and Q3 parks profit fell 17%. Rivals moved first and Epic still runs below capacity, so the business that carried Comcast now waits on 2027.
- Wireless attach to broadband baseThe bull case is that Comcast sells mobile service into households that already buy its broadband, deepening each relationship and lowering churn without building a network.
- Peacock reaches profitabilityPeacock has moved from heavy losses to profit as live sports and next-day broadcast shows bring subscribers and advertisers, and management expects annual improvement to continue.
- Broadband losses narrowingManagement's pricing reset is showing up in fewer broadband losses, and the company argues the worst of the defections is past as free mobile lines convert to paid ones.
- Fiber and fixed wireless competitionComcast sells broadband into a market where fiber builders and fixed wireless carriers keep cutting price, so it must spend more on retention just to hold the customers it has.
- Broadband revenue per customerSimplified pricing and free mobile lines cut the revenue collected per broadband customer, so the payoff depends on converting free lines into paid ones on schedule.
- Theme park attendance softnessAttendance in Orlando and Japan has weakened on consumer sentiment and travel costs, and management now points to a parks recovery only in the second half of next year.
| Politician | Transaction | Amount | Traded | Filed |
|---|---|---|---|---|
Donald Trump Republican · Executive | Purchase | ≥$250K | Aug 21 | Oct 8 |
Donald Trump Republican · Executive | Purchase | ≥$15K | Aug 17 | Oct 8 |
Donald Trump Republican · Executive | Purchase | ≥$1.0M | Aug 10 | Oct 8 |
Donald Trump Republican · Executive | Purchase | ≥$50K | Jul 27 | Sep 22 |
Donald Trump Republican · Executive | Purchase | ≥$1K | Jul 24 | Sep 22 |
Congressional trading data provided by QuiverQuant
How Comcast turned $124B of revenue into $20.7B of operating income.
| Revenue | ||
|---|---|---|
| Residential Connectivity And Platforms Segment | $70.7B | ▼ 1.22% YoY |
| Media Segment | $27.1B | ▼ 3.76% YoY |
| Studios Segment | $11.3B | ▲ 1.75% YoY |
| Business Services Connectivity Segment | $10.2B | ▲ 5.53% YoY |
| Theme Parks | $9.8B | ▲ 14.13% YoY |
| Corporate and Other | $3.1B | ▲ 3.62% YoY |
| Total revenue | $124B | |
| Gross profit | $88.8B | 71.7% |
| Operating income | $20.7B | 16.7% |