Comcast’s revenues from all three business segments exceeded analysts’ third quarter estimates.
The U.S. company reported revenues of £19.78 billion and 50.37 pence adjusted EPS.
Comcast forecasts that its theme park segment will break even before the beginning of 2022.
Comcast Corp. (NASDAQ: CMCSA) announced Thursday that its revenues from all three business segments were higher than expected for the third quarter of the fiscal year. The U.S. telecommunications conglomerate had also exceeded Wall Street estimates in the previous quarter (Q2).
Cable communications and high-speed Internet, Comcast said, had gained 556,000 and 633,000 new customers respectively in the third quarter. In contrast, the total number of video subscribers declined to 273,000. In early October, Comcast announced the RISE initiative, which aims to strengthen black-owned business.
Comcast’s financial results for the 3rd quarter compared to analysts’ estimates
According to FactSet, experts had predicted that the telecommunications conglomerate would print £19.17 billion of total revenues in the third quarter of the financial year. Their estimate of earnings per share was capped at 40.29 pence. In its Thursday report, Comcast exceeded both estimates with higher revenues of £19.78 billion and adjusted earnings per share of 50.37 pence in the third quarter.
In comparison, the U.S. company reported revenues of £20.78 billion and adjusted earnings per share of 61.22 pence in the third quarter of last year.
At £11.62 billion, total revenues from cable communications were higher than £11.31 billion in the same quarter last year. The FactSet Consensus for cable revenues was lower at £11.39 billion.
NBC Universal’s revenues for the third quarter were £5.21 billion compared to £6.43 billion in the same period last year. However, it was better than the analysts’ estimate of £5.01 billion. Within this segment, Comcast generated revenues of £241 million from theme parks, compared with £1.26 billion in the previous year. The Philadelphia-based company predicts that its theme park segment will break even before the beginning of 2022.
Other prominent figures in Comcast’s earnings report
Other prominent figures in Comcast’s earnings report on Thursday include revenues of £3.71 billion from Sky European TV’s European TV business, compared with a lower £3.53 billion in the same quarter last year. Analysts had predicted 3.27 billion pounds from this segment for the third quarter.
The company’s shares rose by approximately 0.5% in pre-IPO trading on Thursday and by a further 3% in the later hours. At £33.62 per share, Comcast’s share price on the stock exchange is now about 4% below the previous year’s result. In March, the share price had plummeted to as low as £25 per share due to COVID-19 interruptions.
At the time of writing this article, the US telecommunications conglomerate has a market capitalization of £153.72 billion and a price-earnings ratio of 17.41.