Comcast topped the first-quarter 2016 earnings and sales marks laid out for it by media analysts, despite sorely missing an NBC Super Bowl and any sort of real box office punch.
On the big screen, NBCUniversal suffered from a lackluster comparison to 2015’s opening three-month period, which included hit film adaptation, “50 Shades of Grey.” That same Filmed Entertainment segment was also hurt by softer home release offerings this time around, but the down group did have some consumer product carryover and positive content licensing momentum to help offset overall declines a bit.
Broadcast TV revenues were down 7.3 percent, but that’s again due to an unfavorable comparison. And this one isn’t NBC’s fault: In Q1 2015, the network had Super Bowl 49; Super Bowl 50 was on CBS. If we isolate sales without the big game, NBC’s broadcast revenue actually grew 11.4 percent, thanks to strong TV ratings and thus, solid ad sales. Flipping through channels on the small-screen, Cable revenue rose 4 percent year over year.
NBCU’s smaller Theme Parks segment saw sales jump a whopping 57.5 percent, thanks in large part to new attractions opening in both Hollywood and Japan.
The core Cable Communications business for Comcast is still its bigger leg by far. There, revenue rose 6.7 percent, primarily driven by increases in high-speed Internet, video and business services. Comcast gained 269,000 customers during the 90-day period, with 53,000 new video subscribers. That latter stat is actually the best result for the first quarter in nine years.
Wall Street had forecast earnings per share (EPS) of 79 cents on $18.64 billion, per a Yahoo Finance roundup. The NBCU parent company clocked in with $18.79 billion in sales for 87 cents in adjusted EPS. Sans adjustments, one could have subtracted 3 pennies from earnings.
Net income was $2.224 billion, up from last year’s $2.141 billion. That makes Comcast Corporation Chairman and CEO Brian Roberts quite happy.
“I’m incredibly pleased with our first quarter results and the strength and momentum we are seeing across our businesses. Our performance at Comcast Cable was outstanding,” the top executive said. “We delivered our best first quarter Internet results in four years.”
“NBCUniversal also had a terrific quarter, reporting double-digit operating cash flow growth,” Roberts continued. “Our teams are executing extremely well and I am excited about the opportunities ahead for Comcast NBCUniversal.”
CMCSA stock closed Tuesday at $61.05, up a nickel per share for the day. After normal trading hours, a report broke stating that the company is in talks to buy DreamWorks Animation for $3 billion. The news lifted share prices for both companies in after-hours trading.
Company brass will hold a conference call for media analysts at 8:30 a.m. ET to discuss the financials in greater depth. Surely, the proposed DWA deal will come up a few times as well.