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Comcast Tops Q1 Earnings Mark, Misses on Revenue as COVID-19

Comcast beat earnings estimates however missed on income within the first quarter of 2020, feeling the preliminary affect of the pandemic-forced closure of theme parks.

With film theaters additionally shutting down because of the coronavirus, Universal’s field workplace ticket gross sales struggled. That division’s income additionally confronted a troublesome comparability to year-ago hits like “How to Train Your Dragon: The Hidden World.”

Wall Street forecast earnings per share (EPS) of 68 cents on $26.75 billion in income, in response to a consensus estimate compiled by Yahoo Finance. The NBCUniversal mum or dad firm really reported EPS of 71 cents on $26.61 billion in income.

Comcast’s web revenue fell 39.6% to $2.1 billion. With changes, web revenue was $3.Three billion, which remains to be a 6.1% lower.

Comcast elevated its first-quarter income for its largest enterprise, cable communications, which rose +4.5% to $14.9 billion, “driven primarily by increases in high-speed internet, business services and wireless revenue,” in response to monetary paperwork.

Also up from the comparable 2019 quarter was broadcast tv income (+8.8.%), due to content material licensing and distribution gross sales. Cable TV was down only a hair.

Revenue from theme parks plummeted 31.9% following the closures of Universal Studios Japan in late February and Universal Orlando and Universal Studios Hollywood in mid-March attributable to COVID-19.

The filmed leisure unit noticed a lower of 22.5%, with theatrical income down 28.8% from 2019’s Q1. That year-ago quarter included the releases of “How to Train Your Dragon: The Hidden World,” “Us” and “Glass.” Taking on these movies this 12 months have been “1917,” “Dolittle” and “The Invisible Man.” With the closure of film theaters in mid-March because of the pandemic, the 2020 releases by no means actually stood an opportunity.

All informed, NBCUniversal’s income was down 7% from final 12 months.

Sky income was down 3.7% for Comcast on a comparable foundation.

Comcast misplaced 409,000 web video clients in Q1 of 2020. It made up for that cord-cutting elsewhere, with complete Comcast clients rising by 371,000, the perfect first-quarter outcome on file for the corporate.

Included in Comcast’s monetary launch was this assertion concerning predictions for its Q2 amid the continued coronavirus pandemic:

“Our Cable Communications results, while strong in the first quarter 2020, will be negatively affected in the second quarter by the significant deterioration in domestic economic conditions in recent weeks and by the costs associated with our support of customer connectivity as the population increasingly works and learns remotely from home. NBCUniversal and Sky results also will be negatively impacted to a greater extent in the second quarter 2020. As a result, we expect the impacts of COVID-19 to increase in significance in the second quarter 2020 and to have a material adverse impact on our consolidated results of operations over the near-to-medium term.”

NBCUniversal launched its new streaming service Peacock completely for Comcast subscribers on April 15, forward of the platform’s July nationwide rollout.

“Society is being challenged like never before in our lifetime, and I couldn’t be prouder of our company, our employees, and our leadership team across Comcast Cable, NBCUniversal, and Sky,” Brian L. Roberts, chairman and chief govt officer of Comcast Corporation, stated in a press release ready to accompany the financials. “Now greater than ever the world wants to remain related, and we’re extraordinarily happy that our investments in our community proceed to repay as we’re dealing with vital will increase in site visitors and assembly our clients’ wants. While elements of our enterprise have been extra impacted by COVID-19 than others, we have now continued to innovate. We are distributing our content material in new methods, as evidenced by the current launch of Peacock on X1 and Flex. We’ve additionally taken decisive motion, having moved over 95% of our U.S. call-center…

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