Comcast stock Archives - theprimarymarket.com

Comcast And Disney Confident Despite Peak Losses Ahead

Tommy R — Sat, 01 Apr 2023 07:42:00 +0000

Comcast and Disney are confident that their financial performances will improve after spending on their streaming businesses hit new heights in 2022 with peak spending expected to be reached this year. The streaming giants expect that once this peak is hit, costs will decline while revenue stabilizes.

In 2022, Comcast’s streaming service Peacock incurred an operating loss of $2.5 billion; a 47% increase from the previous year. Comcast president Michael Cavanagh told investors during an earnings call in January that he expects losses to peak at around $3 billion this year after which they will improve.

Disney’s direct-to-consumer division suffered a loss of over $4 billion for the 2022 fiscal year ending October 1, having spent over $33 billion on content during the course of the year. Disney’s CFO Christine McCarthy claimed during a company earnings call in November that “peak losses are now behind us.”

Reduced losses across the industry are expected to be a result of cost-cutting, with the likes of Paramount Global CEO Bob Bakish stating that his company is set to embrace cost-cutting. This comes after Paramount reported a loss of roughly $1.82 billion in 2022.

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Comcast Fails to Add New Subscribers for the First Time Ever

Lee K — Sat, 30 Jul 2022 06:11:00 +0000

Telecommunications giant Comcast managed to beat the Wall Street estimates in the second quarter in revenue and earnings. However, the fact that the company also failed to add internet subscribers in the same period seems to have overshadowed these accomplishments.

Comcast reported that its subscriber numbers have been steady and remained at 32.2 million subscribers as in Q1. This is the first time ever that the company didn’t add new subscribers. Also, it is only the second time that there less than 100,00 new customers joined their user network. The only previous time this happened was during the 2008 financial crisis when only 65,000 new subscribers joined in.

The investors reacted poorly after hearing the news, with Comcast’s stock dropping down almost 10% since the market opened on Thursday morning. The company’s shares closed at $43.37 on Wednesday and were trading as low as $39.16 at one point.

The company isn’t panicking in the same way the investors are when it comes to the lack of subscriber gains. According to CEO Brian Roberts, this situation is a result of a “unique and evolving macroeconomic environment” the company expects to overcome soon. Also, there is optimism that the back-to-school movement will positively influence the growth of subscribers.

Comcast wrapped up the second quarter with $30.02 billion, compared to estimates of $29.68 billion. It had adjusted earnings per share of $1.01 versus 92 cents expected.