PHILADELPHIA, PA — Comcast Corp. (NASDAQ: CMCSA) reported lower second-quarter earnings as declines in its residential broadband and video businesses outweighed gains in wireless, streaming and studios, underscoring the company’s ongoing shift toward mobile connectivity and media while it prepares to separate NBCUniversal and Sky into an independent company.
Revenue for the quarter ended June 30 declined 1.2% to $29.9 billion, while net income attributable to Comcast fell 68.3% to $3.5 billion, largely because the prior-year period included a $9.4 billion gain from the sale of the company’s Hulu interest. Adjusted earnings per share declined 16.7% to $1.04, while free cash flow increased 2.3% to $4.6 billion.
On a pro forma basis, reflecting the completed Versant separation and the sale of Sky’s Germany operations, revenue increased 4.7%, although adjusted EBITDA declined 5.3%.
The connectivity business continued to face pressure. Residential broadband customers declined by 167,000 during the quarter, while video customers fell by 280,000. Those losses were partially offset by a record 448,000 net wireless line additions, pushing Comcast’s total wireless lines above 10.2 million. Business Services connectivity revenue increased 3.7% to $2.7 billion.
Content and entertainment operations provided stronger results. Peacock reached quarterly profitability for the first time, generating $189 million in adjusted EBITDA, while paid subscribers increased by 2 million to 48 million. Media revenue benefited from the FIFA World Cup and NBA programming, and the studio division posted higher theatrical revenue driven by releases including The Super Mario Galaxy Movie, Obsession and the international distribution of Michael.
Theme Parks revenue increased 2.7%, supported by continued attendance at Epic Universe in Orlando, though adjusted EBITDA declined 5.1% as higher operating expenses outpaced revenue growth.
The company returned $2.1 billion to shareholders during the quarter through $1.2 billion in dividends and $900 million in share repurchases. Comcast also paused its share repurchase program as it advances plans to separate NBCUniversal and Sky into a standalone publicly traded company.
Co-CEOs Brian L. Roberts and Mike Cavanagh pointed to improving broadband trends, record wireless growth and Peacock’s profitability as evidence the company’s strategy is gaining traction while it restructures into two independent businesses.
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