Comcast Stock Soars as Q2 Beats Expectations, Clocks Strong Growth in Peacock Subscribers

Comcast Corp (NASDAQ: CMCSA) reported a second-quarter FY23 revenue growth of 1.7% year-on-year to $30.51 billion, beating the consensus of $30.15 billion. Adjusted EPS of $1.13 beat the consensus of $0.97. 

Segments: Revenue for Connectivity & Platforms grew by 0.1% Y/Y to $20.36 billion. Broadband revenue grew 4.4% Y/Y to $6.11 billion.

Customer Relationships decreased by 228,000 to 52.3 million. 

Broadband customer net losses were 19,000, and total video customer net losses were 543,000. The company's Connectivity & Platforms added 316,000 wireless lines.

Revenue from Media increased by 0.1% Y/Y to $6.2 billion, due to higher international networks and domestic distribution revenue, offset by lower domestic advertising revenue, and Studios decreased by 0.9% Y/Y to $3.09 billion, due to higher theatrical revenue, driven by recent releases, including The Super Mario Bros. Movie and Fast X, offset by lower content licensing revenue. 

Peacock's paid subscribers in the U.S. nearly doubled Y/Y to 24 million. Peacock's revenue grew by 85% to $820 million.

Theme Parks' revenue increased by 22.4% to $2.21 billion due to higher revenue at its international theme parks due to the pandemic recovery.

Adjusted EBITDA margin of Connectivity & Platforms grew by 170 bps to 41%.

Comcast generated $3.42 billion in free cash flow and held $7.15 billion in cash and equivalents.

Connectivity & Platforms' capital expenditures were $2.1 billion, up 11.4% Y/Y. Content & Experiences' capital expenditures increased by 74.1% to $809 million, reflecting increased investment in constructing the Epic Universe theme park in Orlando.

Brian L. Roberts, Chairman and Chief Executive Officer of Comcast said, "This quarter contained a number of highlights and notable achievements. We not only continued to deliver solid revenue growth in our connectivity businesses but also expanded our Adjusted EBITDA margin at Connectivity & Platforms. We generated the best quarterly Adjusted EBITDA ever at Theme Parks, had the second-highest grossing animated film of all time in worldwide box office revenue with Super Mario Bros., and nearly doubled paid Peacock subscribers year-over-year."

Price Action: CMCSA shares traded higher by 7.64% at $46.19 on the last check Thursday.

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