Comcast on Thursday beat quarterly revenue estimates, driven by better-than-expected subscriber growth for its Peacock streaming service and strong attendance at its theme parks.
However, the company’s stock price fell more than 5%.
Peacock added 3 million subscribers in the first quarter, bringing its total to 34 million, beating Visible Alpha’s estimate of 2.32 million. That’s thanks to increased investment that Comcast hopes will help it better compete with Netflix and Disney+.
Peacock became the first streaming service to broadcast exclusive NFL playoff games in January, which was one of the quarter’s biggest growth drivers.
It also benefited from the 2023 hit “Oppenheimer,” which was released on Peacock in February and became one of the most-watched films in Peacock’s history.
The streaming service’s revenue increased about 54% year-over-year, with Comcast reporting total revenue of $30.06 billion.
That beat analysts’ expectations of $29.81 billion, according to LSEG data.
The broadband market continues to be a challenge for Comcast, with intense competition from carriers such as T-Mobile and Verizon, which are gaining market share.
Comcast said in March that it faces competitive pressure from the lower end of the market, where customers prioritize speed and seek lower-priced packages.
Analysts expect broadband losses to increase next quarter due to the loss of the Affordable Connectivity Program (ACP), an internet subsidy program that runs out of funding this month.
Comcast lost 65,000 broadband customers in the January-March period, compared to expectations of losing 49,000 customers, according to FactSet.
The company’s theme park business continued to be profitable with openings such as Super Nintendo World in Japan.
The company is betting on Epic Universe, the newest theme park at Universal Orlando Resort in Florida, scheduled to open by summer 2025, which it says will continue to drive growth in the sector.
