NBCUniversal Revenue Sinks 25% In Q2, With Big Ad Declines For Cable, Broadcast

Revenue for Comcast’s NBCUniversal sank a massive 25.4% to $6.1 billion in the second quarter due to major declines in TV advertising -- largely due to COVID-19 disruptions that began in early March.

Overall cable network revenues were down 15% to $2.5 billion, with advertising collapsing by 27%. Distribution revenue sank 14.8%, due to its regional sports networks (RSNs) airing fewer games planned by professional sports leagues.

While total broadcast revenues dropped by just 1.6% to $2.4 billion, its advertising revenues -- similar to cable -- were also sharply down 28%.

One positive for NBCU was the strong growth of 9% in retransmission/distribution revenue for its broadcast TV stations and networks.

In addition, NBCU's recently launched Peacock premium streaming service signed on 10 million subscribers after two weeks of operation.

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Universal Pictures' film revenue was down 18% to $1.2 billion -- largely as a result of the closing of movie theaters. Theme parks were down 94% to $87 million.

NBCUniversal recently announced a deal with AMC Theatres in the U.S. that allows Universal to release titles across premium streaming platforms after a 17-day exclusive theatrical window -- much faster than the traditional 90-day exclusive period.

Local cable advertising was down 29.5% year-over-year to $428 million. 

Overall, Comcast Corp. posted a big 12% decline in revenues to $23.7 billion -- slightly better than expected, according to analysts. Cash flow (earnings before interest, taxes, depreciation and amortization) was also lower -- losing 9% -- to $7.9 billion.

Comcast Cable Communications’ biggest positive was its soaring broadband business, which added 340,000 subscribers (to total 29.4 million subscribers).

At the same time, Comcast continues to lose video subscribers -- 478,000, a bit lower than anticipated, to 20.4 million total subscribers. 

Video is now losing subscribers at a 5.9% annual rate, according to MoffettNathanson Research, up from 4.7% annually from a year ago. Video revenue was down 3.2% to $5.4 billion.

Residential broadband revenue was 7.2% higher to $5.0 billion.

Comcast’s European Sky TV network witnessed revenues down 16%, with advertising sinking 41%. Sports subscription revenue was also a key factor in Sky’s revenue decline.

Comcast stock was up 2.4% to $44.16 in mid-day Thursday trading.

 
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