Updated version 2 - Comcast incurred over 1 billion dollars in restructuring costs in the fourth quarter

Supplemented with details of the conference call

Reuters, October 22 - Comcast (stock code: CMCSA.O) announced on Thursday that, due to a reorganization of its corporate structure, it will take more than $1 billion in charges in the fourth quarter, as part of its preparations to spin off its NBCUniversal business by mid-2027.

Intense competition has eroded its core business, resulting in a higher-than-expected loss of broadband users in the third quarter, while NBCUniversal benefited from growth in box office and streaming business.

The company’s shares rose 3% in early trading.

Details are as follows:

• The company said broadband subscribers fell by 144,000 in the third quarter, compared with analysts’ expectations in a FactSet survey for a net drop of 116,800, and a year-ago decline of 91,000

• As part of the NBCUniversal spin-off plan, Comcast’s film studios, theme parks, and its Peacock streaming service will be separated from the company

• According to reports, Comcast is (link) planning large-scale layoffs to restructure its connectivity business

• “The Odyssey” was a major highlight for Universal Pictures, not only becoming the highest-grossing movie in the company’s history but also driving an 18.6% increase in the division’s pre-tax profit

• Boosted by the soccer World Cup programming and the Peacock show “Love Island USA,” media segment revenue rose 13% in the third quarter to $5.36 billion

• Peacock reported pre-tax profit of $261 million for the quarter, compared to a loss of $217 million a year earlier

• NBCUniversal’s theme park business in Orlando saw weaker demand, while geopolitical tensions continued to impede Chinese tourists from visiting its theme park in Japan, a key market

• According to data compiled by LSEG, the business division’s revenue fell 4.4% to $2.60 billion, missing analysts’ average expectation of $2.71 billion

• Comcast reported adjusted earnings per share of $1.07, above analysts’ average estimate of 98 cents

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