Comcast earnings highlight NBCUniversal strength ahead of split

Comcast’s second-quarter results on Thursday showcased strength at NBCUniversal — particularly in its TV and film units — as the company prepares to split its media and broadband businesses apart.

NBCUniversal’s streaming service, Peacock, hit profitability during the quarter for the first time, Comcast said, giving the media business a lift. The streaming service also benefited from live sports including the FIFA World Cup and NBA postseason that brought in new subscribers.

Revenue in the company’s content and experiences division, which includes media unit NBCUniversal, rose almost 23% year over year.

Meanwhile, it was a different story with the traditional cable and connectivity business. The company said that its shifted strategy for the broadband business is “gaining traction” following years of significant competition and pressure due to the rise of alternatives like 5G providers.

But Comcast once again reported broadband customer losses for the period, and revenue for the connectivity and platforms segment notched down as its lower pricing plans and promotions took hold.

The diverging storylines for broadband and media come weeks after Comcast said it would divide the two businesses into separate publicly traded companies. In Thursday’s release co-CEOs Brian Roberts and Mike Cavanagh called the split “an important step toward creating two focused companies with the financial strength and flexibility to pursue their respective growth strategies.”

During Thursday’s call with investors, Roberts addressed the separation immediately. He said that, following weeks of discussions with various employees and people inside and outside of the company, “I feel more positive and energized today than I was on the day we announced.”

“This structure gives both companies the freedom to pursue the priorities that matter most to their futures,” said Roberts. “There’s a lot of work ahead, and we’re moving with real urgency.”

Cavanagh said on Thursday that work on the separation began immediately after the announcement was made, with the goal of it being completed in about one year.