Comcast Corporation (NASDAQ:CMCSA, ETR:CTP2) has signalled its cable networks could be spun off after reporting a boost for its Peacock streaming service over the last quarter on this summer’s Olympics in Paris.
Comcast president Mike Cavanagh said on Thursday that the networks, including CNBC and MSNBC, could be spun off into a separate company.
This would come against a backdrop of declining traditional television viewership across the industry, with the potential plans said not to include Peacock or Comcast's NBC broadcast network.
"We would consider partnerships in streaming" though, Cavanagh said, after results earlier in the day showed the Olympics had fuelled subscriber growth in the third quarter.
Average daily viewers during the games jumped by 82% to 31 million against the 2021 Olympics, generating $1.9 billion in advertising revenue, Comcast had reported.
This aided a 29% increase in subscribers to Peacock, where the games were exclusively streamed, to 36 million year over year, driving an 82% increase in revenue to $1.5 billion.
“We delivered an incredibly successful Paris summer Olympics,” chief executive Brian Roberts commented, adding it “contributed to NBC's number one ranking for the 2023-2024 season”.
Overall, revenue climbed by 6.5% to $32.07 billion during the three months to September, overshadowing LSEG-polled analysts' estimates for $31.66 billion.
Adjusted earnings per share also beat expectations, having climbed by 3.3% to $1.12 and ahead of estimates for $1.06.
Blockbuster releases were said to have driven figures too, including ‘Despicable Me 4’, which grossed nearly $1 billion in worldwide box office, and ‘Twisters’.
Adjusted business services profit also climbed over the period, alongside in Comcast’s connectivity and platforms wing, while overall content and experiences figures dropped.
“Overall, it was a very active and successful quarter, and I couldn't be more pleased with how our team is executing and positioning our company for long-term growth,” Roberts said.
Shares gained 3.2% to reach $43.59 on Wednesday.