Wicked' Fuels Strong Comcast Revenue, Cushions Broadband Subscriber Losses

Comcast Corporation (NASDAQ: CMCSA) reported strong revenue growth in the fourth quarter of 2024, driven in part by the success of the musical "Wicked" and its studios' content. The company's revenue increased by 2.3% year-over-year to $31.25 billion, while net income attributable to Comcast grew by 7.8% to $3.26 billion. Adjusted EBITDA was consistent with the prior year period, including severance and other expenses, and increased 3.2% for the full year.

One of the key drivers of Comcast's revenue growth was the success of "Wicked," which grossed over $1 billion in worldwide box office in its debut quarter. The musical's success contributed to the Studios segment's 85% EBITDA growth during the quarter. Additionally, the strong performance of "Wicked" helped validate Comcast's content investment strategy.

Comcast's Connectivity segment maintained healthy margins of 38.3% and generated $11.5 billion in revenue. The company's wireless business added 319,000 mobile lines in the third quarter, increasing its wireless customer base to 7.5 million. Peacock, Comcast's streaming service, saw its revenue surge to $1.3 billion in the fourth quarter, marking a 28% increase year-over-year. Paid subscribers grew by 29% to 36 million, and EBITDA losses improved by $1 billion during the same period.

Despite the strong revenue growth, Comcast faced challenges in its broadband business. The company lost 65,000 broadband subscribers in the fourth quarter, following a loss of 34,000 subscribers in the fourth quarter of 2023. Comcast President Mike Cavanaugh attributed the subscriber losses to intense competition, particularly in the market for price-conscious consumers. The company expects to grow healthy broadband revenue growth through ARPU, which is expected to remain well within its historical range of 3-4% growth.

Comcast's Theme Parks segment generated its highest Adjusted EBITDA on record for a fourth quarter and a full year. Adjusted EBITDA increased 11.6% to $872 million in the fourth quarter and 24.7% to $3.3 billion for the full year.

In conclusion, Comcast's strong revenue growth, driven in part by the success of "Wicked" and its studios' content, cushioned the impact of broadband subscriber losses. The company's diverse portfolio of businesses, including Connectivity, Wireless, Peacock, and Theme Parks, contributed to its overall success. As Comcast continues to invest in high-quality content and innovative technologies, it is well-positioned to maintain its competitive edge in the streaming market and drive long-term growth.