Comcast Q4 Earnings Beat Estimates: Peacock Subscribers Surge 29%, Dividend Raised, $15 Billion Buyback Approved

Comcast Corporation (NASDAQ: CMCSA) reported strong fourth-quarter results, with earnings and revenue growth driven by its connectivity and media segments. The company's streaming service, Peacock, saw a significant surge in subscribers, while the board approved a dividend increase and a new share repurchase authorization.

Peacock Subscribers Surge 29%

Peacock, Comcast's streaming service, experienced a 29% increase in subscribers, from 31 million to 36 million, in the fourth quarter of 2024. This growth was fueled by a diverse slate of sports and entertainment content, including the Paris Olympics. The service's revenue grew by 28% year-over-year to $1.3 billion, and adjusted EBITDA losses improved by nearly $1 billion for the full year.



Dividend Raised and Share Repurchase Authorization Approved

Comcast's board of directors approved a 6.5% increase in the company's annual dividend, from $1.24 to $1.32 per share. This marks the 17th consecutive annual increase in the dividend. Additionally, the board approved a new $15 billion share repurchase authorization, effective January 31, 2025. This authorization has no expiration date and will be used to repurchase shares in the open market or private transactions, subject to market and other conditions.



Strong Performance Across Segments

Comcast's connectivity and platforms segment generated significant growth, with connectivity revenue increasing by 5.7% to $45.1 billion for the full year. This growth was driven by domestic broadband, domestic wireless, international connectivity, and business services connectivity. The media segment also performed well, with revenue growing by 3.5% to $7.22 billion in the fourth quarter, primarily due to higher domestic advertising and domestic distribution revenue.



In conclusion, Comcast's strong fourth-quarter results, driven by the surge in Peacock subscribers and the company's consistent profitability and cash flow generation, position it well for future growth. The board's approval of a dividend increase and a new share repurchase authorization further demonstrates its confidence in the company's path forward. As an investor, it's essential to stay informed about Comcast's strategic moves and the broader trends in the media and technology industries to make well-informed decisions.