Thursday, April 30, 2020

Comcast struggling as all sports and events get cancelled

Comcast posted revenue of $26.6 billion for the first quarter, a 0.9 percent decline year over year, and net income of $2.1 billion, a 40 percent drop from the year-ago quarter.
Basically, there was less for viewers to watch, and that meant less programming for Comcast to run ads against. The Q1 results reflect “audience ratings declines and reduced advertiser spending resulting from the postponement of sports events due to COVID-19, partially offset by higher pricing,” Comcast said in a statement.
Comcast | Crunchbase

The company’s NBCUniversal segment struggled the most during the first quarter, with a 7 percent revenue decline to $7.7 billion. Comcast said last week that many of the shows it had planned for its new Peacock streaming service wouldn’t be ready until next year.
Comcast’s ad revenue for the quarter was down 2.2 percent. “COVID-19 began to impact cable advertising at the end of the first quarter, and we expect advertising to be down significantly in the second quarter,” Cavanagh said during the earnings call.
Many large companies that posted first quarter earnings this week reported lower advertising revenues due to the pandemic, although perhaps not all are feeling it as acutely as Comcast — at least, not yet. Alphabet parent Google said on Tuesday that it “experienced a significant slowdown in ad revenues” last month, but its revenue was up 13 percent. Facebook also said it saw ad revenues slow but still saw profit up 102 percent from the year-ago quarter.

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