Comcast beats Q3 expectations as wireless growth offsets broadband losses

Investing.com -- Comcast Corporation (NASDAQ: CMCSA) reported third-quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $1.12, beating estimates by $0.02, while revenue reached $31.2 billion, surpassing the $30.7 billion consensus.

The company’s stock rose 1.5% in premarket trading following the announcement.

The telecommunications giant posted a 2.7% year-over-year revenue decline, reflecting a challenging comparison to the prior-year period that included the Paris Olympics. Adjusted EBITDA remained relatively stable at $9.7 billion, down just 0.7% from the previous year.

Comcast’s wireless business emerged as a standout performer, adding a record 414,000 wireless lines during the quarter. Domestic wireless revenue jumped 14% to $1.25 billion, helping offset challenges in the company’s traditional broadband business, which lost 104,000 customers.

"We’re making steady progress as we reposition the company for long-term, sustained growth," said Brian L. Roberts, Chairman and CEO of Comcast. "In Connectivity, we’re taking deliberate steps to strengthen our broadband foundation and accelerate wireless as a meaningful growth engine."

Theme Parks delivered impressive results with revenue increasing 18.7% to $2.7 billion, driven by the successful opening of Epic Universe in Orlando in May. The Studios segment saw revenue rise 6.1% to $3 billion, bolstered by the successful release of "Jurassic World Rebirth," which has grossed nearly $900 million worldwide.

Business Services continued its solid performance with connectivity revenue increasing 6.2% to $2.6 billion and EBITDA growing 4.5% to $1.5 billion.

The company generated $4.9 billion in free cash flow during the quarter, a 45.2% increase from the previous year, and returned $2.8 billion to shareholders through dividends and share repurchases.

Comcast’s Peacock streaming service showed improvement, with its EBITDA loss narrowing to $217 million from $436 million in the prior year period.

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