Comcast Revenue Increase 6.5%, Spinoff Explored For Cable Net

As the linear TV business continues to erode, Comcast is considering spinning off its cable network portfolio into a standalone company, which includes Oxygen True Crime, Bravo, MSNBC, CNBC, USA Network, E!, Syfy, Universal Kids and Spanish-language channel Universo.

“Like many of our peers in media, we are experiencing the effects of the transition in our video businesses, and have been studying the best path forward for these assets,” Comcast president Mike Cavanagh told analysts on Thursday during the company’s third quarter earnings call. 

“To that end, we are now exploring whether creating a new well capitalized company owned by our shareholders and comprised of our strong portfolio of cable networks would position them to take advantage of opportunities in the changing media landscape and create value for our shareholders. We are not ready to talk about any specifics yet, but we’ll be back to you as and when we reach firm conclusions.”

The Wrap also reports Cavanagh added that it would consider streaming partnerships to help grow Peacock.

For the quarter ended Sept. 30, net income was down 10% to $3.63 billion, or 94 cents a share, compared with $4.05 billion, or 98 cents a share, a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, fell 2% to roughly $9.74 billion. 

The company’s revenue rose 6.5% to $32.07 billion compared to the same period last year. Overall revenue was boosted by the Summer Olympics in Paris, which NBCUniversal exclusively broadcast in the U.S., and domestic broadband revenue — despite continued slowing customer growth. 

Revenue for the media segment – mainly comprised of NBCUniversal – was up nearly 37% to $8.23 billion, largely due to the Olympics. Excluding the Summer Games, revenue was up almost 5%. 

The Summer Olympics in Paris proved to be a success for NBCUniversal, as it attracted an average daily viewership of 31 million people across NBC’s TV and streaming platforms and generated a record $1.2 billion in advertising revenue, CNBC previously reported.