#Comcast #Mulls #Spinning #Cable #Business
Key takeaways
- Comcast said Thursday in its third-quarter earnings call that it is considering spinning off its cable network portfolio into a separate company.
- Comcast President Mike Kavanagh said on the call that the separation would not include broadcast network NBC or streaming platform Peacock.
- The company, which suffers from cable outages, also announced mixed results for the third quarter, including the loss of 365,000 cable customers on an annual basis.
Comcast (CMCSA) said Thursday in its third-quarter earnings call that it is considering spinning off its cable network portfolio into a separate company.
Comcast President Mike Kavanagh said on the call that the separation would not include broadcast network NBC or streaming platform Peacock.
“Like many of our media peers, we are seeing the effects of the transformation in our video business and considering the best path forward for these assets,” Kavanagh said, according to a transcript provided by AlphaSense.
“To this end, we are now exploring whether creating a new, well-capitalized company owned by our shareholders and consisting of our strong portfolio of cable networks would position them to capitalize on opportunities in the changing media landscape and create value for our shareholders,” Kavanagh added.
Kavanagh also said Comcast is considering streaming partnerships.
Comcast lost 365,000 cable customers in the third quarter compared to the previous year
The company, which has been struggling with rising cord outages, also reported mixed third-quarter results and a loss of 365,000 cable TV customers year over year.
Buoyed by its coverage of the Paris Summer Olympics, Comcast’s quarterly revenue rose 6.5% to $32.07 billion, beating Visible Alpha’s consensus forecast, but earnings per share (EPS) of $0.94 missed estimates.
Comcast shares were up about 2% Thursday morning but have fallen by about the same amount this year.
#Comcast #Mulls #Spinning #Cable #Business
