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Expectations for Comcast’s NBCUniversal Segment in Q4

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Comcast’s fourth-quarter expectations

Comcast (CMCSA) is scheduled to report its earnings results for the fourth quarter of 2018 before the market opens on January 23. The company expects its earnings to beat estimates, as it’s been doing for the last 11 consecutive quarters. Strong top line growth backed by the company’s continued focus on its Cable segment’s high-speed Internet business has led to consistent increases in its earnings.

The broadband market is gaining popularity, and more and more consumers are adopting high-speed data plans. Like Comcast, Charter (CHTR) is focusing on its high-speed Internet business to stay afloat in the rapidly changing media landscape.

The improved performance of NBCUniversal, which owns film studios, theme parks, NBC News, and CNBC, is also boosting Comcast’s earnings growth. Increased theatrical and content licensing revenue is also fueling the company’s earnings growth momentum.

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NBCUniversal’s revenue growth

Strong content licensing and increased affiliate revenue and advertising are expected to boost NBCUniversal’s cable network and TV revenue. In the third quarter of 2018, NBCUniversal posted revenue growth of nearly 8.1% year-over-year driven by revenue rises in its cable network, broadcast TV, and filmed entertainment businesses partially offset by a revenue fall its theme parks business. 

NBC managed to rank first in total viewership for the first time in 16 years in the quarter, and it also ranked first among adults aged 18–49 for the fifth consecutive year.

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