Comcast’s (CMCSA) NBCUniversal segment, which has been generating strong revenue growth in the past, disappointed investors in Q1 2019. The company earned an incremental $1.6 billion of revenue from the broadcast of 2018 PyeongChang Olympics and the NFL’s Super Bowl LII in the year-ago quarter, which led to a revenue decline of 12.5% YoY to $8.3 billion in the segment.
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While the cable network’s revenue declined 9.2% YoY in Q1 2019 due to lower distribution, decreases in advertising, content licensing and other revenues, the revenue of the broadcast TV business fell more than 29% YoY, reflecting lower advertising revenue associated with the broadcasts of the PyeongChang Olympics and the NFL’s Super Bowl LII in the first quarter of 2018. Excluding the impact of Olympics, revenues grew 3.2% YoY in cable networks and increased 7.1% in the TV business in Q1 2019.
Filmed entertainment revenue increased 7.4% YoY in Q1 2019 driven by increased theatrical, content licensing, and home entertainment revenue. The strong performance of films like How to Train Your Dragon: The Hidden World and Us led to growth in theatrical revenues in Q1 2019 as compared to the performance of Fifty Shades Freed in the last year quarter. Dr. Seuss’s The Grinch added to the revenue growth in the Home Entertainment business in Q1 2019.
The theme parks business was flat at $1.3 billion in Q1 2019, reflecting the timing of spring holidays. Comcast plans to open Jurassic World in Hollywood and a new Harry Potter rollercoaster and the first phase of the Endless Summer Resort in Orlando towards the end of the second quarter. Comcast is also planning to bring Nintendo to its parks in Japan in 2020 and a new Beijing park in 2021.
Like Comcast, media company Walt Disney (DIS) has also been investing in its theme park. SeaWorld Entertainment (SEAS) also focuses on growing its theme parks to attract more crowds and grow its top-line growth.