The pandemic-influenced selling months of May, April, and June brought intense pressure to Comcast's (NASDAQ:CMCS.A) NBC Universal division.
The unit, which is home to Universal Studios theme parks, the Comcast cable broadcasting service, and the studios that churn out film releases, endured a 25% revenue decline as COVID-19 shelter-in-place mandates pressured each of these businesses. The cable segment saw sales fall 15%, while revenue dropped 18% at the film division and plunged by 94% in the theme park unit.
The prospects are much brighter for these businesses going forward, with parks reopening in recent weeks. Comcast is also encouraged by early demand for its Peacock direct-to-consumer streaming platform. Finally, management highlighted its new deal with AMC Entertainment Holdings that should help film releases earn more revenue while the movie industry struggles under historically weak audience traffic.
Comcast's wider results were more impressive thanks to rising demand for internet and wireless network services. It's that bigger picture that has management hopeful that a full rebound isn't too far away.
"Based on our results and the many organic growth opportunities we have across our company," CEO Brian Roberts said in a press release, "I am confident in our ability to continue to successfully navigate the impact of COVID-19."