Olympics, Healthy Ad Revenue Contribute to NBCU’s Strong Q3

PHILADELPHIA: For the quarter ended September 30, NBCUniversal’s revenue increased 28.3 percent to $9.2 billion, while operating cash flow was up 31.5 percent to $2.1 billion.

Cable networks revenue increased 22 percent to $2.9 billion in Q3, with higher distribution, advertising and content licensing and other revenue. Distribution revenue increased 27.3 percent, driven by the broadcast of the 2016 Rio Olympics—partially offset by a decline in subscribers at the cable networks. Advertising revenue gained 15.9 percent, thanks in large part to the Olympics. Content licensing and other revenue increased 9.8 percent. Excluding $432 million of revenue generated by the broadcast of the Rio Games, cable networks revenue increased 4.1 percent. Operating cash flow increased 7 percent to $893 million, with higher revenue being partially offset by an increase in programming and production costs from the Olympics, as well as increases in sports programming rights costs.

Broadcast television revenue was up 56.6 percent to $3.1 billion, with higher advertising and distribution and other revenue, partially offset by a decline in content licensing revenue. Ad revenue increased 92.4 percent, primarily driven by the broadcast of the Olympics. Distribution and other revenue increased 77.5 percent, due again to the Olympics, as well as higher retransmission consent fees. Content licensing revenue decreased 32 percent, attributed to the timing of content provided under licensing agreements. Excluding $1.2 billion of revenue associated with the broadcast of the 2016 Games, broadcast television revenue decreased 3.6 percent. Operating cash flow increased to $378 million, with higher revenue being partially offset by increased programming and production costs associated with the Olympics broadcast.

Filmed entertainment revenue declined 7.9 percent to $1.8 billion, and included revenue attributable to DreamWorks from its acquisition. Theme parks revenue was up 60.6 percent to $1.4 billion in the quarter.

Overall at Comcast, consolidated revenue for the third quarter increased 14.2 percent to $21.3 billion, including $1.6 billion of revenue generated by the broadcast of the Olympics, of which $1.2 billion is related to advertising revenue. Excluding the Olympics, consolidated revenue increased 5.5 percent. Consolidated operating income increased 11 percent to $4.4 billion. Consolidated operating cash flow was up 10.5 percent to $6.8 billion.

Brian L. Roberts, the chairman and CEO of Comcast Corporation, said, “I’m pleased to report that our businesses generated double-digit revenue and operating cash flow growth for the third quarter of 2016. Cable delivered solid operating cash flow growth coupled with great customer metrics, and has now added 170,000 video subscribers over the past 12 months. The Rio Olympics were the most profitable and successful games in our history, and demonstrated our ability to deliver an unparalleled entertainment experience through NBCUniversal together with Comcast Cable and the X1 platform. NBCUniversal reported operating cash flow growth of over 30 percent, benefiting from the Olympics, continued growth at our theme parks, and the theatrical success of The Secret Life of Pets this quarter. I’m proud of our consistent execution and excited about the opportunities ahead for Comcast NBCUniversal.”