Comcast Execs Talk Cable SpinCo & New NBCUniversal As Wall Street Presses For Details​on January 30, 2025 at 4:21 pm

Comcast executives spent much of a post-earnings conference call on the biggest news of the last few months, an upcoming cable spinoff with President Mike Cavanagh calling a new company comprised of most NBCUniversal cable networks as “a free-standing, strong collection of businesses with lots of cash flow generation capability for many years to come, […]Comcast executives spent much of a post-earnings conference call on the biggest news of the last few months, an upcoming cable spinoff with President Mike Cavanagh calling a new company comprised of most NBCUniversal cable networks as “a free-standing, strong collection of businesses with lots of cash flow generation capability for many years to come,   

Comcast executives spent much of a post-earnings conference call on the biggest news of the last few months, an upcoming cable spinoff with President Mike Cavanagh calling a new company comprised of most NBCUniversal cable networks as “a free-standing, strong collection of businesses with lots of cash flow generation capability for many years to come, good market position and great focus.”

It’s led by Mark Lazarus with the roster of executives fleshed out earlier this month. But many details are still to come. “When they’re ready to talk about their strategy, which will be at some point down the road, we’ll come back,” Cavanagh told analysts who pressed for details. However Lazarus and his team take that strategy forward, “I’m optimistic that [it] creates good opportunities for our shareholders.”

NBCU’s remaining media and entertainment businesses will be run by Donna Langley, chair of NBCUniversal Entertainment and Studios, and Matt Strauss, chair of NBCUniversal’s media group. It will be broadcast and streaming focused with the NBC network, Peacock, sports, the film and television studios and theme parks. It’s also keeping the Bravo cable network. Execs indicated that only a fraction of viewership on Peacock comes from the soon-to-spun out cable networks. “They weren’t integral to the emphasis we’ve put on Peacock and a streaming future,” Cavanagh said.

“When you look at the what remains in the aggregate media company, it’s a strong, strong business, one of the best in the country and, if not, the world.”

Asked if NBCU would be interested in partnerships, he said, “Absolutely … partnerships, bundling, we will consider, will consider anything … But I think the point of it in partnerships is, what do you bring to the table? And you know, getting our assets very tightly focused around a strong strategy for Peacock enables us to be a good partner.”

Comcast chairman and Brian Roberts noted that Cavanagh, his heir apparent, has begun “to operate the company as if it’s already happened.”

“The spin makes a lot of sense. Ninety-eight percent of the viewing on Peacock does not include this fund networks. So they need their own direct to consumer digital initiatives and focus and investment, and I think Mark Lazarus and [CFO] Anand Kini and the team are going to do a superb job.”

“We’ve got a whole new team in the remaining media businesses, and the leadership that we’ve announced is in place and functioning, and we were just meeting the other day, and they have a pretty exciting roadmap. You know, it starts with Epic Universe this May,” Roberts said. “In the television business, I think that the content we make works on Peacock. We are also a provider to other platforms. I think we sell content to every platform. And I think with the addition of something like the NBA, combined with the Olympics, combined with Sunday Night Football, combined with Premier League, and then shows like Day Of The Jackal. We have something called The Americas coming up, which will be on NBC. And using NBC to drive Peacock and vice versa, more than maybe we have in the past. It’s a very exiting business.”

The Americas is a Tom Hanks narrated 10-part series exploring the wildlife of North and South America. 

Executives on the call also said the LA wildfires will impact Universal theme parks in the current quarter. And they discussed the unexpectedly steep exodus of broadband subscribers in the last three months of 2024 that knocked Comcast stock lower today.

Parks faced a difficult 2024 after a massive surge in attendance post Covid. That moderated last quarter.

“We’re seeing some stabilization after a slowdown in the second and third quarters,” said CFO Jason Armstrong, adjusted for the pre-opening costs of around $35 million for Epic Universe in Orlando. He said attendance trends improved across most of our parks, including Orlando ahead of Epic’s grand opening in May. The vast majority of costs leading up to the opening — about $100 million, will land in the current first quarter. He anticipated incremental domestic marketing spend, as well as an impact “from the tragic fires that raged around Hollywood.”

Cavanagh’s opening remarks noted the horrific hit the city has taken.

“Our hearts go out to everyone impacted by the devastating wildfires. I’m in awe of the first responders and others on the front lines, and grateful to our news teams on the ground covering this tragedy and sharing vital information, as well as the operations teams and everyone in the community who has rallied to support people in this difficult time,” he said.

Comcast had a nice fourth quarter on many fronts but saw its usually steady stock drop – down nearly 13% late morning — after shed more broadband subscribers than anticipated. Executives cited heavy competition in key markets that it expects to settle at some point. Meanwhile, the company is doubling down on growing its footprint in wireless, which can be offered in a bundle and reduce churn.

Cavanagh called wireless “a meaningful differentiator, as our converged offers provide great savings to the consumer, and so you will see a shift our strategy to package mobile with more of our higher tier broadband products, both for new and many of our existing customers.”