Comcast Mulls Spinning Off Cable TV Business

KEY TAKEAWAYS

• Comcast on Thursday said in its third-quarter earnings call that it is considering spinning off its cable network portfolio into a separate company.
• The separation would not include the broadcast network NBC or streaming platform Peacock, Comcast president Mike Cavanagh said in the call.
• The company, which is struggling with cord-cutting, also reported mixed third-quarter results that included a year-over-year loss of 365,000 cable customers.

Comcast (CMCSA) on Thursday said in its third-quarter earnings call that it is considering spinning off its cable network portfolio into a separate company.

The separation would not include the broadcast network NBC or streaming platform Peacock, Comcast president Mike Cavanagh said in the call.

“Like many of our peers in media, we are experiencing the effects of the transition in our video businesses and have been studying the best path forward for these assets,” Cavanagh said, according to a transcript provided by AlphaSense.

“To that end, we are now exploring whether creating a new, well-capitalized company owned by our shareholders and comprised of our strong portfolio of cable networks would position them to take advantage of opportunities in the changing media landscape and create value for our shareholders,” Cavanagh added.

Cavanagh also said Comcast is considering partnerships in streaming.

Comcast Lost 365,000 Cable Customers in Q3 From Year Earlier

The company, which is struggling with the rise of cord-cutting, also reported mixed third-quarter results and a loss of 365,000 cable TV customers year-over-year.

Boosted by its coverage of the Paris Summer Olympics, Comcast’s quarterly revenue rose 6.5% to $32.07 billion, exceeding Visible Alpha consensus expectations, but earnings per share (EPS) of $0.94 lagged estimates.

Comcast shares are up around 2% Thursday morning but are down by roughly the same amount this year.