Comcast faces significant financial losses on Peacock, the streaming service, with NBA revenue expected to alleviate the $10 billion deficit.
In the second quarter of 2025, both Comcast and Charter, two of the largest media and internet service providers in the US, reported their financial results. The numbers show a mixed picture of growth and challenges for both companies.
Comcast's Q2 2025 Financial Results
Comcast's total internet subscribers remained steady at 30.6 million, but the company experienced a loss of 226,000 domestic internet subscribers. This marks a slowdown in internet gains compared to previous quarters, indicating a potential challenge in maintaining growth in this segment.
The company's pay-TV losses continue, with a loss of 11.8 million video customers, a sequential loss of 325,000 and a year-over-year defection of 1.43 million subs. This represents a 10.8% decline in Comcast's pay-TV base, a stark reminder of the ongoing trend of cord-cutting.
Despite these losses, Comcast's overall revenue increased by 2% to $30.3 billion, thanks in part to a 3.2% rise in revenue to $13.9 billion in the cable communications segment. However, the company's adjusted earnings per share decreased by 3.7% to $2.71.
Peacock's Q2 2025 Performance
Peacock, Comcast's streaming service, has seen a steady subscriber count of about 41 million through Q2 2025. Despite remaining flat, the service increased its revenue to $1.2 billion and narrowed losses significantly, partly helped by a recent $3 per month price increase.
The service's losses narrowed to $101 million in Q2 2025, pushing cumulative losses past $10 billion. However, Comcast leadership expects that the rollout of NBA games on Peacock — with roughly 50% of games being exclusive to the streamer — will boost the average revenue per user (ARPU) and, over time, contribute to subscriber growth by attracting more live sports fans to streaming.
Charter's Q2 2025 Financial Results
Charter, on the other hand, reported a more positive picture. The company gained 171,000 internet subscribers in Q2 2025, but losses in the pay-TV segment outweighed these gains, causing a decline in overall profit. Charter's total video subscribers now stand at 14.7 million.
Charter's stock price dropped significantly following the Q2 2025 financial results announcement. The company's adjusted earnings per share improved 3% to $2.71, but the decline in pay-TV subscribers and the slowing internet gains may have contributed to investor concerns.
In the end, both Comcast and Charter face challenges and opportunities in the rapidly evolving media and internet landscape. The new NBA rights package at NBC Sports is expected to drive subscriber growth at Peacock, but it also introduces substantial sports programming expenses upfront, compressing near-term earnings. Meanwhile, Charter continues to grapple with declining pay-TV subscribers and the need to maintain growth in the internet segment.
- Comcast's diversified business includes internet, pay-TV, and their streaming service Peacock, with technology and general-news content, contributing to their media revenue.
- The finance sector is closely monitoring both Comcast and Charter as they navigate growth and challenges, particularly in their internet and pay-TV segments, with sports programming playing a significant role.
- Investors are weighing the potential impact of sports programming expenses on Comcast's earnings, while the loss of subs in Charter's pay-TV segment and slowing internet gains have caused investor concerns about their stock price.
- The entertainment landscape is being reshaped by streaming services like Peacock, which are vying for subscribers and revenue, particularly in the sports category, with exclusive deals being a key strategy for growth.
