With potential exposure to economic weakness on several fronts, analysts were keen to hear from Comcast Corp. executives whether the conglomerate is feeling any impact from the Trump administration's tariffs or tweaking consumer sentiment.
Analysts focused on three key business lines: Comcast's wireless business, which enjoyed its best quarterly performance in two years relative to subscriber gains; NBCUniversal Media LLC's theme park unit, including the long-anticipated addition of Epic Universe to its park in Orlando; and the programmer's advertising business.
"Comcast's diversified portfolio unquestionably makes it more susceptible to macroeconomic swings," MoffettNathanson analyst Craig Moffett wrote in a research note.
Speaking during an April 24 earnings conference call, Comcast President Mike Cavanagh said that while the company does not see "any noteworthy evidence of economic challenges for the year thus far, the odds have increased that challenges may be approaching." Still, Cavanagh emphasized that Comcast is "well-positioned to handle whatever lies ahead."
Relative to wireless, Comcast Cable President and CEO Dave Watson was asked on the call if the company would increase device subsidies if the price of handsets rises significantly due to tariffs. The White House on April 11 exempted smartphones and other electronics from the tariff increases on mainland Chinese imports, though they are still subject to a 20% rate that Trump has tied to the international drug trade, particularly fentanyl. US Commerce Secretary Howard Lutnick subsequently said smartphones and other electronics will be covered under new sector-specific tariffs that will be announced in the next month or two.
Although Watson did not answer the subsidy question directly, the cable executive noted that in wireless, "We are a challenger. It's good to be a challenger in any environment, including this one, in particular, as I think customers are looking for savings."
During the first quarter, Comcast posted 323,000 total domestic wireless line net additions, a performance Cavanagh said was the company's best in two years and, in turn, raised its total wireless lines to 8.1 million.
"With mobile penetration at only 13% of our residential broadband customer base, we have plenty of runway ahead to leverage wireless as a key component of our connectivity bundle with our industry-leading broadband product," Cavanagh told analysts.
For theme parks, NBCU will launch Epic Universe, its most ambitious park experience to date, on May 22. Epic Universe will feature five immersive worlds and over 50 attractions, aiming to make Universal Orlando a weeklong destination.
In response to an analyst's question about whether the company is feeling the impact of reduced international travel, Cavanagh called the preopening buzz for Epic "very strong." The executive said ticket sales and hotel bookings for the new venue and parks overall are strong. At the same time, he acknowledged that the abovementioned dynamics might have fallen outside the company's booking windows thus far.
Relative to its Florida properties, Cavanagh said many visitors emanate from the American South and "are not necessarily hopping on planes to get there." As such, there could be a delayed effect between what airlines are reporting and what the company has experienced to date. Cavanagh reiterated that there is no real sign of that in the business at this stage.
Theme park revenue declined 5.2% to $1.88 billion in the first quarter, from $1.98 billion in the opening period of 2024. The downturn stemmed largely from lower guest attendance at Universal Hollywood, which continues to be affected by the aftermath of the Los Angeles wildfires. Cavanagh said Los Angeles tourism is looking to recover more broadly.
On the advertising front, CFO Jason Armstrong said the company has not yet seen any impact from the current macroeconomic uncertainty, but he conceded this arena has evinced "the most economic-related cyclicality in our business historically." Armstrong noted the company feels well-positioned advertising-wise with the upcoming upfront selling season and the balance of 2025 overall. He said NBCU expects to capitalize on NBC Sports reentering the NBA arena in the fourth quarter as part of a new 11-year rights deal. Further, the executive expects ad sales to be boosted by a Peacock subscriber base that reached 41 million in the first quarter as the company looks to secure a larger slice of the subscription video on demand advertising pie.
During the upfront, content providers look to sell linear and digital schedules to media agencies and their clients ahead of the upcoming TV season. NBCU's upfront presentation for the 2025–26 TV season is slated for Radio City Music Hall in Manhattan on May 12.
First-quarter domestic ad revenue declined 6.8% to $1.89 billion from $2.03 billion in the opening period of 2024. The decline was mainly due to the volume and timing of sports content — Peacock had exclusive rights to an NFL Wild Card game in 2024, while Amazon.com Inc. streamed the equivalent this year. Backing out of that, along with tough political comparisons, advertising would have been relatively flat.
