Comcast advertising revenue rises on political spending despite core market decline
Q4 advertising revenue increases 4.4% to $1.16 billion due to election spending, while core advertising faces challenges.
Comcast Corporation reported mixed advertising results in its fourth quarter earnings release today, highlighting the diverging trends between political and traditional advertising spending.
According to the earnings report released by the Philadelphia-based media giant, advertising revenue increased 4.4% to $1.16 billion in the fourth quarter of 2024, primarily driven by higher domestic political advertising during the election cycle.
However, the underlying advertising market showed signs of weakness. When excluding political spending, advertising revenue decreased approximately 6% compared to the same period last year, indicating persistent challenges in the core advertising business.
Mike Cavanagh, President of Comcast Corporation, noted during the earnings call that domestic advertising performance remained stable at $2.64 billion, supported by growth at Peacock, the company's streaming platform. This growth helped offset lower advertising revenue across traditional network platforms.
The streaming service Peacock demonstrated particular strength in advertising performance. According to the financial statements, Peacock's revenue grew 28% to $1.3 billion in the fourth quarter, with advertising contributing significantly to this growth as the platform reached 36 million subscribers.
International advertising faced additional headwinds during the quarter. The company reported lower international advertising revenue, though specific figures were not disclosed in the earnings release. This decline in international markets partially offset gains seen in domestic political advertising.
Looking at the full-year performance, advertising trends reflected similar patterns. Political advertising provided periodic boosts throughout 2024, particularly in the fourth quarter, while traditional advertising segments continued to navigate a challenging market environment.
The advertising results emerge as Comcast prepares for significant changes in its media business. The company announced plans to spin off its cable television networks division by the end of 2025, which could reshape its advertising portfolio. Additionally, the upcoming broadcast rights for NBA games, secured through an 11-year agreement, are expected to create new advertising opportunities across both traditional and streaming platforms.
Jason Armstrong, Chief Financial Officer, emphasized during the earnings call that the company continues to focus on diversifying its advertising revenue streams, particularly through digital and streaming platforms, to offset traditional market challenges.
The financial markets appeared to process these mixed advertising results as part of the broader earnings picture, with Comcast shares trading at $33.55, up 0.36% at market close on February 4, 2025, according to Refinitiv data.
For 2025, the company expects political advertising to moderate following the election cycle, placing increased importance on core advertising performance and the continued growth of digital advertising platforms like Peacock.
Looking ahead, Comcast's advertising strategy will need to navigate the ongoing shift in viewer habits, with streaming platforms gaining prominence while traditional television advertising faces continued pressure. The company's investments in digital advertising capabilities and its upcoming sports programming rights suggest a strategic focus on adapting to these evolving market dynamics.