Comcast theme pack business took a beating in the third quarter owing to the COVID -19 pandemic that disrupted operations and traffic to the facilities. The cable giant reported an 81% decline in revenues in the segment that came in at $311 million.
Theme Park Struggles
The double-digit revenue decline can be attributed to, among other things, the coming to a halt of business activities in the theme parks. With the social distancing policies still in place, the company saw traffic to the parks drop significantly, conversely affecting one of its key revenue streams.
Amid the third quarter disappointments, Chief Executive Officer, Brian Roberts, remains confident of Comcast’s theme parks breaking even come 2021. However, the same depends a great deal on the pandemic being brought under control through vaccines or the development of an effective treatment regimen.
As it stands, Comcast has only been able to open and run theme parks in Florida and Japan. The company’s theme park in California will remain closed for the foreseeable future until Los Angeles County is able to achieve an infection rate of less than 1 case per 100,000 people. The opening of a new theme park in Beijing should help offset the drag in California.
Amid the 81% decline in revenue, Comcast was still able to top earnings estimates attributed to solid results from the company’s cable business. Earnings came in at 65 cents a share against 52 cents expected by analysts. Total revenue topped estimates on coming in at $25.53 billion against $24.74 billion expected.
The highlight of the quarter was the cable business that continued to grow at an impressive rate. The cable giant reported 633,000 new high-speed internet customers. In cable, Comcast added 556,000 new customer relationship additions marking the best quarterly result on record. Cable business revenues rose to $15 billion from $14.6 billion.
The film segment was another drag, having suffered a great deal during the pandemic. Interruptions in movie production and theater premiers have significantly affected the business. Likewise, revenue in the segment fell 25% to $1.3 billion.