Comcast on Thursday reported third-quarter earnings that beat analyst estimates, regardless of seeing income barely decline and continued softness in broadband buyer progress.

The corporate’s shares jumped greater than 7% Thursday morning.

This is how Comcast did within the third quarter of 2022 in contrast with what Wall Avenue was anticipating, based mostly on a survey of analysts by Refinitiv:

• Earnings per share: 96 cents, adjusted vs. 90 cents anticipated
• Income: $29.85 billion vs. $29.65 billion anticipated

The corporate mentioned it added 14,000 broadband prospects in the course of the quarter – an enchancment from the second quarter, when Comcast did not add any new prospects for the primary time ever. Nonetheless, it is a signal that cable broadband suppliers are going through elevated competitors from telecom and wi-fi web corporations.  

The slowdown in new prospects is hitting the cornerstone of Comcast’s enterprise, just like friends like Charter Communications and Altice USA. AT&T mentioned final week constructing out its fiber-optic community stays a precedence for the corporate, and it added 338,000 new prospects in the course of the quarter. 

“It is nonetheless a difficult surroundings,” Comcast CEO Brian Roberts mentioned on Thursday’s name with buyers, noting how fewer individuals are transferring to new properties in the US, in addition to elevated competitors from new entrants out there.

Comcast’s income declined 1.5% to $29.85 billion in contrast with the identical quarter final 12 months, when the corporate’s NBCUniversal unit reaped extra promoting {dollars} from airing the Tokyo Olympics on its TV networks. The corporate additionally took a writedown of $8.6 billion on its Sky enterprise within the U.Ok. as a result of macroeconomic challenges affecting Europe because the battle in Ukraine rages.

Its adjusted earnings earlier than curiosity, taxes, depreciation and amortization rose 5.9% to $9.5 billion in contrast with the identical interval final 12 months. 

In the meantime, Comcast’s cable unit, which incorporates pay-TV, cell and conventional telephone providers along with broadband, noticed income improve 2.6% to $16.5 billion. The corporate mentioned broadband income jumped 5.7% on account of a rise in common charges and the variety of its residential broadband prospects. 

Its Xfinity Cell enterprise, which was launched 5 years in the past and depends on Verizon‘s wi-fi community, now has 5 million buyer strains. 

Comcast misplaced 561,000 pay-TV prospects, a continued quarterly decline that the corporate and its friends have been experiencing in recent times as a result of rise of streaming providers. 

Peacock, the corporate’s fledgling streaming service, surpassed 15 million paying prospects, a rise of 70% 12 months to this point, the corporate mentioned Thursday. 

Income for the NBCUniversal unit dropped about 4% to $9.6 billion when put next with the identical quarter final 12 months, when the Tokyo Olympics came about and added $1.8 billion in income to the media phase. NBCUniversal’s media phase is comprised of its broadcast and cable TV networks and streaming. 

On Thursday, Comcast monetary chief Mike Cavanagh mentioned the corporate expects its media enterprise, excluding Peacock, to be affected by cord-cutting and a few deterioration within the promoting market on account of financial uncertainty.

As a result of absence of the Olympics, the media phase’s income declined roughly 23% to $5.23 billion. It might have been up 4.4% excluding the Olympics. Promoting income for the phase was down 35% for a similar motive, though the corporate mentioned that was partially offset by a rise in advert income from Peacock. 

NBCUniversal’s film studios income was up 31.4% to $3.2 billion on account of greater theater and content material licensing income. The corporate mentioned theater income specifically practically doubled to $673 million primarily as a result of releases of “Jurassic World: Dominion” and “Minions: The Rise of Gru.”

NBCUniversal CEO Jeff Shell just lately mentioned on CNBC that he believed that the corporate’s film enterprise has been performing properly on the hybrid mannequin of releasing some movies concurrently in theaters and on streaming service Peacock – reminiscent of its newest installment of the Halloween franchise – whereas nonetheless ready to make others out there to viewers at house, reminiscent of Minions. 

Peacock had a lack of $614 million in earnings earlier than curiosity, taxes, depreciation and amortization, and Comcast mentioned Thursday the corporate nonetheless expects Peacock to file losses of $2.5 billion this 12 months.

The corporate’s theme park enterprise stored up its robust rebound because the early days of the Covid-19 pandemic, when theme parks had been shuttered. Income rose greater than 40% to $2.1 billion as extra folks swarmed theme parks in the course of the quarter. 

Within the U.Ok., Comcast’s Sky noticed income fall 14.7% to $4.3 billion, however mentioned that excluding the influence of foreign money change, its income was in step with the identical quarter final 12 months. Sky’s whole buyer depend elevated by 320,000 to 23 million, boosted by streaming buyer additions.

The $8.6 billion writedown on Sky’s enterprise got here because the strengthening greenback affected the enterprise on a foreign money foundation, and the Ukraine battle and inflation additional affected Europe.

Comcast’s inventory hit a 52-week low of $28.39 on Oct. 13. As of Wednesday’s shut, shares are down about 37% to this point this 12 months.

Disclosure: Comcast is the mum or dad firm of NBCUniversal, which owns CNBC.

Correction: Peacock surpassed 15 million paying prospects, a rise of 70% 12 months to this point, the corporate mentioned. An earlier model mischaracterized the share.