Peacock loses $432m in Q1 despite reaching 46m subs but execs say profitability within reach

US streaming service Peacock added around two million subscribers in the first quarter (Q1) to reach 46 million overall.

Mike Cavanagh

Despite the subscriber additions, the Comcast-owned platform lost US$432m in the quarter, but execs told analysts profitability may be around the corner.

During an investor call, Comcast co-CEO Mike Cavanagh said the “prospect for ongoing and durable profitability for Peacock is what we have our sights on.”

Meanwhile, chief financial officer Jason Armstrong said Peacock has reached a “meaningful inflection point” and is “expected to approach profitability” in short order. They did not provide a firm timeline on which it expected the platform to become profitable.

Over the past 12 months, the streamer has added around five million subs, with revenue climbing 71% to US$2bn, up from around US$1.2bn a year ago.

Peacock has been the slowest of the American streaming services to become profitable. Putting aside Netflix, which has been profitable since well before the streaming wars began in 2020, the likes of Disney+, HBO Max and Paramount+ have all become profitable over the past couple of years after sustaining multi-billion-dollar losses.

The indication that Peacock may soon break even is positive news for parent company Comcast, which has absorbed heavy losses related to its direct-to-consumer business for the past six years.

The streamer, and Comcast-owned broadcaster NBC, carry NBA basketball through a deal valued at around US$2.5bn per year. Outside of sports, its roster of originals includes The Traitors, Love Island USA, Twisted Metal and Poker Face.

In the media segment, which includes Peacock as well as its domestic and international television business, Q1 revenue was up 60% at US$7.28bn as a result of a major advertising uptick related to the Winter Olympics in Italy and the Super Bowl. Putting those events aside, revenue was up 12.7%, which Comcast attributed in part to growing Peacock subscriber numbers and price increases.

While revenue was up, operating expenses were much higher, meaning the media segment saw an adjusted loss of US$426m in Q1 compared with adjusted earnings of US$107m a year ago.

In its studios segment, revenue climbed 21% to US$3.43bn and adjusted earnings rose over 100% to US$555m. Comcast attributed the uptick to higher content licensing, offset slightly by decreased theatrical revenue.