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NBCUniversal Makes $250M from Summer Olympics in Rio
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Comcast Corporation (CMCSA - Free Report) -owned NBCUniversal has reportedly registered $250 million in profits from its Rio Olympics coverage. Advertising sales, which jumped 20% to $1.2 billion from the 2012 Olympics figure, drove the bottom line. Notably, the company has a record of 21 successive Nielsen nightly rating wins, mainly driven by the broadcast of Summer Olympics in Rio.
Olympics Prospects Bright
Comcast has paid about $12 billion for the broadcasting rights to Olympics games in the U.S. till 2032. Although there has been concerns regarding the drop in viewership numbers for the mega sporting event, it has managed to more than double earnings in comparison to the 2012 London Olympics, which had raked in around $120 million.
What Lies Ahead?
NBCUniversal recently inked a deal with AT&T Inc. (T - Free Report) , the largest pay-TV operator in the country, to showcase its portfolio of channels on the latter’s DIRECTV network. Additionally, it is reviewing the possibility of making its channels available through different over-the-top (OTT) network providers such as Netflix Inc. (NFLX - Free Report) and Verizon Communications Inc.’s (VZ - Free Report) Go90 service. Notably, OTT and Internet TV services have been gaining popularity in recent times and media companies are looking forward to striking a deal with OTT providers to broadcast their content through the OTT medium.
The Rio Olympics broadcast has certainly paid off and will attract high advertising revenues in the future as well. Moreover, the rise in profits will result in higher earnings for Comcast this year. Thus, we believe that this Zacks Rank #3 (Hold) stock is worth adding to your portfolio. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Interested in IPOs? Check out the special edition of Zacks Friday Finish Line below, where Editor Maddy Johnson and Content Writer Ryan McQueeney interview Kathleen Smith of Renaissance Capital about the IPO market in 2016 (see part two here).
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NBCUniversal Makes $250M from Summer Olympics in Rio
Comcast Corporation (CMCSA - Free Report) -owned NBCUniversal has reportedly registered $250 million in profits from its Rio Olympics coverage. Advertising sales, which jumped 20% to $1.2 billion from the 2012 Olympics figure, drove the bottom line. Notably, the company has a record of 21 successive Nielsen nightly rating wins, mainly driven by the broadcast of Summer Olympics in Rio.
Olympics Prospects Bright
Comcast has paid about $12 billion for the broadcasting rights to Olympics games in the U.S. till 2032. Although there has been concerns regarding the drop in viewership numbers for the mega sporting event, it has managed to more than double earnings in comparison to the 2012 London Olympics, which had raked in around $120 million.
What Lies Ahead?
NBCUniversal recently inked a deal with AT&T Inc. (T - Free Report) , the largest pay-TV operator in the country, to showcase its portfolio of channels on the latter’s DIRECTV network. Additionally, it is reviewing the possibility of making its channels available through different over-the-top (OTT) network providers such as Netflix Inc. (NFLX - Free Report) and Verizon Communications Inc.’s (VZ - Free Report) Go90 service. Notably, OTT and Internet TV services have been gaining popularity in recent times and media companies are looking forward to striking a deal with OTT providers to broadcast their content through the OTT medium.
COMCAST CORP A Price
COMCAST CORP A Price | COMCAST CORP A Quote
The Bottom Line
The Rio Olympics broadcast has certainly paid off and will attract high advertising revenues in the future as well. Moreover, the rise in profits will result in higher earnings for Comcast this year. Thus, we believe that this Zacks Rank #3 (Hold) stock is worth adding to your portfolio. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Interested in IPOs? Check out the special edition of Zacks Friday Finish Line below, where Editor Maddy Johnson and Content Writer Ryan McQueeney interview Kathleen Smith of Renaissance Capital about the IPO market in 2016 (see part two here).