Comcast tops estimates despite Peacock losses, CEO exit

The company was rocked last weekend by the abrupt ouster of Jeff Shell, the CEO of NBCUniversal, who was fired after it was disclosed he had an inappropriate relationship with an employee. Comcast President Mike Cavanagh has taken charge of the business, and will have to steer the company through a complex set of challenges, from a struggling streaming service to the hemorrhaging of cable TV subscribers. The company says it’s not immediately seeking a replacement for Shell.

During Comcast’s call with investors, Cavanagh said the loss of Shell wouldn’t have an impact on NBCU’s strategy. Cavanagh, who has been with the company for almost eight years, said he has long had insight into the media division’s operations but that it’s “unfortunate to have an unexpected change in leadership.”

“Job number one for me is to settle things down and make sure the business and the business leaders and NBCU remain focused,” said Cavanagh. “Frankly, I don’t think the business is going to miss a beat.”

Cavanagh did not specify whether a new CEO would be named. “Me stepping in to oversee NBCU is quite sustainable,” he told investors, adding that he is “going to be here for a long time.”

Comcast’s streaming service Peacock added about 2 million subscribers in the quarter, bringing the total to 22 million. The video service had an adjusted loss before interest, taxes, depreciation and amortization of $704 million on revenue of $685 million. Analysts predicted an adjusted Ebitda loss for Peacock of $727.9 million on $718 million in sales.