The move follows the media conglomerate in recent years stepping up cooperation and integration between Comcast Cable, NBCUniversal and Sky, for which it took an $8.6 billion non-cash charge in the third quarter of 2022.
Comcast is updating its segment reporting to take into account the way it accounts for Sky, the European pay-TV company it purchased in 2018 for about $40 billion.
The NBCUniversal parent company announced in a securities filing on Monday that starting with its first quarter 2023 earnings, it will include its Sky-branded entertainment TV channels in its connectivity & platform markets segment, which also includes key broadband and wireless businesses.
Additionally, the media and entertainment businesses in the content & experiences segment, which includes Sky Sports channels and Sky-branded film and TV studio production and distribution operations, will be covered. The TV and streaming platforms from NBCUniversal are included in the media segment, as well as Peacock, Comcast’s premier streaming service.
The move makes sense because Sky, like NBCU, runs networks and streaming services, produces a lot of content and is growing in that regard. Sky also offers connectivity and other technology services, much like Comcast Cable. Executives from Comcast Cable, NBCU, and Sky have also praised the three companies’ increased cooperation, integration, and flow of personnel, knowledge, and technology in recent years.
In order to reflect “reduced estimated future cash flows as a result of macroeconomic conditions in Sky’s territories,” Comcast recorded non-cash impairment charges of $8.6 billion related to goodwill and intangible assets in its Sky segment during the third quarter of 2022. The business has had to contend with adverse economic conditions in the UK and elsewhere.
Even though Comcast’s earnings and revenue for that quarter exceeded analyst expectations, Sky’s revenue for the most recent fourth quarter dropped 13% to $4.4 billion.
Comcast will reflect its cable TV results in its residential connectivity & platforms and business services connectivity segments in addition to presenting Sky’s results across its connectivity & platforms and content & entertainment segments.