After a very strong 2019, shares of media and telecommuni-cations company Comcast (CMCSA, Financial) fell sharply in first quarter 2020. Its NBCUniversal unit is expected to take a big hit from the pandemic, as theme parks and movie theaters worldwide are closed and advertising revenues have declined from the loss of sporting events (including a postponement of the Olympics). However, NBCUniversal accounts for only about 30% of Comcast revenues, with the rest coming predominantly from the cable broadband side of the business, which has held up reasonably well. While a 2018 acquisition of Sky left the company leveraged and susceptible to near-term headwinds, we’re comfortable with its long-term prospects.
From First Eagle Investment (Trades, Portfolio)'s Global Value Team first-quarter 2020 shareholder commentary.
