Media and telecommunications giant Comcast (CMCSA, Financial) had an interesting 2020. On one hand, its broadband cable business—which accounted for more than 50% of Comcast revenue in pre-Covid 2019—thrived in a world increasingly dependent on internet connectivity. This tailwind was a headwind in other areas of its operations, however, especially NBCUniversal (composed of cable networks, broadcast television, theme parks and other assets), which struggled amid closures of theme parks and movie theaters worldwide and the loss of advertising revenue from postponed sporting events (including the Olympics). Given its diversified sources of revenue, we view Comcast as a resilient business with a high-quality management team focused on the long-term success of their franchise in an industry subject to potential technological and regulatory shifts. In the near term, meanwhile, theme parks and advertising revenue should recover as economic activity picks up.
From First Eagle Investment (Trades, Portfolio)'s Global Value Team's fourth-quarter 2020 commentary.
Also check out: