Comcast is feeling the post-Olympic blues.

The media conglomerate reported a 1.5% year-over-year decline in third-quarter revenue to $29.8 billion and a net loss of $4.6 billion, compared to $4 billion in net income the year prior. Comcast added 14,000 broadband subscribers.

Comcast’s NBCUniversal was awarded the U.S. media rights for the Olympic Games from 2021 through 2032 at a $7.65 billion price tag. The first Games under that deal were the Tokyo Olympics in the third quarter of FY2021.

• NBCUniversal’s Q3 revenue fell 4.3% year-over-year to $9.6 billion, with its media segment dropping 22.7% to $5.2 billion — excluding the Olympics and the Super Bowl, it increased 4.4%.
• Advertising revenue declined 35.1%, primarily due to the Olympics.

The company also said goodbye to its Olympic Channel at the end of the quarter, not long after shutting down its sports network at the end of last year.

Paid subscribers for Comcast’s streaming service Peacock, which posted a loss of $614 million, surpassed 15 million — a nearly 70% increase year to date.

Sky’s Show

Comcast posted an $8.6 billion write-down on its pay-TV operations for Sky, the European media and entertainment company Comcast acquired in 2018 for $39 billion. 

The segment, which renewed its broadcasting deals for the Masters Tournament and PGA Tour in the U.K. and Ireland in Q2, posted a 14.7% year-over-year decrease in third-quarter revenue to $4.3 billion, but added 320,000 customers. 

SkyShowtime, the joint venture with Paramount Global, launched in September.

Video games have become a bright spot for Microsoft amid challenges within the tech industry. 

“It’s proven over years, at times of economic uncertainty for families, gaming is somewhat resilient to those issues,” Microsoft Gaming CEO Phil Spencer said. 

Microsoft proved itself in 2008 during the global financial crisis when it recorded its Best Calendar Year on record for Xbox sales after it cut prices to compete with Nintendo’s Wii.

Microsoft’s latest earnings report backs up Spencer’s statement. 

• Microsoft posted $50.1 billion in revenue in fiscal Q1, an 11% increase year-over-year.
• Its Xbox content and services business saw revenue decrease by 3% during the quarter.
• Microsoft offers its latest generation of consoles for $499 (Xbox Series X) and $299 (Series S).
• It subsidizes the cost of the consoles from $100 to $200 per unit. 

The gaming industry took a step back in the first half of this financial year following a surge of interest and spending at the height of the pandemic, mostly due to the ongoing chip shortage and supply chain disruptions. 

Road Block

In January, Microsoft announced plans to acquire Activision Blizzard for $68.7 billion, making the tech giant the world’s third-largest gaming company by revenue. 

The all-cash deal has been investigated by the Competition and Markets Authority — a U.K. antitrust watchdog. The CMA detailed concerns over the deal harming Sony’s PlayStation subscription offerings and the streaming business of rivals Google, Amazon, and Nvidia.

As a result, the deal was not initially approved by the CMA and has been sent to a second review stage.

The owner of the New York Knicks and Rangers saw positive returns from the beginning of their seasons, even as the Knicks’ long-term struggles on the court may be hurting their value.

Madison Square Garden Sports Corp. saw its revenue rise 28% year-over-year to $24.1 million in their fiscal first quarter ending Sept. 30. 

• The company still took a $35.9 million operating loss, a tick larger than the $34.9 million loss in the same period last year.
• The Knicks and Rangers saw combined season-ticket renewals top 90% for the 2022-23 season.
• The company said that suite license sales “remain robust” and that the majority of suites are under multiyear agreements.

MSG Sports is issuing a one-time dividend of around $175 million to its shareholders and has authorized a $75 million share buyback.

Knicks Bumped from Top Spot

The Golden State Warriors broke the Knicks’ seven-year streak as the most valuable NBA team, per Forbes’ annual rankings. The reigning NBA champions reached a value of $7 billion, becoming the first team other than the Knicks and Lakers to claim the top rank in two decades.

The Knicks were second at $6.1 billion, followed by the Lakers at $5.9 billion. 

The Knicks have made the playoffs only once since the 2013-14 season, losing in the first round in 2020-21. The Warriors have been NBA champions four times in that stretch and reached the Finals in two additional seasons.