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Sensor Tower · Abraham Yousef · July 2024
MMM: Comcast Q2 2024 Earnings Results and Trends; Nike Leans into Olympics Advertising
Comcast missed revenue estimates due to weak performance in its linear TV and movie sectors. Per Sensor Tower data, Peacock's mobile app MAUs declined in line with reported paid subscribers. Nike missed revenue estimates, with global MAUs in 1H24 down 8% YoY. As Nike looks to the Olympics for its comeback moment, ST data can provide unique insight into its digital advertising strategy surrounding the event.
Key Takeaways:
Comcast’s 2Q24 EPS exceeded street estimates, yet the company missed the mark on revenue as it saw weaker performance in Universal Pictures, Peacock and its linear TV business. ST mobile app MAUs for Peacock fell -3% QoQ in 2Q24, directionally in line with a -12% decline in reported Peacock paid subscribers. This decline in Peacock mobile app MAUs in 2Q24 represented a -1500bps deceleration in user growth vs 1Q24, in line with a -1300bps deceleration in reported Peacock paid subscriber growth during the same period
Although Peacock saw some momentum in both downloads and active users tied to live sport events such as Wrestlemania XL in 2Q24, this failed to materialize into solid user growth, which signals that Peacock may have an issue in retaining subscribers. This trend could reverse heading into the 2024 Summer Olympics in Paris, which Peacock is the official streaming partner for
Per ST data, Peacock had the highest average user churn rate compared to its peers (save for Paramount+) in 2Q24 at 41%, compared to 37% for Hulu, 34% for Disney+, 30% each for Max and Prime Video and 25% for Netflix, which suggests that users are likely canceling their subscriptions at a faster rate on Peacock than on other streaming platforms
ST data shows that Nike is still advertising heavily in the US, with ad spend up 26% YoY in 2Q24, however the company’s mobile app has seen a decline in global MAUs, down -8% YoY in 1H24, vs +4% for Adidas
In 1Q24 and 2Q24, Adidas’s US ad spend spiked 1100% and 300% YoY, respectively. On an absolute basis, Nike’s US ad spend was nearly triple its footwear rival in 1H24. Adidas’s goal in appealing to younger millennials and Gen Z is evident in the company’s high allocation of spend on YouTube and TikTok, accounting for ~50% of spend in 1H24 while Nike outspent Adidas on Desktop Display (10 ppts) and Facebook (9 ppts)
For more information, request the full report from reports@sensortower.com.
