Comcast Sheds Light On NBCU CEO Jeff Shell’s Surprising Exit

Firing a top executive just days before a quarterly earnings call is a nightmare scenario for a big corporation. You’re all but guaranteed to get the questions you don’t want to answer on that call.

Comcast
CMCSA
found itself in that situation this week, after letting NBCUniversal CEO Jeff Shell go Sunday amid sexual harassment allegations. During Thursday’s first quarter earnings conference call, Comcast CEO Mike Roberts addressed the elephant in the room right off the bat, calling Shell’s ouster “a tough moment” and then singing the praises of the experienced management team at the company that was forced to step up amid the aftermath.

Roberts likely would have liked to let that be all that was said about Shell, but of course it wasn’t. When the call opened to questions, analysts wanted to know what the change meant for the company and how long Comcast President Michael Cavanagh, now NBCU’s acting CEO, will stay in the position. As one analyst noted, Cavanagh now has “two giant jobs.” How long is that sustainable?

Again, Comcast hedged its bets, as you’d expect from a company that’s had only days to deal with the fallout from Shell’s exit following four years as CEO and almost two decades with the organization. Cavanagh said there was “no timetable” for his acting role, calling it “quite sustainable.”

“As president, I was already overseeing all of this and close to the people that run the NBC businesses and the cable businesses in the corporate areas. And I think what’s really important to understand is that we’ve got high-quality operators and leaders in all the seats around the company—Philadelphia, LA, New York, Orlando and so forth,” Cavanagh said. He noted he’d have to work a little harder but welcomed the chance to get closer to the NBCU businesses. “Frankly, since I’m going to be here for a long time, I actually think that’s good for me and good for the company over the long term.”

Cavanagh also said he doesn’t envision any immediate strategic changes at NBCU. Rather, the unit seems focused on the overall Comcast message of synergy and cooperation, a necessary one in this time when a broadcast and cable network owner can also have a major piece of the streaming pie.

Several executives on the call emphasized Comcast’s successes in animation this year, with recent hit The Super Mario Bros. Movie garnering much praise.

Gains and Losses at Peacock

One big question Comcast hasn’t yet been able to answer is how to stem the losses at Peacock, which continues to make subscription strides even while losing money. The streamer suffered a $704 million loss in first quarter, up from $456 million at the same time last year, despite subscriptions and revenue both growing. In fact, subscribers soared 60%, far outpacing rivals in the SVOD space, to 22 million.

Comcast executives noted they had projected Peacock would lose money this year, and Cavanagh said he expects to break even on the service next year.

A company with roots as a cable provider, Comcast noted that quarterly cable subscription losses totaled 614,000. It’s hardly the only one feeling that pain in an industry where synergy has become a way to stay nimble, instead of relying on past or fading trends to stay afloat.