Pink's Bottom Line on Media, Money and Sports

Comcast earnings, the US economy and Australian Open tennis

In today’s newsletter, I discuss Comcast earnings, the US economy and the favorites to win the Australian Open tennis tournament this year.

MEDIA: Comcast Earnings

Comcast, the large media conglomerate, reported earnings today that beat the expectations of most on Wall Street.

(Click here to read an excellent summary of Comcast earnings from The Wall Street Journal.)

Comcast’s earnings release reads like a microcosm of what’s currently happening across the entire media industry.

Notably, the company saw strong growth in its video streaming service, Peacock, an increase in high-speed Internet customers but a decline in cable tv subscribers.

Pink's Bottom Line

Two key trends have emerged in recent years across the entire national media industry.

First, video streaming services like Peacock, Netflix and others are showing large, consistent subscriber gains.

Second, consumers are continuing to cut the cord from traditional pay and satellite television services.

Comcast’s latest earnings report reinforces these two trends, and it appears that both trends will be enduring for the foreseeable future.

MONEY: US Economic Growth

The US economy grew 4% in the fourth quarter, though it declined 3.5% for the full year, according to a government report released by the Commerce Department earlier today.

That follows two volatile quarters of economic activity due to the impact of the coronavirus. The economy grew 33.4% in the third quarter of 2020, following a stunning 31.4% decline in the second quarter of last year.

Pink's Bottom Line

For the full year, the overall decline in GDP reflects, in part, lower consumer expenditures in the services sector, notably for restaurants, hotels, healthcare and recreation.

As the consumer accounts for nearly 70% of overall economic activity in the United States, a strong consumer will ultimately lead the country to a robust recovery.

That strong recovery could happen once the pandemic gets more under control and once Americans can safely and confidently go out to restaurants and travel.

SPORTS: Australian Open Tennis

With the Australian Open tennis tournament, the first major of 2021, beginning in less than two weeks, Novak Djokovic, the men’s top ranked player, and Naomi Osaka, the third-ranked women’s player, are the favorites to capture their respective singles titles this year.

According to FanDuel Sportsbook, Djokovic is +135 to win the men’s title while Osaka is +550 to take home the women’s title.

(Note: Djokovic at +135 means that if a bettor wagers $100 on Djokovic to win the men’s title and he does indeed win, that bettor would win $135.)

Pink's Bottom Line

Interestingly, Rafael Nadal (+600) is the fourth favorite to win the men’s title behind Djokovic, Daniil Medvedev (+500) and Dominic Thiem (+550), according to FanDuel Sportsbook.

On the women’s side, Serena Williams (+1400) is the fifth favorite, trailing Osaka, Aryna Sabalenka (+1000), Ashleigh Barty (+1000) and Simona Halep (+1200), according to FanDuel Sportsbook.

It’s unusual to see both Nadal and Williams as such underdogs, though I suspect that each will make it to at least the semifinals, and likely even play for their respective titles.

---

Jeremy Pink is currently COO of Geniecast, a leading virtual content and experience company. He is the former CEO of private-equity backed Broadcast Sports International where he helped lead the company to a successful sale and exit during his tenure there. He is also a former CNBC television executive in New York, London and Singapore.

The information contained in this communication is strictly for general informational and entertainment purposes and is not meant to be construed as financial, investment, tax, or legal advice. This communication is not a solicitation to buy or sell any securities. I am not a financial advisor or offering professional advice of any kind. Users should not act upon the content or information found within this communication without first seeking professional advice appropriate for their individual situation. Decisions based on information contained in this communication are the sole responsibility of the user, and use of this communication and its contents constitutes an explicit understanding and acceptance of the foregoing disclaimers.

(Newsletter Editor: Karina Pink)