Add Comcast (CMCSA) to the growing list of media companies lamenting a soft advertising market: The cable giant recorded $399 million of ad revenue in Q2, down 2% year-over-year.
"...This business area continues to feel the impact of the softer economy," Comcast CFO Michael Angelakis said on this morning's Q2 earnings call.
Particular soft spots: Comcast's local business, as well as automotive- and housing-related categories. Some political ad spending in Q2 helped, and should help more later this year: Angelakis said it accounted for about 2% of growth, and "while the advertising environment continues to look soft, we expect heavier political spending in the second half of the year."
Ad revenue is ancillary for Comcast -- less than 5% of its $8.6 billion of Q2 sales -- but the year-over-year decline is not a good sign ahead of earnings reports from many of the major media conglomerates. Similarly, yesterday, Viacom posted 2% year-over-year ad revenue growth, including 1% growth in the U.S.
See Also:
Comcast Q2 Sales Beat Estimates, But Profits Miss In "Challenging Economic Environment"
Viacom: Ad Market So Bad We're Not Making Predictions Anymore
Indiana Jones, Iron Man Push Viacom's Q2, But Ad Sales Sputter At Cable Networks
