Comcast Corporation (NASDAQ: CMCSA) today reported results for
the quarter ended June 30, 2022.
“Our financial results in the second quarter were very strong
across the board, with Cable, NBCUniversal, and Sky each delivering
solid growth in adjusted EBITDA, resulting in a double-digit
increase in adjusted earnings per share and healthy free cash flow
generation. Significantly we accomplished this while also
continuing to invest in our businesses’ future growth, increasing
our return of capital to our shareholders, and keeping our balance
sheet in a great place. In Cable, we achieved our highest adjusted
EBITDA margin on record even amid a unique and evolving
macroeconomic environment that is temporarily putting pressure on
the volume of our new customer connects. At NBCUniversal, terrific
results at theme parks fueled our growth in the quarter, and we
expect our recent premieres and planned slate of content and live
events from our media and studios businesses, including Jurassic
World: Dominion, Minions: The Rise of Gru, Nope, Sunday Night
Football and The World Cup, to make significant contributions later
this year, including to our subscriber growth at Peacock. And, at
Sky, we grew adjusted EBITDA by double-digits, with year-over-year
improvement in each of our markets in Europe. Looking ahead, our
company is in an enviable strategic and financial position, with
substantial cash flow generation and a strong foundation for
innovation," commented Brian L. Roberts, Chairman and Chief
Executive Officer of Comcast Corporation.
($ in millions, except per share data)
2nd
Quarter
Year to
Date
Consolidated Results
2022
2021
Change
2022
2021
Change
Revenue
$30,016
$28,546
5.1
%
$61,026
$55,751
9.5
%
Net Income Attributable to Comcast
$3,396
$3,738
(9.2
%)
$6,945
$7,067
(1.7
%)
Adjusted Net Income1
$4,507
$3,943
14.3
%
$8,406
$7,472
12.5
%
Adjusted EBITDA2
$9,827
$8,927
10.1
%
$18,977
$17,339
9.4
%
Earnings per Share3
$0.76
$0.80
(5.0
%)
$1.54
$1.51
2.0
%
Adjusted Earnings per Share1
$1.01
$0.84
20.2
%
$1.86
$1.60
16.3
%
Net Cash Provided by Operating
Activities
$6,327
$7,606
(16.8
%)
$13,584
$15,357
(11.5
%)
Free Cash Flow4
$3,170
$4,791
(33.8
%)
$7,930
$10,071
(21.3
%)
For additional detail on segment revenue and expenses, customer
metrics, capital expenditures, and free cash flow, please refer to
the trending schedules on Comcast’s Investor Relations website at
www.cmcsa.com.
2nd Quarter 2022 Highlights:
- Consolidated Adjusted EBITDA Increased 10.1% to $9.8 Billion;
Adjusted EPS Increased 20.2% to $1.01; Generated Free Cash Flow of
$3.2 Billion
- Returned $4.2 Billion to Shareholders Through a Combination of
$1.2 Billion in Dividend Payments and $3.0 Billion in Share
Repurchases
- Cable Communications Adjusted EBITDA Increased 5.3% and
Adjusted EBITDA per Customer Relationship Increased 3.0%; Adjusted
EBITDA Margin Increased 70 Basis Points to 44.9%
- Cable Communications Total Customer Relationships of 34.4
Million and Total Broadband Customers of 32.2 Million Were
Consistent with the Prior Quarter and Increased 1.7% and 2.5%,
Respectively, Compared to the Prior Year Period
- Cable Communications Wireless Customer Line Net Additions Were
317,000, the Best Second Quarter Result on Record; Wireless
Penetration of Residential Broadband Customers Increased to
7.9%
- In June, Closed the Previously Announced Joint Venture with
Charter to Develop and Nationally Offer a Next Generation Streaming
Platform
- NBCUniversal Adjusted EBITDA Increased 19.5% to $1.9 Billion,
Including Peacock Losses
- Peacock Paid Subscribers Stayed Relatively Flat at 13 Million,
Following a Very Strong First Quarter That Was Driven by a Variety
of Extraordinary Programming
- Studios Revenue Increased 33.3% to $3.0 Billion, Driven by the
Successful Theatrical Performance of Jurassic World: Dominion;
Adjusted EBITDA in the Second Quarter Reflected the Timing of Costs
for Future Theatrical Releases, Including the Premiere of Minions:
The Rise of Gru in the Third Quarter
- Theme Parks Adjusted EBITDA Increased $411 Million to $632
Million, Its Highest Adjusted EBITDA on Record For a Second
Quarter, Reflecting Improved Results at Each Park Compared to the
Prior Year Period. Universal Orlando Generated Its Highest Adjusted
EBITDA on Record for Any Quarter
- Sky Adjusted EBITDA Increased 54.1% to $863 Million; On a
Constant Currency Basis, Adjusted EBITDA Increased 70.7%
Consolidated Financial Results
Revenue for the second quarter of 2022 increased 5.1% to
$30.0 billion. Net Income Attributable to Comcast decreased
9.2% to $3.4 billion. Adjusted Net Income increased 14.3% to
$4.5 billion. Adjusted EBITDA increased 10.1% to $9.8
billion.
For the six months ended June 30, 2022, revenue increased 9.5%
to $61.0 billion compared to 2021. Net income attributable to
Comcast decreased 1.7% to $6.9 billion. Adjusted Net Income
increased 12.5% to $8.4 billion. Adjusted EBITDA increased 9.4% to
$19.0 billion.
Earnings per Share (EPS) for the second quarter of 2022
decreased 5.0% to $0.76 compared to the prior year period.
Adjusted EPS increased 20.2% to $1.01.
For the six months ended June 30, 2022, EPS increased 2.0% to
$1.54 compared to 2021. Adjusted EPS increased 16.3% to $1.86.
Capital Expenditures increased 12.6% to $2.4 billion in
the second quarter of 2022. Cable Communications’ capital
expenditures increased 4.8% to $1.8 billion. NBCUniversal’s capital
expenditures increased 153.8% to $463 million. Sky's capital
expenditures decreased 29.3% to $130 million.
For the six months ended June 30, 2022, capital expenditures
increased 6.7% to $4.3 billion compared to 2021. Cable
Communications' capital expenditures increased 2.5% to $3.1
billion. NBCUniversal's capital expenditures increased 116.9% to
$769 million. Sky's capital expenditures decreased 39.1% to $277
million.
Net Cash Provided by Operating Activities was $6.3
billion in the second quarter of 2022. Free Cash Flow was
$3.2 billion.
For the six months ended June 30, 2022, net cash provided by
operating activities was $13.6 billion. Free cash flow was $7.9
billion.
Dividends and Share Repurchases. Comcast resumed its
share repurchase program in May 2021 after pausing the program in
2019 to accelerate the reduction of indebtedness it incurred in
connection with its acquisition of Sky. During the second quarter
of 2022, Comcast paid dividends totaling $1.2 billion and
repurchased 70.8 million of its common shares for $3.0 billion,
resulting in a total return of capital to shareholders of $4.2
billion, compared to $1.7 billion in the prior year period.
For the six months ended June 30, 2022, Comcast paid dividends
totaling $2.4 billion and repurchased 133.4 million of its common
shares for $6.0 billion, resulting in a total return of capital to
shareholders of $8.4 billion, compared to $2.7 billion in 2021.
Cable Communications
($ in millions)
2nd
Quarter
Year to
Date
2022
2021
Change
2022
2021
Change
Cable Communications Revenue
Broadband
$6,107
$5,717
6.8
%
$12,158
$11,317
7.4
%
Video
5,423
5,554
(2.4
%)
10,959
11,177
(2.0
%)
Voice
763
870
(12.3
%)
1,549
1,741
(11.0
%)
Wireless
722
556
29.8
%
1,399
1,069
30.9
%
Business Services
2,424
2,202
10.1
%
4,820
4,369
10.3
%
Advertising
748
679
10.2
%
1,419
1,296
9.4
%
Other
415
425
(2.3
%)
839
838
0.1
%
Cable Communications Revenue
$16,601
$16,002
3.7
%
$33,142
$31,807
4.2
%
Cable Communications Adjusted
EBITDA
$7,448
$7,073
5.3
%
$14,720
$13,903
5.9
%
Adjusted EBITDA Margin
44.9%
44.2%
44.4%
43.7%
Cable Communications Capital
Expenditures
$1,776
$1,695
4.8
%
$3,143
$3,065
2.5
%
Percent of Cable Communications
Revenue
10.7%
10.6%
9.5%
9.6%
Revenue for Cable Communications increased 3.7% to $16.6
billion in the second quarter of 2022, driven by increases in
broadband, business services, wireless, and advertising revenue,
partially offset by decreases in video, voice, and other revenue.
Broadband revenue increased 6.8% due to an increase in average
rates and an increase in the number of residential broadband
customers compared to the prior year period. Business services
revenue increased 10.1% due to an increase in average rates, an
increase in the number of customers receiving our services, and
from a recent acquisition. Wireless revenue increased 29.8%,
primarily due to an increase in the number of customer lines.
Advertising revenue increased 10.2%, primarily driven by increases
in political advertising and at our advanced advertising
businesses, as well as advertising at our Xumo streaming service.
Excluding political advertising revenue, advertising revenue
increased 1.2%. Video revenue decreased 2.4%, reflecting a decrease
in the number of residential video customers, partially offset by
an increase in average rates. Voice revenue decreased 12.3%,
primarily reflecting a decrease in the number of residential voice
customers. Other revenue decreased 2.3%.
For the six months ended June 30, 2022, Cable revenue increased
4.2% to $33.1 billion compared to 2021, driven by growth in
broadband, business services, wireless, advertising, and other
revenue, partially offset by a decrease in video and voice
revenue.
Total Customer Relationships decreased by 28,000 to 34.4
million in the second quarter of 2022. Residential customer
relationships decreased by 38,000 and business customer
relationships increased by 10,000. Total broadband customers of
32.2 million were flat compared to the first quarter of 2022, total
video customer net losses were 521,000, and total voice customer
net losses were 286,000. In addition, Cable Communications added
317,000 wireless lines in the quarter.
For the six months ended June 30, 2022, total customer
relationships increased by 166,000. Residential customer
relationships increased by 147,000 and business customer
relationships increased by 19,000. Total broadband customer net
additions were 262,000, total video customer net losses were 1.0
million, and total voice customer net losses were 568,000. In
addition, Cable Communications added 635,000 wireless lines in the
current period.
(in thousands)
Net
Additions / (Losses)
2nd
Quarter
Year to
Date
2Q22
2Q21
2022
2021
2022
2021
Customer Relationships
Residential Customer Relationships
31,875
31,339
(38
)
277
147
647
Business Services Customer
Relationships
2,508
2,454
10
17
19
28
Total Customer Relationships
34,384
33,793
(28
)
294
166
675
Residential Customer Relationships
Mix
One Product Residential Customers
15,123
13,477
307
480
793
1,069
Two Product Residential Customers
8,282
8,562
(82
)
(83
)
(125
)
(173
)
Three or More Product Residential
Customers
8,471
9,299
(263
)
(120
)
(521
)
(250
)
Residential Broadband Customers
29,826
29,108
(10
)
334
243
782
Business Services Broadband Customers
2,337
2,280
10
20
19
32
Total Broadband Customers
32,163
31,388
—
354
262
814
Residential Video Customers
16,513
18,225
(497
)
(364
)
(982
)
(768
)
Business Services Video Customers
631
731
(23
)
(34
)
(50
)
(121
)
Total Video Customers
17,144
18,956
(521
)
(399
)
(1,032
)
(889
)
Residential Voice Customers
8,497
9,412
(284
)
(121
)
(566
)
(233
)
Business Services Voice Customers
1,389
1,376
(1
)
13
(2
)
19
Total Voice Customers
9,886
10,788
(286
)
(108
)
(568
)
(214
)
Total Wireless Lines
4,615
3,383
317
280
635
558
Adjusted EBITDA for Cable Communications increased 5.3%
to $7.4 billion in the second quarter of 2022, reflecting higher
revenue, partially offset by a 2.5% increase in operating expenses.
Programming costs decreased 1.6%, reflecting a decline in the
number of video subscribers, partially offset by contractual rate
increases. Non-programming expenses increased 5.2%, primarily
reflecting higher other expenses and technical and product support
expenses, partially offset by lower franchise and regulatory fees
and customer service expenses. Adjusted EBITDA per customer
relationship increased 3.0%, and Adjusted EBITDA margin was 44.9%
compared to 44.2% in the prior year period.
For the six months ended June 30, 2022, Adjusted EBITDA for
Cable Communications increased 5.9% to $14.7 billion compared to
2021, reflecting higher revenue, partially offset by a 2.9%
increase in operating expenses. Programming costs decreased 1.3%,
reflecting a decline in the number of video subscribers, partially
offset by contractual rate increases. Non-programming expenses
increased 5.8%. For the six months ended June 30, 2022, Adjusted
EBITDA per customer relationship increased 3.3%, and Adjusted
EBITDA margin was 44.4% compared to 43.7% in 2021.
Capital Expenditures for Cable Communications increased
4.8% to $1.8 billion in the second quarter of 2022, primarily
reflecting increased investment in line extensions, scalable
infrastructure, and support capital, partially offset by decreased
investment in customer premise equipment. Cable capital
expenditures represented 10.7% of Cable revenue in the second
quarter of 2022 compared to 10.6% in the prior year period.
For the six months ended June 30, 2022, Cable capital
expenditures increased 2.5% to $3.1 billion, primarily reflecting
increased investment in line extensions, scalable infrastructure,
and support capital, partially offset by decreased investment in
customer premise equipment. Cable capital expenditures represented
9.5% of Cable revenue compared to 9.6% in 2021.
NBCUniversal
($ in millions)
2nd
Quarter
Year to
Date
2022
2021
Change
2022
2021
Change
NBCUniversal Revenue
Media
$5,332
$5,148
3.6
%
$12,196
$10,184
19.8
%
Excluding Olympics and Super Bowl5
$5,332
$5,148
3.6
%
$ 10,715
$ 10,184
5.2
%
Studios
2,966
2,224
33.3
%
5,722
4,620
23.9
%
Theme Parks
1,804
1,095
64.8
%
3,364
1,714
96.3
%
Headquarters and other
8
22
(63.9
%)
24
38
(35.9
%)
Eliminations
(664
)
(534
)
(24.5
%)
(1,566
)
(1,576
)
0.7
%
NBCUniversal Revenue
$9,445
$7,955
18.7
%
$19,741
$14,980
31.8
%
NBCUniversal Adjusted EBITDA
Media
$1,337
$1,378
(2.9
%)
$2,496
$2,851
(12.4
%)
Studios
1
156
(99.5
%)
246
653
(62.4
%)
Theme Parks
632
221
186.5
%
1,082
159
NM
Headquarters and other
(137
)
(186
)
26.3
%
(329
)
(395
)
16.8
%
Eliminations
23
(15
)
NM
(39
)
(225
)
82.7
%
NBCUniversal Adjusted EBITDA
$1,856
$1,553
19.5
%
$3,457
$3,043
13.6
%
NM=comparison not meaningful.
Revenue for NBCUniversal increased 18.7% to $9.4 billion
in the second quarter of 2022. Adjusted EBITDA increased
19.5% to $1.9 billion.
For the six months ended June 30, 2022, NBCUniversal revenue
increased 31.8% to $19.7 billion compared to 2021. Adjusted EBITDA
increased 13.6% to $3.5 billion.
Media Media revenue increased 3.6% to $5.3 billion in the
second quarter of 2022, primarily reflecting higher distribution
revenue, partially offset by lower advertising revenue.
Distribution revenue increased 8.4%, driven by increases at Peacock
and contractual rate increases, partially offset by a decline in
subscribers at our networks. Advertising revenue decreased 1.3%,
reflecting a decline in ratings in the current year period and a
higher number of sporting events in the prior year period,
partially offset by higher pricing and additional Peacock sales.
Adjusted EBITDA decreased 2.9% to $1.3 billion in the second
quarter of 2022, reflecting higher operating expenses, which more
than offset higher revenue. The increase in operating expenses was
primarily due to higher costs at Peacock. Media results include
$444 million of revenue and an Adjusted EBITDA6 loss of $467
million related to Peacock, compared to $122 million of revenue and
an Adjusted EBITDA6 loss of $363 million in the prior year
period.
For the six months ended June 30, 2022, revenue from the Media
segment increased 19.8% to $12.2 billion compared to 2021,
primarily due to higher advertising revenue and distribution
revenue. Excluding $963 million of revenue generated by the
broadcast of the 2022 Beijing Olympics and $519 million of revenue
generated by the broadcast of the NFL's Super Bowl in the first
quarter of 2022, Media revenue increased 5.2%. Adjusted EBITDA
decreased 12.4% to $2.5 billion compared to 2021, reflecting higher
operating expenses, which more than offset higher revenue. The
increase in operating expenses was primarily driven by higher
programming and production expenses, primarily reflecting higher
sports programming costs associated with the broadcasts of 2022
Beijing Olympics and the NFL's Super Bowl, as well as higher
programming costs at Peacock. Media results include $916 million of
revenue and an Adjusted EBITDA6 loss of $924 million related to
Peacock, compared to $213 million of revenue and an Adjusted
EBITDA6 loss of $640 million in 2021.
Studios Studios revenue increased 33.3% to $3.0 billion
in the second quarter of 2022, primarily reflecting higher
theatrical revenue and content licensing revenue. Theatrical
revenue increased $352 million to $550 million, primarily due to an
increase in the number of theatrical releases in the current year
period, including the successful release of Jurassic World:
Dominion. Content licensing revenue increased 19.0%, driven by
television content licensing. Adjusted EBITDA decreased $155
million to $1 million in the second quarter of 2022, reflecting
higher operating expenses, which more than offset higher revenue.
The increase in operating expenses was driven by higher programming
and production expenses, reflecting higher amortization of
television and film production costs in the current year period, as
well as an increase in advertising, marketing and promotion
expenses ahead of recent film releases, Jurassic World: Dominion
and Minions: The Rise of Gru.
For the six months ended June 30, 2022, revenue from the Studios
segment increased 23.9% to $5.7 billion compared to 2021, primarily
reflecting higher content licensing revenue and theatrical revenue.
Adjusted EBITDA decreased 62.4% to $246 million compared to 2021,
reflecting higher operating expenses, which more than offset higher
revenue.
Theme Parks Theme Parks revenue increased 64.8% to $1.8
billion in the second quarter of 2022, due to higher attendance and
increases in guest spending at our parks in the U.S. and Japan
compared to the prior year period. Universal Beijing Resort was
closed for most of the second quarter of 2022 due to local
COVID-19-related prevention and control requirements, then resumed
operations with restricted capacity in late June. Theme Parks
Adjusted EBITDA increased $411 million to $632 million in the
second quarter of 2022, reflecting higher revenue, partially offset
by higher operating expenses.
For the six months ended June 30, 2022, revenue from the Theme
Parks segment increased 96.3% to $3.4 billion compared to 2021,
primarily reflecting improved operating conditions compared to
2021, when each of our theme parks in the U.S. and Japan was either
operating at limited capacity or closed during certain periods as a
result of COVID-19. Adjusted EBITDA increased $923 million to $1.1
billion compared to 2021, reflecting higher revenue, partially
offset by higher operating expenses.
Headquarters and Other NBCUniversal Headquarters and
Other includes overhead, personnel costs and costs associated with
corporate initiatives. Headquarters and Other Adjusted EBITDA loss
in the second quarter of 2022 was $137 million, compared to a loss
of $186 million in the prior year period.
For the six months ended June 30, 2022, Headquarters and Other
Adjusted EBITDA loss was $329 million, compared to a loss of $395
million in 2021.
Eliminations Amounts represent eliminations of
transactions between our NBCUniversal segments, which are affected
by the timing of recognition of content licenses between our
Studios and Media segments. Revenue eliminations in the second
quarter of 2022 were $664 million, compared to $534 million in the
prior year period, and Adjusted EBITDA eliminations were a benefit
of $23 million, compared to a loss of $15 million in the prior year
period.
For the six months ended June 30, 2022, revenue eliminations of
$1.6 billion were consistent with 2021. Adjusted EBITDA
eliminations were $39 million, compared to $225 million in 2021.
The year-over-year change was primarily driven by the licensing of
content by the Studios segment to Peacock in the Media segment.
Sky
($ in millions)
2nd
Quarter
Year to
Date
2022
2021
Change
Constant Currency Change7
2022
2021
Change
Constant Currency Change7
Sky Revenue
Direct-to-Consumer
$3,680
$4,222
(12.8
%)
(2.4
%)
$7,564
$8,288
(8.7
%)
(1.4
%)
Content
265
355
(25.3
%)
(16.4
%)
561
713
(21.4
%)
(15.4
%)
Advertising
556
643
(13.5
%)
(3.1
%)
1,152
1,216
(5.3
%)
2.3
%
Sky Revenue
$4,501
$5,220
(13.8
%)
(3.5
%)
$9,276
$10,217
(9.2
%)
(1.9
%)
Sky Operating Costs and
Expenses
$3,639
$4,660
(21.9
%)
(12.5
%)
$7,791
$9,294
(16.2
%)
(9.3
%)
Sky Adjusted EBITDA
$863
$560
54.1
%
70.7
%
$1,485
$924
60.8
%
70.9
%
Adjusted EBITDA Margin
19.2%
10.7%
16.0%
9.0%
Revenue for Sky decreased 13.8% to $4.5 billion in the
second quarter of 2022. Excluding the impact of currency, revenue
decreased 3.5% compared to the prior year period, primarily
reflecting lower direct-to-consumer revenue, content revenue, and
advertising revenue. Direct-to-consumer revenue decreased 2.4% to
$3.7 billion due to a decrease in customer relationships and
average revenue per customer relationship in Italy and Germany
compared to the prior year period, including the impact of resets
in our sports rights, partially offset by an increase in customer
relationships and average revenue per customer relationship in the
U.K. compared to the prior year period. Content revenue decreased
16.4% to $265 million, primarily due to a change in sports
programming licensing agreements in Italy and Germany. Advertising
revenue decreased 3.1% to $556 million, reflecting lower
advertising revenue in Italy primarily associated with the reset in
our sports rights, which more than offset higher advertising
revenue in the U.K. and Germany.
For the six months ended June 30, 2022, Sky revenue decreased
9.2% to $9.3 billion compared to 2021. Excluding the impact of
currency, revenue decreased 1.9%, reflecting lower
direct-to-consumer revenue and content revenue, which more than
offset higher advertising revenue.
Total Customer Relationships decreased by 255,000 to 22.7
million in the second quarter of 2022. For the six months ended
June 30, 2022, total customer relationships decreased by
361,000.
(in thousands)
Customers
Net
Additions / (Losses)
2nd
Quarter
Year to
Date
2Q22
2Q21
2022
2021
2022
2021
Total Customer Relationships
22,666
23,198
(255)
(248)
(361)
(26)
Adjusted EBITDA for Sky increased 54.1% to $863 million
in the second quarter of 2022. Excluding the impact of currency,
Adjusted EBITDA increased 70.7% compared to the prior year period,
reflecting lower operating expenses, which more than offset lower
revenue. The decrease in operating expenses was due to lower
programming and production expenses, primarily reflecting resets in
our sports rights in Italy and Germany.
For the six months ended June 30, 2022, Adjusted EBITDA for Sky
increased 60.8% to $1.5 billion compared to 2021. Excluding the
impact of currency, Adjusted EBITDA increased 70.9%.
Corporate, Other and Eliminations
Corporate and Other Corporate and Other primarily relates
to corporate operations, Comcast Spectacor, and our new smart TV
initiatives. Revenue in the second quarter of 2022 was $164 million
compared to $92 million in the prior year period. Corporate and
Other Adjusted EBITDA loss was $304 million compared to a loss of
$261 million in the prior year period.
For the six months ended June 30, 2022, Corporate and Other
revenue was $402 million compared to $181 million in 2021.
Corporate and Other Adjusted EBITDA loss was $566 million compared
to a loss of $541 million in 2021.
Eliminations Amounts represent eliminations of
transactions between Cable Communications, NBCUniversal, Sky and
other businesses. Eliminations of transactions between NBCUniversal
segments are presented separately. Revenue eliminations in the
second quarter of 2022 were $696 million compared to $723 million
in the prior year period, and Adjusted EBITDA eliminations were a
loss of $36 million compared to a benefit of $2 million in the
prior year period.
For the six months ended June 30, 2022, revenue eliminations
were $1.5 billion compared to $1.4 billion in 2021, and Adjusted
EBITDA eliminations were a loss of $119 million compared to a
benefit of $11 million in 2021. Current year amounts reflect an
increase in eliminations associated with the 2022 Beijing
Olympics.
Notes:
1
We define Adjusted Net Income and Adjusted
EPS as net income attributable to Comcast Corporation and diluted
earnings per common share attributable to Comcast Corporation
shareholders, respectively, adjusted to exclude the effects of the
amortization of acquisition-related intangible assets, investments
that investors may want to evaluate separately (such as based on
fair value) and the impact of certain events, gains, losses or
other charges that affect period-over-period comparisons. See Table
5 for reconciliations of non-GAAP financial measures.
2
We define Adjusted EBITDA as net income
attributable to Comcast Corporation before net income (loss)
attributable to noncontrolling interests, income tax expense,
investment and other income (loss), net, interest expense,
depreciation and amortization expense, and other operating gains
and losses (such as impairment charges related to fixed and
intangible assets and gains or losses on the sale of long-lived
assets), if any. From time to time, we may exclude from Adjusted
EBITDA the impact of certain events, gains, losses or other charges
(such as significant legal settlements) that affect the
period-to-period comparability of our operating performance. See
Table 4 for reconciliation of non-GAAP financial measure.
3
All earnings per share amounts are
presented on a diluted basis.
4
We define Free Cash Flow as net cash
provided by operating activities (as stated in our Consolidated
Statement of Cash Flows) reduced by capital expenditures and cash
paid for intangible assets. From time to time, we may exclude from
Free Cash Flow the impact of certain cash receipts or payments
(such as significant legal settlements) that affect
period-to-period comparability. Cash payments related to certain
capital or intangible assets, such as the construction of Universal
Beijing Resort, are presented separately in our Consolidated
Statement of Cash Flows and are therefore excluded from capital
expenditures and cash paid for intangible assets for Free Cash
Flow. See Table 4 for reconciliation of non-GAAP financial
measure.
5
From time to time, we may present adjusted
information (e.g., Adjusted Revenues) to exclude the impact of
certain events, gains, losses or other charges affecting
period-to-period comparability of our operating performance. See
Table 7 for reconciliations of non-GAAP financial measures.
6
Adjusted EBITDA is the measure of profit
or loss for our segments. From time to time, we may present
Adjusted EBITDA for components of our reportable segments, such as
Peacock. We believe these measures are useful to evaluate our
financial results and provide a basis of comparison to others,
although our definition of Adjusted EBITDA may not be directly
comparable to similar measures used by other companies. Adjusted
EBITDA for components are generally presented on a consistent basis
with the respective segments and include direct revenue and
operating costs and expenses attributed to the component
operations.
7
Sky constant currency growth rates are
calculated by comparing the current period results to the
comparative period results in the prior year adjusted to reflect
the average exchange rates from the current year period rather than
the actual exchange rates in effect during the respective prior
year periods. See Table 6 for reconciliation of Sky's constant
currency growth.
Numerical information is presented on a
rounded basis using actual amounts. Minor differences in totals and
percentage calculations may exist due to rounding.
Conference Call and Other Information Comcast Corporation
will host a conference call with the financial community today,
July 28, 2022 at 8:30 a.m. Eastern Time (ET). The conference call
and related materials will be broadcast live and posted on our
Investor Relations website at www.cmcsa.com. Those parties
interested in participating via telephone should dial (929)
477-0336 with the conference ID number 722005. A replay of the call
will be available starting at 11:30 a.m. ET on Thursday, July 28,
2022 on the Investor Relations website or by telephone. To access
the telephone replay, which will be available until Thursday,
August 4, 2022 at 11:30 a.m. ET, please dial (719) 457-0820 and
enter the conference ID number 1292809.
From time to time, we post information that may be of interest
to investors on our website at www.cmcsa.com and on our corporate
website, www.comcastcorporation.com. To automatically receive
Comcast financial news by email, please visit www.cmcsa.com and
subscribe to email alerts.
Caution Concerning Forward-Looking Statements This press
release includes statements that may constitute forward-looking
statements. Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date they
are made, and involve risks and uncertainties that could cause
actual events or our actual results to differ materially from those
expressed in any such forward-looking statements. In evaluating
these statements, readers should consider various factors,
including the risks and uncertainties we describe in the “Risk
Factors” sections of our most recent Annual Report on Form 10-K,
our most recent Quarterly Report on Form 10-Q and other reports
filed with the Securities and Exchange Commission (SEC). We
undertake no obligation to update or revise publicly any
forward-looking statements, whether because of new information,
future events or otherwise.
Non-GAAP Financial Measures In this discussion, we
sometimes refer to financial measures that are not presented
according to generally accepted accounting principles in the U.S.
(GAAP). Certain of these measures are considered “non-GAAP
financial measures” under the SEC regulations; those rules require
the supplemental explanations and reconciliations that are in
Comcast’s Form 8-K (Quarterly Earnings Release) furnished to the
SEC.
About Comcast Corporation Comcast Corporation (Nasdaq:
CMCSA) is a global media and technology company that connects
people to moments that matter. We are principally focused on
connectivity, aggregation, and streaming with 57 million customer
relationships across the United States and Europe. We deliver
broadband, wireless, and video through our Xfinity, Comcast
Business, and Sky brands; create, distribute, and stream leading
entertainment, sports, and news through Universal Filmed
Entertainment Group, Universal Studio Group, Sky Studios, the NBC
and Telemundo broadcast networks, multiple cable networks, Peacock,
NBCUniversal News Group, NBC Sports, Sky News, and Sky Sports; and
provide memorable experiences at Universal Parks and Resorts in the
United States and Asia. Visit www.comcastcorporation.com for more
information.
TABLE 1
Condensed Consolidated Statement of
Income (Unaudited)
Three Months Ended
Six Months Ended
(in millions, except per share data)
June 30,
June 30,
2022
2021
2022
2021
Revenue
$30,016
$28,546
$61,026
$55,751
Costs and expenses
Programming and production
8,887
9,256
19,457
18,175
Other operating and administrative
9,098
8,549
18,358
16,818
Advertising, marketing and promotion
2,196
1,851
4,258
3,467
Depreciation
2,162
2,113
4,375
4,231
Amortization
1,306
1,270
2,641
2,514
23,649
23,039
49,089
45,205
Operating income
6,367
5,507
11,936
10,546
Interest expense
(968
)
(1,093
)
(1,962
)
(2,112
)
Investment and other income (loss),
net
Equity in net income (losses) of
investees, net
(413
)
959
(280
)
1,095
Realized and unrealized gains (losses) on
equity securities, net
(321
)
189
(205
)
426
Other income (loss), net
(162
)
69
(224
)
87
(897
)
1,216
(709
)
1,607
Income before income taxes
4,502
5,630
9,266
10,042
Income tax expense
(1,261
)
(2,000
)
(2,548
)
(3,119
)
Net income
3,241
3,630
6,717
6,922
Less: Net income (loss) attributable to
noncontrolling interests
(155
)
(108
)
(227
)
(145
)
Net income attributable to Comcast
Corporation
$3,396
$3,738
$6,945
$7,067
Diluted earnings per common share
attributable to Comcast Corporation shareholders
$0.76
$0.80
$1.54
$1.51
Diluted weighted-average number of common
shares
4,482
4,673
4,520
4,669
TABLE 2
Consolidated Statement of Cash Flows
(Unaudited)
Six Months Ended
(in millions)
June 30,
2022
2021
OPERATING ACTIVITIES
Net income
$6,717
$6,922
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
7,016
6,745
Share-based compensation
675
711
Noncash interest expense (income), net
165
210
Net (gain) loss on investment activity and
other
864
(1,403
)
Deferred income taxes
(31
)
1,297
Changes in operating assets and
liabilities, net of effects of acquisitions and divestitures:
Current and noncurrent receivables,
net
(338
)
137
Film and television costs, net
651
837
Accounts payable and accrued expenses
related to trade creditors
78
299
Other operating assets and liabilities
(2,214
)
(398
)
Net cash provided by operating
activities
13,584
15,357
INVESTING ACTIVITIES
Capital expenditures
(4,270
)
(4,003
)
Cash paid for intangible assets
(1,383
)
(1,283
)
Construction of Universal Beijing
Resort
(168
)
(704
)
Acquisitions, net of cash acquired
—
(168
)
Proceeds from sales of businesses and
investments
108
396
Purchases of investments
(1,164
)
(86
)
Other
86
217
Net cash provided by (used in) investing
activities
(6,792
)
(5,631
)
FINANCING ACTIVITIES
Proceeds from borrowings
166
383
Repurchases and repayments of debt
(254
)
(5,785
)
Repurchases of common stock under
repurchase program and employee plans
(6,288
)
(957
)
Dividends paid
(2,377
)
(2,230
)
Other
116
(475
)
Net cash provided by (used in) financing
activities
(8,636
)
(9,064
)
Impact of foreign currency on cash, cash
equivalents and restricted cash
(76
)
(12
)
Increase (decrease) in cash, cash
equivalents and restricted cash
(1,920
)
650
Cash, cash equivalents and restricted
cash, beginning of period
8,778
11,768
Cash, cash equivalents and restricted
cash, end of period
$6,859
$12,418
TABLE 3
Condensed Consolidated Balance Sheet
(Unaudited)
(in millions)
June 30,
December 31,
2022
2021
ASSETS
Current Assets
Cash and cash equivalents
$6,822
$8,711
Receivables, net
11,956
12,008
Other current assets
5,415
4,088
Total current assets
24,192
24,807
Film and television costs
11,622
12,806
Investments
7,598
8,082
Investment securing collateralized
obligation
642
605
Property and equipment, net
53,508
54,047
Goodwill
66,486
70,189
Franchise rights
59,365
59,365
Other intangible assets, net
30,728
33,580
Other noncurrent assets, net
12,892
12,424
$267,032
$275,905
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued expenses
related to trade creditors
$12,304
$12,455
Accrued participations and residuals
1,749
1,822
Deferred revenue
2,787
3,040
Accrued expenses and other current
liabilities
8,663
9,899
Current portion of long-term debt
2,083
2,132
Total current liabilities
27,585
29,348
Long-term debt, less current portion
91,459
92,718
Collateralized obligation
5,171
5,170
Deferred income taxes
29,491
30,041
Other noncurrent liabilities
20,254
20,620
Redeemable noncontrolling interests
513
519
Equity
Comcast Corporation shareholders'
equity
91,426
96,092
Noncontrolling interests
1,132
1,398
Total equity
92,558
97,490
$267,032
$275,905
TABLE 4
Reconciliation from Net Income
Attributable to Comcast Corporation to Adjusted EBITDA
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
(in millions)
2022
2021
2022
2021
Net income attributable to Comcast
Corporation
$3,396
$3,738
$6,945
$7,067
Net income (loss) attributable to
noncontrolling interests
(155
)
(108
)
(227
)
(145
)
Income tax expense
1,261
2,000
2,548
3,119
Interest expense
968
1,093
1,962
2,112
Investment and other (income) loss,
net
897
(1,216
)
709
(1,607
)
Depreciation and amortization
3,469
3,383
7,016
6,745
Adjustments (1)
(9
)
36
24
48
Adjusted EBITDA
$9,827
$8,927
$18,977
$17,339
Reconciliation from Net Cash Provided
by Operating Activities to Free Cash Flow (Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
(in millions)
2022
2021
2022
2021
Net cash provided by operating
activities
$6,327
$7,606
$13,584
$15,357
Capital expenditures
(2,414
)
(2,144
)
(4,270
)
(4,003
)
Cash paid for capitalized software and
other intangible assets
(743
)
(671
)
(1,383
)
(1,283
)
Free Cash Flow
$3,170
$4,791
$7,930
$10,071
Alternate Presentation of Free Cash
Flow (Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
(in millions)
2022
2021
2022
2021
Adjusted EBITDA
$9,827
$8,927
$18,977
$17,339
Capital expenditures
(2,414
)
(2,144
)
(4,270
)
(4,003
)
Cash paid for capitalized software and
other intangible assets
(743
)
(671
)
(1,383
)
(1,283
)
Cash interest expense
(897
)
(998
)
(1,644
)
(1,909
)
Cash taxes
(2,751
)
(1,745
)
(2,841
)
(1,832
)
Changes in operating assets and
liabilities
(240
)
1,068
(1,715
)
892
Noncash share-based compensation
299
338
675
711
Other (2)
89
17
131
156
Free Cash Flow
$3,170
$4,791
$7,930
$10,071
(1)
2nd quarter and year to date 2022 Adjusted
EBITDA exclude ($9) million and $24 million of other operating and
administrative expense, respectively, related to our investment
portfolio. 2nd quarter and year to date 2021 Adjusted EBITDA
exclude $36 million and $48 million of other operating and
administrative expense, respectively, related to our investment
portfolio and Sky transaction-related costs.
(2)
2nd quarter and year to date 2022 include
decreases of ($9) million and $24 million, respectively, of costs
related to our investment portfolio as these amounts are excluded
from Adjusted EBITDA. 2nd quarter and year to date 2021 include
decreases of $36 million and $48 million, respectively, of costs
related to our investment portfolio and Sky transaction-related
costs.
TABLE 5
Reconciliations of Adjusted Net Income
and Adjusted EPS (Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
(in millions, except per share data)
$
EPS
$
EPS
$
EPS
$
EPS
Net income attributable to Comcast
Corporation and diluted earnings per share attributable to Comcast
Corporation shareholders
$3,396
$0.76
$3,738
$0.80
$6,945
$1.54
$7,067
$1.51
Change
(9.2%)
(5.0%)
(1.7%)
2.0%
Amortization of acquisition-related
intangible assets (1)
460
0.10
472
0.10
941
0.21
949
0.21
Investments (2)
591
0.13
(835)
(0.18)
460
0.10
(1,122)
(0.24)
Items affecting period-over-period
comparability:
Income tax adjustments (3)
—
—
498
0.11
—
—
498
0.11
Loss on early redemption of debt (4)
—
—
59
0.01
—
—
59
0.01
Gains and losses related to businesses and
investments (6)
60
0.01
—
—
60
0.01
—
—
Costs related to Sky transaction (5)
—
—
11
—
—
—
21
—
Adjusted Net income and Adjusted
EPS
$4,507
$1.01
$3,943
$0.84
$8,406
$1.86
$7,472
$1.60
Change
14.3%
20.2%
12.5%
16.3%
(1)
Acquisition-related intangible assets are recognized as a result
of the application of Accounting Standards Codification Topic 805,
Business Combinations (such as customer relationships), and their
amortization is significantly affected by the size and timing of
our acquisitions. Amortization of intangible assets not resulting
from business combinations (such as software and acquired
intellectual property rights used in our theme parks) is included
in Adjusted Net Income and Adjusted EPS.
Three Months Ended June 30,
Six Months Ended
June 30,
2022
2021
2022
2021
Amortization of acquisition-related
intangible assets before income taxes
$568
$586
$1,160
$1,178
Amortization of acquisition-related
intangible assets, net of tax
$460
$472
$941
$949
(2)
Adjustments for investments include realized and unrealized (gains)
losses on equity securities, net (as stated in Table 1), as well as
the equity in net (income) losses of investees, net, for certain
equity method investments, including Atairos and Hulu and costs
related to our investment portfolio.
Three Months Ended June 30,
Six Months Ended June 30,
2022
2021
2022
2021
Realized and unrealized (gains) losses on
equity securities, net
$321
($189
)
$205
($426
)
Equity in net (income) losses of
investees, net and other
461
(917
)
406
(1,050
)
Investments before income taxes
782
(1,106
)
611
(1,476
)
Investments, net of tax
$591
($835
)
$460
($1,122
)
(3)
2nd quarter and year to date 2021 net income attributable to
Comcast Corporation includes $498 million of income tax expense
adjustments related to UK tax law changes.
(4)
2nd quarter and year to date 2021 net income attributable to
Comcast Corporation includes $78 million of interest expense, $59
million net of tax, resulting from the early redemption of
debt.
(5)
2nd quarter and year to date 2021 net income attributable to
Comcast Corporation includes $13 million and $25 million of
operating costs and expenses, $11 million and $21 million net of
tax, respectively, related to the Sky transaction.
(6)
2nd quarter and year to date 2022 net income attributable to
Comcast Corporation includes a loss of $60 million in other income
related to an impairment of an equity method investment.
TABLE 6
Reconciliation of Sky Constant Currency
Growth (Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
(in millions)
2022
2021(1)
Change
2022
2021(1)
Change
Direct-to-Consumer
$3,680
$3,771
(2.4
%)
$7,564
$7,672
(1.4
%)
Content
265
318
(16.4
%)
561
662
(15.4
%)
Advertising
556
574
(3.1
%)
1,152
1,126
2.3
%
Revenue
$4,501
$4,662
(3.5
%)
$9,276
$9,460
(1.9
%)
Operating costs and expenses
$3,639
$4,157
(12.5
%)
$7,791
$8,591
(9.3
%)
Adjusted EBITDA
$863
$505
70.7
%
$1,485
$869
70.9
%
(1)
2021 results for entities reporting in currencies other than
United States dollars are converted into United States dollars
using the average exchange rates from the current period rather
than the actual exchange rates in effect during the respective
periods
TABLE 7
Reconciliation of Media Revenue
Excluding Olympics and 2022 Super Bowl (Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
(in millions)
2022
2021
Growth %
2022
2021
Growth %
Revenue
$5,332
$5,148
3.6
%
$12,196
$10,184
19.8
%
Beijing Olympics
—
—
963
—
2022 Super Bowl
—
—
519
—
Revenue excluding Olympics and 2022 Super
Bowl
$5,332
$5,148
3.6
%
$10,715
$10,184
5.2
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220728005059/en/
Investor Contacts: Marci Ryvicker, (215) 286-4781 Jane
Kearns, (215) 286-4794 Marc Kaplan, (215) 286-6527
Press Contacts: Jennifer Khoury, (215) 286-7408 John
Demming, (215) 286-8011
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