Comcast Corporation (NASDAQ: CMCSA) today reported results for
the quarter ended June 30, 2023.
“The consistent investments we've been making in our growth
businesses continue to generate strong results and position us
extremely well both now and into the future. Second quarter
operational and financial performance was excellent and included a
double-digit increase in Adjusted EPS and significant free cash
flow generation," said Brian L. Roberts, Chairman and Chief
Executive Officer of Comcast Corporation. "This quarter contained a
number of highlights and notable achievements. We not only
continued to deliver solid revenue growth in our connectivity
businesses but also expanded our Adjusted EBITDA margin at
Connectivity & Platforms. We generated the best quarterly
Adjusted EBITDA ever at Theme Parks, had the second-highest
grossing animated film of all time in worldwide box office revenue
with Super Mario Bros., and nearly doubled paid Peacock subscribers
year-over-year. At the same time, we returned a healthy amount of
capital to shareholders and maintained an enviable balance sheet.
Our experienced and expert management team is executing at an
exceptional level, and our long-term-oriented growth strategy is
clearly working."
($ in millions, except per share data)
2nd
Quarter
Consolidated Results
2023
2022
Change
Revenue
$30,513
$30,016
1.7
%
Net Income Attributable to Comcast
$4,248
$3,396
25.1
%
Adjusted Net Income1
$4,723
$4,507
4.8
%
Adjusted EBITDA2
$10,244
$9,827
4.2
%
Earnings per Share3
$1.02
$0.76
34.2
%
Adjusted Earnings per Share1
$1.13
$1.01
11.9
%
Net Cash Provided by Operating
Activities
$7,197
$6,327
13.8
%
Free Cash Flow4
$3,421
$3,170
7.9
%
For additional detail on segment revenue and expenses, customer
metrics, capital expenditures, and free cash flow, please refer to
the trending schedule on Comcast’s Investor Relations website at
www.cmcsa.com.
2nd Quarter 2023 Highlights:
- Consolidated Adjusted EBITDA Increased 4.2% to $10.2 Billion;
Adjusted EPS Increased 11.9% to $1.13; Generated Free Cash Flow of
$3.4 Billion
- Returned $3.2 Billion to Shareholders Through a Combination of
$1.2 Billion in Dividend Payments and $2.0 Billion in Share
Repurchases
- Connectivity & Platforms Adjusted EBITDA Increased 4.4% to
$8.3 Billion and Adjusted EBITDA Margin Increased 170 Basis Points
to 41.0%
- Domestic Broadband Average Rate Per Customer Increased 4.5% and
Drove Domestic Broadband Revenue Growth of 4.4%
- Content & Experiences Adjusted EBITDA Increased 7.5% to
$2.2 Billion, Driven by Studios and Theme Parks
- Studios Adjusted EBITDA Increased $258 Million to $255 Million,
Driven by the Successful Theatrical Performance of The Super Mario
Bros. Movie; Mario Grossed $1.3 Billion in Worldwide Box Office in
the Second Quarter to Become the #2 Animated Picture of
All-Time
- Theme Parks Adjusted EBITDA Increased 32% to $833 Million, Its
Highest Adjusted EBITDA on Record, Reflecting Growth at Universal
Beijing, Universal Japan and Universal Hollywood Compared to the
Prior Year Period
- Peacock Paid Subscribers Nearly Doubled Compared to the Prior
Year Period to 24 Million. Peacock Revenue Increased 85% to $820
Million
Consolidated Financial Results
Revenue increased 1.7%. Net Income Attributable to
Comcast increased 25.1%. Adjusted Net Income increased
4.8%. Adjusted EBITDA increased 4.2%.
Earnings per Share (EPS) increased 34.2% to $1.02.
Adjusted EPS increased 11.9% to $1.13.
Capital Expenditures increased 22.7% to $3.0 billion.
Connectivity & Platforms’ capital expenditures increased 11.4%
to $2.1 billion, primarily reflecting higher investment in line
extensions and scalable infrastructure. Content & Experiences'
capital expenditures increased 74.1% to $809 million, reflecting
increased investment in constructing the Epic Universe theme park
in Orlando, which is scheduled to open in 2025.
Net Cash Provided by Operating Activities was $7.2
billion. Free Cash Flow was $3.4 billion.
Dividends and Share Repurchases. Comcast paid dividends
totaling $1.2 billion and repurchased 50.5 million of its common
shares for $2.0 billion, resulting in a total return of capital to
shareholders of $3.2 billion.
Connectivity & Platforms
($ in millions)
Constant Currency Change6
2nd
Quarter
2023
20225
Change
Connectivity & Platforms
Revenue
Residential Connectivity &
Platforms
$18,068
$18,131
(0.4%)
(0.5%)
Business Services Connectivity
2,292
2,203
4.0%
4.0%
Total Connectivity & Platforms
Revenue
$20,360
$20,335
0.1%
—%
Connectivity & Platforms Adjusted
EBITDA
Residential Connectivity &
Platforms
$7,024
$6,733
4.3%
4.3%
Business Services Connectivity
1,322
1,263
4.7%
4.7%
Total Connectivity & Platforms
Adjusted EBITDA
$8,346
$7,995
4.4%
4.3%
Connectivity & Platforms Adjusted
EBITDA Margin
Residential Connectivity &
Platforms
38.9
%
37.1
%
180 bps
180 bps
Business Services Connectivity
57.7
%
57.3
%
40 bps
40 bps
Total Connectivity & Platforms
Adjusted EBITDA Margin
41.0
%
39.3
%
170 bps
170 bps
Change percentages represent year/year
growth rates. Change in Adjusted EBITDA margin is presented as
year/year basis point changes.
Revenue for Connectivity & Platforms was consistent
with the prior year period. Adjusted EBITDA increased due to
growth in Residential Connectivity & Platforms Adjusted EBITDA
and Business Services Connectivity Adjusted EBITDA. Adjusted
EBITDA margin increased to 41.0%.
(in thousands)
Net
Additions / (Losses)
2nd
Quarter
2Q23
2Q227
2023
20227
Customer Relationships
Domestic Residential Connectivity &
Platforms Customer Relationships
31,761
31,955
(65
)
(38
)
International Residential Connectivity
& Platforms Customer Relationships
17,884
17,788
(167
)
(120
)
Business Services Connectivity Customer
Relationships
2,635
2,608
5
16
Total Connectivity & Platforms
Customer Relationships
52,280
52,351
(228
)
(143
)
Domestic Broadband
Residential Customers
29,796
29,826
(20
)
(10
)
Business Customers
2,509
2,497
1
13
Total Domestic Broadband
Customers
32,305
32,323
(19
)
3
Total Domestic Wireless Lines
5,984
4,615
316
317
Total Domestic Video Customers
14,985
17,144
(543
)
(521
)
Total Customer Relationships for Connectivity &
Platforms decreased by 228,000 to 52.3 million. Decreases in
international residential connectivity & platforms customer
relationships as well as domestic residential connectivity &
platforms customer relationships were partially offset by an
increase in business services connectivity customer relationships.
Total domestic broadband customer net losses were 19,000, total
domestic wireless line net additions were 316,000 and total
domestic video customer net losses were 543,000.
Residential Connectivity & Platforms
($ in millions)
Constant Currency Change6
2nd
Quarter
2023
20225
Change
Revenue
Domestic Broadband
$6,377
$6,107
4.4%
4.4%
Domestic Wireless
869
722
20.4%
20.4%
International Connectivity
1,002
791
26.7%
25.9%
Total Residential Connectivity
8,248
7,620
8.2%
8.2%
Video
7,358
7,793
(5.6%)
(5.8%)
Advertising
993
1,112
(10.7%)
(10.9%)
Other
1,469
1,607
(8.6%)
(8.8%)
Total Revenue
$18,068
$18,131
(0.4%)
(0.5%)
Operating Expenses
Programming
$4,579
$4,679
(2.1%)
(2.4%)
Non-Programming
6,465
6,720
(3.8%)
(4.0%)
Total Operating Expenses
$11,044
$11,399
(3.1%)
(3.3%)
Adjusted EBITDA
$7,024
$6,733
4.3%
4.3%
Adjusted EBITDA Margin
38.9
%
37.1
%
180 bps
180 bps
Change percentages represent year/year
growth rates. Change in Adjusted EBITDA margin is presented as
year/year basis point changes.
Revenue for Residential Connectivity & Platforms was
consistent with the prior year period. Growth in residential
connectivity revenue was driven by domestic broadband revenue due
to higher average rates; international connectivity revenue due to
an increase in wireless revenue, reflecting higher sales of devices
and wireless services, as well as an increase in broadband revenue;
and domestic wireless revenue due to an increase in the number of
customer lines. The growth in residential connectivity revenue was
offset by a decrease in video revenue due to a decline in the
number of video customers, partially offset by an increase in
average rates; other revenue primarily due to lower voice revenue,
driven by a decline in the number of residential wireline voice
customers; and advertising revenue primarily due to a decline in
domestic political advertising and overall market weakness.
Adjusted EBITDA for Residential Connectivity &
Platforms increased due to lower operating expenses. Programming
expenses decreased primarily due to the decline in the number of
domestic video customers, partially offset by domestic contractual
rate increases and an increase in programming expenses for
international sports channels. Non-programming expenses decreased
primarily due to lower spending on marketing and promotion, lower
technical and support costs, lower fees paid to third-party
channels relating to advertising sales and lower customer service
costs. These decreases were partially offset by increased direct
product costs associated with our wireless service, resulting from
increases in device sales and the number of customers receiving our
wireless service. Adjusted EBITDA margin increased to
38.9%.
Business Services Connectivity
($ in millions)
Constant Currency Change6
2nd
Quarter
2023
20225
Change
Revenue
$2,292
$2,203
4.0%
4.0%
Operating Expenses
970
941
3.1%
3.1%
Adjusted EBITDA
$1,322
$1,263
4.7%
4.7%
Adjusted EBITDA Margin
57.7
%
57.3
%
40 bps
40 bps
Change percentages represent year/year
growth rates. Change in Adjusted EBITDA margin is presented as
year/year basis point changes.
Revenue for Business Services Connectivity increased due
to an increase in revenue from small, medium-sized and enterprise
customers.
Adjusted EBITDA for Business Services Connectivity
increased due to higher revenue, partially offset by higher
operating expenses. The increase in operating expenses was
primarily due to higher marketing and promotion expenses and direct
product costs. Adjusted EBITDA margin increased to
57.7%.
Content & Experiences
($ in millions)
2nd
Quarter
2023
20225
Change
Content & Experiences
Revenue
Media
$6,195
$6,188
0.1
%
Studios
3,087
3,117
(0.9
%)
Theme Parks
2,209
1,804
22.4
%
Headquarters & Other
13
8
60.5
%
Eliminations
(631
)
(664
)
5.0
%
Total Content & Experiences
Revenue
$10,873
$10,453
4.0
%
Content & Experiences Adjusted
EBITDA
Media
$1,244
$1,520
(18.2
%)
Studios
255
(3
)
NM
Theme Parks
833
632
31.8
%
Headquarters & Other
(200
)
(137
)
(45.6
%)
Eliminations
56
23
141.8
%
Total Content & Experiences
Adjusted EBITDA
$2,187
$2,034
7.5
%
NM=comparison not meaningful.
Revenue for Content & Experiences increased compared
to the prior year period driven by Theme Parks. Adjusted
EBITDA for Content & Experiences increased due to growth in
Studios and Theme Parks, partially offset by a decrease in Media,
driven by higher costs at Peacock as the service scales.
Media
($ in millions)
2nd
Quarter
2023
20225
Change
Revenue
Domestic Advertising
$2,027
$2,131
(4.9
%)
Domestic Distribution
2,615
2,558
2.2
%
International Networks
1,035
970
6.7
%
Other
518
529
(2.0
%)
Total Revenue
$6,195
$6,188
0.1
%
Operating Expenses
4,951
4,669
6.0
%
Adjusted EBITDA
$1,244
$1,520
(18.2
%)
Revenue for Media was consistent with the prior year
period primarily due to higher international networks and domestic
distribution revenue, offset by lower domestic advertising revenue.
The decrease in domestic advertising revenue was primarily due to
lower revenue at our networks, partially offset by an increase in
revenue at Peacock. International networks revenue increased
primarily reflecting an increase in revenue associated with the
distribution of sports channels. Domestic distribution revenue
increased primarily due to higher revenue at Peacock, driven by an
increase in paid subscribers, partially offset by lower revenue at
our networks.
Adjusted EBITDA for Media decreased primarily due to
higher operating expenses. The increase in operating expenses was
primarily due to higher programming costs at Peacock, as well as
increased international sports programming costs driven by the
shift of certain European football matches and the related
programming expense to the first half of 2023 due to timing of the
2022 FIFA World Cup, partially offset by a decrease in content
costs for our entertainment television networks. Media results in
the second quarter include $820 million of revenue and an Adjusted
EBITDA8 loss of $651 million related to Peacock, compared to $444
million of revenue and an Adjusted EBITDA8 loss of $467 million in
the prior year period.
Studios
($ in millions)
2nd
Quarter
2023
20225
Change
Revenue
Content Licensing
$1,821
$2,269
(19.8
%)
Theatrical
913
550
65.9
%
Other
354
298
19.0
%
Total Revenue
$3,087
$3,117
(0.9
%)
Operating Expenses
2,833
3,120
(9.2
%)
Adjusted EBITDA
$255
($3
)
NM
NM=comparison not meaningful.
Revenue for Studios was consistent with the prior year
period primarily due to higher theatrical revenue, driven by recent
releases, including The Super Mario Bros. Movie and Fast X, offset
by lower content licensing revenue, which was primarily due to the
timing of when content was made available by our television studios
under licensing agreements, partially offset by the timing of when
content was made available by our film studios.
Adjusted EBITDA for Studios increased primarily due to
lower operating expenses. The decrease in operating expenses
reflected lower programming and production expenses, primarily due
to lower costs associated with lower content licensing sales,
partially offset by higher spending on recent theatrical
releases.
Theme Parks
($ in millions)
2nd
Quarter
2023
2022
Change
Revenue
$2,209
$1,804
22.4
%
Operating Expenses
1,376
1,173
17.4
%
Adjusted EBITDA
$833
$632
31.8
%
Revenue for Theme Parks increased driven by higher
revenue at our international theme parks, which had COVID-19
related restrictions in the prior year period. Domestic theme parks
revenue remained consistent primarily due to higher revenue at our
theme park in Hollywood driven by the opening of Super Nintendo
World, offset by lower revenue at our theme park in Orlando which
continues to be above pre-pandemic levels.
Adjusted EBITDA for Theme Parks increased, reflecting
higher revenue, which more than offset higher operating expenses.
The increase in operating expenses was due to higher costs
primarily associated with increased guest attendance.
Headquarters & Other
Content & Experiences Headquarters & Other includes
overhead, personnel costs and costs associated with corporate
initiatives. Headquarters & Other Adjusted EBITDA loss in the
second quarter was $200 million, compared to a loss of $137 million
in the prior year period.
Eliminations
Amounts represent eliminations of transactions between our
Content & Experiences segments, the most significant being
content licensing between the Studios and Media segments, which are
affected by the timing of recognition of content licenses. Revenue
eliminations were $631 million, compared to $664 million in the
prior year period, and Adjusted EBITDA eliminations were a benefit
of $56 million, compared to a benefit of $23 million in the prior
year period.
Corporate, Other and Eliminations
($ in millions)
2nd
Quarter
2023
20225
Change
Corporate & Other
Revenue
$654
$617
6.0
%
Operating Expenses
957
784
22.1
%
Adjusted EBITDA
($303
)
($167
)
(81.4
%)
Eliminations
Revenue
($1,373
)
($1,389
)
(1.2
%)
Operating Expenses
(1,386
)
(1,353
)
2.5
%
Adjusted EBITDA
$14
($36
)
NM
NM=comparison not meaningful.
Corporate & Other Corporate & Other primarily
includes overhead and personnel costs; certain Sky operations;
Comcast Spectacor, which owns the Philadelphia Flyers and the Wells
Fargo Center arena in Philadelphia, Pennsylvania; and Xumo, our
consolidated streaming platform joint venture beginning in June
2022.
Adjusted EBITDA loss for Corporate & Other increased,
reflecting higher operating expenses primarily due to higher costs
related to Xumo and certain Sky operations.
Eliminations Amounts represent eliminations of
transactions between Connectivity & Platforms, Content &
Experiences and other businesses, the most significant being
distribution of television network programming between the Media
and Residential Connectivity & Platforms segments. Revenue
eliminations were $1.4 billion, consistent with the prior year
period, and Adjusted EBITDA eliminations were a benefit of $14
million compared to a loss of $36 million in the prior year
period.
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
Beginning in the first quarter of
2023, we changed our presentation of segment operating results
around our two primary businesses, Connectivity & Platforms and
Content & Experiences. We have updated certain historical
information as a result of these changes, including: (1)
presentation of Cable Communications results in the Residential
Connectivity & Platforms and Business Services Connectivity
segments and (2) presentation of Sky's results across the
Connectivity & Platforms and Content & Entertainment
segments, and Corporate & Other.
6
Constant currency growth rates
are calculated by comparing the results for each comparable prior
year period adjusted to reflect the average exchange rates from
each current period presented, rather than the actual exchange
rates that were in effect during the respective periods. See Table
6 for reconciliations of non-GAAP financial measures.
7
Customer metrics for 2022 have
been updated to reflect the new segment presentation, and to align
methodologies for counting business customer metrics to: (1)
include locations receiving our services outside of our
distribution system and (2) now count certain customers based on
the number of locations receiving services, including arrangements
whereby third parties provide connectivity services leveraging our
distribution system. These changes in methodology were not material
to any period presented. Previously reported total Sky customer
relationships of approximately 23 million as of December 31, 2022
also included approximately 5 million customer relationships
outside of the Connectivity & Platforms markets.
8
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.
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 27, 2023, 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. A replay of the call
will be available starting at 11:30 a.m. ET on Thursday, July 27,
2023, on the Investor Relations website.
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. 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).
Factors that could cause our actual results to differ materially
from these forward-looking statements include changes in and/or
risks associated with: the competitive environment; consumer
behavior; the advertising market; programming costs; consumer
acceptance of our content; key distribution and/or licensing
agreements; use and protection of our intellectual property; our
reliance on third-party hardware, software and operational support;
keeping pace with technological developments; cyber attacks,
security breaches or technology disruptions; weak economic
conditions; acquisitions and strategic initiatives; operating
businesses internationally; natural disasters, severe
weather-related and other uncontrollable events; loss of key
personnel; laws and regulations; adverse decisions in litigation or
governmental investigations; labor disputes; and other risks
described from time to time in reports and other documents we file
with the SEC. 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. We undertake no
obligation to update or revise publicly any forward-looking
statements, whether because of new information, future events or
otherwise. The amount and timing of any dividends and share
repurchases are subject to business, economic and other relevant
factors.
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. From the
connectivity and platforms we provide, to the content and
experiences we create, our businesses reach hundreds of millions of
customers, viewers, and guests worldwide. We deliver world-class
broadband, wireless, and video through Xfinity, Comcast Business,
and Sky; produce, distribute, and stream leading entertainment,
sports, and news through brands including NBC, Telemundo,
Universal, Peacock, and Sky; and bring incredible theme parks and
attractions to life through Universal Destinations &
Experiences. Visit www.comcastcorporation.com for more
information.
TABLE 1
Condensed Consolidated Statements of
Income (Unaudited)
Three Months Ended
Six Months Ended
(in millions, except per share data)
June 30,
June 30,
2023
2022
2023
2022
Revenue
$30,513
$30,016
$60,205
$61,026
Costs and expenses
Programming and production
8,849
8,887
17,853
19,457
Marketing and promotion
2,100
2,196
4,063
4,258
Other operating and administrative
9,317
9,098
18,618
18,358
Depreciation
2,195
2,162
4,459
4,375
Amortization
1,343
1,306
2,856
2,641
23,804
23,649
47,849
49,089
Operating income
6,709
6,367
12,355
11,936
Interest expense
(998
)
(968
)
(2,007
)
(1,962
)
Investment and other income (loss),
net
Equity in net income (losses) of
investees, net
(80
)
(413
)
405
(280
)
Realized and unrealized gains (losses) on
equity securities, net
(38
)
(321
)
(44
)
(205
)
Other income (loss), net
133
(162
)
261
(224
)
15
(897
)
622
(709
)
Income before income taxes
5,726
4,502
10,970
9,266
Income tax expense
(1,537
)
(1,261
)
(3,013
)
(2,548
)
Net income
4,189
3,241
7,957
6,717
Less: Net income (loss) attributable to
noncontrolling interests
(59
)
(155
)
(126
)
(227
)
Net income attributable to Comcast
Corporation
$4,248
$3,396
$8,082
$6,945
Diluted earnings per common share
attributable to Comcast Corporation shareholders
$1.02
$0.76
$1.92
$1.54
Diluted weighted-average number of common
shares
4,183
4,482
4,205
4,520
TABLE 2
Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended
(in millions)
June 30,
2023
2022
OPERATING ACTIVITIES
Net income
$7,957
$6,717
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
7,315
7,016
Share-based compensation
668
675
Noncash interest expense (income), net
140
165
Net (gain) loss on investment activity and
other
(354
)
864
Deferred income taxes
296
(31
)
Changes in operating assets and
liabilities, net of effects of acquisitions and divestitures:
Current and noncurrent receivables,
net
(92
)
(338
)
Film and television costs, net
58
651
Accounts payable and accrued expenses
related to trade creditors
(718
)
78
Other operating assets and liabilities
(843
)
(2,214
)
Net cash provided by operating
activities
14,426
13,584
INVESTING ACTIVITIES
Capital expenditures
(5,627
)
(4,270
)
Cash paid for intangible assets
(1,577
)
(1,383
)
Construction of Universal Beijing
Resort
(104
)
(168
)
Proceeds from sales of businesses and
investments
369
108
Purchases of investments
(593
)
(1,164
)
Other
6
86
Net cash provided by (used in) investing
activities
(7,528
)
(6,792
)
FINANCING ACTIVITIES
Proceeds from (repayments of) short-term
borrowings, net
(660
)
—
Proceeds from borrowings
6,044
166
Repurchases and repayments of debt
(3,001
)
(254
)
Repurchases of common stock under
repurchase program and employee plans
(4,227
)
(6,288
)
Dividends paid
(2,387
)
(2,377
)
Other
(260
)
116
Net cash provided by (used in) financing
activities
(4,492
)
(8,636
)
Impact of foreign currency on cash, cash
equivalents and restricted cash
14
(76
)
Increase (decrease) in cash, cash
equivalents and restricted cash
2,420
(1,920
)
Cash, cash equivalents and restricted
cash, beginning of period
4,782
8,778
Cash, cash equivalents and restricted
cash, end of period
$7,202
$6,859
TABLE 3
Condensed Consolidated Balance Sheets (Unaudited)
(in millions)
June 30,
December 31,
2023
2022
ASSETS
Current Assets
Cash and cash equivalents
$7,146
$4,749
Receivables, net
12,980
12,672
Other current assets
4,796
4,406
Total current assets
24,922
21,826
Film and television costs
12,641
12,560
Investments
7,761
7,250
Investment securing collateralized
obligation
480
490
Property and equipment, net
56,851
55,485
Goodwill
59,042
58,494
Franchise rights
59,365
59,365
Other intangible assets, net
28,761
29,308
Other noncurrent assets, net
12,323
12,497
$262,147
$257,275
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued expenses
related to trade creditors
$12,213
$12,544
Accrued participations and residuals
1,812
1,770
Deferred revenue
3,327
2,380
Accrued expenses and other current
liabilities
7,876
9,450
Current portion of long-term debt
2,524
1,743
Collateralized obligation
5,173
—
Total current liabilities
32,925
27,887
Long-term debt, less current portion
94,972
93,068
Collateralized obligation
—
5,172
Deferred income taxes
29,052
28,714
Other noncurrent liabilities
20,280
20,395
Redeemable noncontrolling interests
239
411
Equity
Comcast Corporation shareholders'
equity
84,119
80,943
Noncontrolling interests
559
684
Total equity
84,679
81,627
$262,147
$257,275
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)
2023
2022
2023
2022
Net income attributable to Comcast
Corporation
$4,248
$3,396
$8,082
$6,945
Net income (loss) attributable to
noncontrolling interests
(59
)
(155
)
(126
)
(227
)
Income tax expense
1,537
1,261
3,013
2,548
Interest expense
998
968
2,007
1,962
Investment and other (income) loss,
net
(15
)
897
(622
)
709
Depreciation
2,195
2,162
4,459
4,375
Amortization
1,343
1,306
2,856
2,641
Adjustments (1)
(3
)
(9
)
(11
)
24
Adjusted EBITDA
$10,244
$9,827
$19,659
$18,977
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)
2023
2022
2023
2022
Net cash provided by operating
activities
$7,197
$6,327
$14,426
$13,584
Capital expenditures
(2,963
)
(2,414
)
(5,627
)
(4,270
)
Cash paid for capitalized software and
other intangible assets
(813
)
(743
)
(1,577
)
(1,383
)
Free Cash Flow
$3,421
$3,170
$7,221
$7,930
Alternate Presentation of Free Cash
Flow (Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(in millions)
2023
2022
2023
2022
Adjusted EBITDA
$10,244
$9,827
$19,659
$18,977
Capital expenditures
(2,963
)
(2,414
)
(5,627
)
(4,270
)
Cash paid for capitalized software and
other intangible assets
(813
)
(743
)
(1,577
)
(1,383
)
Cash interest expense
(1,057
)
(897
)
(1,823
)
(1,644
)
Cash taxes
(2,236
)
(2,751
)
(2,384
)
(2,841
)
Changes in operating assets and
liabilities
(244
)
(240
)
(1,975
)
(1,715
)
Noncash share-based compensation
309
299
668
675
Other (2)
181
89
279
131
Free Cash Flow
$3,421
$3,170
$7,221
$7,930
(1)
2nd quarter and year to date 2023
Adjusted EBITDA exclude $(3) million and $(11) million of other
operating and administrative expenses, respectively, related to our
investment portfolio. 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.
(2)
2nd quarter and year to date 2023
include decreases of $(3) million and $(11) million, respectively,
of costs related to our investment portfolio as these amounts are
excluded from Adjusted EBITDA. 2nd quarter and year to date 2022
include decreases of ($9) million and $24 million, respectively, of
costs related to our investment portfolio.
TABLE 5
Reconciliations of Adjusted Net Income
and Adjusted EPS (Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2023
2022
2023
2022
(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
$4,248
$1.02
$3,396
$0.76
$8,082
$1.92
$6,945
$1.54
Change
25.1%
34.2%
16.4%
24.7%
Amortization of acquisition-related
intangible assets (1)
444
0.11
460
0.10
875
0.21
941
0.21
Investments (2)
31
0.01
591
0.13
(358)
(0.09)
460
0.10
Items affecting period-over-period
comparability:
Gains and losses related to businesses and
investments (3)
—
—
60
0.01
—
—
60
0.01
Adjusted Net income and Adjusted
EPS
$4,723
$1.13
$4,507
$1.01
$8,600
$2.05
$8,406
$1.86
Change
4.8%
11.9%
2.3%
10.2%
(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,
2023
2022
2023
2022
Amortization of acquisition-related
intangible assets before income taxes
$572
$568
$1,128
$1,160
Amortization of acquisition-related
intangible assets, net of tax
$444
$460
$875
$941
(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,
2023
2022
2023
2022
Realized and unrealized (gains) losses on
equity securities, net
$38
$321
$44
$205
Equity in net (income) losses of
investees, net and other
3
461
(518
)
406
Investments before income taxes
41
782
(474
)
611
Investments, net of tax
$31
$591
($358
)
$460
(3)
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 Constant Currency
(Unaudited)
Three Months Ended
June 30, 2022
Six Months Ended
June 30, 2022
(in millions, except per customer
data)
As Reported
Effects of Foreign Currency
Constant Currency Amounts
As Reported
Effects of Foreign Currency
Constant Currency Amounts
Reconciliation of Connectivity &
Platforms Constant Currency
Connectivity & Platforms
Revenue
Residential Connectivity &
Platforms
$18,131
$31
$18,162
$36,472
($318
)
$36,154
Business Services Connectivity
2,203
—
2,203
4,375
(1
)
4,374
Total Connectivity & Platforms
Revenue
$20,335
$30
$20,365
$40,846
($318
)
$40,528
Connectivity and Platforms Adjusted
EBITDA
Residential Connectivity &
Platforms
$6,733
$3
$6,736
$13,344
($56
)
$13,288
Business Services Connectivity
1,263
(1)
1,262
2,496
—
2,496
Total Connectivity & Platforms
Adjusted EBITDA
$7,995
$3
$7,998
$15,840
($55
)
$15,785
Connectivity & Platforms Adjusted
EBITDA Margin
Residential Connectivity &
Platforms
37.1%
- bps
37.1%
36.6%
20 bps
36.8%
Business Services Connectivity
57.3%
- bps
57.3%
57.1%
- bps
57.1%
Total Connectivity & Platforms
Adjusted EBITDA Margin
39.3%
- bps
39.3%
38.8%
10 bps
38.9%
Three Months Ended
June 30, 2022
Six Months Ended
June 30, 2022
(in millions, except per customer
data)
As Reported
Effects of Foreign
Currency
Constant Currency Amounts
As Reported
Effects of Foreign
Currency
Constant Currency Amounts
Reconciliation of Residential
Connectivity & Platforms Constant Currency
Revenue
Domestic broadband
$6,107
$—
$6,107
$12,158
$—
$12,158
Domestic wireless
722
—
722
1,399
—
1,399
International connectivity
791
5
796
1,631
(73
)
1,558
Total residential connectivity
$7,620
$5
7,625
$15,187
($73
)
15,114
Video
7,793
19
7,812
15,795
(172
)
15,623
Advertising
1,112
3
1,115
2,185
(32
)
2,153
Other
1,607
3
1,610
3,305
(41
)
3,264
Total Revenue
$18,131
$31
18,162
$36,472
($318
)
36,154
Operating Expenses
Programming
$4,679
$11
$4,690
$9,563
($92
)
$9,471
Non-Programming
6,720
16
$6,736
13,565
(170
)
$13,395
Total Operating Expenses
$11,399
$27
$11,426
$23,128
($262
)
$22,866
Adjusted EBITDA
$6,733
$3
$6,736
$13,344
($56
)
$13,288
Adjusted EBITDA Margin
37.1%
- bps
37.1%
36.6%
20 bps
36.8%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230727964791/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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