Comcast Corporation (NASDAQ: CMCSA) today reported results for
the quarter ended December 31, 2023.
“We capped off 2023 and the fourth quarter with excellent
operational and financial performance," said Brian L. Roberts,
Chairman and Chief Executive Officer of Comcast Corporation. "For
the third consecutive year, we generated the highest Revenue,
Adjusted EBITDA and Adjusted EPS in our company's history. At the
same time, we invested in future growth, returned $16 billion to
shareholders and maintained a healthy balance sheet. We drove
strong revenue and Adjusted EBITDA growth in our Connectivity &
Platforms businesses and continued to expand and upgrade our
network to fuel broadband. We also reported the highest Adjusted
EBITDA on record at Theme Parks; were the #1 studio in worldwide
box office for the first time since 2015; and maintained Peacock's
position as the fastest growing streamer in the U.S. 2024 is
already off to a great start – I couldn't be more proud of how our
company came together to deliver a record-breaking NFL Wild Card
game on Peacock and the nation's biggest night on the Internet
ever. Our unique and complementary capabilities will enable us to
capitalize on the many opportunities ahead, and the Board's
confidence in our future is reflected in today's announcement that
we are increasing our dividend for the 16th consecutive year."
($ in millions, except per share data)
4th
Quarter
Full
Year
Consolidated Results
2023
2022
Change
2023
2022
Change
Revenue
$31,253
$30,552
2.3%
$121,572
$121,427
0.1%
Net Income Attributable to Comcast
$3,260
$3,024
7.8%
$15,388
$5,370
186.5%
Adjusted Net Income1
$3,410
$3,520
(3.1%
)
$16,493
$16,147
2.1%
Adjusted EBITDA2
$8,012
$8,000
0.1%
$37,633
$36,459
3.2%
Earnings per Share3
$0.81
$0.70
15.7%
$3.71
$1.21
NM
Adjusted Earnings per Share1
$0.84
$0.82
2.4%
$3.98
$3.64
9.3%
Net Cash Provided by Operating
Activities
$5,922
$5,883
0.7%
$28,501
$26,413
7.9%
Free Cash Flow4
$1,708
$1,330
28.5%
$12,962
$12,646
2.5%
NM=comparison not meaningful.
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.
4th Quarter and Full Year 2023 Highlights:
- Consolidated Adjusted EBITDA in the Fourth Quarter Was
Consistent With the Prior Year Period, Including Severance and
Other, and Increased 3.2% for the Full Year; Adjusted EPS in the
Fourth Quarter Increased 2.4% to $0.84 and Increased 9.3% to $3.98
for the Full Year; Generated Free Cash Flow of $1.7 Billion in the
Fourth Quarter and $13.0 Billion for the Full Year
- Returned $4.7 Billion to Shareholders in the Fourth Quarter
Through a Combination of $1.2 Billion in Dividend Payments and $3.5
Billion in Share Repurchases. Total Return of Capital to
Shareholders for the Full Year was $15.8 Billion
- Increased Dividend by $0.08, or 6.9% Year-over-Year, to $1.24
per Share on an Annualized Basis for 2024, the 16th Consecutive
Annual Increase; Increased Share Repurchase Authorization to $15
Billion
- Continued the Successful Execution of Our Domestic Network
Expansion and Upgrade Strategy; Increased Homes and Businesses
Passed in 2023 by 1.1 Million to 62.5 Million; Expanded Deployment
of Mid-Split Technology to 35% of Our Footprint at Year-End; and
Began Rolling-Out Multi-Gigabit Symmetrical Speeds Starting in
Select Markets in the Fourth Quarter
- Domestic Broadband Average Rate Per Customer Increased 3.9% and
Drove Domestic Broadband Revenue Growth of 3.7% in the Fourth
Quarter and 4.2% for the Full Year
- Domestic Wireless Customer Line Net Additions Were 310,000 in
the Fourth Quarter and 1.3 Million for the Full Year; Lines
Increased 24% Compared to the Prior Year Period Reaching 6.6
Million
- Peacock Paid Subscribers Increased Nearly 50% Compared to the
Prior Year Period to 31 Million, Including Net Additions of 3
Million in the Fourth Quarter. Peacock Revenue in the Fourth
Quarter Increased 57%, Surpassing $1.0 Billion in Quarterly Revenue
for the First Time; Adjusted EBITDA in the Fourth Quarter Improved
Compared to the Prior Year Period
- Studios Ranked #1 in Worldwide Box Office for the Full Year,
Including 3 of the Top 5 Films: Super Mario Bros. Movie,
Oppenheimer and Fast X
- Theme Parks Generated Its Highest Adjusted EBITDA on Record for
a Fourth Quarter and a Full Year. Adjusted EBITDA Increased 11.6%
to $872 Million in the Fourth Quarter and 24.7% to $3.3 Billion for
the Full Year
4th Quarter Consolidated Financial Results
Revenue increased 2.3% compared to the prior year period.
Net Income Attributable to Comcast increased 7.8%.
Adjusted Net Income decreased 3.1%. Adjusted EBITDA
was consistent with the prior year period, including $527 million
of severance and other in the quarter and $638 million of severance
in the prior year period. Excluding severance and other7, Adjusted
EBITDA decreased 1.2%.
Earnings per Share (EPS) increased 15.7% to $0.81.
Adjusted EPS increased 2.4% to $0.84.
Capital Expenditures decreased 6.9% to $3.3 billion.
Connectivity & Platforms’ capital expenditures decreased 19.4%
to $2.1 billion, reflecting lower spending on customer premise
equipment, scalable infrastructure and support capital, partially
offset by higher investment in line extensions. Content &
Experiences' capital expenditures increased 28.5% to $1.2 billion,
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 $5.9
billion. Free Cash Flow was $1.7 billion.
Dividends and Share Repurchases. Comcast paid dividends
totaling $1.2 billion and repurchased 81.9 million of its common
shares for $3.5 billion, resulting in a total return of capital to
shareholders of $4.7 billion.
Today, Comcast announced that it increased its dividend by
$0.08, or 6.9% year-over-year, to $1.24 per share on an annualized
basis for 2024. In accordance with the increase, the Board of
Directors declared a quarterly cash dividend of $0.31 per share on
the company's stock, payable April 24, 2024, to shareholders of
record as of the close of business on April 3, 2024. The Board of
Directors also approved a new share repurchase program
authorization, effective as of January 26, 2024, of $15 billion,
which does not have an expiration date. We expect to repurchase
shares of our Class A common stock under this authorization in the
open market or private transactions, subject to market and other
conditions.
Connectivity & Platforms
($ in millions)
Constant Currency Change6
4th
Quarter
2023
20225
Change
Connectivity & Platforms
Revenue
Residential Connectivity &
Platforms
$18,058
$18,081
(0.1
%)
(1.3
%)
Business Services Connectivity
2,361
2,230
5.9
%
5.8
%
Total Connectivity & Platforms
Revenue
$20,418
$20,311
0.5
%
(0.5
%)
Connectivity & Platforms Adjusted
EBITDA
Residential Connectivity &
Platforms
$6,276
$6,073
3.3
%
3.3
%
Business Services Connectivity
1,303
1,276
2.1
%
2.1
%
Total Connectivity & Platforms
Adjusted EBITDA
$7,579
$7,349
3.1
%
3.1
%
Connectivity & Platforms Adjusted
EBITDA Margin
Residential Connectivity &
Platforms
34.8
%
33.6
%
120 bps
160 bps
Business Services Connectivity
55.2
%
57.2
%
(200) bps
(200) bps
Total Connectivity & Platforms
Adjusted EBITDA Margin
37.1
%
36.2
%
90 bps
130 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 3.1%,
including $422 million of severance and other in the quarter and
$456 million of severance in the prior year period. Excluding
severance and other and the impact of foreign currency7, Adjusted
EBITDA increased 2.4% due to growth in Residential Connectivity
& Platforms Adjusted EBITDA and Business Services Connectivity
Adjusted EBITDA. Adjusted EBITDA margin increased 90 basis
points to 37.1%. Excluding severance and other and the impact of
foreign currency7, Adjusted EBITDA margin increased 110 basis
points.
(in thousands)
Net
Additions /
(Losses)
4th
Quarter
4Q23
4Q228
2023
20228
Customer Relationships
Domestic Residential Connectivity &
Platforms Customer Relationships
31,648
31,860
(74
)
(68
)
International Residential Connectivity
& Platforms Customer Relationships
17,847
17,939
(111
)
55
Business Services Connectivity Customer
Relationships
2,641
2,625
1
4
Total Connectivity & Platforms
Customer Relationships
52,136
52,425
(183
)
(9
)
Domestic Broadband
Residential Customers
29,748
29,812
(31
)
(23
)
Business Customers
2,505
2,507
(3
)
—
Total Domestic Broadband
Customers
32,253
32,319
(34
)
(23
)
Total Domestic Wireless Lines
6,588
5,313
310
365
Total Domestic Video Customers
14,106
16,142
(389
)
(440
)
Total Customer Relationships for Connectivity &
Platforms decreased by 183,000 to 52.1 million, reflecting
decreases in Residential Connectivity & Platforms customer
relationships. Total domestic broadband customer net losses were
34,000, total domestic wireless line net additions were 310,000 and
total domestic video customer net losses were 389,000.
Residential Connectivity & Platforms
($ in millions)
Constant Currency Change6
4th
Quarter
2023
20225
Change
Revenue
Domestic Broadband
$6,403
$6,177
3.7
%
3.7
%
Domestic Wireless
1,020
883
15.4
%
15.4
%
International Connectivity
1,197
953
25.7
%
19.0
%
Total Residential Connectivity
8,620
8,013
7.6
%
6.9
%
Video
6,903
7,273
(5.1
%)
(6.5
%)
Advertising
1,109
1,283
(13.6
%)
(15.0
%)
Other
1,426
1,512
(5.7
%)
(7.0
%)
Total Revenue
$18,058
$18,081
(0.1
%)
(1.3
%)
Operating Expenses
Programming
$4,429
$4,473
(1.0
%)
(2.5
%)
Non-Programming
7,353
7,536
(2.4
%)
(4.1
%)
Total Operating Expenses
$11,782
$12,009
(1.9
%)
(3.5
%)
Adjusted EBITDA
$6,276
$6,073
3.3
%
3.3
%
Adjusted EBITDA Margin
34.8
%
33.6
%
120 bps
160 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 compared to the prior year period, but decreased when
excluding the positive impact of foreign currency. Growth in
residential connectivity revenue was driven by: international
connectivity revenue due to increases in wireless revenue,
reflecting higher sales of wireless devices and services, and in
broadband revenue, as well as the positive impact of foreign
currency; domestic broadband revenue due to higher average rates;
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 and the positive impact of foreign currency; lower
advertising revenue primarily due to a decline in domestic
political advertising; and lower other revenue primarily due to
lower residential wireline voice revenue, driven by a decline in
the number of customers.
Adjusted EBITDA for Residential Connectivity &
Platforms increased 3.3%, including $380 million of severance and
other in the quarter and $449 million of severance in the prior
year period. Programming expenses decreased primarily due to the
decline in the number of domestic video customers, partially offset
by domestic contractual rate increases, an increase in programming
expenses for international sports networks and the impact of
foreign currency. Non-programming expenses decreased primarily due
to lower spending on marketing and promotion, lower fees paid to
third-party channels related to advertising sales, lower technical
and support costs, and lower severance and other. These decreases
were partially offset by increased direct product costs associated
with our wireless service, from increases in device sales and the
number of customers receiving our wireless service, and by the
impact of foreign currency. Excluding severance and other and the
impact of foreign currency7, Adjusted EBITDA increased 1.9%.
Adjusted EBITDA margin increased 120 basis points to 34.8%.
Excluding severance and other and the impact of foreign currency7,
Adjusted EBITDA margin increased 120 basis points.
Business Services Connectivity
($ in millions)
Constant Currency Change6
4th
Quarter
2023
20225
Change
Revenue
$2,361
$2,230
5.9%
5.8%
Operating Expenses
1,057
953
10.9%
10.8%
Adjusted EBITDA
$1,303
$1,276
2.1%
2.1%
Adjusted EBITDA Margin
55.2
%
57.2
%
(200) bps
(200) 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 business customers, driven by
higher average rates, and an increase in revenue from medium-sized
and enterprise customers.
Adjusted EBITDA for Business Services Connectivity
increased 2.1%, including $42 million of severance in the quarter
and $7 million of severance in the prior year period. The increase
in Adjusted EBITDA reflects higher revenue, partially offset by
higher operating expenses primarily due to an increase in direct
product costs and higher severance. Excluding severance and the
impact of foreign currency7, Adjusted EBITDA increased 4.8%.
Adjusted EBITDA margin decreased 200 basis points to 55.2%.
Excluding severance and the impact of foreign currency7, Adjusted
EBITDA margin decreased 50 basis points.
Content & Experiences
($ in millions)
4th
Quarter
2023
20225
Change
Content & Experiences
Revenue
Media
$6,979
$6,768
3.1
%
Studios
3,064
2,938
4.3
%
Theme Parks
2,371
2,114
12.2
%
Headquarters & Other
19
29
(35.2
%)
Eliminations
(933
)
(968
)
3.6
%
Total Content & Experiences
Revenue
$11,500
$10,881
5.7
%
Content & Experiences Adjusted
EBITDA
Media
$108
$218
(50.2
%)
Studios
308
168
83.0
%
Theme Parks
872
782
11.6
%
Headquarters & Other
(337
)
(353
)
4.7
%
Eliminations
(20
)
97
N
M
Total Content & Experiences
Adjusted EBITDA
$932
$911
2.3
%
NM=comparison not meaningful.
Revenue for Content & Experiences increased compared
to the prior year period driven by Theme Parks, Media and Studios.
Adjusted EBITDA for Content & Experiences increased
2.3%, including $101 million of severance in the quarter and $186
million of severance in the prior year period primarily in
Headquarters and Other. Excluding severance7, Adjusted EBITDA
decreased 5.9%, primarily due to a decrease in Media, partially
offset by increases in Studios and Theme Parks.
Media
($ in millions)
4th
Quarter
2023
20225
Change
Revenue
Domestic Advertising
$2,635
$2,829
(6.9
%)
Domestic Distribution
2,747
2,532
8.5
%
International Networks
1,047
893
17.3
%
Other
550
514
7.0
%
Total Revenue
$6,979
$6,768
3.1
%
Operating Expenses
6,871
6,550
4.9
%
Adjusted EBITDA
$108
$218
(50.2
%)
Revenue for Media increased due to higher domestic
distribution, international networks and other revenue, partially
offset by lower domestic advertising revenue. Domestic distribution
revenue increased primarily due to higher revenue at Peacock,
driven by an increase in paid subscribers. International networks
revenue increased primarily reflecting an increase in revenue
associated with the distribution of sports channels and the
positive impact of foreign currency. Domestic advertising revenue
decreased reflecting the unfavorable comparison to Telemundo's
broadcast of the FIFA World Cup in the prior year period. Excluding
the contribution from World Cup advertising7 in the prior year
period, advertising revenue increased 2.7%, primarily due to an
increase in revenue at Peacock, partially offset by lower revenue
at our networks.
Adjusted EBITDA for Media decreased due to higher
operating expenses, which more than offset higher revenue. The
increase in operating expenses was due to increased sports
programming costs and higher programming costs at Peacock,
partially offset by a decrease in content costs at our
entertainment television networks, including the impacts of the
Writers Guild and Screen Actors Guild work stoppages in the current
year period. The increase in sports costs reflected the contractual
rate increase in NFL programming, the addition of Big 10 and higher
Premier League costs compared to the prior year period when games
were paused for four weeks to accommodate the timing of the FIFA
World Cup. Media results in the fourth quarter include $1.0 billion
of revenue and an Adjusted EBITDA9 loss of $825 million related to
Peacock, compared to $660 million of revenue and an Adjusted
EBITDA9 loss of $978 million in the prior year period.
Studios
($ in millions)
4th
Quarter
2023
20225
Change
Revenue
Content Licensing
$2,375
$2,382
(0.3
%)
Theatrical
343
216
58.8
%
Other
345
339
1.7
%
Total Revenue
$3,064
$2,938
4.3
%
Operating Expenses
2,756
2,770
(0.5
%)
Adjusted EBITDA
$308
$168
83.0
%
Revenue for Studios increased primarily due to higher
theatrical revenue, including the performance of Five Nights at
Freddy's, Trolls Band Together, The Exorcist: Believer and
Migration. Content licensing revenue was consistent as higher
content licensing revenue at our film studios was offset by lower
content licensing revenue at our television studios, primarily due
to the timing of when content was made available under licensing
agreements, including the impacts of the Writers Guild and Screen
Actors Guild work stoppages in the current year period.
Adjusted EBITDA for Studios increased due to higher
revenue and consistent operating expenses. The consistent operating
expenses primarily reflected consistent programming and production
expenses, due to lower costs associated with lower content
licensing sales at our television studios, including the impacts of
the work stoppages in the current year period, offset by higher
film costs.
Theme Parks
($ in millions)
4th
Quarter
2023
2022
Change
Revenue
$2,371
$2,114
12.2
%
Operating Expenses
1,499
1,332
12.5
%
Adjusted EBITDA
$872
$782
11.6
%
Revenue for Theme Parks increased due to higher revenue
at both our international and domestic theme parks. Domestic theme
parks revenue increased, reflecting higher revenue at our theme
park in Hollywood due to the continued success of Super Nintendo
World, partially offset by lower revenue at our theme park in
Orlando which continued to be above comparable pre-pandemic 2019
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
fourth quarter was $337 million, compared to a loss of $353 million
in the prior year period. The year-over-year change included the
impact of lower severance in the current 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 $933 million, compared to $968 million in the
prior year period, and Adjusted EBITDA eliminations were a loss of
$20 million, compared to a benefit of $97 million in the prior year
period.
Corporate, Other and Eliminations
($ in millions)
4th
Quarter
2023
20225
Change
Corporate & Other
Revenue
$760
$731
4.0
%
Operating Expenses
1,254
1,019
23.0
%
Adjusted EBITDA
($494
)
($288
)
(71.2
%)
Eliminations
Revenue
($1,426
)
($1,370
)
4.1
%
Operating Expenses
(1,420
)
(1,398
)
1.6
%
Adjusted EBITDA
($5
)
$28
N
M
NM=comparison not meaningful.
Corporate & Other
Corporate & Other primarily includes overhead and personnel
costs; our Sky-branded video services and television networks in
Germany; 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. Corporate & Other Adjusted EBITDA decreased
primarily reflecting an increase in operating expenses related to
Sky operations in Germany, due to higher Bundesliga costs compared
to the prior year period when games were paused for four weeks to
accommodate the timing of the FIFA World Cup and content charges
related to a shift in our entertainment content development
strategy.
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 loss of $5 million compared to a benefit of $28
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 present the operations of (1) our
Connectivity & Platforms business in two segments: Residential
Connectivity & Platforms and Business Services Connectivity and
(2) our Content & Experiences business in three segments:
Media, Studios and Theme Parks. 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 segments
within the Connectivity & Platforms and Content &
Experiences business 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 year 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
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 and Table 8 for reconciliations of non-GAAP financial
measures.
8
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
receiving Sky services in Germany.
9
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,
January 25, 2024, 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, January
25, 2024, 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
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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; consumer acceptance of our
content; programming costs; 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; labor disputes; laws and regulations; adverse decisions
in litigation or governmental investigations; 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
Twelve Months Ended
(in millions, except per share data)
December 31,
December 31,
2023
2022
2023
2022
Revenue
$31,253
$30,552
$121,572
$121,427
Costs and expenses
Programming and production
10,256
9,807
36,762
38,213
Marketing and promotion
2,042
2,182
7,971
8,506
Other operating and administrative
10,943
10,561
39,190
38,263
Depreciation
2,192
2,199
8,854
8,724
Amortization
1,336
1,273
5,482
5,097
Goodwill and long-lived asset
impairments
—
—
—
8,583
26,769
26,022
98,258
107,385
Operating income
4,484
4,530
23,314
14,041
Interest expense
(1,020)
(974)
(4,087)
(3,896)
Investment and other income (loss),
net
Equity in net income (losses) of
investees, net
335
(14)
789
(537)
Realized and unrealized gains (losses) on
equity securities, net
1
(113)
(130)
(320)
Other income (loss), net
243
242
592
(3)
579
114
1,252
(861)
Income before income taxes
4,043
3,670
20,478
9,284
Income tax expense
(891)
(797)
(5,371)
(4,359)
Net income
3,153
2,873
15,107
4,925
Less: Net income (loss) attributable to
noncontrolling interests
(107)
(150)
(282)
(445)
Net income attributable to Comcast
Corporation
$3,260
$3,024
$15,388
$5,370
Diluted earnings per common share
attributable to Comcast Corporation shareholders
$0.81
$0.70
$3.71
$1.21
Diluted weighted-average number of common
shares
4,039
4,290
4,148
4,430
TABLE 2
Consolidated Statements of Cash Flows
(Unaudited)
Twelve Months Ended
(in millions)
December 31,
2023
2022
OPERATING ACTIVITIES
Net income
$15,107
$4,925
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
14,336
13,821
Goodwill and long-lived asset
impairments
—
8,583
Share-based compensation
1,241
1,336
Noncash interest expense (income), net
316
309
Net (gain) loss on investment activity and
other
(768)
1,177
Deferred income taxes
(2,739)
(834)
Changes in operating assets and
liabilities, net of effects of acquisitions and divestitures:
Current and noncurrent receivables,
net
(996)
(1,327)
Film and television costs, net
(260)
(451)
Accounts payable and accrued expenses
related to trade creditors
(520)
497
Other operating assets and liabilities
2,784
(1,623)
Net cash provided by operating
activities
28,501
26,413
INVESTING ACTIVITIES
Capital expenditures
(12,242)
(10,626)
Cash paid for intangible assets
(3,298)
(3,141)
Construction of Universal Beijing
Resort
(137)
(330)
Acquisitions, net of cash acquired
—
(12)
Proceeds from sales of businesses and
investments
661
1,985
Advance on sale of investment
8,610
—
Purchases of investments
(1,313)
(2,274)
Other
558
258
Net cash provided by (used in) investing
activities
(7,161)
(14,140)
FINANCING ACTIVITIES
Proceeds from (repayments of) short-term
borrowings, net
(660)
660
Proceeds from borrowings
6,052
2,745
Repurchases and repayments of debt
(4,015)
(2,307)
Repayment of collateralized obligation
(5,175)
—
Repurchases of common stock under
repurchase program and employee plans
(11,291)
(13,328)
Dividends paid
(4,766)
(4,741)
Other
5
786
Net cash provided by (used in) financing
activities
(19,850)
(16,184)
Impact of foreign currency on cash, cash
equivalents and restricted cash
9
(86)
Increase (decrease) in cash, cash
equivalents and restricted cash
1,500
(3,997)
Cash, cash equivalents and restricted
cash, beginning of period
4,782
8,778
Cash, cash equivalents and restricted
cash, end of period
$6,282
$4,782
TABLE 3
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)
December 31,
December 31,
2023
2022
ASSETS
Current Assets
Cash and cash equivalents
$6,215
$4,749
Receivables, net
13,813
12,672
Other current assets
3,959
4,406
Total current assets
23,987
21,826
Film and television costs
12,920
12,560
Investments
9,385
7,740
Property and equipment, net
59,686
55,485
Goodwill
59,268
58,494
Franchise rights
59,365
59,365
Other intangible assets, net
27,867
29,308
Other noncurrent assets, net
12,333
12,497
$264,811
$257,275
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued expenses
related to trade creditors
$12,437
$12,544
Accrued participations and residuals
1,671
1,770
Deferred revenue
3,242
2,380
Accrued expenses and other current
liabilities
11,613
9,450
Current portion of long-term debt
2,069
1,743
Advance on sale of investment
9,167
—
Total current liabilities
40,198
27,887
Long-term debt, less current portion
95,021
93,068
Collateralized obligation
—
5,172
Deferred income taxes
26,003
28,714
Other noncurrent liabilities
20,122
20,395
Redeemable noncontrolling interests
241
411
Equity
Comcast Corporation shareholders'
equity
82,703
80,943
Noncontrolling interests
523
684
Total equity
83,226
81,627
$264,811
$257,275
TABLE 4 Reconciliation from Net Income Attributable to
Comcast Corporation to Adjusted EBITDA (Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
(in millions)
2023
2022
2023
2022
Net income attributable to Comcast
Corporation
$3,260
$3,024
$15,388
$5,370
Net income (loss) attributable to
noncontrolling interests
(107)
(150)
(282)
(445)
Income tax expense
891
797
5,371
4,359
Interest expense
1,020
974
4,087
3,896
Investment and other (income) loss,
net
(579)
(114)
(1,252)
861
Depreciation
2,192
2,199
8,854
8,724
Amortization
1,336
1,273
5,482
5,097
Goodwill and long-lived asset
impairments
—
—
—
8,583
Adjustments (1)
—
(2)
(16)
13
Adjusted EBITDA
$8,012
$8,000
$37,633
$36,459
Reconciliation from Net Cash Provided
by Operating Activities to Free Cash Flow (Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
(in millions)
2023
2022
2023
2022
Net cash provided by operating
activities
$5,922
$5,883
$28,501
$26,413
Capital expenditures
(3,320)
(3,564)
(12,242)
(10,626)
Cash paid for capitalized software and
other intangible assets
(893)
(989)
(3,298)
(3,141)
Free Cash Flow
$1,708
$1,330
$12,962
$12,646
Alternate Presentation of Free Cash
Flow (Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
(in millions)
2023
2022
2023
2022
Adjusted EBITDA
$8,012
$8,000
$37,633
$36,459
Capital expenditures
(3,320)
(3,564)
(12,242)
(10,626)
Cash paid for capitalized software and
other intangible assets
(893)
(989)
(3,298)
(3,141)
Cash interest expense
(1,145)
(1,072)
(3,711)
(3,413)
Cash taxes
(1,283)
(1,243)
(5,107)
(5,265)
Changes in operating assets and
liabilities
(26)
(270)
(2,055)
(3,006)
Noncash share-based compensation
286
346
1,241
1,336
Other (2)
77
121
500
303
Free Cash Flow
$1,708
$1,330
$12,962
$12,646
(1)
4th quarter and full year 2023 Adjusted
EBITDA exclude $— and $(16) million of other operating and
administrative expenses, respectively, related to our investment
portfolio. 4th quarter and full year 2022 Adjusted EBITDA exclude
$(2) million and $13 million of other operating and administrative
expense, respectively, related to our investment portfolio.
(2)
4th quarter and full year 2023 include
decreases of $— and $(16) million, respectively, of costs related
to our investment portfolio as these amounts are excluded from
Adjusted EBITDA. 4th quarter and full year 2022 include decreases
of $(2) million and $13 million, respectively, of costs related to
our investment portfolio.
TABLE 5 Reconciliations of Adjusted Net Income and
Adjusted EPS (Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
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
$3,260
$0.81
$3,024
$0.70
$15,388
$3.71
$5,370
$1.21
Change
7.8%
15.7%
186.5%
NM
Amortization of acquisition-related
intangible assets (1)
436
0.11
417
0.10
1,755
0.42
1,771
0.40
Investments (2)
(286)
(0.07)
80
0.02
(649)
(0.16)
681
0.15
Items affecting period-over-period
comparability:
Goodwill and long-lived asset impairments
(3)
—
—
—
—
—
—
8,541
1.93
Income tax adjustments (4)
—
—
—
—
—
—
(286)
(0.06)
Gains and losses related to businesses and
investments (5)
—
—
—
—
—
—
69
0.02
Adjusted Net income and Adjusted
EPS
$3,410
$0.84
$3,520
$0.82
$16,493
$3.98
$16,147
$3.64
Change
(3.1%)
2.4%
2.1%
9.3%
NM=comparison not meaningful.
(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
Twelve Months Ended
December 31,
December 31,
2023
2022
2023
2022
Amortization of acquisition-related
intangible assets before income taxes
$562
$520
$2,261
$2,197
Amortization of acquisition-related
intangible assets, net of tax
$436
$417
$1,755
$1,771
(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
Twelve Months Ended
December 31,
December 31,
2023
2022
2023
2022
Realized and unrealized (gains) losses on
equity securities, net
($1)
$113
$130
$320
Equity in net (income) losses of
investees, net and other
(377)
(7)
(991)
582
Investments before income taxes
(378)
106
(861)
902
Investments, net of tax
($286)
$80
($649)
$681
(3)
Full year 2022 net income attributable to
Comcast Corporation includes a loss of $8.6 billion related to
goodwill and long-lived assets impairments [across the Connectivity
& Platforms and Content & Experiences segments]. The
goodwill impairment was primarily not deductible for tax
purposes.
(4)
Full year 2022 net income attributable to
Comcast Corporation includes $286 million of income tax benefit
related to state tax law changes.
(5)
Full year 2022 net income attributable to
Comcast Corporation includes a loss of $96 million in other income,
related to an impairment of an equity method investment, and
includes a gain of $(53) million in amortization expense, $(26)
million net of tax, related to the sale of a business.
TABLE 6
Reconciliation of Constant Currency
(Unaudited)
Three Months Ended
Twelve Months Ended
December 31, 2022
December 31, 2022
(in millions)
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
$18,081
$208
$18,289
$72,386
$78
$72,464
Business Services Connectivity
2,230
—
2,230
8,819
—
8,819
Total Connectivity & Platforms
Revenue
$20,311
$208
$20,519
$81,205
$79
$81,284
Connectivity and Platforms Adjusted
EBITDA
Residential Connectivity &
Platforms
$6,073
$4
$6,077
$26,111
($23)
$26,088
Business Services Connectivity
1,276
—
1,276
5,060
—
5,060
Total Connectivity & Platforms
Adjusted EBITDA
$7,349
$4
$7,353
$31,171
($23)
$31,148
Connectivity & Platforms Adjusted
EBITDA Margin
Residential Connectivity &
Platforms
33.6%
(40) bps
33.2%
36.1%
(10) bps
36.0%
Business Services Connectivity
57.2%
— bps
57.2%
57.4%
— bps
57.4%
Total Connectivity & Platforms
Adjusted EBITDA Margin
36.2%
(40) bps
35.8%
38.4%
(10) bps
38.3%
Three Months Ended
Twelve Months Ended
December 31, 2022
December 31, 2022
(in millions)
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
$6,177
$—
$6,177
$24,469
$—
$24,469
Domestic wireless
883
—
883
3,071
—
3,071
International connectivity
953
54
1,007
3,426
25
3,451
Total residential connectivity
$8,013
$54
$8,067
$30,966
$25
$30,991
Video
7,273
112
7,385
30,496
47
30,543
Advertising
1,283
21
1,304
4,546
7
4,553
Other
1,512
21
1,533
6,378
(1)
6,377
Total Revenue
$18,081
$208
$18,289
$72,386
$78
$72,464
Operating Expenses
Programming
$4,473
$68
$4,541
$18,500
$32
$18,532
Non-Programming
7,536
135
7,671
27,775
70
27,845
Total Operating Expenses
$12,009
$203
$12,212
$46,275
$102
$46,377
Adjusted EBITDA
$6,073
$4
$6,077
$26,111
($23)
$26,088
Adjusted EBITDA Margin
33.6%
(40) bps
33.2%
36.1%
(10) bps
36.0%
TABLE 7
Reconciliation of Media Revenue
Excluding Olympics, 2022 Super Bowl and 2022 FIFA World Cup
(Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
(in millions)
2023
2022
Change
2023
2022
Change
Revenue
$6,979
$6,768
3.1%
$25,355
$26,719
(5.1%)
Beijing Olympics
—
—
—
963
2022 Super Bowl
—
—
—
519
2022 FIFA World Cup
—
263
—
263
Revenue excluding Olympics and 2022 Super
Bowl and 2022 FIFA World Cup
$6,979
$6,505
7.3%
$25,355
$24,975
1.5%
Reconciliation of Media Domestic
Advertising Revenue Excluding Olympics, 2022 Super Bowl and 2022
FIFA World Cup (Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
(in millions)
2023
2022
Change
2023
2022
Change
Revenue
$2,635
$2,829
(6.9%)
$8,600
$10,360
(17.0%)
Beijing Olympics
—
—
—
636
2022 Super Bowl
—
—
—
519
2022 FIFA World Cup
—
263
—
263
Revenue excluding Olympics and 2022 Super
Bowl and 2022 FIFA World Cup
$2,635
$2,566
2.7%
$8,600
$8,942
(3.8%)
TABLE 8
Reconciliation of Consolidated Adjusted
EBITDA Excluding Severance and Other(1) (Unaudited)
Three Months Ended
December 31,
(in millions)
2023
2022
Change(3)
Adjusted EBITDA
$8,012
$8,000
0.1%
Severance and Other(1)
527
638
Adjusted EBITDA excluding Severance and
Other(1)
$8,538
$8,638
(1.2%)
Reconciliation of Connectivity &
Platforms Constant Currency Adjusted EBITDA and Adjusted EBITDA
Margin Excluding Severance and Other(1)(2) (Unaudited)
Three Months Ended
December 31,
(in millions)
2023
2022
Change(3)
Total Connectivity &
Platforms
Adjusted EBITDA
$7,579
$7,349
3.1%
Adjusted EBITDA Margin
37.1%
36.2%
90 bps
Severance and Other(1)
422
456
Effects of Foreign Currency(2)
—
10
Constant Currency Adjusted EBITDA
excluding Severance and Other(1)(2)
$8,000
$7,815
2.4%
Constant Currency Adjusted EBITDA Margin
excluding Severance and Other(1)(2)
39.2%
38.1%
110 bps
Residential Connectivity &
Platforms
Adjusted EBITDA
$6,276
$6,073
3.3%
Adjusted EBITDA Margin
34.8%
33.6%
120 bps
Severance and Other(1)
380
449
Effects of Foreign Currency(2)
—
10
Constant Currency Adjusted EBITDA
excluding Severance and Other(1)(2)
$6,656
$6,532
1.9%
Constant Currency Adjusted EBITDA Margin
excluding Severance and Other(1)(2)
36.9%
35.7%
120 bps
Business Services Connectivity
Adjusted EBITDA
$1,303
$1,276
2.1%
Adjusted EBITDA Margin
55.2%
57.2%
(200) bps
Severance
42
7
Effects of Foreign Currency(2)
—
—
Constant Currency Adjusted EBITDA
excluding Severance(2)
$1,345
$1,283
4.8%
Constant Currency Adjusted EBITDA Margin
excluding Severance(2)
57.0%
57.5%
(50) bps
Reconciliation of Content &
Experiences Adjusted EBITDA Excluding Severance (Unaudited)
Three Months Ended
December 31,
(in millions)
2023
2022
Change(3)
Adjusted EBITDA
$932
$911
2.3%
Severance
101
186
Adjusted EBITDA excluding Severance
$1,033
$1,097
(5.9%)
(1)
2023 amount includes an out-of-period adjustment associated with
contractual obligations in our advertising business.
(2)
2022 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.
(3)
Change percentages represent year/year growth rates. Change in
Adjusted EBITDA margin is presented as year/year basis point
changes.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240125860035/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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