Comcast Corporation (NASDAQ: CMCSA) today reported results for
the quarter ended September 30, 2024.
“Our convergence strategy continues to deliver a best-in-class
connectivity experience across our expanding network of 63 million
homes and businesses, which far exceeds the combined fiber
footprint of our three largest competitors," said Brian L. Roberts,
Chairman and Chief Executive Officer of Comcast Corporation. "Third
quarter results demonstrate the strength of this platform -
broadband ARPU increased 3.6%; revenue in our connectivity
businesses grew 5%; and Adjusted EBITDA margins across Connectivity
& Platforms grew to 40.9%. At the same time, we delivered an
incredibly successful Paris Summer Olympics that helped fuel
double-digit percentage growth in Peacock revenue and paid
subscribers and contributed to NBC's #1 ranking for the 2023-2024
season. We also released the universally acclaimed Despicable Me 4,
which grossed nearly $1.0 billion in worldwide box office, and
announced the grand opening of Universal Epic Universe in May 2025,
which will be the most ambitious and technologically sophisticated
theme park ever created. Overall, it was a very active and
successful quarter, and I couldn't be more pleased with how our
team is executing and positioning our company for long-term
growth."
($ in millions, except per share data)
3rd
Quarter
Consolidated Results
2024
2023
Change
Revenue
$32,070
$30,115
6.5%
Net Income Attributable to Comcast
$3,629
$4,046
(10.3%
)
Adjusted Net Income1
$4,337
$4,483
(3.3%
)
Adjusted EBITDA2
$9,735
$9,962
(2.3%
)
Earnings per Share3
$0.94
$0.98
(4.2%
)
Adjusted Earnings per Share1
$1.12
$1.08
3.3%
Net Cash Provided by Operating
Activities
$7,021
$8,154
(13.9%
)
Free Cash Flow4
$3,406
$4,032
(15.5%
)
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.
3rd Quarter 2024 Highlights:
- Adjusted EPS Increased 3.3% to $1.12; Generated Free Cash Flow
of $3.4 Billion
- Return of Capital to Shareholders Totaled $3.2 Billion Through
a Combination of $1.2 Billion in Dividend Payments and $2.0 Billion
in Share Repurchases. Repurchased $10.1 Billion of Shares Over the
Trailing Twelve Months, Reducing Shares Outstanding by 6%
- Connectivity & Platforms Adjusted EBITDA of $8.3 Billion
Was Consistent With the Prior Year Period and Adjusted EBITDA
Margin Increased 30 Basis Points to 40.9%. Excluding the Impact of
Foreign Currency, Connectivity & Platforms Adjusted EBITDA
Margin Increased 50 Basis Points
- Connectivity & Platforms Customer Relationships Decreased
by 29,000 to 51.7 Million and Domestic Broadband Customers
Decreased by 87,000 to 32.0 Million, Including the Impact From the
End of ACP. Excluding the Negative Impact From ACP, Estimated Total
Customer Relationship Net Additions Were 67,000 and Total Domestic
Broadband Net Additions Were 9,000
- Domestic Broadband Average Rate Per Customer Increased 3.6%,
Driving Domestic Broadband Revenue Growth of 2.7% to $6.5
Billion
- Domestic Wireless Customer Lines Increased 20% Compared to the
Prior Year Period to 7.5 Million, Including Net Additions of
319,000 in the Third Quarter
- Business Services Connectivity Adjusted EBITDA Increased 4.2%
to $1.4 Billion and Adjusted EBITDA Margin Was 57.4%
- Studios Adjusted EBITDA Increased 9.0% to $468 Million, Driven
by the Successful Theatrical Performance of Despicable Me 4 and
Twisters; DM4 Debuted in July and Grossed Nearly $1.0 Billion in
Worldwide Box Office Year-to-Date, Pushing the Minions Franchise's
Cumulative Total Past $5 Billion
- Peacock Paid Subscribers Increased 29% Compared to the Prior
Year Period to 36 Million, Including Net Additions of 3 Million in
the Third Quarter. Peacock Revenue Increased 82% to $1.5 Billion;
Adjusted EBITDA Improved Compared to the Prior Year Period
- Comcast's Exclusive Broadcast of the Paris Olympics in the U.S.
Showcased the Combined Capabilities Across Our Company and
Captivated the Nation's Attention for 17 Days. Average Daily
Viewers of the Games Across Our Linear Networks and Peacock of 31
Million Increased 82% Compared to the Prior Summer Olympics in
2021. Incremental Olympics Revenue in Media Was a Record High $1.9
Billion
3rd Quarter Consolidated Financial Results
Revenue increased 6.5% compared to the prior year period.
Net Income Attributable to Comcast decreased 10.3%.
Adjusted Net Income decreased 3.3%. Adjusted EBITDA
decreased 2.3%.
Earnings per Share (EPS) decreased 4.2% to $0.94.
Adjusted EPS increased 3.3% to $1.12.
Capital Expenditures decreased 11.6% to $2.9 billion.
Connectivity & Platforms’ capital expenditures decreased 6.5%
to $1.9 billion, reflecting lower spending on scalable
infrastructure and customer premise equipment, partially offset by
higher investment in line extensions and support capital. Content
& Experiences' capital expenditures were consistent and
continue to reflect significant spending due to the construction of
Epic Universe theme park in Orlando, which is scheduled to open on
May 22, 2025.
Net Cash Provided by Operating Activities was $7.0
billion. Free Cash Flow was $3.4 billion.
Dividends and Share Repurchases. Comcast paid dividends
totaling $1.2 billion and repurchased 49.9 million of its shares
for $2.0 billion, resulting in a total return of capital to
shareholders of $3.2 billion.
Connectivity & Platforms
($ in millions)
Constant Currency Change5
3rd
Quarter
2024
2023
Change
Connectivity & Platforms
Revenue
Residential Connectivity &
Platforms
$17,866
$17,951
(0.5
%)
(1.0
%)
Business Services Connectivity
2,425
2,320
4.5
%
4.5
%
Total Connectivity & Platforms
Revenue
$20,291
$20,271
0.1
%
(0.4
%)
Connectivity & Platforms Adjusted
EBITDA
Residential Connectivity &
Platforms
$6,904
$6,886
0.3
%
—
%
Business Services Connectivity
1,391
1,335
4.2
%
4.3
%
Total Connectivity & Platforms
Adjusted EBITDA
$8,295
$8,221
0.9
%
0.7
%
Connectivity & Platforms Adjusted
EBITDA Margin
Residential Connectivity &
Platforms
38.6
%
38.4
%
20 bps
40 bps
Business Services Connectivity
57.4
%
57.5
%
(10) bps
(10) bps
Total Connectivity & Platforms
Adjusted EBITDA Margin
40.9
%
40.6
%
30 bps
50 bps
Change percentages represent year/year
growth rates. The changes in Adjusted EBITDA margins are presented
as year/year basis point changes in the rounded Adjusted EBITDA
margins.
Revenue and Adjusted EBITDA for Connectivity &
Platforms were consistent with the prior year period. Adjusted
EBITDA margin increased to 40.9%.
(in thousands)
Net
Additions / (Losses)
3rd
Quarter
3Q24
3Q23
2024
2023
Customer Relationships
Domestic Residential Connectivity &
Platforms Customer Relationships
31,324
31,722
(103
)
(39
)
International Residential Connectivity
& Platforms Customer Relationships
17,716
17,958
78
74
Business Services Connectivity Customer
Relationships
2,627
2,640
(4
)
5
Total Connectivity & Platforms
Customer Relationships
51,667
52,320
(29
)
40
Domestic Broadband
Residential Customers
29,504
29,779
(79
)
(17
)
Business Customers
2,477
2,508
(8
)
(2
)
Total Domestic Broadband
Customers
31,981
32,287
(87
)
(18
)
Total Domestic Wireless Lines
7,519
6,278
319
294
Total Domestic Video Customers
12,834
14,495
(365
)
(490
)
Total Customer Relationships for Connectivity &
Platforms decreased by 29,000 to 51.7 million, primarily reflecting
a decrease in domestic customer relationships, partially offset by
an increase in international customer relationships. Domestic
Residential Connectivity & Platforms relationships include a
negative impact in the quarter from the end of the FCC's Affordable
Connectivity Program ("ACP") in the second quarter of 2024.
Excluding the negative impact from ACP, we estimate that total
customer relationships increased by 67,000. Total domestic
broadband customer net losses were 87,000. Excluding the negative
impact from ACP, we estimate that total broadband net additions
were 9,000. Total domestic wireless line net additions were 319,000
and total domestic video customer net losses were 365,000.
Residential Connectivity & Platforms
($ in millions)
Constant Currency Change5
3rd
Quarter
2024
2023
Change
Revenue
Domestic Broadband
$6,539
$6,366
2.7
%
2.7
%
Domestic Wireless
1,093
917
19.2
%
19.2
%
International Connectivity
1,236
1,109
11.4
%
8.3
%
Total Residential Connectivity
8,869
8,393
5.7
%
5.3
%
Video
6,713
7,154
(6.2
%)
(6.8
%)
Advertising
987
960
2.7
%
1.6
%
Other
1,298
1,444
(10.1
%)
(10.7
%)
Total Revenue
$17,866
$17,951
(0.5
%)
(1.0
%)
Operating Expenses
Programming
$4,102
$4,460
(8.0
%)
(8.6
%)
Non-Programming
6,860
6,605
3.9
%
3.0
%
Total Operating Expenses
$10,962
$11,065
(0.9
%)
(1.7
%)
Adjusted EBITDA
$6,904
$6,886
0.3
%
—
%
Adjusted EBITDA Margin
38.6
%
38.4
%
20 bps
40 bps
Change percentages represent year/year
growth rates. The changes in Adjusted EBITDA margins are presented
as year/year basis point changes in the rounded Adjusted EBITDA
margins.
Revenue for Residential Connectivity & Platforms was
consistent with the prior year period, driven by increases in
domestic broadband, domestic wireless, international connectivity
and advertising revenue, offset by decreases in video and other
revenue. Domestic broadband revenue increased due to higher average
rates. Domestic wireless revenue increased due to an increase in
the number of customer lines and device sales. International
connectivity revenue increased primarily due to an increase in
broadband revenue from higher average rates and the positive impact
of foreign currency. Advertising revenue increased due to higher
domestic political advertising, partially offset by lower domestic
nonpolitical and international advertising. Video revenue decreased
due to a decline in the number of video customers, partially offset
by an overall increase in average rates. Other revenue decreased
primarily due to lower residential wireline voice revenue, driven
by a decline in the number of customers.
Adjusted EBITDA for Residential Connectivity &
Platforms was consistent with the prior year period reflecting
consistent revenue and operating expenses. Programming expenses
decreased primarily due to a decline in the number of domestic
video customers, partially offset by rate increases under our
domestic programming contracts. Non-programming expenses increased
primarily due to higher direct product costs, the impact of foreign
currency, increased technical and support costs and higher
marketing and promotion, including spending associated with the
Paris Olympics. Adjusted EBITDA margin increased to
38.6%.
Business Services Connectivity
($ in millions)
Constant Currency Change5
3rd
Quarter
2024
2023
Change
Revenue
$2,425
$2,320
4.5%
4.5%
Operating Expenses
1,034
985
4.9%
4.8%
Adjusted EBITDA
$1,391
$1,335
4.2%
4.3%
Adjusted EBITDA Margin
57.4
%
57.5
%
(10) bps
(10) bps
Change percentages represent year/year
growth rates. The changes in Adjusted EBITDA margins are presented
as year/year basis point changes in the rounded Adjusted EBITDA
margins.
Revenue for Business Services Connectivity increased due
to an increase in revenue from medium-sized and enterprise
customers, and an increase in revenue from small business customers
driven by higher average rates.
Adjusted EBITDA for Business Services Connectivity
increased due to higher revenue, partially offset by higher
operating expenses. The increase in operating expenses was
primarily due to increases in direct product costs and marketing
and promotion expenses. Adjusted EBITDA margin decreased to
57.4%.
Content & Experiences
($ in millions)
3rd
Quarter
2024
2023
Change
Content & Experiences
Revenue
Media
$8,231
$6,029
36.5
%
Excluding Olympics7
6,325
6,029
4.9
%
Studios
2,826
2,518
12.3
%
Theme Parks
2,289
2,418
(5.3
%)
Headquarters & Other
11
13
(16.8
%)
Eliminations
(758
)
(419
)
(80.7
%)
Total Content & Experiences
Revenue
$12,599
$10,559
19.3
%
Content & Experiences Adjusted
EBITDA
Media
$650
$723
(10.1
%)
Studios
468
429
9.0
%
Theme Parks
847
983
(13.8
%)
Headquarters & Other
(200
)
(178
)
(12.6
%)
Eliminations
38
17
125.6
%
Total Content & Experiences
Adjusted EBITDA
$1,802
$1,973
(8.7
%)
Revenue for Content & Experiences increased compared
to the prior year period, including $1.9 billion of incremental
revenue from the Paris Olympics included in the Media segment.
Adjusted EBITDA for Content & Experiences decreased due
to declines in Theme Parks and Media, partially offset by growth at
Studios.
Media
($ in millions)
3rd
Quarter
2024
2023
Change
Revenue
Domestic Advertising
$3,347
$1,913
74.9
%
Excluding Olympics7
1,915
1,913
0.1
%
Domestic Distribution
3,272
2,591
26.3
%
Excluding Olympics7
2,798
2,591
8.0
%
International Networks
1,070
1,019
5.0
%
Other
542
506
7.2
%
Total Revenue
$8,231
$6,029
36.5
%
Excluding Olympics7
6,325
6,029
4.9
%
Operating Expenses
7,581
5,306
42.9
%
Adjusted EBITDA
$650
$723
(10.1
%)
Revenue for Media increased primarily due to higher
domestic advertising and domestic distribution revenue. Excluding
$1.9 billion of incremental revenue from the Paris Olympics, Media
revenue increased 4.9%. Domestic advertising revenue increased
primarily reflecting the Paris Olympics and additional Peacock
sales, partially offset by lower revenue at our networks. Domestic
distribution revenue increased primarily reflecting the broadcast
of the Paris Olympics and higher revenue at Peacock, driven by an
increase in paid subscribers compared to the prior year period.
International networks revenue increased primarily due to the
positive impact of foreign currency and an increase in revenue
associated with the distribution of sports networks. Other revenue
increased primarily due to an increase in revenue from the
licensing of our owned content.
Adjusted EBITDA for Media decreased due to higher
operating expenses, which more than offset higher revenue. The
increase in operating expenses was primarily due to increased
sports programming costs associated with the Paris Olympics, higher
programming costs at Peacock and an increase in other sports
programming costs for our domestic television networks. Media
results include $1.5 billion of revenue and an Adjusted EBITDA6
loss of $436 million related to Peacock, including amounts
attributable to the Paris Olympics, compared to $830 million of
revenue and an Adjusted EBITDA6 loss of $565 million in the prior
year period.
Studios
($ in millions)
3rd
Quarter
2024
2023
Change
Revenue
Content Licensing
$1,865
$1,691
10.3
%
Theatrical
611
504
21.3
%
Other
350
324
8.2
%
Total Revenue
$2,826
$2,518
12.3
%
Operating Expenses
2,359
2,089
12.9
%
Adjusted EBITDA
$468
$429
9.0
%
Revenue for Studios increased primarily due to higher
content licensing revenue and theatrical revenue. Content licensing
revenue increased primarily due to the timing of when content was
made available by our television studios under licensing
agreements, including the impact of the work stoppages in the prior
year period. Theatrical revenue increased due to the successful
performance of recent releases, including Despicable Me 4 and
Twisters.
Adjusted EBITDA for Studios increased due to higher
revenue, which more than offset higher operating expenses. The
increase in operating expenses primarily reflected higher
programming and production expenses, mainly due to higher costs
associated with content licensing sales, including the impact of
the work stoppages in the prior year period.
Theme Parks
($ in millions)
3rd
Quarter
2024
2023
Change
Revenue
$2,289
$2,418
(5.3%)
Operating Expenses
1,442
1,435
0.5%
Adjusted EBITDA
$847
$983
(13.8%)
Revenue for Theme Parks decreased primarily due to lower
revenue at our domestic theme parks, driven by lower guest
attendance.
Adjusted EBITDA for Theme Parks decreased, reflecting
lower revenue and consistent operating expenses.
Headquarters & Other
Content & Experiences Headquarters & Other includes
overhead, personnel costs and costs associated with corporate
initiatives. Headquarters & Other Adjusted EBITDA loss in the
third quarter was $200 million, compared to a loss of $178 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 $758 million, compared to $419 million in the
prior year period, and Adjusted EBITDA eliminations were a benefit
of $38 million, compared to a benefit of $17 million in the prior
year period.
Corporate, Other and Eliminations
($ in millions)
3rd
Quarter
2024
2023
Change
Corporate & Other
Revenue
$675
$643
5.0
%
Operating Expenses
978
893
9.6
%
Adjusted EBITDA
($302
)
($249
)
(21.3
%)
Eliminations
Revenue
($1,495
)
($1,358
)
10.1
%
Operating Expenses
(1,436
)
(1,375
)
4.5
%
Adjusted EBITDA
($59
)
$16
NM
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. Corporate & Other Adjusted EBITDA decreased primarily due
to increased marketing associated with the Paris Olympics.
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 $1.5 billion,
compared to $1.4 billion in the prior year period, and Adjusted
EBITDA eliminations were a loss of $59 million compared to a
benefit of $16 million in the prior year period. Current year
amounts reflect an increase in eliminations associated with the
Paris 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
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.
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 presented on a
consistent basis with the respective segments and disaggregated in
accordance with GAAP.
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 for reconciliations of
non-GAAP financial measures.
Numerical information is presented on a rounded basis using
actual amounts, unless otherwise noted. The change in Peacock paid
subscribers is calculated using rounded paid subscriber 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, October 31, 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 today, October 31, 2024, starting at 11:30 a.m.
ET 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; 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
Nine Months Ended
(in millions, except per share data)
September 30,
September 30,
2024
2023
2024
2023
Revenue
$32,070
$30,115
$91,817
$90,319
Costs and expenses
Programming and production
10,216
8,652
27,000
26,506
Marketing and promotion
1,989
1,866
5,929
5,929
Other operating and administrative
10,128
9,629
29,615
28,247
Depreciation
2,219
2,203
6,548
6,662
Amortization
1,659
1,290
4,421
4,146
26,211
23,640
73,512
71,489
Operating income
5,859
6,475
18,304
18,830
Interest expense
(1,037)
(1,060)
(3,065)
(3,068)
Investment and other income (loss),
net
Equity in net income (losses) of
investees, net
(152)
49
(438)
454
Realized and unrealized gains (losses) on
equity securities, net
(22)
(87)
(163)
(130)
Other income (loss), net
171
88
461
349
(3)
50
(140)
672
Income before income taxes
4,819
5,465
15,099
16,434
Income tax expense
(1,243)
(1,468)
(3,906)
(4,481)
Net income
3,576
3,997
11,192
11,954
Less: Net income (loss) attributable to
noncontrolling interests
(53)
(49)
(222)
(175)
Net income attributable to Comcast
Corporation
$3,629
$4,046
$11,415
$12,128
Diluted earnings per common share
attributable to Comcast Corporation shareholders
$0.94
$0.98
$2.90
$2.90
Diluted weighted-average number of common
shares
3,880
4,141
3,930
4,184
TABLE 2
Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended
(in millions)
September 30,
2024
2023
OPERATING ACTIVITIES
Net income
$11,192
$11,954
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
10,969
10,807
Share-based compensation
983
955
Noncash interest expense (income), net
331
235
Net (gain) loss on investment activity and
other
620
(266)
Deferred income taxes
123
394
Changes in operating assets and
liabilities, net of effects of acquisitions and divestitures:
Current and noncurrent receivables,
net
74
(26)
Film and television costs, net
(287)
(531)
Accounts payable and accrued expenses
related to trade creditors
(906)
(518)
Other operating assets and liabilities
(3,505)
(425)
Net cash provided by operating
activities
19,593
22,579
INVESTING ACTIVITIES
Capital expenditures
(8,267)
(8,922)
Cash paid for intangible assets
(2,043)
(2,405)
Construction of Universal Beijing
Resort
(111)
(119)
Proceeds from sales of businesses and
investments
689
410
Purchases of investments
(934)
(949)
Other
108
267
Net cash (used in) investing
activities
(10,559)
(11,718)
FINANCING ACTIVITIES
Proceeds from (repayments of) short-term
borrowings, net
—
(660)
Proceeds from borrowings
6,268
6,046
Repurchases and repayments of debt
(2,433)
(3,041)
Repurchases of common stock under
repurchase program and employee plans
(6,920)
(7,770)
Dividends paid
(3,624)
(3,586)
Other
250
(126)
Net cash (used in) financing
activities
(6,459)
(9,136)
Impact of foreign currency on cash, cash
equivalents and restricted cash
21
(18)
Increase (decrease) in cash, cash
equivalents and restricted cash
2,596
1,707
Cash, cash equivalents and restricted
cash, beginning of period
6,282
4,782
Cash, cash equivalents and restricted
cash, end of period
$8,878
$6,489
TABLE 3
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions)
September 30,
December 31,
2024
2023
ASSETS
Current Assets
Cash and cash equivalents
$8,814
$6,215
Receivables, net
14,036
13,813
Other current assets
4,336
3,959
Total current assets
27,186
23,987
Film and television costs
13,340
12,920
Investments
9,021
9,385
Property and equipment, net
61,775
59,686
Goodwill
60,076
59,268
Franchise rights
59,365
59,365
Other intangible assets, net
26,423
27,867
Other noncurrent assets, net
12,686
12,333
$269,871
$264,811
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued expenses
related to trade creditors
$11,779
$12,437
Accrued participations and residuals
1,476
1,671
Deferred revenue
3,778
3,242
Accrued expenses and other current
liabilities
8,977
11,613
Current portion of debt
2,610
2,069
Advance on sale of investment
9,167
9,167
Total current liabilities
37,786
40,198
Noncurrent portion of debt
98,754
95,021
Deferred income taxes
26,263
26,003
Other noncurrent liabilities
20,526
20,122
Redeemable noncontrolling interests
224
241
Equity
Comcast Corporation shareholders'
equity
85,774
82,703
Noncontrolling interests
544
523
Total equity
86,318
83,226
$269,871
$264,811
TABLE 4
Reconciliation from Net Income
Attributable to Comcast Corporation to Adjusted EBITDA
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)
2024
2023
2024
2023
Net income attributable to Comcast
Corporation
$3,629
$4,046
$11,415
$12,128
Net income (loss) attributable to
noncontrolling interests
(53)
(49)
(222)
(175)
Income tax expense
1,243
1,468
3,906
4,481
Interest expense
1,037
1,060
3,065
3,068
Investment and other (income) loss,
net
3
(50)
140
(672)
Depreciation
2,219
2,203
6,548
6,662
Amortization
1,659
1,290
4,421
4,146
Adjustments (1)
(2)
(6)
(11)
(16)
Adjusted EBITDA
$9,735
$9,962
$29,261
$29,621
Reconciliation from Net Cash Provided
by Operating Activities to Free Cash Flow (Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)
2024
2023
2024
2023
Net cash provided by operating
activities
$7,021
$8,154
$19,593
$22,579
Capital expenditures
(2,913)
(3,294)
(8,267)
(8,922)
Cash paid for capitalized software and
other intangible assets
(702)
(827)
(2,043)
(2,405)
Free Cash Flow
$3,406
$4,032
$9,283
$11,253
Alternate Presentation of Free Cash
Flow (Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)
2024
2023
2024
2023
Adjusted EBITDA
$9,735
$9,962
$29,261
$29,621
Capital expenditures
(2,913)
(3,294)
(8,267)
(8,922)
Cash paid for capitalized software and
other intangible assets
(702)
(827)
(2,043)
(2,405)
Cash interest expense
(690)
(744)
(2,503)
(2,566)
Cash taxes
(1,420)
(1,439)
(5,988)
(3,823)
Changes in operating assets and
liabilities
(1,126)
(55)
(2,652)
(2,030)
Noncash share-based compensation
294
287
983
955
Other (2)
228
143
492
423
Free Cash Flow
$3,406
$4,032
$9,283
$11,253
(1)
3rd quarter and year to date 2024 Adjusted
EBITDA exclude $(2) and $(11) million of other operating and
administrative expenses, respectively, related to our investment
portfolio. 3rd quarter and year to date 2023 Adjusted EBITDA
exclude $(6) and $(16) million of other operating and
administrative expenses, respectively, related to our investment
portfolio.
(2)
3rd quarter and year to date 2024 include
adjustments of $(2) and $(11) million, respectively, related to our
investment portfolio and 3rd quarter and year to date 2023 include
adjustments of $(6) and $(16) million, respectively, related to our
investment portfolio, as these amounts are excluded from Adjusted
EBITDA.
TABLE 5
Reconciliations of Adjusted Net Income
and Adjusted EPS (Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
(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
$3,629
$0.94
$4,046
$0.98
$11,415
$2.90
$12,128
$2.90
Change
(10.3%)
(4.2%)
(5.9%)
0.2%
Amortization of acquisition-related
intangible assets (1)
624
0.16
443
0.11
1,494
0.38
1,318
0.32
Investments (2)
83
0.02
(6)
—
333
0.08
(364)
(0.09)
Adjusted Net income and Adjusted
EPS
$4,337
$1.12
$4,483
$1.08
$13,243
$3.37
$13,083
$3.13
Change
(3.3%)
3.3%
1.2%
7.7%
(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
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
Amortization of acquisition-related
intangible assets before income taxes
$817
$571
$1,949
$1,699
Amortization of acquisition-related
intangible assets, net of tax
$624
$443
$1,494
$1,318
(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
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
Realized and unrealized (gains) losses on
equity securities, net
$22
$87
$163
$130
Equity in net (income) losses of
investees, net and other
87
(96)
275
(614)
Investments before income taxes
109
(9)
438
(484)
Investments, net of tax
$83
($6)
$333
($364)
TABLE 6
Reconciliation of Constant Currency
(Unaudited)
Three Months Ended
September 30, 2023
Nine Months Ended
September 30, 2023
Effects of
Constant
Effects of
Constant
As
Foreign
Currency
As
Foreign
Currency
(in millions)
Reported
Currency
Amounts
Reported
Currency
Amounts
Reconciliation of Connectivity &
Platforms Constant Currency
Connectivity & Platforms
Revenue
Residential Connectivity &
Platforms
$17,951
$99
$18,050
$53,888
$253
$54,141
Business Services Connectivity
2,320
—
2,320
6,894
1
6,895
Total Connectivity & Platforms
Revenue
$20,271
$99
$20,370
$60,783
$254
$61,037
Connectivity and Platforms Adjusted
EBITDA
Residential Connectivity &
Platforms
$6,886
$16
$6,902
$20,672
$39
$20,711
Business Services Connectivity
1,335
(1)
1,334
3,988
(1)
3,988
Total Connectivity & Platforms
Adjusted EBITDA
$8,221
$15
$8,237
$24,660
$39
$24,699
Connectivity & Platforms Adjusted
EBITDA Margin
Residential Connectivity &
Platforms
38.4%
(20) bps
38.2%
38.4%
(10) bps
38.3%
Business Services Connectivity
57.5%
- bps
57.5%
57.8%
- bps
57.8%
Total Connectivity & Platforms
Adjusted EBITDA Margin
40.6%
(20) bps
40.4%
40.6%
(10) bps
40.5%
Three Months Ended
September 30, 2023
Nine Months Ended
September 30, 2023
Effects of
Constant
Effects of
Constant
As
Foreign
Currency
As
Foreign
Currency
(in millions)
Reported
Currency
Amounts
Reported
Currency
Amounts
Reconciliation of Residential
Connectivity & Platforms Constant Currency
Revenue
Domestic broadband
$6,366
$—
$6,366
$19,086
$—
$19,086
Domestic wireless
917
—
917
2,644
—
2,644
International connectivity
1,109
31
1,141
3,009
77
3,086
Total residential connectivity
$8,393
$31
$8,424
$24,739
$77
$24,816
Video
7,154
47
7,201
21,895
124
22,018
Advertising
960
11
971
2,860
25
2,885
Other
1,444
10
1,454
4,394
28
4,422
Total Revenue
$17,951
$99
$18,050
$53,888
$253
$54,141
Operating Expenses
Programming
$4,460
$28
$4,488
$13,638
$74
$13,712
Non-Programming
6,605
55
6,659
19,578
140
19,718
Total Operating Expenses
$11,065
$83
$11,148
$33,216
$214
$33,430
Adjusted EBITDA
$6,886
$16
$6,902
$20,672
$39
$20,711
Adjusted EBITDA Margin
38.4%
(20) bps
38.2%
38.4%
(10) bps
38.3%
TABLE 7
Reconciliation of Media Revenue
Excluding Olympics (Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)
2024
2023
Change
2024
2023
Change
Revenue
$8,231
$6,029
36.5%
$20,926
$18,376
13.9%
Paris Olympics
1,906
—
1,906
—
Revenue excluding Olympics
$6,325
$6,029
4.9%
$19,020
$18,376
3.5%
Reconciliation of Media Domestic
Advertising Revenue Excluding Olympics (Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)
2024
2023
Change
2024
2023
Change
Revenue
$3,347
$1,913
74.9%
$7,363
$5,965
23.4%
Paris Olympics
1,432
—
1,432
—
Revenue excluding Olympics
$1,915
$1,913
0.1%
$5,931
$5,965
(0.6) %
Reconciliation of Media Domestic
Distribution Revenue Excluding Olympics (Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)
2024
2023
Change
2024
2023
Change
Revenue
$3,272
$2,591
26.3%
$8,942
$7,916
13.0%
Paris Olympics
473
—
473
—
Revenue excluding Olympics
$2,798
$2,591
8.0%
$8,468
$7,916
7.0%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241031386583/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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