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Comcast Reports 1st Quarter 2024 Results
"Our team is continuing to execute exceptionally well in a dynamic and competitive marketplace," said Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation. "We delivered double-digit growth in Adjusted EPS and free cash flow while returning $3.6 billion to shareholders, investing aggressively in our businesses, and maintaining our strong balance sheet. We grew broadband ARPU over 4%, delivered 7% revenue growth in our connectivity businesses, and expanded our Adjusted EBITDA margin across Connectivity & Platforms. In Studios, following a record year with eight Oscars including Best Picture, our film group continues to leverage our incredible IP with hits like Kung Fu Panda 4; and Peacock remains one of the fastest growing domestic streamers with impressive acquisition, retention and engagement trends. Overall, I am proud of our ability to consistently perform at the highest levels and continue to position the company for long-term growth."
($ in millions, except per share data)
1st Quarter
---------------------------------------------------------------------------------------------------
Consolidated Results 2024 2023 2023 Change Change
-------------------- -------------------- -------------------- -------------------- -------------------
Revenue $30,058 $29,691 $29,691 1.2% 1.2%
Net Income Attributable to Comcast $3,857 $3,834 $3,834 0.6% 0.6%
Adjusted Net Income(1) $4,171 $3,877 $3,877 7.6% 7.6%
Adjusted EBITDA(2) $9,355 $9,415 $9,415 (0.6% (0.6% )
Earnings per Share(3) $0.97 $0.91 $0.91 6.5% 6.5%
Adjusted Earnings per Share(1) $1.04 $0.92 $0.92 13.9% 13.9%
Net Cash Provided by Operating Activities $7,848 $7,228 $7,228 8.6% 8.6%
Free Cash Flow(4) $4,538 $3,800 $3,800 19.4% 19.4%
1st Quarter 2024 Highlights:
Adjusted EPS increased 13.9% to $1.04; Generated Free Cash Flow of $4.5 Billion Total Return of Capital to Shareholders Increased 13.5% to $3.6 Billion Through a Combination of $1.2 Billion in Dividend Payments and $2.4 Billion in Share Repurchases Connectivity & Platforms Adjusted EBITDA Increased 1.5% to $8.2 Billion and Adjusted EBITDA Margin Increased 30 Basis Points to 40.5%. Excluding the Impact of Foreign Currency, Connectivity & Platforms Adjusted EBITDA Increased 1.3% and Adjusted EBITDA Margin Increased 50 Basis Points Domestic Broadband Average Rate Per Customer Increased 4.2%, Driving Domestic Broadband Revenue Growth of 3.9% to $6.6 Billion Domestic Wireless Customer Lines Increased 21% Compared to the Prior Year Period to 6.9 Million, Including Net Additions of 289,000 in the First Quarter Kung Fu Panda 4 Debuted in March and Grossed Over $480 Million in Worldwide Box Office Year-to-Date, Contributing to the Panda Franchise's Cumulative Total of $2.3 Billion. Oppenheimer Won 7 Oscars at the Academy Awards, Began Streaming Exclusively on Peacock Beginning in February and Was the Most Watched Pay 1 Movie in Peacock's History Peacock Paid Subscribers Increased 55% Compared to the Prior Year Period to 34 Million, Including Net Additions of 3 Million in the First Quarter. Peacock Revenue Increased 54% to $1.1 Billion; Adjusted EBITDA Improved Compared to the Prior Year Period and Also on a Sequential Basis
1st Quarter Consolidated Financial Results
Revenue increased 1.2% compared to the prior year period. Net Income Attributable to Comcast was consistent with the prior year period. Adjusted Net Income increased 7.6%. Adjusted EBITDA was consistent with the prior year period.
Earnings per Share (EPS) increased 6.5% to $0.97. Adjusted EPS increased 13.9% to $1.04.
Capital Expenditures decreased 1.3% to $2.6 billion. Connectivity & Platforms' capital expenditures decreased 3.8% to $1.9 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 3.8% to $676 million, primarily driven by investment in Theme Parks, which continues to reflect significant spending due to the construction of Epic Universe theme park in Orlando, which is scheduled to open in 2025.
Net Cash Provided by Operating Activities was $7.8 billion. Free Cash Flow was $4.5 billion.
Dividends and Share Repurchases. Comcast paid dividends totaling $1.2 billion and repurchased 56.0 million of its shares for $2.4 billion, resulting in a total return of capital to shareholders of $3.6 billion.
Connectivity & Platforms
($ in millions) Constant
Currency
Change(5)
1st Quarter
-----------------------------------------------------------------------------------------------------------------------
2024 2023 2023 Change Change
---------- -------------------- ---------- -------------------- -------------------
Connectivity & Platforms Revenue
Residential Connectivity & Platforms $17,868 $17,869 $17,869 -- -- % (0.8 %)
Business Services Connectivity 2,407 2,283 2,283 5.4 5.4 % 5.4 %
---------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- ----- ---------- ---------
Total Connectivity & Platforms Revenue $20,275 $20,153 $20,153 0.6 0.6 % (0.1 %)
Connectivity & Platforms Adjusted EBITDA
Residential Connectivity & Platforms $6,852 $6,762 $6,762 1.3 1.3 % 1.1 %
Business Services Connectivity 1,366 1,332 1,332 2.6 2.6 % 2.6 %
---------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- ----- ---------- ---------
Total Connectivity & Platforms Adjusted EBITDA $8,218 $8,093 $8,093 1.5 1.5 % 1.3 %
Connectivity & Platforms Adjusted EBITDA Margin
Residential Connectivity & Platforms 38.3 % 37.8 37.8 % 50 bps 50 bps 60 bps
Business Services Connectivity 56.7 % 58.3 58.3 % (160) bps (160) bps (160) bps
---------- -------------------- -------------------- ---------- -------------------- -------------------- ------------------- -------------------
Total Connectivity & Platforms Adjusted EBITDA Margin 40.5 % 40.2 40.2 % 30 bps 30 bps 50 bps
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 40.5%.
(in thousands) Net Additions / Net Additions /
-------------------- ----------------------------------------
(Losses) (Losses) (Losses) (Losses) (Losses)
-------------------- ---------------------------------------------------------------------------- ------------------------------------------------------------ -------------------- ----------------------------------------
1st Quarter 1st Quarter
-------------------- ------------------------------------------------------------
1Q24 1Q23 1Q23 2024 2024 2023
-------------------- -------------------- -------------------- -------------------- ---------- ----------
Customer Relationships
31,555 31,826 31,826 (94 (94 ) (34 )
Domestic Residential Connectivity & Platforms Customer Relationships
17,782 18,051 18,051 (65 (65 ) 111
International Residential Connectivity & Platforms Customer Relationships
2,634 2,630 2,630 (7 (7 ) 5
Business Services Connectivity Customer Relationships
-------------------- -------------------- -------------------- -------------------- ---------- -------------------- ---------- --------------------
Total Connectivity & Platforms Customer Relationships 51,971 52,507 52,507 (166 (166 ) 82
Domestic Broadband
29,693 29,815 29,815 (55 (55 ) 3
Residential Customers
2,495 2,508 2,508 (10 (10 ) 2
Business Customers
-------------------- -------------------- -------------------- -------------------- ---------- -------------------- ---------- --------------------
Total Domestic Broadband Customers 32,188 32,324 32,324 (65 (65 ) 5
Total Domestic Wireless Lines 6,877 5,668 5,668 289 289 355
Total Domestic Video Customers 13,618 15,528 15,528 (487 (487 ) (614 )
Total Customer Relationships for Connectivity & Platforms decreased by 166,000 to 52.0 million, primarily reflecting decreases in Residential Connectivity & Platforms customer relationships. Total domestic broadband customer net losses were 65,000, total domestic wireless line net additions were 289,000 and total domestic video customer net losses were 487,000.
Residential Connectivity & Platforms
($ in millions) Constant
Currency
Change(5)
1st Quarter
-----------------------------------------------------------------------------------------------------------------------
2024 2023 2023 Change Change
---------- -------------------- ---------- -------------------- -------------------
Revenue
$6,591 $6,343 $6,343 3.9 3.9 % 3.9 %
Domestic Broadband
972 858 858 13.3 13.3 % 13.3 %
Domestic Wireless
1,116 897 897 24.4 24.4 % 19.4 %
International Connectivity
---------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- ----- ---------- ---------
8,679 8,099 8,099 7.2 7.2 % 6.7 %
Total Residential Connectivity
6,876 7,382 7,382 (6.9 (6.9 %) (7.7 %)
Video
951 907 907 4.9 4.9 % 3.5 %
Advertising
1,362 1,482 1,482 (8.1 (8.1 %) (9.0 %)
Other
---------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- ----- ---------- ---------
Total Revenue $17,868 $17,869 $17,869 -- -- % (0.8 %)
Operating Expenses
$4,405 $4,600 $4,600 (4.2 (4.2 %) (5.1 %)
Programming
6,611 6,508 6,508 1.6 1.6 % 0.4 %
Non-Programming
---------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- ----- ---------- ---------
Total Operating Expenses $11,016 $11,108 $11,108 (0.8 (0.8 %) (1.9 %)
Adjusted EBITDA $6,852 $6,762 $6,762 1.3 1.3 % 1.1 %
38.3 % 37.8 37.8 % 50 bps 50 bps 60 bps
Adjusted EBITDA Margin
Revenue for Residential Connectivity & Platforms was consistent with the prior year period, driven by increases in domestic broadband, international connectivity, domestic wireless and advertising revenue, offset by decreases in video and other revenue. Domestic broadband revenue increased due to higher average rates. International connectivity revenue increased due to an increase in broadband revenue from higher average rates and in wireless revenue, reflecting higher sales of wireless services and devices. These increases include the positive impact of foreign currency. Domestic wireless revenue increased due to an increase in the number of customer lines. Advertising revenue increased primarily due to higher domestic political advertising, higher revenue from our advanced advertising business and the positive impact of foreign currency, partially offset by lower domestic advertising. Video revenue decreased due to a decline in the number of video customers, partially offset by an overall increase in average rates and the positive impact of foreign currency. Other revenue decreased primarily due to lower residential wireline voice revenue, driven by a decline in the number of customers.
Adjusted EBITDA for Residential Connectivity & Platforms increased due to lower operating expenses. Programming expenses decreased primarily due to a decline in the number of domestic video customers, partially offset by rate increases under our domestic programming contracts and the impact of foreign currency. Non-programming expenses increased primarily due to higher technical and support costs, the impact of foreign currency and increased direct product costs, partially offset by lower spending on marketing and promotion expenses. Adjusted EBITDA margin increased to 38.3%.
Business Services Connectivity
($ in millions) Constant Constant
Currency Currency
Change(5) Change(5)
--------------------
1st Quarter
------------------------------------------------------------------------------------------------------------------------
2024 2023 2023 Change Change
---------- -------------------- ---------- -------------------- --------------------
Revenue $2,407 $2,283 $2,283 5.4% 5.4% 5.4% 5.4%
Operating Expenses 1,041 952 952 9.4% 9.4% 9.4% 9.4%
---------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- --------------------
Adjusted EBITDA $1,366 $1,332 $1,332 2.6% 2.6% 2.6% 2.6%
56.7 % 58.3 58.3 % (160) bps (160) bps (160) bps (160) bps
Adjusted EBITDA Margin
Revenue for Business Services Connectivity increased due to an increase in revenue from small business customers, driven by higher average rates, and an increase in revenue from medium-sized and enterprise customers.
Adjusted EBITDA for Business Services Connectivity increased due to higher revenue, partially offset by higher operating expenses. The increase in operating expenses was primarily due to increases in direct product costs, marketing and promotion expenses, and technical and support costs. Adjusted EBITDA margin decreased to 56.7%.
Content & Experiences
($ in millions)
1st Quarter
-----------------------------------------------------------------------------------------------------------------------
2024 2023 2023 Change Change
---------- -------------------- ---------- -------------------- -------------------
Content & Experiences Revenue
Media $6,371 $6,152 $6,152 3.6 3.6 %
Studios 2,743 2,956 2,956 (7.2 (7.2 %)
Theme Parks 1,979 1,949 1,949 1.5 1.5 %
Headquarters & Other 12 19 19 (36.8 (36.8 %)
Eliminations (731 ) (817 (817 ) 10.5 10.5 %
---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- ---------
Total Content & Experiences Revenue $10,374 $10,259 $10,259 1.1 1.1 %
Content & Experiences Adjusted EBITDA
Media $827 $880 $880 (6.1 (6.1 %)
Studios 244 277 277 (12.2 (12.2 %)
Theme Parks 632 658 658 (3.9 (3.9 %)
Headquarters & Other (243 ) (232 (232 ) (4.8 (4.8 %)
Eliminations 33 24 24 36.9 36.9 %
---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- ---------
Total Content & Experiences Adjusted EBITDA $1,493 $1,607 $1,607 (7.1 (7.1 %)
Revenue for Content & Experiences increased compared to the prior year period driven by Media and Theme Parks. Adjusted EBITDA for Content & Experiences decreased primarily due to decreases in Media, Studios and Theme Parks.
Media
($ in millions)
1st Quarter
---------------------------------------------------------------------------------------------------
2024 2023 2023 Change Change
-------------------- -------------------- -------------------- -------------------- -------------------
Revenue
$2,025 $2,025 $2,025 -- -- %
Domestic Advertising
2,906 2,709 2,709 7.2 7.2 %
Domestic Distribution
1,021 1,008 1,008 1.3 1.3 %
International Networks
420 410 410 2.5 2.5 %
Other
-------------------- -------------------- -------------------- -------------------- -------------- -----
Total Revenue $6,371 $6,152 $6,152 3.6 3.6 %
Operating Expenses 5,545 5,272 5,272 5.2 5.2 %
-------------------- -------------------- -------------------- -------------------- -------------- -----
Adjusted EBITDA $827 $880 $880 (6.1 (6.1 %)
Revenue for Media increased primarily due to higher domestic distribution 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 the positive impact of foreign currency. Domestic advertising revenue was consistent primarily due to lower revenue at our networks, offset by an increase in revenue at Peacock.
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 higher programming costs at Peacock. Media results include $1.1 billion of revenue and an Adjusted EBITDA(6) loss of $639 million related to Peacock, compared to $685 million of revenue and an Adjusted EBITDA(6) loss of $704 million in the prior year period.
Studios
($ in millions)
1st Quarter
---------------------------------------------------------------------------------------------------
2024 2023 2023 Change Change
-------------------- -------------------- -------------------- -------------------- -------------------
Revenue
$2,101 $2,344 $2,344 (10.4 (10.4 %)
Content Licensing
330 319 319 3.4 3.4 %
Theatrical
312 292 292 6.6 6.6 %
Other
-------------------- -------------------- -------------------- -------------------- ---------- ---------
Total Revenue $2,743 $2,956 $2,956 (7.2 (7.2 %)
Operating Expenses 2,499 2,678 2,678 (6.7 (6.7 %)
-------------------- -------------------- -------------------- -------------------- ---------- ---------
Adjusted EBITDA $244 $277 $277 (12.2 (12.2 %)
Revenue for Studios decreased due to lower content licensing revenue, primarily reflecting the timing of when content was made available by our film studios. Theatrical revenue increased due to the successful performance of recent releases, including Kung Fu Panda 4 and Migration, compared to theatrical releases in the prior year period, including Puss in Boots: The Last Wish and M3GAN.
Adjusted EBITDA for Studios decreased due to lower revenue, which more than offset lower operating expenses. The decrease in operating expenses primarily reflected lower programming and production expenses, mainly due to lower costs associated with the timing of when content was made available by our film studios.
Theme Parks
($ in millions)
1st Quarter
----------------------------------------------------------------------------------------------------
2024 2023 2023 Change Change
-------------------- -------------------- -------------------- -------------------- --------------------
Revenue $1,979 $1,949 $1,949 1.5% 1.5%
Operating Expenses 1,347 1,291 1,291 4.3% 4.3%
-------------------- -------------------- -------------------- -------------------- --------------------
Adjusted EBITDA $632 $658 $658 (3.9%) (3.9%)
Revenue for Theme Parks increased due to higher revenue at our domestic theme parks. International theme parks revenue was consistent due to higher underlying revenue, offset by the negative impact of foreign currency.
Adjusted EBITDA for Theme Parks decreased, reflecting higher operating expenses and the negative impact of foreign currency, which more than offset higher revenue. The increase in operating expenses was primarily due to higher marketing and promotions costs.
Headquarters & Other
Content & Experiences Headquarters & Other includes overhead, personnel costs and costs associated with corporate initiatives. Headquarters & Other Adjusted EBITDA loss in the first quarter was $243 million, compared to a loss of $232 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 $731 million, compared to $817 million in the prior year period, and Adjusted EBITDA eliminations were a benefit of $33 million, compared to a benefit of $24 million in the prior year period.
Corporate, Other and Eliminations
($ in millions)
1st Quarter
------------------------------------------------------------------------------------------------------------------------
2024 2023 2023 Change Change
---------- -------------------- ---------- -------------------- ----------------------------------------
Corporate & Other
Revenue $767 $707 $707 8.6 8.6 %
Operating Expenses 1,096 995 995 10.2 10.2 %
---------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
Adjusted EBITDA ($329 ) ($288 ($288 ) (14.2 (14.2 %)
Eliminations
Revenue ($1,358 ) ($1,427 ($1,427 ) (4.8 (4.8 %)
Operating Expenses (1,332 ) (1,430 (1,430 ) (6.8 (6.8 %)
---------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- --------------------
Adjusted EBITDA ($26 ) $3 $3 N 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 primarily due to higher costs related to our corporate functions, Sky and Xumo.
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 $26 million compared to a benefit of $3 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. 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. 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. 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. 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. 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.
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, April 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, April 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 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 Three Months Ended
(in millions, except per share data) March 31, March 31,
2024 2024 2023
-------------------- -------------------- --------------------
Revenue $30,058 $30,058 $29,691
Costs and expenses
8,823 8,823 9,004
Programming and production
2,018 2,018 1,963
Marketing and promotion
9,857 9,857 9,301
Other operating and administrative
2,175 2,175 2,264
Depreciation
1,376 1,376 1,513
Amortization
-------------------- -------------------- --------------------
24,248 24,248 24,045
-------------------- -------------------- --------------------
Operating income 5,810 5,810 5,646
Interest expense (1,002) (1,002) (1,010)
Investment and other income (loss), net
158 158 485
Equity in net income (losses) of investees, net
(51) (51) (6)
Realized and unrealized gains (losses) on equity securities, net
191 191 128
Other income (loss), net
-------------------- -------------------- --------------------
298 298 607
-------------------- -------------------- --------------------
Income before income taxes 5,105 5,105 5,243
Income tax expense (1,328) (1,328) (1,476)
-------------------- -------------------- --------------------
Net income 3,777 3,777 3,767
Less: Net income (loss) attributable to noncontrolling interests (79) (79) (67)
-------------------- -------------------- --------------------
Net income attributable to Comcast Corporation $3,857 $3,857 $3,834
==================== ==================== ====================
Diluted earnings per common share attributable to Comcast Corporation shareholders $0.97 $0.97 $0.91
==================== ==================== ====================
Diluted weighted-average number of common shares 3,992 3,992 4,227
==================== ==================== ====================
TABLE 2
Consolidated Statements of Cash Flows (Unaudited)
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Three Months Ended Three Months Ended
(in millions) March 31, March 31,
2024 2024 2023
-------------------- -------------------- --------------------
OPERATING ACTIVITIES
$3,777 $3,777 $3,767
Net income
Adjustments to reconcile net income to net cash provided by operating activities:
3,551 3,551 3,777
Depreciation and amortization
373 373 359
Share-based compensation
103 103 78
Noncash interest expense (income), net
(164) (164) (517)
Net (gain) loss on investment activity and other
(17) (17) 82
Deferred income taxes
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:
643 643 363
Current and noncurrent receivables, net
124 124 13
Film and television costs, net
(446) (446) (651)
Accounts payable and accrued expenses related to trade creditors
(97) (97) (43)
Other operating assets and liabilities
-------------------- -------------------- --------------------
7,848 7,848 7,228
Net cash provided by operating activities
-------------------- -------------------- --------------------
INVESTING ACTIVITIES
(2,630) (2,630) (2,664)
Capital expenditures
(679) (679) (765)
Cash paid for intangible assets
(108) (108) (87)
Construction of Universal Beijing Resort
274 274 343
Proceeds from sales of businesses and investments
(404) (404) (149)
Purchases of investments
35 35 (48)
Other
-------------------- -------------------- --------------------
(3,511) (3,511) (3,370)
Net cash (used in) investing activities
-------------------- -------------------- --------------------
FINANCING ACTIVITIES
-- -- (660)
Proceeds from (repayments of) short-term borrowings, net
26 26 1,059
Proceeds from borrowings
(289) (289) (49)
Repurchases and repayments of debt
(2,664) (2,664) (2,176)
Repurchases of common stock under repurchase program and employee plans
(1,193) (1,193) (1,174)
Dividends paid
97 97 (82)
Other
-------------------- -------------------- --------------------
(4,023) (4,023) (3,082)
Net cash (used in) financing activities
-------------------- -------------------- --------------------
Impact of foreign currency on cash, cash equivalents and restricted cash (10) (10) 20
Increase (decrease) in cash, cash equivalents and restricted cash 304 304 796
Cash, cash equivalents and restricted cash, beginning of period 6,282 6,282 4,782
-------------------- -----------------