Comcast Reports 1st Quarter 2023 Results

PHILADELPHIA--()--Comcast Corporation (NASDAQ: CMCSA) today reported results for the quarter ended March 31, 2023.

"We delivered strong first quarter results as our team executed exceptionally well," said Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation. "We grew Adjusted EBITDA and Adjusted EPS, and generated a significant amount of free cash flow. We accomplished all of this while continuing to invest in future growth initiatives. Also, importantly, we had solid revenue growth in our high-margin connectivity businesses, while increasing our Peacock subscribers more than 60% year-over-year. Our theme parks set a new record of Adjusted EBITDA for a first quarter. In addition, we returned a healthy amount of capital to our shareholders and maintained an enviable balance sheet. As we look ahead, we have great momentum across the company, including Studios where Super Mario Bros. has smashed global box office records to become one of the most successful movies of 2023."

 

 

 

 

 

 

 

($ in millions, except per share data)

 

 

 

 

 

 

1st Quarter

 

 

Consolidated Results

2023

2022

Change

 

 

 

 

 

 

 

 

Revenue

$29,691

$31,010

(4.3

%)

 

 

Net Income Attributable to Comcast

$3,834

$3,549

8.0

%

 

 

Adjusted Net Income1

$3,877

$3,900

(0.6

%)

 

 

Adjusted EBITDA2

$9,415

$9,150

2.9

%

 

 

Earnings per Share3

$0.91

$0.78

16.7

%

 

 

Adjusted Earnings per Share1

$0.92

$0.86

7.0

%

 

 

Net Cash Provided by Operating Activities

$7,228

$7,257

(0.4

%)

 

 

Free Cash Flow4

$3,800

$4,760

(20.2

%)

 

 

 

 

 

 

 

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.

1st Quarter 2023 Highlights:

  • Consolidated Adjusted EBITDA Increased 2.9% to $9.4 Billion; Adjusted EPS Increased 7.0% to $0.92; Generated Free Cash Flow of $3.8 Billion
  • Returned $3.2 Billion to Shareholders Through a Combination of $1.2 Billion in Dividend Payments and $2.0 Billion in Share Repurchases
  • Connectivity & Platforms Adjusted EBITDA Increased 3.2% to $8.1 Billion, Driven by Growth in Residential Connectivity Revenue and Business Services Connectivity Revenue and Lower Operating Expenses. Excluding the Impact of Foreign Currency, Connectivity & Platforms Adjusted EBITDA Increased 3.9% and Adjusted EBITDA Margin Increased 160 Basis Points to 40.2%
  • Domestic Broadband Average Rate Per Customer Increased 4.5% and Drove Domestic Broadband Revenue Growth of 4.8% to $6.3 Billion
  • Peacock Paid Subscribers in the U.S. Increased More Than 60% Compared to the Prior Year Period to 22 Million. Peacock Revenue Increased 45% to $685 Million
  • Theme Parks Adjusted EBITDA Increased 46% to $658 Million. Opened Super Nintendo World at Universal Studios Hollywood in February, in Advance of the Record-Breaking Theatrical Performance of The Super Mario Bros. Movie in April

Consolidated Financial Results

Revenue decreased 4.3%, reflecting an unfavorable comparison to the prior year period, which included our broadcasts of the Beijing Olympics and the NFL's Super Bowl. Net Income Attributable to Comcast increased 8.0%. Adjusted Net Income was consistent with the prior year period. Adjusted EBITDA increased 2.9%.

Earnings per Share (EPS) increased 16.7% to $0.91. Adjusted EPS increased 7.0% to $0.92.

Capital Expenditures increased 43.5% to $2.7 billion. Connectivity & Platforms’ capital expenditures increased 29.7% to $2.0 billion, primarily reflecting higher investment in scalable infrastructure and line extensions. Content & Experiences' capital expenditures increased $343 million to $651 million, reflecting increased investment in constructing the Epic Universe theme park in Orlando, which is scheduled to open in 2025.

Net Cash Provided by Operating Activities was $7.2 billion. Free Cash Flow was $3.8 billion.

Dividends and Share Repurchases. Comcast paid dividends totaling $1.2 billion and repurchased 52.5 million of its common shares for $2.0 billion, resulting in a total return of capital to shareholders of $3.2 billion.

Connectivity & Platforms

 

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

Constant
Currency
Change7

 

 

 

1st Quarter

 

 

 

2023

 

20228

 

Change

 

 

 

 

 

 

 

 

 

Connectivity & Platforms Revenue

 

 

 

 

 

 

Residential Connectivity & Platforms

$17,869

 

$18,340

 

(2.6

%)

(0.7

%)

 

 

Business Services Connectivity

2,283

 

2,172

 

5.1

%

5.2

%

 

 

Total Connectivity & Platforms Revenue

$20,153

 

$20,512

 

(1.8

%)

(0.1

%)

 

 

 

 

 

 

 

 

 

Connectivity & Platforms Adjusted EBITDA

 

 

 

 

 

 

Residential Connectivity & Platforms

$6,762

 

$6,611

 

2.3

%

3.2

%

 

 

Business Services Connectivity

1,332

 

1,233

 

8.0

%

7.9

%

 

 

Total Connectivity & Platforms Adjusted EBITDA

$8,093

 

$7,844

 

3.2

%

3.9

%

 

 

 

 

 

 

 

 

 

Connectivity & Platforms Adjusted EBITDA Margin

 

 

 

 

 

 

Residential Connectivity & Platforms

37.8

%

36.0

%

180 bps

140 bps

 

 

Business Services Connectivity

58.3

%

56.8

%

150 bps

150 bps

 

 

Total Connectivity & Platforms Adjusted EBITDA Margin

40.2

%

38.2

%

200 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 Connectivity & Platforms decreased compared to the prior year period. Excluding the impact of foreign currency, revenue 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 40.2%.

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

Net Additions /
(Losses)

 

 

 

 

 

 

 

 

 

 

 

1st Quarter

 

 

 

1Q23

1Q229

 

2023

 

20229

 

 

 

Customer Relationships

 

 

 

 

 

 

 

Domestic Residential Connectivity & Platforms Customer Relationships

31,826

31,993

 

(34

)

184

 

 

 

International Residential Connectivity & Platforms Customer Relationships

18,051

17,908

 

111

 

(122

)

 

 

Business Services Connectivity Customer Relationships

2,630

2,592

 

5

 

19

 

 

 

Total Connectivity & Platforms Customer Relationships

52,507

52,494

 

82

 

81

 

 

 

 

 

 

 

 

 

 

 

Domestic Broadband

 

 

 

 

 

 

 

Residential Customers

29,815

29,836

 

3

 

253

 

 

 

Business Customers

2,508

2,485

 

2

 

12

 

 

 

Total Domestic Broadband Customers

32,324

32,320

 

5

 

264

 

 

 

 

 

 

 

 

 

 

 

Total Domestic Wireless Lines

5,668

4,298

 

355

 

318

 

 

 

 

 

 

 

 

 

 

 

Total Domestic Video Customers

15,528

17,664

 

(614

)

(512

)

 

 

 

 

 

 

 

 

 

Total Customer Relationships for Connectivity & Platforms increased by 82,000 to 52.5 million. Increases in international residential connectivity & platforms customer relationships and business services connectivity customer relationships were partially offset by a decrease in domestic residential connectivity & platforms customer relationships. Total domestic broadband customer net additions were 5,000, total domestic wireless line net additions were 355,000 and total domestic video customer net losses were 614,000.

Residential Connectivity & Platforms

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

Constant
Currency
Change7

 

 

 

1st Quarter

 

 

 

2023

 

20228

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

Domestic Broadband

$6,343

 

$6,050

 

4.8

%

4.8

%

 

 

Domestic Wireless

858

 

677

 

26.7

%

26.7

%

 

 

International Connectivity

897

 

840

 

6.8

%

17.8

%

 

 

Total Residential Connectivity

8,099

 

7,568

 

7.0

%

8.1

%

 

 

Video

7,382

 

8,002

 

(7.7

%)

(5.5

%)

 

 

Advertising

907

 

1,073

 

(15.5

%)

(12.7

%)

 

 

Other

1,482

 

1,698

 

(12.7

%)

(10.5

%)

 

 

Total Revenue

$17,869

 

$18,340

 

(2.6

%)

(0.7

%)

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

Programming

$4,600

 

$4,884

 

(5.8

%)

(3.8

%)

 

 

Non-Programming

6,508

 

6,846

 

(4.9

%)

(2.3

%)

 

 

Total Operating Expenses

$11,108

 

$11,729

 

(5.3

%)

(2.9

%)

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$6,762

 

$6,611

 

2.3

%

3.2

%

 

 

Adjusted EBITDA Margin

37.8

%

36.0

%

180 bps

140 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 decreased in the first quarter, but was consistent with the prior year period when excluding the impact of foreign currency. Residential connectivity revenue increased, driven by growth in domestic broadband revenue, domestic wireless revenue and international connectivity revenue. Domestic broadband revenue increased primarily due to an increase in average rates. Domestic wireless revenue increased due to an increase in the number of customer lines and device sales. International connectivity revenue increased due to an increase in wireless revenue, reflecting higher sales of devices and wireless services, and an increase in broadband revenue, partially offset by the negative impact of foreign currency. The growth in residential connectivity was offset by a decrease in video revenue, other revenue and advertising revenue. Video revenue decreased due to a decline in the number of video customers and the negative impact of foreign currency, partially offset by an increase in average rates. Other revenue decreased primarily due to lower voice revenue, driven by a decline in the number of residential wireline voice customers and the negative impact of foreign currency. Advertising revenue decreased primarily due to overall market weakness, the negative impact of foreign currency and a decline in domestic political advertising.

Adjusted EBITDA for Residential Connectivity & Platforms increased due to lower operating expenses. Programming expenses decreased primarily driven by a decline in the number of domestic video customers and the impact of foreign currency, partially offset by domestic contractual rate increases and an increase in programming expenses for international sports channels. Non-programming expenses decreased primarily due to the impact of foreign currency, lower spending on marketing and promotion, lower technical and support costs and lower fees paid to third-party channels relating to advertising sales. These decreases were partially offset by increased direct product costs associated with our wireless phone service, resulting from increases in device sales and the number of customers receiving the service. Adjusted EBITDA margin increased to 37.8%.

Business Services Connectivity

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

1st Quarter

 

 

 

2023

 

20228

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

$2,283

 

$2,172

 

5.1

%

 

 

Operating Expenses

952

 

938

 

1.4

%

 

 

Adjusted EBITDA

$1,332

 

$1,233

 

8.0

%

 

 

Adjusted EBITDA Margin

58.3

%

56.8

%

150 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 due to higher revenue, partially offset by higher operating expenses. The increase in operating expenses was primarily due to higher direct product costs. Adjusted EBITDA margin increased to 58.3%.

Content & Experiences

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

1st Quarter

 

 

 

2023

 

20228

 

Change

 

 

Content & Experiences Revenue

 

 

 

 

 

Media

$6,152

 

$7,758

 

(20.7

%)

 

 

Excluding Olympics and Super Bowl5

6,152

 

6,276

 

(2.0

%)

 

 

Studios

2,956

 

2,907

 

1.7

%

 

 

Theme Parks

1,949

 

1,560

 

24.9

%

 

 

Headquarters & Other

19

 

16

 

16.3

%

 

 

Eliminations

(817

)

(901

)

9.4

%

 

 

Total Content & Experiences Revenue

$10,259

 

$11,339

 

(9.5

%)

 

 

 

 

 

 

 

 

Content & Experiences Adjusted EBITDA

 

 

 

 

 

Media

$880

 

$1,181

 

(25.5

%)

 

 

Studios

277

 

245

 

13.3

%

 

 

Theme Parks

658

 

451

 

46.0

%

 

 

Headquarters & Other

(232

)

(191

)

(21.3

%)

 

 

Eliminations

24

 

(62

)

NM

 

 

 

Total Content & Experiences Adjusted EBITDA

$1,607

 

$1,623

 

(1.0

%)

 

 

NM=comparison not meaningful.

 

 

 

 

Revenue for Content & Experiences decreased due to an unfavorable comparison to the prior year period, which included $1.5 billion of incremental revenue from our broadcasts of the Beijing Olympics and the NFL's Super Bowl in the Media segment.

Adjusted EBITDA for Content & Experiences decreased due to lower revenue, which more than offset lower operating expenses. The decrease in operating expenses was primarily due to lower programming and production costs in Media, driven by lower costs associated with our broadcasts of the Beijing Olympics and the NFL's Super Bowl in the prior year period, partially offset by higher costs at Peacock as the service scales.

Media

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

1st Quarter

 

 

 

2023

20228

Change

 

 

Revenue

 

 

 

 

 

Domestic Advertising

$2,025

$3,310

(38.8

%)

 

 

Excluding Olympics and Super Bowl5

2,025

2,156

(6.1

%)

 

 

Domestic Distribution

2,709

2,938

(7.8

%)

 

 

Excluding Olympics5

2,709

2,611

3.8

%

 

 

International Networks

1,008

995

1.3

%

 

 

Other

410

515

(20.5

%)

 

 

Total Revenue

$6,152

$7,758

(20.7

%)

 

 

Excluding Olympics and Super Bowl5

6,152

6,276

(2.0

%)

 

 

Operating Expenses

5,272

6,577

(19.8

%)

 

 

Adjusted EBITDA

$880

$1,181

(25.5

%)

 

 

 

 

 

 

 

Revenue for Media decreased primarily due to lower domestic advertising revenue and domestic distribution revenue, reflecting the comparison to the Beijing Olympics and the NFL's Super Bowl in the prior year period. Excluding $1.5 billion of incremental revenue from these events, Media revenue decreased 2.0%. Domestic advertising revenue decreased primarily due to the Beijing Olympics and the NFL's Super Bowl in the prior year period. Excluding the incremental revenue from these events, domestic advertising revenue decreased 6.1%, primarily due to lower revenue at our networks, driven by audience ratings declines, partially offset by an increase in revenue at Peacock. Domestic distribution revenue decreased primarily due to the Beijing Olympics in the prior year period. Excluding the incremental revenue from this event, distribution revenue increased 3.8%, primarily due to higher revenue at Peacock, driven by an increase in paid subscribers. Other revenue decreased primarily due to lower content licensing. International networks revenue increased, reflecting an increase in revenue associated with the distribution of sports channels, partially offset by the negative impact of foreign currency.

Adjusted EBITDA for Media decreased due to lower revenue, which more than offset lower operating expenses. The decrease in operating expenses was primarily due to lower programming and production costs, reflecting lower costs associated with our broadcast of the Beijing Olympics and the NFL's Super Bowl in the prior year period, partially offset by higher programming costs at Peacock. Media results in the first quarter include $685 million of revenue and an Adjusted EBITDA6 loss of $704 million related to Peacock, compared to $472 million of revenue and an Adjusted EBITDA6 loss of $456 million in the prior year period.

Studios

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

1st Quarter

 

 

 

2023

20228

Change

 

 

Revenue

 

 

 

 

 

Content Licensing

$2,344

$2,429

(3.5%)

 

 

Theatrical

319

168

90.1%

 

 

Other

292

310

(5.6%)

 

 

Total Revenue

$2,956

$2,907

1.7%

 

 

Operating Expenses

2,678

2,662

0.6%

 

 

Adjusted EBITDA

$277

$245

13.3%

 

 

 

 

 

 

 

Revenue for Studios increased primarily due to higher theatrical revenue, which reflected the successful performance of recent releases, including Puss in Boots: The Last Wish and M3GAN, partially offset by lower content licensing revenue, driven by the timing of when content was made available by our film and television studios.

Adjusted EBITDA for Studios increased due to higher revenue and consistent operating expenses. The consistent operating expenses reflected an increase in marketing and promotion expenses due to higher spending on recent and upcoming theatrical film releases, offset by lower other expenses and lower programming and production expenses, which was primarily due to lower costs associated with content licensing sales.

Theme Parks

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

1st Quarter

 

 

 

2023

2022

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

$1,949

$1,560

24.9%

 

 

Operating Expenses

1,291

1,109

16.4%

 

 

Adjusted EBITDA

$658

$451

46.0%

 

 

 

 

 

 

 

Revenue for Theme Parks increased due to higher revenue at our international theme parks, which were negatively impacted by restrictions due to COVID-19 in the prior year period, and higher revenue at our domestic theme parks, including Universal Studios Hollywood which opened Super Nintendo World during the quarter.

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 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 first quarter was $232 million.

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 consistent with the prior year period and Adjusted EBITDA eliminations were a benefit of $24 million, compared to a loss of $62 million in the prior year period.

Corporate, Other and Eliminations

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

1st Quarter

 

 

 

2023

 

20228

 

Change

 

 

Corporate & Other

 

 

 

 

 

Revenue

$707

 

$713

 

(0.9

%)

 

 

Operating Expenses

995

 

948

 

5.0

%

 

 

Adjusted EBITDA

($288

)

($235

)

(22.9

%)

 

 

 

 

 

 

 

 

Eliminations

 

 

 

 

 

Revenue

($1,427

)

($1,554

)

(8.2

%)

 

 

Operating Expenses

(1,430

)

(1,472

)

(2.8

%)

 

 

Adjusted EBITDA

$3

 

($82

)

NM

 

 

 

NM=comparison not meaningful.

 

 

 

 

Corporate & Other
Corporate & Other primarily includes overhead and personnel costs; Sky operations outside of the Connectivity & Platforms markets; 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. Revenue for Corporate and Other was consistent with the prior year period.

Adjusted EBITDA loss for Corporate & Other increased, reflecting consistent revenue and higher operating expenses. Operating expenses increased primarily due to costs related to 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, compared to $1.6 billion in the prior year period, and Adjusted EBITDA eliminations were $3 million compared to a loss of $82 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

From time to time, we may present adjusted information (e.g., Adjusted Revenues) to exclude the impact of certain events, gains, losses or other charges affecting period-to-period comparability of our operating performance. See Table 7 for reconciliations of non-GAAP financial measures.

6

Adjusted EBITDA is the measure of profit or loss for our segments. From time to time, we may present Adjusted EBITDA for components of our reportable segments, such as Peacock. We believe these measures are useful to evaluate our financial results and provide a basis of comparison to others, although our definition of Adjusted EBITDA may not be directly comparable to similar measures used by other companies. Adjusted EBITDA for components are generally presented on a consistent basis with the respective segments and include direct revenue and operating costs and expenses attributed to the component operations.

7

Constant currency growth rates are calculated by comparing the results for each comparable prior year period adjusted to reflect the average exchange rates from each current period presented, rather than the actual exchange rates that were in effect during the respective periods. See Table 6 for reconciliations of non-GAAP financial measures.

8

Beginning in the first quarter of 2023, we changed our presentation of segment operating results around our two primary businesses, Connectivity & Platforms and Content & Experiences. We have updated certain historical information as a result of these changes, including: (1) presentation of Cable Communications results in the Residential Connectivity & Platforms and Business Services Connectivity segments and (2) presentation of Sky's results across the Connectivity & Platforms and Content & Entertainment segments, and Corporate & Other.

9

Customer metrics for 2022 have been updated to reflect the new segment presentation, and to align methodologies for counting business customer metrics to: (1) include locations receiving our services outside of our distribution system and (2) now count certain customers based on the number of locations receiving services, including arrangements whereby third parties provide connectivity services leveraging our distribution system. These changes in methodology were not material to any period presented. Previously reported total Sky customer relationships of approximately 23 million as of December 31, 2022 also included approximately 5 million customer relationships outside of the Connectivity & Platforms markets.

 
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 27, 2023 at 8:30 a.m. Eastern Time (ET). The conference call and related materials will be broadcast live and posted on our Investor Relations website at www.cmcsa.com. Those parties interested in participating via telephone should dial (646) 828-8195 with the passcode 398279. A replay of the call will be available starting at 11:30 a.m. ET on Thursday, April 27, 2023 on the Investor Relations website.

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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; programming costs; consumer acceptance of our content; key distribution and/or licensing agreements; use and protection of our intellectual property; our reliance on third-party hardware, software and operational support; keeping pace with technological developments; cyber attacks, security breaches or technology disruptions; weak economic conditions; acquisitions and strategic initiatives; operating businesses internationally; natural disasters, severe weather-related and other uncontrollable events; loss of key personnel; laws and regulations; adverse decisions in litigation or governmental investigations; labor disputes; and other risks described from time to time in reports and other documents we file with the SEC. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made, and involve risks and uncertainties that could cause actual events or our actual results to differ materially from those expressed in any such forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise. The amount and timing of any dividends and share repurchases are subject to business, economic and other relevant factors.

Non-GAAP Financial Measures
In this discussion, we sometimes refer to financial measures that are not presented according to generally accepted accounting principles in the U.S. (GAAP). Certain of these measures are considered “non-GAAP financial measures” under the SEC regulations; those rules require the supplemental explanations and reconciliations that are in Comcast’s Form 8-K (Quarterly Earnings Release) furnished to the SEC.

About Comcast Corporation
Comcast Corporation (Nasdaq: CMCSA) is a global media and technology company. From the connectivity and platforms we provide, to the content and experiences we create, our businesses reach hundreds of millions of customers, viewers, and guests worldwide. We deliver world-class broadband, wireless, and video through Xfinity, Comcast Business, and Sky; produce, distribute, and stream leading entertainment, sports, and news through brands including NBC, Telemundo, Universal, Peacock, and Sky; and bring incredible theme parks and attractions to life through Universal Destinations & Experiences. Visit www.comcastcorporation.com for more information.

TABLE 1
Condensed Consolidated Statement of Income (Unaudited)

 

 

 

 

 

Three Months Ended

(in millions, except per share data)

March 31,

 

2023

 

2022

Revenue

$29,691

 

$31,010

 

 

 

 

Costs and expenses

 

 

 

Programming and production

9,004

 

10,570

Marketing and promotion

1,963

 

2,062

Other operating and administrative

9,301

 

9,260

Depreciation

2,264

 

2,213

Amortization

1,513

 

1,335

 

24,045

 

25,440

 

 

 

 

Operating income

5,646

 

5,569

 

 

 

 

Interest expense

(1,010)

 

(993)

 

 

 

 

Investment and other income (loss), net

 

 

 

Equity in net income (losses) of investees, net

485

 

133

Realized and unrealized gains (losses) on equity securities, net

(6)

 

117

Other income (loss), net

128

 

(62)

 

607

 

188

 

 

 

 

Income before income taxes

5,243

 

4,764

 

 

 

 

Income tax expense

(1,476)

 

(1,288)

 

 

 

 

Net income

3,767

 

3,476

 

 

 

 

Less: Net income (loss) attributable to noncontrolling interests

(67)

 

(73)

 

 

 

 

Net income attributable to Comcast Corporation

$3,834

 

$3,549

 

 

 

 

 

 

 

 

Diluted earnings per common share attributable to Comcast Corporation shareholders

$0.91

 

$0.78

 

 

 

 

Diluted weighted-average number of common shares

4,227

 

4,558

 

 

 

 

TABLE 2

Consolidated Statement of Cash Flows (Unaudited)

 

 

 

 

 

Three Months Ended

(in millions)

March 31,

 

2023

 

2022

 

 

 

 

OPERATING ACTIVITIES

 

 

 

Net income

$3,767

 

$3,476

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

3,777

 

3,548

Share-based compensation

359

 

376

Noncash interest expense (income), net

78

 

93

Net (gain) loss on investment activity and other

(517)

 

(113)

Deferred income taxes

82

 

106

Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:

 

 

 

Current and noncurrent receivables, net

363

 

(527)

Film and television costs, net

13

 

363

Accounts payable and accrued expenses related to trade creditors

(651)

 

314

Other operating assets and liabilities

(43)

 

(379)

 

 

 

 

Net cash provided by operating activities

7,228

 

7,257

 

 

 

 

INVESTING ACTIVITIES

 

 

 

Capital expenditures

(2,664)

 

(1,856)

Cash paid for intangible assets

(765)

 

(641)

Construction of Universal Beijing Resort

(87)

 

(147)

Proceeds from sales of businesses and investments

343

 

69

Purchases of investments

(149)

 

(66)

Other

(48)

 

44

 

 

 

 

Net cash provided by (used in) investing activities

(3,370)

 

(2,597)

 

 

 

 

FINANCING ACTIVITIES

 

 

 

Proceeds from (repayments of) short-term borrowings, net

(660)

 

Proceeds from borrowings

1,059

 

117

Repurchases and repayments of debt

(49)

 

(104)

Repurchases of common stock under repurchase program and employee plans

(2,176)

 

(3,223)

Dividends paid

(1,174)

 

(1,166)

Other

(82)

 

(114)

 

 

 

 

Net cash provided by (used in) financing activities

(3,082)

 

(4,490)

 

 

 

 

Impact of foreign currency on cash, cash equivalents and restricted cash

20

 

(35)

 

 

 

 

Increase (decrease) in cash, cash equivalents and restricted cash

796

 

135

 

 

 

 

Cash, cash equivalents and restricted cash, beginning of period

4,782

 

8,778

 

 

 

 

Cash, cash equivalents and restricted cash, end of period

$5,577

 

$8,914

 

 

 

 

TABLE 3
Condensed Consolidated Balance Sheet (Unaudited)

 

 

 

 

(in millions)

March 31,

 

December 31,

 

2023

 

2022

ASSETS

 

 

 

 

 

 

 

Current Assets

 

 

 

Cash and cash equivalents

$5,535

 

$4,749

Receivables, net

12,287

 

12,672

Other current assets

4,555

 

4,406

Total current assets

22,377

 

21,826

 

 

 

 

Film and television costs

12,612

 

12,560

 

 

 

 

Investments

7,834

 

7,250

 

 

 

 

Investment securing collateralized obligation

464

 

490

 

 

 

 

Property and equipment, net

56,279

 

55,485

 

 

 

 

Goodwill

58,960

 

58,494

 

 

 

 

Franchise rights

59,365

 

59,365

 

 

 

 

Other intangible assets, net

29,004

 

29,308

 

 

 

 

Other noncurrent assets, net

12,535

 

12,497

 

 

 

 

 

$259,429

 

$257,275

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

Current Liabilities

 

 

 

Accounts payable and accrued expenses related to trade creditors

$12,159

 

$12,544

Accrued participations and residuals

1,641

 

1,770

Deferred revenue

2,663

 

2,380

Accrued expenses and other current liabilities

9,648

 

9,450

Current portion of long-term debt

1,130

 

1,743

Collateralized obligation

5,173

 

Total current liabilities

32,415

 

27,887

 

 

 

 

Long-term debt, less current portion

94,403

 

93,068

 

 

 

 

Collateralized obligation

 

5,172

 

 

 

 

Deferred income taxes

28,804

 

28,714

 

 

 

 

Other noncurrent liabilities

20,353

 

20,395

 

 

 

 

Redeemable noncontrolling interests

422

 

411

 

 

 

 

Equity

 

 

 

Comcast Corporation shareholders' equity

82,421

 

80,943

Noncontrolling interests

612

 

684

Total equity

83,033

 

81,627

 

 

 

 

 

$259,429

 

$257,275

TABLE 4

 

 

Reconciliation from Net Income Attributable to Comcast Corporation to Adjusted EBITDA (Unaudited)

 

 

 

 

 

Three Months Ended
March 31,

 

(in millions)

2023

 

2022

Net income attributable to Comcast Corporation

$3,834

 

$3,549

Net income (loss) attributable to noncontrolling interests

(67)

 

(73)

Income tax expense

1,476

 

1,288

Interest expense

1,010

 

993

Investment and other (income) loss, net

(607)

 

(188)

Depreciation

2,264

 

2,213

Amortization

1,513

 

1,335

Adjustments (1)

(8)

 

33

Adjusted EBITDA

$9,415

 

$9,150

 

 

 

 

Reconciliation from Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited)

 

 

 

 

 

Three Months Ended

 

 

March 31,

(in millions)

 

2023

 

2022

Net cash provided by operating activities

 

$7,228

 

$7,257

Capital expenditures

 

(2,664)

 

(1,856)

Cash paid for capitalized software and other intangible assets

 

(765)

 

(641)

Free Cash Flow

 

$3,800

 

$4,760

 

 

 

 

 

Alternate Presentation of Free Cash Flow (Unaudited)

 

 

 

 

 

Three Months Ended

 

 

March 31,

(in millions)

 

2023

 

2022

Adjusted EBITDA

 

$9,415

 

$9,150

Capital expenditures

 

(2,664)

 

(1,856)

Cash paid for capitalized software and other intangible assets

 

(765)

 

(641)

Cash interest expense

 

(766)

 

(747)

Cash taxes

 

(148)

 

(90)

Changes in operating assets and liabilities

 

(1,731)

 

(1,475)

Noncash share-based compensation

 

359

 

376

Other (2)

 

99

 

42

Free Cash Flow

 

$3,800

 

$4,760

(1)

1st quarter 2023 and 2022 Adjusted EBITDA excludes $(8) million and $33 million of other operating and administrative expenses, respectively, related to our investment portfolio.

 

(2)

1st quarter 2023 and 2022 include decreases of $(8) million and $33 million, respectively, of costs 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

 

March 31,

 

2023

 

2022

(in millions, except per share data)

 

 

 

 

 

 

 

 

$

 

EPS

 

$

 

EPS

 

 

 

 

 

 

 

 

Net income attributable to Comcast Corporation and diluted earnings per share attributable to
Comcast Corporation shareholders

$3,834

 

$0.91

 

$3,549

 

$0.78

Change

8.0%

 

16.7%

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of acquisition-related intangible assets (1)

431

 

0.10

 

481

 

0.11

Investments (2)

(389)

 

(0.09)

 

(130)

 

(0.03)

 

 

 

 

 

 

 

 

Adjusted Net income and Adjusted EPS

$3,877

 

$0.92

 

$3,900

 

$0.86

Change

(0.6%)

 

7.0%

 

 

 

 

(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
March 31,

   

 

2023

 

2022

   

Amortization of acquisition-related intangible assets before income taxes

$556

 

$592

   

Amortization of acquisition-related intangible assets, net of tax

$431

 

$481

(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
March 31,

   

 

2023

 

2022

   

Realized and unrealized (gains) losses on equity securities, net

$6

 

($117)

   

Equity in net (income) losses of investees, net and other

(521)

 

(55)

   

Investments before income taxes

(515)

 

(172)

   

Investments, net of tax

($389)

 

($130)

     
TABLE 6
Reconciliation of Constant Currency (Unaudited)

 

 

 

 

 

 

 

Three Months Ended
March 31, 2022

 

(in millions, except per customer data)

As
Reported

 

Effects of
Foreign
Currency

 

Constant
Currency
Amounts

Reconciliation of Connectivity & Platforms Constant Currency

 

 

 

 

 

 

 

 

 

 

 

Connectivity & Platforms Revenue

 

 

 

 

 

Residential Connectivity & Platforms

$18,340

 

($347)

 

$17,993

Business Services Connectivity

2,172

 

(1)

 

2,171

Total Connectivity & Platforms Revenue

$20,512

 

($349)

 

$20,163

 

 

 

 

 

 

Connectivity and Platforms Adjusted EBITDA

 

 

 

 

 

Residential Connectivity & Platforms

$6,611

 

($58)

 

$6,553

Business Services Connectivity

1,233

 

1

 

1,234

Total Connectivity & Platforms Adjusted EBITDA

$7,844

 

($57)

 

$7,787

 

 

 

 

 

 

Connectivity & Platforms Adjusted EBITDA Margin

 

 

 

 

 

Residential Connectivity & Platforms

36.0%

 

40 bps

 

36.4%

Business Services Connectivity

56.8%

 

 

56.8%

Total Connectivity & Platforms Adjusted EBITDA Margin

38.2%

 

40 bps

 

38.6%

 

 

 

 

 

 

 

Three Months Ended
March 31, 2022

 

(in millions, except per customer data)

As
Reported

 

Effects of
Foreign
Currency

 

Constant
Currency
Amounts

Reconciliation of Residential Connectivity & Platforms Constant Currency

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

Domestic broadband

$6,050

 

$—

 

$6,050

Domestic wireless

677

 

 

677

International connectivity

840

 

(78)

 

762

Total residential connectivity

$7,568

 

($78)

 

$7,489

Video

8,002

 

(191)

 

7,811

Advertising

1,073

 

(35)

 

1,038

Other

1,698

 

(43)

 

1,655

Total Revenue

$18,340

 

($347)

 

$17,993

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

Programming

$4,884

 

($103)

 

$4,781

Non-Programming

6,846

 

(187)

 

6,659

Total Operating Expenses

$11,729

 

($289)

 

$11,440

 

 

 

 

 

 

Adjusted EBITDA

$6,611

 

($58)

 

$6,553

Adjusted EBITDA Margin

36.0%

 

40 bps

 

36.4%

 
TABLE 7
Reconciliation of Media Revenue Excluding Olympics and 2022 Super Bowl (Unaudited)

 

 

 

 

 

 

 

Three Months Ended
March 31,

 

(in millions)

2023

 

2022

 

Growth %

 

 

 

 

 

 

Revenue

$6,152

 

$7,758

 

(20.7%)

 

 

 

 

 

 

Beijing Olympics

 

963

 

 

2022 Super Bowl

 

519

 

 

 

 

 

 

 

 

Revenue excluding Olympics and 2022 Super Bowl

$6,152

 

$6,276

 

(2.0%)

 

 

 

 

 

 

 

Contacts

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

Contacts

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