Comcast Corporation (NASDAQ: CMCSA) today reported results for
the quarter ended September 30, 2022.
“I’m proud of the company and our strong financial results this
quarter. We delivered solid growth in adjusted EBITDA and adjusted
EPS, generated significant free cash flow, invested in our
businesses’ future and returned a record amount of capital to our
shareholders. This performance is a testament to our consistent
strategic focus on innovation and our team’s ability to execute at
the highest level in any environment. In Cable, we grew adjusted
EBITDA by more than 5% and achieved our highest adjusted EBITDA
margin on record despite a challenging competitive environment. At
NBCUniversal, robust demand from guests at our Theme Parks and from
viewers of our iconic content fueled nearly 25% growth in adjusted
EBITDA. And, at Sky, our team continues to prudently manage through
a difficult and rapidly changing macroeconomic and geopolitical
period in the U.K. and Europe. Together, our company is a leader in
very large and profitable markets. Despite the challenges that may
lie ahead, we are in an enviable strategic and financial position,
and our future remains bright," commented Brian L. Roberts,
Chairman and Chief Executive Officer of Comcast Corporation.
($ in millions, except per share data)
3rd
Quarter
Year to
Date
Consolidated Results
2022
2021
Change
2022
2021
Change
Revenue
$29,849
$30,298
(1.5
%)
$90,874
$86,049
5.6
%
Net Income (loss) Attributable to
Comcast
($4,598
)
$4,035
NM
$2,347
$11,102
(78.9
%)
Adjusted Net Income1
$4,220
$4,038
4.5
%
$12,626
$11,511
9.7
%
Adjusted EBITDA2
$9,482
$8,957
5.9
%
$28,459
$26,297
8.2
%
Earnings (loss) per Share3
($1.05
)
$0.86
NM
$0.52
$2.38
(78.2
%)
Adjusted Earnings per Share1
$0.96
$0.87
10.3
%
$2.82
$2.47
14.2
%
Net Cash Provided by Operating
Activities
$6,947
$6,100
13.9
%
$20,530
$21,457
(4.3
%)
Free Cash Flow4
$3,387
$3,234
4.7
%
$11,316
$13,305
(14.9
%)
NM=comparison not meaningful.
For additional detail on segment revenue and expenses, customer
metrics, capital expenditures, and free cash flow, please refer to
the trending schedule on Comcast’s Investor Relations website at
www.cmcsa.com.
3rd Quarter 2022 Highlights:
- Consolidated Adjusted EBITDA Increased 5.9% to $9.5 Billion;
Generated Free Cash Flow of $3.4 Billion
- Returned $4.7 Billion to Shareholders Through a Combination of
$1.2 Billion in Dividend Payments and $3.5 Billion in Share
Repurchases
- Cable Communications Adjusted EBITDA Increased 5.4% and
Adjusted EBITDA per Customer Relationship Increased 4.0%; Adjusted
EBITDA Margin Increased 120 Basis Points to 45.1%, Its Highest on
Record
- Cable Communications Total Customer Relationships of 34.4
Million and Total Broadband Customers of 32.2 Million Were
Consistent with the Prior Quarter and Increased 0.9% and 1.5%,
Respectively, Compared to the Prior Year Period
- Cable Communications Wireless Customer Line Net Additions Were
333,000, the Best Quarterly Result on Record
- Cable Communications Started Rolling Out Multi-Gig Broadband
Speeds in Markets Across the U.S. and Announced the Launch of Even
Faster, Multi-Gig Symmetrical Speeds Beginning in 2023
- NBCUniversal Adjusted EBITDA Increased 24.6% to $1.7 Billion,
Including Peacock Losses
- Peacock Paid Subscribers in the U.S. Surpassed 15 Million;
Increased Nearly 70% Year to Date
- Studios Adjusted EBITDA Increased $358 Million to $537 Million,
Driven by the Successful Theatrical Performance of Jurassic World:
Dominion and Minions: The Rise of Gru
- Theme Parks Adjusted EBITDA Increased 88.6% to $819 Million,
Its Highest Adjusted EBITDA on Record, Reflecting Growth at Each
Park Compared to the Prior Year Period
- Sky Revenue Decreased 14.7% to $4.3 Billion; On a Constant
Currency Basis, Revenue Was Consistent with the Prior Year Period.
Adjusted EBITDA in the Third Quarter Reflected the Timing of
Sporting Events and the Corresponding Programming Amortization
- SkyShowtime, the Previously Announced Joint Venture with
Paramount Global, Launched in September, Bringing its Premium
Offering of Exclusive and Iconic Entertainment to Millions of Homes
in Europe Outside of Sky's Territories
Consolidated Financial Results
Revenue for the third quarter of 2022 decreased 1.5% to
$29.8 billion. Net Income (loss) Attributable to Comcast was
$(4.6) billion, compared to $4.0 billion in the prior year period.
Adjusted Net Income increased 4.5% to $4.2 billion.
Adjusted EBITDA increased 5.9% to $9.5 billion.
In the third quarter of 2022 we recorded noncash impairment
charges related to goodwill and intangible assets in our Sky
segment totaling $8.6 billion. The impairments primarily reflected
an increased discount rate and reduced estimated future cash flows
as a result of macroeconomic conditions in Sky's territories, are
recorded in "Goodwill and long-lived asset impairments" in the
Condensed Consolidated Statement of Income and are excluded from
Adjusted Net Income and Adjusted Earnings per Share.
For the nine months ended September 30, 2022, revenue increased
5.6% to $90.9 billion. Net income attributable to Comcast decreased
78.9% to $2.3 billion. Adjusted Net Income increased 9.7% to $12.6
billion. Adjusted EBITDA increased 8.2% to $28.5 billion.
Earnings (loss) per Share (EPS) for the third quarter of
2022 was ($1.05), compared to $0.86 in the prior year period.
Adjusted EPS increased 10.3% to $0.96.
For the nine months ended September 30, 2022, EPS decreased
78.2% to $0.52. Adjusted EPS increased 14.2% to $2.82.
Capital Expenditures increased 30.3% to $2.8 billion in
the third quarter of 2022. Cable Communications’ capital
expenditures increased 20.8% to $2.0 billion. NBCUniversal’s
capital expenditures increased $385 million to $614 million. Sky's
capital expenditures decreased 39.8% to $96 million.
For the nine months ended September 30, 2022, capital
expenditures increased 14.9% to $7.1 billion. Cable Communications'
capital expenditures increased 9.0% to $5.2 billion. NBCUniversal's
capital expenditures increased $799 million to $1.4 billion. Sky's
capital expenditures decreased 39.3% to $373 million.
Net Cash Provided by Operating Activities was $6.9
billion in the third quarter of 2022. Free Cash Flow was
$3.4 billion.
For the nine months ended September 30, 2022, net cash provided
by operating activities was $20.5 billion. Free cash flow was $11.3
billion.
Dividends and Share Repurchases. In September 2022,
Comcast announced that its Board of Directors increased its share
repurchase program authorization to a total of $20.0 billion,
effective as of September 13, 2022, and that the authorization does
not have an expiration date. As of September 30, 2022, Comcast had
$19.5 billion available under its share repurchase
authorization.
During the third quarter of 2022, Comcast paid dividends
totaling $1.2 billion and repurchased 92.3 million of its common
shares for $3.5 billion, resulting in a total return of capital to
shareholders of $4.7 billion, compared to $2.7 billion in the prior
year period.
For the nine months ended September 30, 2022, Comcast paid
dividends totaling $3.6 billion and repurchased 225.7 million of
its common shares for $9.5 billion, resulting in a total return of
capital to shareholders of $13.1 billion, compared to $5.4 billion
in 2021.
Cable Communications
($ in millions)
3rd
Quarter
Year to
Date
2022
2021
Change
2022
2021
Change
Cable Communications Revenue
Broadband
$6,135
$5,801
5.7
%
$18,292
$17,118
6.9
%
Video
5,255
5,499
(4.4
%)
16,214
16,676
(2.8
%)
Voice
745
851
(12.5
%)
2,293
2,592
(11.5
%)
Wireless
789
603
30.8
%
2,188
1,672
30.9
%
Business Services
2,436
2,227
9.4
%
7,256
6,597
10.0
%
Advertising
756
705
7.2
%
2,174
2,002
8.6
%
Other
423
427
(0.9
%)
1,263
1,265
(0.2
%)
Cable Communications Revenue
$16,539
$16,115
2.6
%
$49,680
$47,922
3.7
%
Cable Communications Adjusted
EBITDA
$7,452
$7,069
5.4
%
$22,172
$20,972
5.7
%
Adjusted EBITDA Margin
45.1%
43.9%
44.6%
43.8%
Cable Communications Capital
Expenditures
$2,021
$1,673
20.8
%
$5,164
$4,739
9.0
%
Percent of Cable Communications
Revenue
12.2%
10.4%
10.4%
9.9%
Revenue for Cable Communications increased 2.6% to $16.5
billion in the third quarter of 2022, driven by increases in
broadband, business services, wireless and advertising revenue,
partially offset by decreases in video and voice revenue. Broadband
revenue increased 5.7% due to an increase in average rates and an
increase in the number of residential broadband customers compared
to the prior year period. Business services revenue increased 9.4%
due to an increase in average rates, an increase in the number of
customers receiving our services and from a recent acquisition.
Wireless revenue increased 30.8% due to an increase in the number
of customer lines and an increase in device sales. Advertising
revenue increased 7.2%, primarily driven by an increase in
political advertising. Excluding political revenue, advertising
revenue decreased by 5.8%, reflecting the previously announced
transition of our Xumo streaming service from Cable Communications
to a joint venture reported in Corporate and Other and lower local
and national advertising revenue, partially offset by higher
revenue from our advanced advertising businesses. Video revenue
decreased 4.4%, reflecting a decrease in the number of residential
video customers, partially offset by an increase in average rates.
Voice revenue decreased 12.5%, primarily reflecting a decrease in
the number of residential voice customers. Other revenue was
consistent with the prior year period.
For the nine months ended September 30, 2022, Cable revenue
increased 3.7% to $49.7 billion, driven by growth in broadband,
business services, wireless and advertising revenue, partially
offset by a decrease in video and voice revenue. Other revenue was
consistent with 2021.
Total Customer Relationships decreased by 21,000 to 34.4
million in the third quarter of 2022. Residential customer
relationships decreased by 26,000 and business customer
relationships increased by 5,000. Total broadband customer net
additions were 14,000, total video customer net losses were 561,000
and total voice customer net losses were 316,000. In addition,
Cable Communications added 333,000 wireless lines in the
quarter.
For the nine months ended September 30, 2022, total customer
relationships increased by 145,000. Residential customer
relationships increased by 121,000 and business customer
relationships increased by 25,000. Total broadband customer net
additions were 277,000, total video customer net losses were 1.6
million and total voice customer net losses were 884,000. In
addition, Cable Communications added 968,000 wireless lines in the
current period.
(in thousands)
Net
Additions / (Losses)
3rd
Quarter
Year to
Date
3Q22
3Q21
2022
2021
2022
2021
Customer Relationships
Residential Customer Relationships
31,849
31,576
(26
)
237
121
884
Business Services Customer
Relationships
2,514
2,473
5
18
25
46
Total Customer Relationships
34,363
34,048
(21
)
255
145
930
Residential Customer Relationships
Mix
One Product Residential Customers
15,463
13,959
340
481
1,133
1,551
Two Product Residential Customers
8,204
8,473
(77
)
(89
)
(202
)
(261
)
Three or More Product Residential
Customers
8,182
9,144
(289
)
(156
)
(810
)
(406
)
Residential Broadband Customers
29,835
29,389
10
281
253
1,063
Business Services Broadband Customers
2,342
2,300
5
19
24
52
Total Broadband Customers
32,177
31,688
14
300
277
1,115
Residential Video Customers
15,973
17,844
(540
)
(382
)
(1,522
)
(1,149
)
Business Services Video Customers
609
705
(21
)
(26
)
(72
)
(147
)
Total Video Customers
16,582
18,549
(561
)
(408
)
(1,594
)
(1,297
)
Residential Voice Customers
8,190
9,245
(307
)
(167
)
(872
)
(400
)
Business Services Voice Customers
1,380
1,384
(9
)
9
(11
)
28
Total Voice Customers
9,570
10,630
(316
)
(158
)
(884
)
(372
)
Total Wireless Lines
4,948
3,668
333
285
968
842
Adjusted EBITDA for Cable Communications increased 5.4%
to $7.5 billion in the third quarter of 2022, primarily reflecting
higher revenue. Operating expenses were consistent with the prior
year period. Programming expenses decreased 2.8%, primarily
reflecting a decline in the number of video subscribers, partially
offset by contractual rate increases. Non-programming expenses
increased 2.5%, primarily reflecting higher other expenses and
technical and product support expenses, partially offset by lower
advertising, marketing and promotion expenses and franchise and
regulatory fees. Adjusted EBITDA per customer relationship
increased 4.0%, and Adjusted EBITDA margin was 45.1% compared to
43.9% in the prior year period.
For the nine months ended September 30, 2022, Adjusted EBITDA
for Cable Communications increased 5.7% to $22.2 billion,
reflecting higher revenue, partially offset by a 2.1% increase in
operating expenses. Programming expenses decreased 1.8%, primarily
reflecting a decline in the number of video subscribers, partially
offset by contractual rate increases. Non-programming expenses
increased 4.7%. For the nine months ended September 30, 2022,
Adjusted EBITDA per customer relationship increased 3.5%, and
Adjusted EBITDA margin was 44.6% compared to 43.8% in 2021.
Capital Expenditures for Cable Communications increased
20.8% to $2.0 billion in the third quarter of 2022, reflecting
increased investment in line extensions, customer premise
equipment, scalable infrastructure and support capital. Cable
capital expenditures represented 12.2% of Cable revenue in the
third quarter of 2022 compared to 10.4% in the prior year
period.
For the nine months ended September 30, 2022, Cable capital
expenditures increased 9.0% to $5.2 billion, reflecting increased
investment in line extensions, scalable infrastructure, support
capital and customer premise equipment. Cable capital expenditures
represented 10.4% of Cable revenue compared to 9.9% in 2021.
NBCUniversal
($ in millions)
3rd
Quarter
Year to
Date
2022
2021
Change
2022
2021
Change
NBCUniversal Revenue
Media
$5,230
$6,770
(22.7
%)
$17,427
$16,955
2.8
%
Excluding Olympics and Super Bowl5
$5,230
$5,011
4.4
%
$15,945
$15,195
4.9
%
Studios
3,163
2,407
31.4
%
8,885
7,027
26.4
%
Theme Parks
2,064
1,449
42.4
%
5,428
3,163
71.6
%
Headquarters and other
22
28
(22.1
%)
46
65
(30.1
%)
Eliminations
(909
)
(654
)
(38.9
%)
(2,474
)
(2,230
)
(10.9
%)
NBCUniversal Revenue
$9,570
$10,001
(4.3
%)
$29,311
$24,981
17.3
%
NBCUniversal Adjusted EBITDA
Media
$583
$997
(41.5
%)
$3,080
$3,847
(20.0
%)
Studios
537
179
199.6
%
783
833
(6.0
%)
Theme Parks
819
434
88.6
%
1,902
593
NM
Headquarters and other
(199
)
(248
)
19.8
%
(528
)
(643
)
18.0
%
Eliminations
(59
)
(12
)
NM
(98
)
(238
)
58.6
%
NBCUniversal Adjusted EBITDA
$1,681
$1,349
24.6
%
$5,138
$4,392
17.0
%
NM=comparison not meaningful.
Revenue for NBCUniversal decreased 4.3% to $9.6 billion
in the third quarter of 2022. The prior year period included an
incremental $1.8 billion from the Tokyo Olympics included in the
Media segment. Adjusted EBITDA increased 24.6% to $1.7
billion.
For the nine months ended September 30, 2022, NBCUniversal
revenue increased 17.3% to $29.3 billion. The current year period
included $1.5 billion of incremental revenue from the Beijing
Olympics and the NFL's Super Bowl in the Media segment, while 2021
included $1.8 billion of incremental revenue from the Tokyo
Olympics in the Media segment. Adjusted EBITDA increased 17.0% to
$5.1 billion.
Media
Media revenue decreased 22.7% to $5.2 billion in the third
quarter of 2022, due to lower advertising revenue and distribution
revenue, reflecting the comparison to the Tokyo Olympics in the
prior year period. Excluding $1.8 billion of incremental revenue
from the Tokyo Olympics in the prior year period, Media revenue
increased 4.4%. Advertising revenue decreased 35.1%, primarily due
to the Tokyo Olympics in the prior year period, partially offset by
an increase in Peacock advertising revenue. Distribution revenue
decreased 13.7%, reflecting the Tokyo Olympics in the prior year
period and a decline in subscribers at our networks, partially
offset by an increase in subscribers at Peacock and contractual
rate increases. Adjusted EBITDA decreased 41.5% to $583 million in
the third quarter of 2022, reflecting 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 sports programming costs associated with
the Tokyo Olympics in the prior year period, partially offset by
higher costs at Peacock. Media results include $506 million of
revenue and an Adjusted EBITDA6 loss of $614 million related to
Peacock, compared to $230 million of revenue and an Adjusted
EBITDA6 loss of $520 million in the prior year period.
For the nine months ended September 30, 2022, revenue from the
Media segment increased 2.8% to $17.4 billion, primarily due to
higher distribution revenue. Excluding $1.5 billion of incremental
revenue from the Beijing Olympics and the NFL's Super Bowl in the
current year period and $1.8 billion of incremental revenue from
the Tokyo Olympics in 2021, Media revenue increased 4.9%. Adjusted
EBITDA decreased 20.0% to $3.1 billion, reflecting higher operating
expenses, which more than offset higher revenue. The increase in
operating expenses was due to higher programming and production
expenses, other operating and administrative expenses and
advertising, marketing and promotion expenses. Media results
include $1.4 billion of revenue and an Adjusted EBITDA6 loss of
$1.5 billion related to Peacock, compared to $443 million of
revenue and an Adjusted EBITDA6 loss of $1.2 billion in 2021.
Studios
Studios revenue increased 31.4% to $3.2 billion in the third
quarter of 2022, primarily reflecting higher theatrical and content
licensing revenue. Theatrical revenue increased $366 million to
$673 million, primarily due to the successful performance of recent
releases, Jurassic World: Dominion and Minions: The Rise of Gru.
Content licensing revenue increased 16.8%, primarily due to the
timing of when content was made available by our television and
film studios under licensing agreements, including additional sales
of content as production levels returned to normal. Adjusted EBITDA
increased $358 million to $537 million in the third quarter of
2022, reflecting higher revenue, which more than offset higher
operating expenses. The increase in operating expenses was driven
by higher programming and production expenses, reflecting higher
amortization of film and television production costs in the current
year period.
For the nine months ended September 30, 2022, revenue from the
Studios segment increased 26.4% to $8.9 billion, primarily
reflecting higher content licensing revenue and theatrical revenue.
Adjusted EBITDA decreased 6.0% to $783 million, reflecting higher
operating expenses, which more than offset higher revenue. The
increase in operating expenses was primarily driven by higher
programming and production expenses.
Theme Parks
Theme Parks revenue increased 42.4% to $2.1 billion in the third
quarter of 2022, reflecting increased attendance and guest spending
at our parks in the U.S. and Japan compared to the prior year
period, and an increase from the operations of Universal Beijing
Resort, which opened in September 2021. Theme Parks Adjusted EBITDA
increased 88.6% to $819 million in the third quarter of 2022,
reflecting higher revenue, partially offset by higher operating
expenses. The prior year period included pre-opening costs related
to Universal Beijing Resort.
For the nine months ended September 30, 2022, revenue from the
Theme Parks segment increased 71.6% to $5.4 billion, primarily
reflecting improved operating conditions compared to 2021, when
each of our theme parks in the U.S. and Japan was either operating
at limited capacity or closed during certain periods as a result of
COVID-19, as well as the operations of Universal Beijing Resort,
which opened in September 2021. Adjusted EBITDA increased $1.3
billion to $1.9 billion, reflecting higher revenue, partially
offset by higher operating expenses.
Headquarters and Other
NBCUniversal Headquarters and Other includes overhead, personnel
costs and costs associated with corporate initiatives. Headquarters
and Other Adjusted EBITDA loss in the third quarter of 2022 was
$199 million, compared to a loss of $248 million in the prior year
period.
For the nine months ended September 30, 2022, Headquarters and
Other Adjusted EBITDA loss was $528 million, compared to a loss of
$643 million in 2021.
Eliminations
Amounts represent eliminations of transactions between our
NBCUniversal segments, which are affected by the timing of
recognition of content licenses between our Studios and Media
segments. Revenue eliminations in the third quarter of 2022 were
$909 million, compared to $654 million in the prior year period,
and Adjusted EBITDA eliminations were a loss of $59 million,
compared to a loss of $12 million in the prior year period.
For the nine months ended September 30, 2022, revenue
eliminations were $2.5 billion, compared to $2.2 billion in 2021.
Adjusted EBITDA eliminations were $98 million, compared to $238
million in 2021. The year-over-year change was primarily driven by
the licensing of content by the Studios segment to Peacock in the
Media segment.
Sky
($ in millions)
3rd
Quarter
Year to
Date
2022
2021
Change
Constant Currency Change7
2022
2021
Change
Constant Currency Change7
Sky Revenue
Direct-to-Consumer
$3,510
$4,127
(15.0
%)
(0.4
%)
$11,073
$12,415
(10.8
%)
(1.1
%)
Content
273
300
(9.1
%)
6.4
%
833
1,013
(17.8
%)
(9.3
%)
Advertising
471
561
(15.9
%)
(1.6
%)
1,623
1,777
(8.7
%)
1.1
%
Sky Revenue
$4,253
$4,988
(14.7
%)
(0.2
%)
$13,529
$15,205
(11.0
%)
(1.4
%)
Sky Operating Costs and
Expenses
$3,553
$4,016
(11.5
%)
3.5
%
$11,344
$13,310
(14.8
%)
(5.6
%)
Sky Adjusted EBITDA
$701
$971
(27.9
%)
(15.5
%)
$2,185
$1,895
15.3
%
28.7
%
Adjusted EBITDA Margin
16.5%
19.5%
16.2%
12.5%
Revenue for Sky decreased 14.7% to $4.3 billion in the
third quarter of 2022. Excluding the impact of currency, revenue
was consistent with the prior year period. Direct-to-consumer
revenue of $3.5 billion was consistent with the prior year period,
reflecting increased revenue in the U.K., driven by higher
broadband and mobile revenue, offset by decreased revenue in Italy
and Germany. Advertising revenue decreased 1.6% to $471 million,
reflecting lower revenue in Italy and consistent revenue in the
U.K. and Germany. Content revenue increased 6.4% to $273 million,
primarily due to the timing of licensing our content to other
platforms.
For the nine months ended September 30, 2022, Sky revenue
decreased 11.0% to $13.5 billion. Excluding the impact of currency,
revenue decreased 1.4%, reflecting lower direct-to-consumer revenue
and content revenue, partially offset by higher advertising
revenue.
Total Customer Relationships increased by 320,000 to 23.0
million in the third quarter of 2022, driven by streaming customer
net additions as a result of the timing of unique content and the
early start of the football season. For the nine months ended
September 30, 2022, total customer relationships decreased by
41,000.
(in thousands)
Customers
Net
Additions / (Losses)
3rd
Quarter
Year to
Date
3Q22
3Q21
2022
2021
2022
2021
Total Customer Relationships
22,986
22,966
320
(233
)
(41
)
(259
)
Adjusted EBITDA for Sky decreased 27.9% to $701 million
in the third quarter of 2022. Excluding the impact of currency,
Adjusted EBITDA decreased 15.5% compared to the prior year period,
driven by higher operating expenses. The increase in operating
expenses primarily reflects higher sports programming costs due to
the timing of sporting events, including a shift of certain
football matches to the third quarter in advance of the 2022 FIFA
World Cup, which will occur in the fourth quarter of 2022, as well
as higher direct network costs driven by growth in our residential
broadband and mobile businesses, partially offset by lower
entertainment programming costs.
For the nine months ended September 30, 2022, Adjusted EBITDA
for Sky increased 15.3% to $2.2 billion. Excluding the impact of
currency, Adjusted EBITDA increased 28.7%.
Corporate, Other and Eliminations
Corporate and Other
Corporate and Other primarily relates to corporate operations,
Comcast Spectacor and our new smart TV initiatives, including Sky
Glass and a joint venture with Charter Communications to develop
and nationally offer a next generation streaming platform. Revenue
in the third quarter of 2022 was $147 million compared to $65
million in the prior year period. Corporate and Other Adjusted
EBITDA loss was $378 million compared to a loss of $335 million in
the prior year period.
For the nine months ended September 30, 2022, Corporate and
Other revenue was $549 million compared to $246 million in 2021.
Corporate and Other Adjusted EBITDA loss was $944 million compared
to a loss of $876 million in 2021.
Eliminations
Amounts represent eliminations of transactions between Cable
Communications, NBCUniversal, Sky and other businesses.
Eliminations of transactions between NBCUniversal segments are
presented separately. Revenue eliminations in the third quarter of
2022 were $660 million compared to $871 million in the prior year
period, and Adjusted EBITDA eliminations were a benefit of $26
million compared to a loss of $98 million in the prior year period.
Prior year amounts reflect eliminations associated with the Tokyo
Olympics.
For the nine months ended September 30, 2022, revenue
eliminations were $2.2 billion compared to $2.3 billion in 2021,
and Adjusted EBITDA eliminations were a loss of $93 million
compared to a loss of $87 million in 2021.
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
Sky constant currency growth
rates are calculated by comparing the current period results to the
comparative period results in the prior year adjusted to reflect
the average exchange rates from the current year period rather than
the actual exchange rates in effect during the respective prior
year periods. See Table 6 for reconciliation of Sky's constant
currency growth.
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,
October 27, 2022 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 (929)
477-0338 with the passcode 876679. A replay of the call will be
available starting at 11:30 a.m. ET on Thursday, October 27, 2022
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. 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. 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). We
undertake no obligation to update or revise publicly any
forward-looking statements, whether because of new information,
future events or otherwise.
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 that connects
people to moments that matter. We are principally focused on
connectivity, aggregation, and streaming with 57 million customer
relationships across the United States and Europe. We deliver
broadband, wireless, and video through our Xfinity, Comcast
Business, and Sky brands; create, distribute, and stream leading
entertainment, sports, and news through Universal Filmed
Entertainment Group, Universal Studio Group, Sky Studios, the NBC
and Telemundo broadcast networks, multiple cable networks, Peacock,
NBCUniversal News Group, NBC Sports, Sky News, and Sky Sports; and
provide memorable experiences at Universal Parks and Resorts in the
United States and Asia. Visit www.comcastcorporation.com for more
information.
TABLE 1
Condensed Consolidated Statement of
Income (Unaudited)
Three Months Ended
Nine Months Ended
(in millions, except per share data)
September 30,
September 30,
2022
2021
2022
2021
Revenue
$29,849
$30,298
$90,874
$86,049
Costs and expenses
Programming and production
8,949
10,395
28,406
28,570
Other operating and administrative
9,344
8,981
27,701
25,799
Advertising, marketing and promotion
2,066
1,995
6,324
5,462
Depreciation
2,150
2,177
6,525
6,407
Amortization
1,183
1,301
3,824
3,815
Goodwill and long-lived asset
impairments
8,583
—
8,583
—
32,274
24,848
81,363
70,053
Operating income (loss)
(2,425
)
5,450
9,511
15,996
Interest expense
(960
)
(1,050
)
(2,922
)
(3,161
)
Investment and other income (loss),
net
Equity in net income (losses) of
investees, net
(242
)
602
(523
)
1,696
Realized and unrealized gains (losses) on
equity securities, net
(2
)
106
(207
)
532
Other income (loss), net
(21
)
59
(245
)
146
(266
)
766
(975
)
2,374
Income (loss) before income taxes
(3,652
)
5,166
5,614
15,208
Income tax expense
(1,014
)
(1,235
)
(3,562
)
(4,354
)
Net income (loss)
(4,665
)
3,931
2,052
10,854
Less: Net income (loss) attributable to
noncontrolling interests
(68
)
(104
)
(295
)
(249
)
Net income (loss) attributable to
Comcast Corporation
($4,598
)
$4,035
$2,347
$11,102
Diluted earnings (loss) per common
share attributable to Comcast Corporation shareholders
($1.05
)
$0.86
$0.52
$2.38
Diluted weighted-average number of common
shares
4,377
4,665
4,477
4,668
TABLE 2
Consolidated Statement of Cash Flows
(Unaudited)
Nine Months Ended
(in millions)
September 30,
2022
2021
OPERATING ACTIVITIES
Net income
$2,052
$10,854
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
10,349
10,222
Goodwill and long-lived asset
impairments
8,583
—
Share-based compensation
989
1,019
Noncash interest expense (income), net
234
287
Net (gain) loss on investment activity and
other
1,172
(1,953
)
Deferred income taxes
(326
)
2,087
Changes in operating assets and
liabilities, net of effects of acquisitions and divestitures:
Current and noncurrent receivables,
net
(574
)
(720
)
Film and television costs, net
(753
)
(541
)
Accounts payable and accrued expenses
related to trade creditors
152
667
Other operating assets and liabilities
(1,347
)
(465
)
Net cash provided by operating
activities
20,530
21,457
INVESTING ACTIVITIES
Capital expenditures
(7,062
)
(6,146
)
Cash paid for intangible assets
(2,152
)
(2,006
)
Construction of Universal Beijing
Resort
(221
)
(825
)
Acquisitions, net of cash acquired
(1
)
(167
)
Proceeds from sales of businesses and
investments
1,197
500
Purchases of investments
(2,089
)
(122
)
Other
170
359
Net cash provided by (used in) investing
activities
(10,158
)
(8,406
)
FINANCING ACTIVITIES
Proceeds from borrowings
166
2,515
Repurchases and repayments of debt
(301
)
(9,041
)
Repurchases of common stock under
repurchase program and employee plans
(9,813
)
(2,617
)
Dividends paid
(3,571
)
(3,387
)
Other
219
(416
)
Net cash provided by (used in) financing
activities
(13,299
)
(12,946
)
Impact of foreign currency on cash, cash
equivalents and restricted cash
(122
)
(15
)
Increase (decrease) in cash, cash
equivalents and restricted cash
(3,049
)
90
Cash, cash equivalents and restricted
cash, beginning of period
8,778
11,768
Cash, cash equivalents and restricted
cash, end of period
$5,729
$11,858
TABLE 3
Condensed Consolidated Balance Sheet
(Unaudited)
(in millions)
September 30,
December 31,
2022
2021
ASSETS
Current Assets
Cash and cash equivalents
$5,695
$8,711
Receivables, net
11,918
12,008
Other current assets
5,803
4,088
Total current assets
23,416
24,807
Film and television costs
12,685
12,806
Investments
7,318
8,082
Investment securing collateralized
obligation
539
605
Property and equipment, net
53,555
54,047
Goodwill
56,414
70,189
Franchise rights
59,365
59,365
Other intangible assets, net
28,604
33,580
Other noncurrent assets, net
12,411
12,424
$254,308
$275,905
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued expenses
related to trade creditors
$12,241
$12,455
Accrued participations and residuals
1,725
1,822
Deferred revenue
2,757
3,040
Accrued expenses and other current
liabilities
9,229
9,899
Current portion of long-term debt
2,047
2,132
Total current liabilities
27,999
29,348
Long-term debt, less current portion
90,404
92,718
Collateralized obligation
5,172
5,170
Deferred income taxes
29,102
30,041
Other noncurrent liabilities
20,288
20,620
Redeemable noncontrolling interests
409
519
Equity
Comcast Corporation shareholders'
equity
80,296
96,092
Noncontrolling interests
637
1,398
Total equity
80,933
97,490
$254,308
$275,905
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)
2022
2021
2022
2021
Net income (loss) attributable to
Comcast Corporation
($4,598
)
$4,035
$2,347
$11,102
Net income (loss) attributable to
noncontrolling interests
(68
)
(104
)
(295
)
(249
)
Income tax expense
1,014
1,235
3,562
4,354
Interest expense
960
1,050
2,922
3,161
Investment and other (income) loss,
net
266
(766
)
975
(2,374
)
Depreciation and amortization
3,333
3,477
10,349
10,222
Goodwill and long-lived asset
impairments
8,583
—
8,583
—
Adjustments (1)
(9
)
30
15
79
Adjusted EBITDA
$9,482
$8,957
$28,459
$26,297
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)
2022
2021
2022
2021
Net cash provided by operating
activities
$6,947
$6,100
$20,530
$21,457
Capital expenditures
(2,791
)
(2,142
)
(7,062
)
(6,146
)
Cash paid for capitalized software and
other intangible assets
(769
)
(723
)
(2,152
)
(2,006
)
Free Cash Flow
$3,387
$3,234
$11,316
$13,305
Alternate Presentation of Free Cash
Flow (Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)
2022
2021
2022
2021
Adjusted EBITDA
$9,482
$8,957
$28,459
$26,297
Capital expenditures
(2,791
)
(2,142
)
(7,062
)
(6,146
)
Cash paid for capitalized software and
other intangible assets
(769
)
(723
)
(2,152
)
(2,006
)
Cash interest expense
(698
)
(1,034
)
(2,341
)
(2,943
)
Cash taxes
(1,181
)
(368
)
(4,022
)
(2,201
)
Changes in operating assets and
liabilities
(1,021
)
(1,949
)
(2,736
)
(1,057
)
Noncash share-based compensation
314
308
989
1,019
Other (2)
51
186
182
342
Free Cash Flow
$3,387
$3,234
$11,316
$13,305
(1)
3rd quarter and year to date 2022
Adjusted EBITDA excludes ($9) million and $15 million of other
operating and administrative expenses, respectively, related to our
investment portfolio. 3rd quarter and year to date 2021 Adjusted
EBITDA exclude $30 million and $79 million of other operating and
administrative expenses, respectively, related to our investment
portfolio and Sky transaction-related costs.
(2)
3rd quarter and year to date 2022
includes decreases of ($9) million and $15 million, respectively,
of costs related to our investment portfolio as these amounts are
excluded from Adjusted EBITDA. 3rd quarter and year to date 2021
includes decreases of $30 million and $79 million, respectively, of
costs related to our investment portfolio and Sky
transaction-related costs.
TABLE 5
Reconciliations of Adjusted Net Income
and Adjusted EPS (Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
(in millions, except per share data)
$
EPS(8)
$
EPS
$
EPS
$
EPS
Net income (loss) attributable to
Comcast Corporation and diluted earnings (loss) per share
attributable to Comcast Corporation shareholders
($4,598
)
($1.05
)
$4,035
$0.86
$2,347
$0.52
$11,102
$2.38
Change
NM
NM
(78.9%)
(78.2%)
Amortization of acquisition-related
intangible assets (1)
413
0.09
491
0.11
1,354
0.30
1,440
0.31
Investments (2)
141
0.03
(486
)
(0.10
)
601
0.13
(1,608
)
(0.34
)
Items affecting period-over-period
comparability:
Goodwill and long-lived asset impairments
(3)
8,541
1.94
—
—
8,541
1.91
—
—
Income tax adjustments (4)
(286
)
(0.07
)
—
—
(286
)
(0.06
)
498
0.11
Loss on early redemption of debt (5)
—
—
—
—
—
—
59
0.01
Gains and losses related to businesses and
investments (6)
9
0.00
—
—
69
0.02
—
—
Costs related to Sky transaction (7)
—
—
(1
)
—
—
—
20
—
Adjusted Net income and Adjusted
EPS
$4,220
$0.96
$4,038
$0.87
$12,626
$2.82
$11,511
$2.47
Change
4.5%
10.3%
9.7%
14.2%
NM=comparison not meaningful.
(1)
Acquisition-related intangible
assets are recognized as a result of the application of Accounting
Standards Codification Topic 805, Business Combinations (such as
customer relationships), and their amortization is significantly
affected by the size and timing of our acquisitions. Amortization
of intangible assets not resulting from business combinations (such
as software and acquired intellectual property rights used in our
theme parks) is included in Adjusted Net Income and Adjusted
EPS.
Three Months Ended September
30,
Nine Months Ended September
30,
2022
2021
2022
2021
Amortization of acquisition-related
intangible assets before income taxes
$517
$603
$1,677
$1,781
Amortization of acquisition-related
intangible assets, net of tax
$413
$491
$1,354
$1,440
(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 September
30,
Nine Months Ended September
30,
2022
2021
2022
2021
Realized and unrealized (gains) losses on
equity securities, net
$2
($106
)
$207
($532
)
Equity in net (income) losses of
investees, net and other
183
(538
)
589
(1,589
)
Investments before income taxes
185
(644
)
796
(2,121
)
Investments, net of tax
$141
($486
)
$601
($1,608
)
(3)
3rd quarter and year to date 2022
net income (loss) attributable to Comcast Corporation includes a
loss of $8.6 billion related to goodwill and long-lived asset
impairments in our Sky segment. The goodwill impairment was
primarily not deductible for tax purposes.
(4)
3rd quarter and year to date 2022
net income (loss) attributable to Comcast Corporation includes $286
million of income tax benefit related to state tax law changes. 3rd
quarter and year to date 2021 net income attributable to Comcast
Corporation includes $498 million of income tax expense adjustments
related to UK tax law changes.
(5)
3rd quarter and year to date 2021
net income (loss) attributable to Comcast Corporation includes $78
million of interest expense, $59 million net of tax, resulting from
the early redemption of debt.
(6)
3rd quarter and year to date 2022
net income (loss) attributable to Comcast Corporation include
losses of $35 million and $96 million in other income,
respectively, related to an impairment of an equity method
investment, and include a gain of $(53) million in amortization
expense, $(26) million net of tax, related to the sale of a
business.
(7)
3rd quarter and year to date 2021
net income (loss) attributable to Comcast Corporation includes ($1)
million and $24 million of operating costs and expenses, $(1)
million and $20 million net of tax, respectively, related to the
Sky transaction.
(8)
For 3rd quarter 2022 reported EPS
does not include the effects of any potentially dilutive shares
because their effect would be antidilutive as a result of the loss
for the period. Adjusted Net Income is positive for the 3rd quarter
2022 and therefore Adjusted EPS is calculated using diluted
weighted average shares of 4,392 million, which includes the
effects of potentially dilutive shares.
TABLE 6
Reconciliation of Sky Constant Currency
Growth (Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)
2022
2021(1
)
Change
2022
2021(1
)
Change
Direct-to-Consumer
$3,510
$3,525
(0.4
%)
$11,073
$11,197
(1.1
%)
Content
273
256
6.4
%
833
919
(9.3
%)
Advertising
471
479
(1.6
%)
1,623
1,605
1.1
%
Revenue
$4,253
$4,260
(0.2
%)
$13,529
$13,720
(1.4
%)
Operating costs and expenses
$3,553
$3,431
3.5
%
$11,344
$12,022
(5.6
%)
Adjusted EBITDA
$701
$829
(15.5
%)
$2,185
$1,698
28.7
%
(1)
2021 results for entities
reporting in currencies other than United States dollars are
converted into United States dollars using the average exchange
rates from the current period rather than the actual exchange rates
in effect during the respective periods.
TABLE 7
Reconciliation of Media Revenue
Excluding Olympics and 2022 Super Bowl (Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)
2022
2021
Growth %
2022
2021
Growth %
Revenue
$5,230
$6,770
(22.7
%)
$17,427
$16,955
2.8
%
Olympics
—
1,759
963
1,759
2022 Super Bowl
—
—
519
—
Revenue excluding Olympics and 2022 Super
Bowl
$5,230
$5,011
4.4
%
$15,945
$15,195
4.9
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221027005069/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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