CMCSA Comcast Corporation

Comcast Corporation (NASDAQ: CMCSA) today reported results for the quarter ended September 30, 2024.

“Our convergence strategy continues to deliver a best-in-class connectivity experience across our expanding network of 63 million homes and businesses, which far exceeds the combined fiber footprint of our three largest competitors," said Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation. "Third quarter results demonstrate the strength of this platform - broadband ARPU increased 3.6%; revenue in our connectivity businesses grew 5%; and Adjusted EBITDA margins across Connectivity & Platforms grew to 40.9%. At the same time, we delivered an incredibly successful Paris Summer Olympics that helped fuel double-digit percentage growth in Peacock revenue and paid subscribers and contributed to NBC's #1 ranking for the 2023-2024 season. We also released the universally acclaimed Despicable Me 4, which grossed nearly $1.0 billion in worldwide box office, and announced the grand opening of Universal Epic Universe in May 2025, which will be the most ambitious and technologically sophisticated theme park ever created. Overall, it was a very active and successful quarter, and I couldn't be more pleased with how our team is executing and positioning our company for long-term growth."

 

 

 

 

 

 

 

($ in millions, except per share data)

 

 

 

 

 

 

3rd Quarter

 

 

Consolidated Results

2024

2023

Change

 

 

 

 

 

 

 

 

Revenue

$32,070

$30,115

6.5%

 

 

Net Income Attributable to Comcast

$3,629

$4,046

(10.3%

)

 

Adjusted Net Income1

$4,337

$4,483

(3.3%

)

 

Adjusted EBITDA2

$9,735

$9,962

(2.3%

)

 

Earnings per Share3

$0.94

$0.98

(4.2%

)

 

Adjusted Earnings per Share1

$1.12

$1.08

3.3%

 

 

Net Cash Provided by Operating Activities

$7,021

$8,154

(13.9%

)

 

Free Cash Flow4

$3,406

$4,032

(15.5%

)

 

 

 

 

 

 

 

For additional detail on segment revenue and expenses, customer metrics, capital expenditures, and free cash flow, please refer to the trending schedule on Comcast’s Investor Relations website at www.cmcsa.com.

3rd Quarter 2024 Highlights:

• Adjusted EPS Increased 3.3% to $1.12; Generated Free Cash Flow of $3.4 Billion
• Return of Capital to Shareholders Totaled $3.2 Billion Through a Combination of $1.2 Billion in Dividend Payments and $2.0 Billion in Share Repurchases. Repurchased $10.1 Billion of Shares Over the Trailing Twelve Months, Reducing Shares Outstanding by 6%
• Connectivity & Platforms Adjusted EBITDA of $8.3 Billion Was Consistent With the Prior Year Period and Adjusted EBITDA Margin Increased 30 Basis Points to 40.9%. Excluding the Impact of Foreign Currency, Connectivity & Platforms Adjusted EBITDA Margin Increased 50 Basis Points
• Connectivity & Platforms Customer Relationships Decreased by 29,000 to 51.7 Million and Domestic Broadband Customers Decreased by 87,000 to 32.0 Million, Including the Impact From the End of ACP. Excluding the Negative Impact From ACP, Estimated Total Customer Relationship Net Additions Were 67,000 and Total Domestic Broadband Net Additions Were 9,000
• Domestic Broadband Average Rate Per Customer Increased 3.6%, Driving Domestic Broadband Revenue Growth of 2.7% to $6.5 Billion
• Domestic Wireless Customer Lines Increased 20% Compared to the Prior Year Period to 7.5 Million, Including Net Additions of 319,000 in the Third Quarter
• Business Services Connectivity Adjusted EBITDA Increased 4.2% to $1.4 Billion and Adjusted EBITDA Margin Was 57.4%
• Studios Adjusted EBITDA Increased 9.0% to $468 Million, Driven by the Successful Theatrical Performance of Despicable Me 4 and Twisters; DM4 Debuted in July and Grossed Nearly $1.0 Billion in Worldwide Box Office Year-to-Date, Pushing the Minions Franchise's Cumulative Total Past $5 Billion
• Peacock Paid Subscribers Increased 29% Compared to the Prior Year Period to 36 Million, Including Net Additions of 3 Million in the Third Quarter. Peacock Revenue Increased 82% to $1.5 Billion; Adjusted EBITDA Improved Compared to the Prior Year Period
• Comcast's Exclusive Broadcast of the Paris Olympics in the U.S. Showcased the Combined Capabilities Across Our Company and Captivated the Nation's Attention for 17 Days. Average Daily Viewers of the Games Across Our Linear Networks and Peacock of 31 Million Increased 82% Compared to the Prior Summer Olympics in 2021. Incremental Olympics Revenue in Media Was a Record High $1.9 Billion

3rd Quarter Consolidated Financial Results

Revenue increased 6.5% compared to the prior year period. Net Income Attributable to Comcast decreased 10.3%. Adjusted Net Income decreased 3.3%. Adjusted EBITDA decreased 2.3%.

Earnings per Share (EPS) decreased 4.2% to $0.94. Adjusted EPS increased 3.3% to $1.12.

Capital Expenditures decreased 11.6% to $2.9 billion. Connectivity & Platforms’ capital expenditures decreased 6.5% to $1.9 billion, reflecting lower spending on scalable infrastructure and customer premise equipment, partially offset by higher investment in line extensions and support capital. Content & Experiences' capital expenditures were consistent and continue to reflect significant spending due to the construction of Epic Universe theme park in Orlando, which is scheduled to open on May 22, 2025.

Net Cash Provided by Operating Activities was $7.0 billion. Free Cash Flow was $3.4 billion.

Dividends and Share Repurchases. Comcast paid dividends totaling $1.2 billion and repurchased 49.9 million of its shares for $2.0 billion, resulting in a total return of capital to shareholders of $3.2 billion.

Connectivity & Platforms

 

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

Constant Currency Change5

 

 

 

3rd Quarter

 

 

 

2024

 

2023

 

Change

 

 

 

 

 

 

 

 

 

Connectivity & Platforms Revenue

 

 

 

 

 

 

Residential Connectivity & Platforms

$17,866

 

$17,951

 

(0.5

%)

(1.0

%)

 

 

Business Services Connectivity

2,425

 

2,320

 

4.5

%

4.5

%

 

 

Total Connectivity & Platforms Revenue

$20,291

 

$20,271

 

0.1

%

(0.4

%)

 

 

 

 

 

 

 

 

 

Connectivity & Platforms Adjusted EBITDA

 

 

 

 

 

 

Residential Connectivity & Platforms

$6,904

 

$6,886

 

0.3

%

—

%

 

 

Business Services Connectivity

1,391

 

1,335

 

4.2

%

4.3

%

 

 

Total Connectivity & Platforms Adjusted EBITDA

$8,295

 

$8,221

 

0.9

%

0.7

%

 

 

 

 

 

 

 

 

 

Connectivity & Platforms Adjusted EBITDA Margin

 

 

 

 

 

 

Residential Connectivity & Platforms

38.6

%

38.4

%

20 bps

40 bps

 

 

Business Services Connectivity

57.4

%

57.5

%

(10) bps

(10) bps

 

 

Total Connectivity & Platforms Adjusted EBITDA Margin

40.9

%

40.6

%

30 bps

50 bps

 

 

 

 

 

 

 

 

 

Change percentages represent year/year growth rates. The changes in Adjusted EBITDA margins are presented as year/year basis point changes in the rounded Adjusted EBITDA margins.

Revenue and Adjusted EBITDA for Connectivity & Platforms were consistent with the prior year period. Adjusted EBITDA margin increased to 40.9%.

 

 

 

 

 

 

 

 

(in thousands)

 

 

Net Additions / (Losses)

 

 

 

 

 

 

 

 

 

3rd Quarter

 

 

 

3Q24

3Q23

2024

 

2023

 

 

 

Customer Relationships

 

 

 

 

 

 

Domestic Residential Connectivity & Platforms Customer Relationships

31,324

31,722

(103

)

(39

)

 

 

International Residential Connectivity & Platforms Customer Relationships

17,716

17,958

78

 

74

 

 

 

Business Services Connectivity Customer Relationships

2,627

2,640

(4

)

5

 

 

 

Total Connectivity & Platforms Customer Relationships

51,667

52,320

(29

)

40

 

 

 

 

 

 

 

 

 

 

Domestic Broadband

 

 

 

 

 

 

Residential Customers

29,504

29,779

(79

)

(17

)

 

 

Business Customers

2,477

2,508

(8

)

(2

)

 

 

Total Domestic Broadband Customers

31,981

32,287

(87

)

(18

)

 

 

 

 

 

 

 

 

 

Total Domestic Wireless Lines

7,519

6,278

319

 

294

 

 

 

 

 

 

 

 

 

 

Total Domestic Video Customers

12,834

14,495

(365

)

(490

)

 

 

 

 

 

 

 

 

Total Customer Relationships for Connectivity & Platforms decreased by 29,000 to 51.7 million, primarily reflecting a decrease in domestic customer relationships, partially offset by an increase in international customer relationships. Domestic Residential Connectivity & Platforms relationships include a negative impact in the quarter from the end of the FCC's Affordable Connectivity Program ("ACP") in the second quarter of 2024. Excluding the negative impact from ACP, we estimate that total customer relationships increased by 67,000. Total domestic broadband customer net losses were 87,000. Excluding the negative impact from ACP, we estimate that total broadband net additions were 9,000. Total domestic wireless line net additions were 319,000 and total domestic video customer net losses were 365,000.

Residential Connectivity & Platforms

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

Constant Currency Change5

 

 

 

3rd Quarter

 

 

 

2024

 

2023

 

Change

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

Domestic Broadband

$6,539

 

$6,366

 

2.7

%

2.7

%

 

 

Domestic Wireless

1,093

 

917

 

19.2

%

19.2

%

 

 

International Connectivity

1,236

 

1,109

 

11.4

%

8.3

%

 

 

Total Residential Connectivity

8,869

 

8,393

 

5.7

%

5.3

%

 

 

Video

6,713

 

7,154

 

(6.2

%)

(6.8

%)

 

 

Advertising

987

 

960

 

2.7

%

1.6

%

 

 

Other

1,298

 

1,444

 

(10.1

%)

(10.7

%)

 

 

Total Revenue

$17,866

 

$17,951

 

(0.5

%)

(1.0

%)

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

Programming

$4,102

 

$4,460

 

(8.0

%)

(8.6

%)

 

 

Non-Programming

6,860

 

6,605

 

3.9

%

3.0

%

 

 

Total Operating Expenses

$10,962

 

$11,065

 

(0.9

%)

(1.7

%)

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$6,904

 

$6,886

 

0.3

%

—

%

 

 

Adjusted EBITDA Margin

38.6

%

38.4

%

20 bps

40 bps

 

 

 

 

 

 

 

 

 

Change percentages represent year/year growth rates. The changes in Adjusted EBITDA margins are presented as year/year basis point changes in the rounded Adjusted EBITDA margins.

Revenue for Residential Connectivity & Platforms was consistent with the prior year period, driven by increases in domestic broadband, domestic wireless, international connectivity and advertising revenue, offset by decreases in video and other revenue. Domestic broadband revenue increased due to higher average rates. Domestic wireless revenue increased due to an increase in the number of customer lines and device sales. International connectivity revenue increased primarily due to an increase in broadband revenue from higher average rates and the positive impact of foreign currency. Advertising revenue increased due to higher domestic political advertising, partially offset by lower domestic nonpolitical and international advertising. Video revenue decreased due to a decline in the number of video customers, partially offset by an overall increase in average rates. Other revenue decreased primarily due to lower residential wireline voice revenue, driven by a decline in the number of customers.

Adjusted EBITDA for Residential Connectivity & Platforms was consistent with the prior year period reflecting consistent revenue and operating expenses. Programming expenses decreased primarily due to a decline in the number of domestic video customers, partially offset by rate increases under our domestic programming contracts. Non-programming expenses increased primarily due to higher direct product costs, the impact of foreign currency, increased technical and support costs and higher marketing and promotion, including spending associated with the Paris Olympics. Adjusted EBITDA margin increased to 38.6%.

Business Services Connectivity

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

Constant Currency Change5

 

 

 

3rd Quarter

 

 

 

2024

 

2023

 

Change

 

 

 

 

 

 

 

 

 

Revenue

$2,425

 

$2,320

 

4.5%

4.5%

 

 

Operating Expenses

1,034

 

985

 

4.9%

4.8%

 

 

Adjusted EBITDA

$1,391

 

$1,335

 

4.2%

4.3%

 

 

Adjusted EBITDA Margin

57.4

%

57.5

%

(10) bps

(10) bps

 

 

 

 

 

 

 

 

 

Change percentages represent year/year growth rates. The changes in Adjusted EBITDA margins are presented as year/year basis point changes in the rounded Adjusted EBITDA margins.

Revenue for Business Services Connectivity increased due to an increase in revenue from medium-sized and enterprise customers, and an increase in revenue from small business customers driven by higher average rates.

Adjusted EBITDA for Business Services Connectivity increased due to higher revenue, partially offset by higher operating expenses. The increase in operating expenses was primarily due to increases in direct product costs and marketing and promotion expenses. Adjusted EBITDA margin decreased to 57.4%.

Content & Experiences

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

3rd Quarter

 

 

 

2024

 

2023

 

Change

 

 

Content & Experiences Revenue

 

 

 

 

 

Media

$8,231

 

$6,029

 

36.5

%

 

 

Excluding Olympics7

6,325

 

6,029

 

4.9

%

 

 

Studios

2,826

 

2,518

 

12.3

%

 

 

Theme Parks

2,289

 

2,418

 

(5.3

%)

 

 

Headquarters & Other

11

 

13

 

(16.8

%)

 

 

Eliminations

(758

)

(419

)

(80.7

%)

 

 

Total Content & Experiences Revenue

$12,599

 

$10,559

 

19.3

%

 

 

 

 

 

 

 

 

Content & Experiences Adjusted EBITDA

 

 

 

 

 

Media

$650

 

$723

 

(10.1

%)

 

 

Studios

468

 

429

 

9.0

%

 

 

Theme Parks

847

 

983

 

(13.8

%)

 

 

Headquarters & Other

(200

)

(178

)

(12.6

%)

 

 

Eliminations

38

 

17

 

125.6

%

 

 

Total Content & Experiences Adjusted EBITDA

$1,802

 

$1,973

 

(8.7

%)

 

 

Revenue for Content & Experiences increased compared to the prior year period, including $1.9 billion of incremental revenue from the Paris Olympics included in the Media segment. Adjusted EBITDA for Content & Experiences decreased due to declines in Theme Parks and Media, partially offset by growth at Studios.

Media

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

3rd Quarter

 

 

 

2024

2023

Change

 

 

Revenue

 

 

 

 

 

Domestic Advertising

$3,347

$1,913

74.9

%

 

 

Excluding Olympics7

1,915

1,913

0.1

%

 

 

Domestic Distribution

3,272

2,591

26.3

%

 

 

Excluding Olympics7

2,798

2,591

8.0

%

 

 

International Networks

1,070

1,019

5.0

%

 

 

Other

542

506

7.2

%

 

 

Total Revenue

$8,231

$6,029

36.5

%

 

 

Excluding Olympics7

6,325

6,029

4.9

%

 

 

Operating Expenses

7,581

5,306

42.9

%

 

 

Adjusted EBITDA

$650

$723

(10.1

%)

 

 

 

 

 

 

 

Revenue for Media increased primarily due to higher domestic advertising and domestic distribution revenue. Excluding $1.9 billion of incremental revenue from the Paris Olympics, Media revenue increased 4.9%. Domestic advertising revenue increased primarily reflecting the Paris Olympics and additional Peacock sales, partially offset by lower revenue at our networks. Domestic distribution revenue increased primarily reflecting the broadcast of the Paris Olympics and higher revenue at Peacock, driven by an increase in paid subscribers compared to the prior year period. International networks revenue increased primarily due to the positive impact of foreign currency and an increase in revenue associated with the distribution of sports networks. Other revenue increased primarily due to an increase in revenue from the licensing of our owned content.

Adjusted EBITDA for Media decreased due to higher operating expenses, which more than offset higher revenue. The increase in operating expenses was primarily due to increased sports programming costs associated with the Paris Olympics, higher programming costs at Peacock and an increase in other sports programming costs for our domestic television networks. Media results include $1.5 billion of revenue and an Adjusted EBITDA6 loss of $436 million related to Peacock, including amounts attributable to the Paris Olympics, compared to $830 million of revenue and an Adjusted EBITDA6 loss of $565 million in the prior year period.

Studios

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

3rd Quarter

 

 

 

2024

2023

Change

 

 

Revenue

 

 

 

 

 

Content Licensing

$1,865

$1,691

10.3

%

 

 

Theatrical

611

504

21.3

%

 

 

Other

350

324

8.2

%

 

 

Total Revenue

$2,826

$2,518

12.3

%

 

 

Operating Expenses

2,359

2,089

12.9

%

 

 

Adjusted EBITDA

$468

$429

9.0

%

 

 

 

 

 

 

 

Revenue for Studios increased primarily due to higher content licensing revenue and theatrical revenue. Content licensing revenue increased primarily due to the timing of when content was made available by our television studios under licensing agreements, including the impact of the work stoppages in the prior year period. Theatrical revenue increased due to the successful performance of recent releases, including Despicable Me 4 and Twisters.

Adjusted EBITDA for Studios increased due to higher revenue, which more than offset higher operating expenses. The increase in operating expenses primarily reflected higher programming and production expenses, mainly due to higher costs associated with content licensing sales, including the impact of the work stoppages in the prior year period.

Theme Parks

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

3rd Quarter

 

 

 

2024

2023

Change

 

 

 

 

 

 

 

 

Revenue

$2,289

$2,418

(5.3%)

 

 

Operating Expenses

1,442

1,435

0.5%

 

 

Adjusted EBITDA

$847

$983

(13.8%)

 

 

 

 

 

 

 

Revenue for Theme Parks decreased primarily due to lower revenue at our domestic theme parks, driven by lower guest attendance.

Adjusted EBITDA for Theme Parks decreased, reflecting lower revenue and consistent operating expenses.

Headquarters & Other

Content & Experiences Headquarters & Other includes overhead, personnel costs and costs associated with corporate initiatives. Headquarters & Other Adjusted EBITDA loss in the third quarter was $200 million, compared to a loss of $178 million in the prior year period.

Eliminations

Amounts represent eliminations of transactions between our Content & Experiences segments, the most significant being content licensing between the Studios and Media segments, which are affected by the timing of recognition of content licenses. Revenue eliminations were $758 million, compared to $419 million in the prior year period, and Adjusted EBITDA eliminations were a benefit of $38 million, compared to a benefit of $17 million in the prior year period.

Corporate, Other and Eliminations

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

3rd Quarter

 

 

 

2024

 

2023

 

Change

 

 

Corporate & Other

 

 

 

 

 

Revenue

$675

 

$643

 

5.0

%

 

 

Operating Expenses

978

 

893

 

9.6

%

 

 

Adjusted EBITDA

($302

)

($249

)

(21.3

%)

 

 

 

 

 

 

 

 

Eliminations

 

 

 

 

 

Revenue

($1,495

)

($1,358

)

10.1

%

 

 

Operating Expenses

(1,436

)

(1,375

)

4.5

%

 

 

Adjusted EBITDA

($59

)

$16

 

NM  

 

 

NM=comparison not meaningful.

 

 

 

 

 

Corporate & Other

Corporate & Other primarily includes overhead and personnel costs; our Sky-branded video services and television networks in Germany; Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania; and Xumo. Corporate & Other Adjusted EBITDA decreased primarily due to increased marketing associated with the Paris Olympics.

Eliminations

Amounts represent eliminations of transactions between Connectivity & Platforms, Content & Experiences and other businesses, the most significant being distribution of television network programming between the Media and Residential Connectivity & Platforms segments. Revenue eliminations were $1.5 billion, compared to $1.4 billion in the prior year period, and Adjusted EBITDA eliminations were a loss of $59 million compared to a benefit of $16 million in the prior year period. Current year amounts reflect an increase in eliminations associated with the Paris Olympics.

Notes:

1

We define Adjusted Net Income and Adjusted EPS as net income attributable to Comcast Corporation and diluted earnings per common share attributable to Comcast Corporation shareholders, respectively, adjusted to exclude the effects of the amortization of acquisition-related intangible assets, investments that investors may want to evaluate separately (such as based on fair value) and the impact of certain events, gains, losses or other charges that affect period-over-period comparisons. See Table 5 for reconciliations of non-GAAP financial measures.

2

We define Adjusted EBITDA as net income attributable to Comcast Corporation before net income (loss) attributable to noncontrolling interests, income tax expense, investment and other income (loss), net, interest expense, depreciation and amortization expense, and other operating gains and losses (such as impairment charges related to fixed and intangible assets and gains or losses on the sale of long-lived assets), if any. From time to time, we may exclude from Adjusted EBITDA the impact of certain events, gains, losses or other charges (such as significant legal settlements) that affect the period-to-period comparability of our operating performance. See Table 4 for reconciliation of non-GAAP financial measure.

3

All earnings per share amounts are presented on a diluted basis.

4

We define Free Cash Flow as net cash provided by operating activities (as stated in our Consolidated Statement of Cash Flows) reduced by capital expenditures and cash paid for intangible assets. From time to time, we may exclude from Free Cash Flow the impact of certain cash receipts or payments (such as significant legal settlements) that affect period-to-period comparability. Cash payments related to certain capital or intangible assets, such as the construction of Universal Beijing Resort, are presented separately in our Consolidated Statement of Cash Flows and are therefore excluded from capital expenditures and cash paid for intangible assets for Free Cash Flow. See Table 4 for reconciliation of non-GAAP financial measure.

5

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

6

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

7

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

Numerical information is presented on a rounded basis using actual amounts, unless otherwise noted. The change in Peacock paid subscribers is calculated using rounded paid subscriber amounts. Minor differences in totals and percentage calculations may exist due to rounding.

Conference Call and Other Information

Comcast Corporation will host a conference call with the financial community today, October 31, 2024, at 8:30 a.m. Eastern Time (ET). The conference call and related materials will be broadcast live and posted on our Investor Relations website at www.cmcsa.com. A replay of the call will be available today, October 31, 2024, starting at 11:30 a.m. ET on the Investor Relations website.

From time to time, we post information that may be of interest to investors on our website at www.cmcsa.com and on our corporate website, www.comcastcorporation.com. To automatically receive Comcast financial news by email, please visit www.cmcsa.com and subscribe to email alerts.

Caution Concerning Forward-Looking Statements

This press release includes statements that may constitute forward-looking statements. In evaluating these statements, readers should consider various factors, including the risks and uncertainties we describe in the “Risk Factors” sections of our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q and other reports filed with the Securities and Exchange Commission (SEC). Factors that could cause our actual results to differ materially from these forward-looking statements include changes in and/or risks associated with: the competitive environment; consumer behavior; the advertising market; consumer acceptance of our content; programming costs; key distribution and/or licensing agreements; use and protection of our intellectual property; our reliance on third-party hardware, software and operational support; keeping pace with technological developments; cyber attacks, security breaches or technology disruptions; weak economic conditions; acquisitions and strategic initiatives; operating businesses internationally; natural disasters, severe weather-related and other uncontrollable events; loss of key personnel; labor disputes; laws and regulations; adverse decisions in litigation or governmental investigations; and other risks described from time to time in reports and other documents we file with the SEC. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made, and involve risks and uncertainties that could cause actual events or our actual results to differ materially from those expressed in any such forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise. The amount and timing of any dividends and share repurchases are subject to business, economic and other relevant factors.

Non-GAAP Financial Measures

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

About Comcast Corporation

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

TABLE 1

Condensed Consolidated Statements of Income (Unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

(in millions, except per share data)

September 30,

 

September 30,

 

2024

 

2023

 

2024

 

2023

Revenue

$32,070

 

$30,115

 

$91,817

 

$90,319

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

Programming and production

10,216

 

8,652

 

27,000

 

26,506

Marketing and promotion

1,989

 

1,866

 

5,929

 

5,929

Other operating and administrative

10,128

 

9,629

 

29,615

 

28,247

Depreciation

2,219

 

2,203

 

6,548

 

6,662

Amortization

1,659

 

1,290

 

4,421

 

4,146

 

26,211

 

23,640

 

73,512

 

71,489

 

 

 

 

 

 

 

 

Operating income

5,859

 

6,475

 

18,304

 

18,830

 

 

 

 

 

 

 

 

Interest expense

(1,037)

 

(1,060)

 

(3,065)

 

(3,068)

 

 

 

 

 

 

 

 

Investment and other income (loss), net

 

 

 

 

 

 

 

Equity in net income (losses) of investees, net

(152)

 

49

 

(438)

 

454

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

(22)

 

(87)

 

(163)

 

(130)

Other income (loss), net

171

 

88

 

461

 

349

 

(3)

 

50

 

(140)

 

672

 

 

 

 

 

 

 

 

Income before income taxes

4,819

 

5,465

 

15,099

 

16,434

 

 

 

 

 

 

 

 

Income tax expense

(1,243)

 

(1,468)

 

(3,906)

 

(4,481)

 

 

 

 

 

 

 

 

Net income

3,576

 

3,997

 

11,192

 

11,954

 

 

 

 

 

 

 

 

Less: Net income (loss) attributable to noncontrolling interests

(53)

 

(49)

 

(222)

 

(175)

 

 

 

 

 

 

 

 

Net income attributable to Comcast Corporation

$3,629

 

$4,046

 

$11,415

 

$12,128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share attributable to Comcast Corporation shareholders

$0.94

 

$0.98

 

$2.90

 

$2.90

 

 

 

 

 

 

 

 

Diluted weighted-average number of common shares

3,880

 

4,141

 

3,930

 

4,184

 

 

 

 

 

 

 

 

TABLE 2

Consolidated Statements of Cash Flows (Unaudited)

 

 

 

 

 

Nine Months Ended

(in millions)

September 30,

 

2024

 

2023

 

 

 

 

OPERATING ACTIVITIES

 

 

 

Net income

$11,192

 

$11,954

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

 

 

 

Depreciation and amortization

10,969

 

10,807

Share-based compensation

983

 

955

Noncash interest expense (income), net

331

 

235

Net (gain) loss on investment activity and other

620

 

(266)

Deferred income taxes

123

 

394

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

 

 

 

Current and noncurrent receivables, net

74

 

(26)

Film and television costs, net

(287)

 

(531)

Accounts payable and accrued expenses related to trade creditors

(906)

 

(518)

Other operating assets and liabilities

(3,505)

 

(425)

 

 

 

 

Net cash provided by operating activities

19,593

 

22,579

 

 

 

 

INVESTING ACTIVITIES

 

 

 

Capital expenditures

(8,267)

 

(8,922)

Cash paid for intangible assets

(2,043)

 

(2,405)

Construction of Universal Beijing Resort

(111)

 

(119)

Proceeds from sales of businesses and investments

689

 

410

Purchases of investments

(934)

 

(949)

Other

108

 

267

 

 

 

 

Net cash (used in) investing activities

(10,559)

 

(11,718)

 

 

 

 

FINANCING ACTIVITIES

 

 

 

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

—

 

(660)

Proceeds from borrowings

6,268

 

6,046

Repurchases and repayments of debt

(2,433)

 

(3,041)

Repurchases of common stock under repurchase program and employee plans

(6,920)

 

(7,770)

Dividends paid

(3,624)

 

(3,586)

Other

250

 

(126)

 

 

 

 

Net cash (used in) financing activities

(6,459)

 

(9,136)

 

 

 

 

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

21

 

(18)

 

 

 

 

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

2,596

 

1,707

 

 

 

 

Cash, cash equivalents and restricted cash, beginning of period

6,282

 

4,782

 

 

 

 

Cash, cash equivalents and restricted cash, end of period

$8,878

 

$6,489

 

 

 

 

TABLE 3

Condensed Consolidated Balance Sheets (Unaudited)

 

 

 

 

(in millions)

September 30,

 

December 31,

 

2024

 

2023

ASSETS

 

 

 

 

 

 

 

Current Assets

 

 

 

Cash and cash equivalents

$8,814

 

$6,215

Receivables, net

14,036

 

13,813

Other current assets

4,336

 

3,959

Total current assets

27,186

 

23,987

 

 

 

 

Film and television costs

13,340

 

12,920

 

 

 

 

Investments

9,021

 

9,385

 

 

 

 

Property and equipment, net

61,775

 

59,686

 

 

 

 

Goodwill

60,076

 

59,268

 

 

 

 

Franchise rights

59,365

 

59,365

 

 

 

 

Other intangible assets, net

26,423

 

27,867

 

 

 

 

Other noncurrent assets, net

12,686

 

12,333

 

 

 

 

 

$269,871

 

$264,811

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

Current Liabilities

 

 

 

Accounts payable and accrued expenses related to trade creditors

$11,779

 

$12,437

Accrued participations and residuals

1,476

 

1,671

Deferred revenue

3,778

 

3,242

Accrued expenses and other current liabilities

8,977

 

11,613

Current portion of debt

2,610

 

2,069

Advance on sale of investment

9,167

 

9,167

Total current liabilities

37,786

 

40,198

 

 

 

 

Noncurrent portion of debt

98,754

 

95,021

 

 

 

 

Deferred income taxes

26,263

 

26,003

 

 

 

 

Other noncurrent liabilities

20,526

 

20,122

 

 

 

 

Redeemable noncontrolling interests

224

 

241

 

 

 

 

Equity

 

 

 

Comcast Corporation shareholders' equity

85,774

 

82,703

Noncontrolling interests

544

 

523

Total equity

86,318

 

83,226

 

 

 

 

 

$269,871

 

$264,811

TABLE 4

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

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

(in millions)

2024

 

2023

 

 

2024

 

2023

Net income attributable to Comcast Corporation

$3,629

 

$4,046

 

 

$11,415

 

$12,128

Net income (loss) attributable to noncontrolling interests

(53)

 

(49)

 

 

(222)

 

(175)

Income tax expense

1,243

 

1,468

 

 

3,906

 

4,481

Interest expense

1,037

 

1,060

 

 

3,065

 

3,068

Investment and other (income) loss, net

3

 

(50)

 

 

140

 

(672)

Depreciation

2,219

 

2,203

 

 

6,548

 

6,662

Amortization

1,659

 

1,290

 

 

4,421

 

4,146

Adjustments (1)

(2)

 

(6)

 

 

(11)

 

(16)

Adjusted EBITDA

$9,735

 

$9,962

 

 

$29,261

 

$29,621

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

(in millions)

2024

 

2023

 

 

2024

 

2023

Net cash provided by operating activities

$7,021

 

$8,154

 

 

$19,593

 

$22,579

Capital expenditures

(2,913)

 

(3,294)

 

 

(8,267)

 

(8,922)

Cash paid for capitalized software and other intangible assets

(702)

 

(827)

 

 

(2,043)

 

(2,405)

Free Cash Flow

$3,406

 

$4,032

 

 

$9,283

 

$11,253

 

 

 

 

 

 

 

 

 

Alternate Presentation of Free Cash Flow (Unaudited)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

(in millions)

2024

 

2023

 

 

2024

 

2023

Adjusted EBITDA

$9,735

 

$9,962

 

 

$29,261

 

$29,621

Capital expenditures

(2,913)

 

(3,294)

 

 

(8,267)

 

(8,922)

Cash paid for capitalized software and other intangible assets

(702)

 

(827)

 

 

(2,043)

 

(2,405)

Cash interest expense

(690)

 

(744)

 

 

(2,503)

 

(2,566)

Cash taxes

(1,420)

 

(1,439)

 

 

(5,988)

 

(3,823)

Changes in operating assets and liabilities

(1,126)

 

(55)

 

 

(2,652)

 

(2,030)

Noncash share-based compensation

294

 

287

 

 

983

 

955

Other (2)

228

 

143

 

 

492

 

423

Free Cash Flow

$3,406

 

$4,032

 

 

$9,283

 

$11,253

(1)

 

3rd quarter and year to date 2024 Adjusted EBITDA exclude $(2) and $(11) million of other operating and administrative expenses, respectively, related to our investment portfolio. 3rd quarter and year to date 2023 Adjusted EBITDA exclude $(6) and $(16) million of other operating and administrative expenses, respectively, related to our investment portfolio.

 

 

 

(2)

 

3rd quarter and year to date 2024 include adjustments of $(2) and $(11) million, respectively, related to our investment portfolio and 3rd quarter and year to date 2023 include adjustments of $(6) and $(16) million, respectively, related to our investment portfolio, as these amounts are excluded from Adjusted EBITDA.

TABLE 5

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliations of Adjusted Net Income and Adjusted EPS (Unaudited)

 

 

 

 

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

 

2024

 

2023

 

 

2024

 

2023

(in millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

EPS

 

$

 

EPS

 

 

$

 

EPS

 

$

 

EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$3,629

 

$0.94

 

$4,046

 

$0.98

 

 

$11,415

 

$2.90

 

$12,128

 

$2.90

Change

(10.3%)

 

(4.2%)

 

 

 

 

 

 

(5.9%)

 

0.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of acquisition-related intangible assets (1)

624

 

0.16

 

443

 

0.11

 

 

1,494

 

0.38

 

1,318

 

0.32

Investments (2)

83

 

0.02

 

(6)

 

—

 

 

333

 

0.08

 

(364)

 

(0.09)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net income and Adjusted EPS

$4,337

 

$1.12

 

$4,483

 

$1.08

 

 

$13,243

 

$3.37

 

$13,083

 

$3.13

Change

(3.3%)

 

3.3%

 

 

 

 

 

 

1.2%

 

7.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Acquisition-related intangible assets are recognized as a result of the application of Accounting Standards Codification Topic 805, Business Combinations (such as customer relationships), and their amortization is significantly affected by the size and timing of our acquisitions. Amortization of intangible assets not resulting from business combinations (such as software and acquired intellectual property rights used in our theme parks) is included in Adjusted Net Income and Adjusted EPS.

 

Three Months Ended

Nine Months Ended

 

September 30,

 

 

September 30,

 

2024

 

2023

 

 

2024

 

2023

Amortization of acquisition-related intangible assets before income taxes

$817

 

$571

 

 

$1,949

 

$1,699

Amortization of acquisition-related intangible assets, net of tax

$624

 

$443

 

 

$1,494

 

$1,318

(2)

Adjustments for investments include realized and unrealized (gains) losses on equity securities, net (as stated in Table 1), as well as the equity in net (income) losses of investees, net, for certain equity method investments, including Atairos and Hulu and costs related to our investment portfolio.

 

Three Months Ended

Nine Months Ended

 

September 30,

 

 

September 30,

 

2024

 

2023

 

 

2024

 

2023

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

$22

 

$87

 

 

$163

 

$130

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

87

 

(96)

 

 

275

 

(614)

Investments before income taxes

109

 

(9)

 

 

438

 

(484)

Investments, net of tax

$83

 

($6)

 

 

$333

 

($364)

TABLE 6

Reconciliation of Constant Currency (Unaudited)

 

 

Three Months Ended

September 30, 2023

 

 

Nine Months Ended

September 30, 2023

 

 

 

 

 

 

Effects of

 

Constant

 

 

 

 

Effects of

 

Constant

As

 

Foreign

 

Currency

 

 

 As

 

Foreign

 

Currency

(in millions)

Reported

 

Currency

 

Amounts

 

 

Reported

 

Currency

 

Amounts

Reconciliation of Connectivity & Platforms Constant Currency

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Connectivity & Platforms Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Residential Connectivity & Platforms

$17,951

 

$99

 

$18,050

 

 

$53,888

 

$253

 

$54,141

Business Services Connectivity

2,320

 

—

 

2,320

 

 

6,894

 

1

 

6,895

Total Connectivity & Platforms Revenue

$20,271

 

$99

 

$20,370

 

 

$60,783

 

$254

 

$61,037

 

 

 

 

 

 

 

 

 

 

 

 

 

Connectivity and Platforms Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

Residential Connectivity & Platforms

$6,886

 

$16

 

$6,902

 

 

$20,672

 

$39

 

$20,711

Business Services Connectivity

1,335

 

(1)

 

1,334

 

 

3,988

 

(1)

 

3,988

Total Connectivity & Platforms Adjusted EBITDA

$8,221

 

$15

 

$8,237

 

 

$24,660

 

$39

 

$24,699

 

 

 

 

 

 

 

 

 

 

 

 

 

Connectivity & Platforms Adjusted EBITDA Margin

 

 

 

 

 

 

 

 

 

 

 

 

Residential Connectivity & Platforms

38.4%

 

(20) bps

 

38.2%

 

 

38.4%

 

(10) bps

 

38.3%

Business Services Connectivity

57.5%

 

- bps

 

57.5%

 

 

57.8%

 

- bps

 

57.8%

Total Connectivity & Platforms Adjusted EBITDA Margin

40.6%

 

(20) bps

 

40.4%

 

 

40.6%

 

(10) bps

 

40.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

September 30, 2023

 

 

Nine Months Ended

September 30, 2023

 

 

 

 

 

Effects of

 

Constant

 

 

 

 

Effects of

 

 Constant

As

 

Foreign

 

Currency

 

 

As

 

Foreign

 

Currency

(in millions)

Reported

 

Currency

 

Amounts

 

 

Reported

 

Currency

 

Amounts

Reconciliation of Residential Connectivity & Platforms Constant Currency

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Domestic broadband

$6,366

 

$—

 

$6,366

 

 

$19,086

 

$—

 

$19,086

Domestic wireless

917

 

—

 

917

 

 

2,644

 

—

 

2,644

International connectivity

1,109

 

31

 

1,141

 

 

3,009

 

77

 

3,086

Total residential connectivity

$8,393

 

$31

 

$8,424

 

 

$24,739

 

$77

 

$24,816

Video

7,154

 

47

 

7,201

 

 

21,895

 

124

 

22,018

Advertising

960

 

11

 

971

 

 

2,860

 

25

 

2,885

Other

1,444

 

10

 

1,454

 

 

4,394

 

28

 

4,422

Total Revenue

$17,951

 

$99

 

$18,050

 

 

$53,888

 

$253

 

$54,141

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Programming

$4,460

 

$28

 

$4,488

 

 

$13,638

 

$74

 

$13,712

Non-Programming

6,605

 

55

 

6,659

 

 

19,578

 

140

 

19,718

Total Operating Expenses

$11,065

 

$83

 

$11,148

 

 

$33,216

 

$214

 

$33,430

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$6,886

 

$16

 

$6,902

 

 

$20,672

 

$39

 

$20,711

Adjusted EBITDA Margin

38.4%

 

(20) bps

 

38.2%

 

 

38.4%

 

(10) bps

 

38.3%

TABLE 7

Reconciliation of Media Revenue Excluding Olympics (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

(in millions)

2024

 

2023

 

Change

 

 

2024

 

2023

 

Change

Revenue

$8,231

 

$6,029

 

36.5%

 

 

$20,926

 

$18,376

 

13.9%

Paris Olympics

1,906

 

—

 

 

 

 

1,906

 

—

 

 

Revenue excluding Olympics

$6,325

 

$6,029

 

4.9%

 

 

$19,020

 

$18,376

 

3.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Media Domestic Advertising Revenue Excluding Olympics (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

(in millions)

2024

 

2023

 

Change

 

 

2024

 

2023

 

Change

Revenue

$3,347

 

$1,913

 

74.9%

 

 

$7,363

 

$5,965

 

23.4%

Paris Olympics

1,432

 

—

 

 

 

 

1,432

 

—

 

 

Revenue excluding Olympics

$1,915

 

$1,913

 

0.1%

 

 

$5,931

 

$5,965

 

(0.6) %

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Media Domestic Distribution Revenue Excluding Olympics (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

(in millions)

2024

 

2023

 

Change

 

 

2024

 

2023

 

Change

Revenue

$3,272

 

$2,591

 

26.3%

 

 

$8,942

 

$7,916

 

13.0%

Paris Olympics

473

 

—

 

 

 

 

473

 

—

 

 

Revenue excluding Olympics

$2,798

 

$2,591

 

8.0%

 

 

$8,468

 

$7,916

 

7.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241031386583/en/

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