Comcast Corporation (NASDAQ: CMCSA) today reported results for the
quarter ended March 31, 2019.
Brian L. Roberts, Chairman and Chief Executive Officer of Comcast
Corporation, said, “Comcast is off to a terrific start in 2019,
financially, operationally and strategically. In the first quarter, we
delivered strong EBITDA and earnings per share growth, as well as robust
free cash flow. Comcast Cable had the best quarterly EBITDA growth in
over a decade, while NBCUniversal again posted favorable results. We
also continued to strengthen our leadership position in valuable
customer relationships and premium content. Now with the inclusion of
Sky, we grew customer relationships by 3.6% year-over-year, including
400,000 net additions in the first quarter, reaching over 54 million
relationships in total. Across all parts of the company, our teams are
executing at a high level and collaborating to drive growth and
innovation. I’m excited about this quarter’s results and the
opportunities ahead.”
Consolidated Financial Results |
||||||||||
1st Quarter | ||||||||||
($ in millions) | 2018 4 | 2019 | Growth | |||||||
Revenue | $22,791 | $26,859 | 17.9 | % | ||||||
Net Income Attributable to Comcast | $3,118 | $3,553 | 14.0 | % | ||||||
Adjusted EBITDA1 | $7,244 | $8,553 | 18.1 | % | ||||||
Earnings per Share2 | $0.66 | $0.77 | 16.7 | % | ||||||
Excluding Adjustments3 (see Table 5) | $0.65 | $0.76 | 16.9 | % |
For additional detail on segment revenue and expenses, customer metrics,
capital expenditures and free cash flow, please refer to the trending
schedules on Comcast’s Investor Relations website at www.cmcsa.com.
The comparability of our consolidated results was impacted by the fourth
quarter 2018 Sky transaction. Sky’s results of operations are included
in our consolidated financial statements following the acquisition date.
Consolidated Revenue for the first quarter of 2019
increased 17.9% to $26.9 billion. Consolidated Net
Income Attributable to Comcast increased 14.0% to $3.6 billion. Consolidated
Adjusted EBITDA increased 18.1% to $8.6 billion.
Earnings per Share (EPS) for the first quarter of 2019 was
$0.77, an increase of 16.7% compared to the first quarter of 2018. On an
adjusted basis, EPS increased 16.9% to $0.76 (see Table 5).
Capital Expenditures increased 6.0% to $2.1 billion in the
first quarter of 2019. Cable Communications’ capital expenditures
decreased 19.4% to $1.4 billion in the first quarter of 2019, reflecting
a lower level of spending on customer premise equipment and scalable
infrastructure. Cable capital expenditures represented 9.5% of Cable
revenue in the first quarter of 2019 compared to 12.3% in last year’s
first quarter. NBCUniversal’s capital expenditures of $453 million
increased 68.2%, reflecting continued investment at Theme Parks. Sky had
capital expenditures of $259 million, primarily reflecting investment in
customer premise equipment, including continued deployment of Sky Q.
Net Cash Provided by Operating Activities was $7.2 billion
in the first quarter of 2019. Free Cash Flow5
was $4.6 billion (see Table 4).
Dividends. During the first quarter of 2019, Comcast paid
dividends totaling $869 million.
Consolidated Pro Forma Financial Results
Pro forma results are presented as if the Sky transaction occurred on
January 1, 2017. The pro forma amounts are primarily based on historical
results of operations, adjusted for the allocation of purchase price and
excluding costs directly related to the transaction. These amounts are
not necessarily indicative of what our results would have been had we
operated Sky since January 1, 2017 (see Table 7 for reconciliations of
pro forma financial data).
Consolidated Pro Forma Revenue for the first quarter of
2019 decreased 3.3% to $26.9 billion. Consolidated Pro
Forma Adjusted EBITDA increased 6.4% to $8.6 billion.
Cable Communications |
||||||||||||
1st Quarter | ||||||||||||
($ in millions) | 2018 6 | 2019 | Growth | |||||||||
Cable Communications Revenue | ||||||||||||
High-Speed Internet | $4,157 | $4,577 | 10.1 | % | ||||||||
Video | 5,659 | 5,628 | (0.5 | %) | ||||||||
Voice | 1,006 | 990 | (1.6 | %) | ||||||||
Wireless | 185 | 225 | 21.4 | % | ||||||||
Business Services | 1,726 | 1,891 | 9.5 | % | ||||||||
Advertising | 582 | 556 | (4.5 | %) | ||||||||
Other | 388 | 413 | 7.0 | % | ||||||||
Cable Communications Revenue | $13,703 | $14,280 | 4.2 | % | ||||||||
Cable Communications Adjusted EBITDA | $5,217 | $5,728 | 9.8 | % | ||||||||
Adjusted EBITDA Margin | 38.1 | % | 40.1 | % | ||||||||
Cable Communications Capital Expenditures | $1,691 | $1,363 | (19.4 | %) | ||||||||
Percent of Cable Communications Revenue | 12.3 | % | 9.5 | % | ||||||||
Beginning in the first quarter of 2019, Cable Communications results
include our wireless phone service and certain other business
development initiatives which were previously presented in Corporate and
Other. Prior periods have been adjusted to reflect this presentation.
Revenue for Cable Communications increased 4.2% to $14.3
billion in the first quarter of 2019, driven primarily by increases in
high-speed internet and business services revenue. High-speed internet
revenue increased 10.1%, driven by an increase in the number of
residential high-speed internet customers and rate adjustments. Business
services revenue increased 9.5%, due to an increase in the number of
customers receiving our services and rate adjustments. Wireless revenue
increased 21.4%, reflecting an increase in the number of customer lines,
partially offset by lower device sales as more customers bring their own
device. Other revenue increased 7.0%, primarily driven by increases in
revenue from our X1 licensing agreements and our security and automation
services. Video revenue decreased 0.5%, due to a decline in the number
of residential customers, partially offset by rate adjustments.
Advertising revenue decreased 4.5%, primarily due to a decline in
political advertising revenue. Voice revenue decreased 1.6%, reflecting
a decrease in the number of residential voice customers.
Total Customer Relationships increased by 300,000 to 30.7
million in the first quarter of 2019. Residential
customer relationships increased by 276,000 and business customer
relationships increased by 25,000. At the end of the first quarter,
67.3% of our residential customers received at least two Xfinity
products. Total high-speed internet customer net additions were 375,000,
total video customer net losses were 121,000, total voice customer net
losses were 53,000 and total security and automation customer net
additions were 17,000. In addition, Cable Communications added 170,000
wireless lines in the quarter.
Net Additions | ||||||||||||||
(in thousands) | 1Q18 6 | 1Q19 | 1Q18 6 | 1Q19 | ||||||||||
Customer Relationships | ||||||||||||||
Residential Customer Relationships | 27,436 | 28,385 | 252 | 276 | ||||||||||
Business Services Customer Relationships | 2,208 | 2,327 | 29 | 25 | ||||||||||
Total Customer Relationships | 29,645 | 30,712 | 281 | 300 | ||||||||||
Residential Customer Relationships Mix | ||||||||||||||
One Product Residential Customers | 8,390 | 9,295 | 215 | 280 | ||||||||||
Two Product Residential Customers | 9,060 | 9,009 | 42 | 17 | ||||||||||
Three or More Product Residential Customers | 9,987 | 10,081 | (6 | ) | (22 | ) | ||||||||
Residential High-Speed Internet Customers | 24,214 | 25,449 | 351 | 352 | ||||||||||
Business Services High-Speed Internet Customers | 2,034 | 2,148 | 29 | 23 | ||||||||||
Total High-Speed Internet Customers | 26,249 | 27,598 | 379 | 375 | ||||||||||
Residential Video Customers | 21,210 | 20,852 | (93 | ) | (107 | ) | ||||||||
Business Services Video Customers | 1,051 | 1,014 | (3 | ) | (14 | ) | ||||||||
Total Video Customers | 22,261 | 21,865 | (96 | ) | (121 | ) | ||||||||
Residential Voice Customers | 10,245 | 10,089 | (70 | ) | (63 | ) | ||||||||
Business Services Voice Customers | 1,253 | 1,307 | 16 | 10 | ||||||||||
Total Voice Customers | 11,498 | 11,396 | (54 | ) | (53 | ) | ||||||||
Total Security and Automation Customers | 1,176 | 1,333 | 46 | 17 | ||||||||||
Total Wireless Lines | 577 | 1,405 | 196 | 170 | ||||||||||
Adjusted EBITDA for Cable Communications increased 9.8% to
$5.7 billion in the first quarter of 2019, reflecting higher revenue,
partially offset by a 0.8% increase in operating expenses. Video
programming costs increased 2.8%, primarily reflecting higher sports
programming costs and retransmission consent fees. Non-programming
expenses decreased 0.5%, reflecting decreases in other operating costs,
customer service expenses, franchise and regulatory fees and
advertising, marketing and promotion costs, partially offset by an
increase in technical and product support expenses. This quarter’s
Adjusted EBITDA per customer relationship increased 6.0%, and Adjusted
EBITDA margin was 40.1%, compared to 38.1% in the first quarter of 2018.
Cable Communications results include a loss of $103 million from our
wireless business, compared to a loss of $189 million in the prior
period.
NBCUniversal |
||||||||||||
1st Quarter | ||||||||||||
($ in millions) | 2018 6 | 2019 | Growth | |||||||||
NBCUniversal Revenue | ||||||||||||
Cable Networks | $3,157 | $2,868 | (9.2 | %) | ||||||||
Excluding Olympics (see Table 6) | 2,779 | 2,868 | 3.2 | % | ||||||||
Broadcast Television | 3,497 | 2,467 | (29.4 | %) | ||||||||
Excluding Olympics and Super Bowl (see Table 6) | 2,304 | 2,467 | 7.1 | % | ||||||||
Filmed Entertainment | 1,647 | 1,768 | 7.4 | % | ||||||||
Theme Parks | 1,281 | 1,276 | (0.4 | %) | ||||||||
Headquarters, other and eliminations | (85 | ) | (66 | ) | NM | |||||||
NBCUniversal Revenue | $9,497 | $8,313 | (12.5 | %) | ||||||||
NBCUniversal Adjusted EBITDA | ||||||||||||
Cable Networks | $1,254 | $1,262 | 0.7 | % | ||||||||
Broadcast Television | 507 | 387 | (23.7 | %) | ||||||||
Filmed Entertainment | 203 | 364 | 78.7 | % | ||||||||
Theme Parks | 495 | 498 | 0.5 | % | ||||||||
Headquarters, other and eliminations | (188 | ) | (174 | ) | NM | |||||||
NBCUniversal Adjusted EBITDA | $2,271 | $2,337 | 2.9 | % | ||||||||
NM=comparison not meaningful. | ||||||||||||
Revenue for NBCUniversal in the first quarter of 2019
decreased 12.5% to $8.3 billion, compared to last year’s results, which
included an incremental $1.6 billion of revenue generated by the
broadcasts of the 2018 PyeongChang Olympics and the NFL’s Super Bowl LII
at our TV businesses. Adjusted EBITDA increased 2.9% to
$2.3 billion, primarily reflecting an increase at Filmed Entertainment,
partially offset by a decline at Broadcast Television due the broadcasts
of the PyeongChang Olympics and the NFL’s Super Bowl LII in the first
quarter of 2018.
Cable Networks
Cable Networks revenue decreased 9.2% to $2.9 billion in the first
quarter of 2019, primarily reflecting decreases in distribution and
advertising revenue. Excluding $378 million of revenue generated by the
broadcast of the PyeongChang Olympics in the first quarter of 2018,
revenue increased 3.2% (see Table 6). Distribution revenue decreased
6.8%, due to the broadcast of the PyeongChang Olympics in the first
quarter of 2018, partially offset by contractual rate increases and the
timing of contract renewals. Advertising revenue decreased 12.8%, due to
revenue associated with the broadcast of the PyeongChang Olympics in the
first quarter of 2018 and audience ratings declines, partially offset by
higher pricing. Content licensing and other revenue decreased 12.0% due
to the timing of content provided under licensing agreements. Adjusted
EBITDA increased 0.7% to $1.3 billion in the first quarter of 2019,
reflecting lower revenue, more than offset by a decrease in operating
costs and expenses, including programming and production costs, due to
the broadcast of the PyeongChang Olympics in the first quarter of 2018.
Broadcast Television
Broadcast Television revenue decreased 29.4% to $2.5 billion in the
first quarter of 2019, primarily reflecting lower advertising revenue.
Excluding $770 million of revenue generated by the broadcast of the
PyeongChang Olympics and $423 million of revenue generated by the
broadcast of the NFL’s Super Bowl LII in the first quarter of 2018,
revenue increased 7.1% (see Table 6). Advertising revenue decreased
44.3%, due to revenue associated with the broadcasts of the PyeongChang
Olympics and the NFL’s Super Bowl LII in the first quarter of 2018 and
audience ratings declines, partially offset by higher pricing.
Distribution and other revenue decreased 3.2%, due to the broadcast of
the PyeongChang Olympics in the first quarter of 2018, partially offset
by higher retransmission consent fees. Content licensing revenue
increased 7.2% due to the timing of content provided under licensing
agreements. Adjusted EBITDA decreased 23.7% to $387 million in the first
quarter of 2019, reflecting lower revenue, partially offset by a
decrease in programming and production costs, due to the broadcasts of
the PyeongChang Olympics and the NFL’s Super Bowl LII in the first
quarter of 2018.
Filmed Entertainment
Filmed Entertainment revenue increased 7.4% to $1.8 billion in the first
quarter of 2019, reflecting higher content licensing, theatrical and
home entertainment revenue. Content licensing revenue increased 11.5%,
driven by the timing of when content was made available under licensing
agreements. Theatrical revenue increased 5.1%, due to the performance of
films in this year’s first quarter, including How to Train Your
Dragon: The Hidden World and Us, partially offset by the
performance of Fifty Shades Freed in the first quarter of 2018.
Home Entertainment revenue increased 7.4%, primarily reflecting the
success of Dr. Seuss’ The Grinch. Adjusted EBITDA increased by
78.7% to $364 million in the first quarter of 2019, reflecting higher
revenue as well as lower operating costs.
Theme Parks
Theme Parks revenue of $1.3 billion in the first quarter of 2019 was
relatively consistent with the prior year period and, in part, reflects
the timing of spring holidays, which benefited the same period last
year. Adjusted EBITDA of $498 million was consistent with the prior year
period.
Headquarters, Other and Eliminations
NBCUniversal Headquarters, Other and Eliminations include overhead and
eliminations among the NBCUniversal businesses. For the quarter ended
March 31, 2019, NBCUniversal Headquarters, Other and Eliminations
Adjusted EBITDA loss was $174 million, compared to a loss of $188
million in the first quarter of 2018.
Sky
Pro forma results are presented as if the Sky transaction occurred on
January 1, 2017. The pro forma amounts are primarily based on historical
results of operations, adjusted for the allocation of purchase price and
excluding costs directly related to the transaction. These amounts are
not necessarily indicative of what our results would have been had we
operated Sky since January 1, 2017 (see Table 7 for reconciliations of
pro forma financial data).
1st Quarter | ||||||||||||||||
($ in millions) (pro forma) | 2018 | 2019 | Growth |
Constant Currency Growth7 |
||||||||||||
Sky Revenue | ||||||||||||||||
Direct-to-Consumer | $4,132 | $3,834 | (7.2 | %) | (0.4 | %) | ||||||||||
Content | 286 | 370 | 29.5 | % | 38.0 | % | ||||||||||
Advertising | 631 | 593 | (6.0 | %) | 0.7 | % | ||||||||||
Sky Revenue | $5,049 | $4,797 | (5.0 | %) | 1.9 | % | ||||||||||
Sky Operating Costs and Expenses | $4,250 | $4,134 | (2.7 | %) | 4.4 | % | ||||||||||
Sky Adjusted EBITDA | $799 | $663 | (17.0 | %) | (11.3 | %) | ||||||||||
Adjusted EBITDA Margin | 15.8 | % | 13.8 | % | ||||||||||||
Pro Forma Revenue for Sky decreased 5.0% to $4.8 billion
in the first quarter of 2019. Excluding the impact of currency, revenue
increased 1.9%, primarily driven by higher content revenue, while
advertising and direct-to-consumer revenues were relatively consistent
with the prior year period. Content revenue increased 38.0% to $370
million, reflecting the wholesaling of sports programming, including
exclusive sports rights recently acquired in Italy and Germany,
increased penetration of premium sports and movie channels on third
party pay TV networks in the UK and monetization of our slate of
original programming.
Pro Forma Total Customer Relationships increased by
112,000 to 23.7 million in the first quarter of 2019.
Customers | Net Additions | |||||||||||
(in thousands) (pro forma) | 1Q18 | 1Q19 | 1Q18 | 1Q19 | ||||||||
Total Customer Relationships | 22,903 | 23,712 | 38 | 112 | ||||||||
Pro Forma Adjusted EBITDA for Sky decreased 17.0% to $663
million in the first quarter of 2019. Excluding the impact of currency,
Adjusted EBITDA decreased 11.3%, reflecting a 4.4% increase in operating
expenses, partially offset by higher revenues. The higher expenses were
primarily driven by new contracts for Serie A and UEFA Champions League
soccer rights in Italy and Germany, partially offset by lower other
operating costs.
Corporate, Other and Eliminations |
||
Corporate, Other and Eliminations primarily relate to corporate operations and Comcast Spectacor, as well as eliminations among Comcast’s businesses. For the quarter ended March 31, 2019, the Corporate, Other and Eliminations Adjusted EBITDA6 loss was $175 million, compared to a loss of $244 million in the first quarter of 2018, which reflected an increase in eliminations associated with the 2018 PyeongChang Olympics. |
||
Notes: |
||
1 |
We define Adjusted EBITDA as net income attributable to Comcast |
|
2 |
All earnings per share amounts are presented on a diluted basis. |
|
3 |
In first quarter 2019, we changed our presentation of Adjusted EPS |
|
4 |
Consolidated financial results include Sky results for periods |
|
5 |
We define Free Cash Flow as net cash provided by operating |
|
6 |
Beginning in the first quarter of 2019, Comcast Cable’s wireless |
|
7 |
Sky constant currency growth rates are calculated by comparing the |
|
All percentages are calculated on whole numbers. Minor differences |
||
Conference Call and Other Information
Comcast Corporation will host a conference call with the financial
community today, April 25, 2019 at 8:30 a.m. Eastern Time (ET). The
conference call and related materials will be broadcast live and posted
on its Investor Relations website at www.cmcsa.com.
Those parties interested in participating via telephone should dial
(800) 263-8495 with the conference ID number 8973128. A replay of the
call will be available starting at 12:00 p.m. ET on April 25, 2019, on
the Investor Relations website or by telephone. To access the telephone
replay, which will be available until Thursday, May 2, 2019 at midnight
ET, please dial (855) 859-2056 and enter the conference ID number
8973128.
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 blog, www.corporate.comcast.com/comcast-voices.
To automatically receive Comcast financial news by email, please visit www.cmcsa.com
and subscribe to email alerts.
Visit Comcast Corporation’s Investor Relations website at www.cmcsa.com
to access a copy of this press release.
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements. Readers are
cautioned that such forward-looking statements 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. Readers are directed to Comcast’s periodic and other reports
filed with the Securities and Exchange Commission (SEC) for a
description of such risks and uncertainties. We undertake no obligation
to update any forward-looking statements.
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 with three primary businesses: Comcast Cable, NBCUniversal, and
Sky. Comcast Cable is one of the United States’ largest high-speed
internet, video, and phone providers to residential customers under the
Xfinity brand, and also provides these services to businesses. It also
provides wireless and security and automation services to residential
customers under the Xfinity brand. NBCUniversal is global and operates
news, entertainment and sports cable networks, the NBC and Telemundo
broadcast networks, television production operations, television station
groups, Universal Pictures, and Universal Parks and Resorts. Sky is one
of Europe’s leading media and entertainment companies, connecting
customers to a broad range of video content through its pay television
services. It also provides communications services, including
residential high-speed internet, phone, and wireless services. Sky
operates the Sky News broadcast network and sports and entertainment
networks, produces original content, and has exclusive content rights.
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, | |||||||
2018 | 2019 | |||||||
Revenue | $22,791 | $26,859 | ||||||
Programming and production | 7,429 | 8,569 | ||||||
Other operating and administrative | 6,514 | 7,900 | ||||||
Advertising, marketing and promotion | 1,604 | 1,888 | ||||||
Adjustments(1) | — | (51 | ) | |||||
15,547 | 18,306 | |||||||
Adjusted EBITDA(1) | 7,244 | 8,553 | ||||||
Adjustments(1) | — | 51 | ||||||
Depreciation expense | 2,011 | 2,240 | ||||||
Amortization expense | 588 | 1,080 | ||||||
2,599 | 3,371 | |||||||
Operating income | 4,645 | 5,182 | ||||||
Interest expense | (777 | ) | (1,150 | ) | ||||
Investment and other income (loss), net | ||||||||
Equity in net income (losses) of investees, net | (49 | ) | 262 | |||||
Realized and unrealized gains (losses) on equity securities, net | 28 | 214 | ||||||
Other income (loss), net | 147 | 200 | ||||||
126 | 676 | |||||||
Income before income taxes | 3,994 | 4,708 | ||||||
Income tax expense | (818 | ) | (1,076 | ) | ||||
Net income | 3,176 | 3,632 | ||||||
Less: Net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock |
58 | 79 | ||||||
Net income attributable to Comcast Corporation | $3,118 | $3,553 | ||||||
Diluted earnings per common share attributable to Comcast Corporation shareholders |
$0.66 | $0.77 | ||||||
Diluted weighted-average number of common shares | 4,705 | 4,594 | ||||||
(1) See Table 4 for a reconciliation of non-GAAP financial |
||||||||
TABLE 2 Consolidated Statement of Cash Flows (Unaudited) |
||||||||
Three Months Ended | ||||||||
(in millions) | March 31, | |||||||
2018 | 2019 | |||||||
OPERATING ACTIVITIES | ||||||||
Net income | $3,176 | $3,632 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization | 2,599 | 3,320 | ||||||
Share-based compensation | 199 | 245 | ||||||
Noncash interest expense (income), net | 75 | 77 | ||||||
Net (gain) loss on investment activity and other | (74 | ) | (498 | ) | ||||
Deferred income taxes | 389 | 271 | ||||||
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: |
||||||||
Current and noncurrent receivables, net | 85 | 449 | ||||||
Film and television costs, net | (45 | ) | 559 | |||||
Accounts payable and accrued expenses related to trade creditors | 200 | (574 | ) | |||||
Other operating assets and liabilities | (1,130 | ) | (250 | ) | ||||
Net cash provided by operating activities | 5,474 | 7,231 | ||||||
INVESTING ACTIVITIES | ||||||||
Capital expenditures | (1,973 | ) | (2,092 | ) | ||||
Cash paid for intangible assets | (419 | ) | (547 | ) | ||||
Acquisitions and construction of real estate properties | (59 | ) | (16 | ) | ||||
Construction of Universal Beijing Resort | (42 | ) | (220 | ) | ||||
Acquisitions, net of cash acquired | (89 | ) | (48 | ) | ||||
Proceeds from sales of investments | 81 | 37 | ||||||
Purchases of investments | (220 | ) | (439 | ) | ||||
Other | 429 | 99 | ||||||
Net cash provided by (used in) investing activities | (2,292 | ) | (3,226 | ) | ||||
FINANCING ACTIVITIES | ||||||||
Proceeds from (repayments of) short-term borrowings, net | (902 | ) | (1,288 | ) | ||||
Proceeds from borrowings | 4,043 | 222 | ||||||
Repurchases and repayments of debt | (1,265 | ) | (2,084 | ) | ||||
Repurchases of common stock under repurchase program and employee plans |
(1,729 | ) | (247 | ) | ||||
Dividends paid | (738 | ) | (869 | ) | ||||
Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock |
(79 | ) | (85 | ) | ||||
Other | 94 | 26 | ||||||
Net cash provided by (used in) financing activities | (576 | ) | (4,325 | ) | ||||
Impact of foreign currency on cash, cash equivalents and restricted cash |
— | 8 | ||||||
Increase (decrease) in cash, cash equivalents and restricted cash | 2,606 | (312 | ) | |||||
Cash, cash equivalents and restricted cash, beginning of period | 3,571 | 3,909 | ||||||
Cash, cash equivalents and restricted cash, end of period | $6,177 | $3,597 | ||||||
TABLE 3 |
||||||
(in millions) | December 31, | March 31, | ||||
2018 | 2019 | |||||
ASSETS | ||||||
Current Assets | ||||||
Cash and cash equivalents | $3,814 | $3,498 | ||||
Receivables, net | 11,104 | 10,736 | ||||
Programming rights | 3,746 | 2,942 | ||||
Other current assets | 3,184 | 3,097 | ||||
Total current assets | 21,848 | 20,273 | ||||
Film and television costs | 7,837 | 8,051 | ||||
Investments | 7,883 | 9,159 | ||||
Property and equipment, net | 44,437 | 45,721 | ||||
Franchise rights | 59,365 | 59,365 | ||||
Goodwill | 66,154 | 68,073 | ||||
Other intangible assets, net | 38,358 | 36,902 | ||||
Other noncurrent assets, net | 5,802 | 8,645 | ||||
$251,684 | $256,189 | |||||
LIABILITIES AND EQUITY | ||||||
Current Liabilities | ||||||
Accounts payable and accrued expenses related to trade creditors | $8,494 | $10,232 | ||||
Accrued participations and residuals | 1,808 | 1,739 | ||||
Deferred revenue | 2,182 | 2,485 | ||||
Accrued expenses and other current liabilities | 10,721 | 8,832 | ||||
Current portion of long-term debt | 4,398 | 4,629 | ||||
Total current liabilities | 27,603 | 27,917 | ||||
Long-term debt, less current portion | 107,345 | 104,464 | ||||
Deferred income taxes | 27,589 | 27,819 | ||||
Other noncurrent liabilities | 15,329 | 18,811 | ||||
Redeemable noncontrolling interests and redeemable subsidiary preferred stock |
1,316 | 1,316 | ||||
Equity | ||||||
Comcast Corporation shareholders’ equity | 71,613 | 74,959 | ||||
Noncontrolling interests | 889 | 903 | ||||
Total equity | 72,502 | 75,862 | ||||
$251,684 | $256,189 | |||||
TABLE 4 | ||||||||
Reconciliation from Net Income Attributable to Comcast Corporation to Adjusted EBITDA (Unaudited) |
||||||||
Three Months Ended March 31, |
||||||||
(in millions) | 2018 | 2019 | ||||||
Net income attributable to Comcast Corporation | $3,118 | $3,553 | ||||||
Net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock |
58 | 79 | ||||||
Income tax expense | 818 | 1,076 | ||||||
Interest expense | 777 | 1,150 | ||||||
Investment and other (income) loss, net (1) | (126 | ) | (676 | ) | ||||
Depreciation and amortization expense | 2,599 | 3,320 | ||||||
Adjustments (2) | — | 51 | ||||||
Adjusted EBITDA | $7,244 | $8,553 | ||||||
Reconciliation from Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited) |
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Three Months Ended March 31, |
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(in millions) | 2018 | 2019 | ||||||
Net cash provided by operating activities | $5,474 | $7,231 | ||||||
Capital expenditures | (1,973 | ) | (2,092 | ) | ||||
Cash paid for capitalized software and other intangible assets | (419 | ) | (547 | ) | ||||
Total Free Cash Flow | $3,082 | $4,592 | ||||||
Alternate Presentation of Free Cash Flow (Unaudited) | ||||||||
Three Months Ended March 31, |
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(in millions) | 2018 | 2019 | ||||||
Adjusted EBITDA | $7,244 | $8,553 | ||||||
Capital expenditures | (1,973 | ) | (2,092 | ) | ||||
Cash paid for capitalized software and other intangible assets | (419 | ) | (547 | ) | ||||
Cash interest expense | (854 | ) | (970 | ) | ||||
Cash taxes | (162 | ) | (189 | ) | ||||
Changes in operating assets and liabilities | (1,005 | ) | (535 | ) | ||||
Noncash share-based compensation | 199 | 245 | ||||||
Other (3) | 52 | 127 | ||||||
Total Free Cash Flow | $3,082 | $4,592 | ||||||
(1) |
Investment and other (income) loss, net, includes equity in net (income) losses of investees, net, realized and unrealized (gains) losses on equity securities, net, and other (income) loss, net. |
|
(2) |
First quarter 2019 Adjusted EBITDA excludes $51 million of other operating and administrative expense related to the Sky transaction. |
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(3) |
Other for this presentation includes a decrease of $51 million of costs related to the Sky transaction in first quarter 2019, as these are not included in Adjusted EBITDA. |
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Note: Minor differences may exist due to rounding. | ||
TABLE 5 |
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Three Months Ended |
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2018 | 2019 | |||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||||
$ | EPS | $ | EPS | |||||||||||||||||
Net income attributable to Comcast Corporation | $ | 3,118 | $ | 0.66 | $ | 3,553 | $ | 0.77 | ||||||||||||
Growth % | 14.0 | % | 16.7 | % | ||||||||||||||||
Fair value investments (1) | (47 | ) | (0.01 | ) | (438 | ) | (0.09 | ) | ||||||||||||
Amortization of acquisition-related intangible assets (2) | 152 | 0.03 | 400 | 0.09 | ||||||||||||||||
Income tax adjustments (3) | (128 | ) | (0.02 | ) | — | — | ||||||||||||||
Gains related to businesses and investments(4) | (48 | ) | (0.01 | ) | (118 | ) | (0.03 | ) | ||||||||||||
Costs related to Sky transaction (5) | — | — | 41 | 0.01 | ||||||||||||||||
Purchase accounting adjustments (6) | — | — | 39 | 0.01 | ||||||||||||||||
Net income attributable to Comcast Corporation (excluding adjustments) |
$ | 3,047 | $ | 0.65 | $ | 3,477 | $ | 0.76 | ||||||||||||
Growth % | 14.1 | % | 16.9 | % | ||||||||||||||||
(1) |
Fair value 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, net, for our investment in Atairos. |
Three Months Ended |
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2018 | 2019 | |||||||||||||||||
Realized and unrealized (gains) losses on equity securities, net | ($28 | ) | ($214 | ) | ||||||||||||||
Equity in net (income) losses, net for investment in Atairos | (35 | ) | (374 | ) | ||||||||||||||
Fair value investments before income taxes | (63 | ) | (588 | ) | ||||||||||||||
Fair value investments, net of tax | ($47 | ) | ($438 | ) | ||||||||||||||
(2) |
Acquisition-related intangible assets include those recognized as a result of the application of Accounting Standards Codification Topic 805, Business Combinations (such as customer relationships). |
Three Months Ended |
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2018 | 2019 | ||||||||||||
Amortization of acquisition-related intangible assets before income taxes |
$ | 205 | $ | 504 | |||||||||
Amortization of acquisition-related intangible assets, net of tax | $ | 152 | $ | 400 | |||||||||
(3) |
1st quarter 2018 net income attributable to Comcast Corporation includes a $128 million net income tax benefit as a result of federal tax legislation enacted in 2018. |
|
(4) |
1st quarter 2019 net income attributable to Comcast Corporation includes $159 million of other income, $118 million net of tax, resulting from the recognition of a previously deferred gain related to our investment in Hulu. 1st quarter 2018 net income attributable to Comcast Corporation includes $64 million of other income, $48 million net of tax, resulting from a gain on the sale of our investment in The Weather Channel. |
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(5) |
1st quarter 2019 net income attributable to Comcast Corporation includes $51 million of operating costs and expenses, $41 million net of tax, related to the Sky transaction, primarily relating to the replacement of share-based compensation awards. |
|
(6) |
1st quarter 2019 net income attributable to Comcast Corporation includes $53 million of depreciation and amortization expense, $39 million net of tax, related to the 4th quarter 2018 as a result of adjustments to the purchase price allocation of Sky, primarily related to intangible assets and property and equipment. |
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Note: Minor differences may exist due to rounding. | ||
TABLE 6
Reconciliation of Cable Networks Revenue Excluding 2018 |
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Three Months Ended |
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(in millions) | 2018 | 2019 | Growth % | |||||||
Revenue | $3,157 | $2,868 | (9.2%) | |||||||
2018 Olympics | (378 | ) | — | |||||||
Revenue excluding 2018 Olympics | $2,779 | $2,868 | 3.2% | |||||||
Reconciliation of Broadcast Television Revenue Excluding 2018 Olympics and 2018 Super Bowl (Unaudited) |
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Three Months Ended |
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(in millions) | 2018 | 2019 | Growth % | |||||||
Revenue | $3,497 | $2,467 | (29.4%) | |||||||
2018 Olympics | (770 | ) | — | |||||||
2018 Super Bowl | (423 | ) | — | |||||||
Revenue excluding 2018 Olympics and 2018 Super Bowl | $2,304 | $2,467 | 7.1% | |||||||
Note: Minor differences may exist due to rounding. |
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TABLE 7
Reconciliation of As Reported to Pro Forma(1) |
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Sky | Comcast | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Pro Forma | Pro Forma | Pro Forma | Pro Forma | ||||||||||||||||||
As Reported | Adjustments(1) | Sky | As Reported | Adjustments(1) | Comcast | ||||||||||||||||
Three Months Ended March 31, 2018 |
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Revenue | $— | $5,049 | $5,049 | $22,791 | $4,971 | $27,762 | |||||||||||||||
Operating costs and expenses and other | — | 4,250 | 4,250 | 15,547 | 4,176 | 19,723 | |||||||||||||||
Adjusted EBITDA | $— | $799 | $799 | $7,244 | $795 | $8,039 | |||||||||||||||
Three Months Ended March 31, 2019 |
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Revenue | $4,797 | $— | $4,797 | $26,859 | $— | $26,859 | |||||||||||||||
Operating costs and expenses and other | 4,134 | — | 4,134 | 18,306 | — | 18,306 | |||||||||||||||
Adjusted EBITDA | $663 | $— | $663 | $8,553 | $— | $8,553 | |||||||||||||||
Growth Rates |
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Revenue | NM | (5.0 | )% | 17.9 | % | (3.3 | )% | ||||||||||||||
Operating costs and expenses and other | NM | (2.7 | )% | 17.7 | % | (7.2 | )% | ||||||||||||||
Adjusted EBITDA | NM | (17.0 | )% | 18.1 | % | 6.4 | % | ||||||||||||||
NM=comparison not meaningful. | |||||||||||||||||||||
(1) |
Pro forma information is presented as if the Sky transaction occurred January 1, 2017. Our pro forma information is primarily based on historical results of operations, adjusted for the effects of acquisition accounting and the elimination of costs and expenses directly attributable to the transaction, but does not include adjustments for costs related to integration activities, cost savings or synergies that have been or may be achieved by the combined businesses. Our pro forma information is not necessarily indicative of future results or what our results would have been had we operated Sky since January 1, 2017. |
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TABLE 8 |
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Three Months Ended March 31, |
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(in millions) |
2018(1) |
2019 | Growth % | ||||||||
Direct-to-Consumer | $3,851 | $3,834 | (0.4 | %) | |||||||
Content | 268 | 370 | 38.0 | % | |||||||
Advertising | 589 | 593 | 0.7 | % | |||||||
Revenue | $4,708 | $4,797 | 1.9 | % | |||||||
Operating costs and expenses | $3,961 | $4,134 | 4.4 | % | |||||||
Adjusted EBITDA | $747 | $663 | (11.3 | )% | |||||||
(1) |
2018 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. |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20190425005462/en/