Consolidated 2nd Quarter 2017 Highlights:
- Consolidated Revenue Increased 9.8%;
Net Income Attributable to Comcast Increased 23.9%; Adjusted EBITDA
Increased 10.0%
- Net Cash Provided by Operating
Activities was $5.2 Billion; Free Cash Flow was $2.2 Billion
- Earnings per Share Increased 26.8% to
$0.52
- Dividends Paid Totaled $747 Million and
Share Repurchases were $1.4 Billion
Cable Communications 2nd Quarter 2017 Highlights:
- Cable Communications Revenue Increased
5.5% and Adjusted EBITDA Increased 5.4%
- Customer Relationships Increased by
114,000; Total Revenue per Customer Relationship Increased
2.2%
- High-Speed Internet Residential Revenue
Increased 9.2%; Total Customers Increased by 175,000
- Video Residential Revenue Increased
3.9% and 55% of Residential Video Customers Now Have X1; Total
Customer Net Losses were 34,000
- Business Services Revenue Increased
12.6%, Over $6.0 Billion in Annualized Revenue
NBCUniversal 2nd Quarter 2017 Highlights:
- NBCUniversal Revenue Increased 17.3%
and Adjusted EBITDA Increased 22.6%
- Theme Parks Revenue Increased 15.6% and
Adjusted EBITDA Increased 17.3%
- Filmed Entertainment Revenue Increased
59.6% and Adjusted EBITDA Increased $229 Million to $285 Million,
Driven by Strong Box Office Performance and Home Entertainment
- Cable Networks and Broadcast Television
Adjusted EBITDA Increased 11.7% and 5.5%, Respectively, Driven by
Increases in Affiliate and Retransmission Revenue
- NBC Remains Ranked #1 Among Adults
18-49
Comcast Corporation (NASDAQ: CMCSA) today reported results for
the quarter ended June 30, 2017.
Brian L. Roberts, Chairman and Chief Executive Officer of
Comcast Corporation, said, “We delivered terrific results during
the second quarter, highlighted by 10.0% growth in Adjusted EBITDA,
which continued our strong progress in 2017. Thanks to broad-based
momentum across our businesses, our first half Adjusted EBITDA
growth is the fastest in six years. NBCUniversal continued to
deliver outstanding performance, with 17.3% revenue growth and
22.6% Adjusted EBITDA growth. Driving these tremendous results
were the box office success of Fate of the Furious, continued
increases in affiliate and retransmission revenues at our TV
businesses, and impressive growth at our Theme Parks. At Cable
Communications, we generated strong Adjusted EBITDA growth and
added 114,000 net new customer relationships, demonstrating our
disciplined approach to driving profitability and customer
metrics. We launched our fantastic new xFi experience for
in-home broadband during the quarter, the latest example of our
culture of innovation and continued focus on developing
differentiated products and services for our customers. Our teams
continue to execute incredibly well and I am excited about the
opportunities ahead for Comcast NBCUniversal.”
Consolidated Financial Results
2nd Quarter Year to Date ($ in millions) 2016
2017 Growth 2016 2017 Growth
Revenue $19,269 $21,165 9.8 % $38,059
$41,628 9.4 % Net Income Attributable to Comcast
$2,028 $2,513 23.9 % $4,162
$5,079 22.0 % Adjusted EBITDA1 $6,455 $7,099
10.0 % $12,822 $14,131 10.2 % Earnings
per Share2 $0.41 $0.52 26.8 % $0.85 $1.05
23.5 % Excluding Adjustments (see Table 5) — — — $0.83 $1.05
26.5 %
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.
Consolidated Revenue for the second quarter of 2017
increased 9.8% to $21.2 billion. Consolidated Net Income
Attributable to Comcast increased 23.9% to $2.5 billion.
Consolidated Adjusted EBITDA increased 10.0% to $7.1
billion.
For the six months ended June 30, 2017, consolidated
revenue increased 9.4% to $41.6 billion compared to 2016.
Consolidated net income attributable to Comcast increased 22.0% to
$5.1 billion. Consolidated Adjusted EBITDA increased 10.2% to $14.1
billion.
Earnings per Share (EPS) for the second quarter of 2017
was $0.52, a 26.8% increase compared to the second quarter of
2016.
For the six months ended June 30, 2017, EPS was $1.05, a
23.5% increase compared to the prior year. On an adjusted basis,
EPS increased 26.5% (see Table 5).
Capital Expenditures increased 2.5% to $2.3 billion in
the second quarter of 2017. Cable Communications’ capital
expenditures increased 4.0% to $2.0 billion in the second quarter
of 2017, reflecting a higher level of investment in scalable
infrastructure to increase network capacity and increased
investment in line extensions, partially offset by a decrease in
spending on customer premise equipment. Cable capital expenditures
represented 14.9% of Cable revenue in the second quarter of 2017
compared to 15.1% in last year’s second quarter. NBCUniversal’s
capital expenditures of $338 million decreased 6.1%, reflecting
continued investment at Theme Parks more than offset by the timing
of real estate and infrastructure spending.
For the six months ended June 30, 2017, capital
expenditures increased 6.0% to $4.4 billion compared to 2016. Cable
Communications' capital expenditures increased 8.1% to $3.7 billion
and represented 14.4% of Cable revenue compared to 14.0% in 2016.
NBCUniversal's capital expenditures of $623 million decreased 4.8%
for the first six months of 2017.
Net Cash Provided by Operating Activities was $5.2
billion in the second quarter of 2017. Free Cash
Flow3 was $2.2 billion (see Table 4).
For the six months ended June 30, 2017, net cash provided
by operating activities was $10.8 billion. Free cash flow was $5.3
billion (see Table 4).
Dividends and Share Repurchases. During the second
quarter of 2017, Comcast paid dividends totaling $747 million and
repurchased 35.2 million of its common shares for $1.4 billion. In
the first six months of 2017, Comcast has repurchased 55.6 million
of its common shares for $2.1 billion. As of June 30, 2017,
Comcast had $9.9 billion available under its share repurchase
authorization.
Cable Communications
2nd Quarter Year to Date ($ in millions) 2016
4 2017 Growth 2016 4 2017 Growth
Cable Communications Revenue
Video
$5,581 $5,797 3.9 % $11,119
$11,571 4.1 % High-Speed Internet 3,369 3,679
9.2 % 6,644 7,285 9.6 % Voice
893 856 (4.1 %) 1,789 1,719 (3.9
%) Business Services 1,360 1,531 12.6 %
2,671 3,021 13.1 % Advertising 586 574
(2.1 %) 1,132 1,086 (4.1 %) Other
655 685 5.0 % 1,293 1,352
4.7 %
Cable Communications Revenue $12,444
$13,122 5.5 % $24,648
$26,034 5.6 %
Cable Communications Adjusted EBITDA
$5,048 $5,320 5.4 %
$9,937 $10,518 5.8
% Adjusted EBITDA Margin 40.6% 40.5% 40.3% 40.4%
Cable Communications Capital
Expenditures $1,881 $1,956
4.0 % $3,457 $3,737
8.1 % Percent of Cable Communications Revenue
15.1% 14.9% 14.0% 14.4%
Revenue for Cable Communications increased 5.5% to $13.1
billion in the second quarter of 2017, driven primarily by
increases in high-speed Internet, video and business services
revenue. High-speed Internet revenue increased 9.2%, driven by an
increase in the number of residential high-speed Internet customers
and rate adjustments. Video revenue increased 3.9%, reflecting rate
adjustments and an increase in the number of customers subscribing
to additional services. Business services revenue increased 12.6%,
primarily due to increases in the number of customers receiving our
small and medium-sized business services offerings. Advertising
revenue decreased 2.1%, reflecting a decrease in political
advertising revenue and softness in core linear advertising across
several categories, partially offset by growth in interactive
advertising. Other revenue increased 5.0%, primarily due to an
increase in security and automation revenue and higher franchise
and regulatory fees.
For the six months ended June 30, 2017, Cable revenue
increased 5.6% to $26.0 billion compared to 2016, driven by growth
in high-speed Internet, video and business services.
Total Customer Relationships increased by 114,000 to 29.0
million in the second quarter of 2017. Residential customer
relationships increased by 77,000 and business customer
relationships increased by 37,000. At the end of the second
quarter, penetration of our double, triple and quad product
residential customers was 70.5%. Total video customer net losses
were 34,000, total high-speed Internet customer net additions were
175,000, total voice customer net losses were 22,000 and total
security and automation customer net additions were 71,000.
Customers Net Additions (in thousands)
2Q16 2Q17 2Q16 2Q17 Residential Video
Customers 21,401 21,475 (21 )
(45 ) Business Services Video Customers 994 1,040
17 11
Total Video
Customers 22,396 22,516
(4 ) (34 ) Residential
High-Speed Internet Customers 22,189 23,364
176 140 Business Services High-Speed
Internet Customers 1,797 1,942 43
35
Total High-Speed Internet Customers
23,987 25,306 220
175 Residential Voice Customers
10,551 10,470 35 (50 ) Business
Services Voice Customers 1,090 1,189 29
27
Total Voice Customers
11,641 11,659 64
(22 ) Total Security and Automation
Customers 737 1,028
70 71
Residential
Customer Relationships 26,138 26,874 73
77 Business Services Customer Relationships
1,964 2,115 43 37
Total Customer Relationships 28,101
28,989 116 114
Single Product Residential Customers 7,671
7,931 (10 ) 70 Double Product
Residential Customers 8,585 8,945 13
8 Triple and Quad Product Residential
Customers 9,882 9,998 70 —
Adjusted EBITDA for Cable Communications increased 5.4%
to $5.3 billion in the second quarter of 2017, reflecting higher
revenue, partially offset by a 5.5% increase in operating expenses.
The higher expenses were primarily due to a 12.0% increase in video
programming costs, reflecting the timing of contract renewals, as
well as higher retransmission consent fees and sports programming
costs. Non-programming expenses increased 1.4%, reflecting
increases in technical and product support expenses and
advertising, marketing and promotion costs, and a decrease in
customer service expenses. Technical and product support expenses
increased 1.8% related to the development, delivery and support of
our X1 platform, cloud DVR technology and wireless gateways, and
the continued growth in business services and security and
automation services. Advertising, marketing and promotion costs
increased 2.1%, primarily due to an increase in spending associated
with attracting new customers. Customer service expenses decreased
1.1%, reflecting reduced call volumes. This quarter’s Adjusted
EBITDA margin was 40.5% compared to 40.6% in the second quarter of
2016.
For the six months ended June 30, 2017, Cable Adjusted
EBITDA increased 5.8% to $10.5 billion compared to 2016, driven by
higher revenue, partially offset by a 5.5% increase in operating
expenses. The higher expenses were primarily due to an 11.8%
increase in video programming costs and a 1.4% increase in
non-programming expenses. Year-to-date Adjusted EBITDA margin was
40.4% compared to 40.3% in 2016.
NBCUniversal
2nd Quarter Year to Date ($ in millions)
2016 2017 Growth 2016 2017
Growth
NBCUniversal Revenue Cable Networks
$2,566 $2,696 5.1 % $5,019
$5,337 6.3 % Broadcast Television
2,128 2,241 5.3 % 4,212
4,449 5.6 % Filmed Entertainment
1,351 2,155 59.6 % 2,734
4,136 51.3 % Theme Parks 1,136
1,314 15.6 % 2,162 2,432
12.5 % Headquarters, other and eliminations
(78 ) (75 ) NM (163 ) (155 ) NM
NBCUniversal Revenue $7,103
$8,331 17.3 % $13,964
$16,199 16.0 %
NBCUniversal Adjusted EBITDA
Cable Networks $944 $1,055
11.7 % $1,900 $2,171 14.2
% Broadcast Television 394 416
5.5 % 678 738 8.8 % Filmed
Entertainment 56 285 407.4 %
223 653 192.7 % Theme Parks
469 551 17.3 % 844
948 12.3 % Headquarters, other and
eliminations (174 ) (236 ) NM (334 )
(422 ) NM
NBCUniversal Adjusted EBITDA
$1,689 $2,071 22.6 % $3,311
$4,088 23.5 % NM=comparison not meaningful.
Revenue for NBCUniversal increased 17.3% to $8.3 billion
in the second quarter of 2017. Adjusted EBITDA increased
22.6% to $2.1 billion, reflecting increases at Filmed
Entertainment, Theme Parks, Cable Networks and Broadcast
Television.
For the six months ended June 30, 2017, NBCUniversal
revenue increased 16.0% to $16.2 billion compared to 2016 and
Adjusted EBITDA increased 23.5% to $4.1 billion, reflecting
increases at Filmed Entertainment, Cable Networks, Theme Parks, and
Broadcast Television.
Cable Networks
Cable Networks revenue increased 5.1% to $2.7 billion in the
second quarter of 2017, reflecting higher distribution and content
licensing and other revenue, partially offset by lower advertising
revenue. Distribution revenue increased 8.1%, driven by contractual
rate increases and contract renewals, partially offset by a decline
in subscribers at our cable networks. Content licensing and other
revenue increased 10.5%, reflecting the timing of content provided
under licensing agreements. Advertising revenue decreased 0.9%, due
to audience ratings declines, mostly offset by higher rates.
Adjusted EBITDA increased 11.7% to $1.1 billion in the second
quarter of 2017, reflecting higher revenue, partially offset by a
modest increase in operating expenses.
For the six months ended June 30, 2017, revenue from the
Cable Networks segment increased 6.3% to $5.3 billion compared to
2016, reflecting higher distribution and content licensing and
other revenue, partially offset by a decline in advertising
revenue. Adjusted EBITDA increased 14.2% to $2.2 billion compared
to 2016, reflecting higher revenue, partially offset by a modest
increase in operating expenses.
Broadcast Television
Broadcast Television revenue increased 5.3% to $2.2 billion in
the second quarter of 2017, reflecting higher distribution and
other and content licensing revenue, partially offset by a decline
in advertising revenue. Distribution and other revenue increased
36.1%, due to higher retransmission consent fees. Content licensing
revenue increased 2.1%, reflecting the timing of content provided
under licensing agreements. Advertising revenue decreased 1.2%, due
to audience ratings declines, partially offset by higher rates.
Adjusted EBITDA increased 5.5% to $416 million in the second
quarter of 2017, reflecting higher revenue, partially offset by
increases in programming and production costs and advertising,
marketing and promotion expenses.
For the six months ended June 30, 2017, revenue from the
Broadcast Television segment increased 5.6% to $4.4 billion
compared to 2016, reflecting higher distribution and other and
content licensing revenue. Adjusted EBITDA increased 8.8% to $738
million compared to 2016, reflecting higher revenue, partially
offset by an increase in programming and production costs.
Filmed Entertainment
Filmed Entertainment revenue increased 59.6% to $2.2 billion in
the second quarter of 2017, primarily reflecting higher theatrical
revenue, as well as increased home entertainment, content licensing
and other revenue. Theatrical revenue increased by $540 million to
$837 million, reflecting the strong performance of The Fate of the
Furious in this year’s second quarter. Home Entertainment revenue
increased 42.6%, driven by strong sales of recent titles including
Fifty Shades Darker and Sing. Content licensing and other revenue
increased 14.1% and 37.1%, respectively, primarily due to the
inclusion of DreamWorks in the current year period. Adjusted EBITDA
increased by $229 million to $285 million in the second quarter of
2017, reflecting higher revenue, partially offset by higher
programming and production costs.
For the six months ended June 30, 2017, revenue from the
Filmed Entertainment segment increased 51.3% to $4.1 billion
compared to 2016, primarily reflecting higher theatrical revenue,
as well as increases in content licensing, other and home
entertainment revenue. Adjusted EBITDA increased $430 million to
$653 million compared to 2016, reflecting higher revenue, partially
offset by higher programming and production costs.
Theme Parks
Theme Parks revenue increased 15.6% to $1.3 billion in the
second quarter of 2017 reflecting higher attendance and per capita
spending. Revenue growth also benefitted from the timing of spring
break vacations, the continued success of The Wizarding World of
Harry PotterTM in Hollywood, and the openings of Minion ParkTM in
Japan and Volcano BayTM in Orlando. Adjusted EBITDA increased 17.3%
to $551 million in the second quarter of 2017, reflecting higher
revenue, partially offset by an increase in operating expenses,
including costs to support new attractions.
For the six months ended June 30, 2017, revenue from the
Theme Parks segment increased 12.5% to $2.4 billion compared to
2016, reflecting higher attendance and per capita spending.
Adjusted EBITDA increased 12.3% to $948 million compared to 2016,
reflecting higher revenue, partially offset by an increase in
operating expenses, including costs to support new attractions.
Headquarters, Other and Eliminations
NBCUniversal Headquarters, Other and Eliminations include
overhead and eliminations among the NBCUniversal businesses. For
the quarter ended June 30, 2017, NBCUniversal Headquarters,
Other and Eliminations Adjusted EBITDA loss was $236 million
compared to a loss of $174 million in the second quarter of
2016.
For the six months ended June 30, 2017, NBCUniversal
Headquarters, Other and Eliminations Adjusted EBITDA loss was $422
million compared to a loss of $334 million in 2016.
Corporate, Other and Eliminations
Corporate, Other and Eliminations primarily relate to corporate
operations, Comcast Spectacor and our new wireless initiative,
Xfinity Mobile, as well as eliminations among Comcast's businesses.
For the quarter ended June 30, 2017, Corporate, Other and
Eliminations revenue was ($288) million compared to ($278) million
in the second quarter of 2016. The Adjusted EBITDA loss was $292
million compared to a loss of $282 million in the second quarter of
2016.
For the six months ended June 30, 2017, Corporate, Other
and Eliminations revenue was ($605) million compared to ($553)
million in 2016. The Adjusted EBITDA loss was $475 million compared
to a loss of $426 million in 2016.
Notes:
1 We define Adjusted EBITDA (formerly Operating Cash Flow)
as net income attributable to Comcast Corporation before net
(income) loss attributable to noncontrolling interests and
redeemable subsidiary preferred stock, income tax expense, other
income (expense) items, net, and depreciation and amortization, and
excluding impairment charges related to fixed and intangible assets
and gains or losses on the sale of long-lived assets, if any. See
Table 4 for reconciliation of non-GAAP financial measures. 2
All earnings per share amounts are presented on a diluted basis and
reflect the two-for-one stock split on February 17, 2017. 3
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, cash paid for intangible assets,
principal payments on capital leases and cash distributions to
noncontrolling interests; and adjusted for any payments and
receipts related to certain nonoperating items, net of estimated
tax effects. The definition of Free Cash Flow excludes any impact
from Economic Stimulus packages. These amounts have been excluded
from Free Cash Flow to provide an appropriate comparison. See Table
4 for reconciliation of non-GAAP financial measures. 4 To be
consistent with our current management reporting presentation,
certain 2016 operating results were reclassified within the Cable
Communications segment. All percentages are calculated on
whole numbers. Minor differences may exist due to rounding.
Conference Call and Other Information
Comcast Corporation will host a conference call with the
financial community today, July 27, 2017 at 7:30 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 39307493. A replay of the
call will be available starting at 12:00 p.m. ET on July 27, 2017,
on the Investor Relations website or by telephone. To access the
telephone replay, which will be available until Thursday, August 3,
2017 at midnight ET, please dial (855) 859-2056 and enter the
conference ID number 39307493.
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.
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 two primary businesses, Comcast Cable and
NBCUniversal. Comcast Cable is one of the nation’s largest video,
high-speed internet, 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 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.
Visit www.comcastcorporation.com for more
information.
TABLE 1 Condensed Consolidated Statement of Income
(Unaudited) Three Months
Ended Six Months Ended (in millions, except per share
data)
June 30, June 30, 2016
2017 2016
2017 Revenue $19,269
$21,165 $38,059
$41,628 Programming and production 5,492
6,341
10,923
12,415 Other operating and administrative 5,763
6,060 11,289
11,887 Advertising, marketing and
promotion 1,559
1,665 3,025
3,195 12,814
14,066 25,237
27,497 Adjusted EBITDA 6,455
7,099 12,822
14,131 Depreciation expense 1,868
1,970 3,653
3,885 Amortization expense 521
571 1,014
1,158 2,389
2,541 4,667
5,043 Operating
income 4,066
4,558 8,155
9,088 Other
income (expense) Interest expense (732 )
(758 )
(1,435 )
(1,513 ) Investment income (loss), net 58
64 88
123 Equity in net income (losses) of investees,
net (19 )
15 (30 )
51 Other income (expense), net (15
)
20 115
55 (708 )
(659
) (1,262 )
(1,284 ) Income before
income taxes 3,358
3,899 6,893
7,804 Income
tax expense (1,278 )
(1,364 ) (2,589 )
(2,622
) Net income 2,080
2,535 4,304
5,182 Net (income) loss attributable to
noncontrolling interests and redeemable subsidiary preferred stock
(52 )
(22 ) (142 )
(103 )
Net income attributable to Comcast Corporation
$2,028
$2,513 $4,162
$5,079
Diluted earnings per common share
attributable to Comcast Corporation shareholders $0.41
$0.52 $0.85
$1.05
Dividends declared per common share $0.1375
$0.1575 $0.275
$0.315
Diluted weighted-average number of common shares 4,891
4,809 4,908
4,820 TABLE 2
Condensed Consolidated Balance Sheet (Unaudited)
(in millions) December 31,
June 30, 2016
2017
ASSETS Current Assets Cash and cash equivalents
$3,301
$2,693 Receivables, net 7,955
7,849
Programming rights 1,250
1,633 Other current assets 3,855
2,657 Total current assets 16,361
14,832 Film
and television costs 7,252
6,595 Investments 5,247
6,521 Property and equipment, net 36,253
37,171 Franchise rights 59,364
59,364
Goodwill 35,980
36,742 Other intangible assets, net
17,274
18,907 Other noncurrent assets, net 2,769
2,899 $180,500
$183,031 LIABILITIES
AND EQUITY Current Liabilities Accounts payable and
accrued expenses related to trade creditors $6,915
$6,730
Accrued participations and residuals 1,726
1,882 Deferred
revenue 1,132
1,448 Accrued expenses and other current
liabilities 6,282
5,858 Current portion of long-term debt
5,480
6,358 Total current liabilities 21,535
22,276
Long-term debt, less current portion 55,566
57,210
Deferred income taxes 34,854
35,409 Other
noncurrent liabilities 10,925
10,837 Redeemable
noncontrolling interests and redeemable subsidiary preferred stock
1,446
1,451 Equity Comcast Corporation shareholders'
equity 53,943
55,005 Noncontrolling interests 2,231
843 Total equity 56,174
55,848 $180,500
$183,031 TABLE 3 Consolidated Statement of
Cash Flows (Unaudited) Six Months Ended
(in millions)
June 30, 2016
2017 OPERATING
ACTIVITIES Net income $4,304
$5,182 Adjustments to
reconcile net income to net cash provided by operating activities:
Depreciation and amortization 4,667
5,043 Share-based
compensation 331
391 Noncash interest expense (income), net
113
122 Equity in net (income) losses of investees, net 30
(51 ) Cash received from investees 42
49 Net
(gain) loss on investment activity and other (126 )
(110
) Deferred income taxes 618
470 Changes in operating
assets and liabilities, net of effects of acquisitions and
divestitures: Current and noncurrent receivables, net 172
18
Film and television costs, net (171 )
277 Accounts payable
and accrued expenses related to trade creditors (104 )
(144
) Other operating assets and liabilities (82 )
(433
) Net cash provided by operating activities 9,794
10,814 INVESTING ACTIVITIES
Capital expenditures (4,156 )
(4,405 ) Cash paid for
intangible assets (737 )
(836 ) Acquisitions and
construction of real estate properties (211 )
(250 )
Acquisitions, net of cash acquired (126 )
(398 )
Proceeds from sales of investments 138
57 Purchases of
investments (580 )
(1,825 ) Other (156 )
170
Net cash provided by (used in) investing activities
(5,828 )
(7,487 ) FINANCING ACTIVITIES
Proceeds from (repayments of) short-term borrowings, net 205
(1,695 ) Proceeds from borrowings 4,753
8,963
Repurchases and repayments of debt (2,551 )
(4,967 )
Repurchases of common stock under repurchase program and employee
plans (2,636 )
(2,476 ) Dividends paid (1,281 )
(1,404 ) Purchase of Universal Studios Japan
noncontrolling interests —
(2,299 ) Issuances of
common stock 19
— Distributions to noncontrolling interests
and dividends for redeemable subsidiary preferred stock (125 )
(137 ) Other 20
80 Net
cash provided by (used in) financing activities (1,596 )
(3,935 ) Increase (decrease) in cash and cash
equivalents 2,370
(608 ) Cash and cash
equivalents, beginning of period 2,295
3,301
Cash and cash equivalents, end of period $4,665
$2,693 TABLE 4
Reconciliation from Net Income Attributable to Comcast
Corporation to Adjusted EBITDA (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30, (in millions) 2016
2017 2016
2017 Net income attributable to Comcast Corporation
$2,028
$2,513 $4,162
$5,079 Net income (loss)
attributable to noncontrolling interests and redeemable subsidiary
preferred stock 52
22 142
103 Income tax expense
1,278
1,364 2,589
2,622 Other (income) expense items,
net(1) 708
659 1,262
1,284 Depreciation and
amortization 2,389
2,541 4,667
5,043 Adjusted EBITDA $6,455
$7,099 $12,822
$14,131
Reconciliation from Net Cash Provided by Operating Activities to
Free Cash Flow (Unaudited) Three Months Ended
Six Months Ended June 30, June 30, (in
millions) 2016
2017 2016
2017 Net cash provided by
operating activities $4,395
$5,158 $9,794
$10,814
Capital expenditures (2,271 )
(2,327 ) (4,156 )
(4,405 ) Cash paid for capitalized software and other
intangible assets (359 )
(420 ) (737 )
(836
) Principal payments on capital leases (7 )
(6
) (17 )
(17 ) Distributions to noncontrolling
interests and dividends for redeemable subsidiary preferred stock
(48 )
(65 ) (125 )
(137 ) Nonoperating
items(2) (61 )
30 (16 )
30 Impact of share-based
compensation accounting change(4) (122 )
— (411 )
— Free cash flow (including Economic Stimulus
Packages) 1,527
2,370 4,332
5,449 Economic Stimulus
Packages(2) (107 )
(151 ) (107 )
(151 )
Total free cash flow $1,420
$2,219
$4,225
$5,298 Alternate Presentation
of Free Cash Flow (Unaudited) Three Months Ended
Six Months Ended June 30, June 30, (in
millions) 2016
2017 2016
2017 Adjusted EBITDA
$6,455
$7,099 $12,822
$14,131 Capital expenditures
(2,271 )
(2,327 ) (4,156 )
(4,405 )
Cash paid for capitalized software and other intangible assets (359
)
(420 ) (737 )
(836 ) Cash interest
expense (512 )
(477 ) (1,235 )
(1,372 )
Cash taxes on operating items (including Economic Stimulus
Packages)(3,4) (1,556 )
(2,047 ) (1,701 )
(2,179 ) Changes in operating assets and
liabilities(4) (300 )
337 (558 )
(243 )
Noncash share-based compensation 178
218 331
391
Distributions to noncontrolling interests and dividends for
redeemable subsidiary preferred stock (48 )
(65 )
(125 )
(137 ) Other 62
52 102
99 Impact
of share-based compensation accounting change(4) (122 )
—
(411 )
— Free cash flow (including Economic
Stimulus Packages) 1,527
2,370 4,332
5,449 Economic
Stimulus Packages(3) (107 )
(151 ) (107 )
(151
) Total free cash flow $1,420
$2,219
$4,225
$5,298 (1) Other (income)
expense items, net include interest expense, investment income
(loss), equity in net income (losses) of investees, and other
income (expense), net (as stated in our Statement of Income).
(2) Nonoperating items include adjustments for any payments
and receipts related to certain nonoperating items, net of
estimated tax effects (such as income taxes on investment sales and
payments related to income tax and litigation contingencies of
acquired companies). Our definition of free cash flow specifically
excludes any impact from the Economic Stimulus Packages and these
amounts are presented separately. (3) Cash taxes on
operating items (including Economic Stimulus Packages) has been
adjusted to exclude the impact of nonoperating items, such as for
cash taxes paid related to certain investing and financing
transactions. Our definition of free cash flow specifically
excludes any impact from the Economic Stimulus Packages and these
amounts are presented separately.
Three Months Ended Six Months Ended June 30, June 30,
2016 2017 2016 2017 Payments of income taxes ($1,495
) ($2,077 ) ($1,685 ) ($2,209 ) Nonoperating items (61 ) 30
(16 ) 30 Cash taxes on operating items (including Economic
Stimulus Packages) ($1,556 ) ($2,047 ) ($1,701 ) ($2,179 )
(4) In 1Q17, we adopted new accounting guidance related to
share-based compensation. The guidance requires excess tax benefits
under share-based compensation arrangements to be classified as an
operating activity rather than a financing activity as they were
under prior guidance. In addition, the new guidance requires when
an employer withholds shares upon exercise of options or the
vesting of restricted stock for the purpose of meeting withholding
tax requirements, that the cash paid for withholding taxes be
classified as a financing activity, which we present in Repurchases
of Common Stock Under Repurchase Program and Employee Plans. We
previously recorded cash paid for withholding taxes as an operating
activity in changes in operating assets and liabilities. These
changes will prospectively affect our calculation of Free Cash
Flow. While we have retrospectively adopted these changes in our
Statement of Cash Flows and the components of Free Cash Flow, we
have not adjusted Total Free Cash Flow for periods prior to January
1, 2017. The table below summarizes the impact to the components of
Free Cash Flow for the share-based compensation accounting change.
Three Months Ended Six Months Ended June 30,
June 30, 2016 2016 Cash taxes on operating items (including
Economic Stimulus Packages) $49 $160 Changes in operating assets
and liabilities 73 251 Impact of share-based compensation
accounting change $122 $411
Note: Minor
differences may exist due to rounding.
TABLE 5 Reconciliation of EPS Excluding
Adjustments (Unaudited) Three Months
EndedJune 30, Six Months EndedJune 30,
2016
2017 2016
2017 (in millions,
except per share data) $ EPS
$ EPS $ EPS
$ EPS
Net income attributable to Comcast Corporation $2,028 $0.41
$2,513 $0.52 $4,162 $0.85
$5,079 $1.05
Growth % 23.9% 26.8% 22.0% 23.5% Gain on sale of
investment(1) — —
— — (67)
(0.02)
— — Net income attributable to Comcast
Corporation (excluding adjustments) $2,028 $0.41
$2,513 $0.52 $4,095 $0.83
$5,079
$1.05 Growth % 23.9% 26.8% 24.0% 26.5% (1)
2016 year to date net income attributable to Comcast Corporation
includes $108 million of other income, $67 million net of tax,
resulting from a gain on the sale of our investment in The Weather
Channel's product and technology business.
Note: Minor
differences may exist due to rounding.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170727005600/en/
Comcast CorporationInvestor Contacts:Jason Armstrong,
215-286-7972Jane Kearns, 215-286-4794orPress Contacts:D’Arcy
Rudnay, 215-286-8582John Demming, 215-286-8011
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