Comcast Corporation (NASDAQ: CMCSA) today reported results for
the quarter ended September 30, 2021.
"I am pleased with our strong operating and financial results
this quarter. Each of our businesses posted significant growth in
Adjusted EBITDA, contributing to a double-digit increase in our
Adjusted EPS. At Cable, our customer and financial metrics remained
strong, highlighted by 10% growth in Adjusted EBITDA, the highest
level of customer retention on record for a third quarter, and the
most wireless net additions since the launch of Xfinity Mobile in
2017. Our results at NBCUniversal continue to be driven by the
ongoing recovery at our domestic Theme Parks, as well as the
success of our linear and streaming Media platforms. At Sky, our UK
business maintained its momentum, delivering healthy growth in
revenue, EBITDA, and customer relationships. Going forward, I am
excited about the opportunity to continue to invest in our global
technology platform and other businesses while returning more
capital to shareholders. This strategy is reflected in our most
recent product launches – XClass TV in the U.S. and Sky Glass in
Europe – as well as the $2.7 billion we returned to shareholders
through a combination of share repurchases and dividend payments,"
commented Brian L. Roberts, Chairman and Chief Executive Officer of
Comcast Corporation.
($ in millions, except per share data)
3rd Quarter
Year to Date
Consolidated Results
2021
2020
Change
2021
2020
Change
Revenue
$30,298
$25,532
18.7%
$86,049
$75,856
13.4%
Net Income Attributable to Comcast
$4,035
$2,019
99.8%
$11,102
$7,154
55.2%
Adjusted Net Income1
$4,038
$3,000
34.6%
$11,511
$9,436
22.0%
Adjusted EBITDA2
$8,957
$7,583
18.1%
$26,297
$23,640
11.2%
Earnings per Share3
$0.86
$0.44
95.5%
$2.38
$1.55
53.5%
Adjusted Earnings per Share1
$0.87
$0.65
33.8%
$2.47
$2.04
21.1%
Net Cash Provided by Operating
Activities
$6,100
$5,228
16.7%
$21,457
$19,695
8.9%
Free Cash Flow4
$3,234
$2,289
41.3%
$13,305
$11,580
14.9%
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.
3rd Quarter 2021 Highlights:
- Consolidated Adjusted EBITDA Increased 18.1% to $9.0 Billion;
Adjusted EPS Increased 33.8% to $0.87; Generated Free Cash Flow of
$3.2 Billion
- Returned $2.7 Billion to Shareholders Through a Combination of
$1.5 Billion in Share Repurchases and $1.2 Billion in Dividend
Payments
- Cable Communications Total Customer Relationship Net Additions
Were 255,000; Total Broadband Customer Net Additions Were
300,000
- Cable Communications Adjusted EBITDA Increased 10.3% and
Adjusted EBITDA per Customer Relationship Increased 5.3%
- Cable Communications Wireless Customer Line Net Additions Were
285,000, the Best Quarterly Result Since Launch in 2017
- NBCUniversal Adjusted EBITDA Increased 48.2% to $1.3 Billion,
Including Peacock Losses
- Theme Parks Delivered Its Most Profitable Quarter Since the
First Quarter of 2020, Driven by Universal Orlando; Celebrated the
Grand Opening of Universal Beijing Resort on September 20th
- Sky Adjusted EBITDA Increased 88.8% to $971 Million; On a
Constant Currency Basis, Adjusted EBITDA Increased 76.2%
Consolidated Financial Results
Revenue for the third quarter of 2021 increased
18.7% to $30.3 billion. Net Income Attributable to Comcast
increased 99.8% to $4.0 billion. Adjusted Net Income
increased 34.6% to $4.0 billion. Adjusted EBITDA increased
18.1% to $9.0 billion.
For the nine months ended September 30, 2021, revenue increased
13.4% to $86.0 billion compared to 2020. Net income attributable to
Comcast increased 55.2% to $11.1 billion. Adjusted Net Income
increased 22.0% to $11.5 billion. Adjusted EBITDA increased 11.2%
to $26.3 billion.
Earnings per Share (EPS) for the third quarter of 2021
was $0.86, an increase of 95.5% compared to the prior year period.
Adjusted EPS increased 33.8% to $0.87.
For the nine months ended September 30, 2021, EPS was $2.38, a
53.5% increase compared to 2020. Adjusted EPS increased 21.1% to
$2.47.
Capital Expenditures decreased 10.3% to $2.1 billion in
the third quarter of 2021. Cable Communications’ capital
expenditures decreased 5.4% to $1.7 billion. NBCUniversal’s capital
expenditures decreased 35.7% to $229 million. Sky's capital
expenditures decreased 32.3% to $160 million.
For the nine months ended September 30, 2021, capital
expenditures decreased 3.1% to $6.1 billion compared to 2020. Cable
Communications' capital expenditures increased 5.5% to $4.7
billion. NBCUniversal's capital expenditures decreased 47.6% to
$584 million. Sky's capital expenditures decreased 5.2% to $615
million.
Net Cash Provided by Operating Activities was $6.1
billion in the third quarter of 2021. Free Cash Flow was
$3.2 billion.
For the nine months ended September 30, 2021 net cash provided
by operating activities was $21.5 billion. Free cash flow was $13.3
billion.
Dividends and Share Repurchases. Comcast resumed its
share repurchase program in May 2021 after pausing the program in
2019 to accelerate the reduction of indebtedness it incurred in
connection with its acquisition of Sky. During the third quarter of
2021, Comcast paid dividends totaling $1.2 billion and repurchased
25.9 million of its common shares for $1.5 billion. As of September
30, 2021, Comcast had $8.0 billion available under its share
repurchase authorization.
For the nine months ended September 30, 2021, Comcast paid
dividends totaling $3.4 billion and repurchased 34.7 million of its
common shares for $2.0 billion.
Cable Communications
($ in millions)
3rd
Quarter
Year to
Date
2021
2020
Change
2021
2020
Change
Cable Communications Revenue
Broadband
$5,801
$5,198
11.6
%
$17,118
$15,199
12.6
%
Video
5,499
5,421
1.4
%
16,676
16,468
1.3
%
Voice
851
876
(2.9
%)
2,592
2,652
(2.3
%)
Wireless
603
400
50.7
%
1,672
1,069
56.4
%
Business Services
2,227
2,049
8.7
%
6,597
6,096
8.2
%
Advertising
705
674
4.6
%
2,002
1,659
20.6
%
Other
427
382
12.4
%
1,265
1,203
5.3
%
Cable Communications Revenue
$16,115
$15,000
7.4
%
$47,922
$44,346
8.1
%
Cable Communications Adjusted
EBITDA
$7,069
$6,411
10.3
%
$20,972
$18,663
12.4
%
Adjusted EBITDA Margin
43.9%
42.7%
43.8%
42.1%
Cable Communications Capital
Expenditures
$1,673
$1,770
(5.4
%)
$4,739
$4,491
5.5
%
Percent of Cable Communications
Revenue
10.4%
11.8%
9.9%
10.1%
Revenue for Cable Communications increased 7.4% to $16.1
billion in the third quarter of 2021, driven by increases in
broadband, wireless, business services, video, other, and
advertising revenue, partially offset by a decrease in voice
revenue. In the prior year period, results were negatively impacted
by accrued customer regional sports network (RSN) fee adjustments
related to canceled sporting events as a result of COVID-19.
Excluding the impact of accrued customer RSN fee adjustments in the
prior year period5, Cable Communications revenue increased 6.3%.
Broadband revenue increased 11.6% due to an increase in the number
of residential broadband customers and an increase in average
rates. Excluding the impact of accrued RSN fee adjustments in the
prior year period for customers taking bundled services5, broadband
revenue increased 10.5%. Wireless revenue increased 50.7% due to an
increase in the number of customer lines and an increase in device
sales. Business services revenue increased 8.7% due to an increase
in average rates and an increase in the number of customers
receiving our services compared to the prior year period, which
were negatively impacted by COVID-19. Video revenue increased 1.4%,
reflecting an increase in average rates, partially offset by a
decrease in the number of residential video customers. Excluding
the impact of accrued customer RSN fee adjustments in the prior
year period5, video revenue was consistent with the prior year
period. Other revenue increased 12.4%, primarily reflecting
increases in revenue from our security and automation services and
from licensing of our technology platforms. Advertising revenue
increased 4.6%, reflecting an overall market recovery and higher
revenue from our advanced advertising businesses, partially offset
by a decrease in political advertising. Excluding political
advertising revenue, advertising revenue increased 19.0%. Voice
revenue decreased 2.9%, primarily reflecting a decrease in the
number of residential voice customers.
For the nine months ended September 30, 2021, Cable revenue
increased 8.1% to $47.9 billion compared to 2020, driven by growth
in broadband, wireless, business services, advertising, video, and
other revenue, partially offset by a decrease in voice revenue.
Excluding the impact of accrued customer RSN fee adjustments in
20205, Cable Communications revenue increased 7.2%.
Total Customer Relationships increased by 255,000 to 34.0
million in the third quarter of 2021. Residential customer
relationships increased by 237,000 and business customer
relationships increased by 18,000. Total broadband customer net
additions were 300,000, total video customer net losses were
408,000, and total voice customer net losses were 158,000. In
addition, Cable Communications added 285,000 wireless lines in the
quarter.
For the nine months ended September 30, 2021, total customer
relationships increased by 930,000. Residential customer
relationships increased by 884,000 and business customer
relationships increased by 46,000. Total broadband customer net
additions were 1.1 million, total video customer net losses were
1.3 million, and total voice customer net losses were 372,000. In
addition, Cable Communications added 842,000 wireless lines in the
current period.
(in thousands)
Net
Additions / (Losses)
3rd
Quarter
Year to
Date
3Q21
3Q206
2021
2020
2021
2020
Customer Relationships
Residential Customer Relationships
31,576
30,263
237
539
884
1,140
Business Services Customer
Relationships
2,473
2,401
18
17
46
5
Total Customer Relationships
34,048
32,664
255
556
930
1,144
Residential Customer Relationships
Mix
One Product Residential Customers
13,959
11,931
481
625
1,551
1,710
Two Product Residential Customers
8,473
8,732
(89
)
(9
)
(261
)
(191
)
Three or More Product Residential
Customers
9,144
9,600
(156
)
(77
)
(406
)
(379
)
Residential Broadband Customers
29,389
27,811
281
617
1,063
1,423
Business Services Broadband Customers
2,300
2,225
19
16
52
10
Total Broadband Customers
31,688
30,036
300
633
1,115
1,433
Residential Video Customers
17,844
19,220
(382
)
(253
)
(1,149
)
(1,068
)
Business Services Video Customers
705
874
(26
)
(20
)
(147
)
(92
)
Total Video Customers
18,549
20,094
(408
)
(273
)
(1,297
)
(1,160
)
Residential Voice Customers
9,245
9,684
(167
)
(14
)
(400
)
(250
)
Business Services Voice Customers
1,384
1,341
9
11
28
(1
)
Total Voice Customers
10,630
11,025
(158
)
(3
)
(372
)
(251
)
Total Wireless Lines
3,668
2,580
285
187
842
528
Adjusted EBITDA for Cable Communications increased 10.3%
to $7.1 billion in the third quarter of 2021, reflecting higher
revenue, partially offset by a 5.3% increase in operating expenses.
In the prior year period, total operating expenses benefited from
adjustments for provisions in our programming distribution
agreements with RSNs related to canceled sporting events as a
result of COVID-19. In the third quarter of 2021, programming costs
increased 7.6%, including the effects of the adjustment provisions
in the prior year period. Excluding these adjustments5, programming
costs increased 2.8%, reflecting the timing of contract renewals,
partially offset by a decline in the number of video subscribers.
Non-programming expenses increased 3.9%, primarily reflecting
higher technical and product support expenses and advertising,
marketing and promotion expenses, partially offset by lower other
expenses and customer service expenses. Non-programming expenses
per customer relationship decreased 0.8%. Adjusted EBITDA per
customer relationship increased 5.3%, and Adjusted EBITDA margin
was 43.9% compared to 42.7% in the prior year period. While the
accrued RSN adjustments did not impact Adjusted EBITDA in the prior
year period, they resulted in an increase to Adjusted EBITDA margin
in that period. Cable Communications results include Adjusted
EBITDA7 of $51 million from our wireless business, compared to a
loss of $50 million in the prior year period.
For the nine months ended September 30, 2021, Adjusted EBITDA
for Cable Communications increased 12.4% to $21.0 billion compared
to 2020, reflecting higher revenue, partially offset by a 4.9%
increase in operating expenses. Programming costs increased 8.3%,
reflecting the timing of contract renewals and adjustments in 2020
for provisions in our programming distribution agreements with RSNs
related to canceled sporting events as a result of COVID-19,
partially offset by a decline in the number of video subscribers.
Excluding the impact of accrued RSN adjustments in 20205,
programming costs increased 4.4%. Non-programming expenses
increased 2.8%. For the nine months ended September 30, 2021,
Adjusted EBITDA per customer relationship increased 7.4%, and
Adjusted EBITDA margin was 43.8% compared to 42.1% in 2020. While
the accrued RSN adjustments did not impact Adjusted EBITDA for the
nine months ended September 30, 2020, they resulted in an increase
to Adjusted EBITDA margin in that period. Cable Communications
results include Adjusted EBITDA7 of $125 million from our wireless
business, compared to a loss of $146 million in 2020.
Capital Expenditures for Cable Communications decreased
5.4% to $1.7 billion in the third quarter of 2021, primarily
reflecting decreased investment in customer premise equipment,
partially offset by increased investment in line extensions and
scalable infrastructure. Cable capital expenditures represented
10.4% of Cable revenue in the third quarter of 2021 compared to
11.8% in the prior year period.
For the nine months ended September 30, 2021, capital
expenditures for Cable Communications increased 5.5% to $4.7
billion, primarily reflecting increased investment in scalable
infrastructure and line extensions. Cable capital expenditures
represented 9.9% of Cable revenue compared to 10.1% in 2020.
NBCUniversal
($ in millions)
3rd
Quarter
Year to
Date
2021
2020
Change
2021
2020
Change
NBCUniversal Revenue
Media
$6,770
$4,589
47.5
%
$16,955
$13,563
25.0
%
Excluding Olympics5
$5,011
$4,589
9.2
%
15,195
13,563
12.0
%
Studios
2,407
1,898
26.8
%
7,027
6,359
10.5
%
Theme Parks
1,449
385
NM
3,163
1,446
118.8
%
Headquarters and other
28
12
121.4
%
65
32
103.7
%
Eliminations
(654
)
(551
)
(18.4
%)
(2,230
)
(1,623
)
(37.3
%)
NBCUniversal Revenue
$10,001
$6,333
57.9
%
$24,981
$19,777
26.3
%
NBCUniversal Adjusted EBITDA
Media
$997
$985
1.2
%
$3,847
$4,150
(7.3
%)
Studios
179
340
(47.3
%)
833
963
(13.6
%)
Theme Parks
434
(174
)
NM
593
(480
)
NM
Headquarters and other
(248
)
(127
)
(95.1
%)
(643
)
(430
)
(49.4
%)
Eliminations
(12
)
(114
)
88.9
%
(238
)
(224
)
(6.7
%)
NBCUniversal Adjusted EBITDA
$1,349
$910
48.2
%
$4,392
$3,979
10.4
%
NM=comparison not meaningful.
Beginning in the first quarter of 2021, the operations of
Peacock, which were previously reported in Corporate and Other, are
now included with NBCUniversal results and the operations of
NBCUniversal are now presented in three reportable business
segments: Media, Studios and Theme Parks. Prior periods have been
adjusted to reflect this presentation.
Revenue for NBCUniversal increased 57.9% to $10.0 billion
in the third quarter of 2021, including $1.8 billion of revenue
from the Tokyo Olympics included in the Media segment. Adjusted
EBITDA increased 48.2% to $1.3 billion.
For the nine months ended September 30, 2021, NBCUniversal
revenue increased 26.3% to $25.0 billion compared to 2020. Adjusted
EBITDA increased 10.4% to $4.4 billion.
Media Media revenue increased 47.5% to $6.8 billion in
the third quarter of 2021, reflecting higher advertising revenue
and distribution revenue. Excluding $1.8 billion of revenue
generated by the broadcast of the Tokyo Olympics5, Media revenue
increased 9.2%. Advertising revenue increased 73.0%, reflecting the
broadcast of the Tokyo Olympics, higher pricing, and additional
Peacock sales, partially offset by the timing of other sporting
events and a decline in ratings. Distribution revenue increased
36.2%, driven by the broadcast of the Tokyo Olympics, contractual
rate increases in the current period, and increases at Peacock,
partially offset by a decline in subscribers at our networks.
Adjusted EBITDA increased 1.2% to $997 million in the third quarter
of 2021, reflecting higher revenue, partially offset by an increase
in operating expenses. The increase in operating expenses was
primarily driven by higher programming and production expenses,
reflecting higher sports programming costs associated with the
broadcast of the Tokyo Olympics and higher amortization expense
related to programming at Peacock, partially offset by the timing
of other sporting events. Media results include $230 million of
revenue and an Adjusted EBITDA7 loss of $520 million related to
Peacock, compared to $41 million of revenue and an Adjusted EBITDA7
loss of $233 million in the prior year period.
For the nine months ended September 30, 2021, revenue from the
Media segment increased 25.0% to $17.0 billion compared to 2020,
reflecting higher advertising revenue, distribution revenue, and
other revenue. Excluding $1.8 billion of revenue associated with
the broadcast of the Tokyo Olympics in the third quarter of 20215,
revenue increased 12.0%. Adjusted EBITDA decreased 7.3% to $3.8
billion compared to 2020, reflecting higher operating expenses,
which more than offset higher revenue. The increase in operating
expenses was primarily driven by higher programming and production
expenses, reflecting higher sports programming costs due to the
broadcast of the Tokyo Olympics and an increase in the number of
other sporting events compared to the prior year period when sports
were postponed due to COVID-19, as well as higher amortization
expense related to programming at Peacock. Media results include
$443 million of revenue and an Adjusted EBITDA7 loss of $1.2
billion related to Peacock, compared to $47 million of revenue and
an Adjusted EBITDA7 loss of $409 million in 2020.
Studios Studios revenue increased 26.8% to $2.4 billion
in the third quarter of 2021, primarily reflecting higher
theatrical revenue and content licensing revenue. Theatrical
revenue increased by $279 million, primarily due to current year
releases, including F9 and The Boss Baby: Family Business, and the
impact of theater closures in the prior year period. Content
licensing revenue increased by $243 million, reflecting the timing
of when content was made available under licensing agreements.
Adjusted EBITDA decreased 47.3% to $179 million in the third
quarter of 2021, reflecting higher operating expenses, which more
than offset higher revenue. The increase in operating expenses was
driven by higher programming and production expenses, reflecting
higher amortization of television and film production costs in the
current year period and compared to the prior year period when
production was impacted due to COVID-19, as well as an increase in
advertising, marketing and promotion expenses, reflecting a higher
number of theatrical releases in the current period.
For the nine months ended September 30, 2021, revenue from the
Studios segment increased 10.5% to $7.0 billion compared to 2020,
primarily reflecting higher content licensing revenue and
theatrical revenue. Adjusted EBITDA decreased 13.6% to $833 million
compared to 2020, reflecting higher revenue more than offset by
higher operating expenses.
Theme Parks Theme Parks revenue increased $1.1 billion to
$1.4 billion in the third quarter of 2021, reflecting improved
operating conditions compared to the prior year period, when each
of our theme parks was either operating at limited capacity or
closed as a result of COVID-19. Theme Parks Adjusted EBITDA was
$434 million in the third quarter of 2021, which included
pre-opening costs related to Universal Beijing Resort, compared to
a $174 million Adjusted EBITDA loss in the prior year period.
For the nine months ended September 30, 2021, revenue from the
Theme Parks segment increased $1.7 billion to $3.2 billion compared
to 2020, reflecting improved operating conditions compared to 2020,
when each of our theme parks was either closed or operating at
limited capacity for the majority of the period as a result of
COVID-19. Theme Parks Adjusted EBITDA was $593 million, which
included pre-opening costs related to Universal Beijing Resort,
compared to a $480 million Adjusted EBITDA loss in 2020.
Headquarters and Other NBCUniversal Headquarters and
Other includes overhead, personnel costs and costs associated with
corporate initiatives. Headquarters and Other Adjusted EBITDA loss
was $248 million compared to a loss of $127 million in the prior
year period.
For the nine months ended September 30, 2021, Headquarters and
Other Adjusted EBITDA loss was $643 million compared to a loss of
$430 million in 2020.
Eliminations Amounts represent eliminations of
transactions between our NBCUniversal segments, which are affected
by the timing of recognition of content licenses between our
Studios and Media segments. Revenue eliminations for the quarter
ended September 30, 2021 were $654 million compared to $551 million
in the prior year period, and Adjusted EBITDA eliminations were $12
million compared to $114 million in the prior year period.
For the nine months ended September 30, 2021, revenue
eliminations were $2.2 billion compared to $1.6 billion in 2020,
and Adjusted EBITDA eliminations were $238 million compared to $224
million in 2020.
Sky
($ in millions)
3rd
Quarter
Year to
Date
2021
2020
Change
Constant
Currency
Change8
2021
2020
Change
Constant
Currency
Change8
Sky Revenue
Direct-to-Consumer
$4,127
$3,943
4.7
%
(0.1
%)
$12,415
$11,146
11.4
%
3.1
%
Content
300
388
(22.8
%)
(26.4
%)
1,013
947
7.0
%
(0.7
%)
Advertising
561
462
21.4
%
15.6
%
1,777
1,296
37.1
%
27.0
%
Sky Revenue
$4,988
$4,793
4.1
%
(0.7
%)
$15,205
$13,389
13.6
%
5.1
%
Sky Operating Costs and
Expenses
$4,016
$4,278
(6.1
%)
(10.2
%)
$13,310
$11,574
15.0
%
6.6
%
Sky Adjusted EBITDA
$971
$515
88.8
%
76.2
%
$1,895
$1,815
4.4
%
(4.3
%)
Adjusted EBITDA Margin
19.5%
10.7%
12.5%
13.6%
Revenue for Sky increased 4.1% to $5.0 billion in the
third quarter of 2021. Excluding the impact of currency, revenue
was consistent with the prior year period, reflecting lower content
revenue partially offset by higher advertising revenue and
consistent direct-to-consumer revenue. Content revenue decreased
26.4% to $300 million due to a change in sports programming
licensing agreements in Italy and Germany, as well as the timing of
sporting events compared to the prior year period due to COVID-19.
Advertising revenue increased 15.6% to $561 million, reflecting an
overall market recovery compared to the prior year period.
Direct-to-consumer revenue of $4.1 billion was consistent with the
prior year period, primarily reflecting an increase in customer
relationships and average revenue per customer relationship in the
U.K., offset by a decrease in customer relationships and average
revenue per relationship in Italy mainly due to the negative impact
of the reduction in Sky's rights to Serie A.
For the nine months ended September 30, 2021, Sky revenue
increased 13.6% to $15.2 billion compared to 2020. Excluding the
impact of currency, revenue increased 5.1%, primarily reflecting
higher direct-to-consumer revenue and advertising revenue.
Total Customer Relationships decreased by 233,000 to 23.0
million in the third quarter of 2021, primarily reflecting the
negative impact of the reduction in Sky's broadcast rights to Serie
A in Italy, partially offset by an increase in customer
relationships in the U.K. For the nine months ended September 30,
2021, total customer relationships decreased by 259,000.
(in thousands)
Customers
Net
Additions / (Losses)
3rd
Quarter
Year to
Date
3Q21
3Q209
2021
2020
2021
2020
Total Customer Relationships
22,966
22,981
(233)
(21)
(259)
(299)
Adjusted EBITDA for Sky increased 88.8% to $971 million
in the third quarter of 2021. Excluding the impact of currency,
Adjusted EBITDA increased 76.2%, primarily reflecting lower
operating expenses. The decrease in operating expenses was due to
lower programming and production expenses, primarily reflecting
lower sports programming costs associated with the timing of sports
rights amortization and the reduction in Sky's broadcast rights to
Serie A in Italy.
For the nine months ended September 30, 2021, Adjusted EBITDA
for Sky increased 4.4% to $1.9 billion compared to 2020. Excluding
the impact of currency, Adjusted EBITDA decreased 4.3%.
Corporate, Other and Eliminations
Corporate and Other Corporate and Other primarily relates
to corporate operations and Comcast Spectacor. Revenue for the
quarter ended September 30, 2021 was $65 million compared to $44
million in the prior year period. Corporate and Other Adjusted
EBITDA loss was $335 million compared to a loss of $264 million in
the prior year period.
For the nine months ended September 30, 2021, Corporate and
Other revenue was $246 million compared to $204 million in 2020.
Corporate and Other Adjusted EBITDA loss was $876 million compared
to a loss of $846 million in 2020.
Eliminations Amounts represent eliminations of
transactions between Cable Communications, NBCUniversal, Sky and
other businesses. Eliminations of transactions between NBCUniversal
segments are presented separately. Revenue eliminations for the
quarter ended September 30, 2021 were $871 million compared to $638
million in the prior year period, and Adjusted EBITDA eliminations
were a loss of $98 million compared to a benefit of $11 million in
the prior year period, reflecting an increase in eliminations
associated with the Tokyo Olympics.
For the nine months ended September 30, 2021 revenue
eliminations were $2.3 billion compared to $1.9 billion in 2020,
and Adjusted EBITDA eliminations were a loss of $87 million
compared to a benefit of $29 million in 2020.
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 and redeemable subsidiary
preferred stock, income tax expense, investment and other income
(loss), net, interest expense, depreciation and amortization
expense, and other operating gains and losses (such as impairment
charges related to fixed and intangible assets and gains or losses
on the sale of long-lived assets), if any. From time to time, we
may exclude from Adjusted EBITDA the impact of certain events,
gains, losses or other charges (such as significant legal
settlements) that affect the period-to-period comparability of our
operating performance. See Table 4 for reconciliation of non-GAAP
financial measure.
3
All earnings per share amounts are
presented on a diluted basis.
4
We define Free Cash Flow as net cash
provided by operating activities (as stated in our Consolidated
Statement of Cash Flows) reduced by capital expenditures and cash
paid for intangible assets. From time to time, we may exclude from
Free Cash Flow the impact of certain cash receipts or payments
(such as significant legal settlements) that affect
period-to-period comparability. Cash payments related to certain
capital or intangible assets, such as the construction of Universal
Beijing Resort, are presented separately in our Consolidated
Statement of Cash Flows and are therefore excluded from capital
expenditures and cash paid for intangible assets for Free Cash
Flow. See Table 4 for reconciliation of non-GAAP financial
measure.
5
From time to time, we may present adjusted
information (e.g., Adjusted Revenues) to exclude the impact of
certain events, gains, losses or other charges affecting
period-to-period comparability of our operating performance. See
Table 7 and Table 8 for reconciliations of non-GAAP financial
measures.
6
In the first quarter of 2021, we updated
Cable Communications' total residential customer relationships and
broadband customers due to a conforming change to methodology
resulting in a reduction of approximately 26,000 customers. There
was no impact to net additions and prior periods have been recast
on a comparable basis.
7
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 and the wireless business within Cable Communications. We
believe these measures are useful to evaluate our financial results
and provide a basis of comparison to others, although our
definition of Adjusted EBITDA may not be directly comparable to
similar measures used by other companies. Adjusted EBITDA for
components are generally presented on a consistent basis with the
respective segments and include direct revenue and operating costs
and expenses attributed to the component operations.
8
Sky constant currency growth rates are
calculated by comparing the current period results to the
comparative period results in the prior year adjusted to reflect
the average exchange rates from the current year period rather than
the actual exchange rates in effect during the respective prior
year periods. See Table 6 for reconciliation of Sky's constant
currency growth.
9
In the first quarter of 2021, we
implemented conforming changes in the methodology for counting
commercial customer relationships in Italy and Germany, which are
now counted on a consistent basis with customers in the United
Kingdom. The change resulted in a reduction in Sky’s total customer
relationships of 714,000 as of December 31, 2020. The impact of the
change in methodology to customer relationship net additions for
any period was not material. For comparative purposes, we have
recast Sky’s historical total customer relationships to reflect
this adjustment.
Numerical information is presented on a
rounded basis using actual amounts. Minor differences in totals and
percentage calculations may exist due to rounding.
Conference Call and Other Information Comcast Corporation
will host a conference call with the financial community today,
October 28, 2021 at 8:30 a.m. Eastern Time (ET). The conference
call and related materials will be broadcast live and posted on our
Investor Relations website at www.cmcsa.com. Those parties
interested in participating via telephone should dial (833)
618-9487. A replay of the call will be available starting at 12:00
p.m. ET on October 28, 2021, on the Investor Relations website or
by telephone. To access the telephone replay, which will be
available until Thursday, November 4, 2021 at midnight ET, please
dial (855) 859-2056 and enter the conference ID number 4073347.
From time to time, we post information that may be of interest
to investors on our website at www.cmcsa.com and on our corporate
website, www.comcastcorporation.com. To automatically receive
Comcast financial news by email, please visit www.cmcsa.com and
subscribe to email alerts.
Caution Concerning Forward-Looking Statements This press
release includes statements that may constitute forward-looking
statements. Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date they
are made, and involve risks and uncertainties that could cause
actual events or our actual results to differ materially from those
expressed in any such forward-looking statements. In evaluating
these statements, readers should consider various factors,
including the risks and uncertainties we describe in the “Risk
Factors” sections of our most recent Annual Report on Form 10-K,
our most recent Quarterly Report on Form 10-Q and other reports
filed with the Securities and Exchange Commission (SEC). We
undertake no obligation to update or revise publicly any
forward-looking statements, whether because of new information,
future events or otherwise.
Non-GAAP Financial Measures In this discussion, we
sometimes refer to financial measures that are not presented
according to generally accepted accounting principles in the U.S.
(GAAP). Certain of these measures are considered “non-GAAP
financial measures” under the SEC regulations; those rules require
the supplemental explanations and reconciliations that are in
Comcast’s Form 8-K (Quarterly Earnings Release) furnished to the
SEC.
About Comcast Corporation Comcast Corporation (Nasdaq:
CMCSA) is a global media and technology company that connects
people to moments that matter. We are principally focused on
broadband, aggregation, and streaming with 57 million customer
relationships across the United States and Europe. We deliver
broadband, wireless, and video through our Xfinity, Comcast
Business, and Sky brands; create, distribute, and stream leading
entertainment, sports, and news through Universal Filmed
Entertainment Group, Universal Studio Group, Sky Studios, the NBC
and Telemundo broadcast networks, multiple cable networks, Peacock,
NBCUniversal News Group, NBC Sports, Sky News, and Sky Sports; and
provide memorable experiences at Universal Parks and Resorts in the
United States and Asia. Visit www.comcastcorporation.com for more
information.
TABLE 1
Condensed Consolidated Statement of
Income (Unaudited)
Three Months Ended
Nine Months Ended
(in millions, except per share data)
September 30,
September 30,
2021
2020
2021
2020
Revenue
$30,298
$25,532
$86,049
$75,856
Costs and expenses
Programming and production
10,395
8,565
28,570
23,683
Other operating and administrative
8,981
8,059
25,799
23,959
Advertising, marketing and promotion
1,995
1,512
5,462
4,791
Depreciation
2,177
2,122
6,407
6,328
Amortization
1,301
1,198
3,815
3,520
24,848
21,456
70,053
62,281
Operating income
5,450
4,076
15,996
13,575
Interest expense
(1,050
)
(1,220
)
(3,161
)
(3,544
)
Investment and other income (loss),
net
Equity in net income (losses) of
investees, net
602
(266
)
1,696
(634
)
Realized and unrealized gains (losses) on
equity securities, net
106
118
532
65
Other income (loss), net
59
62
146
187
766
(86
)
2,374
(382
)
Income before income taxes
5,166
2,770
15,208
9,649
Income tax expense
(1,235
)
(739
)
(4,354
)
(2,385
)
Net income
3,931
2,031
10,854
7,264
Less: Net income (loss) attributable to
noncontrolling interests and redeemable subsidiary preferred
stock
(104
)
12
(249
)
110
Net income attributable to Comcast
Corporation
$4,035
$2,019
$11,102
$7,154
Diluted earnings per common share
attributable to Comcast Corporation shareholders
$0.86
$0.44
$2.38
$1.55
Diluted weighted-average number of common
shares
4,665
4,628
4,668
4,616
TABLE 2
Consolidated Statement of Cash Flows
(Unaudited)
Nine Months Ended
(in millions)
September 30,
2021
2020
OPERATING ACTIVITIES
Net income
$10,854
$7,264
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
10,222
9,848
Share-based compensation
1,019
922
Noncash interest expense (income), net
287
606
Net (gain) loss on investment activity and
other
(1,953
)
514
Deferred income taxes
2,087
(224
)
Changes in operating assets and
liabilities, net of effects of acquisitions and divestitures:
Current and noncurrent receivables,
net
(720
)
982
Film and television costs, net
(541
)
163
Accounts payable and accrued expenses
related to trade creditors
667
(545
)
Other operating assets and liabilities
(465
)
165
Net cash provided by operating
activities
21,457
19,695
INVESTING ACTIVITIES
Capital expenditures
(6,146
)
(6,344
)
Cash paid for intangible assets
(2,006
)
(1,771
)
Construction of Universal Beijing
Resort
(825
)
(1,118
)
Acquisitions, net of cash acquired
(167
)
(225
)
Proceeds from sales of businesses and
investments
500
2,131
Purchases of investments
(122
)
(545
)
Other
359
(101
)
Net cash provided by (used in) investing
activities
(8,406
)
(7,973
)
FINANCING ACTIVITIES
Proceeds from borrowings
2,515
18,339
Repurchases and repayments of debt
(9,041
)
(16,771
)
Repurchases of common stock under
repurchase program and employee plans
(2,617
)
(429
)
Dividends paid
(3,387
)
(3,086
)
Other
(416
)
(1,644
)
Net cash provided by (used in) financing
activities
(12,946
)
(3,591
)
Impact of foreign currency on cash, cash
equivalents and restricted cash
(15
)
17
Increase (decrease) in cash, cash
equivalents and restricted cash
90
8,148
Cash, cash equivalents and restricted
cash, beginning of period
11,768
5,589
Cash, cash equivalents and restricted
cash, end of period
$11,858
$13,737
TABLE 3
Condensed Consolidated Balance Sheet
(Unaudited)
(in millions)
September 30,
December 31,
2021
2020
ASSETS
Current Assets
Cash and cash equivalents
$11,806
$11,740
Receivables, net
11,974
11,466
Other current assets
3,646
3,535
Total current assets
27,427
26,741
Film and television costs
12,645
13,340
Investments
9,163
7,820
Investment securing collateralized
obligation
563
447
Property and equipment, net
52,809
51,995
Goodwill
69,626
70,669
Franchise rights
59,365
59,365
Other intangible assets, net
33,393
35,389
Other noncurrent assets, net
12,070
8,103
$277,061
$273,869
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued expenses
related to trade creditors
$12,020
$11,364
Accrued participations and residuals
1,683
1,706
Deferred revenue
3,091
2,963
Accrued expenses and other current
liabilities
9,250
9,617
Current portion of long-term debt
695
3,146
Total current liabilities
26,738
28,796
Long-term debt, less current portion
96,522
100,614
Collateralized obligation
5,169
5,168
Deferred income taxes
30,050
28,051
Other noncurrent liabilities
20,756
18,222
Redeemable noncontrolling interests and
redeemable subsidiary preferred stock
520
1,280
Equity
Comcast Corporation shareholders'
equity
95,782
90,323
Noncontrolling interests
1,524
1,415
Total equity
97,306
91,738
$277,061
$273,869
TABLE 4
Reconciliation from Net Income
Attributable to Comcast Corporation to Adjusted EBITDA
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2021
2020
2021
2020
Net income attributable to Comcast
Corporation
$4,035
$2,019
$11,102
$7,154
Net income (loss) attributable to
noncontrolling interests and redeemable subsidiary preferred
stock
(104
)
12
(249
)
110
Income tax expense
1,235
739
4,354
2,385
Interest expense
1,050
1,220
3,161
3,544
Investment and other (income) loss,
net
(766
)
86
(2,374
)
382
Depreciation and amortization
3,477
3,320
10,222
9,848
Adjustments (1)
30
187
79
217
Adjusted EBITDA
$8,957
$7,583
$26,297
$23,640
Reconciliation from Net Cash Provided
by Operating Activities to Free Cash Flow (Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2021
2020
2021
2020
Net cash provided by operating
activities
$6,100
$5,228
$21,457
$19,695
Capital expenditures
(2,142
)
(2,387
)
(6,146
)
(6,344
)
Cash paid for capitalized software and
other intangible assets
(723
)
(552
)
(2,006
)
(1,771
)
Free Cash Flow
$3,234
$2,289
$13,305
$11,580
Alternate Presentation of Free Cash
Flow (Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2021
2020
2021
2020
Adjusted EBITDA
$8,957
$7,583
$26,297
$23,640
Capital expenditures
(2,142
)
(2,387
)
(6,146
)
(6,344
)
Cash paid for capitalized software and
other intangible assets
(723
)
(552
)
(2,006
)
(1,771
)
Cash interest expense
(1,034
)
(909
)
(2,943
)
(2,845
)
Cash taxes
(368
)
(1,965
)
(2,201
)
(2,298
)
Changes in operating assets and
liabilities
(1,949
)
376
(1,057
)
361
Noncash share-based compensation
308
301
1,019
922
Other (2)
186
(158
)
342
(85
)
Free Cash Flow
$3,234
$2,289
$13,305
$11,580
(1)
3rd quarter and year to date 2021 Adjusted
EBITDA exclude $30 million and $79 million of other operating and
administrative expense, respectively, related to the Sky
transaction and costs related to our investment portfolio. 3rd
quarter and year to date 2020 Adjusted EBITDA exclude $177 million
of other operating and administrative expense related to a legal
settlement and $10 million and $40 million of other operating and
administrative expense, respectively, related to the Sky
transaction.
(2)
3rd quarter and year to date 2021 include
decreases of $30 million and $79 million, respectively, related to
costs that are excluded from Adjusted EBITDA. 3rd quarter and year
to date 2020 include decreases of $187 million and $217 million,
respectively, related to costs that are excluded from Adjusted
EBITDA.
TABLE 5
Reconciliations of Adjusted Net Income
and Adjusted EPS (Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2021
2020
2021
2020
(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
$4,035
$0.86
$2,019
$0.44
$11,102
$2.38
$7,154
$1.55
Change
99.8 %
95.5 %
55.2 %
53.5 %
Amortization of acquisition-related
intangible assets (1)
491
0.11
458
0.10
1,440
0.31
1,365
0.30
Investments (2)
(486)
(0.10)
70
0.01
(1,608)
(0.34)
334
0.07
Items affecting period-over-period
comparability:
Income tax adjustments (3)
—
—
145
0.03
498
0.11
145
0.03
Loss on early redemption of debt (4)
—
—
166
0.04
59
0.01
272
0.06
Legal settlement (5)
—
—
134
0.03
0
—
134
0.03
Costs related to Sky transaction (6)
(1)
—
8
—
20
—
32
—
Adjusted Net income and Adjusted
EPS
$4,038
$0.87
$3,000
$0.65
$11,511
$2.47
$9,436
$2.04
Change
34.6 %
33.8 %
22.0 %
21.1 %
(1)
Acquisition-related intangible assets are
recognized as a result of the application of Accounting Standards
Codification Topic 805, Business Combinations (such as customer
relationships), and their amortization is significantly affected by
the size and timing of our acquisitions. Amortization of intangible
assets not resulting from business combinations (such as software
and acquired intellectual property rights used in our theme parks)
is included in Adjusted Net Income and Adjusted EPS.
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
Amortization of acquisition-related
intangible assets before income taxes
$603
$574
$1,781
$1,714
Amortization of acquisition-related
intangible assets, net of tax
$491
$458
$1,440
$1,365
(2)
Adjustments for investments include
realized and unrealized (gains) losses on equity securities, net
(as stated in Table 1), as well as the equity in net (income)
losses of investees, net, for certain equity method investments,
including Atairos and Hulu and costs related to our investment
portfolio.
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
Realized and unrealized (gains) losses on
equity securities, net
($106
)
($118
)
($532
)
($65
)
Equity in net (income) losses of
investees, net and other
(538
)
210
(1,589
)
506
Investments before income taxes
(644
)
92
(2,121
)
441
Investments, net of tax
($486
)
$70
($1,608
)
$334
(3)
2021 year to date net income attributable
to Comcast Corporation includes $498 million of income tax expense
adjustments related to UK tax law changes. 3rd quarter and year to
date 2020 net income attributable to Comcast Corporation includes
$145 million of income tax expense adjustments related to certain
tax law changes.
(4)
Year to date 2021 net income attributable
to Comcast Corporation includes $78 million of interest expense,
$59 million net of tax, resulting from the early redemption of
debt. 3rd quarter and year to date 2020 net income attributable to
Comcast Corporation includes $220 million and $360 million of
interest expense, $166 million and $272 million net of tax,
respectively, resulting from the early redemption of debt.
(5)
3rd quarter and year to date 2020 net
income attributable to Comcast Corporation includes $177 million of
other operating and administrative expense, $134 million net of
tax, related to a legal settlement.
(6)
3rd quarter and year to date 2021 net
income attributable to Comcast Corporation includes ($1) million
and $24 million of operating costs and expenses, $(1) million and
$20 million net of tax, respectively, related to the Sky
transaction. 3rd quarter and year to date 2020 net income
attributable to Comcast Corporation includes $10 million and $40
million of operating costs and expenses, $8 million and $32 million
net of tax, respectively, related to the Sky transaction.
TABLE 6
Reconciliation of Sky Constant Currency
Growth (Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions)
2021
2020(1)
Change
2021
2020(1)
Change
Direct-to-Consumer
$4,127
$4,131
(0.1
%)
$12,415
$12,044
3.1
%
Content
300
407
(26.4
%)
1,013
1,021
(0.7
%)
Advertising
561
485
15.6
%
1,777
1,399
27.0
%
Revenue
$4,988
$5,023
(0.7
%)
$15,205
$14,464
5.1
%
Operating costs and expenses
$4,016
$4,472
(10.2
%)
$13,310
$12,484
6.6
%
Adjusted EBITDA
$971
$551
76.2
%
$1,895
$1,981
(4.3
%)
(1)
2020 results for entities reporting in currencies other than
United States dollars are converted into United States dollars
using the average exchange rates from the current period rather
than the actual exchange rates in effect during the respective
periods.
TABLE 7
Reconciliation of Cable Communications
RSN Adjustments (Unaudited)
Three Months Ended
Nine Months Ended
September 30, 2021
September 30, 2021
Reported
Change
2020 RSN
Adjustments
Adjusted
Change
Reported
Change
2020 RSN
Adjustments
Adjusted
Change
Revenue
Broadband
11.6%
1.1%
10.5%
12.6%
1.0%
11.7%
Video
1.4%
1.4%
—%
1.3%
1.1%
0.1%
Total Revenue
7.4%
1.1%
6.3%
8.1%
0.9%
7.2%
Expenses
Programming and production
7.6%
4.8%
2.8%
8.3%
3.9%
4.4%
Adjusted EBITDA
10.3%
—
10.3%
12.4%
—
12.4%
Adjusted EBITDA margin
120 bps
(40 bps)
160 bps
170 bps
(40 bps)
210 bps
Note: Percentages represent year/year growth rates. Adjusted
EBITDA margin as a percent of Revenue is presented as year/year
basis point changes.
TABLE 8
Reconciliation of Media Revenue
Excluding Olympics (Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)
2021
2020
Growth %
2021
2020
Growth %
Revenue
$6,770
$4,589
47.5
%
$16,955
$13,563
25.0
%
Olympics
1,759
—
1,759
—
Revenue excluding Olympics
$5,011
$4,589
9.2
%
$15,195
$13,563
12.0
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211028005553/en/
Investor Contacts: Marci Ryvicker (215) 286-4781 Jane
Kearns (215) 286-4794 Marc Kaplan (215) 286-6527
Press Contacts: Jennifer Khoury (215) 286-7408 John
Demming (215) 286-8011
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