Comcast Corporation (NASDAQ: CMCSA) today reported results for
the quarter ended March 31, 2022.
"2022 is off to a great start. For the first quarter we reported
healthy growth in adjusted EBITDA and adjusted EPS, generated
significant free cash flow, and increased our return of capital to
shareholders. We also continued to make important organic
investments and strategic decisions, highlighted by yesterday’s
announcement of our new joint venture with Charter. This
partnership demonstrates the benefits of our focus on innovation
and enables us to bring entertainment aggregation and streaming
products that run off our global technology platform to millions
more customers. In cable, we are increasing the capacity of our
broadband network and providing our customers with cutting-edge
equipment that delivers the best in-home experience. Our media
business is performing well, and the scale of our reach is
underscored by our successful broadcast of the Super Bowl and the
Olympics in the same week. These events were viewed by more than
200 million people in the U.S. across NBCUniversal’s platforms,
including Peacock, which had an exceptional quarter. Our recovery
from the pandemic at theme parks has been fantastic and shows no
signs of slowing down. And, at Sky, we are pleased with our
consistently strong results in the U.K. and continued improvement
in Germany and Italy," commented Brian L. Roberts, Chairman and
Chief Executive Officer of Comcast Corporation.
($ in millions, except per share data)
1st
Quarter
Consolidated Results
2022
2021
Change
Revenue
$31,010
$27,205
14.0
%
Net Income Attributable to Comcast
$3,549
$3,329
6.6
%
Adjusted Net Income1
$3,900
$3,529
10.5
%
Adjusted EBITDA2
$9,150
$8,413
8.8
%
Earnings per Share3
$0.78
$0.71
9.9
%
Adjusted Earnings per Share1
$0.86
$0.76
13.2
%
Net Cash Provided by Operating
Activities
$7,257
$7,751
(6.4
%)
Free Cash Flow4
$4,760
$5,280
(9.9
%)
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.
1st Quarter 2022 Highlights:
- Consolidated Adjusted EBITDA Increased 8.8% to $9.2 Billion;
Adjusted EPS Increased 13.2% to $0.86; Generated Free Cash Flow of
$4.8 Billion
- Returned $4.2 Billion to Shareholders Through a Combination of
$1.2 Billion in Dividend Payments and $3.0 Billion in Share
Repurchases
- Cable Communications Adjusted EBITDA Increased 6.5% and
Adjusted EBITDA per Customer Relationship Increased 3.3%
- Cable Communications Total Customer Relationship Net Additions
Were 194,000; Total Broadband Customer Net Additions Were 262,000
and Benefited From the Highest Level of Customer Retention on
Record for Any Quarter
- Cable Communications Wireless Customer Line Net Additions Were
318,000, the Best Quarterly Result Since Launch in 2017
- NBCUniversal Adjusted EBITDA Increased 7.4% to $1.6 Billion,
Including Peacock Losses
- Theme Parks Adjusted EBITDA Increased $512 Million to $451
Million, Reflecting Improved Results at Each Park Compared to the
Prior Year Period and the Opening of Universal Beijing Resort in
September 2021. Universal Orlando Generated Its Highest Adjusted
EBITDA on Record for a First Quarter
- More Than 200 Million People in the U.S. Watched Either The
NFL's Super Bowl or the 2022 Beijing Olympics on NBC, Peacock, and
Our Other Platforms
- Sky Adjusted EBITDA Increased 71.0% to $622 Million; On a
Constant Currency Basis, Adjusted EBITDA Increased 71.2%
Consolidated Financial Results
Revenue for the first quarter of 2022 increased 14.0% to
$31.0 billion. Net Income Attributable to Comcast increased
6.6% to $3.5 billion. Adjusted Net Income increased 10.5% to
$3.9 billion. Adjusted EBITDA increased 8.8% to $9.2
billion.
Earnings per Share (EPS) for the first quarter of 2022
was $0.78, an increase of 9.9% compared to the prior year period.
Adjusted EPS increased 13.2% to $0.86.
Capital Expenditures of $1.9 billion in the first quarter
of 2022 were consistent with the prior year period. Cable
Communications’ capital expenditures of $1.4 billion were
consistent with the prior year period. NBCUniversal’s capital
expenditures increased 77.8% to $306 million. Sky's capital
expenditures decreased 45.8% to $147 million.
Net Cash Provided by Operating Activities was $7.3
billion in the first quarter of 2022. Free Cash Flow was
$4.8 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 first quarter of
2022, Comcast paid dividends totaling $1.2 billion and repurchased
62.5 million of its common shares for $3.0 billion, resulting in a
total return of capital to shareholders of $4.2 billion, compared
to $1.1 billion in the prior year period.
Cable Communications
($ in millions)
1st
Quarter
2022
2021
Change
Cable Communications Revenue
Broadband
$6,050
$5,600
8.0
%
Video
5,536
5,623
(1.5
%)
Voice
786
871
(9.8
%)
Wireless
677
513
32.0
%
Business Services
2,396
2,167
10.6
%
Advertising
671
618
8.6
%
Other
424
413
2.7
%
Cable Communications Revenue
$16,540
$15,805
4.7
%
Cable Communications Adjusted
EBITDA
$7,272
$6,830
6.5
%
Adjusted EBITDA Margin
44.0%
43.2%
Cable Communications Capital
Expenditures
$1,367
$1,370
(0.3
%)
Percent of Cable Communications
Revenue
8.3%
8.7%
Revenue for Cable Communications increased 4.7% to $16.5
billion in the first quarter of 2022, driven by increases in
broadband, business services, wireless, advertising, and other
revenue, partially offset by decreases in video and voice revenue.
Broadband revenue increased 8.0% due to an increase in the number
of residential broadband customers and an increase in average
rates. Business services revenue increased 10.6% due to an increase
in average rates, an increase in the number of customers receiving
our services, and from a recent acquisition. Wireless revenue
increased 32.0%, primarily due to an increase in the number of
customer lines. Advertising revenue increased 8.6%, primarily
driven by increases in political advertising and advertising at our
Xumo streaming service, as well as at our advanced advertising
businesses. Excluding political advertising revenue, advertising
revenue increased 6.0%. Other revenue increased 2.7%, primarily
reflecting increases in revenue from licensing of our technology
platforms and from our security and automation services. Video
revenue decreased 1.5%, reflecting a decrease in the number of
residential video customers, partially offset by an increase in
average rates. Voice revenue decreased 9.8%, primarily reflecting a
decrease in the number of residential voice customers.
Total Customer Relationships increased by 194,000 to 34.4
million in the first quarter of 2022. Residential customer
relationships increased by 185,000 and business customer
relationships increased by 9,000. Total broadband customer net
additions were 262,000, total video customer net losses were
512,000, and total voice customer net losses were 282,000. In
addition, Cable Communications added 318,000 wireless lines in the
quarter.
(in thousands)
Net
Additions
1Q22
1Q21
2022
2021
Customer Relationships
Residential Customer Relationships
31,913
31,062
185
370
Business Services Customer
Relationships
2,498
2,437
9
11
Total Customer Relationships
34,412
33,499
194
380
Residential Customer Relationships
Mix
One Product Residential Customers
14,816
12,997
486
589
Two Product Residential Customers
8,364
8,645
(43
)
(89
)
Three or More Product Residential
Customers
8,733
9,420
(259
)
(130
)
Residential Broadband Customers
29,836
28,774
253
448
Business Services Broadband Customers
2,327
2,261
9
12
Total Broadband Customers
32,163
31,034
262
461
Residential Video Customers
17,011
18,590
(484
)
(404
)
Business Services Video Customers
654
765
(27
)
(87
)
Total Video Customers
17,664
19,355
(512
)
(491
)
Residential Voice Customers
8,781
9,533
(282
)
(112
)
Business Services Voice Customers
1,391
1,363
(1
)
6
Total Voice Customers
10,171
10,896
(282
)
(106
)
Total Wireless Lines
4,298
3,103
318
278
Adjusted EBITDA for Cable Communications increased 6.5%
to $7.3 billion in the first quarter of 2022, reflecting higher
revenue, partially offset by a 3.3% increase in operating expenses.
In the first quarter of 2022, programming costs decreased 1.1%,
reflecting a decline in the number of video subscribers, partially
offset by the timing of contract renewals. Non-programming expenses
increased 6.3%, primarily reflecting higher technical and product
support expenses, other expenses, and advertising, marketing and
promotion expenses, partially offset by lower franchise and
regulatory fees and customer service expenses. Non-programming
expenses per customer relationship increased 3.2%. Adjusted EBITDA
per customer relationship increased 3.3%, and Adjusted EBITDA
margin was 44.0% compared to 43.2% in the prior year period.
Capital Expenditures for Cable Communications of $1.4
billion in the first quarter of 2022 were consistent with the prior
year period, primarily reflecting increased investment in support
capital, partially offset by decreased investment in customer
premise equipment and line extensions. Cable capital expenditures
represented 8.3% of Cable revenue in the first quarter of 2022
compared to 8.7% in the prior year period.
NBCUniversal
($ in millions)
1st
Quarter
2022
2021
Change
NBCUniversal Revenue
Media
$6,865
$5,036
36.3
%
Excluding Olympics and Super Bowl5
$5,383
$5,036
6.9
%
Studios
2,757
2,396
15.1
%
Theme Parks
1,560
619
151.9
%
Headquarters and other
16
16
1.9
%
Eliminations
(901
)
(1,043
)
13.5
%
NBCUniversal Revenue
$10,296
$7,024
46.6
%
NBCUniversal Adjusted EBITDA
Media
$1,159
$1,473
(21.3
%)
Studios
245
497
(50.7
%)
Theme Parks
451
(61
)
NM
Headquarters and other
(191
)
(209
)
8.3
%
Eliminations
(62
)
(210
)
70.4
%
NBCUniversal Adjusted EBITDA
$1,601
$1,490
7.4
%
NM=comparison not meaningful.
Revenue for NBCUniversal increased 46.6% to $10.3 billion
in the first quarter of 2022, including $1.5 billion of incremental
revenue from the 2022 Beijing Olympics and the NFL's Super Bowl
included in the Media segment. Adjusted EBITDA increased
7.4% to $1.6 billion.
Media Media revenue increased 36.3% to $6.9 billion in
the first quarter of 2022, primarily reflecting higher advertising
revenue and distribution revenue. Excluding $963 million of revenue
generated by the broadcast of the 2022 Beijing Olympics and $519
million of revenue generated by the broadcast of the NFL's Super
Bowl, Media revenue increased 6.9%5. Advertising revenue increased
59.2%, driven by the broadcasts of the 2022 Beijing Olympics and
the NFL's Super Bowl, and additional Peacock sales. Distribution
revenue increased 21.6%, reflecting the broadcast of the 2022
Beijing Olympics, increases at Peacock, as well as contractual rate
increases, partially offset by a decline in subscribers at our
networks. Adjusted EBITDA decreased 21.3% to $1.2 billion in the
first quarter of 2022, 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 associated with the
broadcasts of 2022 Beijing Olympics and the NFL's Super Bowl, as
well as higher programming costs at Peacock. Media results include
$472 million of revenue and an Adjusted EBITDA6 loss of $456
million related to Peacock, including amounts attributable to the
2022 Beijing Olympics and the NFL's Super Bowl, compared to $91
million of revenue and an Adjusted EBITDA6 loss of $277 million in
the prior year period.
Studios Studios revenue increased 15.1% to $2.8 billion
in the first quarter of 2022, primarily reflecting higher content
licensing revenue and theatrical revenue. Content licensing revenue
increased 9.8%, driven by film and television content licensing,
and reflects the comparison to the same period last year which
included a new licensing agreement for content that became
exclusively available for streaming on Peacock. Theatrical revenue
increased $129 million to $168 million, primarily driven by the
recent release, Sing 2, and a favorable comparison to the prior
year period, which was adversely impacted by theater closures and
theaters operating at reduced capacity due to COVID-19. Adjusted
EBITDA decreased 50.7% to $245 million in the first quarter of
2022, reflecting higher operating expenses, which more than offset
higher revenue, including the comparison to the licensing agreement
for content on Peacock in the prior year period. 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 ahead of upcoming film releases.
Theme Parks Theme Parks revenue increased $941 million to
$1.6 billion in the first quarter of 2022, reflecting improved
operating conditions compared to the prior year period, when each
of our theme parks in the U.S. and Japan was either operating at
limited capacity or closed as a result of COVID-19, and also the
opening of Universal Beijing Resort in September 2021. Theme Parks
Adjusted EBITDA was $451 million in the first quarter of 2022,
compared to a loss of $61 million in the prior year period.
Headquarters and Other NBCUniversal Headquarters and
Other includes overhead, personnel costs and costs associated with
corporate initiatives. Headquarters and Other Adjusted EBITDA loss
in the first quarter of 2022 was $191 million, compared to a loss
of $209 million in the prior year period.
Eliminations Amounts represent eliminations of
transactions between our NBCUniversal segments, which are affected
by the timing of recognition of content licenses between our
Studios and Media segments. Revenue eliminations in the first
quarter of 2022 were $901 million, compared to $1.0 billion in the
prior year period, and Adjusted EBITDA eliminations were a loss of
$62 million, compared to a loss of $210 million in the prior year
period. The year-over-year changes were primarily driven by the
licensing of content by the Studios segment to Peacock in the Media
segment.
Sky
($ in millions)
1st
Quarter
2022
2021
Change
Constant Currency Change7
Sky Revenue
Direct-to-Consumer
$3,884
$4,065
(4.5
%)
(0.4
%)
Content
295
358
(17.5
%)
(14.3
%)
Advertising
596
574
3.8
%
7.9
%
Sky Revenue
$4,775
$4,997
(4.5
%)
(0.5
%)
Sky Operating Costs and
Expenses
$4,153
$4,633
(10.4
%)
(6.3
%)
Sky Adjusted EBITDA
$622
$364
71.0
%
71.2
%
Adjusted EBITDA Margin
13.0%
7.3%
Revenue for Sky decreased 4.5% to $4.8 billion in the
first quarter of 2022. Excluding the impact of currency, revenue
was consistent with the prior year period, reflecting lower content
revenue, higher advertising revenue, and consistent
direct-to-consumer revenue. Content revenue decreased 14.3% to $295
million due to a change in sports programming licensing agreements
in Italy and Germany. Advertising revenue increased 7.9% to $596
million, primarily reflecting higher advertising revenue in the
U.K. due to an overall market improvement compared to the prior
year period, partially offset by lower advertising revenue in Italy
due to the negative impact of the reduction in Sky's broadcast
rights to Serie A. Direct-to-consumer revenue of $3.9 billion was
consistent with the prior year period, primarily reflecting
increases in average revenue per customer relationship and customer
relationships in the U.K., offset by a decrease in customer
relationships and average revenue per relationship in Italy which
included the impact of the reduction in Sky's broadcast rights to
Serie A.
Total Customer Relationships decreased by 106,000 to 22.9
million in the first quarter of 2022, reflecting a decrease in
customer relationships in Italy, partially offset by an increase in
customer relationships in the U.K. and Germany.
(in thousands)
Customers
Net
Additions
1Q22
1Q21
2021
2020
Total Customer Relationships
22,921
23,446
(106)
221
Adjusted EBITDA for Sky increased 71.0% to $622 million
in the first quarter of 2022. Excluding the impact of currency,
Adjusted EBITDA increased 71.2% compared to the prior year period,
primarily reflecting lower operating expenses. The decrease in
operating expenses was due to lower programming and production
expenses, primarily reflecting resets in our sports rights in Italy
and Germany.
Corporate, Other and Eliminations
Corporate and Other Corporate and Other primarily relates
to corporate operations, Comcast Spectacor, and our new smart TV
initiatives, Sky Glass and XClass TV. Revenue in the first quarter
of 2022 was $238 million compared to $89 million in the prior year
period. Corporate and Other Adjusted EBITDA loss was $262 million,
including losses from Sky Glass and XClass TV during the period,
compared to a loss of $281 million in the prior year period which
reflected the impact of COVID-19 on Spectacor operations.
Eliminations Amounts represent eliminations of
transactions between Cable Communications, NBCUniversal, Sky and
other businesses. Eliminations of transactions between NBCUniversal
segments are presented separately. Revenue eliminations in the
first quarter of 2022 were $840 million compared to $710 million in
the prior year period, and Adjusted EBITDA eliminations were a loss
of $82 million compared to a benefit of $10 million in the prior
year period. Current year amounts reflect an increase in
eliminations associated with the 2022 Beijing Olympics.
Notes:
1
We define Adjusted Net Income and Adjusted
EPS as net income attributable to Comcast Corporation and diluted
earnings per common share attributable to Comcast Corporation
shareholders, respectively, adjusted to exclude the effects of the
amortization of acquisition-related intangible assets, investments
that investors may want to evaluate separately (such as based on
fair value) and the impact of certain events, gains, losses or
other charges that affect period-over-period comparisons. See Table
5 for reconciliations of non-GAAP financial measures.
2
We define Adjusted EBITDA as net income
attributable to Comcast Corporation before net income (loss)
attributable to noncontrolling interests, income tax expense,
investment and other income (loss), net, interest expense,
depreciation and amortization expense, and other operating gains
and losses (such as impairment charges related to fixed and
intangible assets and gains or losses on the sale of long-lived
assets), if any. From time to time, we may exclude from Adjusted
EBITDA the impact of certain events, gains, losses or other charges
(such as significant legal settlements) that affect the
period-to-period comparability of our operating performance. See
Table 4 for reconciliation of non-GAAP financial measure.
3
All earnings per share amounts are
presented on a diluted basis.
4
We define Free Cash Flow as net cash
provided by operating activities (as stated in our Consolidated
Statement of Cash Flows) reduced by capital expenditures and cash
paid for intangible assets. From time to time, we may exclude from
Free Cash Flow the impact of certain cash receipts or payments
(such as significant legal settlements) that affect
period-to-period comparability. Cash payments related to certain
capital or intangible assets, such as the construction of Universal
Beijing Resort, are presented separately in our Consolidated
Statement of Cash Flows and are therefore excluded from capital
expenditures and cash paid for intangible assets for Free Cash
Flow. See Table 4 for reconciliation of non-GAAP financial
measure.
5
From time to time, we may present adjusted
information (e.g., Adjusted Revenues) to exclude the impact of
certain events, gains, losses or other charges affecting
period-to-period comparability of our operating performance. See
Table 7 for reconciliations of non-GAAP financial measures.
6
Adjusted EBITDA is the measure of profit
or loss for our segments. From time to time, we may present
Adjusted EBITDA for components of our reportable segments, such as
Peacock. We believe these measures are useful to evaluate our
financial results and provide a basis of comparison to others,
although our definition of Adjusted EBITDA may not be directly
comparable to similar measures used by other companies. Adjusted
EBITDA for components are generally presented on a consistent basis
with the respective segments and include direct revenue and
operating costs and expenses attributed to the component
operations.
7
Sky constant currency growth rates are
calculated by comparing the current period results to the
comparative period results in the prior year adjusted to reflect
the average exchange rates from the current year period rather than
the actual exchange rates in effect during the respective prior
year periods. See Table 6 for reconciliation of Sky's constant
currency growth.
Numerical information is presented on a
rounded basis using actual amounts. Minor differences in totals and
percentage calculations may exist due to rounding.
Conference Call and Other Information Comcast Corporation
will host a conference call with the financial community today,
April 28, 2022 at 8:30 a.m. Eastern Time (ET). The conference call
and related materials will be broadcast live and posted on our
Investor Relations website at www.cmcsa.com. Those parties
interested in participating via telephone should dial (833)
618-9487. A replay of the call will be available starting at 12:00
p.m. ET on Thursday, April 28, 2022 on the Investor Relations
website or by telephone. To access the telephone replay, which will
be available until Thursday, May 5, 2022 at midnight ET, please
dial (855) 859-2056 and enter the conference ID number 5683886.
From time to time, we post information that may be of interest
to investors on our website at www.cmcsa.com and on our corporate
website, www.comcastcorporation.com. To automatically receive
Comcast financial news by email, please visit www.cmcsa.com and
subscribe to email alerts.
Caution Concerning Forward-Looking Statements This press
release includes statements that may constitute forward-looking
statements. Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date they
are made, and involve risks and uncertainties that could cause
actual events or our actual results to differ materially from those
expressed in any such forward-looking statements. In evaluating
these statements, readers should consider various factors,
including the risks and uncertainties we describe in the “Risk
Factors” sections of our most recent Annual Report on Form 10-K,
our most recent Quarterly Report on Form 10-Q and other reports
filed with the Securities and Exchange Commission (SEC). We
undertake no obligation to update or revise publicly any
forward-looking statements, whether because of new information,
future events or otherwise.
Non-GAAP Financial Measures In this discussion, we
sometimes refer to financial measures that are not presented
according to generally accepted accounting principles in the U.S.
(GAAP). Certain of these measures are considered “non-GAAP
financial measures” under the SEC regulations; those rules require
the supplemental explanations and reconciliations that are in
Comcast’s Form 8-K (Quarterly Earnings Release) furnished to the
SEC.
About Comcast Corporation Comcast Corporation (Nasdaq:
CMCSA) is a global media and technology company that connects
people to moments that matter. We are principally focused on
connectivity, aggregation, and streaming with 57 million customer
relationships across the United States and Europe. We deliver
broadband, wireless, and video through our Xfinity, Comcast
Business, and Sky brands; create, distribute, and stream leading
entertainment, sports, and news through Universal Filmed
Entertainment Group, Universal Studio Group, Sky Studios, the NBC
and Telemundo broadcast networks, multiple cable networks, Peacock,
NBCUniversal News Group, NBC Sports, Sky News, and Sky Sports; and
provide memorable experiences at Universal Parks and Resorts in the
United States and Asia. Visit www.comcastcorporation.com for more
information.
TABLE 1Condensed Consolidated Statement of Income
(Unaudited)
Three Months Ended
(in millions, except per share data)
March 31,
2022
2021
Revenue
$31,010
$27,205
Costs and expenses
Programming and production
10,570
8,919
Other operating and administrative
9,260
8,269
Advertising, marketing and promotion
2,062
1,616
Depreciation
2,213
2,117
Amortization
1,335
1,245
25,440
22,166
Operating income
5,569
5,039
Interest expense
(993
)
(1,018
)
Investment and other income (loss),
net
Equity in net income (losses) of
investees, net
133
136
Realized and unrealized gains (losses) on
equity securities, net
117
237
Other income (loss), net
(62
)
17
188
390
Income before income taxes
4,764
4,411
Income tax expense
(1,288
)
(1,119
)
Net income
3,476
3,292
Less: Net income (loss) attributable to
noncontrolling interests
(73
)
(37
)
Net income attributable to Comcast
Corporation
$3,549
$3,329
Diluted earnings per common share
attributable to Comcast Corporation shareholders
$0.78
$0.71
Diluted weighted-average number of common
shares
4,558
4,665
TABLE 2Consolidated Statement of Cash Flows (Unaudited)
Three Months Ended
(in millions)
March 31,
2022
2021
OPERATING ACTIVITIES
Net income
$3,476
$3,292
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
3,548
3,362
Share-based compensation
376
373
Noncash interest expense (income), net
93
62
Net (gain) loss on investment activity and
other
(113
)
(239
)
Deferred income taxes
106
28
Changes in operating assets and
liabilities, net of effects of acquisitions and divestitures:
Current and noncurrent receivables,
net
(527
)
554
Film and television costs, net
363
393
Accounts payable and accrued expenses
related to trade creditors
314
(198
)
Other operating assets and liabilities
(379
)
124
Net cash provided by operating
activities
7,257
7,751
INVESTING ACTIVITIES
Capital expenditures
(1,856
)
(1,859
)
Cash paid for intangible assets
(641
)
(612
)
Construction of Universal Beijing
Resort
(147
)
(428
)
Acquisitions, net of cash acquired
—
(147
)
Proceeds from sales of businesses and
investments
69
388
Purchases of investments
(66
)
(52
)
Other
44
98
Net cash provided by (used in) investing
activities
(2,597
)
(2,612
)
FINANCING ACTIVITIES
Proceeds from borrowings
117
192
Repurchases and repayments of debt
(104
)
(124
)
Repurchases of common stock under
repurchase program and employee plans
(3,223
)
(309
)
Dividends paid
(1,166
)
(1,080
)
Other
(114
)
(577
)
Net cash provided by (used in) financing
activities
(4,490
)
(1,898
)
Impact of foreign currency on cash, cash
equivalents and restricted cash
(35
)
(33
)
Increase (decrease) in cash, cash
equivalents and restricted cash
135
3,208
Cash, cash equivalents and restricted
cash, beginning of period
8,778
11,768
Cash, cash equivalents and restricted
cash, end of period
$8,914
$14,976
TABLE 3Condensed Consolidated Balance Sheet (Unaudited)
(in millions)
March 31,
December 31,
2022
2021
ASSETS
Current Assets
Cash and cash equivalents
$8,880
$8,711
Receivables, net
12,300
12,008
Other current assets
4,201
4,088
Total current assets
25,381
24,807
Film and television costs
12,360
12,806
Investments
8,287
8,082
Investment securing collateralized
obligation
646
605
Property and equipment, net
53,820
54,047
Goodwill
69,052
70,189
Franchise rights
59,365
59,365
Other intangible assets, net
32,468
33,580
Other noncurrent assets, net
12,694
12,424
$274,074
$275,905
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued expenses
related to trade creditors
$12,707
$12,455
Accrued participations and residuals
1,744
1,822
Deferred revenue
3,018
3,040
Accrued expenses and other current
liabilities
10,071
9,899
Current portion of long-term debt
2,117
2,132
Total current liabilities
29,657
29,348
Long-term debt, less current portion
92,443
92,718
Collateralized obligation
5,171
5,170
Deferred income taxes
29,857
30,041
Other noncurrent liabilities
20,441
20,620
Redeemable noncontrolling interests
513
519
Equity
Comcast Corporation shareholders'
equity
94,693
96,092
Noncontrolling interests
1,300
1,398
Total equity
95,992
97,490
$274,074
$275,905
TABLE 4 Reconciliation from Net Income
Attributable to Comcast Corporation to Adjusted EBITDA
(Unaudited)
Three Months Ended
March 31,
(in millions)
2022
2021
Net income attributable to Comcast
Corporation
$3,549
$3,329
Net income (loss) attributable to
noncontrolling interests
(73
)
(37
)
Income tax expense
1,288
1,119
Interest expense
993
1,018
Investment and other (income) loss,
net
(188
)
(390
)
Depreciation and amortization
3,548
3,362
Adjustments (1)
33
12
Adjusted EBITDA
$9,150
$8,413
Reconciliation from Net Cash Provided
by Operating Activities to Free Cash Flow (Unaudited)
Three Months Ended
March 31,
(in millions)
2022
2021
Net cash provided by operating
activities
$7,257
$7,751
Capital expenditures
(1,856
)
(1,859
)
Cash paid for capitalized software and
other intangible assets
(641
)
(612
)
Free Cash Flow
$4,760
$5,280
Alternate Presentation of Free Cash
Flow (Unaudited)
Three Months Ended
March 31,
(in millions)
2022
2021
Adjusted EBITDA
$9,150
$8,413
Capital expenditures
(1,856
)
(1,859
)
Cash paid for capitalized software and
other intangible assets
(641
)
(612
)
Cash interest expense
(747
)
(911
)
Cash taxes
(90
)
(87
)
Changes in operating assets and
liabilities
(1,475
)
(176
)
Noncash share-based compensation
376
373
Other (2)
42
139
Free Cash Flow
$4,760
$5,280
(1)
1st quarter 2022 and 2021 Adjusted EBITDA
exclude $33 million and $12 million of other operating and
administrative expense, respectively, related to our investment
portfolio, and Sky transaction-related costs in 2021.
(2)
1st quarter 2022 and 2021 include
decreases of $33 million and $12 million, respectively, of costs
related to our investment portfolio, and Sky transaction-related
costs in 2021, as these amounts are excluded from Adjusted
EBITDA.
TABLE 5
Reconciliations of Adjusted Net Income
and Adjusted EPS (Unaudited)
Three Months Ended
March 31,
2022
2021
(in millions, except per share data)
$
EPS
$
EPS
Net income attributable to Comcast
Corporation and diluted earnings per share attributable to Comcast
Corporation shareholders
$3,549
$0.78
$3,329
$0.71
Change
6.6%
9.9%
Amortization of acquisition-related
intangible assets (1)
481
0.11
477
0.11
Investments (2)
(130)
(0.03)
(287)
(0.06)
Items affecting period-over-period
comparability:
Costs related to Sky transaction (3)
—
—
10
—
Adjusted Net income and Adjusted
EPS
$3,900
$0.86
$3,529
$0.76
Change
10.5%
13.2%
(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
March 31,
2022
2021
Amortization of acquisition-related
intangible assets before income taxes
$592
$592
Amortization of acquisition-related
intangible assets, net of tax
$481
$477
(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
March 31,
2022
2021
Realized and unrealized (gains) losses on
equity securities, net
($117
)
($237
)
Equity in net (income) losses of
investees, net and other
(55
)
(133
)
Investments before income taxes
(172
)
(370
)
Investments, net of tax
($130
)
($287
)
(3)
1st quarter 2021 net income attributable to Comcast Corporation
includes $12 million of operating costs and expenses, $10 million
net of tax, related to the Sky transaction.
TABLE 6Reconciliation of Sky Constant Currency Growth
(Unaudited)
Three Months Ended
March 31,
(in millions)
2022
20211
Change
Direct-to-Consumer
$3,884
$ 3,901
(0.4
%)
Content
295
$ 345
(14.3
%)
Advertising
596
$ 552
7.9
%
Revenue
$4,775
$ 4,797
(0.5
%)
Operating costs and expenses
$4,153
$4,434
(6.3
%)
Adjusted EBITDA
$622
$363
71.2
%
(1)
2021 results for entities reporting in currencies other than
United States dollars are converted into United States dollars
using the average exchange rates from the current period rather
than the actual exchange rates in effect during the respective
periods.
TABLE 7Reconciliation of Media Revenue Excluding Olympics
and 2022 Super Bowl (Unaudited)
Three Months Ended
March 31,
(in millions)
2022
2021
Growth %
Revenue
$6,865
$5,036
36.3
%
Beijing Olympics
963
—
2022 Super Bowl
519
—
Revenue excluding Olympics and 2022 Super
Bowl
$5,383
$5,036
6.9
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220428005073/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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