Comcast Corporation (NASDAQ: CMCSA) today reported results for the quarter ended June 30, 2019, including Cable Communications, NBCUniversal and Sky.
Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, “I am very pleased with our terrific second quarter results and the continued, successful execution of our strategy. Each of our businesses demonstrated healthy growth in adjusted EBITDA, contributing to a double-digit increase in adjusted earnings per share. Our company’s consistent, profitable growth is fueled by our leading scale in direct customer relationships and premier content. We now have nearly 55 million high-value direct customer relationships, including the 456,000 net additions in the second quarter, and a vast library of intellectual property and new productions that are extremely popular across generations and geographies. Our teams throughout the company continue to collaborate to make themselves and each other even stronger, and I’m excited about our growth opportunities ahead.”
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($ in millions, except per share data) |
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2nd Quarter |
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Year to Date |
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Consolidated Results |
2018 5 |
2019 |
Growth |
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2018 5 |
2019 |
Growth |
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Revenue |
$21,735 |
$26,858 |
23.6% |
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$44,526 |
$53,717 |
20.6% |
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Net Income Attributable to Comcast |
$3,216 |
$3,125 |
(2.8%) |
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$6,334 |
$6,678 |
5.4% |
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Adjusted EBITDA1 |
$7,417 |
$8,716 |
17.5% |
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$14,661 |
$17,269 |
17.8% |
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Earnings per Share2 |
$0.69 |
$0.68 |
(1.4%) |
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$1.36 |
$1.45 |
6.6% |
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Earnings per Share, Adjusted Basis3 (see Table 5) |
$0.69 |
$0.78 |
13.0% |
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$1.33 |
$1.54 |
15.8% |
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Net Cash Provided by Operating Activities |
$7,063 |
$7,040 |
(0.3%) |
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$12,537 |
$14,271 |
13.8% |
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Free Cash Flow4 |
$4,302 |
$4,246 |
(1.3%) |
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$7,384 |
$8,838 |
19.7% |
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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 2nd Quarter 2019 Highlights:
- Consolidated Adjusted EBITDA Increased 17.5%
- Earnings per Share Increased 13.0% to $0.78, on an Adjusted Basis
- Generated Free Cash Flow of $4.2 Billion
Cable Communications 2nd Quarter 2019 Highlights:
- Cable Communications Adjusted EBITDA Increased 7.4% and Adjusted EBITDA per Customer Relationship Increased 3.8%
- Total Customer Relationships Increased 3.4% Year-Over-Year to 30.9 Million, Including Net Additions of 152,000 in the Quarter
- High-Speed Internet Residential Revenue Increased 9.4%; Business Services Revenue Increased 9.8%; Total High-Speed Internet Customers Increased by 209,000
NBCUniversal 2nd Quarter 2019 Highlights:
- NBCUniversal Adjusted EBITDA Increased 8.1%
- Cable Networks and Broadcast Television Adjusted EBITDA Collectively Increased 9.0%
- NBCUniversal Successfully Completed Another Record Upfront, Highlighted by Overall Volume Up 10% to Nearly $7 Billion and a Double-Digit Price Increase at NBC Prime
Sky 2nd Quarter 2019 Highlights:
- Sky Adjusted EBITDA Increased 13.4% on a Pro Forma Basis; Excluding the Impact of Currency, Adjusted EBITDA Increased 19.9% on a Pro Forma Basis
- Total Customer Relationships Increased 4.4% Year-Over-Year to 24.0 Million, Including Net Additions of 304,000 in the Quarter, a 197,000 Improvement from the Second Quarter of 2018
Consolidated Financial Results
The comparability of our consolidated results was impacted by the fourth quarter 2018 Sky transaction. Sky’s results of operations are included in our consolidated financial statements following the acquisition date.
Consolidated Revenue for the second quarter of 2019 increased 23.6% to $26.9 billion. Consolidated Net Income Attributable to Comcast decreased 2.8% to $3.1 billion. Consolidated Adjusted EBITDA increased 17.5% to $8.7 billion.
For the six months ended June 30, 2019, consolidated revenue increased 20.6% to $53.7 billion compared to 2018. Consolidated net income attributable to Comcast increased 5.4% to $6.7 billion. Consolidated Adjusted EBITDA increased 17.8% to $17.3 billion.
Earnings per Share (EPS) for the second quarter of 2019 was $0.68, a decrease of 1.4% compared to the second quarter of 2018. On an adjusted basis, EPS increased 13.0% to $0.78 (see Table 5).
For the six months ended June 30, 2019, EPS was $1.45, a 6.6% increase compared to the prior year. On an adjusted basis, EPS increased 15.8% to $1.54 (see Table 5).
Capital Expenditures increased 0.6% to $2.3 billion in the second quarter of 2019. Cable Communications’ capital expenditures decreased 9.8% to $1.6 billion. NBCUniversal’s capital expenditures increased 2.7% to $473 million. Sky had capital expenditures of $177 million.
For the six months ended June 30, 2019, capital expenditures increased 3.1% to $4.4 billion compared to 2018. Cable Communications’ capital expenditures decreased 14.5% to $3.0 billion. NBCUniversal’s capital expenditures increased 26.9% to $926 million. Sky had capital expenditures of $436 million.
Net Cash Provided by Operating Activities was $7.0 billion in the second quarter of 2019. Free Cash Flow was $4.2 billion (see Table 4).
For the six months ended June 30, 2019, net cash provided by operating activities was $14.3 billion. Free cash flow was $8.8 billion (see Table 4).
Dividends paid during the second quarter of 2019 totaled $954 million.
Consolidated Pro Forma Financial Results
Pro forma results are presented as if the Sky transaction occurred on January 1, 2017. The pro forma amounts are based on historical results of operations and are primarily adjusted for the allocation of purchase price and excluding costs directly related to the transaction. These amounts are not necessarily indicative of what our results would have been had we operated Sky since January 1, 2017, (see Table 7 for reconciliations of pro forma financial data).
Consolidated Pro Forma Revenue for the second quarter of 2019 increased 0.8% to $26.9 billion. Consolidated Pro Forma Adjusted EBITDA increased 7.6% to $8.7 billion.
For the six months ended June 30, 2019, consolidated pro forma revenue decreased 1.3% to $53.7 billion compared to 2018. Consolidated Pro Forma Adjusted EBITDA increased 7.0% to $17.3 billion.
Cable Communications
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($ in millions) |
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2nd Quarter |
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Year to Date |
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2018 6 |
2019 |
Growth |
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2018 6 |
2019 |
Growth |
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Cable Communications Revenue |
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High-Speed Internet |
$4,262 |
$4,663 |
9.4% |
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$8,419 |
$9,240 |
9.8% |
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Video |
5,628 |
5,594 |
(0.6%) |
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11,287 |
11,222 |
(0.6%) |
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Voice |
994 |
982 |
(1.1%) |
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2,000 |
1,972 |
(1.4%) |
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Wireless |
202 |
244 |
21.0% |
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387 |
469 |
21.2% |
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Business Services |
1,761 |
1,933 |
9.8% |
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3,487 |
3,824 |
9.7% |
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Advertising |
666 |
607 |
(8.7%) |
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1,248 |
1,163 |
(6.8%) |
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Other |
399 |
427 |
6.0% |
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787 |
840 |
6.5% |
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Cable Communications Revenue |
$13,912 |
$14,450 |
3.9% |
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$27,615 |
$28,730 |
4.0% |
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Cable Communications Adjusted EBITDA |
$5,449 |
$5,854 |
7.4% |
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$10,666 |
$11,582 |
8.6% |
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Adjusted EBITDA Margin |
39.2% |
40.5% |
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38.6% |
40.3% |
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Cable Communications Capital Expenditures |
$1,767 |
$1,594 |
(9.8%) |
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$3,458 |
$2,957 |
(14.5%) |
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Percent of Cable Communications Revenue |
12.7% |
11.0% |
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12.5% |
10.3% |
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Beginning in the first quarter of 2019, Cable Communications results include our wireless phone service and certain other business development initiatives which were previously presented in Corporate and Other. Prior periods have been adjusted to reflect this presentation. |
Revenue for Cable Communications increased 3.9% to $14.5 billion in the second quarter of 2019, driven primarily by increases in high-speed internet, business services and wireless revenue. High-speed internet revenue increased 9.4%, driven by an increase in the number of residential high-speed internet customers and rate adjustments. Business services revenue increased 9.8%, due to increases in the number of customers receiving our services and rate adjustments. Wireless revenue increased 21.0%, reflecting an increase in the number of customer lines, partially offset by lower device sales as more customers bring their own device. Other revenue increased 6.0%, primarily due to increases in revenue from our security and automation services. Advertising revenue decreased 8.7%, primarily reflecting a decrease in political advertising revenue. Excluding political advertising revenue, advertising revenue decreased 2.5%. Video revenue decreased 0.6%, reflecting a decrease in the number of residential video customers, partially offset by rate adjustments. Voice revenue decreased 1.1%, primarily due to a decrease in the number of residential voice customers.
For the six months ended June 30, 2019, Cable revenue increased 4.0% to $28.7 billion compared to 2018, driven by growth in high-speed internet, business services, wireless and other revenue, partially offset by a decrease in advertising, video and voice revenue.
Total Customer Relationships increased by 152,000 to 30.9 million in the second quarter of 2019. Residential customer relationships increased by 123,000 and business customer relationships increased by 29,000. At the end of the second quarter, 66.6% of our residential customers received at least two Xfinity products. Total high-speed internet customer net additions were 209,000, total video customer net losses were 224,000, total voice customer net losses were 65,000 and total security and automation customer net additions were 23,000. In addition, Cable Communications added 181,000 wireless lines in the quarter.
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(in thousands) |
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Net Additions |
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2Q18 6 |
2Q19 |
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2Q186 |
2Q19 |
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Customer Relationships |
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Residential Customer Relationships |
27,600 |
28,508 |
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163 |
123 |
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Business Services Customer Relationships |
2,244 |
2,356 |
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36 |
29 |
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Total Customer Relationships |
29,843 |
30,864 |
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199 |
152 |
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Residential Customer Relationships Mix |
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One Product Residential Customers |
8,594 |
9,526 |
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204 |
231 |
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Two Product Residential Customers |
8,980 |
8,952 |
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(80) |
(57) |
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Three or More Product Residential Customers |
10,026 |
10,030 |
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39 |
(50) |
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Residential High-Speed Internet Customers |
24,440 |
25,631 |
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226 |
182 |
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Business Services High-Speed Internet Customers |
2,069 |
2,176 |
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34 |
28 |
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Total High-Speed Internet Customers |
26,509 |
27,807 |
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260 |
209 |
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Residential Video Customers |
21,074 |
20,642 |
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(136) |
(209) |
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Business Services Video Customers |
1,047 |
999 |
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(4) |
(15) |
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Total Video Customers |
22,121 |
21,641 |
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(140) |
(224) |
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Residential Voice Customers |
10,213 |
10,008 |
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(32) |
(82) |
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Business Services Voice Customers |
1,269 |
1,324 |
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17 |
17 |
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Total Voice Customers |
11,482 |
11,331 |
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(16) |
(65) |
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Total Security and Automation Customers |
1,236 |
1,356 |
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60 |
23 |
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Total Wireless Lines |
781 |
1,586 |
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204 |
181 |
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Adjusted EBITDA for Cable Communications increased 7.4% to $5.9 billion in the second quarter of 2019, reflecting higher revenue, partially offset by a 1.6% increase in operating expenses. Non-programming expenses increased 1.4%, reflecting higher technical and product support expenses, advertising, marketing and promotion costs and other operating costs, partially offset by decreases in customer service expenses and franchise and other regulatory fees. Non-programming expenses per customer relationship declined 2.0% in the second quarter of 2019. Programming costs increased 1.8%, reflecting normal escalators in programming contracts, partially offset by video subscriber losses. This quarter’s Adjusted EBITDA per customer relationship increased 3.8%, and Adjusted EBITDA margin was 40.5% compared to 39.2% in the second quarter of 2018. Cable Communications results include a loss of $88 million from our wireless business, compared to a loss of $185 million in the prior period.
For the six months ended June 30, 2019, Cable Adjusted EBITDA increased 8.6% to $11.6 billion compared to 2018, driven by higher revenue, partially offset by a 1.2% increase in operating expenses. The higher expenses were due to a 2.3% increase in programming costs and a 0.4% increase in non-programming expenses. For the six months ended June 30, 2019, Adjusted EBITDA per customer relationship increased 4.9%, and Adjusted EBITDA margin was 40.3% compared to 38.6% in 2018. Cable Communications results include a loss of $191 million from our wireless business, compared to a loss of $374 million in the prior period.
Capital Expenditures for Cable Communications decreased 9.8% to $1.6 billion in the second quarter of 2019, reflecting decreased investment in scalable infrastructure and line extensions, partially offset by increased investment in support capital. Cable capital expenditures represented 11.0% of Cable revenue in the second quarter of 2019 compared to 12.7% in last year’s second quarter.
For the six months ended June 30, 2019, Cable capital expenditures decreased 14.5% to $3.0 billion, primarily reflecting decreased investment in scalable infrastructure and a lower level of spending on customer premise equipment. Cable capital expenditures represented 10.3% of Cable revenue compared to 12.5% in 2018.
NBCUniversal
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($ in millions) |
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2nd Quarter |
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Year to Date |
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2018 6 |
2019 |
Growth |
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2018 6 |
2019 |
Growth |
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NBCUniversal Revenue |
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Cable Networks |
$2,874 |
$2,947 |
2.5% |
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$6,031 |
$5,815 |
(3.6%) |
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Excluding Olympics (see Table 6) |
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5,653 |
5,815 |
2.9% |
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Broadcast Television |
2,391 |
2,402 |
0.5% |
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5,888 |
4,869 |
(17.3%) |
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Excluding Olympics and Super Bowl (see Table 6) |
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4,695 |
4,869 |
3.7% |
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Filmed Entertainment |
1,710 |
1,457 |
(14.8%) |
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3,357 |
3,225 |
(3.9%) |
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Theme Parks |
1,361 |
1,464 |
7.5% |
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2,642 |
2,740 |
3.7% |
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Headquarters, other and eliminations |
(63) |
(64) |
NM |
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(148) |
(130) |
NM |
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NBCUniversal Revenue |
$8,273 |
$8,206 |
(0.8%) |
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$17,770 |
$16,519 |
(7.0%) |
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NBCUniversal Adjusted EBITDA |
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Cable Networks |
$1,176 |
$1,201 |
2.2% |
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$2,430 |
$2,463 |
1.4% |
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Broadcast Television |
417 |
534 |
28.3% |
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924 |
921 |
(0.3%) |
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Filmed Entertainment |
138 |
183 |
33.0% |
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341 |
547 |
60.3% |
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Theme Parks |
569 |
590 |
3.8% |
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1,064 |
1,088 |
2.2% |
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Headquarters, other and eliminations |
(150) |
(184) |
NM |
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(338) |
(358) |
NM |
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NBCUniversal Adjusted EBITDA |
$2,150 |
$2,324 |
8.1% |
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$4,421 |
$4,661 |
5.4% |
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NM=comparison not meaningful. |
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Revenue for NBCUniversal decreased 0.8% to $8.2 billion in the second quarter of 2019. Adjusted EBITDA increased 8.1% to $2.3 billion, reflecting increases at Broadcast Television, Filmed Entertainment, Cable Networks and Theme Parks.
For the six months ended June 30, 2019, NBCUniversal revenue decreased 7.0% to $16.5 billion compared to last year’s results, which included an incremental $1.6 billion of revenue generated by the broadcasts of the 2018 PyeongChang Olympics and the NFL’s Super Bowl LII at our TV Businesses. Adjusted EBITDA increased 5.4% to $4.7 billion, reflecting increases at Filmed Entertainment, Cable Networks and Theme Parks.
Cable Networks
Cable Networks revenue increased 2.5% to $2.9 billion in the second quarter of 2019, reflecting higher distribution and content licensing and other revenue. Distribution revenue increased 3.4%, primarily due to contractual rate increases and the timing of contract renewals, partially offset by a decline in subscribers. Content licensing and other revenue increased 5.1%, due to the timing of content provided under licensing agreements. Advertising revenue was consistent with the prior year period, reflecting higher rates, offset by audience ratings declines. Adjusted EBITDA increased 2.2% to $1.2 billion in the second quarter of 2019, reflecting higher revenue, partially offset by higher programming and production costs.
For the six months ended June 30, 2019, revenue from the Cable Networks segment decreased 3.6% to $5.8 billion compared to 2018, reflecting lower advertising, distribution and content licensing and other revenue. Excluding $378 million of revenue generated by the broadcast of the 2018 PyeongChang Olympics in the first quarter of 2018, Cable Networks revenue increased 2.9% (see Table 6). Adjusted EBITDA increased 1.4% to $2.5 billion compared to 2018, reflecting lower revenue, more than offset by lower operating costs and expenses, including programming and production costs, due to the broadcast of the 2018 PyeongChang Olympics in the first quarter of 2018.
Broadcast Television
Broadcast Television revenue increased 0.5% to $2.4 billion in the second quarter of 2019, reflecting increased distribution and other revenue, partially offset by a decrease in advertising and content licensing revenue. Distribution and other revenue increased 14.7%, primarily due to higher retransmission consent fees. Advertising revenue decreased 4.2%, primarily due to the absence of revenue generated by Telemundo’s broadcast of the 2018 FIFA World Cup RussiaTM. Excluding this event, advertising revenue increased mid-single-digits, reflecting higher pricing, partially offset by audience ratings declines. Content licensing revenue decreased 1.7%, reflecting the timing of content provided under licensing agreements. Adjusted EBITDA increased 28.3% to $534 million in the second quarter of 2019, primarily reflecting a decrease in programming and production costs, due to Telemundo’s broadcast of the 2018 FIFA World Cup RussiaTM.
For the six months ended June 30, 2019, revenue from the Broadcast Television segment decreased 17.3% to $4.9 billion compared to 2018, primarily reflecting a decrease in advertising revenue. Excluding $770 million of revenue generated by the broadcast of the 2018 PyeongChang Olympics in the first quarter of 2018 and $423 million of revenue generated by the broadcast of the NFL’s Super Bowl LII in the first quarter of 2018, Broadcast Television revenue increased 3.7% compared to 2018 (see Table 6). Adjusted EBITDA decreased 0.3% to $921 million compared to 2018, with lower revenue offset by a decrease in programming and production costs, primarily due to decreased sports programming costs associated with the broadcasts of the 2018 PyeongChang Olympics and the NFL’s Super Bowl LII in the first quarter of 2018.
Filmed Entertainment
Filmed Entertainment revenue decreased 14.8% to $1.5 billion in the second quarter of 2019, primarily due to lower theatrical revenue. Theatrical revenue decreased 53.1%, reflecting the strength of releases in last year’s second quarter, including Jurassic World: Fallen Kingdom, partially offset by the performance of The Secret Life of Pets 2 in this year’s second quarter. Content licensing revenue increased 9.8%, driven by the timing of when content was made available under licensing agreements. Adjusted EBITDA increased by 33.0% to $183 million in the second quarter of 2019, reflecting lower revenue more than offset by lower programming and production costs.
For the six months ended June 30, 2019, revenue from the Filmed Entertainment segment decreased 3.9% to $3.2 billion compared to 2018, reflecting lower theatrical and other revenue, partially offset by higher content licensing and home entertainment revenue. Adjusted EBITDA increased 60.3% to $547 million compared to 2018, reflecting lower revenue more than offset by lower operating expenses.
Theme Parks
Theme Parks revenue increased 7.5% to $1.5 billion in the second quarter of 2019, primarily due to higher attendance, aided by the timing of spring holidays, and increases in guest spending. Adjusted EBITDA increased 3.8% to $590 million in the second quarter of 2019, reflecting an increase in revenue, partially offset by higher operating expenses, including costs to support new attractions, including Hagrid’s Magical Creatures Motorbike AdventureTM in Orlando.
For the six months ended June 30, 2019, revenue from the Theme Parks segment increased 3.7% to $2.7 billion compared to 2018, primarily due to increases in attendance. Adjusted EBITDA increased 2.2% to $1.1 billion compared to 2018, reflecting an increase in revenue, partially offset by higher operating expenses.
Headquarters, Other and Eliminations
NBCUniversal Headquarters, Other and Eliminations include overhead and eliminations among the NBCUniversal businesses. For the quarter ended June 30, 2019, NBCUniversal Headquarters, Other and Eliminations Adjusted EBITDA loss was $184 million, compared to a loss of $150 million in the second quarter of 2018.
For the six months ended June 30, 2019, NBCUniversal Headquarters, Other and Eliminations adjusted EBITDA loss was $358 million compared to a loss of $338 million in 2018.
Sky
Pro forma results are presented as if the Sky transaction occurred on January 1, 2017. The pro forma amounts are based on historical results of operations and are primarily adjusted for the allocation of purchase price and excluding costs directly related to the transaction. These amounts are not necessarily indicative of what our results would have been had we operated Sky since January 1, 2017, (see Table 7 for reconciliations of pro forma financial data).
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($ in millions) (pro forma) |
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2nd Quarter |
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Year to Date |
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2018 |
2019 |
Growth |
Constant Currency Growth7 |
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2018 |
2019 |
Growth |
Constant Currency Growth7 |
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Sky Revenue |
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Direct-to-Consumer |
$4,049 |
$3,889 |
(4.0%) |
1.7% |
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$8,181 |
$7,723 |
(5.6%) |
0.6% |
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Content |
311 |
376 |
21.0% |
27.7% |
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597 |
746 |
25.1% |
32.6% |
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Advertising |
631 |
563 |
(10.7%) |
(5.6%) |
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|
1,262 |
1,156 |
(8.4%) |
(2.5%) |
|
|
|
|
Sky Revenue |
$4,991 |
$4,828 |
(3.3%) |
2.4% |
|
|
$10,040 |
$9,625 |
(4.1%) |
2.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sky Operating Costs and Expenses |
$4,311 |
$4,056 |
(5.9%) |
(0.4%) |
|
|
$8,561 |
$8,190 |
(4.3%) |
1.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sky Adjusted EBITDA |
$680 |
$772 |
13.4% |
19.9% |
|
|
$1,479 |
$1,435 |
(3.0%) |
3.2% |
|
|
|
|
Adjusted EBITDA Margin |
13.6% |
16.0% |
|
|
|
|
14.7% |
14.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma Revenue for Sky decreased 3.3% to $4.8 billion in the second quarter of 2019. Excluding the impact of currency, revenue increased 2.4%, primarily driven by higher content and direct-to-consumer revenue, partially offset by lower advertising revenue. Content revenue increased 27.7% to $376 million, reflecting the wholesaling of sports programming, including exclusive sports rights recently acquired in Italy and Germany, as well as monetization of our slate of original programming. Direct-to-consumer revenue increased 1.7% to $3.9 billion, driven by increases in video, mobile and broadband customers, partially offset by a decrease in average revenue per customer relationship. Advertising revenue decreased 5.6% to $563 million, reflecting overall market weakness.
For the six months ended June 30, 2019, pro forma Sky revenue decreased 4.1% to $9.6 billion compared to 2018. Excluding the impact of currency, revenue increased 2.1%, reflecting growth in content and direct-to-consumer revenue, partially offset by lower advertising revenue.
Pro Forma Total Customer Relationships increased by 304,000 to 24.0 million in the second quarter of 2019, which includes an increase in net video customer additions as a result of unique content launches.
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
(in thousands) (pro forma) |
|
|
|
|
|
|
||||||||||||
|
|
|
Customers |
|
Net Additions |
|
||||||||||||||
|
|
|
2Q18 |
2Q19 |
|
2Q18 |
2Q19 |
|
||||||||||||
|
|
Total Customer Relationships |
23,010 |
24,016 |
|
107 |
304 |
|
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
Pro Forma Adjusted EBITDA for Sky increased 13.4% to $772 million in the second quarter of 2019. Excluding the impact of currency, Adjusted EBITDA increased 19.9%, reflecting higher revenue and lower operating expenses. The lower operating expenses were primarily due to the inclusion of contract termination costs and costs related to a settlement in last year’s second quarter, partially offset by higher programming expenses primarily driven by new contracts for Serie A and UEFA Champions League soccer rights in Italy and Germany.
For the six months ended June 30, 2019, pro forma Sky Adjusted EBITDA decreased 3.0% to $1.4 billion compared to 2018. Excluding the impact of currency, Adjusted EBITDA increased 3.2%.
Corporate, Other and Eliminations
Corporate, Other and Eliminations primarily relate to corporate operations and Comcast Spectacor, as well as eliminations among Comcast’s businesses. For the quarter ended June 30, 2019, the Corporate, Other and Eliminations Adjusted EBITDA6 loss was $234 million, an increase of $52 million compared to 2018, primarily driven by increased intercompany eliminations.
For the six months ended June 30, 2019, the Corporate, Other and Eliminations Adjusted EBITDA6 loss was $409 million, compared to a loss of $426 million in 2018, which reflected an increase in eliminations associated with the 2018 PyeongChang Olympics.
| Notes: | |
|
1
|
We define Adjusted EBITDA as net income attributable to Comcast 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 measures. |
|
2 |
All earnings per share amounts are presented on a diluted basis. |
|
3 |
In first quarter 2019, we changed our presentation of Adjusted EPS to also exclude amortization expense for acquisition-related intangible assets. Adjusted EPS is a non-GAAP financial measure that is defined as our diluted earnings per common share attributable to Comcast Corporation shareholders 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 reconciliation of non-GAAP financial measures. |
|
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 for acquisitions and construction of real estate properties and the construction of Universal Beijing Resort are presented separately in our Consolidated Statement of Cash Flows and are therefore excluded from capital expenditures for Free Cash Flow. See Table 4 for reconciliation of non-GAAP financial measures. |
|
5 |
Consolidated financial results include Sky results for periods following the acquisition on October 9, 2018. |
|
6 |
Beginning in the first quarter of 2019, Comcast Cable’s wireless phone service and certain other Cable-related business development initiatives are now presented in the Cable Communications segment. Results were previously presented in Corporate and Other. Prior periods have been adjusted to reflect this presentation. To be consistent with our current management reporting presentation, certain 2018 operating results were reclassified related to certain NBCUniversal businesses now presented in the Sky segment. |
|
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 8 for reconciliation of Sky’s constant currency growth. |
|
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 25, 2019 at 8:30 a.m. Eastern Time (ET). The conference call and related materials will be broadcast live and posted on its Investor Relations website at www.cmcsa.com. Those parties interested in participating via telephone should dial (800) 263-8495 with the conference ID number 1195998. A replay of the call will be available starting at 12:00 p.m. ET on July 25, 2019, on the Investor Relations website or by telephone. To access the telephone replay, which will be available until Thursday, August 1, 2019 at midnight ET, please dial (855) 859-2056 and enter the conference ID number 1195998.
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 contains forward-looking statements. Readers are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual events or our actual results to differ materially from those expressed in any such forward-looking statements. Readers are directed to Comcast’s periodic and other reports filed with the Securities and Exchange Commission (SEC) for a description of such risks and uncertainties. We undertake no obligation to update any forward-looking statements.
Non-GAAP Financial Measures
In this discussion, we sometimes refer to financial measures that are not presented according to generally accepted accounting principles in the U.S. (GAAP). Certain of these measures are considered “non-GAAP financial measures” under the SEC regulations; those rules require the supplemental explanations and reconciliations that are in Comcast’s Form 8-K (Quarterly Earnings Release) furnished to the SEC.
About Comcast Corporation
Comcast Corporation (Nasdaq: CMCSA) is a global media and technology company with three primary businesses: Comcast Cable, NBCUniversal, and Sky. Comcast Cable is one of the United States’ largest high-speed internet, video, and phone providers to residential customers under the Xfinity brand, and also provides these services to businesses. It also provides wireless and security and automation services to residential customers under the Xfinity brand. NBCUniversal is global and operates news, entertainment and sports cable networks, the NBC and Telemundo broadcast networks, television production operations, television station groups, Universal Pictures, and Universal Parks and Resorts. Sky is one of Europe’s leading media and entertainment companies, connecting customers to a broad range of video content through its pay television services. It also provides communications services, including residential high-speed internet, phone, and wireless services. Sky operates the Sky News broadcast network and sports and entertainment networks, produces original content, and has exclusive content rights.
Visit www.comcastcorporation.com for more information.
|
TABLE 1 Condensed Consolidated Statement of Income (Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
||||
|
(in millions, except per share data) |
June 30, |
|
June 30, |
||||
|
|
2018 |
|
2019 |
|
2018 |
|
2019 |
|
Revenue |
$21,735 |
|
$26,858 |
|
$44,526 |
|
$53,717 |
|
|
|
|
|
|
|
|
|
|
Programming and production |
6,300 |
|
8,255 |
|
13,729 |
|
16,824 |
|
Other operating and administrative |
6,365 |
|
8,086 |
|
12,879 |
|
15,986 |
|
Advertising, marketing and promotion |
1,653 |
|
1,885 |
|
3,257 |
|
3,773 |
|
Adjustments(1) |
— |
|
(84) |
|
— |
|
(135) |
|
|
14,318 |
|
18,142 |
|
29,865 |
|
36,448 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(1) |
7,417 |
|
8,716 |
|
14,661 |
|
17,269 |
|
|
|
|
|
|
|
|
|
|
Adjustments(1) |
— |
|
84 |
|
— |
|
135 |
|
Depreciation expense |
2,021 |
|
2,197 |
|
4,032 |
|
4,437 |
|
Amortization expense |
582 |
|
1,079 |
|
1,170 |
|
2,159 |
|
Other operating gains |
(200) |
|
— |
|
(200) |
|
— |
|
|
2,403 |
|
3,360 |
|
5,002 |
|
6,731 |
|
|
|
|
|
|
|
|
|
|
Operating income |
5,014 |
|
5,356 |
|
9,659 |
|
10,538 |
|
|
|
|
|
|
|
|
|
|
Interest expense |
(806) |
|
(1,137) |
|
(1,583) |
|
(2,287) |
|
|
|
|
|
|
|
|
|
|
Investment and other income (loss), net |
|
|
|
|
|
|
|
|
Equity in net income (losses) of investees, net |
69 |
|
(202) |
|
20 |
|
60 |
|
Realized and unrealized gains (losses) on equity securities, net |
(40) |
|
194 |
|
(12) |
|
408 |
|
Other income (loss), net |
48 |
|
(47) |
|
195 |
|
153 |
|
|
77 |
|
(55) |
|
203 |
|
621 |
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
4,285 |
|
4,164 |
|
8,279 |
|
8,872 |
|
|
|
|
|
|
|
|
|
|
Income tax expense |
(1,077) |
|
(961) |
|
(1,895) |
|
(2,037) |
|
|
|
|
|
|
|
|
|
|
Net income |
3,208 |
|
3,203 |
|
6,384 |
|
6,835 |
|
|
|
|
|
|
|
|
|
|
Less: Net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock |
(8) |
|
78 |
|
50 |
|
157 |
|
|
|
|
|
|
|
|
|
|
Net income attributable to Comcast Corporation |
$3,216 |
|
$3,125 |
|
$6,334 |
|
$6,678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share attributable to Comcast Corporation shareholders |
$0.69 |
|
$0.68 |
|
$1.36 |
|
$1.45 |
|
|
|
|
|
|
|
|
|
|
Diluted weighted-average number of common shares |
4,643 |
|
4,607 |
|
4,674 |
|
4,600 |
|
|
|
|
|
|
|
|
|
|
(1) See Table 4 for a reconciliation of non-GAAP financial measures. |
|||||||
|
TABLE 2 Consolidated Statement of Cash Flows (Unaudited) |
|||
|
|
|
|
|
|
|
Six Months Ended |
||
|
(in millions) |
June 30, |
||
|
|
2018 |
2019 |
|
|
|
|
|
|
|
OPERATING ACTIVITIES |
|
|
|
|
Net income |
$6,384 |
|
$6,835 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
Depreciation, amortization and other operating gains |
5,002 |
|
6,596 |
|
Share-based compensation |
410 |
|
533 |
|
Noncash interest expense (income), net |
171 |
|
168 |
|
Net (gain) loss on investment activity and other |
(68) |
|
(367) |
|
Deferred income taxes |
814 |
|
466 |
|
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: |
|
|
|
|
Current and noncurrent receivables, net |
(60) |
|
295 |
|
Film and television costs, net |
68 |
|
970 |
|
Accounts payable and accrued expenses related to trade creditors |
(119) |
|
(815) |
|
Other operating assets and liabilities |
(65) |
|
(410) |
|
|
|
|
|
|
Net cash provided by operating activities |
12,537 |
|
14,271 |
|
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
|
Capital expenditures |
(4,223) |
|
(4,355) |
|
Cash paid for intangible assets |
(930) |
|
(1,078) |
|
Acquisitions and construction of real estate properties |
(104) |
|
(36) |
|
Construction of Universal Beijing Resort |
(116) |
|
(450) |
|
Acquisitions, net of cash acquired |
(88) |
|
(114) |
|
Proceeds from sales of businesses and investments |
113 |
|
150 |
|
Purchases of investments |
(538) |
|
(1,605) |
|
Other |
580 |
|
74 |
|
|
|
|
|
|
Net cash provided by (used in) investing activities |
(5,306) |
|
(7,414) |
|
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
Proceeds from (repayments of) short-term borrowings, net |
23 |
|
(801) |
|
Proceeds from borrowings |
4,279 |
|
363 |
|
Repurchases and repayments of debt |
(4,347) |
|
(4,156) |
|
Repurchases of common stock under repurchase program and employee plans |
(2,998) |
|
(350) |
|
Dividends paid |
(1,616) |
|
(1,823) |
|
Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock |
(140) |
|
(155) |
|
Other |
(161) |
|
190 |
|
|
|
|
|
|
Net cash provided by (used in) financing activities |
(4,960) |
|
(6,732) |
|
|
|
|
|
|
Impact of foreign currency on cash, cash equivalents and restricted cash |
— |
|
(15) |
|
|
|
|
|
|
Increase (decrease) in cash, cash equivalents and restricted cash |
2,271 |
|
110 |
|
|
|
|
|
|
Cash, cash equivalents and restricted cash, beginning of period |
3,571 |
|
3,909 |
|
|
|
|
|
|
Cash, cash equivalents and restricted cash, end of period |
$5,842 |
|
$4,019 |
|
|
|
|
|
|
TABLE 3 Condensed Consolidated Balance Sheet (Unaudited) |
|||
|
|
|
|
|
|
(in millions) |
December 31, |
|
June 30, |
|
|
2018 |
|
2019 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
Cash and cash equivalents |
$3,814 |
|
$3,919 |
|
Receivables, net |
11,104 |
|
10,835 |
|
Programming rights |
3,746 |
|
1,947 |
|
Other current assets |
3,184 |
|
4,660 |
|
Total current assets |
21,848 |
|
21,361 |
|
|
|
|
|
|
Film and television costs |
7,837 |
|
8,553 |
|
|
|
|
|
|
Investments |
7,883 |
|
8,438 |
|
|
|
|
|
|
Property and equipment, net |
44,437 |
|
46,047 |
|
|
|
|
|
|
Franchise rights |
59,365 |
|
59,365 |
|
|
|
|
|
|
Goodwill |
66,154 |
|
67,945 |
|
|
|
|
|
|
Other intangible assets, net |
38,358 |
|
36,076 |
|
|
|
|
|
|
Other noncurrent assets, net |
5,802 |
|
8,770 |
|
|
|
|
|
|
|
$251,684 |
|
$256,555 |
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
Accounts payable and accrued expenses related to trade creditors |
$8,494 |
|
$10,014 |
|
Accrued participations and residuals |
1,808 |
|
1,683 |
|
Deferred revenue |
2,182 |
|
2,642 |
|
Accrued expenses and other current liabilities |
10,721 |
|
10,304 |
|
Current portion of long-term debt |
4,398 |
|
6,365 |
|
Total current liabilities |
27,603 |
|
31,008 |
|
|
|
|
|
|
Long-term debt, less current portion |
107,345 |
|
101,248 |
|
|
|
|
|
|
Deferred income taxes |
27,589 |
|
27,996 |
|
|
|
|
|
|
Other noncurrent liabilities |
15,329 |
|
17,144 |
|
|
|
|
|
|
Redeemable noncontrolling interests and redeemable subsidiary preferred stock |
1,316 |
|
1,329 |
|
|
|
|
|
|
Equity |
|
|
|
|
Comcast Corporation shareholders’ equity |
71,613 |
|
76,850 |
|
Noncontrolling interests |
889 |
|
980 |
|
Total equity |
72,502 |
|
77,830 |
|
|
|
|
|
|
|
$251,684 |
|
$256,555 |
|
TABLE 4 Reconciliation from Net Income Attributable to Comcast Corporation to Adjusted EBITDA (Unaudited) |
||||||||
|
|
Three Months Ended |
|
|
Six Months Ended |
||||
|
|
|
|
||||||
|
(in millions) |
2018 |
2019 |
|
|
2018 |
|
2019 |
|
|
Net income attributable to Comcast Corporation |
$3,216 |
$3,125 |
|
|
$6,334 |
|
$6,678 |
|
|
Net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock |
(8) |
78 |
|
|
50 |
|
157 |
|
|
Income tax expense |
1,077 |
961 |
|
|
1,895 |
|
2,037 |
|
|
Interest expense |
806 |
1,137 |
|
|
1,583 |
|
2,287 |
|
|
Investment and other (income) loss, net (1) |
(77) |
55 |
|
|
(203) |
|
(621) |
|
|
Depreciation, amortization expense and other operating gains |
2,403 |
3,276 |
|
|
5,002 |
|
6,596 |
|
|
Adjustments (2) |
— |
84 |
|
|
— |
|
135 |
|
|
Adjusted EBITDA |
$7,417 |
$8,716 |
|
|
$14,661 |
|
$17,269 |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
||||
|
|
|
|
||||||
|
(in millions) |
2018 |
2019 |
|
|
2018 |
|
2019 |
|
|
Net cash provided by operating activities |
$7,063 |
$7,040 |
|
|
$12,537 |
|
$14,271 |
|
|
Capital expenditures |
(2,250) |
(2,263) |
|
|
(4,223) |
|
(4,355) |
|
|
Cash paid for capitalized software and other intangible assets |
(511) |
(531) |
|
|
(930) |
|
(1,078) |
|
|
Total Free Cash Flow |
$4,302 |
$4,246 |
|
|
$7,384 |
|
$8,838 |
|
|
|
|
|
|
|
|
|
|
|
|
Alternate Presentation of Free Cash Flow (Unaudited) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
||||
|
|
|
|
||||||
|
(in millions) |
2018 |
2019 |
|
|
2018 |
|
2019 |
|
|
Adjusted EBITDA |
$7,417 |
$8,716 |
|
|
$14,661 |
|
$17,269 |
|
|
Capital expenditures |
(2,250) |
(2,263) |
|
|
(4,223) |
|
(4,355) |
|
|
Cash paid for capitalized software and other intangible assets |
(511) |
(531) |
|
|
(930) |
|
(1,078) |
|
|
Cash interest expense |
(500) |
(1,141) |
|
|
(1,354) |
|
(2,111) |
|
|
Cash taxes |
(461) |
(1,445) |
|
|
(623) |
|
(1,634) |
|
|
Changes in operating assets and liabilities |
313 |
630 |
|
|
(692) |
|
95 |
|
|
Noncash share-based compensation |
211 |
288 |
|
|
410 |
|
533 |
|
|
Other (3) |
83 |
(8) |
|
|
135 |
|
119 |
|
|
Total Free Cash Flow |
$4,302 |
$4,246 |
|
|
$7,384 |
|
$8,838 |
|
|
(1) |
Investment and other (income) loss, net, includes equity in net (income) losses of investees, net, realized and unrealized (gains) losses on equity securities, net, and other (income) loss, net. |
||||||||
|
(2) |
Second quarter 2019 Adjusted EBITDA excludes $84 million of other operating and administrative expense related to the Sky transaction. 2019 year to date Adjusted EBITDA excludes $135 million of other operating and administrative expense related to the Sky transaction. |
||||||||
|
(3) |
Other for this presentation includes decreases of $84 million and $135 million of costs related to the Sky transaction in second quarter 2019 and 2019 year to date, respectively, as these amounts are excluded from Adjusted EBITDA. |
||||||||
Note: Minor differences may exist due to rounding.
|
TABLE 5 Reconciliation of EPS Excluding Adjustments (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Six Months Ended |
||||||||||||
|
|
|
|
||||||||||||||
|
|
2018 |
|
2019 |
|
|
2018 |
|
2019 |
||||||||
|
(in millions, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
|
EPS |
|
$ |
|
EPS |
|
|
$ |
|
EPS |
|
$ |
|
EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Comcast Corporation |
$3,216 |
|
$0.69 |
|
$3,125 |
|
$0.68 |
|
|
$6,334 |
|
$1.36 |
|
$6,678 |
|
$1.45 |
|
Growth % |
|
|
|
|
(2.8%) |
|
(1.4%) |
|
|
|
|
|
|
5.4% |
|
6.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets (1) |
176 |
|
0.04 |
|
395 |
|
0.08 |
|
|
328 |
|
0.07 |
|
795 |
|
0.17 |
|
Investments (2) |
(82) |
|
(0.02) |
|
(20) |
|
— |
|
|
(129) |
|
(0.03) |
|
(458) |
|
(0.09) |
|
Items affecting period-over-period comparability: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax adjustments (3) |
— |
|
— |
|
— |
|
— |
|
|
(128) |
|
(0.03) |
|
— |
|
— |
|
Gains and losses related to businesses and investments(4) |
(148) |
|
(0.03) |
|
42 |
|
0.01 |
|
|
(196) |
|
(0.04) |
|
(76) |
|
(0.02) |
|
Costs related to Sky transaction and Twenty-First Century Fox offer (5) |
23 |
|
0.01 |
|
68 |
|
0.01 |
|
|
23 |
|
— |
|
109 |
|
0.02 |
|
Purchase accounting adjustments (6) |
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
39 |
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Comcast Corporation (excluding adjustments) |
$3,185 |
|
$0.69 |
|
$3,610 |
|
$0.78 |
|
|
$6,232 |
|
$1.33 |
|
$7,087 |
|
$1.54 |
|
Growth % |
|
|
|
|
13.4% |
|
13.0% |
|
|
|
|
|
|
13.7% |
|
15.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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). 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 EPS. |
|
|
Three Months Ended |
|
|
Six Months Ended |
||||
|
|
2018 |
|
2019 |
|
|
2018 |
|
2019 |
|
Amortization of acquisition-related intangible assets before income taxes |
$236 |
|
$499 |
|
|
$441 |
|
$1,003 |
|
Amortization of acquisition-related intangible assets, net of tax |
$176 |
|
$395 |
|
|
$328 |
|
$795 |
| (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 our investments in Atairos and Hulu (following May 2019 transaction). |
|
|
Three Months Ended |
|
|
Six Months Ended |
||||
|
June 30, |
June 30, |
|||||||
|
|
2018 |
|
2019 |
|
|
2018 |
|
2019 |
|
Realized and unrealized (gains) losses on equity securities, net |
$40 |
|
($194) |
|
|
$12 |
|
($408) |
|
Equity in net (income) losses of investees, net |
(151) |
|
166 |
|
|
(186) |
|
(208) |
|
Investments before income taxes |
(111) |
|
(28) |
|
|
(174) |
|
(616) |
|
Investments, net of tax |
($82) |
|
($20) |
|
|
($129) |
|
($458) |
| (3) |
2018 year to date net income attributable to Comcast Corporation includes a $128 million net income tax benefit as a result of federal tax legislation enacted in 2018. |
| (4) |
2nd quarter 2019 net income attributable to Comcast Corporation includes $56 million of other losses, $42 million net of tax, related to an impairment of an equity method investment. 2019 year to date net income attributable to Comcast Corporation also includes $159 million of other income, $118 million net of tax, resulting from the recognition of a previously deferred gain related to our investment in Hulu. 2nd quarter and year to date 2018 net income attributable to Comcast Corporation includes $200 million of other operating gains, $148 million net of tax, resulting from the sale of a controlling interest in our arena management-related business. 2018 year to date net income attributable to Comcast Corporation also includes $64 million of other income, $48 million net of tax, resulting from a gain on the sale of our investment in The Weather Channel. |
| (5) |
2nd quarter 2019 net income attributable to Comcast Corporation includes $84 million of operating costs and expenses, $68 million net of tax, related to the Sky transaction, primarily relating to the replacement of share-based compensation awards and costs related to integration activities. 2019 year to date net income attributable to Comcast Corporation includes $135 million of operating costs and expenses, $109 million net of tax, related to the Sky transaction, primarily relating to the replacement of share-based compensation awards and costs related to integration activities. 2nd quarter 2018 net income attributable to Comcast Corporation includes $20 million of operating costs and expenses and $11 million of interest expense ($31 million in total, $23 million net of tax) related to the Sky and Twenty-First Century Fox offers. |
| (6) |
2019 year to date net income attributable to Comcast Corporation includes $53 million of depreciation and amortization expense, $39 million net of tax, related to the 4th quarter 2018, as a result of adjustments to the purchase price allocation of Sky, primarily related to intangible assets and property and equipment. |
Note: Minor differences may exist due to rounding.
|
TABLE 6 Reconciliation of Cable Networks Revenue Excluding 2018 Olympics (Unaudited) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
||||||||
|
|
|
|
||||||||||
|
(in millions) |
2018 |
|
2019 |
|
Growth % |
|
|
2018 |
|
2019 |
|
Growth % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$2,874 |
|
$2,947 |
|
2.5% |
|
|
$6,031 |
|
$5,815 |
|
(3.6%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 Olympics |
— |
|
— |
|
|
|
|
(378) |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue excluding 2018 Olympics |
$2,874 |
|
$2,947 |
|
2.5% |
|
|
$5,653 |
|
$5,815 |
|
2.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Broadcast Television Revenue Excluding 2018 Olympics and 2018 Super Bowl (Unaudited) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
||||||||
|
|
|
|
||||||||||
|
(in millions) |
2018 |
|
2019 |
|
Growth % |
|
|
2018 |
|
2019 |
|
Growth % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$2,391 |
|
$2,402 |
|
0.5% |
|
|
$5,888 |
|
$4,869 |
|
(17.3%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 Olympics |
— |
|
— |
|
|
|
|
(770) |
|
— |
|
|
|
2018 Super Bowl |
— |
|
— |
|
|
|
|
(423) |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue excluding 2018 Olympics and 2018 Super Bowl |
$2,391 |
|
$2,402 |
|
0.5% |
|
|
$4,695 |
|
$4,869 |
|
3.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Minor differences may exist due to rounding.
|
TABLE 7
Reconciliation of As Reported to Pro Forma(1) Financial Information (Unaudited) |
||||||||||||||
|
|
|
Sky |
|
|
|
|
|
|
|
|
Comcast |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma |
|
|
Pro Forma |
|
|
|
|
|
Pro Forma |
|
Pro Forma |
|
|
As Reported |
|
Adjustments(1) |
|
|
Sky |
|
|
As Reported |
|
|
Adjustments(1) |
|
Comcast |
|
Three Months Ended June 30, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$— |
|
$4,991 |
|
|
$4,991 |
|
|
$21,735 |
|
|
$4,918 |
|
$26,653 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses and other |
— |
|
4,311 |
|
|
4,311 |
|
|
14,318 |
|
|
4,237 |
|
18,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$— |
|
$680 |
|
|
$680 |
|
|
$7,417 |
|
|
$681 |
|
$8,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$4,828 |
|
$— |
|
|
$4,828 |
|
|
$26,858 |
|
|
$— |
|
$26,858 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses and other |
4,056 |
|
— |
|
|
4,056 |
|
|
18,142 |
|
|
— |
|
18,142 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$772 |
|
$— |
|
|
$772 |
|
|
$8,716 |
|
|
$— |
|
$8,716 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Growth Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
NM |
|
|
|
|
(3.3%) |
|
|
23.6% |
|
|
|
|
0.8% |
|
Operating costs and expenses and other |
NM |
|
|
|
|
(5.9%) |
|
|
26.7% |
|
|
|
|
(2.2%) |
|
Adjusted EBITDA |
NM |
|
|
|
|
13.4% |
|
|
17.5% |
|
|
|
|
7.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$— |
|
$10,040 |
|
|
$10,040 |
|
|
$44,526 |
|
|
$9,889 |
|
$54,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses and other |
— |
|
8,561 |
|
|
8,561 |
|
|
29,865 |
|
|
8,413 |
|
38,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$— |
|
$1,479 |
|
|
$1,479 |
|
|
$14,661 |
|
|
$1,476 |
|
$16,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$9,625 |
|
$— |
|
|
$9,625 |
|
|
$53,717 |
|
|
$— |
|
$53,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses and other |
8,190 |
|
— |
|
|
8,190 |
|
|
36,448 |
|
|
— |
|
36,448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$1,435 |
|
$— |
|
|
$1,435 |
|
|
$17,269 |
|
|
$— |
|
$17,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Growth Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
NM |
|
|
|
|
(4.1%) |
|
|
20.6% |
|
|
|
|
(1.3%) |
|
Operating costs and expenses and other |
NM |
|
|
|
|
(4.3%) |
|
|
22.0% |
|
|
|
|
(4.8%) |
|
Adjusted EBITDA |
NM |
|
|
|
|
(3.0%) |
|
|
17.8% |
|
|
|
|
7.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM=comparison not meaningful. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Pro forma information is presented as if the Sky transaction occurred January 1, 2017. Our pro forma information is based on historical results of operations and are primarily adjusted for the effects of acquisition accounting and the elimination of costs and expenses directly attributable to the transaction, but does not include adjustments for costs related to integration activities, cost savings or synergies that have been or may be achieved by the combined businesses. Our pro forma information is not necessarily indicative of future results or what our results would have been had we operated Sky since January 1, 2017. |
|
TABLE 8 Reconciliation of Sky Constant Currency Growth (Unaudited) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
||||||||
|
|
|
|
||||||||||
|
(in millions) |
2018(1) |
|
2019 |
|
Growth % |
|
|
2018(1) |
|
2019 |
|
Growth % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct-to-Consumer |
$3,824 |
|
$3,889 |
|
1.7% |
|
|
$7,675 |
|
$7,723 |
|
0.6% |
|
Content |
295 |
|
376 |
|
27.7% |
|
|
563 |
|
746 |
|
32.6% |
|
Advertising |
597 |
|
563 |
|
(5.6%) |
|
|
1,186 |
|
1,156 |
|
(2.5%) |
|
Revenue |
$4,716 |
|
$4,828 |
|
2.4% |
|
|
$9,424 |
|
$9,625 |
|
2.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
$4,073 |
|
$4,056 |
|
(0.4%) |
|
|
$8,034 |
|
$8,190 |
|
1.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$643 |
|
$772 |
|
19.9% |
|
|
$1,390 |
|
$1,435 |
|
3.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
2018 results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the current period rather than the actual exchange rates in effect during the respective periods. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20190725005356/en/