Press release

Comcast Reports 4th Quarter and Full Year 2019 Results

0
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Comcast Corporation (NASDAQ: CMCSA) today reported results for the quarter and year ended December 31, 2019.

Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, “We delivered strong operational and financial results in the fourth quarter, capping another great year for Comcast, including double-digit growth in full-year adjusted EPS, record free cash flow and 1.4 million broadband net additions in the U.S. Our teams at Cable, NBCUniversal and Sky continued to execute at a high level, strengthening our leadership position in our markets. Looking ahead, in 2020 we are leaning into exciting opportunities, including: further differentiating our broadband product in the U.S. through innovations like Flex and xFi Advanced Security; accelerating the deployment of Sky Q; launching a new broadband service in Italy; debuting Super Nintendo World at Universal Studios Japan; and introducing a world-class streaming service – Peacock – which leverages capabilities from across Comcast. Underscoring our confidence in the continued success of our company, we are pleased to announce a 10% increase in our dividend, our 12th consecutive annual increase.”

 

 

 

 

 

 

 

 

 

 

 

 

($ in millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

4th Quarter

 

 

 

 

Full Year

 

 

Consolidated Results

2018 5

 

2019

 

Growth

 

 

 

 

2018 5

 

2019

 

Growth

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

$27,846

 

$28,398

 

2.0

%

 

 

$94,507

 

$108,942

 

15.3

%

 

 

Net Income Attributable to Comcast

$2,511

 

$3,162

 

25.9

%

 

 

$11,731

 

$13,057

 

11.3

%

 

 

Adjusted EBITDA1

$8,191

 

$8,436

 

3.0

%

 

 

$30,165

 

$34,258

 

13.6

%

 

 

Earnings per Share2

$0.55

 

$0.68

 

23.6

%

 

 

$2.53

 

$2.83

 

11.9

%

 

 

Earnings per Share, Adjusted Basis3 (see Table 5)

$0.72

 

$0.79

 

9.7

%

 

 

$2.73

 

$3.13

 

14.7

%

 

 

Net Cash Provided by Operating Activities

$5,790

 

$6,235

 

7.7

%

 

 

$24,297

 

$25,697

 

5.8

%

 

 

Free Cash Flow4

$2,063

 

$2,484

 

20.4

%

 

 

$12,588

 

$13,394

 

6.4

%

 

 

 

 

 

 

 

 

 

 

 

 

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.

Full Year 2019 Highlights:

  • Consolidated Adjusted EBITDA Increased 13.6%; Earnings per Share Increased 14.7% to $3.13, on an Adjusted Basis; Generated Free Cash Flow of $13.4 Billion
  • Cable Communications Adjusted EBITDA Increased 7.3% and Adjusted EBITDA per Customer Relationship Increased 3.5%
  • Cable Communications Total Customer Relationships Increased by 1.1 Million, the Best Result on Record; Total High-Speed Internet Customers Increased by 1.4 Million, the Best Result in 12 Years
  • NBCUniversal Filmed Entertainment Adjusted EBITDA Increased 13.5%
  • Sky Adjusted EBITDA Increased 7.1% on a Pro Forma Basis to $3.1 Billion; Excluding the Impact of Currency, Adjusted EBITDA Increased 12.2% on a Pro Forma Basis

4th Quarter 2019 Highlights:

  • Consolidated Adjusted EBITDA Increased 3.0%; Earnings per Share Increased 9.7% to $0.79, on an Adjusted Basis; Generated Free Cash Flow of $2.5 Billion
  • Cable Communications Adjusted EBITDA Increased 5.4%
  • Cable Communications Total Customer Relationship Net Additions were 372,000, the Best Quarterly Net Additions on Record; Total High-Speed Internet Customer Net Additions were 442,000
  • NBCUniversal Broadcast Television Adjusted EBITDA Increased 14.2%
  • Sky Total Customer Relationships Increased 1.7% Year-Over-Year to 24.0 Million, Including Net Additions of 77,000 in the Quarter

Dividends:

  • Dividends Paid Totaled $3.7 Billion in 2019; Increased Dividend by 10% to $0.92 per Share on an Annualized Basis for 2020

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 fourth quarter of 2019 increased 2.0% to $28.4 billion. Consolidated Net Income Attributable to Comcast increased 25.9% to $3.2 billion. Consolidated Adjusted EBITDA increased 3.0% to $8.4 billion.

For the twelve months ended December 31, 2019, consolidated revenue increased 15.3% to $109 billion compared to 2018. Consolidated net income attributable to Comcast increased 11.3% to $13.1 billion. Consolidated Adjusted EBITDA increased 13.6% to $34.3 billion.

Earnings per Share (EPS) for the fourth quarter of 2019 was $0.68, an increase of 23.6% compared to the fourth quarter of 2018. On an adjusted basis, EPS increased 9.7% to $0.79 (see Table 5).

For the twelve months ended December 31, 2019, EPS was $2.83, a 11.9% increase compared to the prior year. On an adjusted basis, EPS increased 14.7% to $3.13 (see Table 5).

Capital Expenditures decreased 2.5% to $3.1 billion in the fourth quarter of 2019. Cable Communications’ capital expenditures decreased 7.8% to $2.1 billion. NBCUniversal’s capital expenditures increased 7.6% to $641 million. Sky had capital expenditures of $228 million.

For the twelve months ended December 31, 2019, capital expenditures increased 1.8% to $10.0 billion compared to 2018. Cable Communications’ capital expenditures decreased 10.5% to $6.9 billion. NBCUniversal’s capital expenditures increased 19.7% to $2.1 billion. Sky had capital expenditures of $768 million.

Net Cash Provided by Operating Activities was $6.2 billion in the fourth quarter of 2019. Free Cash Flow was $2.5 billion (see Table 4).

For the twelve months ended December 31, 2019, net cash provided by operating activities was $25.7 billion. Free cash flow was $13.4 billion (see Table 4).

Dividends paid during the fourth quarter of 2019 totaled $957 million. For the full year, Comcast made four cash dividend payments totaling $3.7 billion.

Today Comcast announced that it increased its dividend by 10% to $0.92 per share on an annualized basis for 2020. In accordance with the increase, the Board of Directors declared a quarterly cash dividend of $0.23 a share on the company’s stock, payable April 22, 2020 to shareholders of record as of the close of business on April 1, 2020.

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 fourth quarter of 2019 was consistent with the prior year period at $28.4 billion. Consolidated Pro Forma Adjusted EBITDA increased 2.1% to $8.4 billion.

For the twelve months ended December 31, 2019, consolidated pro forma revenue decreased 0.5% to $109 billion compared to 2018. Consolidated Pro Forma Adjusted EBITDA increased 5.9% to $34.3 billion.

Cable Communications

 

 

 

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

 

 

 

 

 

4th Quarter

 

 

 

 

Full Year

 

 

 

2018 6

 

2019

 

Growth

 

 

 

 

2018 6

 

2019

 

Growth

 

 

Cable Communications Revenue

 

 

 

 

 

 

 

 

 

 

High-Speed Internet

$4,404

$4,791

8.8

%

 

 

$17,144

$18,752

9.4

%

 

 

Video

5,577

5,507

(1.2

%)

 

 

22,455

22,270

(0.8

%)

 

 

Voice

978

944

(3.6

%)

 

 

3,960

3,879

(2.1

%)

 

 

Wireless

267

372

39.4

%

 

 

890

1,167

31.2

%

 

 

Business Services

1,839

2,000

8.8

%

 

 

7,129

7,795

9.3

%

 

 

Advertising

863

699

(19.1

%)

 

 

2,795

2,465

(11.8

%)

 

 

Other

467

455

(2.3

%)

 

 

1,660

1,754

5.7

%

 

 

Cable Communications Revenue

$14,395

$14,768

2.6

%

 

 

$56,033

$58,082

3.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Cable Communications Adjusted EBITDA

$5,581

$5,883

5.4

%

 

 

$21,681

$23,266

7.3

%

 

 

Adjusted EBITDA Margin

38.8%

39.8%

 

 

 

38.7%

40.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cable Communications Capital Expenditures

$2,320

$2,138

(7.8

%)

 

 

$7,723

$6,909

(10.5

%)

 

 

Percent of Cable Communications Revenue

16.1%

14.5%

 

 

 

13.8%

11.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

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 2.6% to $14.8 billion in the fourth quarter of 2019, driven primarily by increases in high-speed internet, business services and wireless revenue, partially offset by a decrease in advertising revenue. High-speed internet revenue increased 8.8%, driven by an increase in the number of residential high-speed internet customers and rate adjustments. Business services revenue increased 8.8%, due to an increase in the number of customers receiving our services and an increase in average rates. Wireless revenue increased 39.4%, primarily reflecting an increase in the number of customer lines. Advertising revenue decreased 19.1%, reflecting a decrease in political advertising revenue. Excluding political advertising revenue, advertising revenue was consistent with the prior year period. Video revenue decreased 1.2%, reflecting a decrease in the number of residential video customers, partially offset by rate adjustments. Voice revenue decreased 3.6%, primarily due to a decrease in the number of residential voice customers. Other revenue decreased 2.3%, primarily reflecting the timing of X1 licensing revenue, partially offset by higher security and automation services revenue.

For the twelve months ended December 31, 2019, Cable revenue increased 3.7% to $58.1 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 372,000 to 31.5 million in the fourth quarter of 2019. Residential customer relationships increased by 352,000 and business customer relationships increased by 20,000. Total high-speed internet customer net additions were 442,000, total video customer net losses were 149,000, total voice customer net losses were 2,000 and total security and automation customer net additions were 10,000. In addition, Cable Communications added 261,000 wireless lines in the quarter.

For the year ended December 31, 2019, total customer relationships increased by 1.1 million. Residential customer relationships increased by 1.0 million and business customer relationships increased by 94,000. Total high-speed internet customer net additions were 1.4 million, total video customer net losses were 733,000, total voice customer net losses were 173,000 and total security and automation customer net additions were 59,000. In addition, Cable Communications added 816,000 wireless lines during the year.

 

 

 

 

 

   

 

 

 

 

 

 

 

(in thousands)

 

 

 

   

 

 

 

 

 

 

 

 

 

 

   

 

Net Additions

 

 

YE18 6

 

YE19

 

   

 

4Q18 6

 

4Q19

 

 

 

 

2018 6

 

2019

 

Customer Relationships

 

 

 

   

 

 

 

 

 

 

 

Residential Customer Relationships

28,109

 

29,149

 

 

   

240

 

352

 

 

 

925

 

1,040

 

 

Business Services Customer Relationships

2,303

 

2,396

 

 

   

29

 

20

 

 

 

123

 

94

 

 

Total Customer Relationships

30,412

 

31,545

 

 

   

269

 

372

 

 

 

1,048

 

1,134

 

 

 

 

 

 

   

 

 

 

 

 

 

 

Residential Customer Relationships Mix

 

 

 

   

 

 

 

 

 

 

 

One Product Residential Customers

9,015

 

10,247

 

 

   

151

 

342

 

 

 

840

 

1,232

 

 

Two Product Residential Customers

8,992

 

8,923

 

 

   

34

 

8

 

 

 

(25

)

(69

)

 

Three or More Product Residential Customers

10,102

 

9,979

 

 

   

55

 

2

 

 

 

110

 

(123

)

 

 

 

 

 

   

 

 

 

 

 

 

 

Residential High-Speed Internet Customers

25,097

 

26,414

 

 

   

323

 

424

 

 

 

1,234

 

1,317

 

 

Business Services High-Speed Internet Customers

2,125

 

2,215

 

 

   

28

 

18

 

 

 

120

 

89

 

 

Total High-Speed Internet Customers

27,222

 

28,629

 

 

   

351

 

442

 

 

 

1,353

 

1,406

 

 

 

 

 

 

   

 

 

 

 

 

 

 

Residential Video Customers

20,959

 

20,288

 

 

   

(19

)

(133

)

 

 

(344

)

(671

)

 

Business Services Video Customers

1,027

 

966

 

 

   

(10

)

(17

)

 

 

(27

)

(61

)

 

Total Video Customers

21,986

 

21,254

 

 

   

(29

)

(149

)

 

 

(370

)

(733

)

 

 

 

 

 

   

 

 

 

 

 

 

 

Residential Voice Customers

10,153

 

9,934

 

 

   

(12

)

(10

)

 

 

(163

)

(218

)

 

Business Services Voice Customers

1,297

 

1,342

 

 

   

14

 

9

 

 

 

60

 

46

 

 

Total Voice Customers

11,449

 

11,276

 

 

   

2

 

(2

)

 

 

(103

)

(173

)

 

 

 

 

 

   

 

 

 

 

 

 

 

Total Security and Automation Customers

1,317

 

1,375

 

 

   

39

 

10

 

 

 

186

 

59

 

 

 

 

 

 

   

 

 

 

 

 

 

 

Total Wireless Lines

1,236

 

2,052

 

 

   

227

 

261

 

 

 

854

 

816

 

 

 

 

 

 

   

 

 

 

 

 

 

Adjusted EBITDA for Cable Communications increased 5.4% to $5.9 billion in the fourth quarter of 2019, reflecting higher revenue, partially offset by a 0.8% increase in operating expenses. Non-programming expenses increased 1.6%, primarily reflecting higher technical and product support expenses, partially offset by lower other operating costs and advertising, marketing and promotional costs. Non-programming expenses per customer relationship decreased 1.9%. Programming costs decreased 0.6% due to the timing of programming contract renewals and video subscriber declines. This quarter’s Adjusted EBITDA per customer relationship increased 1.8%, and Adjusted EBITDA margin was 39.8% compared to 38.8% in the fourth quarter of 2018. Cable Communications results include a loss of $116 million from our wireless business, compared to a loss of $191 million in the prior period.

For the twelve months ended December 31, 2019, Cable Adjusted EBITDA increased 7.3% to $23.3 billion compared to 2018, driven by higher revenue, partially offset by a 1.4% increase in operating expenses. The higher expenses were due to a 1.5% increase in non-programming expenses and a 1.1% increase in programming costs. For the twelve months ended December 31, 2019, Adjusted EBITDA per customer relationship increased 3.5%, and Adjusted EBITDA margin was 40.1% compared to 38.7% in 2018. Cable Communications results include a loss of $401 million from our wireless business, compared to a loss of $743 million in the prior period.

Capital Expenditures for Cable Communications decreased 7.8% to $2.1 billion in the fourth quarter of 2019. Cable capital expenditures represented 14.5% of Cable revenue in the fourth quarter of 2019 compared to 16.1% in last year’s fourth quarter.

For the twelve months ended December 31, 2019, Cable capital expenditures decreased 10.5% to $6.9 billion. Cable capital expenditures represented 11.9% of Cable revenue compared to 13.8% in 2018.

NBCUniversal

 

 

 

 

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

 

 

 

 

 

4th Quarter

 

 

 

 

Full Year

 

 

 

2018 6

 

2019

 

Growth

 

 

 

 

2018 6

 

2019

Growth

 

 

NBCUniversal Revenue

 

 

 

 

 

 

 

 

 

 

Cable Networks

$2,892

 

$2,927

 

1.2

%

 

 

$11,773

 

$11,513

 

(2.2

%)

 

 

Excluding Olympics (see Table 6)

 

 

 

 

 

11,395

 

11,513

 

1.0

%

 

 

Broadcast Television

3,099

 

3,162

 

2.1

%

 

 

11,439

 

10,261

 

(10.3

%)

 

 

Excluding Olympics and Super Bowl (see Table 6)

 

 

 

 

 

10,246

 

10,261

 

0.1

%

 

 

Filmed Entertainment

1,976

 

1,562

 

(21.0

%)

 

 

7,152

 

6,493

 

(9.2

%)

 

 

Theme Parks

1,513

 

1,562

 

3.2

%

 

 

5,683

 

5,933

 

4.4

%

 

 

Headquarters, other and eliminations

(85

)

(60

)

NM

 

 

(286

)

(233

)

NM

 

 

NBCUniversal Revenue

$9,395

 

$9,153

 

(2.6

%)

 

 

$35,761

 

$33,967

 

(5.0

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

NBCUniversal Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

Cable Networks

$1,039

 

$1,026

 

(1.4

%)

 

 

$4,428

 

$4,444

 

0.4

%

 

 

Broadcast Television

412

 

471

 

14.2

%

 

 

1,657

 

1,730

 

4.4

%

 

 

Filmed Entertainment

179

 

91

 

(48.9

%)

 

 

734

 

833

 

13.5

%

 

 

Theme Parks

666

 

636

 

(4.5

%)

 

 

2,455

 

2,455

 

%

 

 

Headquarters, other and eliminations

(176

)

(204

)

NM

 

 

(676

)

(690

)

NM

 

 

NBCUniversal Adjusted EBITDA

$2,120

 

$2,020

 

(4.7

%)

 

 

$8,598

 

$8,772

 

2.0

%

 

 

NM=comparison not meaningful.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue for NBCUniversal decreased 2.6% to $9.2 billion in the fourth quarter of 2019. Adjusted EBITDA decreased 4.7% to $2.0 billion.

For the twelve months ended December 31, 2019, NBCUniversal revenue decreased 5.0% to $34.0 billion compared to last year’s results, which included an incremental $1.6 billion of revenue generated by the broadcasts of the 2018 PyeongChang Olympics and the NFL’s Super Bowl LII at our TV Businesses. Adjusted EBITDA increased 2.0% to $8.8 billion.

Cable Networks

Cable Networks revenue increased 1.2% to $2.9 billion in the fourth quarter of 2019, primarily reflecting higher advertising and content licensing and other revenue. Advertising revenue increased 2.0%, reflecting higher rates, partially offset by audience ratings declines. Content licensing and other revenue increased 3.4%, due to higher revenue from our digital businesses. Distribution revenue was consistent with the prior year period, reflecting contractual rate increases and the timing of contract renewals, offset by a decline in subscribers. Adjusted EBITDA decreased 1.4% to $1.0 billion in the fourth quarter of 2019, reflecting higher revenue, more than offset by an increase in operating costs and expenses.

For the twelve months ended December 31, 2019, revenue from the Cable Networks segment decreased 2.2% to $11.5 billion compared to 2018, primarily reflecting lower content licensing and other and advertising 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 1.0% (see Table 6). Adjusted EBITDA of $4.4 billion was consistent with the prior year period, reflecting lower revenue, offset by a decrease in 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 2.1% to $3.2 billion in the fourth quarter of 2019, reflecting higher distribution and other and content licensing revenue, partially offset by a decrease in advertising revenue. Distribution and other revenue increased 9.9%, primarily due to higher retransmission consent fees. Content licensing revenue increased 5.8%, primarily due to the timing of content provided under licensing agreements. Advertising revenue decreased 1.5%, due to a decrease in political advertising revenue. Excluding political advertising revenue, advertising revenue increased in the low-single-digits, reflecting higher pricing, partially offset by audience ratings declines. Adjusted EBITDA increased 14.2% to $471 million in the fourth quarter of 2019, primarily reflecting higher revenue and consistent operating costs and expenses.

For the twelve months ended December 31, 2019, revenue from the Broadcast Television segment decreased 10.3% to $10.3 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 of $10.3 billion was consistent with the prior year period (see Table 6). Adjusted EBITDA increased 4.4% to $1.7 billion compared to 2018, with lower revenue more than 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 21.0% to $1.6 billion in the fourth quarter of 2019, primarily reflecting lower theatrical revenue. Theatrical revenue decreased 59.1%, reflecting the volume and strength of releases in last year’s fourth quarter, including Dr. Seuss’ The Grinch and Halloween. Adjusted EBITDA decreased 48.9% to $91 million in the fourth quarter of 2019, reflecting lower revenue, partially offset by lower programming and production costs.

For the twelve months ended December 31, 2019, revenue from the Filmed Entertainment segment decreased 9.2% to $6.5 billion compared to 2018, primarily reflecting lower theatrical revenue, partially offset by higher content licensing revenue. Adjusted EBITDA increased 13.5% to $833 million compared to 2018, reflecting lower revenue, more than offset by lower operating expenses.

Theme Parks

Theme Parks revenue increased 3.2% to $1.6 billion in the fourth quarter of 2019, due to increases in guest spending. Adjusted EBITDA decreased 4.5% to $636 million in the fourth quarter of 2019, reflecting higher revenue, more than offset by higher operating expenses.

For the twelve months ended December 31, 2019, revenue from the Theme Parks segment increased 4.4% to $5.9 billion compared to 2018, due to increases in guest spending and higher attendance. Adjusted EBITDA of $2.5 billion was consistent with the prior year period, reflecting an increase in revenue, 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 December 31, 2019, NBCUniversal Headquarters, Other and Eliminations Adjusted EBITDA loss was $204 million, compared to a loss of $176 million in the fourth quarter of 2018.

For the twelve months ended December 31, 2019, NBCUniversal Headquarters, Other and Eliminations Adjusted EBITDA loss was $690 million compared to a loss of $676 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).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in millions) (pro forma)

 

 

 

 

 

 

 

 

 

 

 

 

 

4th Quarter

 

 

 

 

Full Year

 

 

 

2018

 

2019

 

Growth

 

Constant

Currency

Growth7

 

 

 

 

2018

 

2019

 

Growth

 

Constant

Currency

Growth7

 

 

Sky Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Direct-to-Consumer

$3,976

$4,022

1.1

%

2.3

%

 

 

$16,077

$15,538

(3.4

%)

1.4

%

 

 

Content

363

371

2.1

%

2.7

%

 

 

1,248

1,432

14.7

%

19.7

%

 

 

Advertising

682

647

(5.1

%)

(4.1

%)

 

 

2,489

2,249

(9.6

%)

(5.4

%)

 

 

Sky Revenue

$5,021

$5,040

0.4

%

1.4

%

 

 

$19,814

$19,219

(3.0

%)

1.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sky Operating Costs and Expenses

$4,256

$4,275

0.4

%

1.6

%

 

 

$16,920

$16,120

(4.7

%)

(0.1

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sky Adjusted EBITDA

$765

$765

%

0.4

%

 

 

$2,894

$3,099

7.1

%

12.2

%

 

 

Adjusted EBITDA Margin

15.2

%

15.2

%

 

 

 

 

14.6

%

16.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pro Forma Revenue for Sky of $5.0 billion was consistent with the prior year period. Excluding the impact of currency, revenue increased 1.4%, driven by higher direct-to-consumer and content revenue, partially offset by lower advertising revenue. Direct-to-consumer revenue increased 2.3% to $4.0 billion, driven by an increase in customer relationships. Content revenue increased 2.7% to $371 million, reflecting higher rates for wholesaling of our programming. Advertising revenue decreased 4.1% to $647 million, reflecting an unfavorable impact from a change in legislation related to gambling advertisements in the UK and Italy, as well as overall market weakness.

For the twelve months ended December 31, 2019, pro forma Sky revenue decreased 3.0% to $19.2 billion compared to 2018. Excluding the impact of currency, revenue increased 1.7%, reflecting growth in content and direct-to-consumer revenue, partially offset by lower advertising revenue.

Pro Forma Total Customer Relationships increased by 77,000 to 24.0 million in the fourth quarter of 2019. For the twelve months ended December 31, 2019, total customer relationships increased by 394,000.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands) (pro forma)

 

 

 

 

 

 

 

 

 

 

 

 

 

Customers

 

 

Net Additions

 

 

YE18

 

YE19

 

 

4Q18

 

4Q19

 

 

 

 

2018

 

2019

 

Total Customer Relationships

23,600

 

 

23,994

 

 

 

164

 

77

 

 

 

 

735

 

394

 

 

 

 

 

 

 

 

 

 

 

 

 

Pro Forma Adjusted EBITDA for Sky of $765 million was consistent with the prior year period. Excluding the impact of currency, Adjusted EBITDA increased 0.4%, reflecting higher revenue, partially offset by higher operating expenses.

For the twelve months ended December 31, 2019, pro forma Sky Adjusted EBITDA increased 7.1% to $3.1 billion compared to 2018. Excluding the impact of currency, Adjusted EBITDA increased 12.2%.

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 December 31, 2019, the Corporate, Other and Eliminations Adjusted EBITDA6 loss was $232 million, an increase of $30 million compared to 2018, primarily driven by start up costs associated with Peacock.

For the twelve months ended December 31, 2019, the Corporate, Other and Eliminations Adjusted EBITDA6 loss was $879 million, an increase of $73 million compared to 2018, primarily driven by start up costs associated with Peacock.

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, January 23, 2020 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 3469916. A replay of the call will be available starting at 12:00 p.m. ET on January 23, 2020, on the Investor Relations website or by telephone. To access the telephone replay, which will be available until Thursday, January 30, 2020 at midnight ET, please dial (855) 859-2056 and enter the conference ID number 3469916.

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

 

Twelve Months Ended

(in millions, except per share data)

December 31,

 

December 31,

 

2018

 

2019

 

2018

 

2019

Revenue

$27,846

 

 

$28,398

 

 

$94,507

 

 

$108,942

 

 

 

 

 

 

 

 

 

Programming and production

9,252

 

 

9,300

 

 

29,692

 

 

34,440

 

Other operating and administrative

8,782

 

 

8,731

 

 

28,094

 

 

32,807

 

Advertising, marketing and promotion

2,101

 

 

1,943

 

 

7,036

 

 

7,617

 

Adjustments(1)

(480

)

 

(12

)

 

(480

)

 

(180

)

 

19,655

 

 

19,962

 

 

64,342

 

 

74,684

 

 

 

 

 

 

 

 

 

Adjusted EBITDA(1)

8,191

 

 

8,436

 

 

30,165

 

 

34,258

 

 

 

 

 

 

 

 

 

Adjustments(1)

480

 

 

12

 

 

480

 

 

180

 

Depreciation expense

2,211

 

 

2,102

 

 

8,281

 

 

8,663

 

Amortization expense

986

 

 

1,075

 

 

2,736

 

 

4,290

 

Other operating gains

 

 

 

 

(341

)

 

 

 

3,677

 

 

3,189

 

 

11,156

 

 

13,133

 

 

 

 

 

 

 

 

 

Operating income

4,514

 

 

5,247

 

 

19,009

 

 

21,125

 

 

 

 

 

 

 

 

 

Interest expense

(1,129

)

 

(1,113

)

 

(3,542

)

 

(4,567

)

 

 

 

 

 

 

 

 

Investment and other income (loss), net

 

 

 

 

 

 

 

Equity in net income (losses) of investees, net

(308

)

 

(210

)

 

(364

)

 

(505

)

Realized and unrealized gains (losses) on equity securities, net

(137

)

 

74

 

 

(187

)

 

656

 

Other income (loss), net

128

 

 

63

 

 

326

 

 

287

 

 

(317

)

 

(73

)

 

(225

)

 

438

 

 

 

 

 

 

 

 

 

Income before income taxes

3,068

 

 

4,061

 

 

15,242

 

 

16,996

 

 

 

 

 

 

 

 

 

Income tax expense

(486

)

 

(861

)

 

(3,380

)

 

(3,673

)

 

 

 

 

 

 

 

 

Net income

2,582

 

 

3,200

 

 

11,862

 

 

13,323

 

 

 

 

 

 

 

 

 

Less: Net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock

71

 

 

38

 

 

131

 

 

266

 

 

 

 

 

 

 

 

 

Net income attributable to Comcast Corporation

$2,511

 

 

$3,162

 

 

$11,731

 

 

$13,057

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share attributable to Comcast Corporation shareholders

$0.55

 

 

$0.68

 

 

$2.53

 

 

$2.83

 

 

 

 

 

 

 

 

 

Diluted weighted-average number of common shares

4,596

 

 

4,623

 

 

4,640

 

 

4,610

 

 

(1) See Table 4 for a reconciliation of non-GAAP financial measures.

 

 

 

 

 

 

 

TABLE 2

 

 

 

 

 

Consolidated Statement of Cash Flows (Unaudited)

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

(in millions)

December 31,

 

2018

 

2019

 

 

 

 

OPERATING ACTIVITIES

 

 

 

Net income

$11,862

 

 

$13,323

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation, amortization and other operating gains

10,676

 

 

12,953

 

Share-based compensation

826

 

 

1,021

 

Noncash interest expense (income), net

364

 

 

417

 

Net (gain) loss on investment activity and other

576

 

 

(20

)

Deferred income taxes

290

 

 

563

 

Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:

 

 

 

Current and noncurrent receivables, net

(802

)

 

(57

)

Film and television costs, net

(395

)

 

(929

)

Accounts payable and accrued expenses related to trade creditors

(394

)

 

(347

)

Other operating assets and liabilities

1,294

 

 

(1,227

)

 

 

 

 

Net cash provided by operating activities

24,297

 

 

25,697

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

Capital expenditures

(9,774

)

 

(9,953

)

Cash paid for intangible assets

(1,935

)

 

(2,475

)

Acquisitions and construction of real estate properties

(143

)

 

(54

)

Construction of Universal Beijing Resort

(460

)

 

(1,116

)

Acquisitions, net of cash acquired

(38,219

)

 

(370

)

Proceeds from sales of businesses and investments

141

 

 

886

 

Purchases of investments

(1,257

)

 

(1,899

)

Other

793

 

 

140

 

 

 

 

 

Net cash provided by (used in) investing activities

(50,854

)

 

(14,841

)

 

 

 

 

FINANCING ACTIVITIES

 

 

 

Proceeds from (repayments of) short-term borrowings, net

379

 

 

(1,288

)

Proceeds from borrowings

44,781

 

 

5,479

 

Proceeds from collateralized obligation

 

 

5,175

 

Repurchases and repayments of debt

(8,798

)

 

(14,354

)

Repurchases of common stock under repurchase program and employee plans

(5,320

)

 

(504

)

Dividends paid

(3,352

)

 

(3,735

)

Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock

(277

)

 

(311

)

Other

(273

)

 

357

 

 

 

 

 

Net cash provided by (used in) financing activities

27,140

 

 

(9,181

)

 

 

 

 

Impact of foreign currency on cash, cash equivalents and restricted cash

(245

)

 

5

 

 

 

 

 

Increase (decrease) in cash, cash equivalents and restricted cash

338

 

 

1,680

 

 

 

 

 

Cash, cash equivalents and restricted cash, beginning of period

3,571

 

 

3,909

 

 

 

 

 

Cash, cash equivalents and restricted cash, end of period

$3,909

 

 

$5,589

 

TABLE 3

 

 

 

 

Condensed Consolidated Balance Sheet (Unaudited)

 

 

 

 

 

 

 

 

(in millions)

December 31,

 

December 31,

 

2018

 

2019

ASSETS

 

 

 

 

 

 

 

Current Assets

 

 

 

Cash and cash equivalents

$3,814

 

 

$5,500

 

Receivables, net

11,104

 

 

11,292

 

Programming rights

3,746

 

 

3,877

 

Other current assets

3,184

 

 

4,723

 

Total current assets

21,848

 

 

25,392

 

 

 

 

 

Film and television costs

7,837

 

 

8,933

 

 

 

 

 

Investments

7,883

 

 

6,989

 

 

 

 

 

Investment securing collateralized obligation

 

 

694

 

 

 

 

 

Property and equipment, net

44,437

 

 

48,322

 

 

 

 

 

Goodwill

66,154

 

 

68,725

 

 

 

 

 

Franchise rights

59,365

 

 

59,365

 

 

 

 

 

Other intangible assets, net

38,358

 

 

36,128

 

 

 

 

 

Other noncurrent assets, net

5,802

 

 

8,866

 

 

 

 

 

 

$251,684

 

 

$263,414

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

Current Liabilities

 

 

 

Accounts payable and accrued expenses related to trade creditors

$8,494

 

 

$10,826

 

Accrued participations and residuals

1,808

 

 

1,730

 

Deferred revenue

2,182

 

 

2,768

 

Accrued expenses and other current liabilities

10,721

 

 

10,516

 

Current portion of long-term debt

4,398

 

 

4,452

 

Total current liabilities

27,603

 

 

30,292

 

 

 

 

 

Long-term debt, less current portion

107,345

 

 

97,765

 

 

 

 

 

Collateralized obligation

 

 

5,166

 

 

 

 

 

Deferred income taxes

27,589

 

 

28,180

 

 

 

 

 

Other noncurrent liabilities

15,329

 

 

16,765

 

 

 

 

 

Redeemable noncontrolling interests and redeemable subsidiary preferred stock

1,316

 

 

1,372

 

 

 

 

 

Equity

 

 

 

Comcast Corporation shareholders’ equity

71,613

 

 

82,726

 

Noncontrolling interests

889

 

 

1,148

 

Total equity

72,502

 

 

83,874

 

 

 

 

 

 

$251,684

 

 

$263,414

 

TABLE 4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Income Attributable to Comcast Corporation to Adjusted EBITDA (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

 

 

 

Twelve Months Ended

December 31,

 

 

 

 

 

(in millions)

2018

 

2019

 

 

 

 

2018

 

2019

Net income attributable to Comcast Corporation

$2,511

 

 

$3,162

 

 

 

$11,731

 

 

$13,057

 

Net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock

71

 

 

38

 

 

 

131

 

 

266

 

Income tax expense

486

 

 

861

 

 

 

3,380

 

 

3,673

 

Interest expense

1,129

 

 

1,113

 

 

 

3,542

 

 

4,567

 

Investment and other (income) loss, net

317

 

 

73

 

 

 

225

 

 

(438

)

Depreciation, amortization and other operating gains

3,197

 

 

3,177

 

 

 

10,676

 

 

12,953

 

Adjustments (1)

480

 

 

12

 

 

 

480

 

 

180

 

Adjusted EBITDA

$8,191

 

 

$8,436

 

 

 

$30,165

 

 

$34,258

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

 

 

 

Twelve Months Ended

December 31,

 

 

 

 

 

(in millions)

2018

 

2019

 

 

 

 

2018

 

2019

Net cash provided by operating activities

$5,790

 

 

$6,235

 

 

 

$24,297

 

 

$25,697

 

Capital expenditures

(3,167

)

 

(3,087

)

 

 

(9,774

)

 

(9,953

)

Cash paid for capitalized software and other intangible assets

(560

)

 

(789

)

 

 

(1,935

)

 

(2,475

)

Adjustments (2)

 

 

125

 

 

 

 

 

125

 

Total Free Cash Flow

$2,063

 

 

$2,484

 

 

 

$12,588

 

 

$13,394

 

 

 

 

 

 

 

 

 

 

Alternate Presentation of Free Cash Flow (Unaudited)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

 

Twelve Months Ended

December 31,

 

 

 

(in millions)

2018

 

2019

 

 

 

 

2018

 

2019

Adjusted EBITDA

$8,191

 

 

$8,436

 

 

 

$30,165

 

 

$34,258

 

Capital expenditures

(3,167

)

 

(3,087

)

 

 

(9,774

)

 

(9,953

)

Cash paid for capitalized software and other intangible assets

(560

)

 

(789

)

 

 

(1,935

)

 

(2,475

)

Cash interest expense

(657

)

 

(1,087

)

 

 

(2,897

)

 

(4,254

)

Cash taxes

(822

)

 

(741

)

 

 

(2,355

)

 

(3,231

)

Changes in operating assets and liabilities

(802

)

 

(665

)

 

 

(1,313

)

 

(2,335

)

Noncash share-based compensation

219

 

 

231

 

 

 

826

 

 

1,021

 

Other (3)

(339

)

 

61

 

 

 

(129

)

 

238

 

Adjustments (2)

 

 

125

 

 

 

 

 

125

 

Total Free Cash Flow

$2,063

 

 

$2,484

 

 

 

$12,588

 

 

$13,394

 

(1)

4th quarter and year to date 2019 Adjusted EBITDA excludes $12 million and $180 million of other operating and administrative expense, respectively, related to the Sky transaction. 4th quarter and year to date 2018 Adjusted EBITDA excludes $355 million of other operating and administrative expense related to the Sky transaction and $125 million of other operating and administrative expense related to a legal settlement.

 

 

 

 

 

 

 

 

 

 

(2)

4th quarter and year to date 2019 adjustments for this presentation include a $125 million payment related to a legal settlement.

 

 

(3)

4th quarter and year to date 2019 include decreases of $12 million and $180 million of costs related to the Sky transaction, respectively, as these amounts are excluded from Adjusted EBITDA. 4th quarter 2018 includes decreases of $355 million and $125 million related to the Sky transaction and a legal settlement, 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

December 31,

 

 

 

 

Twelve Months Ended

December 31,

 

 

 

 

 

 

2018

 

2019

 

 

 

 

2018

 

2019

(in millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

EPS

 

$

 

EPS

 

 

 

 

$

 

EPS

 

$

 

EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Comcast Corporation

$2,511

 

$0.55

 

$3,162

 

$0.68

 

 

$11,731

 

$2.53

 

$13,057

 

$2.83

Growth %

 

 

 

 

25.9

%

 

23.6

%

 

 

 

 

 

 

11.3

%

 

11.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of acquisition-related intangible assets (1)

361

 

 

0.08

 

 

401

 

0.09

 

 

836

 

 

0.18

 

 

1,581

 

0.35

Investments (2)

291

 

 

0.06

 

 

90

 

0.02

 

 

162

 

 

0.03

 

 

(227)

 

(0.05)

Items affecting period-over-period comparability:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax adjustments (3)

(244

)

 

(0.05

)

 

 

 

 

(224

)

 

(0.05

)

 

(125)

 

(0.03)

Gains and losses related to businesses and investments (4)

 

 

 

 

 

 

 

(301

)

 

(0.06

)

 

(96)

 

(0.02)

Loss on early redemption of debt (5)

 

 

 

 

 

 

 

 

 

 

 

42

 

0.01

Costs related to Sky transaction and Twenty-First Century Fox offer (6)

280

 

 

0.06

 

 

10

 

 

 

383

 

 

0.08

 

 

146

 

0.03

Purchase accounting adjustments (7)

 

 

 

 

 

 

 

 

 

 

 

39

 

0.01

Legal settlement (8)

93

 

 

0.02

 

 

 

 

 

93

 

 

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Comcast Corporation (excluding adjustments)

$3,292

 

$0.72

 

$3,663

 

$0.79

 

 

$12,680

 

$2.73

 

$14,417

 

$3.13

Growth %

 

 

 

 

11.3

%

 

9.7

%

 

 

 

 

 

 

13.7

%

 

14.7

%

(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 EPS.

 

Three Months Ended

December 31,

 

 

Twelve Months Ended

December 31,

 

2018

 

2019

 

 

2018

 

2019

Amortization of acquisition-related intangible assets before income taxes

$465

 

$503

 

 

$1,104

 

$1,992

Amortization of acquisition-related intangible assets, net of tax

$361

 

$401

 

 

$836

 

$1,581

(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

December 31,

 

 

Twelve Months Ended

December 31,

 

2018

 

2019

 

 

2018

 

2019

Realized and unrealized (gains) losses on equity securities, net

$137

 

($74

)

 

 

$187

 

($656

)

Equity in net (income) losses of investees, net

255

 

192

 

 

 

31

 

347

 

Investments before income taxes

392

 

118

 

 

 

218

 

(309

)

Investments, net of tax

$291

 

$90

 

 

 

$162

 

($227

)

(3)

2019 year to date net income attributable to Comcast Corporation includes $125 million of income tax benefits recorded in the 3rd quarter 2019 related to the impact of certain state tax law adjustments. 4th quarter 2018 net income attributable to Comcast Corporation includes a $244 million income tax benefit related to a reduction of our net deferred tax liabilities as a result of the Sky transaction. 2018 year to date net income attributable to Comcast Corporation includes a $148 million income tax expense adjustment recorded in the 3rd quarter 2018 related to the impact of certain state tax law changes and federal tax reform and a $128 million net income tax benefit recorded in the 1st quarter 2018 as a result of federal tax legislation enacted in 2018.

 

(4)

2019 year to date net income attributable to Comcast Corporation includes a gain of $219 million in other income, $163 million net of tax, related to our investment in Hulu and $90 million of other losses, $67 million net of tax, related to an impairment of an equity method investment. 2018 year to date net income attributable to Comcast Corporation includes $141 million of other operating gains, $105 million net of tax, related to the sale of a business in our Filmed Entertainment segment, $200 million of other operating gains, $148 million net of tax, resulting from the sale of a controlling interest in our arena management-related businesses and $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)

2019 year to date net income attributable to Comcast Corporation includes $56 million of interest expense, $42 million net of tax, resulting from the early redemption of debt.

 

(6)

4th quarter and year to date 2019 net income attributable to Comcast Corporation includes $12 million and $180 million of operating costs and expenses, $10 million and $146 million net of tax, respectively, related to the Sky transaction, primarily relating to the replacement of share-based compensation awards and costs related to integration activities. 4th quarter 2018 net income attributable to Comcast Corporation includes $355 million of operating costs and expenses, $18 million of interest expense and $64 million of income in other (income) loss, net, ($309 million in total, $280 million net of tax) related to the Sky transaction. 2018 year to date net income attributable to Comcast Corporation includes $389 million of operating costs and expenses, $63 million of interest expense and $4 million of income in other (income) loss, net, ($448 million in total, $383 million net of tax) related to the Sky transaction and the Twenty-First Century Fox offer.

 

(7)

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.

 

(8)

4th quarter 2018 net income attributable to Comcast Corporation includes $125 million of other operating and administrative expense, $93 million net of tax, related to a legal settlement.

 
Note: Minor differences may exist due to rounding.
TABLE 6

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Cable Networks Revenue Excluding 2018 Olympics (Unaudited)

 

 

Three Months Ended

December 31,

 

 

Twelve Months Ended

December 31,

 

 

 

(in millions)

2018

 

2019

 

Growth %

 

 

2018

 

2019

 

Growth %

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

$2,892

 

 

$2,927

 

 

1.2%

 

 

$11,773

 

 

$11,513

 

 

(2.2%)

 

 

 

 

 

 

 

 

 

 

 

 

 

2018 Olympics

 

 

 

 

 

 

 

(378

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue excluding 2018 Olympics

$2,892

 

 

$2,927

 

 

1.2%

 

 

$11,395

 

 

$11,513

 

 

1.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Broadcast Television Revenue Excluding 2018 Olympics and 2018 Super Bowl (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

 

Twelve Months Ended

December 31,

 

 

 

(in millions)

2018

 

2019

 

Growth %

 

 

2018

 

2019

 

Growth %

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

$3,099

 

 

$3,162

 

 

2.1%

 

 

$11,439

 

 

$10,261

 

 

(10.3%)

 

 

 

 

 

 

 

 

 

 

 

 

 

2018 Olympics

 

 

 

 

 

 

 

(770

)

 

 

 

 

2018 Super Bowl

 

 

 

 

 

 

 

(423

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue excluding 2018 Olympics and 2018 Super Bowl

$3,099

 

 

$3,162

 

 

2.1%

 

 

$10,246

 

 

$10,261

 

 

0.1%

 
 

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 December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$4,587

 

$434

 

 

$5,021

 

 

$27,846

 

 

$433

 

$28,279

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses and other

 

3,895

 

361

 

 

4,256

 

 

19,655

 

 

361

 

20,016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$692

 

$73

 

 

$765

 

 

$8,191

 

 

$72

 

$8,263

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$5,040

 

$—

 

 

$5,040

 

 

 

$28,398

 

 

$—

 

$28,398

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses and other

 

4,275

 

 

 

4,275

 

 

 

19,962

 

 

 

19,962

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$765

 

$—

 

 

$765

 

 

 

$8,436

 

 

$—

 

$8,436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Growth Rates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

9.9%

 

 

 

 

0.4%

 

 

2.0%

 

 

 

 

0.4%

Operating costs and expenses and other

 

9.7%

 

 

 

 

0.4%

 

 

1.6%

 

 

 

 

(0.3%)

Adjusted EBITDA

 

10.6%

 

 

 

 

—%

 

 

3.0%

 

 

 

 

2.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$4,587

 

$15,227

 

 

$19,814

 

 

$94,507

 

 

$15,011

 

$109,518

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses and other

 

3,895

 

13,025

 

 

16,920

 

 

64,342

 

 

12,814

 

77,156

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$692

 

$2,202

 

 

$2,894

 

 

$30,165

 

 

$2,197

 

$32,362

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$19,219

 

$—

 

 

$19,219

 

 

$108,942

 

 

$—

 

$108,942

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses and other

 

16,120

 

 

 

16,120

 

 

74,684

 

 

 

74,684

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$3,099

 

$—

 

 

$3,099

 

 

$34,258

 

 

$—

 

$34,258

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Growth Rates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

NM

 

 

 

 

(3.0%)

 

 

15.3%

 

 

 

 

(0.5%)

Operating costs and expenses and other

 

NM

 

 

 

 

(4.7%)

 

 

16.1%

 

 

 

 

(3.2%)

Adjusted EBITDA

 

NM

 

 

 

 

7.1%

 

 

13.6%

 

 

 

 

5.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

Note: Minor differences may exist due to rounding.

TABLE 8

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Sky Constant Currency Growth (Unaudited)

 

 

Three Months Ended

December 31,

 

 

Twelve Months Ended

December 31,

 

 

 

(in millions)

2018(1)

 

2019

 

Growth %

 

 

 

 

2018(1)

 

2019

 

Growth %

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct-to-Consumer

$3,932

 

 

$4,022

 

 

2.3%

 

 

$15,326

 

 

$15,538

 

 

1.4%

Content

361

 

 

371

 

 

2.7%

 

 

1,196

 

 

1,432

 

 

19.7%

Advertising

675

 

 

647

 

 

(4.1%)

 

 

2,376

 

 

2,249

 

 

(5.4%)

Revenue

$4,968

 

 

$5,040

 

 

1.4%

 

 

$18,898

 

 

$19,219

 

 

1.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses

$4,206

 

 

$4,275

 

 

1.6%

 

 

$16,134

 

 

$16,120

 

 

(0.1%)

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$762

 

 

$765

 

 

0.4%

 

 

$2,764

 

 

$3,099

 

 

12.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

Note: Minor differences may exist due to rounding.