Core Viewpoint - Comcast is shifting its focus to the mobile business for growth after experiencing a loss of residential broadband customers, indicating a strategic pivot in response to market challenges [1][2]. Group 1: Company Performance - Comcast reported a loss of 139,000 residential broadband customers in the fourth quarter, highlighting a significant challenge in maintaining its customer base [1]. - Despite stable revenue, Comcast is facing a slowdown in customer growth, attributed to increased competition from wireless providers like Verizon and T-Mobile [2]. Group 2: Strategic Shift - Company executives announced a new strategy to package mobile services with broadband in an effort to attract more customers and counteract the decline in broadband subscriptions [2].

Core Insights - Comcast closed 2024 with strong financial performance, exceeding Wall Street estimates with revenue of $31.9 billion, a 2% increase year-over-year, and adjusted earnings per share of 96 cents, surpassing the consensus forecast by 10 cents [1] Group 1: Financial Performance - Revenue in the Content & Experiences division rose 3.5% to $7.2 billion, driven by distribution growth in the Media segment [2] - The Studios unit experienced an 85% year-over-year increase in EBITDA and 7% revenue growth to $3.27 billion, attributed to successful box office performances of "Wicked" and "The Wild Robot" [2] - Full-year 2024 results were described by CEO Brian Roberts as the best financial performance in the company's 60-year history, with record revenue, EBITDA, and EPS, alongside significant free cash flow [4] Group 2: Streaming and Customer Metrics - Peacock's revenue increased by 28% in the quarter to $1.3 billion, although it is still not breaking even, with EBITDA losses reduced to $372 million, less than half of the previous year's level [3] - The number of domestic video customers decreased by 389,000, ending the year at 12.5 million, as Charter Communications surpassed Comcast as the No. 1 pay-TV operator in the U.S. [4] Group 3: Organizational Changes - NBCU is undergoing restructuring, with new leadership overseeing a revamp of the organizational chart, following the departure of key executives [5]

Financial Performance - Comcast reported record revenue of $31,915 million for Q4 2024, a 2.1% increase from Q4 2023, and full-year revenue of $123,731 million, up 1.8% year-over-year[3][6] - Net income attributable to Comcast increased by 46.6% to $4,778 million in Q4 2024, and by 5.2% to $16,192 million for the full year[3][6] - Adjusted EBITDA rose 9.9% to $8,807 million in Q4 2024, and increased by 1.2% to $38,069 million for the full year[5][6] - Free cash flow reached $3,260 million in Q4 2024, a 90.9% increase, and totaled $12,543 million for the full year, down 3.2%[5][8] - Comcast Corporation reported Q4 2024 revenue of $31,915 million, a 2.1% increase from $31,253 million in Q4 2023[39] - Net income attributable to Comcast Corporation for Q4 2024 was $4,778 million, up 46.6% from $3,260 million in Q4 2023[48] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $38,069 million, a 1.2% increase from $37,633 million in 2023[45] - Free Cash Flow for the twelve months ended December 31, 2024, was $12,543 million, compared to $12,962 million in 2023, reflecting a decrease of 3.2%[44] - Comcast's diluted earnings per share for Q4 2024 was $1.24, a 54.1% increase from $0.81 in Q4 2023[48] Shareholder Returns - Comcast returned $3.2 billion to shareholders in Q4 2024 through $1.2 billion in dividends and $2.0 billion in share repurchases, with a total return of capital for the year at $13.5 billion[5][8] - Comcast announced a 6.5% increase in its dividend to $1.32 per share for 2025, marking the 17th consecutive annual increase[5][9] Revenue Growth by Segment - Connectivity revenue grew by 4.9% to $11.5 billion in Q4 2024 and by 5.7% to $45.1 billion for the full year, driven by domestic broadband and business services[5][10] - Peacock revenue surged 46% to $4.9 billion for the full year, with a 28% increase to $1.3 billion in Q4 2024[5][10] - Total Content & Experiences revenue reached $12,078 million, reflecting a 5.0% increase, driven primarily by Media and Studios[18] - Media revenue increased to $7,222 million, a 3.5% growth, primarily due to higher domestic distribution revenue[19] - Studios revenue grew by 6.7% to $3,269 million, with theatrical revenue increasing by 50.0% due to successful recent releases[21] - Theme Parks revenue remained stable at $2,374 million, with a slight increase of 0.1% year-over-year[23] - Corporate & Other revenue increased to $784 million, a 3.2% rise, while Adjusted EBITDA improved to a loss of $484 million, narrowing from a loss of $494 million[27] Customer Metrics - Total customer relationships for Connectivity & Platforms decreased by 58,000 to 51.6 million, primarily due to losses in domestic broadband customers[11][12] - Business Services Connectivity revenue increased to $2,448 million, a 3.7% year-over-year growth[15] - The total revenue for the residential connectivity segment was $8,620 million for the three months ended December 31, 2024, with a constant currency increase of $36 million[53] - The total revenue for the business services connectivity segment remained stable at $2,361 million for the three months ended December 31, 2024, with no significant changes year-over-year[53] Capital Expenditures and Investments - Capital expenditures rose 17.9% to $3.9 billion in Q4 2024, with significant investments in scalable infrastructure and the construction of the Epic Universe theme park[7][10] - Capital expenditures for the twelve months ended December 31, 2024, were $12,181 million, a slight decrease from $12,242 million in 2023[40] Cash Flow and Assets - Comcast's total current assets increased to $26,801 million in 2024 from $23,987 million in 2023, representing an increase of 11.8%[42] - Comcast's cash, cash equivalents, and restricted cash at the end of the period increased to $7,377 million in 2024 from $6,282 million in 2023[41] - The company reported a net cash provided by operating activities of $27,673 million for the twelve months ended December 31, 2024, down from $28,501 million in 2023[40] Other Financial Metrics - The company anticipates continued growth in enterprise solutions and small business customer segments, driven by higher average rates[16] - The equity in net income losses of investees improved to $141 million for the three months ended December 31, 2024, compared to a loss of $377 million in the same period of 2023[50] - The total operating expenses for the three months ended December 31, 2024, were $11,782 million, an increase of $80 million compared to the same period in 2023[53] - The total investments, net of tax, for the three months ended December 31, 2024, were $220 million, a significant recovery from a loss of $286 million in the same period of 2023[50]

Core Viewpoint - Comcast's fourth-quarter earnings report is highly anticipated, with a focus on its broadband business and the spinout of its cable TV networks [1][5]. Broadband Business - Comcast's broadband business is experiencing a slump in customer growth, with an expected loss of over 100,000 broadband customers in the fourth quarter [2][3]. - The market remains "competitively intense," with increased competition from wireless providers like Verizon and T-Mobile [3]. - Despite the expected subscriber loss, domestic broadband revenue continues to grow due to rising prices, indicating stability in the broadband business [3]. Streaming and Cable TV Networks - Wall Street is looking for updates on NBCUniversal's streaming service, Peacock, which saw a customer increase during the third quarter due to the Summer Olympics [4]. - The spinout of Comcast's cable TV networks, including CNBC, MSNBC, E!, and USA, is also a point of interest for investors [5]. - Attendance numbers at Universal theme parks are being monitored, as they have declined in recent quarters following a surge post-COVID lockdowns [5]. Financial Performance - Comcast reported earnings per share of 86 cents and revenue of $31.64 billion [7].

Stock Performance and Industry Context - Comcast's stock has returned -2% over the past month, underperforming the Zacks S&P 500 composite's +2.5% change [1] - The Zacks Cable Television industry, which includes Comcast, has lost 0.4% over the same period [1] Earnings Estimates and Revisions - Comcast is expected to post earnings of $0.88 per share for the current quarter, representing a year-over-year change of +4.8% [4] - The Zacks Consensus Estimate for the current quarter has changed -0.5% over the last 30 days [4] - The consensus earnings estimate for the current fiscal year is $4.25, indicating a year-over-year change of +6.8%, and has remained unchanged over the last 30 days [4] - For the next fiscal year, the consensus earnings estimate is $4.41, indicating a change of +3.8% from the previous year, and has remained unchanged over the past month [5] - Comcast is rated Zacks Rank 3 (Hold) due to the recent change in consensus estimate and other factors related to earnings estimates [6] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $31.63 billion, representing a year-over-year change of +1.2% [8] - The sales estimates for the current and next fiscal years are $123.47 billion and $122.77 billion, indicating changes of +1.6% and -0.6%, respectively [8] Last Reported Results and Surprise History - Comcast reported revenues of $32.07 billion in the last reported quarter, representing a year-over-year change of +6.5% [9] - EPS for the same period was $1.12, compared to $1.08 a year ago [9] - The reported revenues represent a surprise of +0.86% compared to the Zacks Consensus Estimate of $31.8 billion [10] - The EPS surprise was +5.66% [10] - The company has beaten consensus EPS estimates in each of the trailing four quarters and topped consensus revenue estimates three times over this period [10] Valuation - Comcast is graded A on the Zacks Value Style Score, indicating that it is trading at a discount to its peers [14] - The Zacks Value Style Score evaluates both traditional and unconventional valuation metrics to determine if a stock is overvalued, rightly valued, or temporarily undervalued [13]

Tech leader's sizable investment brings several communities new reliable connectivity optionsCHARLOTTE COUNTY, Fla., Jan. 24, 2025 /PRNewswire/ -- Comcast today announced a $15 million investment to build and expand its high-speed, reliable network across Charlotte County, Florida. Thousands of homes and businesses in the areas of Rotunda West, Gulf Cove, South Gulf Cove, Port Charlotte and other neighborhoods will have access to Xfinity and Comcast Business services. Construction is ongoing and services wi ...

As more pay-TV operators embrace slimmer packages, Comcast Xfinity is rolling out Sports & News TV, a $70-a-month offering based on two foundational elements of live programming. The $70 price is available only to customers who also have Xfinity internet service. The package includes more than 50 broadcast and cable news and sports channels as well as NBCUniversal streaming service Peacock, which has ramped up its live sports offerings and integrated elements of MSNBC’s live news coverage. The bundle also ...

Merger Speculation - Wall Street is discussing the potential merger of Comcast and Charter Spectrum, which would create the largest cable provider in the US, with significant resources to impact the media industry [1] - The two companies operate in separate, non-overlapping territories, making them more complementary than competitive, and a merger would result in a dominant provider of linear cable TV networks and other services across nearly every state in the US [2] Convergence and Strategic Moves - Comcast and Charter have been converging through joint ventures and other relationships, with Comcast planning to spin out most of its cable networks later this year, creating a new entity called SpinCo [3] - SpinCo is expected to be well-capitalized and may pursue acquisitions of other cable networks, while Comcast's balance sheet is being clarified for potential future deals [4] - Both companies have restructured carriage deals with media companies, dropping some channels, moderating fee hikes, and gaining rights to include subscription streaming services [7] Wireless Growth and Technological Integration - Both companies are experiencing growth in their wireless offerings, relying on Verizon's backbone services for their low-cost mobile phone services [7] - They share an in-home tech platform, Xumo, built on Comcast's X-1 technology, which replaces traditional cable boxes and enables a wider array of services [7] Potential Synergies and Challenges - A merger could lead to modest savings through corporate duplications and unified advertising, but operational synergies may be limited as both companies already have significant purchasing and bargaining leverage [5][8] - Integration of wireless services would be relatively easy for customers, but it would not yield significant efficiencies, as both companies already allow customers to use each other's Wi-Fi hotspots [9] Regulatory and Political Considerations - Regulatory approvals for a merger would likely come with expensive conditions, even under a light-handed administration, and state-level oversight could impose additional requirements [6][9] - A combined company controlling more than half of US broadband connections would be a "juicy target" for regulatory scrutiny, especially with potential changes in political control at the federal level [10] - State Public Service and Public Utility Commissions could impose various conditions on the merger, such as low-income pricing mandates or network expansions in underserved areas [10]

Goldman Sachs analyst Michael Ng reiterated the Buy rating on Comcast Corporation CMCSA with a price forecast of $50.The analyst projects the company to report in-line results for the fourth quarter, with revenue of $31.6 billion, EBITDA of $8.50 billion, and EPS of $0.86.Segment forecasts include Connectivity and Platforms EBITDA of $7.67 billion, slightly below consensus, and Content and Experiences EBITDA of $1.13 billion, slightly above consensus, Ng adds.In Connectivity & Platforms, broadband net adds ...

Tech leader's sizable investment will bring Xfinity, Comcast Business and NOW services to parts of Camden County.KINGSLAND, Ga., Jan. 14, 2025 /PRNewswire/ -- A new and powerful Internet network is now online in parts of Camden County, connecting communities to high-speed, reliable Internet. Thousands of homes and businesses in the city of Kingsland and surrounding areas can now access Xfinity, Comcast Business and NOW services. Comcast invested $7 million to make this technology infrastructure project poss ...