Comcast(US:CMCSA)2024-07-23 11:11Financial Performance - Comcast reported a revenue of $29.688 billion for Q2 2024, a decrease of 2.7% compared to $30.513 billion in Q2 2023[1]. - Net income attributable to Comcast decreased by 7.5% to $3.929 billion, down from $4.248 billion in the prior year[1]. - Adjusted EPS increased by 7.0% to $1.21, while earnings per share decreased by 1.3% to $1.00[1][2]. - Free cash flow was $1.338 billion, a significant decline of 60.9% from $3.421 billion in Q2 2023[1]. - Operating income for the first half of 2024 was $12,445 million, slightly up from $12,355 million in the same period of 2023, reflecting a 0.7% increase[36]. - Free cash flow for the first half of 2024 was $5,877 million, a decrease of 18.6% compared to $7,221 million in the first half of 2023[44]. - The diluted earnings per share for Q2 2024 was $1.00, compared to $1.02 in Q2 2023, reflecting a decrease of 1.96%[36]. - Comcast reported a net income of $3,929 million for the three months ended June 30, 2024, a decrease of 7.5% compared to $4,248 million in the same period of 2023[46]. - Adjusted net income for the same period was $4,735 million, reflecting a slight increase of 0.2% from $4,723 million year-over-year[46]. Revenue Breakdown - Total Content & Experiences Revenue decreased by 7.5% to $10,057 million compared to $10,873 million in the prior year period, driven by declines in Studios and Theme Parks[11]. - Media Revenue increased by 2.1% to $6,324 million, primarily due to a 5.7% increase in Domestic Distribution revenue, offset by a 1.7% decrease in Domestic Advertising revenue[12]. - Studios Revenue decreased by 27.0% to $2,253 million, primarily due to a 74.1% decline in Theatrical revenue and a 5.9% decrease in Content Licensing revenue[15]. - Theme Parks Revenue decreased by 10.6% to $1,975 million, attributed to lower guest attendance at domestic parks and negative foreign currency impacts at international parks[17]. - Corporate & Other Revenue increased by 8.0% to $706 million, with Adjusted EBITDA loss improving to $260 million from a loss of $303 million in the prior year[22]. Cash Flow and Capital Expenditures - Capital expenditures decreased by 8.1% to $2.7 billion, with Connectivity & Platforms capital expenditures down by 12.9% to $1.9 billion[2]. - Capital expenditures for the first half of 2024 were $5,354 million, a slight decrease from $5,627 million in the same period of 2023[38]. - The company reported a net cash provided by operating activities of $12,572 million for the first half of 2024, down from $14,426 million in the first half of 2023, a decline of 12.9%[38]. Subscriber and User Growth - Domestic broadband revenue grew by 3.0% to $6.6 billion, driven by a 3.6% increase in average revenue per user (ARPU)[1][7]. - Peacock paid subscribers rose by 38.0% year-over-year to 33 million, with revenue increasing by 28% to $1.0 billion[1][8]. - Domestic wireless customer lines increased by 20% year-over-year to 7.2 million, including net additions of 322,000 in Q2 2024[1][6]. Adjusted EBITDA Analysis - Connectivity & Platforms Adjusted EBITDA increased by 1.6% to $8.5 billion, with an Adjusted EBITDA margin reaching a record high of 41.9%[1][4]. - Adjusted EBITDA for Content & Experiences decreased by 10.9% to $1,949 million, with declines in Theme Parks and Studios partially offset by growth in Media[11]. - Adjusted EBITDA for Media increased by 9.0% to $1,356 million, driven by higher revenue and consistent operating expenses[12]. - Adjusted EBITDA for Studios decreased by 51.4% to $124 million, reflecting lower revenue that outweighed reduced operating expenses[15]. - Adjusted EBITDA for Theme Parks decreased by 24.1% to $632 million, reflecting lower revenue despite reduced operating expenses[17]. Balance Sheet and Assets - Total current liabilities decreased to $35,342 million as of June 30, 2024, down from $40,198 million at the end of 2023, representing a reduction of 12.5%[40]. - Cash, cash equivalents, and restricted cash at the end of Q2 2024 were $6,141 million, down from $7,202 million at the end of Q2 2023, indicating a decline of 14.7%[38]. - Total assets as of June 30, 2024, were $262,555 million, a decrease from $264,811 million at the end of 2023, representing a reduction of 0.9%[40]. Other Financial Metrics - The company reported realized and unrealized gains on equity securities of $89 million for the three months ended June 30, 2024, compared to $38 million in the same period of 2023[48]. - Amortization of acquisition-related intangible assets before income taxes was $563 million for the three months ended June 30, 2024, slightly down from $572 million in the prior year[47]. - The company reported an equity in net income losses of investees of $403 million for the three months ended June 30, 2024, significantly up from $3 million in the same period of 2023[48].