Comcast(US:CMCSA)2025-07-31 19:18PART I. FINANCIAL INFORMATION Presents Comcast's unaudited condensed consolidated financial statements and management's analysis for Q2 and H1 2025 Item 1. Financial Statements Presents Comcast's unaudited condensed consolidated financial statements for Q2 and H1 2025, highlighting a significant net income increase due to the Hulu sale and strong operating cash flow Condensed Consolidated Statements of Income Q2 2025 revenue increased 2.1% to $30.3 billion, with net income surging to $11.1 billion and diluted EPS to $2.98, primarily due to investment gains Q2 & H1 2025 Financial Performance (in millions, except EPS) | Metric | Q2 2025 | Q2 2024 | YoY Change | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $30,313 | $29,688 | +2.1% | $60,199 | $59,746 | +0.8% | | Operating Income | $5,992 | $6,635 | -9.7% | $11,650 | $12,445 | -6.4% | | Investment and other income (loss), net | $9,760 | $(434) | NM | $9,644 | $(137) | NM | | Net Income Attributable to Comcast | $11,123 | $3,929 | +183.1% | $14,498 | $7,785 | +86.2% | | Diluted EPS | $2.98 | $1.00 | +198.0% | $3.86 | $1.97 | +95.9% | Condensed Consolidated Statements of Cash Flows Net cash from operating activities for H1 2025 increased to $16.1 billion, while investing and financing activities used $7.9 billion and $5.9 billion respectively Six Months Ended June 30 Cash Flow Summary (in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $16,109 | $12,572 | | Net cash used in investing activities | $(7,903) | $(6,879) | | Net cash used in financing activities | $(5,881) | $(5,817) | | Increase (decrease) in cash | $2,371 | $(141) | Condensed Consolidated Balance Sheets As of June 30, 2025, total assets reached $273.9 billion, total debt $101.5 billion, and total equity grew to $97.2 billion Balance Sheet Summary (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $9,687 | $7,322 | | Goodwill | $61,812 | $58,209 | | Total Assets | $273,850 | $266,211 | | Total Debt (Current + Noncurrent) | $101,528 | $99,093 | | Total Liabilities | $176,392 | $180,173 | | Total Equity | $97,228 | $86,038 | Notes to Condensed Consolidated Financial Statements Detailed notes cover segments, revenue, and significant transactions, including the Versant Media Group spin-off, Nitel acquisition, and the $9.4 billion pre-tax gain from the Hulu sale - Comcast announced its intention to create Versant Media Group, Inc., a new independent publicly traded company, through a tax-free spin-off of select cable television networks and digital assets, targeted for completion around the end of 202531 - In April 2025, the company acquired Nitel, a network-as-a-service provider, for $1.3 billion in cash to enhance its enterprise customer connectivity solutions53 - In June 2025, Comcast sold its 33% interest in Hulu, receiving total cash proceeds of $9.6 billion, resulting in a $9.4 billion pre-tax gain recognized in 'investment and other income (loss), net'5859 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses consolidated and segment results, highlighting Content & Experiences growth, stable Connectivity & Platforms revenue, the Hulu sale's impact, strong liquidity, and capital returns Consolidated Operating Results Q2 2025 consolidated revenue grew 2.1% to $30.3 billion, with operating income declining, but net income surged to $11.1 billion due to a $9.8 billion investment gain from the Hulu sale - The significant increase in 'Investment and other income (loss), net' for Q2 and H1 2025 was primarily driven by a $9.4 billion pre-tax gain from the sale of the company's interest in Hulu8083 - Consolidated depreciation and amortization expense increased in Q2 and H1 2025, partly due to increased depreciation from the opening of the Epic Universe theme park in May 202578 Segment Operating Results Details performance across five segments, showing flat Connectivity & Platforms revenue, 5.6% growth in Content & Experiences driven by Theme Parks and Peacock, and 8.0% growth in Studios Q2 2025 Revenue by Segment (in millions) | Segment | Q2 2025 Revenue | Q2 2024 Revenue | YoY Change | | :--- | :--- | :--- | :--- | | Residential Connectivity & Platforms | $17,814 | $17,824 | -0.1% | | Business Services Connectivity | $2,575 | $2,421 | +6.3% | | Media | $6,440 | $6,324 | +1.8% | | Studios | $2,432 | $2,253 | +8.0% | | Theme Parks | $2,349 | $1,975 | +18.9% | Q2 2025 Adjusted EBITDA by Segment (in millions) | Segment | Q2 2025 Adj. EBITDA | Q2 2024 Adj. EBITDA | YoY Change | | :--- | :--- | :--- | :--- | | Residential Connectivity & Platforms | $7,082 | $7,103 | -0.3% | | Business Services Connectivity | $1,444 | $1,380 | +4.6% | | Media | $1,482 | $1,356 | +9.3% | | Studios | $85 | $124 | -31.0% | | Theme Parks | $658 | $632 | +4.1% | - Peacock's paid subscribers grew to 41 million as of June 30, 2025, up from 33 million a year prior, generating $1.2 billion in revenue for Q2 2025124 - Theme Parks revenue growth was driven by the domestic parks, particularly the Orlando park, following the opening of Epic Universe in May 2025119132 Liquidity and Capital Resources Comcast maintained strong liquidity with $9.7 billion cash, generated $16.1 billion operating cash flow, returned $6.2 billion to shareholders, and anticipates reduced tax payments from new legislation - In January 2025, the Board approved a new $15.0 billion share repurchase authorization, with $3.7 billion used to repurchase 106 million shares during the first six months of 2025169 - The company increased its annualized dividend by 6.5% to $1.32 per share in January 2025 and paid $2.5 billion in dividends during the first half of the year171 - New U.S. legislation signed in July 2025, allowing for 100% immediate deduction of qualified property costs and reinstating immediate deduction of R&D expenses, is expected to significantly reduce the company's income tax payments starting in H2 2025163 Quantitative and Qualitative Disclosures About Market Risk No material changes to market risk disclosures have occurred since the 2024 Annual Report on Form 10-K - There have been no material changes to the company's market risk disclosures since the 2024 Annual Report on Form 10-K184 Controls and Procedures Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting identified during the quarter - The principal executive and financial officers concluded that disclosure controls and procedures were effective as of June 30, 2025185 - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls186 PART II. OTHER INFORMATION Provides additional information on legal proceedings, risk factors, equity security sales, and required exhibits Legal Proceedings Refers to Note 10 of the financial statements for legal proceedings, which are not expected to materially affect financial position - For information on legal proceedings, the report refers to Note 10 of the financial statements189 Risk Factors No material changes to risk factors have occurred since the 2024 Annual Report on Form 10-K filing - No material changes to risk factors have occurred since the filing of the 2024 Annual Report on Form 10-K190 Unregistered Sales of Equity Securities and Use of Proceeds In Q2 2025, Comcast repurchased 49.3 million shares for $1.7 billion, with $12.0 billion remaining under the current authorization Q2 2025 Share Repurchases | Period | Total Shares Purchased | Average Price Per Share | Total Amount Purchased | | :--- | :--- | :--- | :--- | | April 2025 | 22,083,752 | $34.19 | $755,023,294 | | May 2025 | 16,861,674 | $34.69 | $585,006,970 | | June 2025 | 10,337,795 | $34.82 | $359,970,098 | | Total Q2 2025 | 49,283,221 | $34.49 | $1,700,000,362 | - In January 2025, the Board of Directors approved a new share repurchase authorization of $15 billion, with approximately $12.0 billion remaining available as of June 30, 2025192 Exhibits Lists exhibits filed with Form 10-Q, including CEO/CFO certifications and iXBRL formatted financial statements - The report includes required certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002193