Comcast(CMCSA) - 2024 Q1 - Quarterly Results

Executive Summary & Q1 2024 Highlights Comcast's Q1 2024 delivered strong Adjusted EPS and free cash flow growth, significant shareholder returns, and robust segment performance Q1 2024 Overview Comcast achieved solid Q1 2024 results with double-digit Adjusted EPS and free cash flow growth, significant shareholder returns, and strong performance in connectivity and content - CEO Brian L. Roberts highlighted strong execution in a dynamic market, achieving double-digit growth in Adjusted EPS and free cash flow, while returning $3.6 billion to shareholders[1] | Metric | 2024 ($ in millions) | 2023 ($ in millions) | Change (%) | |:-------------------------------------|:---------------------|:---------------------|:-----------| | Revenue | $30,058 | $29,691 | 1.2% | | Net Income Attributable to Comcast | $3,857 | $3,834 | 0.6% | | Adjusted Net Income | $4,171 | $3,877 | 7.6% | | Adjusted EBITDA | $9,355 | $9,415 | (0.6%) | | Earnings per Share | $0.97 | $0.91 | 6.5% | | Adjusted Earnings per Share | $1.04 | $0.92 | 13.9% | | Net Cash Provided by Operating Activities | $7,848 | $7,228 | 8.6% | | Free Cash Flow | $4,538 | $3,800 | 19.4% | Q1 2024 Highlights Q1 2024 highlights include significant Adjusted EPS and Free Cash Flow growth, increased shareholder returns, improved Connectivity & Platforms margins, and strong Peacock subscriber and film success - Adjusted EPS increased 13.9% to $1.04, and Free Cash Flow reached $4.5 billion[2] - Total return of capital to shareholders increased 13.5% to $3.6 billion, comprising $1.2 billion in dividends and $2.4 billion in share repurchases[2] - Connectivity & Platforms Adjusted EBITDA increased 1.5% to $8.2 billion, with Adjusted EBITDA Margin expanding 30 basis points to 40.5%[2] - Domestic Broadband Average Rate Per Customer grew 4.2%, contributing to a 3.9% increase in Domestic Broadband Revenue to $6.6 billion[2] - Domestic Wireless Customer Lines increased 21% year-over-year to 6.9 million, with 289,000 net additions in Q1[2] - Peacock paid subscribers surged 55% year-over-year to 34 million, adding 3 million net subscribers in Q1. Peacock revenue increased 54% to $1.1 billion, with improved Adjusted EBITDA[2] - Film successes include 'Kung Fu Panda 4' grossing over $480 million worldwide and 'Oppenheimer' becoming the most-watched Pay 1 movie in Peacock's history[2] Consolidated Financial Results Comcast's consolidated results show revenue growth, improved profitability per share, a slight decrease in capital expenditures, and strong increases in operating and free cash flow Overview of Consolidated Results Consolidated revenue increased 1.2%, Adjusted Net Income grew 7.6%, and both EPS and Adjusted EPS showed positive growth, indicating improved per-share profitability - Consolidated revenue increased 1.2% compared to the prior year period[3] - Adjusted Net Income increased 7.6%, while Net Income Attributable to Comcast was consistent[3] | Metric | 2024 | 2023 | Change (%) | |:--------------------|:---------|:---------|:-----------| | Earnings per Share | $0.97 | $0.91 | 6.5% | | Adjusted EPS | $1.04 | $0.92 | 13.9% | Capital Expenditures Total capital expenditures decreased slightly, with Connectivity & Platforms spending less and Content & Experiences increasing investment, notably for the Epic Universe theme park | Segment | 2024 ($ in millions) | 2023 ($ in millions) | Change (%) | |:----------------------------|:---------------------|:---------------------|:-----------| | Total Capital Expenditures | $2,600 | $2,634 | (1.3%) | | Connectivity & Platforms | $1,900 | $1,975 | (3.8%) | | Content & Experiences | $676 | $651 | 3.8% | - Connectivity & Platforms' capital expenditures decreased due to lower spending on customer premise equipment, scalable infrastructure, and support capital, partially offset by higher investment in line extensions[3] - Content & Experiences' capital expenditures increased primarily due to significant spending on the construction of the Epic Universe theme park in Orlando, scheduled to open in 2025[3] Cash Flow and Shareholder Returns Q1 2024 saw strong cash flow generation, with operating activities up 8.6% and free cash flow up 19.4%, alongside $3.6 billion returned to shareholders | Metric | 2024 ($ in millions) | 2023 ($ in millions) | Change (%) | |:-------------------------------------|:---------------------|:---------------------|:-----------| | Net Cash Provided by Operating Activities | $7,848 | $7,228 | 8.6% | | Free Cash Flow | $4,538 | $3,800 | 19.4% | - Comcast paid $1.2 billion in dividends and repurchased 56.0 million shares for $2.4 billion, resulting in a total return of capital to shareholders of $3.6 billion[4] Segment Performance Segment performance shows consistent revenue for Connectivity & Platforms with improved EBITDA margins, while Content & Experiences saw revenue growth but a decline in Adjusted EBITDA Connectivity & Platforms Connectivity & Platforms revenue remained consistent, with Adjusted EBITDA increasing 1.5% to $8.2 billion and margin expanding 30 bps, driven by residential and business services | Metric | 2024 ($ in millions) | 2023 ($ in millions) | Change (%) | |:-------------------------------------|:---------------------|:---------------------|:-----------| | Total Connectivity & Platforms Revenue | $20,275 | $20,153 | 0.6% | | Total Connectivity & Platforms Adjusted EBITDA | $8,218 | $8,093 | 1.5% | | Total Connectivity & Platforms Adjusted EBITDA Margin | 40.5% | 40.2% | 30 bps | - Adjusted EBITDA margin for Connectivity & Platforms increased to 40.5%, reflecting growth in both Residential and Business Services Connectivity Adjusted EBITDA[5] Overall Connectivity & Platforms Performance This section details the revenue and Adjusted EBITDA performance for Residential and Business Services Connectivity within the Connectivity & Platforms segment | Category | 2024 ($ in millions) | 2023 ($ in millions) | Change (%) | |:---------------------------------------|:---------------------|:---------------------|:-----------| | Residential Connectivity & Platforms Revenue | $17,868 | $17,869 | —% | | Business Services Connectivity Revenue | $2,407 | $2,283 | 5.4% | | Residential Connectivity & Platforms Adjusted EBITDA | $6,852 | $6,762 | 1.3% | | Business Services Connectivity Adjusted EBITDA | $1,366 | $1,332 | 2.6% | Customer Relationships Total Connectivity & Platforms customer relationships decreased by 166,000, primarily due to residential declines, while domestic wireless lines saw significant growth - Total Customer Relationships for Connectivity & Platforms decreased by 166,000 to 52.0 million, primarily due to decreases in Residential Connectivity & Platforms customer relationships[7] | Customer Category | 1Q24 (in thousands) | 1Q23 (in thousands) | Net Additions (Losses) 2024 (in thousands) | |:---------------------------------------|:--------------------|:--------------------|:-------------------------------------------| | Domestic Residential Connectivity & Platforms Customer Relationships | 31,555 | 31,826 | (94) | | International Residential Connectivity & Platforms Customer Relationships | 17,782 | 18,051 | (65) | | Business Services Connectivity Customer Relationships | 2,634 | 2,630 | (7) | | Total Connectivity & Platforms Customer Relationships | 51,971 | 52,507 | (166) | | Total Domestic Broadband Customers | 32,188 | 32,324 | (65) | | Total Domestic Wireless Lines | 6,877 | 5,668 | 289 | | Total Domestic Video Customers | 13,618 | 15,528 | (487) | Residential Connectivity & Platforms Residential Connectivity & Platforms revenue remained consistent, driven by broadband, wireless, and international growth, offset by video declines, with Adjusted EBITDA increasing due to lower operating expenses - Revenue for Residential Connectivity & Platforms was consistent year-over-year, driven