Comcast's Q1 Earnings Surpass Estimates, Revenues Decline Y/Y

Core Insights - Comcast reported first-quarter 2025 adjusted earnings of $1.09 per share, exceeding the Zacks Consensus Estimate by 11.22% and reflecting a year-over-year increase of 4.8% [1] - Consolidated revenues decreased by 0.6% year over year to $29.88 billion, slightly surpassing the Zacks Consensus Estimate by 0.69% [1] Revenue Breakdown - Connectivity & Platforms revenues, accounting for 67.4% of total revenues, declined by 0.7% year over year to $20.13 billion, with Residential Connectivity revenues down 1.3% to $17.6 billion and Business Services Connectivity revenues up 3.7% to $2.49 billion [2] - Total domestic broadband customer net losses were 199K, while domestic wireless line net additions were 323K, and domestic video customer net losses were 427K [3] - Content & Experiences revenues, making up 35% of total revenues, increased by 0.8% year over year to $10.45 billion [3] Segment Performance - Media revenues rose by 1.1% year over year to $6.44 billion, driven by higher international networks revenues, despite lower domestic advertising revenues [4] - Peacock's paid subscribers increased by 20.6% year over year to 41 million, with revenues jumping 16% to $1.2 billion [4] - Studios revenues increased by 3% year over year to $2.82 billion, attributed to higher content licensing and other revenues, although theatrical revenues decreased [5] - Theme Parks revenues declined by 5.2% year over year to $1.87 billion, primarily due to lower guest attendance impacted by the Hollywood wildfires [6] Operating Metrics - Total costs and expenses decreased marginally by 0.1% year over year to $24.22 billion, with programming & production costs down 4.6% to $8.41 billion and marketing expenses up 2.6% to $2.07 billion [7] - Adjusted EBITDA increased by 1.9% year over year to $9.53 billion, with Connectivity & Platforms adjusted EBITDA rising by 1.5% to $8.34 billion, while Content & Experiences adjusted EBITDA was $1.49 billion, down 0.1% [8] Cash Flow and Capital Management - As of March 31, 2025, cash and cash equivalents were $8.59 billion, a decrease from $7.32 billion as of December 31, 2024 [9] - Consolidated total debt was $99.12 billion, slightly up from $99.09 billion as of December 31, 2024 [9] - Comcast generated $8.29 billion in cash from operations, an increase from $8.08 billion in the previous quarter, with free cash flow rising to $5.42 billion from $3.26 billion [10] - The company returned $3.2 billion to shareholders through dividends totaling $1.2 billion and share repurchases of 56.2 million shares for $2 billion, reducing shares outstanding by 5% [11]