U.S. Markets open in 42 mins
  • S&P Futures

    4,464.33
    -9.92 (-0.22%)
     
  • Dow Futures

    34,696.80
    -52.20 (-0.15%)
     
  • Nasdaq Futures

    15,486.67
    -31.08 (-0.20%)
     
  • Russell 2000 Futures

    2,241.04
    +7.84 (+0.35%)
     
  • Crude Oil

    70.31
    -1.66 (-2.31%)
     
  • Gold

    1,758.70
    +7.30 (+0.42%)
     
  • Silver

    22.38
    +0.08 (+0.36%)
     
  • EUR/USD

    1.1719
    -0.0012 (-0.1055%)
     
  • 10-Yr Bond

    1.3120
    -0.0580 (-4.23%)
     
  • Vix

    26.69
    +8.00 (+42.80%)
     
  • GBP/USD

    1.3659
    -0.0078 (-0.5709%)
     
  • USD/JPY

    109.5460
    -0.3490 (-0.3176%)
     
  • BTC-USD

    44,590.88
    -3,435.44 (-7.15%)
     
  • CMC Crypto 200

    1,076.46
    -149.07 (-12.16%)
     
  • FTSE 100

    6,831.47
    -132.17 (-1.90%)
     
  • Nikkei 225

    30,500.05
    +176.75 (+0.58%)
     

Comcast (CMCSA) Q2 Earnings Beat, Broadband User Base Rises

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Comcast CMCSA reported second-quarter 2021 adjusted earnings of 84 cents per share, beating the Zacks Consensus Estimate by 25.4% and increasing 7% year over year.

Consolidated revenues increased 20.4% year over year to $28.5 billion and beat the Zacks Consensus Estimate by 5.2%.

Comcast Corporation Price, Consensus and EPS Surprise

Comcast Corporation Price, Consensus and EPS Surprise
Comcast Corporation Price, Consensus and EPS Surprise

Comcast Corporation price-consensus-eps-surprise-chart | Comcast Corporation Quote

Cable Communication Revenue Details

Revenues increased 10.9% from the year-ago quarter to $16 billion driven by increases in broadband, advertising, wireless, business services, video and other revenues. Total Customer Relationships increased 294K to 33.80 million.

Broadband revenues grew 14.3% year over year to $5.71 billion, primarily driven by increased residential broadband customers and average rate. Total high-speed Internet customer net additions were 354K.

Business Services revenues were up 9.9% to $2.20 billion, driven by higher average rates.

Wireless revenues surged 70.4% to $556 million, driven by an increase in the number of customer lines and an increase in device sales. Comcast added 280K wireless lines in the reported quarter.

Advertising revenues increased 58.6% year over year to $679 million. Excluding political advertising revenues, advertising revenues increased 60.4%.

Video revenues increased 2.6% to $5.55 billion, reflecting an increase in average rates. Meanwhile, voice revenues were $870 million, down 0.8% year over year due to a decline in the number of residential voice customers.

Total video customer net losses were 399K while total voice customer net losses were 108K.

Other revenues increased 12.4% from the year-ago quarter to $425 million, reflecting increases in revenues from security and automation services and from licensing of technology platforms.

NBCUniversal Revenues Increase Y/Y

Revenues increased 39.2% year over year to $8 billion.

Media revenues increased 25.7% from the year-ago quarter to $5.1 billion, reflecting higher advertising revenues, distribution revenues and other revenues.

Studios revenues increased 8.4% from the year-ago quarter to $2.2 billion, primarily reflecting higher theatrical revenues.

Theme Parks revenues increased $958 million from the year-ago quarter to $1.1 billion, reflecting strength at Universal Orlando Resort.

Sky Revenues Details

Sky’s revenues increased 28% year over year to $5.2 billion. At constant currency (cc), revenues increased 14.9%.

Direct-to-consumer revenues were up 19.9% (up 7.7% at cc) from the year-ago quarter to $4.22 billion.

Content revenues increased 51.6% (up 36.1% at cc) to $355 million.

Advertising revenues climbed 99.8% (up 78.8% at cc) from the year-ago quarter to $643 million.

Total customer relationships decreased 248K to 23.2 million in the reported quarter.

Operating Details

Consolidated programming & production costs increased 35.8% from the year-ago quarter to $9.25 billion.

Consolidated adjusted EBITDA increased 12.6% from the year-ago quarter to $8.9 billion.

Segment-wise, Cable Communications’ adjusted EBITDA rose 14.5% from the year-ago quarter to $7.1 billion. Cable Communications results include adjusted EBITDA of $68 million from the wireless business against a loss of $37 million in the year-ago quarter.

NBCUniversal’s adjusted EBITDA increased 12.5% from the year-ago quarter to $1.55 billion, despite significant decline in Theme Parks (loss of $172 million) and Media (down 15.8%).

Sky’s adjusted EBITDA declined 25.3% year over year (down 32.4% at cc) to $560 million. Notably, Sky’s operating costs and expenses increased 40% (up 25.5% at cc) to $4.66 billion.

Consolidated operating income increased 18.5% year over year to $5.50 billion.

Cash Flow & Liquidity

As of Jun 30, 2021, cash and cash equivalents were $12.41 billion, down from $14.95 billion as of Mar 31, 2021.

Moreover, as of Jun 30, 2021, consolidated total debt was $98.5 billion, compared with $103.71 billion as of Mar 31, 2021.

In second-quarter 2021, Comcast generated $7.60 billion in cash from operations, down 12% year over year. Free cash flow was $4.79 billion in the reported quarter, down 19.7% year over year.

Zacks Rank & Stocks to Consider

Currently, Comcast carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector include Clarus Corporation CLAR, Caesars Entertainment, Inc. CZR and Electronic Arts Inc. EA. Clarus Corporation sports a Zacks Rank #1 (Strong Buy) while Caesars Entertainment and Electronic Arts each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Clarus Corporation, Caesars Entertainment and Electronic Arts are scheduled to report their quarterly earnings on Aug 2, 3 and 4, respectively.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Comcast Corporation (CMCSA) : Free Stock Analysis Report

Electronic Arts Inc. (EA) : Free Stock Analysis Report

Caesars Entertainment, Inc. (CZR) : Free Stock Analysis Report

Clarus Corporation (CLAR) : Free Stock Analysis Report

To read this article on Zacks.com click here.