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

Comcast CMCSA reported second-quarter 2022 adjusted earnings of $1.01 per share, beating the Zacks Consensus Estimate by 10.99% and increasing 20.2% year over year.

Consolidated revenues increased 5.1% year over year to $30 billion and beat the Zacks Consensus Estimate by 0.88%.

Comcast shares were down 6.3% in pre-market trading.

CMCSA shares have outperformed the Zacks Consumer Discretionary sector year to date. While Comcast shares have lost 13.9%, Consumer Discretionary sector declined 30.7%.

Cable Communication Revenues Up Y/Y

Revenues increased 3.7% from the year-ago quarter to $16.60 billion, driven by increases in broadband, wireless, business services and advertising revenues. Total Customer Relationships decreased 28K to 34.4 million.

Broadband revenues grew 6.8% year over year to $6.11 billion, primarily driven by increased residential broadband customers and average rate. Total broadband customer net additions were flat year-over-year at 32.2 million.

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

Business Services revenues were up 10.1% to $2.42 billion, driven by higher average rates and an increasing number of customers.

Wireless revenues surged 30% to $722 million, driven by an increase in the number of customer lines. Comcast added 317K wireless lines in the reported quarter.

Other revenues decreased 2.3% from the year-ago quarter to $415 million.

Advertising revenues increased 10.2% year over year to $748 million, primarily driven by increases in political advertising and advertising at Comcast’s Xumo streaming service, as well as at advanced advertising businesses. Excluding political advertising revenues, advertising revenues increased 1.2%.

Video revenues decreased 2.4% to $5.42 billion, reflecting a decrease in the number of residential video customers, partially offset by an increase in average rates.

Meanwhile, voice revenues were $763 million, down 12.3% year over year due to a decline in residential voice customers.

Total video customer net losses were 521K, while total voice customer net losses were 286K.

NBCUniversal Revenues Increase Y/Y

Revenues soared 18.7% year over year to $9.45 billion.

Media revenues increased 3.6% from the year-ago quarter to $5.33 billion, reflecting higher distribution revenues.

Distribution revenues increased 8.4%, driven by contractual rate increases in the current period and revenues increases at Peacock. Advertising revenues decreased 1.3%.


Studios revenues increased 33.3% from the year-ago quarter to $2.97 billion, primarily reflecting content licensing revenues (up 19% year over year) and theatrical revenues (up $352 million year over year).

Theme Parks revenues surged 64.8% year over year to $1.8 billion, reflecting higher attendance and increases in guest spending at Comcast’s parks in the U.S. and Japan.

Sky Revenues Details

Sky’s revenues decreased 3.5% year over year to $4.50 billion. At constant currency (cc), revenues decreased 12.5%.

Direct-to-consumer revenues were down 12.8% (down 2.4% at cc) from the year-ago quarter to $3.68 billion.

Content revenues decreased 25.3% (down 16.4% at cc) to $265 million.

Advertising revenues declined 13.5% (down 3.1% at cc) from the year-ago quarter to $556 million.

Total customer relationships decreased 255K to 22.7 million in the reported quarter.

Operating Details

Costs and expenses in second-quarter 2022 increased 2.6% year over year to $23.65 billion.

Programming & production costs decreased 4% from the year-ago quarter to $8.89 billion.

Advertising, marketing and promotional expenses increased 18.6% year over year to $2.20 billion.

Adjusted EBITDA increased 10.1% from the year-ago quarter to $9.83 billion.

Segment-wise, Cable Communications’ adjusted EBITDA rose 5.3% from the year-ago quarter to $7.45 billion.

NBCUniversal’s adjusted EBITDA increased 19.5% from the year-ago quarter to $1.86 billion.

Sky’s adjusted EBITDA jumped 54.1% year over year (up 70.7% at cc) to $863 million. Sky’s operating costs and expenses decreased 21.9% (down 12.5% at cc) to $3.64 billion.

Cash Flow & Liquidity

As of Jun 30, 2022, cash and cash equivalents were $6.82 billion, up from $8.88 billion as of Mar 31, 2022.

Moreover, as of Jun 30, 2022, consolidated total debt was $99.54 billion compared with $94.56 billion as of Mar 31, 2022.

In second-quarter 2022, Comcast generated $6.3 billion in cash from operations, down from $7.26 billion reported in the previous quarter. Free cash flow was $3.2 billion in the reported quarter, down from $4.76 billion in the previous quarter.

Zacks Rank & Stocks to Consider

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

Take-Two Interactive TTWO, DraftKings DKNG and Universal Technical Institute UTI are some better-ranked stocks that investors can consider in the broader sector. All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Take-Two Interactive is set to announce first-quarter fiscal 2022 results on Aug 8. TTWO shares have been down 26.3% year to date.

DraftKings is set to announce second-quarter 2022 results on Aug 5. DKNG shares have been down 51.5% year to date.

Universal is set to announce third-quarter fiscal 2022 results on Aug 3. UTI shares have been up 0.3% year to date.

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Comcast Corporation (CMCSA) : Free Stock Analysis Report

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DraftKings Inc. (DKNG) : Free Stock Analysis Report

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