Comcast Reports 3rd Quarter 2022 Results

PHILADELPHIA, October 27, 2022--(BUSINESS WIRE)--Comcast Corporation (NASDAQ: CMCSA) today reported results for the quarter ended September 30, 2022.

"I’m proud of the company and our strong financial results this quarter. We delivered solid growth in adjusted EBITDA and adjusted EPS, generated significant free cash flow, invested in our businesses’ future and returned a record amount of capital to our shareholders. This performance is a testament to our consistent strategic focus on innovation and our team’s ability to execute at the highest level in any environment. In Cable, we grew adjusted EBITDA by more than 5% and achieved our highest adjusted EBITDA margin on record despite a challenging competitive environment. At NBCUniversal, robust demand from guests at our Theme Parks and from viewers of our iconic content fueled nearly 25% growth in adjusted EBITDA. And, at Sky, our team continues to prudently manage through a difficult and rapidly changing macroeconomic and geopolitical period in the U.K. and Europe. Together, our company is a leader in very large and profitable markets. Despite the challenges that may lie ahead, we are in an enviable strategic and financial position, and our future remains bright," commented Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation.

	($ in millions, except per share data)
		3rd Quarter											Year to Date
	Consolidated Results	2022				2021			Change				2022			2021			Change
	Revenue	$29,849				$30,298			(1.5	%)			$90,874			$86,049			5.6	%
	Net Income (loss) Attributable to Comcast	($4,598	)			$4,035			NM				$2,347			$11,102			(78.9	%)
	Adjusted Net Income1	$4,220				$4,038			4.5	%			$12,626			$11,511			9.7	%
	Adjusted EBITDA2	$9,482				$8,957			5.9	%			$28,459			$26,297			8.2	%
	Earnings (loss) per Share3	($1.05	)			$0.86			NM				$0.52			$2.38			(78.2	%)
	Adjusted Earnings per Share1	$0.96				$0.87			10.3	%			$2.82			$2.47			14.2	%
	Net Cash Provided by Operating Activities	$6,947				$6,100			13.9	%			$20,530			$21,457			(4.3	%)
	Free Cash Flow4	$3,387				$3,234			4.7	%			$11,316			$13,305			(14.9	%)
	NM=comparison not meaningful.

For additional detail on segment revenue and expenses, customer metrics, capital expenditures, and free cash flow, please refer to the trending schedule on Comcast’s Investor Relations website at www.cmcsa.com.

3rd Quarter 2022 Highlights:

• Consolidated Adjusted EBITDA Increased 5.9% to $9.5 Billion; Generated Free Cash Flow of $3.4 Billion

• Returned $4.7 Billion to Shareholders Through a Combination of $1.2 Billion in Dividend Payments and $3.5 Billion in Share Repurchases

• Cable Communications Adjusted EBITDA Increased 5.4% and Adjusted EBITDA per Customer Relationship Increased 4.0%; Adjusted EBITDA Margin Increased 120 Basis Points to 45.1%, Its Highest on Record

• Cable Communications Total Customer Relationships of 34.4 Million and Total Broadband Customers of 32.2 Million Were Consistent with the Prior Quarter and Increased 0.9% and 1.5%, Respectively, Compared to the Prior Year Period

• Cable Communications Wireless Customer Line Net Additions Were 333,000, the Best Quarterly Result on Record

• Cable Communications Started Rolling Out Multi-Gig Broadband Speeds in Markets Across the U.S. and Announced the Launch of Even Faster, Multi-Gig Symmetrical Speeds Beginning in 2023

• NBCUniversal Adjusted EBITDA Increased 24.6% to $1.7 Billion, Including Peacock Losses

• Peacock Paid Subscribers in the U.S. Surpassed 15 Million; Increased Nearly 70% Year to Date

• Studios Adjusted EBITDA Increased $358 Million to $537 Million, Driven by the Successful Theatrical Performance of Jurassic World: Dominion and Minions: The Rise of Gru

• Theme Parks Adjusted EBITDA Increased 88.6% to $819 Million, Its Highest Adjusted EBITDA on Record, Reflecting Growth at Each Park Compared to the Prior Year Period

• Sky Revenue Decreased 14.7% to $4.3 Billion; On a Constant Currency Basis, Revenue Was Consistent with the Prior Year Period. Adjusted EBITDA in the Third Quarter Reflected the Timing of Sporting Events and the Corresponding Programming Amortization

• SkyShowtime, the Previously Announced Joint Venture with Paramount Global, Launched in September, Bringing its Premium Offering of Exclusive and Iconic Entertainment to Millions of Homes in Europe Outside of Sky's Territories

Consolidated Financial Results

Revenue for the third quarter of 2022 decreased 1.5% to $29.8 billion. Net Income (loss) Attributable to Comcast was $(4.6) billion, compared to $4.0 billion in the prior year period. Adjusted Net Income increased 4.5% to $4.2 billion. Adjusted EBITDA increased 5.9% to $9.5 billion.

In the third quarter of 2022 we recorded noncash impairment charges related to goodwill and intangible assets in our Sky segment totaling $8.6 billion. The impairments primarily reflected an increased discount rate and reduced estimated future cash flows as a result of macroeconomic conditions in Sky's territories, are recorded in "Goodwill and long-lived asset impairments" in the Condensed Consolidated Statement of Income and are excluded from Adjusted Net Income and Adjusted Earnings per Share.

For the nine months ended September 30, 2022, revenue increased 5.6% to $90.9 billion. Net income attributable to Comcast decreased 78.9% to $2.3 billion. Adjusted Net Income increased 9.7% to $12.6 billion. Adjusted EBITDA increased 8.2% to $28.5 billion.

Earnings (loss) per Share (EPS) for the third quarter of 2022 was ($1.05), compared to $0.86 in the prior year period. Adjusted EPS increased 10.3% to $0.96.

For the nine months ended September 30, 2022, EPS decreased 78.2% to $0.52. Adjusted EPS increased 14.2% to $2.82.

Capital Expenditures increased 30.3% to $2.8 billion in the third quarter of 2022. Cable Communications’ capital expenditures increased 20.8% to $2.0 billion. NBCUniversal’s capital expenditures increased $385 million to $614 million. Sky's capital expenditures decreased 39.8% to $96 million.

For the nine months ended September 30, 2022, capital expenditures increased 14.9% to $7.1 billion. Cable Communications' capital expenditures increased 9.0% to $5.2 billion. NBCUniversal's capital expenditures increased $799 million to $1.4 billion. Sky's capital expenditures decreased 39.3% to $373 million.

Net Cash Provided by Operating Activities was $6.9 billion in the third quarter of 2022. Free Cash Flow was $3.4 billion.

For the nine months ended September 30, 2022, net cash provided by operating activities was $20.5 billion. Free cash flow was $11.3 billion.

Dividends and Share Repurchases. In September 2022, Comcast announced that its Board of Directors increased its share repurchase program authorization to a total of $20.0 billion, effective as of September 13, 2022, and that the authorization does not have an expiration date. As of September 30, 2022, Comcast had $19.5 billion available under its share repurchase authorization.

During the third quarter of 2022, Comcast paid dividends totaling $1.2 billion and repurchased 92.3 million of its common shares for $3.5 billion, resulting in a total return of capital to shareholders of $4.7 billion, compared to $2.7 billion in the prior year period.

For the nine months ended September 30, 2022, Comcast paid dividends totaling $3.6 billion and repurchased 225.7 million of its common shares for $9.5 billion, resulting in a total return of capital to shareholders of $13.1 billion, compared to $5.4 billion in 2021.

Cable Communications

	($ in millions)
		3rd Quarter									Year to Date
		2022			2021		Change				2022			2021		Change
	Cable Communications Revenue
	Broadband	$6,135			$5,801		5.7	%			$18,292			$17,118		6.9	%
	Video	5,255			5,499		(4.4	%)			16,214			16,676		(2.8	%)
	Voice	745			851		(12.5	%)			2,293			2,592		(11.5	%)
	Wireless	789			603		30.8	%			2,188			1,672		30.9	%
	Business Services	2,436			2,227		9.4	%			7,256			6,597		10.0	%
	Advertising	756			705		7.2	%			2,174			2,002		8.6	%
	Other	423			427		(0.9	%)			1,263			1,265		(0.2	%)
	Cable Communications Revenue	$16,539			$16,115		2.6	%			$49,680			$47,922		3.7	%
	Cable Communications Adjusted EBITDA	$7,452			$7,069		5.4	%			$22,172			$20,972		5.7	%
	Adjusted EBITDA Margin	45.1%			43.9%						44.6%			43.8%
	Cable Communications Capital Expenditures	$2,021			$1,673		20.8	%			$5,164			$4,739		9.0	%
	Percent of Cable Communications Revenue	12.2%			10.4%						10.4%			9.9%

Revenue for Cable Communications increased 2.6% to $16.5 billion in the third quarter of 2022, driven by increases in broadband, business services, wireless and advertising revenue, partially offset by decreases in video and voice revenue. Broadband revenue increased 5.7% due to an increase in average rates and an increase in the number of residential broadband customers compared to the prior year period. Business services revenue increased 9.4% due to an increase in average rates, an increase in the number of customers receiving our services and from a recent acquisition. Wireless revenue increased 30.8% due to an increase in the number of customer lines and an increase in device sales. Advertising revenue increased 7.2%, primarily driven by an increase in political advertising. Excluding political revenue, advertising revenue decreased by 5.8%, reflecting the previously announced transition of our Xumo streaming service from Cable Communications to a joint venture reported in Corporate and Other and lower local and national advertising revenue, partially offset by higher revenue from our advanced advertising businesses. Video revenue decreased 4.4%, reflecting a decrease in the number of residential video customers, partially offset by an increase in average rates. Voice revenue decreased 12.5%, primarily reflecting a decrease in the number of residential voice customers. Other revenue was consistent with the prior year period.

For the nine months ended September 30, 2022, Cable revenue increased 3.7% to $49.7 billion, driven by growth in broadband, business services, wireless and advertising revenue, partially offset by a decrease in video and voice revenue. Other revenue was consistent with 2021.

Total Customer Relationships decreased by 21,000 to 34.4 million in the third quarter of 2022. Residential customer relationships decreased by 26,000 and business customer relationships increased by 5,000. Total broadband customer net additions were 14,000, total video customer net losses were 561,000 and total voice customer net losses were 316,000. In addition, Cable Communications added 333,000 wireless lines in the quarter.

For the nine months ended September 30, 2022, total customer relationships increased by 145,000. Residential customer relationships increased by 121,000 and business customer relationships increased by 25,000. Total broadband customer net additions were 277,000, total video customer net losses were 1.6 million and total voice customer net losses were 884,000. In addition, Cable Communications added 968,000 wireless lines in the current period.

	(in thousands)
					Net Additions / (Losses)
					3rd Quarter						Year to Date
		3Q22	3Q21		2022		2021				2022		2021
	Customer Relationships
	Residential Customer Relationships	31,849	31,576		(26	)	237				121		884
	Business Services Customer Relationships	2,514	2,473		5		18				25		46
	Total Customer Relationships	34,363	34,048		(21	)	255				145		930
	Residential Customer Relationships Mix
	One Product Residential Customers	15,463	13,959		340		481				1,133		1,551
	Two Product Residential Customers	8,204	8,473		(77	)	(89	)			(202	)	(261	)
	Three or More Product Residential Customers	8,182	9,144		(289	)	(156	)			(810	)	(406	)
	Residential Broadband Customers	29,835	29,389		10		281				253		1,063
	Business Services Broadband Customers	2,342	2,300		5		19				24		52
	Total Broadband Customers	32,177	31,688		14		300				277		1,115
	Residential Video Customers	15,973	17,844		(540	)	(382	)			(1,522	)	(1,149	)
	Business Services Video Customers	609	705		(21	)	(26	)			(72	)	(147	)
	Total Video Customers	16,582	18,549		(561	)	(408	)			(1,594	)	(1,297	)
	Residential Voice Customers	8,190	9,245		(307	)	(167	)			(872	)	(400	)
	Business Services Voice Customers	1,380	1,384		(9	)	9				(11	)	28
	Total Voice Customers	9,570	10,630		(316	)	(158	)			(884	)	(372	)