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Comcast's (CMCSA) Q1 Earnings Beat, Broadband User Base Rises

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·5 min read
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Comcast CMCSA reported first-quarter 2021 adjusted earnings of 76 cents per share, beating the Zacks Consensus Estimate by 28.8% and increasing 7% year over year.

Consolidated revenues inched up 2.2% year over year to $27.21 billion and beat the Zacks Consensus Estimate by 1.6%.

Cable Communication Revenue Details

Revenues increased 5.9% from the year-ago quarter to $15.81 billion. Total Customer Relationships increased 380K to 33.50 million.

Broadband revenues grew 12% year over year to $5.60 billion, primarily driven by increased residential broadband customers and average rate. Total high-speed Internet customer net additions were 461K.

Business Services revenues were up 6.1% to $2.17 billion, driven by customer-base expansion and higher average rates.

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

Wireless revenues jumped 49.7% to $513 million, supported by an increase in the number of customer lines. Comcast added 278K wireless lines in the reported quarter.

Advertising revenues increased 10.8% year over year to $618 million.

Voice revenues were $871 million, down 3.1% year over year due to a declining number of residential voice customers.

Video revenues slipped 0.2% to $5.62 billion, reflecting a decline in the residential video customer count.

Total video customer net losses were 491K while total voice customer net losses were 106K.

Other revenues decreased 6.7% from the year-ago quarter to $413 million, owing to lower security.

NBCUniversal Revenues Decrease Y/Y

Revenues declined 9.1% year over year to $7.02 billion.

Media revenues increased 3.2% from the year-ago quarter to $5.04 billion.

Markedly, Peacock has seen 42 million sign-ups to date across the United States, benefiting from the recent addition of exclusive domestic streaming rights to WWE Network and The Office.

Studios revenues decreased 0.6% from the year-ago quarter to $2.40 billion.

Theme Parks revenues were $619 million, down 33.1% year over year. Universal Orlando Resort and Universal Studios Japan operated with limited capacity, while Universal Studios Hollywood remains closed.

Sky Revenues Details

Sky’s revenues increased 10.6% year over year to $5 billion. At constant currency (cc), revenues increased 2%.

Direct-to-consumer revenues were up 10.5% (up1.8% at cc) from the year-ago quarter to $4.07 billion.

Content revenues increased 10.3% (up 1.7% at cc) to $358 million.

Advertising revenues climbed 11.9% (up 3.4% at cc) from the year-ago quarter to $572 million.

Total Customer Relationships increased 221K to 23.446 million in the reported quarter.

Operating Details

Consolidated adjusted EBITDA increased 3.5% from the year-ago quarter to $8.41 billion.

Segment-wise, Cable Communications’ adjusted EBITDA rose 12.4% from the year-ago quarter to $6.83 billion. Cable Communications results include adjusted EBITDA of $6 million from the wireless business compared with a loss of $59 million in the year-ago quarter.

NBCUniversal’s adjusted EBITDA decreased 11.8% from the year-ago quarter to $1.49 billion, reflecting a significant decline in Theme Parks (loss of $61 million) and Media (down 3.7%), partially offset by growth in Studios (up 65.7%).

Sky’s adjusted EBITDA declined 33.9% year over year (down 39.6% at cc) to $364 million. Notably, Sky’s operating costs and expenses increased 16.8% (up 7.8% at cc) to $4.63 billion.

Consolidated operating income increased 22% year over year to $5.04 billion.

Cash Flow & Liquidity

As of Mar 31, 2021, cash and cash equivalents were $14.95 billion, up from $11.74 billion as of Dec 31, 2020.

Moreover, as of Mar 31, 2021, consolidated total debt was $103.71 billion, compared with $103.76 billion as of Dec 31, 2020.

In first-quarter 2021, Comcast generated $7.75 billion in cash from operations, up 33.1% year over year. Free cash flow was $5.28 billion in the reported quarter, up 58.8% year over year.

Zacks Rank & Stocks to Consider

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

Better-ranked stocks in the broader technology sector are Fox FOXA, Gaia GAIA and The E.W. Scripps Company SSP. Both Fox and The E.W. Scripps sport a Zacks Rank #1 (Strong Buy). Gaia carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Gaia, Fox, and The E.W. Scripps are scheduled to report their quarterly earnings on May 3, 5 and 7, respectively.

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Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

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