10-KPeriod: FY2019

COMCAST CORP Annual Report, Year Ended Dec 31, 2019

Filed January 30, 2020For Securities:CMCSACCZ

Summary

Comcast Corporation's 2019 10-K filing details a company with three primary segments: Comcast Cable, NBCUniversal, and Sky. The company demonstrated revenue growth primarily driven by the inclusion of a full year of Sky's results, along with continued expansion in its Cable Communications segment, particularly in high-speed internet and business services. Despite a slight revenue dip in NBCUniversal due to the absence of major sporting event comparisons, its Adjusted EBITDA saw an increase, showcasing operational resilience. While facing intensifying competition in all segments, especially from Over-The-Top (OTT) service providers impacting the video business, Comcast is actively investing in new attractions and streaming services like Peacock. The company also focused on debt reduction and maintaining a strong financial position throughout the year. Investors should note the significant scale of operations across these diverse segments and the ongoing strategic investments aimed at adapting to evolving consumer behaviors and market dynamics.

Financial Highlights

51 data points
Beta

Revenue

$108.94B

Net Income

$13.06B

12.0% Net Margin

EPS (Diluted)

$2.83

Total Assets

$263.41B

Cash & Equivalents

$5.50B

Free Cash Flow

$15.74B

Financial Statements
Beta
Revenue$108.94B
Operating Expenses$87.82B
Operating Income$21.13B
Interest Expense$4.57B
Net Income$13.06B
EPS (Basic)$2.87
EPS (Diluted)$2.83
Shares Outstanding (Basic)4.55B
Shares Outstanding (Diluted)4.61B

Key Highlights

  • 1Comcast's consolidated revenue increased by 15.3% to $108.94 billion, largely due to the full-year inclusion of Sky's results following its acquisition in late 2018.
  • 2The Cable Communications segment saw revenue grow by 3.7% to $58.1 billion, driven by strong performance in high-speed internet and business services, despite declines in video and voice revenue.
  • 3NBCUniversal revenue decreased by 5.0% to $34.0 billion, primarily due to the year-over-year comparison against major 2018 sporting events (Olympics, Super Bowl), but Adjusted EBITDA for NBCUniversal increased by 2.0% to $8.8 billion.
  • 4Sky's pro forma revenue decreased by 3.0% (1.7% in constant currency) to $19.2 billion, while its pro forma Adjusted EBITDA increased by 7.1% (12.2% in constant currency) to $3.1 billion, indicating underlying operational improvements.
  • 5Capital expenditures decreased by 10.5% to $6.9 billion for the Cable Communications segment, reflecting a strategic shift in spending, while overall capital expenditures for Comcast were $9.95 billion.
  • 6The company repaid $15.6 billion of debt during the year, strengthening its financial position. A dividend increase of 10% was announced for the upcoming year.
  • 7Comcast announced the upcoming launch of Peacock, its direct-to-consumer streaming service, signaling a significant strategic investment in the evolving media landscape.

Frequently Asked Questions

Comcast's revenue growth in 2019 was primarily driven by the full-year inclusion of Sky's results following its acquisition in late 2018. Additionally, the Cable Communications segment experienced growth, led by increases in high-speed internet and business services revenue.

While NBCUniversal's total revenue decreased by 5.0% due to comparisons with the 2018 Olympics and Super Bowl broadcasts, its Adjusted EBITDA increased by 2.0%. This suggests that despite lower top-line comparisons, the underlying operational performance and profitability of the segment remained strong.

Comcast is adapting to competition from OTT providers by enhancing its own platforms, such as the X1 and Sky Q platforms, which can integrate linear and OTT content. The company is also investing in its new direct-to-consumer streaming service, Peacock, to offer its content directly to consumers and capture a share of the growing streaming market.

Comcast demonstrated a focus on financial health by repaying $15.6 billion in debt during 2019. The company also maintained strong liquidity with significant availability under its credit facilities and a favorable leverage ratio, indicating a solid financial position.