10-QPeriod: Q1 FY2018

COMCAST CORP Quarterly Report for Q1 Ended Mar 31, 2018

Filed April 25, 2018For Securities:CMCSACCZ

Summary

Comcast Corporation reported strong revenue growth in the first quarter of 2018, with total revenue reaching $22.79 billion, a 10.7% increase year-over-year. This growth was driven primarily by its Cable Communications and NBCUniversal segments, with notable contributions from high-speed internet services and advertising within Cable Communications, and significant revenue boosts in Cable Networks and Broadcast Television from the Olympic broadcasts. Net income attributable to Comcast Corporation shareholders saw a substantial increase of 21.2% to $3.12 billion, resulting in diluted EPS of $0.66, up from $0.53 in the prior year. The company also continued its capital return program, repurchasing $1.5 billion in common stock and increasing its dividend. Looking ahead, Comcast announced a significant development with its pre-conditional offer for Sky plc, which could represent a major strategic move for the company.

Financial Highlights

51 data points
Beta

Revenue

$22.79B

Net Income

$3.12B

13.7% Net Margin

EPS (Diluted)

$0.66

Total Assets

$190.88B

Cash & Equivalents

$6.03B

Free Cash Flow

$3.50B

Financial Statements
Beta
Revenue$22.79B
Operating Expenses$18.15B
Operating Income$4.64B
Interest Expense$777.00M
Net Income$3.12B
EPS (Basic)$0.67
EPS (Diluted)$0.66
Shares Outstanding (Basic)4.63B
Shares Outstanding (Diluted)4.71B

Key Highlights

  • 1Total revenue increased by 10.7% to $22.79 billion, driven by strong performance across segments.
  • 2Net income attributable to Comcast Corporation shareholders rose by 21.2% to $3.12 billion.
  • 3Diluted earnings per share improved to $0.66 from $0.53 in the prior year.
  • 4Cable Communications segment revenue grew by 3.6% to $13.52 billion, with High-Speed Internet revenue up 8.2%.
  • 5NBCUniversal segment revenue increased significantly by 21.3% to $9.53 billion, boosted by Olympic broadcasts in Cable Networks and Broadcast Television.
  • 6Comcast announced a pre-conditional all-cash offer to acquire Sky plc for approximately $31 billion.
  • 7The company repurchased $1.5 billion of its common stock and increased its quarterly dividend by 21%.

Frequently Asked Questions

Comcast's revenue growth was primarily driven by its Cable Communications segment, particularly from its high-speed internet services and business services, and by its NBCUniversal segment. The NBCUniversal segment saw a significant boost from the broadcast of the 2018 PyeongChang Olympics and the 2018 Super Bowl, which positively impacted advertising and distribution revenues in its Cable Networks and Broadcast Television divisions.

Profitability improved significantly. Net income attributable to Comcast Corporation shareholders increased by 21.2% to $3.12 billion, and diluted earnings per share rose to $0.66 from $0.53 in the first quarter of 2017. Adjusted EBITDA also showed a healthy increase of 3.3% to $7.24 billion.

The announcement of a pre-conditional all-cash offer for Sky plc, valued at approximately $31 billion, represents a major strategic initiative for Comcast. This potential acquisition would significantly expand Comcast's international presence, particularly in Europe, and could reshape its competitive landscape in the media and entertainment industry. The transaction is subject to various conditions, including regulatory approvals.

Comcast is actively returning capital to shareholders through share repurchases and dividends. In the first quarter of 2018, the company repurchased approximately $1.5 billion of its common stock under its existing authorization and paid $738 million in dividends. The company also recently increased its quarterly dividend by 21%.