01—Abstract
Summary
Summary of the 10-Q filed April 25, 2018. Cited figures are marked; the original filing is the authoritative source.
Comcast Corporation reported strong revenue growth in the first quarter of 2018, with total revenue reaching $22.79 billiona, 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 billionb, 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 billionc 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.
02—Key points
Key Highlights
- Total revenue increased by 10.7% to $22.79 billion, driven by strong performance across segments.
- Net income attributable to Comcast Corporation shareholders rose by 21.2% to $3.12 billion.
- Diluted earnings per share improved to $0.66 from $0.53 in the prior year.
- Cable Communications segment revenue grew by 3.6% to $13.52 billion, with High-Speed Internet revenue up 8.2%.
- NBCUniversal segment revenue increased significantly by 21.3% to $9.53 billion, boosted by Olympic broadcasts in Cable Networks and Broadcast Television.
- Comcast announced a pre-conditional all-cash offer to acquire Sky plc for approximately $31 billion.
- The company repurchased $1.5 billion of its common stock and increased its quarterly dividend by 21%.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2018filed April 25, 2018Financial Statements
Q1 FY2018 against Q1 FY2017
| Line item | Q1 FY2018Q1 FY2017 | Change |
|---|---|---|
| Revenue | $22.79B$20.59B | +10.7% |
| Operating Expenses | $18.15B$16.05B | +13.1% |
| Operating Income | $4.64B$4.54B | +2.3% |
| Interest Expense | $777.00M$755.00M | +2.9% |
| Net Income | $3.12B$2.57B | +21.2% |
| EPS (Basic) | $0.67$0.54 | +24.1% |
| EPS (Diluted) | $0.66$0.53 | +24.5% |
| Shares Outstanding (Basic) | 4.63B4.75B | −2.4% |
| Shares Outstanding (Diluted) | 4.71B4.83B | −2.6% |
05—Questions
Frequently Asked Questions
What were the main drivers of Comcast's revenue growth in Q1 2018?
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.
How did the company's profitability change compared to the previous year?
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.
What is the significance of the announced offer for Sky plc?
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.
How is Comcast returning capital to shareholders?
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%.
06—Continue