Early Access

10-QPeriod: Q2 FY2019

COMCAST CORP Quarterly Report for Q2 Ended Jun 30, 2019

Filed July 25, 2019For Securities:CMCSACCZ

Summary

Comcast Corporation's second-quarter 2019 earnings report shows a robust increase in consolidated revenue, driven by strong performance in its Cable Communications and Sky segments. While net income attributable to Comcast Corporation saw a slight decrease year-over-year for the quarter, it remained strong at $3.125 billion. The company's strategic acquisition of Sky continues to be a significant factor in its financial results, contributing to substantial revenue growth and increased operating costs and expenses. The Cable Communications segment demonstrated solid revenue growth, particularly in high-speed internet and business services, though video revenue showed a slight decline, aligning with industry trends. NBCUniversal's performance was mixed, with growth in Theme Parks and Cable Networks offset by declines in Broadcast Television and Filmed Entertainment. Sky's integration is ongoing, and while its direct-to-consumer revenue saw a slight dip year-over-year, adjusted EBITDA showed growth when excluding foreign currency impacts, indicating progress in its operational performance. The company's financial position remains strong, with significant cash flows from operations supporting debt repayment, capital expenditures, and shareholder returns.

Financial Statements
Beta
Revenue$26.86B
Operating Expenses$21.50B
Operating Income$5.36B
Interest Expense$1.14B
Net Income$3.13B
EPS (Basic)$0.69
EPS (Diluted)$0.68
Shares Outstanding (Basic)4.55B
Shares Outstanding (Diluted)4.61B

Key Highlights

  • 1Consolidated revenue increased by 23.6% year-over-year for the three months ended June 30, 2019, reaching $26.86 billion.
  • 2Net income attributable to Comcast Corporation was $3.125 billion for the quarter, a slight decrease from $3.216 billion in the prior year period.
  • 3Cable Communications segment revenue grew by 3.9% to $14.45 billion, driven by strong performance in high-speed internet and business services.
  • 4NBCUniversal's total revenue decreased by 0.8% to $8.21 billion, with Theme Parks revenue increasing by 7.5% but Filmed Entertainment revenue declining by 14.8%.
  • 5Sky segment revenue was $4.83 billion, a decrease of 3.3% (or an increase of 2.4% on a constant currency basis), with Direct-to-consumer revenue down 4.0% but content revenue up 21.0%.
  • 6Adjusted EBITDA for the consolidated company increased by 17.5% to $8.716 billion.
  • 7The company reported paying $1.823 billion in dividends during the six months ended June 30, 2019, and has paused its share repurchase program in 2019 to accelerate debt reduction.

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