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10-QPeriod: Q3 FY2019

COMCAST CORP Quarterly Report for Q3 Ended Sep 30, 2019

Filed October 24, 2019For Securities:CMCSACCZ

Summary

Comcast Corporation reported strong financial results for the nine months ended September 30, 2019, with consolidated revenue reaching $80.54 billion, a significant increase from $66.66 billion in the prior year period. This growth was primarily driven by the acquisition of Sky. Net income attributable to Comcast Corporation also rose to $9.89 billion from $9.22 billion, leading to an increase in diluted EPS to $2.15 from $1.98. The Cable Communications segment demonstrated robust performance, with revenue growing 4.0% to $43.31 billion and Adjusted EBITDA increasing 8.0% to $17.38 billion. High-speed internet revenue was a key driver, up 9.6% year-over-year, and the company continued to expand its customer relationships across its services. NBCUniversal's performance showed mixed results, with Theme Parks seeing a 4.8% revenue increase, while Cable Networks, Broadcast Television, and Filmed Entertainment experienced revenue declines. Financially, Comcast maintained a strong operational cash flow of $19.46 billion for the nine-month period, though investing activities showed a significant outflow of $10.91 billion, largely due to capital expenditures and acquisitions. The company also managed its debt effectively, with significant repayments totaling $10 billion in the nine-month period, partially funded by a $5.2 billion collateralized obligation. The overall financial health appears sound, supported by diversified revenue streams and strategic acquisitions.

Financial Statements
Beta
Revenue$26.83B
Operating Expenses$21.49B
Operating Income$5.34B
Interest Expense$1.17B
Net Income$3.22B
EPS (Basic)$0.71
EPS (Diluted)$0.70
Shares Outstanding (Basic)4.55B
Shares Outstanding (Diluted)4.62B

Key Highlights

  • 1Consolidated revenue increased by 20.8% year-over-year to $80.54 billion for the first nine months of 2019, largely attributable to the Sky acquisition.
  • 2Net income attributable to Comcast Corporation grew by 7.3% to $9.89 billion for the first nine months of 2019, with diluted EPS rising to $2.15.
  • 3The Cable Communications segment reported a 4.0% revenue increase to $43.31 billion and an 8.0% rise in Adjusted EBITDA to $17.38 billion, driven by strong high-speed internet growth.
  • 4NBCUniversal's Theme Parks segment saw a 4.8% revenue increase to $4.37 billion, while other NBCUniversal segments experienced revenue declines.
  • 5Sky's direct-to-consumer revenue, excluding currency impacts, grew 1.1% for the nine-month period, with content revenue showing strong growth.
  • 6Operating cash flow remained strong, totaling $19.46 billion for the nine months ended September 30, 2019.
  • 7The company made significant debt repayments of $10 billion during the first nine months of 2019, demonstrating a focus on deleveraging.

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