01—Abstract
Summary
Summary of the 10-Q filed October 24, 2019. Cited figures are marked; the original filing is the authoritative source.
Comcast Corporation reported strong financial results for the nine months ended September 30, 2019, with consolidated revenue reaching $80.54 billiona, 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 billionb 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 billionc 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 billiond 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.
02—Key points
Key Highlights
- Consolidated 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.
- Net 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.
- The 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.
- NBCUniversal's Theme Parks segment saw a 4.8% revenue increase to $4.37 billion, while other NBCUniversal segments experienced revenue declines.
- Sky's direct-to-consumer revenue, excluding currency impacts, grew 1.1% for the nine-month period, with content revenue showing strong growth.
- Operating cash flow remained strong, totaling $19.46 billion for the nine months ended September 30, 2019.
- The company made significant debt repayments of $10 billion during the first nine months of 2019, demonstrating a focus on deleveraging.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2019filed October 24, 2019Financial Statements
Q3 FY2019 against Q3 FY2018
| Line item | Q3 FY2019Q3 FY2018 | Change |
|---|---|---|
| Revenue | $26.83B$22.14B | +21.2% |
| Operating Expenses | $21.49B$17.30B | +24.2% |
| Operating Income | $5.34B$4.84B | +10.4% |
| Interest Expense | $1.17B$830.00M | +40.6% |
| Net Income | $3.22B$2.89B | +11.5% |
| EPS (Basic) | $0.71$0.63 | +12.7% |
| EPS (Diluted) | $0.70$0.62 | +12.9% |
| Shares Outstanding (Basic) | 4.55B4.56B | −0.3% |
| Shares Outstanding (Diluted) | 4.62B4.62B | 0.0% |
05—Questions
Frequently Asked Questions
How did the acquisition of Sky impact Comcast's financial performance?
The acquisition of Sky, completed in the fourth quarter of 2018, was a major driver of Comcast's consolidated revenue growth. For the nine months ended September 30, 2019, consolidated revenue increased significantly to $80.54 billion, up from $66.66 billion in the prior year period, with the Sky segment contributing substantially to this increase.
What is the performance of Comcast's core Cable Communications segment?
Comcast's Cable Communications segment showed solid growth, with revenue increasing by 4.0% to $43.31 billion and Adjusted EBITDA growing by 8.0% to $17.38 billion for the nine months ended September 30, 2019. High-speed internet revenue was a key driver, up 9.6% year-over-year, and the segment added net customer relationships.
How is NBCUniversal performing, and are there any specific segment highlights?
NBCUniversal's performance was mixed. The Theme Parks segment saw a revenue increase of 4.8% to $4.37 billion. However, Cable Networks, Broadcast Television, and Filmed Entertainment experienced revenue declines for the nine-month period. Adjusted EBITDA for the NBCUniversal segments combined increased by 4.2% to $6.75 billion.
What is the company's financial health in terms of cash flow and debt?
Comcast generated strong operating cash flow of $19.46 billion for the nine months ended September 30, 2019. The company also focused on debt management, making substantial repayments of $10 billion during the same period, partly funded by a $5.2 billion collateralized obligation, indicating a commitment to deleveraging following the Sky acquisition.
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