01—Abstract
Summary
Summary of the 10-Q filed April 29, 2021. Cited figures are marked; the original filing is the authoritative source.
Comcast Corporation reported a strong first quarter for 2021, with consolidated revenue increasing by 2.2% to $27.2 billiona, driven by robust performance in Cable Communications and Sky, despite ongoing impacts from the COVID-19 pandemic on its NBCUniversal segment, particularly Theme Parks.
Net income attributable to Comcast Corporation surged by 55.1% to $3.33 billionb, or $0.71 per diluted share, reflecting improved operating income and a significant swing from investment losses in the prior year to gains in the current quarter. Adjusted EBITDA also saw a healthy increase of 3.5% to $8.41 billion, demonstrating the company's operational resilience and ability to manage costs effectively across its diverse business segments.
02—Key points
Key Highlights
- Consolidated revenue grew 2.2% year-over-year to $27.2 billion, primarily driven by increases in Cable Communications (up 5.9%) and Sky (up 10.6% on a constant currency basis).
- Net income attributable to Comcast Corporation increased substantially by 55.1% to $3.33 billion, leading to a significant jump in diluted EPS to $0.71 from $0.46 in the prior year period.
- Adjusted EBITDA, a key performance metric, rose 3.5% to $8.41 billion, indicating improved operational profitability.
- Cable Communications segment demonstrated strong performance with a 5.9% revenue increase to $15.8 billion and a 12.4% rise in Adjusted EBITDA to $6.83 billion, led by significant growth in broadband and wireless services.
- NBCUniversal segment revenue declined 9.1% to $7.02 billion, largely due to a 33.1% drop in Theme Parks revenue caused by COVID-19 related restrictions, although Studios and Media showed modest growth.
- Sky segment revenue increased by 10.6% to $4.99 billion (2.0% on a constant currency basis), with strong direct-to-consumer and content revenue growth.
- The company generated strong operating cash flow of $7.75 billion, a significant increase from $5.82 billion in the prior year, supporting investments and shareholder returns.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2021filed April 29, 2021Financial Statements
Q1 FY2021 against Q1 FY2020
| Line item | Q1 FY2021Q1 FY2020 | Change |
|---|---|---|
| Revenue | $27.20B$26.61B | +2.2% |
| Operating Expenses | $22.17B$21.76B | +1.9% |
| Operating Income | $5.04B$4.85B | +3.9% |
| Interest Expense | $1.02B$1.21B | −16.0% |
| Net Income | $3.33B$2.15B | +55.1% |
| EPS (Basic) | $0.73$0.47 | +55.3% |
| EPS (Diluted) | $0.71$0.46 | +54.3% |
| Shares Outstanding (Basic) | 4.59B4.56B | +0.6% |
| Shares Outstanding (Diluted) | 4.67B4.62B | +1.0% |
05—Questions
Frequently Asked Questions
What was the primary driver of Comcast's revenue growth in Q1 2021?
The primary driver of Comcast's consolidated revenue growth in the first quarter of 2021 was the strong performance of its Cable Communications segment, which saw a 5.9% increase in revenue, largely due to growth in broadband and wireless services. The Sky segment also contributed positively with a 10.6% revenue increase (2.0% on a constant currency basis).
How did the COVID-19 pandemic impact Comcast's different business segments?
The COVID-19 pandemic had a mixed impact. Cable Communications and Media segments showed resilience and growth, while the Theme Parks segment of NBCUniversal was significantly impacted by closures and capacity restrictions, leading to a 33.1% revenue decline. Sky also experienced some negative impacts, particularly in direct-to-consumer revenue due to lower sports subscription revenue, although it managed overall revenue growth.
What is the outlook for the Theme Parks and Studios segments given the ongoing pandemic?
Comcast anticipates continued negative impacts on its Theme Parks segment in the near to medium term due to ongoing pandemic restrictions. For the Studios segment, while production has resumed, the delay in theatrical releases due to cinema closures is expected to negatively impact results in the near to medium term. However, content licensing revenue has shown strength.
What is Comcast's financial health and cash flow generation like?
Comcast demonstrated strong financial health in Q1 2021. Net income attributable to Comcast Corporation grew significantly by 55.1%, and the company generated robust operating cash flow of $7.75 billion, a substantial increase from the prior year. This strong cash flow generation supports the company's ability to manage its debt, invest in its businesses, and return capital to shareholders through dividends.
06—Continue