10-QPeriod: Q3 FY2021

COMCAST CORP Quarterly Report for Q3 Ended Sep 30, 2021

Filed October 28, 2021For Securities:CMCSACCZ

Summary

Comcast Corporation's third quarter 2021 earnings report shows a robust top-line performance, with consolidated revenue increasing by 18.7% year-over-year to $30.3 billion, driven by strong growth across its Cable Communications, Media, and Sky segments. Net income attributable to Comcast Corporation more than doubled, reaching $4.04 billion, up from $2.02 billion in the prior year period. This significant improvement was bolstered by a substantial increase in operating income and a favorable swing in investment and other income, alongside lower interest expenses. Diluted EPS also saw a substantial rise, reaching $0.86 from $0.44 in the prior year. The company's Cable Communications segment continued its solid performance, with revenue up 7.4% driven by broadband and wireless services. The NBCUniversal segment experienced exceptional growth, largely due to the recovery and reopening of its Theme Parks and strong advertising and distribution revenues in its Media segment, aided by the broadcast of the Tokyo Olympics. Sky also demonstrated resilience, with revenue up 4.1% (11.4% in constant currency) year-over-year, despite some headwinds in its content business. Overall, the results indicate a strong recovery from pandemic-related impacts and robust execution across Comcast's diverse business portfolio.

Financial Highlights

51 data points
Beta

Revenue

$30.30B

Net Income

$4.04B

13.3% Net Margin

EPS (Diluted)

$0.86

Total Assets

$277.06B

Cash & Equivalents

$11.86B

Free Cash Flow

$3.96B

Financial Statements
Beta
Revenue$30.30B
Operating Expenses$24.85B
Operating Income$5.45B
Interest Expense$1.05B
Net Income$4.04B
EPS (Basic)$0.88
EPS (Diluted)$0.86
Shares Outstanding (Basic)4.59B
Shares Outstanding (Diluted)4.67B

Key Highlights

  • 1Consolidated revenue increased by 18.7% to $30.3 billion for the three months ended September 30, 2021, compared to the prior year period.
  • 2Net income attributable to Comcast Corporation more than doubled to $4.04 billion, up from $2.02 billion in the prior year.
  • 3Diluted earnings per common share increased to $0.86 from $0.44 in the prior year.
  • 4Cable Communications segment revenue grew 7.4% to $16.1 billion, driven by broadband and wireless services.
  • 5NBCUniversal segment revenue surged 57.9% to $10.0 billion, significantly boosted by Theme Park recovery and Media segment performance (including the Tokyo Olympics broadcast).
  • 6Sky segment revenue increased by 4.1% to $5.0 billion (up 11.4% in constant currency), showing recovery and growth in Europe.
  • 7Comcast repurchased $1.5 billion of its common stock during the third quarter of 2021 as part of its renewed share repurchase program.

Frequently Asked Questions

Comcast's revenue growth in Q3 2021 was driven by strong performance across its key segments. The Cable Communications segment saw increased revenue from broadband and wireless services. NBCUniversal benefited from the recovery of its theme parks and strong advertising and distribution revenue in its Media segment, amplified by the Tokyo Olympics broadcast. Sky also contributed with growth in its direct-to-consumer services.

The NBCUniversal segment showed a significant rebound, with revenue up 57.9%. This was largely due to the reopening and improved operating conditions of its Theme Parks, which had been heavily impacted by COVID-19. The Media segment also performed well, driven by strong advertising and distribution revenues, partly due to the broadcast of the Tokyo Olympics. While the Studios segment saw revenue growth, its Adjusted EBITDA declined. The company noted that theme park operations may continue to be impacted by COVID-19 and capacity restrictions, especially in international markets.

Comcast restarted its share repurchase program in Q2 2021 and increased its authorization to $10 billion. During Q3 2021, the company repurchased approximately $1.5 billion of its common stock. The company also approved a 9% increase in its quarterly dividend to $0.25 per share (annualized $1.00) in January 2021 and expects to continue paying quarterly dividends, subject to board approval.

Comcast maintains a strong liquidity position with $11.0 billion available under its revolving credit facility and commercial paper program as of September 30, 2021. The company actively manages its debt, evidenced by a debt exchange transaction in August 2021 where it issued new senior notes and repurchased existing ones. It also made significant debt repayments. Comcast remains compliant with its financial covenants and believes it can meet its liquidity and capital requirements through operating cash flows, existing cash, and potential future financing.