10-QPeriod: Q3 FY2024

COMCAST CORP Quarterly Report for Q3 Ended Sep 30, 2024

Filed October 31, 2024For Securities:CMCSACCZ

Summary

Comcast Corporation's (CMCSA) third-quarter 2024 results show a revenue increase of 6.5% to $32.07 billion, driven primarily by the Content & Experiences segment, particularly the Media division which benefited significantly from the Paris Olympics. However, overall profitability faced pressure, with net income attributable to Comcast Corporation down 10.3% to $3.63 billion for the quarter and down 5.9% year-to-date. This decline was influenced by increased programming and production costs, particularly related to content and marketing for Peacock, and a notable drop in Adjusted EBITDA by 2.3% for the quarter. The Connectivity & Platforms segment saw modest revenue growth but experienced a net loss of residential broadband customers, partly attributed to the expiration of the Affordable Connectivity Program. The company continues to manage its debt, repurchasing shares and paying dividends while maintaining significant liquidity.

Financial Highlights

51 data points
Beta

Revenue

$32.07B

Net Income

$3.63B

11.3% Net Margin

EPS (Diluted)

$0.94

Total Assets

$269.87B

Cash & Equivalents

$8.88B

Free Cash Flow

$4.11B

Financial Statements
Beta
Revenue$32.07B
Operating Expenses$26.21B
Operating Income$5.86B
Net Income$3.63B
EPS (Basic)$0.94
EPS (Diluted)$0.94
Shares Outstanding (Basic)3.86B
Shares Outstanding (Diluted)3.88B

Key Highlights

  • 1Total revenue increased by 6.5% to $32.07 billion for the third quarter of 2024 compared to the prior year period.
  • 2Net income attributable to Comcast Corporation decreased by 10.3% to $3.63 billion for the third quarter of 2024.
  • 3Adjusted EBITDA for the quarter declined by 2.3% to $9.74 billion.
  • 4The Media segment saw a substantial 36.5% revenue increase, largely due to the Paris Olympics, although Adjusted EBITDA for the segment decreased by 10.1%.
  • 5Residential Connectivity & Platforms segment revenue grew slightly by 0.1%, but the company experienced a net loss of 87,000 domestic broadband customers in the quarter.
  • 6Comcast repurchased $2.0 billion of its common stock during the third quarter.
  • 7The company paid $3.6 billion in dividends during the first nine months of 2024.

Frequently Asked Questions

The primary driver of revenue growth was the Media segment, which experienced a significant boost from the Paris Olympics. Revenue for the Media segment increased by 36.5% to $8.23 billion.

Net income declined due to increased costs and expenses. Programming and production costs rose by 18.1% driven by content and marketing for Peacock and sports programming. Additionally, amortization of acquisition-related intangible assets increased, contributing to higher overall costs.

The company noted challenges in customer acquisition for its Residential Connectivity & Platforms segment, experiencing a net loss of 87,000 domestic broadband customers in the quarter. This was partly attributed to the expiration of the Affordable Connectivity Program. While revenue in this segment saw a slight increase, customer growth remains a concern. The company expects continued declines in video revenue but growth in domestic wireless and international connectivity.

Comcast is actively managing its debt with new credit facilities and issuing senior notes. The company also continued its share repurchase program, buying back $2.0 billion of stock in the third quarter, and paid $3.6 billion in dividends in the first nine months of the year.