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COMCAST CORP 8-K Report, Financial Results (Oct 28, 2021)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed October 28, 2021
Period End
October 28, 2021
Securities
CMCSACCZ
In the record · 2016–202610-K1110-Q328-K167

CMCSA filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 167 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · May ’17May ’17
  2. Leadership change8-K · Dec ’19Dec ’19
  3. Leadership change8-K · Feb ’26Feb ’26

01—Abstract

Summary

Summary of the 8-K filed October 28, 2021. Cited figures are marked; the original filing is the authoritative source.

Comcast reported third-quarter 2021 results on October 28, 2021, with strong top-line and earnings growth.

Consolidated revenue rose 18.7% to $30.3 billiona, Adjusted EBITDA increased 18.1% to $9.0 billion, and Adjusted EPS grew 33.8% to $0.87. GAAP EPS nearly doubled to $0.86 (up 95.5%), though it was boosted by a $486 million after-tax swing in investment gains. Free cash flow rose 41.3% to $3.2 billion, and nine-month free cash flow reached $13.3 billion.

Growth was broad-based across segments. Cable Communications Adjusted EBITDA rose 10.3% on 255,000 total customer relationship additions and a record 285,000 wireless line additions. NBCUniversal Adjusted EBITDA climbed 48.2% to $1.3 billionb, helped by Tokyo Olympics revenue of $1.8 billion and a recovery at the domestic Theme Parks.

Sky Adjusted EBITDA jumped 88.8% to $971 millionc, though 76.2% of that growth was on a constant-currency basis, and Sky's customer base fell by 233,000 following the loss of Serie A rights in Italy. Comcast also returned $2.7 billion to shareholders in the quarter, including $1.5 billion in buybacks, and had $8.0 billion remaining under its repurchase authorization. Investors should note that much of the headline strength reflects easy year-over-year comparisons against COVID-affected 2020, and that the Olympics contributed a one-time boost to NBCUniversal.

Peacock losses widened to $520 milliond in the quarter, and video customer losses continued, with 408,000 in the quarter. Sustaining cable wireless and broadband momentum, and managing Peacock's cost base, are the key items to watch.

02—Key points

Key Highlights

  1. Consolidated revenue rose 18.7% to $30.3 billion and Adjusted EBITDA rose 18.1% to $9.0 billion in Q3 2021.
  2. Adjusted EPS increased 33.8% to $0.87; GAAP EPS of $0.86 was up 95.5%, aided by investment gains.
  3. Free cash flow was $3.2 billion in the quarter (up 41.3%) and $13.3 billion year to date.
  4. Cable Communications added 255,000 total customer relationships, 300,000 broadband customers, and a record 285,000 wireless lines; Adjusted EBITDA rose 10.3%.
  5. NBCUniversal Adjusted EBITDA rose 48.2% to $1.3 billion, boosted by $1.8 billion of Tokyo Olympics revenue, while Peacock lost $520 million in EBITDA.
  6. Sky Adjusted EBITDA rose 88.8% to $971 million (76.2% constant currency), though Sky lost 233,000 customer relationships, largely from Italy's Serie A rights reduction.
  7. Comcast returned $2.7 billion to shareholders in Q3 ($1.5 billion buybacks, $1.2 billion dividends) and has $8.0 billion remaining under its buyback authorization.

03—Questions

Frequently Asked Questions

  1. How much of Comcast's Q3 2021 growth was driven by one-time or easy-comparison factors?

    A meaningful portion. NBCUniversal's revenue included $1.8 billion from the Tokyo Olympics, which excluded would have lifted Media revenue growth from 47.5% to 9.2%. Cable's prior-year results were depressed by COVID-related RSN fee adjustments, which excluding them would have cut Cable revenue growth from 7.4% to 6.3%. Sky's prior-year base was also weak, and Theme Parks was recovering from COVID closures.

  2. Why did GAAP EPS nearly double while net income growth was similar?

    GAAP EPS of $0.86 was up 95.5% versus $0.44 a year earlier. The main driver was equity-method investment income of $602 million versus a $266 million loss in the prior year, including Atairos and Hulu. Investment-related items are excluded from Adjusted EPS, which grew a more modest 33.8%.

  3. Is Peacock's losses a concern for investors?

    Peacock reported a Q3 Adjusted EBITDA loss of $520 million on $230 million of revenue, versus a $233 million loss a year earlier. Losses widened materially as the streaming service invested in content. Investors will want to watch subscriber growth and the path toward profitability, as the losses weigh on NBCUniversal Media segment margins.

  4. What is the state of Comcast's capital return and balance sheet?

    Comcast resumed buybacks in May 2021 after pausing in 2019 to reduce debt from the Sky acquisition. In Q3 it repurchased 25.9 million shares for $1.5 billion and paid $1.2 billion in dividends, leaving $8.0 billion of authorization. Nine-month free cash flow of $13.3 billion covered dividends of $3.4 billion and buybacks of $2.0 billion, though the filing does not disclose the net debt level in this release.

04—Continue

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