01—Abstract
Summary
Summary of the 8-K filed April 28, 2022. Cited figures are marked; the original filing is the authoritative source.
Comcast reported first-quarter 2022 results on April 28, 2022, with consolidated revenue up 14.0% to $31.0 billiona, driven largely by the Beijing Olympics and Super Bowl broadcasts at NBCUniversal and a strong recovery at Theme Parks.
Adjusted EBITDA rose 8.8% to $9.2 billionb, and Adjusted EPS grew 13.2% to $0.86, while GAAP diluted EPS rose 9.9% to $0.78. Free cash flow declined 9.9% to $4.8 billion, as operating cash flow fell 6.4% to $7.3 billion, mainly due to a $1.5 billion unfavorable swing in changes in operating assets and liabilities. Underlying operating trends were mixed.
Cable Communications grew Adjusted EBITDA 6.5% with a 44.0% margin, and added 262,000 broadband customers and a record 318,000 wireless lines, though it lost 512,000 video and 282,000 voice customers. Sky's Adjusted EBITDA more than doubled-plus (up 71.0%) on lower sports rights costs in Italy and Germany, even as Sky revenue fell 4.5% (flat on a constant-currency basis). NBCUniversal Media Adjusted EBITDA fell 21.3% on higher programming costs and Peacock losses of $456 millionc, so investors should weigh the Olympic and Super Bowl benefit as largely non-recurring.
Capital returns remained significant: Comcast returned $4.2 billiond to shareholders in the quarter, including $3.0 billion in buybacks (62.5 million shares) and $1.2 billion in dividends. The company also disclosed a new joint venture with Charter announced the prior day, which the press release describes as a platform for entertainment aggregation and streaming products.
02—Key points
Key Highlights
- Revenue grew 14.0% to $31.0 billion, but excluding roughly $1.5 billion of Olympics and Super Bowl revenue, growth was materially lower.
- Adjusted EBITDA rose 8.8% to $9.15 billion; Adjusted EPS rose 13.2% to $0.86 versus GAAP EPS of $0.78 (up 9.9%).
- Free cash flow fell 9.9% to $4.76 billion, with operating cash flow down 6.4% to $7.26 billion, pressured by working capital changes.
- Cable Communications added 262,000 broadband customers and a record 318,000 wireless lines, but lost 512,000 video and 282,000 voice customers.
- NBCUniversal Media Adjusted EBITDA fell 21.3% to $1.16 billion due to higher sports programming costs and Peacock losses of $456 million.
- Theme Parks Adjusted EBITDA swung to $451 million from a $61 million loss, with Universal Orlando posting its best first-quarter EBITDA on record.
- Shareholder returns totaled $4.2 billion ($3.0 billion in buybacks, $1.2 billion in dividends), up from $1.1 billion a year earlier.
03—Questions
Frequently Asked Questions
Why did Comcast's revenue grow so strongly in Q1 2022?
Revenue rose 14.0% to $31.0 billion, largely because NBCUniversal broadcast the Beijing Winter Olympics and the NFL Super Bowl, contributing about $1.5 billion of incremental revenue. Theme Parks also recovered sharply from COVID-19 closures and capacity limits, with revenue up $941 million, and Universal Beijing Resort opened in September 2021.
Is Comcast's free cash flow decline a concern?
Free cash flow fell 9.9% to $4.76 billion. The company attributes much of the pressure to a $1.5 billion swing in changes in operating assets and liabilities, which is timing-related, while capital expenditures were roughly flat at $1.9 billion. Investors should monitor whether working capital normalizes in subsequent quarters.
Why did Sky's Adjusted EBITDA jump 71%?
Sky's Adjusted EBITDA rose to $622 million from $364 million, mainly because operating costs fell 10.4%, reflecting lower sports programming costs after resets in Italy and Germany. Revenue declined 4.5% (flat in constant currency), and Sky lost about 106,000 customer relationships, primarily in Italy.
What is the impact of Peacock losses on NBCUniversal?
Peacock generated $472 million in revenue but an Adjusted EBITDA loss of $456 million in the quarter, versus a $277 million loss a year earlier. The loss widened largely due to Olympics and Super Bowl programming costs, so the quarter's figures overstate the ongoing run-rate, though the company continues to invest in the service.
What does the new Charter joint venture mean for investors?
The press release references a new joint venture with Charter announced April 27, 2022, which management describes as a way to deliver entertainment aggregation and streaming products across its global technology platform to more customers. This 8-K does not provide financial terms, so investors should review subsequent filings and announcements for details on structure, economics, and financial impact.
04—Continue