Market Overview

Comcast Reports 2nd Quarter 2018 Results

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Consolidated 2nd Quarter 2018 Highlights:

  • Consolidated Revenue Increased 2.1%; Net Income Attributable to
    Comcast Increased 27.6%; Adjusted EBITDA Increased 4.8%
  • Net Cash Provided by Operating Activities was $7.1 Billion; Free Cash
    Flow was $4.3 Billion
  • Earnings per Share Increased by 32.7% to $0.69; On an Adjusted Basis,
    Earnings per Share Increased 25.0% to $0.65
  • Dividends Paid Totaled $878 Million and Share Repurchases were $1.3
    Billion

Cable Communications 2nd Quarter 2018 Highlights:

  • Cable Communications Revenue Increased 3.4%; Adjusted EBITDA Increased
    6.5%
  • Total Customer Relationships Increased 2.8% Year-Over-Year to 29.8
    Million, Including Net Additions of 182,000 in the Quarter
  • Adjusted EBITDA per Customer Relationship Increased 3.7%
  • High-Speed Internet Residential Revenue Increased 9.3%; Business
    Services Revenue Increased 11.1%; Total High-Speed Internet Customers
    Increased by 260,000

NBCUniversal 2nd Quarter 2018 Highlights:

  • NBCUniversal Revenue was Flat; Adjusted EBITDA Increased 4.2%
  • Cable Networks and Broadcast Television Collectively Increased
    Adjusted EBITDA 9.0%
  • NBC Remains Ranked #1 Among Adults 18-49
  • Year-to-Date, Theme Parks Revenue Increased 8.6%; Adjusted EBITDA
    Increased 12.3%

Comcast Corporation (NASDAQ:CMCSA) today reported results for the
quarter ended June 30, 2018.

Brian L. Roberts, Chairman and Chief Executive Officer of Comcast
Corporation, said, "We delivered fantastic results in the second
quarter, including robust free cash flow of $4.3 billion. At Cable
Communications, we added 182,000 customer relationships, largely driven
by our addition of 260,000 broadband customers, which was the highest
second quarter result in 10 years. These strong customer metrics were
balanced with robust EBITDA growth, fueled by high-speed Internet and
business services. NBCUniversal's performance was highlighted by
continued momentum in affiliate revenue at our cable networks business,
and Telemundo presented its first ever FIFA World CupTM which
set multiple records for the network. Additionally, we are excited about
the new attractions that we opened at each of our theme parks during the
quarter, and pleased with the theatrical performance of Jurassic
World: Fallen Kingdom
. Overall, our successful results in the first
half of 2018 underscore the strength we see across Comcast NBCUniversal."

     

Consolidated Financial Results

2nd Quarter Year to Date

($ in millions)

 

20173

  2018   Growth    

20173

  2018   Growth
Revenue   $21,286     $21,735   2.1 %     $41,873     $44,526   6.3 %
Net Income Attributable to Comcast   $2,521     $3,216   27.6 %     $5,094     $6,334   24.3 %
Adjusted EBITDA1   $7,075     $7,417   4.8 %     $14,085     $14,661   4.1 %
Earnings per Share2 $0.52   $0.69   32.7 % $1.06   $1.36   28.3 %
Excluding Adjustments (see Table 4) $0.52 $0.65 25.0 % $1.05 $1.26 20.0 %

For additional detail on segment revenue and expenses, customer metrics,
capital expenditures, and free cash flow, please refer to the trending
schedules on Comcast's Investor Relations website at www.cmcsa.com.

Consolidated Revenue for the second quarter of 2018
increased 2.1% to $21.7 billion. Consolidated Net
Income Attributable to Comcast
increased 27.6% to $3.2 billion. Consolidated
Adjusted EBITDA increased 4.8% to $7.4 billion.

For the six months ended June 30, 2018, consolidated revenue increased
6.3% to $44.5 billion compared to 2017. Consolidated net income
attributable to Comcast increased 24.3% to $6.3 billion. Consolidated
Adjusted EBITDA increased 4.1% to $14.7 billion.

Earnings per Share (EPS) for the second quarter of 2018
was $0.69, an increase of 32.7% compared to the second quarter of 2017.
On an adjusted basis, EPS increased 25.0% to $0.65 (see Table 4).

For the six months ended June 30, 2018, EPS was $1.36, a 28.3% increase
compared to the prior year. On an adjusted basis, EPS increased 20.0% to
$1.26 (see Table 4).

Capital Expenditures decreased 3.3% to $2.3 billion in the
second quarter of 2018. Cable Communications' capital expenditures
decreased 9.7% to $1.8 billion in the second quarter of 2018, reflecting
lower spending on customer premise equipment and support capital,
partially offset by increased investments in scalable infrastructure and
line extensions. Cable capital expenditures represented 12.9% of Cable
revenue in the second quarter of 2018 compared to 14.8% in last year's
second quarter. NBCUniversal's capital expenditures of $461 million
increased 36.3%, reflecting continued investment at Theme Parks.

For the six months ended June 30, 2018, capital expenditures decreased
4.1% to $4.2 billion compared to 2017. Cable Communications' capital
expenditures decreased 7.6% to $3.5 billion and represented 12.7% of
Cable revenue compared to 14.2% in 2017. NBCUniversal's capital
expenditures increased 17.1% to $730 million in 2018.

Net Cash Provided by Operating Activities was $7.1 billion
in the second quarter of 2018. Free Cash Flow4
was $4.3 billion (see Table 5).

For the six months ended June 30, 2018, net cash provided by operating
activities was $12.5 billion. Free cash flow was $7.4 billion (see Table
5).

Dividends and Share Repurchases. During the second quarter
of 2018, Comcast paid dividends totaling $878 million and repurchased
38.3 million of its common shares for $1.3 billion. In the first six
months of 2018, Comcast repurchased 76.9 million of its common shares
for $2.8 billion. As of June 30, 2018, Comcast had $4.25 billion
available under its share repurchase authorization. Comcast expects to
repurchase at least $5.0 billion of its Class A common stock during
2018, subject to market conditions.

     
Cable Communications
2nd Quarter Year to Date
($ in millions)   2017 3   2018   Growth     2017 3   2018   Growth
Cable Communications Revenue                          
Video   $5,740     $5,628     (1.9 %)     $11,446     $11,287     (1.4 %)
High-Speed Internet   3,898     4,262     9.3 %     7,740     8,419     8.8 %
Voice   1,034     994     (3.9 %)     2,068     2,000     (3.3 %)
Business Services   1,585     1,761     11.1 %     3,128     3,487     11.5 %
Advertising   626     666     6.4 %     1,180     1,248     5.7 %
Other   374     399     6.9 %     745     787     5.7 %
Cable Communications Revenue $13,257   $13,710   3.4 % $26,307   $27,228   3.5 %
                           
Cable Communications Adjusted EBITDA   $5,293     $5,638     6.5 %     $10,467     $11,053     5.6 %
Adjusted EBITDA Margin 39.9 % 41.1 % 39.8 % 40.6 %
                           
Cable Communications Capital Expenditures   $1,956     $1,766     (9.7 %)     $3,737     $3,454     (7.6 %)
Percent of Cable Communications Revenue   14.8 %   12.9 %         14.2 %   12.7 %    
 

Revenue for Cable Communications increased 3.4% to $13.7
billion in the second quarter of 2018, driven primarily by increases in
high-speed Internet, business services and advertising revenue.
High-speed Internet revenue increased 9.3%, driven by an increase in the
number of residential high-speed Internet customers and rate
adjustments. Business services revenue increased 11.1%, primarily driven
by increases in the number of customers receiving our small and
medium-sized business services offerings. Advertising revenue increased
6.4%, primarily reflecting an increase in political advertising revenue.
Excluding political advertising revenue, advertising revenue increased
1.3%. Other revenue increased 6.9%, driven by an increase in revenue
from Xfinity Home and our X1 licensing agreements. Video revenue
decreased 1.9%, primarily reflecting a decrease in the number of
residential video customers. Voice revenue decreased 3.9%, primarily due
to a decrease in the number of residential voice customers.

For the six months ended June 30, 2018, Cable revenue increased 3.5% to
$27.2 billion compared to 2017, driven by growth in high-speed Internet
and business services revenue.

Total Customer Relationships increased by 182,000 to 29.8
million in the second quarter of 2018. Residential
customer relationships increased by 147,000 and business customer
relationships increased by 36,000. At the end of the second quarter,
68.7% of our residential customers received at least two Xfinity
products. Total high-speed Internet customer net additions were 260,000,
total video customer net losses were 140,000, total voice customer net
losses were 16,000 and total security and automation customer net
additions were 60,000.

     
Customers Net Additions
(in thousands)   2Q17   2Q18     2Q17   2Q18
Customer Relationships    
Residential Customer Relationships   26,874   27,559     77     147  
Business Services Customer Relationships   2,115   2,244     37     36  
Total Customer Relationships   28,989   29,802     114     182  
                   
Residential Customer Relationships Mix
Single Product Residential Customers   7,931   8,628     70     206  
Double Product Residential Customers   8,945   9,054     8     (63 )
Triple and Quad Product Residential Customers   9,998   9,877         4  
                   
Residential Video Customers   21,475   21,074     (45 )   (136 )
Business Services Video Customers   1,040   1,047     11     (4 )
Total Video Customers   22,516   22,121     (34 )   (140 )
Residential High-Speed Internet Customers   23,364   24,440     140     226  
Business Services High-Speed Internet Customers   1,942   2,069     35     34  
Total High-Speed Internet Customers   25,306   26,509     175     260  
Residential Voice Customers   10,470   10,213     (50 )   (32 )
Business Services Voice Customers   1,189   1,269     27     17  
Total Voice Customers   11,659   11,482     (22 )   (16 )
Total Security and Automation Customers 1,028 1,236 71 60
 

Adjusted EBITDA for Cable Communications increased 6.5% to
$5.6 billion in the second quarter of 2018, reflecting higher revenue,
partially offset by a 1.4% increase in operating expenses. The higher
expenses were due to a 3.3% increase in video programming costs,
primarily reflecting higher retransmission consent fees and sports
programming costs. Non-programming expenses were consistent with the
prior year's quarter, reflecting higher technical and product support
expenses, offset by decreases in other operating costs, franchise and
regulatory fees, customer service expenses, and advertising, marketing
and promotional expenses. This quarter's Adjusted EBITDA per customer
relationship increased 3.7%, and Adjusted EBITDA margin was 41.1%
compared to 39.9% in the second quarter of 2017.

For the six months ended June 30, 2018, Cable Adjusted EBITDA increased
5.6% to $11.1 billion compared to 2017, driven by higher revenue,
partially offset by a 2.1% increase in operating expenses. The higher
expenses were due to a 3.2% increase in video programming costs.
Non-programming expenses increased 1.4%. For the six months ended June
30, 2018, Adjusted EBITDA margin was 40.6% compared to 39.8% in 2017.

     
NBCUniversal
2nd Quarter Year to Date
($ in millions)   2017 3   2018   Growth     2017 3   2018   Growth
NBCUniversal Revenue
Cable Networks $2,696   $2,916   8.2 % $5,336   $6,110   14.5 %
Excluding Olympics (see Table 6)                 5,336     5,732     7.4 %
Broadcast Television 2,241 2,391 6.7 % 4,449 5,888 32.3 %
Excluding Olympics and Super Bowl (see Table 6)                 4,449     4,695     5.5 %
Filmed Entertainment   2,142     1,710     (20.2 %)     4,109     3,357     (18.3 %)
Theme Parks   1,314     1,361     3.6 %     2,432     2,642     8.6 %
Headquarters, other and eliminations   (75 )   (65 )   NM     (155 )   (154 )   NM
NBCUniversal Revenue $8,318 $8,313 (0.1 %) $16,171 $17,843 10.3 %
                           
NBCUniversal Adjusted EBITDA                          
Cable Networks   $1,055     $1,186     12.5 %     $2,170     $2,454     13.1 %
Broadcast Television   416     417     0.2 %     738     924     25.2 %
Filmed Entertainment   287     138     (52.1 %)     658     341     (48.2 %)
Theme Parks   551     569     3.4 %     948     1,064     12.3 %
Headquarters, other and eliminations   (235 )   (150 )   NM     (421 )   (338 )   NM
NBCUniversal Adjusted EBITDA $2,074 $2,160 4.2 % $4,093 $4,445 8.6 %
NM=comparison not meaningful.
 

Revenue for NBCUniversal remained flat at $8.3 billion in
the second quarter of 2018. Adjusted EBITDA increased 4.2%
to $2.2 billion, reflecting increases at Cable Networks and Theme Parks,
partially offset by a decline at Filmed Entertainment.

For the six months ended June 30, 2018, NBCUniversal revenue increased
10.3% to $17.8 billion compared to 2017. Adjusted EBITDA increased 8.6%
to $4.4 billion, reflecting increases at Cable Networks, Broadcast
Television and Theme Parks, partially offset by a decline at Filmed
Entertainment.

Cable Networks

Cable Networks revenue increased 8.2% to $2.9 billion in the second
quarter of 2018, reflecting higher distribution, content licensing and
other, and advertising revenue. Distribution revenue increased 8.7%,
primarily due to contractual rate increases and the timing of contract
renewals, partially offset by a moderating decline in subscribers at our
cable networks. Content licensing and other revenue increased 22.5%, due
to the timing of content provided under licensing agreements.
Advertising revenue increased 3.6%, reflecting higher rates, partially
offset by audience ratings declines. Adjusted EBITDA increased 12.5% to
$1.2 billion in the second quarter of 2018, reflecting higher revenue,
partially offset by higher operating costs.

For the six months ended June 30, 2018, revenue from the Cable Networks
segment increased 14.5% to $6.1 billion compared to 2017, reflecting
higher distribution, advertising, and content licensing and other
revenue. Excluding $378 million of revenue generated by the broadcast of
the 2018 PyeongChang Olympics in the first quarter of 2018, Cable
Networks revenue increased 7.4% (see Table 6). Adjusted EBITDA increased
13.1% to $2.5 billion compared to 2017, reflecting higher revenue,
partially offset by higher programming and production costs due to the
broadcast of the 2018 PyeongChang Olympics.

Broadcast Television

Broadcast Television revenue increased 6.7% to $2.4 billion in the
second quarter of 2018, reflecting increased advertising and
distribution and other revenue, partially offset by lower content
licensing revenue. Advertising revenue increased 9.2%, primarily driven
by higher rates and revenue associated with Telemundo's broadcast of the
2018 FIFA World Cup RussiaTM, partially offset by audience
ratings declines. Distribution and other revenue increased 16.8%, due to
higher retransmission consent fees. Content licensing revenue decreased
8.1%, reflecting the timing of content provided under licensing
agreements. Adjusted EBITDA was flat at $417 million in the second
quarter of 2018, reflecting higher revenue, offset by increased
programming and production costs associated with Telemundo's broadcast
of the 2018 FIFA World Cup RussiaTM.

For the six months ended June 30, 2018, revenue from the Broadcast
Television segment increased 32.3% to $5.9 billion compared to 2017,
reflecting an increase in advertising and distribution and other
revenue, partially offset by lower content licensing revenue. Excluding
$770 million of revenue generated by the broadcast of the 2018
PyeongChang Olympics in the first quarter of 2018 and $423 million of
revenue generated by the broadcast of Super Bowl LII in the first
quarter of 2018, Broadcast Television revenue increased 5.5% (see Table
6). Adjusted EBITDA increased 25.2% to $924 million compared to 2017,
reflecting an increase in revenue, partially offset by an increase in
programming and production costs, primarily due to increased sports
programming costs associated with the broadcasts of the 2018 PyeongChang
Olympics and Super Bowl LII.

Filmed Entertainment

Filmed Entertainment revenue decreased 20.2% to $1.7 billion in the
second quarter of 2018, reflecting lower theatrical, home entertainment,
and content licensing revenue. Theatrical revenue decreased 35.5%,
primarily due to the strength of releases in last year's second quarter,
including Fate of the Furious, and timing of this quarter's
releases, including Jurassic World: Fallen Kingdom. Home
Entertainment revenue decreased 32.8%, reflecting the success of several
releases in the prior year period, including Fifty Shades Darker,
Sing,
Split and Get Out, partially offset by Fifty
Shades Freed
in this year's second quarter. Content licensing
revenue decreased 5.3%, driven by the timing of when content was made
available under licensing agreements. Adjusted EBITDA decreased by 52.1%
to $138 million in the second quarter of 2018, reflecting lower revenue,
partially offset by lower programming and production costs.

For the six months ended June 30, 2018, revenue from the Filmed
Entertainment segment decreased 18.3% to $3.4 billion compared to 2017,
reflecting lower theatrical, home entertainment, content licensing and
other revenue. Adjusted EBITDA decreased 48.2% to $341 million compared
to 2017, reflecting lower revenue, partially offset by decreased
programming and production costs.

Theme Parks

Theme Parks revenue increased 3.6% to $1.4 billion in the second quarter
of 2018 reflecting higher per capita spending driven by the successful
openings of several new attractions including Fast & Furious -
Supercharged
TM in Orlando, partially offset by the timing
of spring holidays as compared to 2017. Adjusted EBITDA increased 3.4%
to $569 million in the second quarter of 2018, reflecting higher
revenue, partially offset by an increase in operating expenses,
including costs to support new attractions.

For the six months ended June 30, 2018, revenue from the Theme Parks
segment increased 8.6% to $2.6 billion compared to 2017, reflecting
higher per capita spending. Adjusted EBITDA increased 12.3% to $1.1
billion compared to 2017, due to higher revenue, partially offset by an
increase in operating expenses, including costs to support new
attractions.

Headquarters, Other and Eliminations

NBCUniversal Headquarters, Other and Eliminations include overhead and
eliminations among the NBCUniversal businesses. For the quarter ended
June 30, 2018, NBCUniversal Headquarters, Other and Eliminations
Adjusted EBITDA loss was $150 million, compared to a loss of $235
million in the second quarter of 2017.

For the six months ended June 30, 2018, NBCUniversal Headquarters, Other
and Eliminations Adjusted EBITDA loss was $338 million compared to a
loss of $421 million in 2017.

 

Corporate, Other and Eliminations

 

Corporate, Other and Eliminations primarily relate to corporate
operations, our new wireless initiative, Xfinity Mobile, and
Comcast Spectacor, as well as eliminations among Comcast's
businesses. For the quarter ended June 30, 2018, the Corporate,
Other and Eliminations Adjusted EBITDA loss was $381 million,
compared to a loss of $292 million in the second quarter of 2017.
This quarter's results include a loss of $185 million from Xfinity
Mobile, which reported net line additions of 204,000 in the
quarter, ending the quarter with 781,000 total lines.

 

For the six months ended June 30, 2018, the Corporate, Other and
Eliminations Adjusted EBITDA loss was $837 million, reflecting
increased costs associated with scaling Xfinity Mobile and
eliminations associated with the 2018 PyeongChang Olympics,
compared to a loss of $475 million in 2017.

 
 
 

Notes:

1   We define Adjusted EBITDA as net income attributable to Comcast
Corporation before net income (loss) attributable to noncontrolling
interests and redeemable subsidiary preferred stock, income tax
benefit (expense), investment and other income (loss), net, interest
expense, depreciation and amortization expense, and other operating
gains and losses (such as impairment charges related to fixed and
intangible assets and gains or losses on the sale of long-lived
assets), if any. From time to time, we may exclude from Adjusted
EBITDA the impact of certain events, gains, losses or other charges
(such as significant legal settlements) that affect the
period-to-period comparability of our operating performance.
 
2

All earnings per share amounts are presented on a diluted basis.

 
3

Effective January 1, 2018, we adopted the new accounting standard
related to revenue recognition. In connection with the adoption,
we implemented changes in classification for our Cable
Communications segment's Video, High-Speed Internet, Voice,
Business Services and Other revenues and costs and expenses. In
addition, the new guidance impacted the timing of recognition for
Cable Communications installation revenue and commissions expense,
and Cable Networks, Broadcast Television and Filmed Entertainment
content licensing renewals and extensions. These changes affected
Operating Income and Adjusted EBITDA for Comcast Consolidated and
the Cable Communications, Cable Networks, Broadcast Television and
Filmed Entertainment segments. The adoption did not impact
Consolidated Free Cash Flow; however, Cash Paid for Capitalized
Software and Other Intangible Assets, and Changes in Operating
Assets and Liabilities were affected. We adopted the guidance
using the full retrospective method and all periods presented have
been adjusted. To be consistent with our current management
reporting presentation, certain 2017 operating results were
reclassified within the Cable Communications segment.

 
4 Beginning in the first quarter 2018, we have implemented changes
that simplify our definition of Free Cash Flow to the following: Net
Cash Provided by Operating Activities (as stated in our Consolidated
Statement of Cash Flows) reduced by capital expenditures and cash
paid for intangible assets. From time to time, we may exclude from
Free Cash Flow the impact of certain cash receipts or payments (such
as significant legal settlements) that affect period-to-period
comparability. Cash payments for acquisitions and construction of
real estate properties and the construction of Universal Beijing
Resort are presented separately in our Consolidated Statement of
Cash Flows and are therefore excluded from capital expenditures for
Free Cash Flow. Following this change, our new definition of Free
Cash Flow no longer adjusts for, among other things, the effects of
economic stimulus packages, distributions to noncontrolling
interests and dividends for redeemable preferred stock and certain
nonoperating items. The prior period amounts have been adjusted to
reflect this change. See Table 5 for reconciliation of non-GAAP
financial measures.
 
All percentages are calculated on whole numbers. Minor differences
may exist due to rounding.
 

Conference Call and Other Information

Comcast Corporation will host a conference call with the financial
community today, July 26, 2018 at 8:30 a.m. Eastern Time (ET). The
conference call and related materials will be broadcast live and posted
on its Investor Relations website at www.cmcsa.com.
Those parties interested in participating via telephone should dial
(800) 263-8495 with the conference ID number 7673099. A replay of the
call will be available starting at 12:00 p.m. ET on July 26, 2018, on
the Investor Relations website or by telephone. To access the telephone
replay, which will be available until Thursday, August 2, 2018 at
midnight ET, please dial (855) 859-2056 and enter the conference ID
number 7673099.

From time to time, we post information that may be of interest to
investors on our website at www.cmcsa.com
and on our corporate blog, www.corporate.comcast.com/comcast-voices.
To automatically receive Comcast financial news by email, please visit www.cmcsa.com
and subscribe to email alerts.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements. Readers are
cautioned that such forward-looking statements involve risks and
uncertainties that could cause actual events or our actual results to
differ materially from those expressed in any such forward-looking
statements. Readers are directed to Comcast's periodic and other reports
filed with the Securities and Exchange Commission (SEC) for a
description of such risks and uncertainties. We undertake no obligation
to update any forward-looking statements.

Non-GAAP Financial Measures

In this discussion, we sometimes refer to financial measures that are
not presented according to generally accepted accounting principles in
the U.S. (GAAP). Certain of these measures are considered "non-GAAP
financial measures" under the SEC regulations; those rules require the
supplemental explanations and reconciliations that are in Comcast's Form
8-K (Quarterly Earnings Release) furnished to the SEC.

About Comcast Corporation

Comcast Corporation (NASDAQ:CMCSA) is a global media and technology
company with two primary businesses, Comcast Cable and NBCUniversal.
Comcast Cable is one of the nation's largest video, high-speed Internet,
and phone providers to residential customers under the XFINITY brand,
and also provides these services to businesses. It also provides
wireless and security and automation services to residential customers
under the XFINITY brand. NBCUniversal operates news, entertainment and
sports cable networks, the NBC and Telemundo broadcast networks,
television production operations, television station groups, Universal
Pictures and Universal Parks and Resorts. Visit www.comcastcorporation.com for
more information.

       

TABLE 1

Condensed Consolidated Statement of Income (Unaudited)

 
Three Months Ended Six Months Ended
(in millions, except per share data) June 30, June 30,
2017 2018 2017 2018
Revenue $21,286 $21,735 $41,873 $44,526
 
Programming and production 6,330 6,300 12,391 13,729
Other operating and administrative 6,168 6,365 12,107 12,879
Advertising, marketing and promotion 1,713   1,653   3,290   3,257  
14,211   14,318   27,788   29,865  
 
Adjusted EBITDA(1) 7,075 7,417 14,085 14,661
 
Depreciation expense 1,970 2,021 3,885 4,032
Amortization expense 537 582 1,090 1,170
Other operating gains   (200 )   (200 )
2,507 2,403 4,975 5,002
 
Operating income 4,568 5,014 9,110 9,659
 
Interest expense (758 ) (806 ) (1,513 ) (1,583 )
 
Investment and other income (loss), net
Equity in net income (losses) of investees, net 15 69 51 20
Realized and unrealized gains (losses) on equity securities, net (2 ) (40 ) (7 ) (12 )
Other income (loss), net 86   48   185   195  
99   77   229   203  
 
Income before income taxes 3,909 4,285 7,826 8,279
 
Income tax benefit (expense) (1,367 ) (1,077 ) (2,629 ) (1,895 )
 
Net income 2,542 3,208 5,197 6,384
 
Less: Net income (loss) attributable to noncontrolling interests and
redeemable subsidiary preferred stock
21 (8 ) 103 50
       
Net income attributable to Comcast Corporation $2,521   $3,216   $5,094   $6,334  
 
 
Diluted earnings per common share attributable to Comcast
Corporation shareholders
$0.52   $0.69   $1.06   $1.36  
 
Dividends declared per common share $0.1575   $0.19   $0.315   $0.38  
 
Diluted weighted-average number of common shares 4,809   4,643   4,820   4,674  
 

(1) See Table 4 for a reconciliation of non-GAAP financial
measures.

 
   

TABLE 2

Consolidated Statement of Cash Flows (Unaudited)

 
Six Months Ended
(in millions) June 30,
2017 2018
 
OPERATING ACTIVITIES
Net income $5,197 $6,384
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation, amortization and other operating gains 4,975 5,002
Share-based compensation 391 410
Noncash interest expense (income), net 122 171
Net (gain) loss on investment activity and other (113 ) (68 )
Deferred income taxes 477 814
Changes in operating assets and liabilities, net of effects of
acquisitions and divestitures:
Current and noncurrent receivables, net 77 (60 )
Film and television costs, net 277 68
Accounts payable and accrued expenses related to trade creditors (147 ) (119 )
Other operating assets and liabilities (507 ) (65 )
 
Net cash provided by operating activities 10,749   12,537  
 
INVESTING ACTIVITIES
Capital expenditures (4,405 ) (4,223 )
Cash paid for intangible assets (771 ) (930 )
Acquisitions and construction of real estate properties (250 ) (104 )
Construction of Universal Beijing Resort (29 ) (116 )
Acquisitions, net of cash acquired (398 ) (88 )
Proceeds from sales of investments 57 113
Purchases of investments (1,825 ) (538 )
Other 214   580  
 
Net cash provided by (used in) investing activities (7,407 ) (5,306 )
 
FINANCING ACTIVITIES
Proceeds from (repayments of) short-term borrowings, net (1,695 ) 23
Proceeds from borrowings 8,963 4,279
Repurchases and repayments of debt (4,967 ) (4,347 )
Repurchases of common stock under repurchase program and employee
plans
(2,476 ) (2,998 )
Dividends paid (1,404 ) (1,616 )
Purchase of Universal Studios Japan noncontrolling interests (2,299 )
Distributions to noncontrolling interests and dividends for
redeemable subsidiary preferred stock
(137 ) (140 )
Other 80   (161 )
 
Net cash provided by (used in) financing activities (3,935 ) (4,960 )
 
Increase (decrease) in cash, cash equivalents and restricted cash (593 ) 2,271
 
Cash, cash equivalents and restricted cash, beginning of period 3,415   3,571  
 
Cash, cash equivalents and restricted cash, end of period $2,822   $5,842  
 
   

TABLE 3

Condensed Consolidated Balance Sheet (Unaudited)

 
(in millions) December 31, June 30,
2017 2018
ASSETS
 
Current Assets
Cash and cash equivalents $3,428 $5,726
Receivables, net 8,834 8,847
Programming rights 1,613 1,219
Other current assets 2,468 2,423
Total current assets 16,343 18,215
 
Film and television costs 7,087 7,411
 
Investments 6,931 7,438
 
Property and equipment, net 38,470 39,355
 
Franchise rights 59,364 59,365
 
Goodwill 36,780 36,872
 
Other intangible assets, net 18,133 18,848
 
Other noncurrent assets, net 4,354 3,744
 
$187,462 $191,248
 
LIABILITIES AND EQUITY
 
Current Liabilities
Accounts payable and accrued expenses related to trade creditors $6,908 $6,940
Accrued participations and residuals 1,644 1,731
Deferred revenue 1,687 1,746
Accrued expenses and other current liabilities 6,620 5,956
Current portion of long-term debt 5,134 2,634
Total current liabilities 21,993 19,007
 
Long-term debt, less current portion 59,422 61,946
 
Deferred income taxes 24,259 25,140
 
Other noncurrent liabilities 10,972 12,069
 
Redeemable noncontrolling interests and redeemable subsidiary
preferred stock
1,357 1,343
 
Equity
Comcast Corporation shareholders' equity 68,616 70,694
Noncontrolling interests 843 1,049
Total equity 69,459 71,743
 
$187,462 $191,248
 
     

TABLE 4

 

Reconciliation from Net Income Attributable to Comcast
Corporation to Adjusted EBITDA (Unaudited)

 

Three Months Ended
June 30,

Six Months Ended
June 30,

(in millions) 2017   2018 2017   2018
Net income attributable to Comcast Corporation $2,521 $3,216 $5,094 $6,334
Net income (loss) attributable to noncontrolling interests and
redeemable subsidiary preferred stock
21 (8 ) 103 50
Income tax (benefit) expense 1,367 1,077 2,629 1,895
Interest expense 758 806 1,513 1,583
Investment and other (income) loss, net (1) (99 ) (77 ) (229 ) (203 )
Depreciation and amortization expense and other operating gains 2,507   2,403   4,975   5,002  
Adjusted EBITDA $7,075   $7,417   $14,085   $14,661  
 
         

Reconciliation of EPS Excluding Adjustments (Unaudited)

 

Three Months Ended
June 30,

Six Months Ended
June 30,

2017 2018 2017 2018
(in millions, except per share data)        
$   EPS $   EPS $   EPS $   EPS
 
Net income attributable to Comcast Corporation $2,521 $0.52 $3,216 $0.69 $5,094 $1.06 $6,334 $1.36
Growth % 27.6 % 32.7 % 24.3 % 28.3 %
 
Fair value investments (2) (25 ) (82 ) (0.02 ) (56 ) (0.01 ) (129 ) (0.03 )
Income tax adjustments (3) (128 ) (0.03 )
Gains on the sales of businesses and investments (4) (148 ) (0.03 ) (196 ) (0.04 )
Costs related to Sky and Twenty-First Century Fox offers (5)       23     0.01         23      
 
Net income attributable to Comcast Corporation (excluding
adjustments)
$2,496   $0.52 $3,009   $0.65 $5,038   $1.05 $5,904   $1.26
 
Growth % 20.5 % 25.0 % 17.2 % 20.0 %
 
 
(1)   Investment and other (income) loss, net, includes equity in net
(income) losses of investees, net, realized and unrealized (gains)
losses on equity securities, net, and other (income) loss, net.
 
(2) Fair value investments include realized and unrealized (gains)
losses on equity securities, net (as stated in Table 1), as well as
the equity in net (income) losses, net, for our investment in
Atairos.
 
                                         

Three Months Ended
June 30,

    Six Months Ended
June 30,
2017   2018 2017   2018
Realized and unrealized (gains) losses on equity securities, net $2 $40 $7 $12
Equity in net (income) losses, net for investment in Atairos (42 ) (151 ) (99 ) (186 )
Fair value investments before income taxes (40 ) (111 ) (92 ) (174 )
Fair value investments, net of tax ($25 ) ($82 ) ($56 ) ($129 )
 
(3) 2018 year to date net income attributable to Comcast Corporation
includes a $128 million net income tax benefit recorded in the 1st
quarter 2018 as a result of federal tax legislation enacted in 2018.
 
(4) 2nd quarter and year to date 2018 net income attributable to Comcast
Corporation includes $200 million of other operating gains, $148
million net of tax, resulting from the sale of a controlling
interest in our arena management-related businesses. 2018 year to
date net income attributable to Comcast Corporation also includes
$64 million of other income, $48 million net of tax, resulting from
a gain on the sale of our investment in The Weather Channel.
 
(5) 2nd quarter 2018 net income attributable to Comcast Corporation
includes $20 million of operating costs and expenses and $11 million
of interest expense ($31 million in total, $23 million net of tax)
related to the Sky and Twenty-First Century Fox offers.
 

Note: Minor differences may exist due to rounding.

 

TABLE 5

 

Reconciliation from Net Cash Provided by Operating Activities
to Free Cash Flow
1 (Unaudited)

         

Three Months Ended
June 30,

Six Months Ended
June 30,

(in millions) 2017 2018 2017 2018
Net cash provided by operating activities $5,124 $7,063 $10,749 $12,537
Capital expenditures (2,327 ) (2,250 ) (4,405 ) (4,223 )
Cash paid for capitalized software and other intangible assets (386 ) (511 ) (771 ) (930 )
Total free cash flow $2,411   $4,302   $5,573   $7,384  
         

Alternate Presentation of Free Cash Flow1
(Unaudited)

 

Three Months Ended
June 30,

Six Months Ended
June 30,

(in millions) 2017 2018 2017 2018
Adjusted EBITDA $7,075 $7,417 $14,085 $14,661
Capital expenditures (2,327 ) (2,250 ) (4,405 ) (4,223 )
Cash paid for capitalized software and other intangible assets (386 ) (511 ) (771 ) (930 )
Cash interest expense (477 ) (500 ) (1,372 ) (1,354 )
Cash taxes (2,077 ) (461 ) (2,209 ) (623 )
Changes in operating assets and liabilities 327 313 (262 ) (692 )
Noncash share-based compensation 218 211 391 410
Other 58   83   116   135  
Total free cash flow $2,411   $4,302   $5,573   $7,384  
   
(1) Beginning in the first quarter 2018, we have implemented changes
that simplify our definition of Free Cash Flow to the following: Net
Cash Provided by Operating Activities (as stated in our Consolidated
Statement of Cash Flows) reduced by capital expenditures and cash
paid for intangible assets. From time to time, we may exclude from
Free Cash Flow the impact of certain cash receipts or payments (such
as significant legal settlements) that affect period-to-period
comparability. Cash payments for acquisitions and construction of
real estate properties and the construction of Universal Beijing
Resort are presented separately in our Consolidated Statement of
Cash Flows and are therefore excluded from capital expenditures for
Free Cash Flow. Following this change, our new definition of Free
Cash Flow no longer adjusts for, among other things, the effects of
economic stimulus packages, distributions to noncontrolling
interests and dividends for redeemable preferred stock and certain
nonoperating items. The prior period amounts have been adjusted to
reflect this change.
 
 
 
Note: Minor differences may exist due to rounding.
 
                                                 

TABLE 6

 

Reconciliation of Cable Networks Revenue Excluding 2018
Olympics (Unaudited)

 

Three Months Ended
June 30,

Six Months Ended
June 30,

(in millions) 2017 2018 Growth % 2017 2018 Growth %
 
Revenue $2,696 $2,916 8.2 % $5,336 $6,110 14.5 %
 
2018 Olympics       (378 )
 
Revenue excluding 2018 Olympics $2,696   $2,916   8.2 % $5,336   $5,732   7.4 %
 
             

Reconciliation of Broadcast Television Revenue Excluding 2018
Olympics and 2018 Super Bowl (Unaudited)

 

Three Months Ended
June 30,

Six Months Ended
June 30,

(in millions) 2017 2018 Growth % 2017 2018 Growth %
 
Revenue $2,241 $2,391 6.7 % $4,449 $5,888 32.3 %
 
2018 Olympics (770 )
2018 Super Bowl       (423 )
 
Revenue excluding 2018 Olympics and 2018 Super Bowl $2,241   $2,391   6.7 % $4,449   $4,695   5.5 %
 
 

Note: Minor differences may exist due to rounding.

 

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