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press release

July 29, 2021, 7:01 a.m. EDT

Comcast Reports 2nd Quarter 2021 Results

Comcast Corporation /zigman2/quotes/209472081/composite CMCSA +0.35% today reported results for the quarter ended June 30, 2021.

“We delivered excellent results in the quarter, continuing our great start to the year. At Cable, our performance was exceptional, highlighted by 11% revenue and 15% Adjusted EBITDA growth, the best broadband and total customer relationship net additions on record for a second quarter, and the most wireless net additions since the launch of Xfinity Mobile in 2017. At NBCUniversal, Adjusted EBITDA increased an impressive 13%, fueled by the recovery at Theme Parks, particularly at Universal Orlando. And I am pleased with and encouraged by our customer and financial metrics in the U.K., which drove Sky’s double-digit total revenue growth in the quarter. We remain committed to innovating for our customers and investing for a strong future. I have great confidence in our strategy and our ability to execute, which is reflected in our decision to restart our share repurchase program during the quarter, earlier than previously planned," commented Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation.

                     
  ($ in millions, except per share data)                  
    2nd Quarter     Year to Date  
  Consolidated Results 2021   2020   Change     2021   2020   Change  
                     
  Revenue $28,546   $23,715   20.4 %     $55,751   $50,324   10.8 %  
  Net Income Attributable to Comcast $3,738   $2,988   25.1 %     $7,067   $5,135   37.6 %  
  Adjusted Net Income [1] $3,943   $3,170   24.3 %     $7,472   $6,436   16.1 %  
  Adjusted EBITDA [2] $8,927   $7,927   12.6 %     $17,339   $16,057   8.0 %  
  Earnings per Share [3] $0.80   $0.65   23.1 %     $1.51   $1.11   36.0 %  
  Adjusted Earnings per Share [1] $0.84   $0.69   21.7 %     $1.60   $1.40   14.3 %  
  Net Cash Provided by Operating Activities $7,606   $8,643   (12.0 %)     $15,357   $14,467   6.2 %  
  Free Cash Flow [4] $4,791   $5,966   (19.7 %)     $10,071   $9,291   8.4 %  
 

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 .

2nd Quarter 2021 Highlights:

  • Consolidated Adjusted EBITDA Increased 12.6% to $8.9 Billion; Adjusted EPS Increased 21.7% to $0.84; Generated Free Cash Flow of $4.8 Billion

  • Resumed Share Repurchase Program in May, Earlier Than Previously Planned; Returned $1.7 Billion to Shareholders During the Quarter Through a Combination of Share Repurchases and Dividend Payments

  • Cable Communications Total Customer Relationship Net Additions Were 294,000, the Best Second Quarter Result on Record; Total Broadband Customer Net Additions Were 354,000, the Best Second Quarter Result on Record

  • Cable Communications Adjusted EBITDA Increased 14.5% and Adjusted EBITDA per Customer Relationship Increased 8.9%

  • Cable Communications Wireless Customer Line Net Additions Were 280,000, the Best Quarterly Result on Record

  • NBCUniversal Adjusted EBITDA Increased 12.5% to $1.6 billion, Including Peacock Losses

  • Theme Parks Delivered Its First Profitable Quarter Since the First Quarter of 2020, Driven by Universal Orlando

  • Sky Revenue Increased 28.0% to $5.2 billion; On a Constant Currency Basis, Revenue Increased 14.9%

Consolidated Financial Results

Revenue for the second quarter of 2021 increased 20.4% to $28.5 billion. Net Income Attributable to Comcast increased 25.1% to $3.7 billion. Adjusted Net Income increased 24.3% to $3.9 billion. Adjusted EBITDA increased 12.6% to $8.9 billion.

For the six months ended June 30, 2021, revenue increased 10.8% to $55.8 billion compared to 2020. Net income attributable to Comcast increased 37.6% to $7.1 billion. Adjusted Net Income increased 16.1% to $7.5 billion. Adjusted EBITDA increased 8.0% to $17.3 billion.

Earnings per Share (EPS) for the second quarter of 2021 was $0.80, an increase of 23.1% compared to the prior year period. Adjusted EPS increased 21.7% to $0.84.

For the six months ended June 30, 2021, EPS was $1.51, a 36.0% increase compared to 2020. Adjusted EPS increased 14.3% to $1.60.

Capital Expenditures increased 3.3% to $2.1 billion in the second quarter of 2021. Cable Communications’ capital expenditures increased 16.8% to $1.7 billion. NBCUniversal’s capital expenditures decreased 52.0% to $182 million. Sky's capital expenditures decreased 14.4% to $184 million.

For the six months ended June 30, 2021, capital expenditures increased 1.2% to $4.0 billion compared to 2020. Cable Communications' capital expenditures increased 12.7% to $3.1 billion. NBCUniversal's capital expenditures decreased 53.2% to $354 million. Sky's capital expenditures increased 10.4% to $455 million.

Net Cash Provided by Operating Activities was $7.6 billion in the second quarter of 2021. Free Cash Flow was $4.8 billion.

For the six months ended June 30, 2021, net cash provided by operating activities was $15.4 billion. Free cash flow was $10.1 billion.

Dividends and Share Repurchases. Comcast resumed its share repurchase program in May 2021 after pausing the program in 2019 to accelerate the reduction of indebtedness it incurred in connection with its acquisition of Sky. During the second quarter of 2021, Comcast paid dividends totaling $1.2 billion and repurchased 8.8 million of its common shares for $500 million. As of June 30, 2021, Comcast had $9.5 billion available under its share repurchase authorization.

For the six months ended June 30, 2021, Comcast paid dividends totaling $2.2 billion and repurchased 8.8 million of its common shares for $500 million.

Cable Communications

 
                   
  ($ in millions)                  
    2nd Quarter     Year to Date  
    2021 2020 Change     2021 2020 Change  
  Cable Communications Revenue                  
  Broadband $5,717 $5,000 14.3 %     $11,317 $10,001 13.2 %  
  Video 5,554 5,415 2.6 %     11,177 11,047 1.2 %  
  Voice 870 877 (0.8 %)     1,741 1,776 (2.0 %)  
  Wireless 556 326 70.4 %     1,069 669 59.8 %  
  Business Services 2,202 2,004 9.9 %     4,369 4,047 8.0 %  
  Advertising 679 428 58.6 %     1,296 985 31.6 %  
  Other 425 378 12.4 %     838 821 2.1 %  
  Cable Communications Revenue $16,002 $14,428 10.9 %     $31,807 $29,346 8.4 %  
                     
  Cable Communications Adjusted EBITDA $7,073 $6,176 14.5 %     $13,903 $12,252 13.5 %  
  Adjusted EBITDA Margin 44.2 % 42.8 %       43.7 % 41.7 %    
                     
  Cable Communications Capital Expenditures $1,695 $1,452 16.8 %     $3,065 $2,721 12.7 %  
  Percent of Cable Communications Revenue 10.6 % 10.1 %       9.6 % 9.3 %    
                     

Revenue for Cable Communications increased 10.9% to $16.0 billion in the second quarter of 2021, driven by increases in broadband, advertising, wireless, business services, video and other revenue, partially offset by a decrease in voice revenue. In the prior year period, results were negatively impacted by COVID-19, including accrued customer regional sports network (RSN) fee adjustments, reduced advertising revenue and lower revenue due to Xfinity's commitment to the FCC's Keep Americans Connected Pledge and our efforts to assist customers during the COVID-19 public health crisis. Excluding the impact of accrued customer RSN fee adjustments in the prior year period [5] , Cable Communications revenue increased 9.3%. Broadband revenue increased 14.3% due to an increase in the number of residential broadband customers and an increase in average rates. Excluding the impact of accrued RSN fee adjustments in the prior year period for customers taking bundled services [5] , broadband revenue increased 12.6%. Advertising revenue increased 58.6%, primarily reflecting an overall market recovery in the current period and reduced spending from advertisers in the prior year period as a result of COVID-19. Excluding political advertising revenue, advertising revenue increased 60.4%. Wireless revenue increased 70.4% due to an increase in the number of customer lines and an increase in device sales. Business services revenue increased 9.9%, primarily due to an increase in average rates compared to the prior year period which was negatively impacted by COVID-19. Video revenue increased 2.6%, reflecting an increase in average rates, partially offset by a decrease in the number of residential video customers. Excluding the impact of accrued customer RSN fee adjustments in the prior year period [5] , video revenue increased 0.5%. Other revenue increased 12.4%, primarily reflecting increases in revenue from our security and automation services and from licensing of our technology platforms. Voice revenue decreased 0.8%, primarily reflecting a decrease in the number of residential voice customers, partially offset by an increase in average rates.

For the six months ended June 30, 2021, Cable revenue increased 8.4% to $31.8 billion compared to 2020, driven by growth in broadband, wireless, business services, advertising, video and other revenue, partially offset by a decrease in voice revenue. Excluding the impact of accrued customer RSN fee adjustments in 2020 [5] , Cable Communications revenue increased 7.6%.

Total Customer Relationships increased by 294,000 to 33.8 million in the second quarter of 2021. Residential customer relationships increased by 277,000 and business customer relationships increased by 17,000. Total broadband customer net additions were 354,000, total video customer net losses were 399,000 and total voice customer net losses were 108,000. In addition, Cable Communications added 280,000 wireless lines in the quarter.

For the six months ended June 30, 2021, total customer relationships increased by 675,000. Residential customer relationships increased by 647,000 and business customer relationships increased by 28,000. Total broadband customer net additions were 814,000, total video customer net losses were 889,000 and total voice customer net losses were 214,000. In addition, Cable Communications added 558,000 wireless lines in the current period.

                       
  (in thousands)                    
        Net Additions / (Losses)  
          2nd Quarter     Year to Date  
    2Q21   2Q206     2021   2020       2021   2020    
  Customer Relationships                    
  Residential Customer Relationships 31,339   29,724     277   241       647   601    
  Business Services Customer Relationships 2,454   2,384     17   (24)       28   (12)    
  Total Customer Relationships 33,793   32,108     294   217       675   589    
                       
  Residential Customer Relationships Mix                    
  One Product Residential Customers 13,477   11,306     480   531       1,069   1,085    
  Two Product Residential Customers 8,562   8,742     (83)   (107)       (173)   (181)    
  Three or More Product Residential Customers 9,299   9,676     (120)   (184)       (250)   (303)    
                       
  Residential Broadband Customers 29,108   27,194     334   340       782   806    
  Business Services Broadband Customers 2,280   2,209     20   (17)       32   (6)    
  Total Broadband Customers 31,388   29,403     354   323       814   800    
                       
  Residential Video Customers 18,225   19,473     (364)   (427)       (768)   (814)    
  Business Services Video Customers 731   894     (34)   (51)       (121)   (72)    
  Total Video Customers 18,956   20,367     (399)   (477)       (889)   (887)    
                       
  Residential Voice Customers 9,412   9,698     (121)   (142)       (233)   (236)    
  Business Services Voice Customers 1,376   1,331     13   (16)       19   (12)    
  Total Voice Customers 10,788   11,029     (108)   (158)       (214)   (248)    
                       
  Total Wireless Lines 3,383   2,393     280   126       558   342    
                       

Adjusted EBITDA for Cable Communications increased 14.5% to $7.1 billion in the second quarter of 2021, reflecting higher revenue, partially offset by an 8.2% increase in operating expenses. In the prior year period, total operating expenses benefited from adjustments for provisions in our programming distribution agreements with RSNs related to canceled sporting events as a result of COVID-19. In the second quarter of 2021, programming costs increased 12.1%, including the effects of the adjustment provisions in the prior year period. Excluding these adjustments [5] , programming costs increased 5.0%, reflecting the timing of contract renewals, partially offset by a decline in the number of video subscribers. Non-programming expenses increased 5.7%, primarily reflecting higher technical and product support expenses and advertising, marketing and promotion expenses, partially offset by lower other expenses and customer service expenses. Non-programming expenses per customer relationship increased 0.5%. Adjusted EBITDA per customer relationship increased 8.9%, and Adjusted EBITDA margin was 44.2% compared to 42.8% in the prior year period. While the accrued RSN adjustments did not impact Adjusted EBITDA in the prior year period, they resulted in an increase to Adjusted EBITDA margin. Cable Communications results include Adjusted EBITDA [7] of $68 million from our wireless business, compared to a loss of $37 million in the prior year period.

For the six months ended June 30, 2021, Cable Adjusted EBITDA increased 13.5% to $13.9 billion compared to 2020, reflecting higher revenue, partially offset by a 4.7% increase in operating expenses. Programming costs increased 8.7%, reflecting the timing of contract renewals and adjustments in 2020 for provisions in our programming distribution agreements with RSNs related to canceled sporting events as a result of COVID-19, partially offset by a decline in the number of video subscribers. Excluding the impact of accrued RSN adjustments in 2020 [5] , programming costs increased 5.3%. Non-programming expenses increased 2.2%. For the six months ended June 30, 2021, Adjusted EBITDA per customer relationship increased 7.9%, and Adjusted EBITDA margin was 43.7% compared to 41.7% in 2020. While the accrued RSN adjustments did not impact Adjusted EBITDA for the six months ended June 30, 2020, they resulted in an increase to Adjusted EBITDA margin in that period. Cable Communications results include Adjusted EBITDA [7] of $74 million from our wireless business, compared to a loss of $96 million in 2020.

Capital Expenditures for Cable Communications increased 16.8% to $1.7 billion in the second quarter of 2021, primarily reflecting increased investment in scalable infrastructure, customer premise equipment and line extensions. Cable capital expenditures represented 10.6% of Cable revenue in the second quarter of 2021 compared to 10.1% in the prior year period.

For the six months ended June 30, 2021, Cable capital expenditures increased 12.7% to $3.1 billion, primarily reflecting increased investment in scalable infrastructure. Cable capital expenditures represented 9.6% of Cable revenue compared to 9.3% in 2020.

NBCUniversal

 
                     
  ($ in millions)                  
    2nd Quarter     Year to Date  
    2021   2020   Change     2021   2020   Change  
  NBCUniversal Revenue                  
  Media $5,148   $4,096   25.7 %     $10,184   $8,974   13.5 %  
  Studios 2,224   2,052   8.4 %     4,620   4,461   3.6 %  
  Theme Parks 1,095   136   NM     1,714   1,061   61.5 %  
  Headquarters and other $22   11   97.4 %     38   20   92.3 %  
  Eliminations (534 ) (580 ) 7.8 %     (1,576 ) (1,072 ) (47.1 %)  
  NBCUniversal Revenue $7,955   $5,715   39.2 %     $14,980   $13,444   11.4 %  
                     
  NBCUniversal Adjusted EBITDA                  
  Media $1,378   $1,636   (15.8 %)     $2,851   $3,165   (9.9 %)  
  Studios 156   323   (51.7 %)     653   623   4.8 %  
  Theme Parks 221   (393 ) NM     159   (306 ) NM  
  Headquarters and other (186 ) (82 ) (127.3 %)     (395 ) (303 ) (30.3 %)  
  Eliminations (15 ) (104 ) 85.6 %     (225 ) (110 ) (103.0 %)  
  NBCUniversal Adjusted EBITDA $1,553   $1,380   12.5 %     $3,043   $3,069   (0.8 %)  
  NM=comparison not meaningful.                  
                     

Beginning in the first quarter of 2021, the operations of Peacock, which were previously reported in Corporate and Other, are now included with NBCUniversal results and the operations of NBCUniversal are now presented in three reportable business segments: Media, Studios and Theme Parks. Prior periods have been adjusted to reflect this presentation.

Revenue for NBCUniversal increased 39.2% to $8.0 billion in the second quarter of 2021. Adjusted EBITDA increased 12.5% to $1.6 billion.

For the six months ended June 30, 2021, NBCUniversal revenue increased 11.4% to $15.0 billion compared to 2020. Adjusted EBITDA decreased 0.8% to $3.0 billion.

Media Media revenue increased 25.7% to $5.1 billion in the second quarter of 2021, reflecting higher advertising revenue, distribution revenue and other revenue. Advertising revenue increased 32.8%, reflecting an increase in the number of sporting events and higher pricing in the current period, and reduced spending from advertisers in the prior year period as a result of COVID-19, including from the postponement or cancellation of sporting events. These increases were partially offset by ratings declines. Distribution revenue increased 19.0%, driven by contractual rate increases in the current period and credits accrued at some of our RSNs in the prior year period resulting from the reduced number of games played by professional sports leagues in 2020 due to COVID-19, partially offset by a decline in subscribers at our networks. Other revenue increased 31.1% due to an increase in revenue from our digital properties. Adjusted EBITDA decreased 15.8% to $1.4 billion in the second quarter of 2021, reflecting higher revenue, more than offset by higher operating expenses. The increase in operating expenses was primarily driven by higher programming and production expenses, reflecting higher sports programming costs due to an increase in the number of sporting events compared to the prior year period when sports were postponed due to COVID-19, as well as higher amortization expense related to programming at Peacock. Media results include $122 million of revenue and an Adjusted EBITDA [7] loss of $363 million related to Peacock, compared to $6 million of revenue and an Adjusted EBITDA [7] loss of $117 million in the prior year period.

For the six months ended June 30, 2021, revenue from the Media segment increased 13.5% to $10.2 billion compared to 2020, reflecting higher distribution revenue, advertising revenue and other revenue. Adjusted EBITDA decreased 9.9% to $2.9 billion compared to 2020, reflecting higher operating expenses, which more than offset higher revenue. The increase in operating expenses was primarily driven by higher programming and production expenses, reflecting higher sports programming costs due to an increase in the number of sporting events in the current period, and amortization of content at Peacock. Media results include $213 million of revenue and an Adjusted EBITDA [7] loss of $640 million related to Peacock, compared to $6 million of revenue and an Adjusted EBITDA [7] loss of $176 million in 2020.

Studios Studios revenue increased 8.4% to $2.2 billion in the second quarter of 2021, primarily reflecting higher theatrical revenue. Theatrical revenue increased by $191 million, reflecting the comparison to the higher level of theater closures and theaters operating at reduced capacity due to COVID-19 in the prior year period, and the success of releases in this year’s second quarter, including F9 . Adjusted EBITDA decreased 51.7% to $156 million in the second quarter of 2021, reflecting higher operating expenses, which more than offset higher revenue. The increase in operating expenses was driven by higher programming and production expenses reflecting an increase in television series production and comparisons to the prior year period when production was paused due to COVID-19, as well as higher advertising, marketing and promotion expenses reflecting a higher number of theatrical releases in the current period.

For the six months ended June 30, 2021, revenue from the Studios segment increased 3.6% to $4.6 billion compared to 2020, reflecting higher content licensing revenue, partially offset by lower theatrical revenue and home entertainment and other revenue. Adjusted EBITDA increased 4.8% to $653 million compared to 2020, reflecting higher revenue, partially offset by higher operating expenses.

Theme Parks Theme Parks revenue increased $958 million to $1.1 billion in the second quarter of 2021, reflecting improved operating conditions compared to the prior year period, when each of our theme parks were closed for either the majority or entirety of the period as a result of COVID-19. Theme Parks Adjusted EBITDA was $221 million in the second quarter of 2021, which included pre-opening costs related to Universal Beijing Resort, compared to a $393 million Adjusted EBITDA loss in the prior year period.

For the six months ended June 30, 2021, revenue from the Theme Parks segment increased 61.5% to $1.7 billion compared to 2020, reflecting improved operating conditions compared to 2020, when each of our theme parks were either closed or operating at limited capacity as a result of COVID-19. Theme Parks Adjusted EBITDA was $159 million, which included pre-opening costs related to Universal Beijing Resort, compared to a $306 million Adjusted EBITDA loss in 2020.

Headquarters and Other NBCUniversal Headquarters and Other includes overhead, personnel costs and costs associated with corporate initiatives. Headquarters and Other Adjusted EBITDA loss was $186 million compared to a loss of $82 million in the prior year period.

For the six months ended June 30, 2021, Headquarters and Other Adjusted EBITDA loss was $395 million compared to a loss of $303 million in 2020.

Eliminations Amounts represent eliminations of transactions between our NBCUniversal segments, which are affected by the timing of recognition of content licenses between our Studios and Media segments. Revenue eliminations for the quarter ended June 30, 2021 were $534 million compared to $580 million in the prior year period, and Adjusted EBITDA eliminations were $15 million compared to $104 million in the prior year period.

For the six months ended June 30, 2021, revenue eliminations were $1.6 billion compared to $1.1 billion in 2020, and Adjusted EBITDA eliminations were $225 million compared to $110 million in 2020.

Sky

 
  ($ in millions)                      
    2nd Quarter     Year to Date  
    2021   2020   Change   Constant
Currency
Change8
    2021   2020   Change   Constant
Currency
Change8
 
  Sky Revenue                      
  Direct-to-Consumer $4,222 $3,524 19.9 % 7.7 %     $8,288 $7,203 15.1 % 4.7 %  
  Content 355 234 51.6 % 36.1 %     713 559 27.6 % 16.3 %  
  Advertising 643 321 99.8 % 78.8 %     1,216 834 45.8 % 33.0 %  
  Sky Revenue $5,220 $4,079 28.0 % 14.9 %     $10,217 $8,596 18.9 % 8.2 %  
                         
  Sky Operating Costs and Expenses $4,660 $3,330 40.0 % 25.5 %     $9,294 $7,296 27.4 % 16.0 %  
                         
  Sky Adjusted EBITDA $560 $749 (25.3 %) (32.4 %)     $924 $1,300 (29.0 %) (35.4 %)  
  Adjusted EBITDA Margin 10.7 % 18.4 %         9.0 % 15.1 %      
                         

Revenue for Sky increased 28.0% to $5.2 billion in the second quarter of 2021. Excluding the impact of currency, revenue increased 14.9%, reflecting higher direct-to-consumer revenue, advertising revenue and content revenue. Direct-to-consumer revenue increased 7.7% to $4.2 billion, primarily driven by higher average revenue per customer relationship due to lower sports subscription revenues in the prior year period when sports were postponed due to COVID-19, as well as a rate increase in the U.K. Advertising revenue increased 78.8% to $643 million, reflecting an overall market recovery from COVID-19 as well as an increase in the number of sporting events in the current period. Content revenue increased 36.1% to $355 million, primarily due to higher wholesale revenue from sports programming compared to the prior year period when sports were postponed due to COVID-19.

For the six months ended June 30, 2021, Sky revenue increased 18.9% to $10.2 billion compared to 2020. Excluding the impact of currency, revenue increased 8.2%, reflecting higher direct-to-consumer revenue, advertising revenue and content revenue.

Total Customer Relationships decreased by 248,000 to 23.2 million in the second quarter of 2021. For the six months ended June 30, 2021, total customer relationships decreased by 26,000.

                       
  (in thousands)                    
    Customers   Net Additions / (Losses)  
          2nd Quarter     Year to Date  
    2Q21 2Q209   2021 2020     2021 2020  
  Total Customer Relationships 23,198 23,002   (248) (214)     (26) (278)  
                       

Adjusted EBITDA for Sky decreased 25.3% to $560 million in the second quarter of 2021. Excluding the impact of currency, Adjusted EBITDA decreased 32.4%, reflecting higher operating expenses, which more than offset higher revenue. The increase in operating expenses was primarily driven by higher programming and production expenses, reflecting higher sports programming costs due to an increase in the number of sporting events compared to the prior year period when sports were postponed due to COVID-19.

For the six months ended June 30, 2021, Sky Adjusted EBITDA decreased 29.0% to $924 million compared to 2020. Excluding the impact of currency, Adjusted EBITDA decreased 35.4%.

Corporate, Other and Eliminations

     

Corporate and Other Corporate and Other primarily relates to corporate operations and Comcast Spectacor. Revenue for the quarter ended June 30, 2021 was $92 million compared to $40 million in the prior year period. Corporate and Other Adjusted EBITDA loss was $261 million compared to a loss of $389 million in the prior year period, reflecting certain costs incurred in the second quarter of 2020 in response to COVID-19, including severance charges related to our businesses, which are presented in Corporate and Other.

For the six months ended June 30, 2021, Corporate and Other revenue was $181 million compared to $160 million in 2020. Corporate and Other Adjusted EBITDA loss was $541 million compared to a loss of $582 million in 2020.

Eliminations Amounts represent eliminations of transactions between Cable Communications, NBCUniversal, Sky and other businesses. Eliminations of transactions between NBCUniversal segments are presented separately. Revenue eliminations for the quarter ended June 30, 2021 were $723 million compared to $547 million in the prior year period, and Adjusted EBITDA eliminations were a benefit of $2 million compared to a benefit of $11 million in the prior year period.

For the six months ended June 30, 2021, revenue eliminations were $1.4 billion compared to $1.2 billion in 2020, and Adjusted EBITDA eliminations were a benefit of $11 million compared to $18 million in 2020.

Notes:
1 We define Adjusted Net Income and Adjusted EPS as net income attributable to Comcast Corporation and diluted earnings per common share attributable to Comcast Corporation shareholders, respectively, adjusted to exclude the effects of the amortization of acquisition-related intangible assets, investments that investors may want to evaluate separately (such as based on fair value) and the impact of certain events, gains, losses or other charges that affect period-over-period comparisons. See Table 5 for reconciliations of non-GAAP financial measures.
2 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 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. See Table 4 for reconciliation of non-GAAP financial measure.
3 All earnings per share amounts are presented on a diluted basis.
4 We define Free Cash Flow as 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 related to certain capital or intangible assets, such as the construction of Universal Beijing Resort, are presented separately in our Consolidated Statement of Cash Flows and are therefore excluded from capital expenditures and cash paid for intangible assets for Free Cash Flow. See Table 4 for reconciliation of non-GAAP financial measure.
5 Cable Communications reported results for 2020 include the impacts of RSN related adjustments, affecting period-to-period comparability of our operating performance. We also present adjusted information, excluding the impacts of the RSN related adjustments. See Table 7 for reconciliations of non-GAAP financial measures.
6 In the first quarter of 2021, we updated Cable Communications' total residential customer relationships and broadband customers due to a conforming change to methodology resulting in a reduction of approximately 26,000 customers. There was no impact to net additions and prior periods have been recast on a comparable basis.
7 Adjusted EBITDA is the measure of profit or loss for our segments. From time to time, we may present Adjusted EBITDA for components of our reportable segments, such as Peacock and the wireless business within Cable Communications. We believe these measures are useful to evaluate our financial results and provide a basis of comparison to others, although our definition of Adjusted EBITDA may not be directly comparable to similar measures used by other companies. Adjusted EBITDA for components are generally presented on a consistent basis with the respective segments and include direct revenue and operating costs and expenses attributed to the component operations.
8 Sky constant currency growth rates are calculated by comparing the current period results to the comparative period results in the prior year adjusted to reflect the average exchange rates from the current year period rather than the actual exchange rates in effect during the respective prior year periods. See Table 6 for reconciliation of Sky's constant currency growth.
9 In the first quarter of 2021, we implemented conforming changes in the methodology for counting commercial customer relationships in Italy and Germany, which are now counted on a consistent basis with customers in the United Kingdom. The change resulted in a reduction in Sky’s total customer relationships of 714,000 as of December 31, 2020. The impact of the change in methodology to customer relationship net additions for any period was not material. For comparative purposes, we have recast Sky’s historical total customer relationships to reflect this adjustment.
 
  Numerical information is presented on a rounded basis using actual amounts. Minor differences in total and percentage calculations may exist due to rounding.

Conference Call and Other Information Comcast Corporation will host a conference call with the financial community today, July 29, 2021 at 8:30 a.m. Eastern Time (ET). The conference call and related materials will be broadcast live and posted on our Investor Relations website at www.cmcsa.com . Those parties interested in participating via telephone should dial (833) 618-9487 with the conference ID number 2883365. A replay of the call will be available starting at 12:00 p.m. ET on July 29, 2021, on the Investor Relations website or by telephone. To access the telephone replay, which will be available until Thursday, August 5, 2021 at midnight ET, please dial (855) 859-2056 and enter the conference ID number 2883365.

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 website, www.comcastcorporation.com . 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 includes statements that may constitute forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made, and 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. In evaluating these statements, readers should consider various factors, including the risks and uncertainties we describe in the “Risk Factors” sections of our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q and other reports filed with the Securities and Exchange Commission (SEC). We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise.

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 /zigman2/quotes/209472081/composite CMCSA +0.35% is a global media and technology company that connects people to moments that matter. We are principally focused on broadband, aggregation, and streaming with over 56 million customer relationships across the United States and Europe. We deliver broadband, wireless, and video through our Xfinity, Comcast Business, and Sky brands; create, distribute, and stream leading entertainment, sports, and news through Universal Filmed Entertainment Group, Universal Studio Group, Sky Studios, the NBC and Telemundo broadcast networks, multiple cable networks, Peacock, NBCUniversal News Group, NBC Sports, Sky News, and Sky Sports; and provide memorable experiences at Universal Parks and Resorts in the United States and Asia. 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,
  2021   2020   2021   2020
Revenue $28,546     $23,715     $55,751     $50,324  
               
Costs and expenses              
Programming and production 9,256     6,817     18,175     15,118  
Other operating and administrative 8,549     7,646     16,818     15,900  
Advertising, marketing and promotion 1,851     1,341     3,467     3,279  
Depreciation 2,113     2,099     4,231     4,206  
Amortization 1,270     1,165     2,514     2,322  
  23,039     19,068     45,205     40,825  
               
Operating income 5,507     4,647     10,546     9,499  
               
Interest expense (1,093 )   (1,112 )   (2,112 )   (2,324 )
               
Investment and other income (loss), net              
Equity in net income (losses) of investees, net 959     300     1,095     (368 )
Realized and unrealized gains (losses) on equity securities, net 189     5     426     (53 )
Other income (loss), net 69     115     87     125  
  1,216     420     1,607     (296 )
               
Income before income taxes 5,630     3,955     10,042     6,879  
               
Income tax expense (2,000 )   (946 )   (3,119 )   (1,646 )
               
Net income 3,630     3,009     6,922     5,233  
               
Less: Net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock (108 )   21     (145 )   98  
               
Net income attributable to Comcast Corporation $3,738     $2,988     $7,067     $5,135  
               
               
Diluted earnings per common share attributable to Comcast Corporation shareholders $0.80     $0.65     $1.51     $1.11  
               
Diluted weighted-average number of common shares 4,673     4,607     4,669     4,611  
               
TABLE 2
Consolidated Statement of Cash Flows (Unaudited)
       
  Six Months Ended
(in millions) June 30,
  2021   2020
       
OPERATING ACTIVITIES      
Net income $6,922     $5,233  
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 6,745     6,528  
Share-based compensation 711     621  
Noncash interest expense (income), net 210     352  
Net (gain) loss on investment activity and other (1,403 )   399  
Deferred income taxes 1,297     (84 )
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:      
Current and noncurrent receivables, net 137     900  
Film and television costs, net 837     573  
Accounts payable and accrued expenses related to trade creditors 299     (879 )
Other operating assets and liabilities (398 )   824  
       
Net cash provided by operating activities 15,357     14,467  
       
INVESTING ACTIVITIES      
Capital expenditures (4,003 )   (3,957 )
Cash paid for intangible assets (1,283 )   (1,219 )
Construction of Universal Beijing Resort (704 )   (708 )
Acquisitions, net of cash acquired (168 )   (198 )
Proceeds from sales of businesses and investments 396     2,042  
Purchases of investments (86 )   (471 )
Other 217     33  
       
Net cash provided by (used in) investing activities (5,631 )   (4,478 )
       
FINANCING ACTIVITIES      
Proceeds from borrowings 383     13,612  
Repurchases and repayments of debt (5,785 )   (10,712 )
Repurchases of common stock under repurchase program and employee plans (957 )   (269 )
Dividends paid (2,230 )   (2,028 )
Other (475 )   (2,128 )
       
Net cash provided by (used in) financing activities (9,064 )   (1,525 )
       
Impact of foreign currency on cash, cash equivalents and restricted cash (12 )   (77 )
       
Increase (decrease) in cash, cash equivalents and restricted cash 650     8,387  
       
Cash, cash equivalents and restricted cash, beginning of period 11,768     5,589  
       
Cash, cash equivalents and restricted cash, end of period $12,418     $13,976  
       
TABLE 3
Condensed Consolidated Balance Sheet (Unaudited)
       
(in millions) June 30,   December 31,
  2021   2020
ASSETS      
       
Current Assets      
Cash and cash equivalents $12,378     $11,740  
Receivables, net 11,110     11,466  
Other current assets 3,558     3,535  
Total current assets 27,046     26,741  
       
Film and television costs 12,372     13,340  
       
Investments 8,903     7,820  
       
Investment securing collateralized obligation 564     447  
       
Property and equipment, net 52,769     51,995  
       
Goodwill 70,429     70,669  
       
Franchise rights 59,365     59,365  
       
Other intangible assets, net 34,321     35,389  
       
Other noncurrent assets, net 11,235     8,103  
       
  $277,004     $273,869  
       
LIABILITIES AND EQUITY      
       
Current Liabilities      
Accounts payable and accrued expenses related to trade creditors $11,672     $11,364  
Accrued participations and residuals 1,713     1,706  
Deferred revenue 3,566     2,963  
Accrued expenses and other current liabilities 8,956     9,617  
Current portion of long-term debt 3,407     3,146  
Total current liabilities 29,314     28,796  
       
Long-term debt, less current portion 95,175     100,614  
       
Collateralized obligation 5,169     5,168  
       
Deferred income taxes 29,525     28,051  
       
Other noncurrent liabilities 20,775     18,222  
       
Redeemable noncontrolling interests and redeemable subsidiary preferred stock 530     1,280  
       
Equity      
Comcast Corporation shareholders' equity 94,935     90,323  
Noncontrolling interests 1,581     1,415  
Total equity 96,516     91,738  
       
  $277,004     $273,869  
 
TABLE 4
Reconciliation from Net Income Attributable to Comcast Corporation to Adjusted EBITDA
(Unaudited)                
 
Three Months Ended Six Months Ended
June 30, June 30,
(in millions) 2021   2020     2021   2020
Net income attributable to Comcast Corporation $3,738     $2,988       $7,067     $5,135  
Net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock (108 )   21       (145 )   98  
Income tax expense 2,000     946       3,119     1,646  
Interest expense 1,093     1,112       2,112     2,324  
Investment and other (income) loss, net (1,216 )   (420 )     (1,607 )   296  
Depreciation and amortization 3,383     3,264       6,745     6,528  
Adjustments [(1)] 36     16       48     30  
Adjusted EBITDA $8,927     $7,927       $17,339     $16,057  
Reconciliation from Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited)
                 
  Three Months Ended     Six Months Ended
  June 30,     June 30,
(in millions) 2021   2020     2021   2020
Net cash provided by operating activities $7,606     $8,643       $15,357     $14,467  
Capital expenditures (2,144 )   (2,076 )     (4,003 )   (3,957 )
Cash paid for capitalized software and other intangible assets (671 )   (601 )     (1,283 )   (1,219 )
Free Cash Flow $4,791     $5,966       $10,071     $9,291  
                 
Alternate Presentation of Free Cash Flow (Unaudited)
                 
  Three Months Ended June 30,     Six Months Ended June 30,
     
(in millions) 2021   2020     2021   2020
Adjusted EBITDA $8,927     $7,927       $17,339     $16,057  
Capital expenditures (2,144 )   (2,076 )     (4,003 )   (3,957 )
Cash paid for capitalized software and other intangible assets (671 )   (601 )     (1,283 )   (1,219 )
Cash interest expense (998 )   (945 )     (1,909 )   (1,936 )
Cash taxes (1,745 )   (52 )     (1,832 )   (333 )
Changes in operating assets and liabilities 1,068     1,378       892     (15 )
Noncash share-based compensation 338     323       711     621  
Other [(2)] 17     12       156     73  
Free Cash Flow $4,791     $5,966       $10,071     $9,291  
(1) 2nd quarter and year to date 2021 Adjusted EBITDA exclude $36 million and $48 million of other operating and administrative expense, respectively, related to the Sky transaction and costs related to our investment portfolio. 2nd quarter and year to date 2020 Adjusted EBITDA exclude $16 million and $30 million of other operating and administrative expense, respectively, related to the Sky transaction.
 
(2) 2nd quarter and year to date 2021 include decreases of $36 million and $48 million, respectively, related to costs that are excluded from Adjusted EBITDA. 2nd quarter and year to date 2020 include decreases of $16 million and $30 million, respectively, related to costs that are excluded from Adjusted EBITDA.
                       
TABLE 5                      
Reconciliations of Adjusted Net Income and Adjusted EPS (Unaudited)  
         
  Three Months Ended     Six Months Ended
     
  2021   2020     2021   2020
(in millions, except per share data)                                
  $   EPS   $   EPS     $   EPS   $   EPS
                                 
Net income attributable to Comcast Corporation and diluted earnings per share attributable to Comcast Corporation shareholders $3,738   $0.80   $2,988   $0.65     $7,067   $1.51   $5,135   $1.11
Change 25.1%   23.1%             37.6%   36.0%        
                                 
Amortization of acquisition-related intangible assets [(1)] 472   0.10   449   0.10     949   0.21   907   0.20
Investments [(2)] (835)   (0.18)   (280)   (0.06)     (1,122)   (0.24)   264   0.06
Items affecting period-over-period comparability:                                
Loss on early redemption of debt [(4)] 59   0.01         59   0.01   106   0.02
Income tax adjustments [(3)] 498   0.11         498   0.11    
Costs related to Sky transaction [(5)] 11     13       21     24   0.01
                                 
Adjusted Net income and Adjusted EPS $3,943   $0.84   $3,170   $0.69     $7,472   $1.60   $6,436   $1.40
Change 24.3%   21.7%             16.1%   14.3%        
(1)   Acquisition-related intangible assets are recognized as a result of the application of Accounting Standards Codification Topic 805, Business Combinations (such as customer relationships), and their amortization is significantly affected by the size and timing of our acquisitions. Amortization of intangible assets not resulting from business combinations (such as software and acquired intellectual property rights used in our theme parks) is included in Adjusted Net Income and Adjusted EPS.
  Three Months Ended
June 30,
    Six Months Ended
June 30,
  2021   2020     2021   2020
Amortization of acquisition-related intangible assets before income taxes $586   $565     $1,178   $1,140
Amortization of acquisition-related intangible assets, net of tax $472   $449     $949   $907
(2)   Adjustments for 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 of investees, net, for certain equity method investments, including Atairos and Hulu.
  Three Months Ended
June 30,
    Six Months Ended
June 30,
  2021   2020     2021   2020
Realized and unrealized (gains) losses on equity securities, net ($189)   ($5)     ($426)   $53
Equity in net (income) losses of investees, net (917)   (367)     (1,050)   296
Investments before income taxes (1,106)   (372)     (1,476)   349
Investments, net of tax ($835)   ($280)     ($1,122)   $264
 
(3) 2nd quarter and year to date 2021 net income attributable to Comcast Corporation includes $498 million of income tax expense adjustments related to UK tax law changes.
 
(4) 2021 year to date net income attributable to Comcast Corporation includes $78 million of interest expense, $59 million net of tax, resulting from the early redemption of debt. 2020 year to date net income attributable to Comcast Corporation includes $140 million of interest expense, $106 million net of tax, resulting from the early redemption of debt.
 
(5) 2nd quarter and year to date 2021 net income attributable to Comcast Corporation includes $13 million and $25 million of operating costs and expenses, $11 million and $21 million net of tax, respectively, related to the Sky transaction. 2nd quarter and year to date 2020 net income attributable to Comcast Corporation includes $16 million and $30 million of operating costs and expenses, $13 million and $24 million net of tax, respectively, related to the Sky transaction.
 
TABLE 6
Reconciliation of Sky Constant Currency Growth (Unaudited)
                         
  Three Months Ended     Six Months Ended
     
(in millions) 2021   2020 [(1)]   Change     2021   2020 [(1)]   Change
                         
Direct-to-Consumer $4,222     $3,921     7.7 %     $8,288     $7,914     4.7 %
Content 355     261     36.1 %     713     613     16.3 %
Advertising 643     359     78.8 %     1,216     914     33.0 %
Revenue $5,220     $4,541     14.9 %     $10,217     $9,441     8.2 %
                         
Operating costs and expenses $4,660     $3,714     25.5 %     $9,294     $8,012     16.0 %
                         
Adjusted EBITDA $560     $828     (32.4 %)     $924     $1,429     (35.4 %)
(1) 2020 results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the current period rather than the actual exchange rates in effect during the respective periods.
 
TABLE 7
Reconciliation of Cable Communications RSN Adjustments (Unaudited)
                           
    Three Months Ended     Six Months Ended
       
 
  Reported   2020 RSN   Adjusted     Reported   2020 RSN   Adjusted
Revenue                        
  Broadband 14.3%   1.8%   12.6%     13.2%   0.9%   12.3%
  Video 2.6%   2.1%   0.5%     1.2%   1.0%   0.2%
Total Revenue 10.9%   1.6%   9.3%     8.4%   0.8%   7.6%
                         
Expenses                        
Programming and production 12.1%   7.1%   5.0%     8.7%   3.4%   5.3%
                         
Adjusted EBITDA 14.5%     14.5%     13.5%     13.5%
Adjusted EBITDA margin 140 bps   (60 bps)   200 bps     200 bps   (30 bps)   230 bps
Note: Percentages represent year/year growth rates. Adjusted EBITDA margin as a percent of Revenue is presented as year/year basis point changes.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210729005531/en/

SOURCE: Comcast Corporation

Investor Contacts:
Marci Ryvicker, (215) 286-4781
Jane Kearns, (215) 286-4794
Marc Kaplan, (215) 286-6527

Press Contacts:
Jennifer Khoury, (215) 286-7408
John Demming, (215) 286-8011

COMTEX_390602021/2456/2021-07-29T07:00:35

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/zigman2/quotes/209472081/composite
US : U.S.: Nasdaq
$ 54.22
+0.19 +0.35%
Volume: 14.91M
Oct. 22, 2021 4:00p
P/E Ratio
20.25
Dividend Yield
1.84%
Market Cap
$247.98 billion
Rev. per Employee
$616,452
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/zigman2/quotes/209472081/composite
US : U.S.: Nasdaq
$ 54.22
+0.19 +0.35%
Volume: 14.91M
Oct. 22, 2021 4:00p
P/E Ratio
20.25
Dividend Yield
1.84%
Market Cap
$247.98 billion
Rev. per Employee
$616,452
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