PHILADELPHIA--(BUSINESS WIRE)--Oct. 24, 2019-- Comcast Corporation (NASDAQ: CMCSA) today reported results for the quarter ended September 30, 2019, including Cable Communications, NBCUniversal and Sky.

Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, “We delivered excellent results in the third quarter, surpassing 55 million customer relationships and generating strong pro forma growth in adjusted EBITDA and double-digit growth in adjusted EPS. We continued our long track record of highly-profitable growth, while also investing in our businesses to further strengthen our leading competitive position. Cable had its highest third quarter broadband net additions in 10 years, which drove its best quarterly net additions in total customer relationships on record; NBC ranked #1 in primetime for the sixth consecutive 52-week season; and Sky’s channels had a 10% increase in household viewership. These and our many other accomplishments during the quarter underscore our strategic focus on innovation and providing our customers with superior products, services and experiences. Together, with our leading scale in high-value customer relationships and premium content, we are strategically positioned to thrive in our evolving global industry."

Consolidated 3rd Quarter 2019 Highlights:

• Consolidated Adjusted EBITDA Increased 17.0%
• Earnings per Share Increased 16.2% to $0.79, on an Adjusted Basis
• Generated Free Cash Flow of $2.1 Billion

Cable Communications 3rd Quarter 2019 Highlights:

• Cable Communications Adjusted EBITDA Increased 6.7% and Adjusted EBITDA per Customer Relationship Increased 3.2%
• Total Customer Relationships Increased 3.4% Year-Over-Year to 31.2 Million, Including Net Additions of 309,000 in the Quarter
• High-Speed Internet Residential Revenue Increased 9.3%; Business Services Revenue Increased 9.3%; Total High-Speed Internet Customers Increased by 379,000

NBCUniversal 3rd Quarter 2019 Highlights:

• NBCUniversal Adjusted EBITDA Increased 1.6%, Despite Expected Difficult Studio Comparisons at TV and Film
• Broadcast Television Adjusted EBITDA Increased 5.1%
• NBC Ranked #1 in Primetime Among Adults 18-49 for the 2018-2019 Season for the Sixth Consecutive Year

Sky 3rd Quarter 2019 Highlights:

• Sky Adjusted EBITDA Increased 38.3% on a Pro Forma Basis; Excluding the Impact of Currency, Adjusted EBITDA Increased 46.0% on a Pro Forma Basis
• Total Customer Relationships Increased 2.1% Year-Over-Year to 23.9 Million, With Net Additions of 482,000 in the Last Twelve Months

   

Consolidated Financial Results

The comparability of our consolidated results was impacted by the fourth quarter 2018 Sky transaction. Sky’s results of operations are included in our consolidated financial statements following the acquisition date.

Consolidated Revenue for the third quarter of 2019 increased 21.2% to $26.8 billion. Consolidated Net Income Attributable to Comcast increased 11.5% to $3.2 billion. Consolidated Adjusted EBITDA increased 17.0% to $8.6 billion.

For the nine months ended September 30, 2019, consolidated revenue increased 20.8% to $80.5 billion compared to 2018. Consolidated net income attributable to Comcast increased 7.3% to $9.9 billion. Consolidated Adjusted EBITDA increased 17.5% to $25.8 billion.

Earnings per Share (EPS) for the third quarter of 2019 was $0.70, an increase of 12.9% compared to the third quarter of 2018. On an adjusted basis, EPS increased 16.2% to $0.79 (see Table 5).

For the nine months ended September 30, 2019, EPS was $2.15, a 8.6% increase compared to the prior year. On an adjusted basis, EPS increased 15.3% to $2.33 (see Table 5).

Capital Expenditures increased 5.3% to $2.5 billion in the third quarter of 2019. Cable Communications’ capital expenditures decreased 6.7% to $1.8 billion. NBCUniversal’s capital expenditures increased 24.7% to $505 million. Sky had capital expenditures of $104 million.

For the nine months ended September 30, 2019, capital expenditures increased 3.9% to $6.9 billion compared to 2018. Cable Communications' capital expenditures decreased 11.7% to $4.8 billion. NBCUniversal's capital expenditures increased 26.1% to $1.4 billion. Sky had capital expenditures of $540 million.

Net Cash Provided by Operating Activities was $5.2 billion in the third quarter of 2019. Free Cash Flow was $2.1 billion (see Table 4).

For the nine months ended September 30, 2019, net cash provided by operating activities was $19.5 billion. Free cash flow was $10.9 billion (see Table 4).

Dividends paid during the third quarter of 2019 totaled $955 million.

Consolidated Pro Forma Financial Results

Pro forma results are presented as if the Sky transaction occurred on January 1, 2017. The pro forma amounts are based on historical results of operations and are primarily adjusted for the allocation of purchase price and excluding costs directly related to the transaction. These amounts are not necessarily indicative of what our results would have been had we operated Sky since January 1, 2017 (see Table 7 for reconciliations of pro forma financial data).

Consolidated Pro Forma Revenue for the third quarter of 2019 was consistent with the prior year period at $26.8 billion. Consolidated Pro Forma Adjusted EBITDA increased 7.4% to $8.6 billion.

For the nine months ended September 30, 2019, consolidated pro forma revenue decreased 0.9% to $80.5 billion compared to 2018. Consolidated Pro Forma Adjusted EBITDA increased 7.2% to $25.8 billion.

Cable Communications

Revenue for Cable Communications increased 4.0% to $14.6 billion in the third quarter of 2019, driven primarily by increases in high-speed internet, business services and wireless 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 9.3%, due to increases in the number of customers receiving our services and rate adjustments. Wireless revenue increased 38.1%, reflecting an increase in the number of customer lines. Other revenue increased 13.4%, driven by the timing of X1 licensing revenue and higher security and automation services revenue. Advertising revenue decreased 11.9%, primarily reflecting a decrease in political advertising revenue. Excluding political advertising revenue, advertising revenue increased 1.2%. Video revenue decreased 0.9%, reflecting a decrease in the number of residential video customers, partially offset by rate adjustments. Voice revenue decreased 1.9%, primarily due to a decrease in the number of residential voice customers.

For the nine months ended September 30, 2019, Cable revenue increased 4.0% to $43.3 billion compared to 2018, driven by growth in high-speed internet, business services, wireless and other revenue, partially offset by a decrease in advertising, video and voice revenue.

Total Customer Relationships increased by 309,000 to 31.2 million in the third quarter of 2019. Residential customer relationships increased by 288,000 and business customer relationships increased by 21,000. At the end of the third quarter, 65.6% of our residential customers received at least two Xfinity products. Total high-speed internet customer net additions were 379,000, total video customer net losses were 238,000, total voice customer net losses were 53,000 and total security and automation customer net additions were 8,000. In addition, Cable Communications added 204,000 wireless lines in the quarter.

Adjusted EBITDA for Cable Communications increased 6.7% to $5.8 billion in the third quarter of 2019, reflecting higher revenue, partially offset by a 2.3% increase in operating expenses. Non-programming expenses increased 3.6%, primarily reflecting higher technical and product support expenses. Non-programming expenses per customer relationship was consistent with the prior year period. Programming costs were consistent with the prior year period due to the timing of programming contract renewals and video subscriber declines. This quarter's Adjusted EBITDA per customer relationship increased 3.2%, and Adjusted EBITDA margin was 39.8% compared to 38.8% in the third quarter of 2018. Cable Communications results include a loss of $94 million from our wireless business, compared to a loss of $178 million in the prior period.

For the nine months ended September 30, 2019, Cable Adjusted EBITDA increased 8.0% to $17.4 billion compared to 2018, driven by higher revenue, partially offset by a 1.5% increase in operating expenses. The higher expenses were due to a 1.5% increase in non-programming expenses and a 1.6% increase in programming costs. For the nine months ended September 30, 2019, Adjusted EBITDA per customer relationship increased 4.3%, and Adjusted EBITDA margin was 40.1% compared to 38.7% in 2018. Cable Communications results include a loss of $285 million from our wireless business, compared to a loss of $552 million in the prior period.

Capital Expenditures for Cable Communications decreased 6.7% to $1.8 billion in the third quarter of 2019. Cable capital expenditures represented 12.4% of Cable revenue in the third quarter of 2019 compared to 13.9% in last year's third quarter.

For the nine months ended September 30, 2019, Cable capital expenditures decreased 11.7% to $4.8 billion. Cable capital expenditures represented 11.0% of Cable revenue compared to 13.0% in 2018.

NBCUniversal

Revenue for NBCUniversal decreased 3.5% to $8.3 billion in the third quarter of 2019. Adjusted EBITDA increased 1.6% to $2.1 billion.

For the nine months ended September 30, 2019, NBCUniversal revenue decreased 5.9% to $24.8 billion compared to last year's results, which included an incremental $1.6 billion of revenue generated by the broadcasts of the 2018 PyeongChang Olympics and the NFL's Super Bowl LII at our TV Businesses. Adjusted EBITDA increased 4.2% to $6.8 billion.

Cable Networks

Cable Networks revenue decreased 2.8% to $2.8 billion in the third quarter of 2019, reflecting lower content licensing and other revenue, partially offset by higher distribution revenue. Content licensing and other revenue declined 27.2%, due to the timing of content provided under licensing agreements. Distribution revenue increased 1.6%, primarily due to contractual rate increases and the timing of contract renewals, partially offset by a decline in subscribers. Advertising revenue was consistent with the prior year period, reflecting higher rates, offset by audience ratings declines. Adjusted EBITDA of $955 million in the third quarter of 2019 was consistent with the prior year period, as lower revenue was offset by a decrease in programming and production costs.

For the nine months ended September 30, 2019, revenue from the Cable Networks segment decreased 3.3% to $8.6 billion compared to 2018, reflecting lower content licensing and other, advertising and distribution 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 1.0% (see Table 6). Adjusted EBITDA increased 0.9% to $3.4 billion compared to 2018, reflecting lower revenue, offset by a decrease in operating costs and expenses, including programming and production costs, due to the broadcast of the 2018 PyeongChang Olympics in the first quarter of 2018.

Broadcast Television

Broadcast Television revenue decreased 9.1% to $2.2 billion in the third quarter of 2019, reflecting a decrease in advertising and content licensing revenue, partially offset by increased distribution and other revenue. Advertising revenue decreased 12.1%, primarily due to the absence of revenue generated by Telemundo's broadcast of the 2018 FIFA World Cup Russia^TM. Content licensing revenue decreased 17.0%, reflecting the timing of content provided under licensing agreements. Distribution and other revenue increased 5.8%, primarily due to higher retransmission consent fees. Adjusted EBITDA increased 5.1% to $338 million in the third quarter of 2019, reflecting lower revenue more than offset by a decrease in programming and production costs, primarily due to Telemundo's broadcast of the 2018 FIFA World Cup Russia^TM.

For the nine months ended September 30, 2019, revenue from the Broadcast Television segment decreased 14.9% to $7.1 billion compared to 2018, primarily reflecting a decrease in advertising 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 the NFL's Super Bowl LII in the first quarter of 2018, Broadcast Television revenue decreased 0.7% compared to 2018 (see Table 6). Adjusted EBITDA increased 1.1% to $1.3 billion compared to 2018, with lower revenue more than offset by a decrease in programming and production costs, primarily due to decreased sports programming costs associated with the broadcasts of the 2018 PyeongChang Olympics and the NFL's Super Bowl LII in the first quarter of 2018.

Filmed Entertainment

Filmed Entertainment revenue decreased 6.2% to $1.7 billion in the third quarter of 2019, reflecting lower home entertainment and theatrical revenue. Home entertainment revenue decreased 28.5%, reflecting the success of Jurassic World: Fallen Kingdom in last year's third quarter, partially offset by the performance of The Secret Life of Pets 2 in this year's third quarter. Theatrical revenue decreased 8.8%, reflecting the volume and strength of releases in last year's third quarter, including Jurassic World: Fallen Kingdom and Mamma Mia! Here We Go Again, partially offset by the performance of Fast & Furious Presents: Hobbs & Shaw in this year's third quarter. Adjusted EBITDA decreased 8.7% to $195 million in the third quarter of 2019, reflecting lower revenue, partially offset by lower programming and production costs.

For the nine months ended September 30, 2019, revenue from the Filmed Entertainment segment decreased 4.7% to $4.9 billion compared to 2018, primarily reflecting lower theatrical revenue, partially offset by higher content licensing revenue. Adjusted EBITDA increased 33.7% to $742 million compared to 2018, reflecting lower revenue more than offset by lower programming and production costs.

Theme Parks

Theme Parks revenue increased 6.8% to $1.6 billion in the third quarter of 2019, primarily reflecting higher attendance due, in part, to severe weather and natural disasters that negatively impacted attendance in Japan in the third quarter of 2018. Adjusted EBITDA increased 0.9% to $731 million in the third quarter of 2019, reflecting an increase in revenue, partially offset by higher operating expenses.

For the nine months ended September 30, 2019, revenue from the Theme Parks segment increased 4.8% to $4.4 billion compared to 2018, primarily due to increases in attendance. Adjusted EBITDA increased 1.7% to $1.8 billion compared to 2018, reflecting an increase in revenue, partially offset by higher operating expenses.

Headquarters, Other and Eliminations

NBCUniversal Headquarters, Other and Eliminations include overhead and eliminations among the NBCUniversal businesses. For the quarter ended September 30, 2019, NBCUniversal Headquarters, Other and Eliminations Adjusted EBITDA loss was $128 million, compared to a loss of $162 million in the third quarter of 2018, due to the timing of expenses with prior quarters.

For the nine months ended September 30, 2019, NBCUniversal Headquarters, Other and Eliminations adjusted EBITDA loss was $486 million compared to a loss of $500 million in 2018.

Sky

Pro forma results are presented as if the Sky transaction occurred on January 1, 2017. The pro forma amounts are based on historical results of operations and are primarily adjusted for the allocation of purchase price and excluding costs directly related to the transaction. These amounts are not necessarily indicative of what our results would have been had we operated Sky since January 1, 2017, (see Table 7 for reconciliations of pro forma financial data).

Pro Forma Revenue for Sky decreased 4.2% to $4.6 billion in the third quarter of 2019. Excluding the impact of currency, revenue increased 0.9%, driven by higher direct-to-consumer and content revenue, partially offset by lower advertising revenue. Direct-to-consumer revenue increased 1.9% to $3.8 billion, driven by an increase in customer relationships, partially offset by a decrease in average revenue per customer relationship. Content revenue increased 15.4% to $315 million, reflecting monetization of our slate of original programming and the wholesaling of sports programming. Advertising revenue decreased 13.8% to $446 million, reflecting an unfavorable impact from a change in legislation related to gambling advertisements in the UK and Italy, as well as overall market weakness.

For the nine months ended September 30, 2019, pro forma Sky revenue decreased 4.1% to $14.2 billion compared to 2018. Excluding the impact of currency, revenue increased 1.8%, reflecting growth in content and direct-to-consumer revenue, partially offset by lower advertising revenue.

Pro Forma Total Customer Relationships decreased by 99,000 to 23.9 million in the third quarter of 2019. For the nine months ended September 30, 2019, total customer relationships increased by 317,000.

Pro Forma Adjusted EBITDA for Sky increased 38.3% to $899 million in the third quarter of 2019. Excluding the impact of currency, Adjusted EBITDA increased 46.0%, reflecting higher revenue and lower operating expenses.

For the nine months ended September 30, 2019, pro forma Sky Adjusted EBITDA increased 9.6% to $2.3 billion compared to 2018. Excluding the impact of currency, Adjusted EBITDA increased 16.7%.

Corporate, Other and Eliminations

Corporate, Other and Eliminations primarily relate to corporate operations and Comcast Spectacor, as well as eliminations among Comcast's businesses. For the quarter ended September 30, 2019, the Corporate, Other and Eliminations Adjusted EBITDA⁶ loss was $238 million, an increase of $60 million compared to 2018, primarily driven by start up costs associated with Peacock and increased intercompany eliminations.

For the nine months ended September 30, 2019, the Corporate, Other and Eliminations Adjusted EBITDA⁶ loss was $647 million, an increase of $43 million compared to 2018.

Conference Call and Other Information

Comcast Corporation will host a conference call with the financial community today, October 24, 2019 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 8088543. A replay of the call will be available starting at 12:00 p.m. ET on October 24, 2019, on the Investor Relations website or by telephone. To access the telephone replay, which will be available until Thursday, October 31, 2019 at midnight ET, please dial (855) 859-2056 and enter the conference ID number 8088543.

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 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 three primary businesses: Comcast Cable, NBCUniversal, and Sky. Comcast Cable is one of the United States’ largest high-speed internet, video, 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 is global and 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. Sky is one of Europe's leading media and entertainment companies, connecting customers to a broad range of video content through its pay television services. It also provides communications services, including residential high-speed internet, phone, and wireless services. Sky operates the Sky News broadcast network and sports and entertainment networks, produces original content, and has exclusive content rights.

Visit www.comcastcorporation.com for more information.