Comcast Reports 1st Quarter 2017 Results
Consolidated 1st Quarter 2017 Highlights:
- Consolidated Revenue Increased 8.9%; Net Income Attributable to Comcast Increased 20.2%; Adjusted EBITDA (formerly Operating Cash Flow) Increased 10.4%
- Net Cash Provided by Operating Activities was $5.7 Billion; Free Cash Flow was $3.1 Billion
- Earnings per Share Increased 23.3% to $0.53; On an Adjusted Basis, Earnings per Share Increased 26.2%
- Dividends Paid Totaled $657 Million and Share Repurchases were $750 Million
Cable Communications (CCMTF) 1st Quarter 2017 Highlights:
- Cable Communications Revenue Increased 5.8% and Adjusted EBITDA Increased 6.3%
- Customer Relationships Increased by 297,000, a 9.9% Increase from the First Quarter of 2016
- Total Revenue per Customer Relationship Increased 2.6%
- Video Customers Increased by 42,000; Over 50% of Residential Video Customers Now Have X1
- High-Speed Internet Customers Increased by 429,000 and Residential Revenue Increased 10.1%
- Business Services Revenue Increased 13.6%, Nearly $6.0 Billion in Annualized Revenue
NBCUniversal 1st Quarter 2017 Highlights:
- NBCUniversal Revenue Increased 14.7% and Adjusted EBITDA Increased 24.4%
- Filmed Entertainment Revenue Increased 43.2% and Adjusted EBITDA Increased Over $200 Million or 120.6%, Driven by Strong Box Office Performance
- Cable Networks and Broadcast Television Adjusted EBITDA Increased 16.8% and 13.4%, Respectively, Driven by Increases in Affiliate and Retransmission Revenues
- NBC Remains Ranked #1 Among Adults 18-49
- Theme Parks Revenue Increased 9.0% and Adjusted EBITDA Increased 6.1%
BUZ INVESTORS PRESS RELEASE Comcast earnings Comcast Corporation (CMCSA) today reported results for the quarter ended March 31, 2017.
Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, “2017 is off to the fastest start in five years. We are reporting outstanding growth at Cable and particularly NBCUniversal, which delivered 14.7% revenue growth and 24.4% Adjusted EBITDA growth. These impressive results were fueled by exceptionally strong film performance, increased affiliate and retransmission revenues at our TV businesses, and continued growth in Theme Parks. Cable operations had a terrific quarter, driven by strength in high-speed Internet (HHH) and business services revenue growth, as well as positive video, all highlighted by overall customer relationship net additions of 297,000, a 10% increase compared to last year. These results were balanced with financial discipline, which contributed to solid revenue and Adjusted EBITDA growth. The transition from Neil Smit to Dave Watson has gotten off to a very successful and seamless start, and with our teams executing well across all of Comcast NBCUniversal, I am excited about our momentum headed into the rest of 2017 and beyond.”
|Consolidated Financial Results|
|($ in millions)||2016||2017||Growth|
|Net Income Attributable to Comcast||$||2,134||$||2,566||20.2||%|
|Earnings per Share2||$||0.43||$||0.53||23.3||%|
|Excluding Adjustments (see Table 5)||$||0.42||$||0.53||26.2||%|
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 first quarter of 2017 increased 8.9% to $20.5 billion. Consolidated Net Income Attributable to Comcast increased 20.2% to $2.6 billion. Consolidated Adjusted EBITDA (formerly Operating Cash Flow) increased 10.4% to $7.0 billion.
Earnings per Share (EPS) for the first quarter of 2017 was $0.53, a 23.3% increase compared to the first quarter of 2016. Excluding a gain on the sale of an investment in the first quarter of 2016, EPS increased 26.2% (see Table 5).
Capital Expenditures increased 10.2% to $2.1 billion in the first quarter of 2017. Cable Communications’ capital expenditures increased 13.0% to $1.8 billion in the first quarter of 2017, reflecting increased spending on customer premise equipment related to the deployment of the X1 platform and wireless gateways, a higher level of investment in scalable infrastructure to increase network capacity and increased investment in line extensions. Cable capital expenditures represented 13.8% of Cable revenue in the first quarter of 2017 compared to 12.9% in last year’s first quarter. NBCUniversal’s capital expenditures of $285 million decreased 3.3%.
Net Cash Provided by Operating Activities was $5.7 billion in the first quarter of 2017. Free Cash Flow3 was $3.1 billion (see Table 4).
Dividends and Share Repurchases. During the first quarter of 2017, Comcast paid dividends totaling $657 million and repurchased 20.4 million of its common shares for $750 million. As of March 31, 2017, Comcast had $11.25 billion available under its share repurchase authorization.
|($ in millions)||2016(4)||2017||Growth|
|Cable Communications Revenue|
|Cable Communications Revenue||$12,204||$12,912||5.8%|
|Cable Communications Adjusted EBITDA||$4,889||$5,198||6.3%|
|Adjusted EBITDA Margin||40.1%||40.3%|
|Cable Communications Capital Expenditures||$1,576||$1,781||13.0%|
|Percent of Cable Communications Revenue||12.9%||13.8%|
Revenue for Cable Communications increased 5.8% to $12.9 billion in the first quarter of 2017, driven primarily by increases in high-speed Internet, video and business services revenue. High-speed Internet revenue increased 10.1%, driven by an increase in the number of residential high-speed Internet customers and rate adjustments. Video revenue increased 4.3%, reflecting rate adjustments, an increase in the number of customers subscribing to additional services and an increase in the number of residential video customers. Business services revenue increased 13.6%, primarily due to an increase in the number of small business customers, as well as continued growth in our medium-sized business services. Advertising revenue decreased 6.3%, partially reflecting a decrease in political advertising revenue. Other revenue increased 4.4%, primarily reflecting an increase in security and automation revenue and higher franchise and regulatory fees.
Total Customer Relationships increased by 297,000 to 28.9 million in the first quarter of 2017. Residential customer relationships increased by 263,000, primarily driven by increases in double and single product customers. Business customer relationships increased by 34,000. At the end of the first quarter, penetration of our double, triple and quad product residential customers increased to 70.7%. Total video customer net additions were 42,000, total high-speed Internet customer net additions were 429,000, total voice customer net losses were 5,000 and total security and automation customer net additions were 66,000.
|Residential Video Customers||21,422||21,520||37||32|
|Business Services Video Customers||978||1,030||16||10|
|Total Video Customers||22,400||22,549||53||42|
|Residential High-Speed Internet Customers||22,013||23,224||403||397|
|Business Services High-Speed Internet Customers||1,754||1,907||35||32|
|Total High-Speed Internet Customers||23,767||25,131||438||429|
|Residential Voice Customers||10,516||10,520||80||(27||)|
|Business Services Voice Customers||1,061||1,162||22||22|
|Total Voice Customers||11,577||11,681||102||(5||)|
|Total Security and Automation Customers||668||957||56||66|
|Residential Customer Relationships||26,065||26,797||237||263|
|Business Services Customer Relationships||1,921||2,078||34||34|
|Total Customer Relationships||27,986||28,875||271||297|
|Single Product Residential Customers||7,681||7,861||34||104|
|Double Product Residential Customers||8,572||8,938||94||141|
|Triple and Quad Product Residential Customers||9,812||9,998||109||18|
Residential video and high-speed Internet customers as of March 31, 2017 include prepaid customers totaling 2,000 and 21,000, respectively
Adjusted EBITDA for Cable Communications increased 6.3% to $5.2 billion in the first quarter of 2017, reflecting higher revenue, partially offset by a 5.5% increase in operating expenses. The higher expenses were primarily due to an 11.7% increase in video programming costs, reflecting the timing of contract renewals, as well as higher retransmission consent fees and sports programming costs. Non-programming expenses increased 1.4%, reflecting an increase in technical and product support expenses and advertising, marketing and promotion costs, partially offset by a decrease in customer service expenses. Technical and product support expenses increased 2.8% related to the development, delivery and support of our X1 platform, cloud DVR technology and wireless gateways, and the continued growth in business services and security and automation services. Advertising, marketing and promotion costs increased 2.8%, primarily due to an increase in spending associated with attracting new customers. Customer service expenses decreased 1.1%, reflecting reduced call volumes. This quarter’s Adjusted EBITDA margin was 40.3% compared to 40.1% in the first quarter of 2016.
|($ in millions)||2016||2017||Growth|
|Headquarters, Other and Eliminations||(85||)||(80||)||NM|
|NBCUniversal Adjusted EBITDA|
|Headquarters, Other and Eliminations||(160||)||(186||)||NM|
|NBCUniversal Adjusted EBITDA||$1,622||$2,017||24.4||%|
|NM=comparison not meaningful.|
Revenue for NBCUniversal increased 14.7% to $7.9 billion in the first quarter of 2017. Adjusted EBITDA increased 24.4% to $2.0 billion, reflecting increases at Filmed Entertainment, Cable Networks, Broadcast Television and Theme Parks.
Cable Networks revenue increased 7.6% to $2.6 billion in the first quarter of 2017, reflecting higher distribution and content licensing and other revenue, partially offset by lower advertising revenue. Distribution revenue increased 8.6%, driven by contractual rate increases and contract renewals, partially offset by a decline in subscribers at our cable networks. Content licensing and other revenue increased 54.0%, reflecting a new licensing agreement, as well as the timing of content provided under current licensing agreements. Advertising revenue decreased 2.9%, due to audience ratings declines, partially offset by higher rates. Adjusted EBITDA increased 16.8% to $1.1 billion in the first quarter of 2017, reflecting higher revenue, partially offset by a modest increase in programming and production costs.
Broadcast Television revenue increased 5.9% to $2.2 billion in the first quarter of 2017, reflecting higher distribution and other and content licensing revenue. Distribution and other revenue increased 33.4%, due to higher retransmission consent fees. Content licensing revenue increased 2.6%, reflecting the timing of content provided under licensing agreements. Advertising revenue increased 0.3%, reflecting higher rates, offset by audience ratings declines and lower volume. Adjusted EBITDA increased 13.4% to $322 million in the first quarter of 2017, reflecting higher revenue, partially offset by an increase in programming and production costs.
Filmed Entertainment revenue increased 43.2% to $2.0 billion in the first quarter of 2017, primarily reflecting higher theatrical revenue, as well as increased other, content licensing, and home entertainment revenue. Theatrical revenue increased by $415 million to $651 million, reflecting the strong performances of Fifty Shades Darker, Get Out and Split, as well as the continued success of Sing in this year’s first quarter. Other revenue and content licensing revenue increased 35.9% and 12.1%, respectively, primarily due to the inclusion of DreamWorks (DWA) in the current year period. Adjusted EBITDA increased by $201 million to $368 million in the first quarter of 2017, reflecting higher revenue, partially offset by higher programming and production costs.
Theme Parks revenue increased 9.0% to $1.1 billion in the first quarter of 2017, reflecting higher attendance and per capita spending, despite an unfavorable comparison from the timing of spring break vacations. Adjusted EBITDA increased 6.1% to $397 million in the first quarter of 2017, reflecting higher revenue, partially offset by an increase in operating expenses, including pre-opening costs to support new attractions opening in Orlando this spring.
Headquarters, Other and Eliminations
NBCUniversal Headquarters, Other and Eliminations include overhead and eliminations among the NBCUniversal businesses. For the quarter ended March 31, 2017, NBCUniversal Headquarters, Other and Eliminations Adjusted EBITDA loss was $186 million compared to a loss of $160 million in the first quarter of 2016.
Corporate, Other and Eliminations
Corporate, Other and Eliminations primarily relate to corporate operations, including Comcast Spectacor and our new wireless initiative, Xfinity Mobile, as well as eliminations among Comcast’s businesses. For the quarter ended March 31, 2017, Corporate, Other and Eliminations revenue was ($317) million compared to ($275) million in the first quarter of 2016. The Adjusted EBITDA loss was $183 million compared to a loss of $144 million in the first quarter of 2016.
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