Comcast (CMCSA - Free Report) reported third-quarter 2021 adjusted earnings of 87 cents per share, beating the Zacks Consensus Estimate by 16% and increasing 33.8% year over year.
Consolidated revenues increased 18.7% year over year to $30.30 billion and beat the Zacks Consensus Estimate by 1.7%.
Cable Communication Revenue Details
Revenues increased 7.4% from the year-ago quarter to $16.1 billion, driven by increases in broadband, advertising, wireless, business services, video, other and advertising revenues. Total Customer Relationships increased 255K to 34 million.
Broadband revenues grew 11.6% year over year to $5.80 billion, primarily driven by increased residential broadband customers and average rate. Total broadband customer net additions were 300K.
Business Services revenues were up 8.7% to $2.23 billion, driven by higher average rates.
Wireless revenues surged 50.7% to $603 million, driven by an increase in the number of customer lines and device sales. Comcast added 285K wireless lines in the reported quarter.
Advertising revenues increased 4.6% year over year to $705 million. Excluding political advertising revenues, advertising revenues increased 19%.
Video revenues increased 1.4% to $5.50 billion, reflecting an increase in average rates. Meanwhile, voice revenues were $851 million, down 2.9% year over year due to a decline in the number of residential voice customers.
Total video customer net losses were 408K while total voice customer net losses were 158K.
Other revenues increased 12.4% from the year-ago quarter to $427 million, reflecting increases in revenues from security and automation services, and from the licensing of technology platforms.
NBCUniversal Revenues Increase Y/Y
Revenues increased 57% year over year to $10 billion.
Media revenues increased 47.5% from the year-ago quarter to $6.77 billion, reflecting higher advertising and distribution revenues.
Excluding $1.8 billion of revenues generated by the broadcast of the Tokyo Olympics, Media revenues increased 9.2% year-over-year. Advertising revenue increased 73%, benefiting from the broadcast of the Tokyo Olympics, higher pricing and additional Peacock sales, partially offset by the unfavorable timing of other sporting events and a decline in ratings.
Distribution revenue increased 36.2%, driven by the broadcast of the Tokyo Olympics, contractual rate increases in the current period and increases at Peacock.
Studios revenues increased 26.8% from the year-ago quarter to $2.41 billion, primarily reflecting higher theatrical revenues.
Theme Parks revenues surged to $1.45 billion from the year-ago quarter’s figure of $385 million, reflecting improved operating conditions.
Sky Revenues Details
Sky’s revenues increased 4.1% year over year to $5 billion. At constant currency (cc), revenues decreased 0.7%.
Direct-to-consumer revenues were up 4.7% (down 0.1% at cc) from the year-ago quarter to $4.13 billion.
Content revenues decreased 22.8% (down 26.4% at cc) to $300 million.
Advertising revenues climbed 21.4% (up 15.6% at cc) from the year-ago quarter to $561 million.
Total customer relationships decreased 233K to 23 million in the reported quarter.
Operating Details
Consolidated programming & production costs increased 21.4% from the year-ago quarter to $10.4 billion.
Consolidated adjusted EBITDA increased 18.1% from the year-ago quarter to $9 billion.
Segment-wise, Cable Communications’ adjusted EBITDA rose 10.3% from the year-ago quarter to $7.1 billion. Cable Communications’ results include adjusted EBITDA of $51 million from the wireless business against a loss of $50 million in the year-ago quarter.
NBCUniversal’s adjusted EBITDA increased 48.2% from the year-ago quarter to $1.3 billion, despite significant decline in Studios (down 47.3%).
Sky’s adjusted EBITDA jumped 88.8% year over year (up 76.2% at cc) to $971 million. Notably, Sky’s operating costs and expenses decreased 6.1% (down 10.2% at cc) to $4.01 billion.
Consolidated operating income increased 33.7% year over year to $5.45 billion.
Cash Flow & Liquidity
As of Sep 30, 2021, cash and cash equivalents were $11.81 billion, down from $12.41 billion as of Jun 30, 2021.
Moreover, as of Sep 30, 2021, consolidated total debt was $97.22 billion compared with $98.5 billion as of Jun 30, 2021.
In third-quarter 2021, Comcast generated $6.10 billion in cash from operations, down from $7.60 billion reported in the previous quarter. Free cash flow was $3.23 billion in the reported quarter, down from $4.79 billion in the previous quarter.
During the third quarter of 2021, Comcast paid $1.2 billion in dividend and repurchased 25.9 million of its common shares for $1.5 billion. As of Sep 30, 2021, Comcast had $8 billion available under its share-repurchase authorization.
Zacks Rank & Stocks to Consider
Currently, Comcast carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader consumer discretionary sector include Accel Entertainment (ACEL - Free Report) Clarus (CLAR - Free Report) , and Funko (FNKO - Free Report) . While both Funko and Clarus sport a Zacks Rank #1 (Strong Buy) Accel carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Accel Entertainment, Funko and Clarus are scheduled to report their quarterly earnings on Nov 3, 4 and 8, respectively.
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Comcast (CMCSA - Free Report) reported third-quarter 2021 adjusted earnings of 87 cents per share, beating the Zacks Consensus Estimate by 16% and increasing 33.8% year over year.
Consolidated revenues increased 18.7% year over year to $30.30 billion and beat the Zacks Consensus Estimate by 1.7%.
Cable Communication Revenue Details
Revenues increased 7.4% from the year-ago quarter to $16.1 billion, driven by increases in broadband, advertising, wireless, business services, video, other and advertising revenues. Total Customer Relationships increased 255K to 34 million.
Broadband revenues grew 11.6% year over year to $5.80 billion, primarily driven by increased residential broadband customers and average rate. Total broadband customer net additions were 300K.
Business Services revenues were up 8.7% to $2.23 billion, driven by higher average rates.
Wireless revenues surged 50.7% to $603 million, driven by an increase in the number of customer lines and device sales. Comcast added 285K wireless lines in the reported quarter.
Advertising revenues increased 4.6% year over year to $705 million. Excluding political advertising revenues, advertising revenues increased 19%.
Video revenues increased 1.4% to $5.50 billion, reflecting an increase in average rates. Meanwhile, voice revenues were $851 million, down 2.9% year over year due to a decline in the number of residential voice customers.
Total video customer net losses were 408K while total voice customer net losses were 158K.
Other revenues increased 12.4% from the year-ago quarter to $427 million, reflecting increases in revenues from security and automation services, and from the licensing of technology platforms.
NBCUniversal Revenues Increase Y/Y
Revenues increased 57% year over year to $10 billion.
Media revenues increased 47.5% from the year-ago quarter to $6.77 billion, reflecting higher advertising and distribution revenues.
Excluding $1.8 billion of revenues generated by the broadcast of the Tokyo Olympics, Media revenues increased 9.2% year-over-year. Advertising revenue increased 73%, benefiting from the broadcast of the Tokyo Olympics, higher pricing and additional Peacock sales, partially offset by the unfavorable timing of other sporting events and a decline in ratings.
Distribution revenue increased 36.2%, driven by the broadcast of the Tokyo Olympics, contractual rate increases in the current period and increases at Peacock.
Studios revenues increased 26.8% from the year-ago quarter to $2.41 billion, primarily reflecting higher theatrical revenues.
Theme Parks revenues surged to $1.45 billion from the year-ago quarter’s figure of $385 million, reflecting improved operating conditions.
Sky Revenues Details
Sky’s revenues increased 4.1% year over year to $5 billion. At constant currency (cc), revenues decreased 0.7%.
Direct-to-consumer revenues were up 4.7% (down 0.1% at cc) from the year-ago quarter to $4.13 billion.
Content revenues decreased 22.8% (down 26.4% at cc) to $300 million.
Advertising revenues climbed 21.4% (up 15.6% at cc) from the year-ago quarter to $561 million.
Total customer relationships decreased 233K to 23 million in the reported quarter.
Operating Details
Consolidated programming & production costs increased 21.4% from the year-ago quarter to $10.4 billion.
Consolidated adjusted EBITDA increased 18.1% from the year-ago quarter to $9 billion.
Segment-wise, Cable Communications’ adjusted EBITDA rose 10.3% from the year-ago quarter to $7.1 billion. Cable Communications’ results include adjusted EBITDA of $51 million from the wireless business against a loss of $50 million in the year-ago quarter.
NBCUniversal’s adjusted EBITDA increased 48.2% from the year-ago quarter to $1.3 billion, despite significant decline in Studios (down 47.3%).
Sky’s adjusted EBITDA jumped 88.8% year over year (up 76.2% at cc) to $971 million. Notably, Sky’s operating costs and expenses decreased 6.1% (down 10.2% at cc) to $4.01 billion.
Consolidated operating income increased 33.7% year over year to $5.45 billion.
Cash Flow & Liquidity
As of Sep 30, 2021, cash and cash equivalents were $11.81 billion, down from $12.41 billion as of Jun 30, 2021.
Moreover, as of Sep 30, 2021, consolidated total debt was $97.22 billion compared with $98.5 billion as of Jun 30, 2021.
In third-quarter 2021, Comcast generated $6.10 billion in cash from operations, down from $7.60 billion reported in the previous quarter. Free cash flow was $3.23 billion in the reported quarter, down from $4.79 billion in the previous quarter.
During the third quarter of 2021, Comcast paid $1.2 billion in dividend and repurchased 25.9 million of its common shares for $1.5 billion. As of Sep 30, 2021, Comcast had $8 billion available under its share-repurchase authorization.
Zacks Rank & Stocks to Consider
Currently, Comcast carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader consumer discretionary sector include Accel Entertainment (ACEL - Free Report) Clarus (CLAR - Free Report) , and Funko (FNKO - Free Report) . While both Funko and Clarus sport a Zacks Rank #1 (Strong Buy) Accel carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Accel Entertainment, Funko and Clarus are scheduled to report their quarterly earnings on Nov 3, 4 and 8, respectively.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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