Comcast ( CMCSA Quick Quote CMCSA - Free Report) reported third-quarter 2020 adjusted earnings of 65 cents per share, beating the Zacks Consensus Estimate by 27.5% but decreasing 17.7% year over year. Consolidated revenues slid 4.8% year over year to $25.53 billion, but beat the Zacks Consensus Estimate by 3.2%. Cable Communication Revenue Details
Revenues increased 2.9% from the year-ago quarter to $15 billion. Total Customer Relationships increased 556K to 32.7 million.
High-speed Internet revenues grew 10.1% year over year to $5.2 billion, primarily driven by increased residential high-speed Internet customers and average rate. Total high-speed Internet customer net additions were 633K.
Business Services revenues were up 4% to $2.05 billion, driven by customer-base expansion and higher average rates.
Wireless revenues jumped 22.8% to $400 million, supported by an increase in the number of customer lines. Comcast added 187K wireless lines in the reported quarter. Advertising revenues increased 11.8% year over year to $674 million, primarily driven by an increase in political advertising revenues. Voice revenues were $876 million, down 9% year over year due to a declining number of residential voice customers. Video revenues slipped 2.1% to $5.42 billion, reflecting a decline in the residential video customer count. Total video customer net losses were 273K while total voice customer net losses were 3K. Other revenues decreased 17.2% from the year-ago quarter to $382 million, owing to lower security and automation services revenues as well as waived late fees. NBCUniversal Revenues Decrease Y/Y
Revenues declined 18.9% year over year to $6.72 billion.
Cable Networks’ revenues dipped 1.3% from the year-ago quarter to $2.74 billion. Broadcast Television revenues increased 8.3% from the year-ago quarter to $2.41 billion. Filmed Entertainment revenues decreased 25% from the year-ago quarter to $1.28 billion. Theatrical revenues fell 94.7% from the year-ago quarter. Theme Parks revenues were $311 million, down 80.9% year over year. Universal Orlando Resort and Universal Studios Japan operated with limited capacity, while Universal Studios Hollywood remains closed. Sky Revenue Details
Sky’s revenues increased 5.2% year over year to $4.79 billion. At constant currency (cc), revenues inched up 0.3%.
Direct-to-consumer revenues were up 9.4% (down 1% at cc) from the year-ago quarter to $3.94 billion. Content revenues increased 23.3% (up 17.5% at cc) to $388 million. Advertising revenues climbed 3.7% (down1.2% at cc) from the year-ago quarter to $462 million. Total Customer Relationships decreased 21K to 23.695 million in the reported quarter. Operating Details
Consolidated programming & production costs increased 3% from the year-ago quarter to $8.57 billion.
Consolidated adjusted EBITDA fell 11.3% from the year-ago quarter to $7.58 billion. Segment-wise, Cable Communications’ adjusted EBITDA rose 10.5% from the year-ago quarter to $6.41billion. Cable Communications results include a loss of $50 million from the wireless business compared with a loss of $94 million in the year-ago quarter. NBCUniversal’s adjusted EBITDA decreased 38.7% from the year-ago quarter to $1.28 billion, reflecting a significant decline in Theme Parks (down 127.7%)-adjusted EBITDA partially and Cable Networks (down 8.9%) partially offset by Filmed Entertainment (up 53.4%) and Broadcast Television-adjusted EBITDA (up 28.7%). Sky’s adjusted EBITDA declined 42.8% year over year (down 45.4% at cc) to $515 million. Notably, Sky’s operating costs and expenses increased 17% (up 11.5% at cc) to $4.28 billion. Consolidated operating income declined 23.7% year over year to $4.08 billion. Cash Flow & Liquidity
As of Sep 30, 2020, cash and cash equivalents were $13.71 billion, up from $13.94 billion as of Jun 30.
Moreover, as of Sep 30, 2020, consolidated total debt was $104.42 billion, compared with $104.81 billion as of Jun 30, 2020. In third-quarter 2020, Comcast generated cash from operations of $5.2 billion, up 0.7% year over year. Free cash flow was $2.29 billion in the reported quarter, up 10.5% year over year. Dividends paid out in the third quarter were worth $1.1 billion. Zacks Rank & Stocks to Consider
Currently, Comcast carries a Zacks Rank #3 (Hold).
Fox Corporation ( FOXA Quick Quote FOXA - Free Report) , Lionsgate ( LGF.A Quick Quote LGF.A - Free Report) and News Corporation ( NWSA Quick Quote NWSA - Free Report) are some better-ranked stocks in the broader Consumer & Discretionary sector, all three carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Fox is set to release quarterly results on Nov 3. Both Lionsgate and News Corporation are scheduled to report earnings on Nov 5. Looking for Stocks with Skyrocketing Upside?
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