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Comcast (CMCSA) Q1 Earnings Beat, Broadband User Base Rises
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Comcast (CMCSA - Free Report) reported first-quarter 2022 adjusted earnings of 86 cents per share, beating the Zacks Consensus Estimate by 7.5% and increasing 13.2% year over year.
Consolidated revenues increased 14% year over year to $31.01 billion and beat the Zacks Consensus Estimate by 1.61%.
Cable Communication Revenues Up Y/Y
Revenues increased 4.7% from the year-ago quarter to $16.54 billion, driven by increases in broadband, wireless, business services and advertising revenues. Total Customer Relationships increased 194K to 34.4 million.
Broadband revenues grew 8% year over year to $6.05 billion, primarily driven by increased residential broadband customers and average rate. Total broadband customer net additions were 262K.
Comcast Corporation Price, Consensus and EPS Surprise
Business Services revenues were up 10.6% to $2.40 billion, driven by higher average rates and an increasing number of customers.
Wireless revenues surged 32% to $677 million, driven by an increase in the number of customer lines as well as in device sales. Comcast added 318K wireless lines in the reported quarter.
Other revenues increased 2.7% from the year-ago quarter to $424 million, reflecting increases in revenues from security and automation services, and from the licensing of technology platforms.
Advertising revenues increased 8.6% year over year to $671 million, primarily driven by increases in political advertising and advertising at Comcast’s Xumo streaming service, as well as at advanced advertising businesses. Excluding political advertising revenues, advertising revenues increased 6%.
Video revenues decreased 1.5% to $5.54 billion, reflecting a decrease in the number of residential video customers, partially offset by an increase in average rates.
Meanwhile, voice revenues were $786 million, down 9.8% year over year due to a decline in residential voice customers.
Total video customer net losses were 512K, while total voice customer net losses were 282K.
NBCUniversal Revenues Increase Y/Y
Revenues soared 46.6% year over year to $10.30 billion.
Media revenues increased 36.3% from the year-ago quarter to $6.87 billion, reflecting higher advertising and distribution revenues.
Advertising revenues increased 59.2%, benefiting from the broadcasts of the 2022 Beijing Olympics and the NFL's Super Bowl, as well as higher pricing and additional Peacock sales. Distribution revenues increased 21.6%, driven by contractual rate increases in the current period and revenue increases at Peacock as well as the broadcast of the 2022 Beijing Olympics.
Studios revenues increased 15.1% from the year-ago quarter to $2.8 billion, primarily reflecting content licensing revenues (up 9.8% year over year) and theatrical revenues (up $129 million).
Theme Parks revenues surged 152% year over year to $1.56 billion, reflecting improved operating conditions.
Sky Revenues Details
Sky’s revenues decreased 4.4% year over year to $4.78 billion. At constant currency (cc), revenues decreased 0.5%.
Direct-to-consumer revenues were down 4.5% (down 0.4% at cc) from the year-ago quarter to $3.88 billion.
Content revenues decreased 17.5% (down 14.3% at cc) to $295 million.
Advertising revenues climbed 3.8% (up 7.9% at cc) from the year-ago quarter to $596 million.
Total customer relationships decreased by 106K to 22.9 million in the reported quarter.
Operating Details
Costs and expenses in first-quarter 2022 increased 14.8% year over year to $25.44 billion.
Programming & production costs increased 18.5% from the year-ago quarter to $10.57 billion. Advertising, marketing and promotional expenses increased 27.6% year over year to $2.06 billion.
Adjusted EBITDA increased 8.8% from the year-ago quarter to $9.15 billion.
Segment-wise, Cable Communications’ adjusted EBITDA rose 6.5% from the year-ago quarter to $7.27 billion.
NBCUniversal’s adjusted EBITDA increased 7.4% from the year-ago quarter to $1.60 billion.
Sky’s adjusted EBITDA jumped 71% year over year (up 71.2% at cc) to $622 million. Sky’s operating costs and expenses decreased 1.4% (down 6.3% at cc) to $4.15 billion.
Cash Flow & Liquidity
As of Mar 31, 2022, cash and cash equivalents were $8.88 billion, up from $8.71 billion as of Dec 31, 2021.
Moreover, as of Mar 31, 2022, consolidated total debt was $94.56 billion compared with $94.85 billion as of Dec 31, 2021.
In first-quarter 2022, Comcast generated $7.26 billion in cash from operations, down from $7.69 billion reported in the previous quarter. Free cash flow was $4.76 billion in the reported quarter, down from $3.78 billion in the previous quarter.
Zacks Rank & Stocks to Consider
Currently, Comcast carries a Zacks Rank #3 (Hold).
CMCSA shares have outperformed the Zacks Consumer Discretionary sector year to date. While Comcast shares have lost 15.3%, Consumer Discretionary sector declined 19.6%.
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Comcast (CMCSA) Q1 Earnings Beat, Broadband User Base Rises
Comcast (CMCSA - Free Report) reported first-quarter 2022 adjusted earnings of 86 cents per share, beating the Zacks Consensus Estimate by 7.5% and increasing 13.2% year over year.
Consolidated revenues increased 14% year over year to $31.01 billion and beat the Zacks Consensus Estimate by 1.61%.
Cable Communication Revenues Up Y/Y
Revenues increased 4.7% from the year-ago quarter to $16.54 billion, driven by increases in broadband, wireless, business services and advertising revenues. Total Customer Relationships increased 194K to 34.4 million.
Broadband revenues grew 8% year over year to $6.05 billion, primarily driven by increased residential broadband customers and average rate. Total broadband customer net additions were 262K.
Comcast Corporation Price, Consensus and EPS Surprise
Comcast Corporation price-consensus-eps-surprise-chart | Comcast Corporation Quote
Business Services revenues were up 10.6% to $2.40 billion, driven by higher average rates and an increasing number of customers.
Wireless revenues surged 32% to $677 million, driven by an increase in the number of customer lines as well as in device sales. Comcast added 318K wireless lines in the reported quarter.
Other revenues increased 2.7% from the year-ago quarter to $424 million, reflecting increases in revenues from security and automation services, and from the licensing of technology platforms.
Advertising revenues increased 8.6% year over year to $671 million, primarily driven by increases in political advertising and advertising at Comcast’s Xumo streaming service, as well as at advanced advertising businesses. Excluding political advertising revenues, advertising revenues increased 6%.
Video revenues decreased 1.5% to $5.54 billion, reflecting a decrease in the number of residential video customers, partially offset by an increase in average rates.
Meanwhile, voice revenues were $786 million, down 9.8% year over year due to a decline in residential voice customers.
Total video customer net losses were 512K, while total voice customer net losses were 282K.
NBCUniversal Revenues Increase Y/Y
Revenues soared 46.6% year over year to $10.30 billion.
Media revenues increased 36.3% from the year-ago quarter to $6.87 billion, reflecting higher advertising and distribution revenues.
Advertising revenues increased 59.2%, benefiting from the broadcasts of the 2022 Beijing Olympics and the NFL's Super Bowl, as well as higher pricing and additional Peacock sales. Distribution revenues increased 21.6%, driven by contractual rate increases in the current period and revenue increases at Peacock as well as the broadcast of the 2022 Beijing Olympics.
Studios revenues increased 15.1% from the year-ago quarter to $2.8 billion, primarily reflecting content licensing revenues (up 9.8% year over year) and theatrical revenues (up $129 million).
Theme Parks revenues surged 152% year over year to $1.56 billion, reflecting improved operating conditions.
Sky Revenues Details
Sky’s revenues decreased 4.4% year over year to $4.78 billion. At constant currency (cc), revenues decreased 0.5%.
Direct-to-consumer revenues were down 4.5% (down 0.4% at cc) from the year-ago quarter to $3.88 billion.
Content revenues decreased 17.5% (down 14.3% at cc) to $295 million.
Advertising revenues climbed 3.8% (up 7.9% at cc) from the year-ago quarter to $596 million.
Total customer relationships decreased by 106K to 22.9 million in the reported quarter.
Operating Details
Costs and expenses in first-quarter 2022 increased 14.8% year over year to $25.44 billion.
Programming & production costs increased 18.5% from the year-ago quarter to $10.57 billion. Advertising, marketing and promotional expenses increased 27.6% year over year to $2.06 billion.
Adjusted EBITDA increased 8.8% from the year-ago quarter to $9.15 billion.
Segment-wise, Cable Communications’ adjusted EBITDA rose 6.5% from the year-ago quarter to $7.27 billion.
NBCUniversal’s adjusted EBITDA increased 7.4% from the year-ago quarter to $1.60 billion.
Sky’s adjusted EBITDA jumped 71% year over year (up 71.2% at cc) to $622 million. Sky’s operating costs and expenses decreased 1.4% (down 6.3% at cc) to $4.15 billion.
Cash Flow & Liquidity
As of Mar 31, 2022, cash and cash equivalents were $8.88 billion, up from $8.71 billion as of Dec 31, 2021.
Moreover, as of Mar 31, 2022, consolidated total debt was $94.56 billion compared with $94.85 billion as of Dec 31, 2021.
In first-quarter 2022, Comcast generated $7.26 billion in cash from operations, down from $7.69 billion reported in the previous quarter. Free cash flow was $4.76 billion in the reported quarter, down from $3.78 billion in the previous quarter.
Zacks Rank & Stocks to Consider
Currently, Comcast carries a Zacks Rank #3 (Hold).
CMCSA shares have outperformed the Zacks Consumer Discretionary sector year to date. While Comcast shares have lost 15.3%, Consumer Discretionary sector declined 19.6%.
Funko (FNKO - Free Report) , fuboTV (FUBO - Free Report) and News Corporation (NWSA - Free Report) are some better-ranked stocks that investors can consider in the broader sector. While Funko and News Corporation sport a Zacks Rank #1 (Strong Buy), fuboTV carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Funko shares have outperformed the Zacks Consumer Discretionary sector year to date. Funko shares are down 11.6%.
FNKO is set to report first-quarter fiscal 2022 on May 5, 2022.
fuboTV shares have underperformed the Zacks Consumer Discretionary sector year-to-date. FUBO shares are down 74.4%.
fuboTV is set to report first-quarter 2022 results on May 5.
News Corporation shares are down 8.4% year to date.
NWSA is set to report third-quarter fiscal 2022 results on May 5.