Comcast Reports 4th Quarter 2023 Results
PHILADELPHIA--(BUSINESS WIRE)--January 25, 2024--
Comcast Corporation (NASDAQ: CMCSA) today reported results for the quarter ended December 31, 2023.
“We capped off 2023 and the fourth quarter with excellent operational and financial performance,” said Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation. “For the third consecutive year, we generated the highest Revenue, Adjusted EBITDA and Adjusted EPS in our company’s history. At the same time, we invested in future growth, returned $16 billion to shareholders and maintained a healthy balance sheet. We drove strong revenue and Adjusted EBITDA growth in our Connectivity & Platforms businesses and continued to expand and upgrade our network to fuel broadband. We also reported the highest Adjusted EBITDA on record at Theme Parks; were the #1 studio in worldwide box office for the first time since 2015; and maintained Peacock’s position as the fastest growing streamer in the U.S. 2024 is already off to a great start — I couldn’t be more proud of how our company came together to deliver a record-breaking NFL Wild Card game on Peacock and the nation’s biggest night on the Internet ever. Our unique and complementary capabilities will enable us to capitalize on the many opportunities ahead, and the Board’s confidence in our future is reflected in today’s announcement that we are increasing our dividend for the 16th consecutive year.”
($ in millions,
except per share
data)
4th Quarter Full Year
------------------------ --------------------------
Consolidated
Results 2023 2022 Change 2023 2022 Change
------- ------- ------ -------- -------- ------
Revenue $31,253 $30,552 2.3% $121,572 $121,427 0.1%
Net Income
Attributable to
Comcast $3,260 $3,024 7.8% $15,388 $5,370 186.5%
Adjusted Net
Income(1) $3,410 $3,520 (3.1%) $16,493 $16,147 2.1%
Adjusted
EBITDA(2) $8,012 $8,000 0.1% $37,633 $36,459 3.2%
Earnings per
Share(3) $0.81 $0.70 15.7% $3.71 $1.21 NM
Adjusted
Earnings per
Share(1) $0.84 $0.82 2.4% $3.98 $3.64 9.3%
Net Cash
Provided by
Operating
Activities $5,922 $5,883 0.7% $28,501 $26,413 7.9%
Free Cash
Flow(4) $1,708 $1,330 28.5% $12,962 $12,646 2.5%
NM=comparison
not
meaningful.
For additional detail on segment revenue and expenses, customer metrics,
capital expenditures, and free cash flow, please refer to the trending
schedule on Comcast's Investor Relations website at .
4th Quarter and Full Year 2023 Highlights:
-- Consolidated Adjusted EBITDA in the Fourth Quarter Was Consistent With
the Prior Year Period, Including Severance and Other, and Increased 3.2%
for the Full Year; Adjusted EPS in the Fourth Quarter Increased 2.4% to
$0.84 and Increased 9.3% to $3.98 for the Full Year; Generated Free Cash
Flow of $1.7 Billion in the Fourth Quarter and $13.0 Billion for the Full
Year
-- Returned $4.7 Billion to Shareholders in the Fourth Quarter Through a
Combination of $1.2 Billion in Dividend Payments and $3.5 Billion in
Share Repurchases. Total Return of Capital to Shareholders for the Full
Year was $15.8 Billion
-- Increased Dividend by $0.08, or 6.9% Year-over-Year, to $1.24 per Share
on an Annualized Basis for 2024, the 16th Consecutive Annual Increase;
Increased Share Repurchase Authorization to $15 Billion
-- Continued the Successful Execution of Our Domestic Network Expansion
and Upgrade Strategy; Increased Homes and Businesses Passed in 2023 by
1.1 Million to 62.5 Million; Expanded Deployment of Mid-Split Technology
to 35% of Our Footprint at Year-End; and Began Rolling-Out Multi-Gigabit
Symmetrical Speeds Starting in Select Markets in the Fourth Quarter
-- Domestic Broadband Average Rate Per Customer Increased 3.9% and Drove
Domestic Broadband Revenue Growth of 3.7% in the Fourth Quarter and 4.2%
for the Full Year
-- Domestic Wireless Customer Line Net Additions Were 310,000 in the
Fourth Quarter and 1.3 Million for the Full Year; Lines Increased 24%
Compared to the Prior Year Period Reaching 6.6 Million
-- Peacock Paid Subscribers Increased Nearly 50% Compared to the Prior
Year Period to 31 Million, Including Net Additions of 3 Million in the
Fourth Quarter. Peacock Revenue in the Fourth Quarter Increased 57%,
Surpassing $1.0 Billion in Quarterly Revenue for the First Time; Adjusted
EBITDA in the Fourth Quarter Improved Compared to the Prior Year Period
-- Studios Ranked #1 in Worldwide Box Office for the Full Year, Including
3 of the Top 5 Films: Super Mario Bros. Movie, Oppenheimer and Fast X
-- Theme Parks Generated Its Highest Adjusted EBITDA on Record for a
Fourth Quarter and a Full Year. Adjusted EBITDA Increased 11.6% to $872
Million in the Fourth Quarter and 24.7% to $3.3 Billion for the Full
Year
4th Quarter Consolidated Financial Results
Revenue increased 2.3% compared to the prior year period. Net Income Attributable to Comcast increased 7.8%. Adjusted Net Income decreased 3.1%. Adjusted EBITDA was consistent with the prior year period, including $527 million of severance and other in the quarter and $638 million of severance in the prior year period. Excluding severance and other(7) , Adjusted EBITDA decreased 1.2%.
Earnings per Share (EPS) increased 15.7% to $0.81. Adjusted EPS increased 2.4% to $0.84.
Capital Expenditures decreased 6.9% to $3.3 billion. Connectivity & Platforms’ capital expenditures decreased 19.4% to $2.1 billion, reflecting lower spending on customer premise equipment, scalable infrastructure and support capital, partially offset by higher investment in line extensions. Content & Experiences’ capital expenditures increased 28.5% to $1.2 billion, reflecting increased investment in constructing the Epic Universe theme park in Orlando, which is scheduled to open in 2025.
Net Cash Provided by Operating Activities was $5.9 billion. Free Cash Flow was $1.7 billion.
Dividends and Share Repurchases. Comcast paid dividends totaling $1.2 billion and repurchased 81.9 million of its common shares for $3.5 billion, resulting in a total return of capital to shareholders of $4.7 billion.
Today, Comcast announced that it increased its dividend by $0.08, or 6.9% year-over-year, to $1.24 per share on an annualized basis for 2024. In accordance with the increase, the Board of Directors declared a quarterly cash dividend of $0.31 per share on the company’s stock, payable April 24, 2024, to shareholders of record as of the close of business on April 3, 2024. The Board of Directors also approved a new share repurchase program authorization, effective as of January 26, 2024, of $15 billion, which does not have an expiration date. We expect to repurchase shares of our Class A common stock under this authorization in the open market or private transactions, subject to market and other conditions.
Connectivity & Platforms
($ in millions)
-------
4th Quarter
-------------------------------------
Constant
Currency
2023 2022(5) Change Change(6)
------- ------- ----------- ------------
Connectivity &
Platforms
Revenue
Residential
Connectivity &
Platforms $18,058 $18,081 (0.1%) (1.3%)
Business
Services
Connectivity 2,361 2,230 5.9% 5.8%
------- ------- ------ -------
Total
Connectivity &
Platforms
Revenue $20,418 $20,311 0.5% (0.5%)
Connectivity &
Platforms
Adjusted EBITDA
Residential
Connectivity &
Platforms $6,276 $6,073 3.3% 3.3%
Business
Services
Connectivity 1,303 1,276 2.1% 2.1%
------- ------- ------ -------
Total
Connectivity &
Platforms
Adjusted
EBITDA $7,579 $7,349 3.1% 3.1%
Connectivity &
Platforms
Adjusted EBITDA
Margin
Residential
Connectivity &
Platforms 34.8% 33.6% 120 bps 160 bps
Business
Services
Connectivity 55.2% 57.2% (200) bps (200) bps
------- ------- ----------- ------------
Total
Connectivity &
Platforms
Adjusted EBITDA
Margin 37.1% 36.2% 90 bps 130 bps
Change percentages represent year/year growth rates. Change in Adjusted
EBITDA margin is presented as year/year basis point changes.