Comcast Announces Q1 Earnings

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Comcast Corporation (NASDAQ: CMCSA) yesterday reported results for the quarter ended March 31, 2018.  Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, “Comcast NBCUniversal is off to a great start in 2018 with over 10% revenue growth in the first quarter. At Cable Communications, our steady increase in customer relationships continued, balanced with solid growth in EBITDA, reflecting momentum in our high-speed internet and business services segments.”

Craig Moffett of MoffettNathanson said, “It is hard to explain the outsized reaction of Comcast shares to their surprise provisional bid for Sky – made formal this morning – using traditional valuation-based arguments.  After all, since their bid, Comcast’s shares have dropped by… well, by roughly a Sky. A traditional valuation analysis would therefore suggest that the market believes Comcast will promptly run Sky into the ground. A more convincing argument is that the Market is taking the Sky bid as a signal.  And, no, not a signal about Cable,” he said.

Capital Expenditures decreased 5.0% to $2.0 billion in the first quarter of 2018. Cable Communications’ capital expenditures decreased 5.2% to $1.7 billion in the first quarter of 2018, reflecting a lower level of spending on customer premise equipment, partially offset by increased investment in scalable infrastructure to increase network capacity and increased investment in line extensions. Cable capital expenditures represented 12.5% of Cable revenue in the first quarter of 2018 compared to 13.6% in last year’s first quarter. NBCUniversal’s capital expenditures of $269 million decreased 5.6%.

Consolidated 1st Quarter 2018 Highlights:

  • Consolidated Revenue Increased 10.7%; Net Income Attributable to Comcast Increased 21.2%; Adjusted EBITDA Increased 3.3%
  • Net Cash Provided by Operating Activities was $5.5 Billion; Free Cash Flow was $3.1 Billion
  • Earnings per Share Increased by 24.5% to $0.66; On an Adjusted Basis, Earnings per Share Increased 17.0% to $0.62
  • Dividends Paid Totaled $738 Million and Share Repurchases were $1.5 Billion


Cable Communications 1st Quarter 2018 Highlights:

  • Cable Communications Revenue Increased 3.6%; Adjusted EBITDA Increased 4.7%
  • Total Customer Relationships Increased by 273,000; Total High-Speed Internet Customers Increased by 379,000
  • Total Revenue per Customer Relationship Increased 0.9%; Adjusted EBITDA per Customer Relationship Increased 2.0%
  • High-Speed Internet Residential Revenue Increased 8.2%; Business Services Revenue Increased 11.9%

April 26, 2018

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