EX-99.1 2 ex991-3312020.htm EXHIBIT 99.1 Exhibit
 
 
 
        comcastlogo2a02.jpg  
 
PRESS RELEASE

COMCAST REPORTS 1st QUARTER 2020 RESULTS
PHILADELPHIA - April 30, 2020 Comcast Corporation (NASDAQ: CMCSA) today reported results for the quarter ended March 31, 2020.
“Society is being challenged like never before in our lifetime, and I couldn’t be prouder of our company, our employees, and our leadership team across Comcast Cable, NBCUniversal, and Sky. Now more than ever the world needs to stay connected, and we’re extremely pleased that our investments in our network continue to pay off as we are handling significant increases in traffic and meeting our customers’ needs. While parts of our business have been more impacted by COVID-19 than others, we have continued to innovate. We are distributing our content in new ways, as evidenced by the recent launch of Peacock on X1 and Flex. We've also taken decisive action, having moved over 95% of our U.S. call-center employees to work from home and putting in place new procedures that have allowed more than 15,000 construction workers to safely come back to work to build our theme park in Beijing. All the divisions of our company are in constant communication, and the level of collaboration has been extraordinary. We have a strong balance sheet, terrific portfolio of assets, and a world-class management team. This is a moment in time; and when it passes, I am very confident that the decisions we are making now will enable us to emerge from this crisis as a healthy, strong company that is well positioned to continue to grow and succeed," commented Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation.
 
 
 
 
 
 
 
($ in millions, except per share data)
 
 
 
 
 
 
1st Quarter
 
 
Consolidated Results
2020

2019

Growth

 
 
 
 
 
 
 
 
Revenue

$26,609


$26,859

(0.9
%)
 
 
Net Income Attributable to Comcast

$2,147


$3,553

(39.6
%)
 
 
Adjusted Net Income1

$3,266


$3,477

(6.1
%)
 
 
Adjusted EBITDA2

$8,130


$8,553

(4.9
%)
 
 
Earnings per Share3

$0.46


$0.77

(40.3
%)
 
 
Adjusted EPS1 

$0.71


$0.76

(6.6
%)
 
 
Net Cash Provided by Operating Activities

$5,824


$7,231

(19.5
%)
 
 
Free Cash Flow4

$3,325


$4,592

(27.6
%)
 
 
 
 
 
 
 
For additional detail on segment revenue and expenses, customer metrics, capital expenditures, and free cash flow, please refer to the trending schedules on Comcast’s Investor Relations website at www.cmcsa.com.
1st Quarter 2020 Highlights:
Generated Consolidated Adjusted EBITDA of $8.1 Billion, Adjusted EPS of $0.71 and Free Cash Flow of $3.3 Billion
Total Customer Relationships Across Cable Communications and Sky Increased 2.6% Year-Over-Year to 55.8 Million
Cable Communications Total Customer Relationships Increased by 371,000 in the Quarter, the Best First Quarter Result on Record
Total High-Speed Internet Customer Net Additions Were 477,000 (Not Including 32,000 Free Internet Essentials Customers), the Best Quarterly Result in 12 Years
Cable Communications Adjusted EBITDA Increased 6.1% Driven by Strength in High-Speed Internet and Business Services
Key Responses to COVID-19:
Maintained Network Reliability: Since March 1, Cable Communications Has Seen a 33% Increase in Upstream Traffic and a 40% Increase in Wireless Data Usage Over WiFi
Keeping Customers Connected: Cable Communications and Sky are expanding access to vital internet and phone services, with Xfinity WiFi outdoor and business hotspots open in the U.S. for free, and Sky Talk offering free calls to UK landlines any time of day





Supporting our People: Across Cable Communications, NBCUniversal and Sky, we have committed $500 Million to support employees during this time. All employees who can work from home, are, including over 95% of Cable Communications’ call center employees, and ensuring customer-facing employees can do their job safely
See More About Comcast’s Response to COVID-19 - https://corporate.comcast.com/covid-19

COVID-19 Impacts

Our Cable Communications results, while strong in the first quarter 2020, will be negatively affected in the second quarter by the significant deterioration in domestic economic conditions in recent weeks and by the costs associated with our support of customer connectivity as the population increasingly works and learns remotely from home.  NBCUniversal and Sky results also will be negatively impacted to a greater extent in the second quarter 2020. As a result, we expect the impacts of COVID-19 to increase in significance in the second quarter 2020 and to have a material adverse impact on our consolidated results of operations over the near-to-medium term.

Consolidated Financial Results

Revenue for the first quarter of 2020 decreased 0.9% to $26.6 billion. Net Income Attributable to Comcast decreased 39.6% to $2.1 billion. Adjusted Net Income decreased 6.1% to $3.3 billion. Adjusted EBITDA decreased 4.9% to $8.1 billion.

Earnings per Share (EPS) for the first quarter of 2020 was $0.46, a decrease of 40.3% compared to the first quarter of 2019. Adjusted EPS decreased 6.6% to $0.71.

Capital Expenditures decreased 10.1% to $1.9 billion in the first quarter of 2020. Cable Communications’ capital expenditures decreased 6.9% to $1.3 billion in the first quarter of 2020. NBCUniversal’s capital expenditures decreased 16.7% to $377 million. Sky's capital expenditures decreased 24.1% to $197 million.

Net Cash Provided by Operating Activities was $5.8 billion in the first quarter of 2020. Free Cash Flow was $3.3 billion.

Dividends paid during the first quarter of 2020 totaled $977 million.

Cable Communications
 
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
1st Quarter
 
 
 
2020

2019

Growth

 
 
Cable Communications Revenue
 
 
 
 
 
High-Speed Internet
$5,001
$4,577
9.3
%
 
 
Video
5,632
5,628
0.1
%
 
 
Voice
899
990
(9.2
%)
 
 
Wireless
343
225
52.1
%
 
 
Business Services
2,043
1,891
8.0
%
 
 
Advertising
557
556
0.3
%
 
 
Other
443
413
7.0
%
 
 
Cable Communications Revenue
$14,918
$14,280
4.5
%
 
 
 
 
 
 
 
 
Cable Communications Adjusted EBITDA
$6,076
$5,728
6.1
%
 
 
Adjusted EBITDA Margin
40.7
%
40.1
%
 
 
 
 
 
 
 
 
 
Cable Communications Capital Expenditures
$1,269
$1,363
(6.9
%)
 
 
Percent of Cable Communications Revenue
8.5
%
9.5
%
 
 
 
 
 
 
 
 

Revenue for Cable Communications increased 4.5% to $14.9 billion in the first quarter of 2020, driven primarily by increases in high-speed internet, business services and wireless revenue. High-speed internet revenue increased 9.3%, driven by an increase in the number of residential high-speed internet customers as well

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as an increase in average rates. Business services revenue increased 8.0%, reflecting an increase in average rates and an increase in the number of customers receiving our services. Wireless revenue increased 52.1%, primarily due to an increase in the number of customer lines. Other revenue increased 7.0%, primarily reflecting increases in revenue from our security and automation services and from licensing our X1 and technology platforms. Video revenue was consistent with the prior year period, due to an increase in average rates, offset by a decline in the number of residential video customers. Advertising revenue was consistent with the prior year period, primarily reflecting an increase in political advertising revenue, offset by reduced advertiser spending due to COVID-19. Excluding political advertising revenue, advertising revenue decreased 4.6%. Voice revenue decreased 9.2%, due to decreases in average rates and in the number of residential voice customers.

Total Customer Relationships increased by 371,000 to 31.9 million in the first quarter of 2020. Residential customer relationships increased by 360,000 and business customer relationships increased by 11,000. Total high-speed internet customer net additions were 477,000, total video customer net losses were 409,000 and total voice customer net losses were 89,000. In addition, Cable Communications added 216,000 wireless lines in the quarter.
 
 
 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
 
 
 
 
Net Additions
 
 
 
1Q20

1Q19

 
1Q20

1Q19

 
 
Customer Relationships
 
 
 
 
 
 
 
Residential Customer Relationships
29,509

28,385

 
360

276

 
 
Business Services Customer Relationships
2,408

2,327

 
11

25

 
 
Total Customer Relationships
31,917

30,712

 
371

300

 
 
 
 
 
 
 
 
 
 
Residential Customer Relationships Mix
 
 
 
 
 
 
 
One Product Residential Customers
10,801

9,295

 
554

280

 
 
Two Product Residential Customers
8,848

9,009

 
(75
)
17

 
 
Three or More Product Residential Customers
9,860

10,081

 
(119
)
(22
)
 
 
 
 
 
 
 
 
 
 
Residential High-Speed Internet Customers
26,880

25,449

 
466

352

 
 
Business Services High-Speed Internet Customers
2,226

2,148

 
11

23

 
 
Total High-Speed Internet Customers
29,106

27,598

 
477

375

 
 
 
 
 
 
 
 
 
 
Residential Video Customers
19,900

20,852

 
(388
)
(107
)
 
 
Business Services Video Customers
944

1,014

 
(22
)
(14
)
 
 
Total Video Customers
20,845

21,865

 
(409
)
(121
)
 
 
 
 
 
 
 
 
 
 
Residential Voice Customers
9,840

10,089

 
(94
)
(63
)
 
 
Business Services Voice Customers
1,347

1,307

 
5

10

 
 
Total Voice Customers
11,187

11,396

 
(89
)
(53
)
 
 
 
 
 
 
 
 
 
 
Total Wireless Lines
2,267

1,405

 
216

170

 
 
 
 
 
 
 
 
 

Adjusted EBITDA for Cable Communications increased 6.1% to $6.1 billion in the first quarter of 2020, reflecting higher revenue, partially offset by a 3.4% increase in operating expenses. Non-programming expenses increased 4.5%, primarily reflecting increases in technical and product support expenses and other operating costs, partially offset by a decrease in advertising, marketing and promotion costs. Technical and product support expenses increased 7.0%, primarily due to increased costs associated with our wireless phone service and additional compensation costs for certain personnel as a result of COVID-19. Other operating costs increased 7.1%, primarily due to an increase in the allowance for doubtful accounts as a result of COVID-19 and an increase in administrative expenses. Advertising, marketing and promotion costs decreased 1.9%, primarily due to a decrease in spending. Non-programming expenses per customer relationship increased 0.6%. Programming costs increased 1.7%, reflecting an increase in retransmission consent and sports programming fees, partially offset by video subscriber declines. This quarter’s Adjusted EBITDA per customer relationship increased 2.2%, and Adjusted EBITDA margin was 40.7%, compared to 40.1% in the first quarter of 2019. Cable Communications results include a loss of $59 million from our wireless business, compared to a loss of $103 million in the prior year period.


3



Capital Expenditures for Cable Communications decreased 6.9% to $1.3 billion in the first quarter of 2020. Cable capital expenditures represented 8.5% of Cable revenue in the first quarter of 2020 compared to 9.5% in last year's first quarter.

NBCUniversal
 
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
1st Quarter
 
 
 
2020

2019

Growth

 
 
NBCUniversal Revenue
 
 
 
 
 
Cable Networks

$2,859


$2,868

(0.3
%)
 
 
Broadcast Television
2,684

2,467

8.8
%
 
 
Filmed Entertainment
1,370

1,768

(22.5
%)
 
 
Theme Parks
869

1,276

(31.9
%)
 
 
Headquarters, other and eliminations
(48
)
(66
)
NM

 
 
NBCUniversal Revenue

$7,734


$8,313

(7.0
%)
 
 
 
 
 
 
 
 
NBCUniversal Adjusted EBITDA
 
 
 
 
 
Cable Networks

$1,248


$1,262

(1.2
%)
 
 
Broadcast Television
501

387

29.6
%
 
 
Filmed Entertainment
106

364

(70.9
%)
 
 
Theme Parks
76

498

(84.7
%)
 
 
Headquarters, other and eliminations
(184
)
(174
)
NM

 
 
NBCUniversal Adjusted EBITDA

$1,747


$2,337

(25.3
%)
 
 
NM=comparison not meaningful.
 
 
 
 
 
 
 
 
 
 

Revenue for NBCUniversal decreased 7.0% to $7.7 billion in the first quarter of 2020. Adjusted EBITDA decreased 25.3% to $1.7 billion.

Cable Networks
Cable Networks revenue of $2.9 billion was consistent with the prior year period, reflecting decreases in distribution revenue and advertising revenue, offset by an increase in content licensing and other revenue. Distribution revenue decreased 1.5%, reflecting a decline in subscribers, partially offset by contractual rate increases and the timing of contract renewals. Advertising revenue decreased 2.2%, reflecting audience ratings declines and reduced advertiser spending resulting from the postponement of sports events due to COVID-19, partially offset by higher pricing. Content licensing and other revenue increased 13.0% due to the timing of content provided under licensing agreements. Adjusted EBITDA decreased 1.2% to $1.2 billion in the first quarter of 2020, reflecting flat revenue, and flat operating expenses, as higher other operating and administrative costs were offset by lower programming and production costs. The decline in programming and production costs was primarily due to decreases in the recognition of sports programming costs as a result of the postponement of sports events due to COVID-19.

Broadcast Television
Broadcast Television revenue increased 8.8% to $2.7 billion in the first quarter of 2020, reflecting increases in content licensing revenue and distribution and other revenue. Content licensing revenue increased 31.3% due to the timing of content provided under licensing agreements. Distribution and other revenue increased 6.9%, due to higher retransmission consent fees. Advertising revenue was consistent with the prior year period, reflecting higher pricing and local political advertising, offset by audience ratings declines and reduced advertiser spending due to COVID-19. Adjusted EBITDA increased 29.6% to $501 million in the first quarter of 2020, reflecting higher revenue, partially offset by an increase in operating costs and expenses. The increase in operating costs and expenses was primarily due to an increase in programming and production costs, which was partially offset by the favorable impact of adopting updated accounting guidance.

Filmed Entertainment
Filmed Entertainment revenue decreased 22.5% to $1.4 billion in the first quarter of 2020, reflecting decreases in theatrical revenue, content licensing revenue, home entertainment revenue and other revenue. Theatrical revenue decreased 28.8%, reflecting a difficult comparison to the success of films in the first quarter of 2019, including How to Train Your Dragon: The Hidden World, Us and Glass, partially offset by the performance of films in this year's first quarter, including 1917, Dolittle and The Invisible Man. Content licensing revenue

4



decreased 15.4%, driven by the timing of when content was made available under licensing agreements, partially offset by the performance of certain 2020 releases that were made available on premium video on demand after theater closures due to COVID-19, including The Invisible Man, Emma and The Hunt. Home entertainment revenue decreased 35.8%, reflecting the success of Dr. Seuss' The Grinch, Halloween and Night School in last year's first quarter, partially offset by the performance of 1917, Downton Abbey and Fast & Furious Presents: Hobbs & Shaw in this year's first quarter. Other revenue decreased 20.3%, primarily due to decreases in revenue from our live stage play and movie ticketing and entertainment businesses, which were impacted by theater and entertainment venue closures as a result of COVID-19. Adjusted EBITDA decreased 70.9% to $106 million in the first quarter of 2020, reflecting lower revenue, partially offset by lower programming and production costs, as well as lower advertising, marketing and promotion costs.

Theme Parks
Theme Parks revenue decreased 31.9% to $869 million in the first quarter of 2020, primarily due to the closures of Universal Studios Japan in late February and Universal Orlando Resort and Universal Studios Hollywood in mid-March as a result of COVID-19. Adjusted EBITDA decreased 84.7% to $76 million in the first quarter of 2020, reflecting lower revenue and higher operating costs. The increase in operating costs was primarily due to increases in employee-related costs and pre-opening costs associated with the Universal Beijing Resort and Super Nintendo WorldTM in Universal Studios Japan, partially offset by lower park operation costs due to the park closures.

Headquarters, Other and Eliminations
NBCUniversal Headquarters, Other and Eliminations include overhead and eliminations among the NBCUniversal businesses. For the quarter ended March 31, 2020, NBCUniversal Headquarters, Other and Eliminations Adjusted EBITDA loss was $184 million, compared to a loss of $174 million in the first quarter of 2019.

Sky
 
 
 
 
 
 
 
 
 
 
 
($ in millions)
 
 
 
 
 
 
 
1st Quarter
 
 
 
2020

2019

Growth

Constant
Currency
Growth5

 
 
Sky Revenue
 
 
 
 
 
 
Direct-to-Consumer
$3,679
$3,834
(4.0
%)
(1.9
%)
 
 
Content
325
370
(12.3
%)
(10.5
%)
 
 
Advertising
513
593
(13.5
%)
(11.6
%)
 
 
Sky Revenue
$4,517
$4,797
(5.8
%)
(3.7
%)
 
 
 
 
 
 
 
 
 
Sky Operating Costs and Expenses
$3,966
$4,134
(4.1
%)
(1.9
%)
 
 
 
 
 
 
 
 
 
Sky Adjusted EBITDA
$551
$663
(16.9
%)
(15.3
%)
 
 
Adjusted EBITDA Margin
12.2
%
13.8
%
 
 
 
 
 
 
 
 
 
 

Revenue for Sky decreased 5.8% to $4.5 billion in the first quarter of 2020. Excluding the impact of currency, revenue decreased 3.7%, reflecting lower direct-to-consumer revenue, advertising revenue and content revenue. Direct-to-consumer revenue decreased 1.9% to $3.7 billion, primarily reflecting a decrease in average revenue per customer relationship due to the impact of COVID-19, which has resulted in lower sports subscription revenues, partially offset by an increase in customer relationships over the last twelve months. Advertising revenue decreased 11.6% to $513 million, primarily due to overall market weakness, which was worsened by COVID-19, as well as an unfavorable impact from a change in legislation related to gambling advertisements in the UK and Italy. Content revenue decreased 10.5% to $325 million, primarily reflecting the deferral of wholesale revenue from sports programming as a result of the postponement of sports events due to COVID-19.

Total Customer Relationships decreased by 65,000 to 23.9 million in the first quarter of 2020, reflecting the postponement of sports events and the suspension of certain sales channels due to COVID-19.

5



 
 
 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
 
 
Customers
 
Net Additions
 
 
 
1Q20

1Q19

 
1Q20

1Q19

 
 
Total Customer Relationships
23,930

23,712

 
(65
)
112

 
 
 
 
 
 
 
 
 

Adjusted EBITDA for Sky decreased 16.9% to $551 million in the first quarter of 2020. Excluding the impact of currency, Adjusted EBITDA decreased 15.3%, reflecting lower revenue, partially offset by a decrease in operating expenses. The decrease in operating expenses was primarily due to a decrease in the recognition of sports programming costs as a result of the postponement of sports events due to COVID-19.

Corporate, Other and Eliminations
 
 
 
Corporate, Other and Eliminations primarily relate to corporate operations, our streaming service, Peacock, and Comcast Spectacor, as well as eliminations among Comcast's businesses. For the quarter ended March 31, 2020, the Corporate, Other and Eliminations Adjusted EBITDA loss was $244 million, an increase of $69 million compared to 2019, primarily driven by start-up costs associated with Peacock.

Notes:
1
We define Adjusted Net Income and Adjusted EPS as net income attributable to Comcast Corporation and diluted earnings per common share attributable to Comcast Corporation shareholders, respectively, adjusted to exclude the effects of the amortization of acquisition-related intangible assets, investments that investors may want to evaluate separately (such as based on fair value) and the impact of certain events, gains, losses or other charges that affect period-over-period comparisons. See Table 5 for reconciliations of non-GAAP financial measures.
2
We define Adjusted EBITDA as net income attributable to Comcast Corporation before net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock, income tax expense, investment and other income (loss), net, interest expense, depreciation and amortization expense, and other operating gains and losses (such as impairment charges related to fixed and intangible assets and gains or losses on the sale of long-lived assets), if any. From time to time, we may exclude from Adjusted EBITDA the impact of certain events, gains, losses or other charges (such as significant legal settlements) that affect the period-to-period comparability of our operating performance. See Table 4 for reconciliation of non-GAAP financial measure.
3
All earnings per share amounts are presented on a diluted basis.
4
We define Free Cash Flow as net cash provided by operating activities (as stated in our Consolidated Statement of Cash Flows) reduced by capital expenditures and cash paid for intangible assets. From time to time, we may exclude from Free Cash Flow the impact of certain cash receipts or payments (such as significant legal settlements) that affect period-to-period comparability. Cash payments for acquisitions and construction of real estate properties and the construction of Universal Beijing Resort are presented separately in our Consolidated Statement of Cash Flows and are therefore excluded from capital expenditures for Free Cash Flow. See Table 4 for reconciliation of non-GAAP financial measure.

5
Sky constant currency growth rates are calculated by comparing the current period results to the comparative period results in the prior year adjusted to reflect the average exchange rates from the current year period rather than the actual exchange rates in effect during the respective prior year periods. See Table 6 for reconciliation of Sky's constant currency growth.

All percentages are calculated on whole numbers. Minor differences may exist due to rounding.


###






6



Conference Call and Other Information
Comcast Corporation will host a conference call with the financial community today, April 30, 2020 at 8:30 a.m. Eastern Time (ET). The conference call and related materials will be broadcast live and posted on its Investor Relations website at www.cmcsa.com. Those parties interested in participating via telephone should dial (800) 263-8495 with the conference ID number 9334849. A replay of the call will be available starting at 12:00 p.m. ET on April 30, 2020, on the Investor Relations website or by telephone. To access the telephone replay, which will be available until Thursday, May 7, 2020 at midnight ET, please dial (855) 859-2056 and enter the conference ID number 9334849.

From time to time, we post information that may be of interest to investors on our website at www.cmcsa.com and on our corporate website, www.comcastcorporation.com. To automatically receive Comcast financial news by email, please visit www.cmcsa.com and subscribe to email alerts.

###

Investor Contacts:
 
 
Press Contacts:
 
Marci Ryvicker
(215) 286-4781
 
Jennifer Khoury
(215) 286-7408
Jane Kearns
(215) 286-4794
 
John Demming
(215) 286-8011
Marc Kaplan
(215) 286-6527
 
 
 

###

Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements. Readers are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual events or our actual results to differ materially from those expressed in any such forward-looking statements. Readers are directed to Comcast’s periodic and other reports filed with the Securities and Exchange Commission (SEC) for a description of such risks and uncertainties. We undertake no obligation to update any forward-looking statements.

###

Non-GAAP Financial Measures
In this discussion, we sometimes refer to financial measures that are not presented according to generally accepted accounting principles in the U.S. (GAAP). Certain of these measures are considered non-GAAP financial measures under the SEC regulations; those rules require the supplemental explanations and reconciliations that are in Comcast’s Form 8-K (Quarterly Earnings Release) furnished to the SEC.

###

About Comcast Corporation
Comcast Corporation (Nasdaq: CMCSA) is a global media and technology company with three primary businesses: Comcast Cable, NBCUniversal, and Sky. Comcast Cable is one of the United States’ largest high-speed internet, video, and phone providers to residential customers under the Xfinity brand, and also provides these services to businesses. It also provides wireless and security and automation services to residential customers under the Xfinity brand. NBCUniversal is global and operates news, entertainment and sports cable networks, the NBC and Telemundo broadcast networks, television production operations, television station groups, Universal Pictures, and Universal Parks and Resorts. Sky is one of Europe's leading media and entertainment companies, connecting customers to a broad range of video content through its pay television services. It also provides communications services, including residential high-speed internet, phone, and wireless services. Sky operates the Sky News broadcast network and sports and entertainment networks, produces original content, and has exclusive content rights.
Visit www.comcastcorporation.com for more information.


7



 
 
 
 
 
 
 
comcastlogoa17.jpg
TABLE 1
Condensed Consolidated Statement of Income (Unaudited)
 
 
 
 
 
Three Months Ended
(in millions, except per share data)
March 31,
 
2020
 
2019
Revenue

$26,609

 

$26,859

 
 
 
 
Programming and production
8,301

 
8,569

Other operating and administrative
8,254

 
7,900

Advertising, marketing and promotion
1,938

 
1,888

Adjustments(1)
(14
)
 
(51
)
 
18,479

 
18,306

 
 
 
 
Adjusted EBITDA(1)
8,130

 
8,553

 
 
 
 
Adjustments(1)
14

 
51

Depreciation expense
2,107

 
2,240

Amortization expense
1,157

 
1,080

 
3,278

 
3,371

 
 
 
 
Operating income
4,852

 
5,182

 
 
 
 
Interest expense
(1,212
)
 
(1,150
)
 
 
 
 
Investment and other income (loss), net
 
 
 
Equity in net income (losses) of investees, net
(668
)
 
262

Realized and unrealized gains (losses) on equity securities, net
(58
)
 
214

Other income (loss), net
10

 
200

 
(716
)
 
676

 
 
 
 
Income before income taxes
2,924

 
4,708

 
 
 
 
Income tax expense
(700
)
 
(1,076
)
 
 
 
 
Net income
2,224

 
3,632

 
 
 
 
Less: Net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock
77

 
79

 
 
 
 
Net income attributable to Comcast Corporation

$2,147

 

$3,553

 
 
 
 
 
 
 
 
Diluted earnings per common share attributable to Comcast Corporation shareholders

$0.46

 

$0.77

 
 
 
 
Diluted weighted-average number of common shares
4,617

 
4,594

 
 
 
 

(1) See Table 4 for reconciliation of non-GAAP financial measure.

8



 
 
 
 
 
 
 
comcastlogoa17.jpg
TABLE 2
Consolidated Statement of Cash Flows (Unaudited)
 
 
 
 
 
Three Months Ended
(in millions)
March 31,
 
2020
 
2019
 
 
 
 
OPERATING ACTIVITIES
 
 
 
Net income

$2,224

 

$3,632

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
3,264

 
3,320

Share-based compensation
298

 
245

Noncash interest expense (income), net
227

 
77

Net (gain) loss on investment activity and other
791

 
(498
)
Deferred income taxes
(120
)
 
271

Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:
 
 
 
Current and noncurrent receivables, net
198

 
449

Film and television costs, net
3

 
559

Accounts payable and accrued expenses related to trade creditors
(727
)
 
(574
)
Other operating assets and liabilities
(334
)
 
(250
)
 
 
 
 
Net cash provided by operating activities
5,824

 
7,231

 
 
 
 
INVESTING ACTIVITIES
 
 
 
Capital expenditures
(1,881
)
 
(2,092
)
Cash paid for intangible assets
(618
)
 
(547
)
Construction of Universal Beijing Resort
(371
)
 
(220
)
Acquisitions, net of cash acquired
(194
)
 
(48
)
Proceeds from sales of businesses and investments
17

 
37

Purchases of investments
(69
)
 
(439
)
Other
15

 
83

 
 
 
 
Net cash provided by (used in) investing activities
(3,101
)
 
(3,226
)
 
 
 
 
FINANCING ACTIVITIES
 
 
 
Proceeds from (repayments of) short-term borrowings, net

 
(1,288
)
Proceeds from borrowings
9,281

 
222

Repurchases and repayments of debt
(7,439
)
 
(2,084
)
Repurchases of common stock under employee plans
(233
)
 
(247
)
Dividends paid
(977
)
 
(869
)
Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock
(76
)
 
(85
)
Other
(182
)
 
26

 
 
 
 
Net cash provided by (used in) financing activities
374

 
(4,325
)
 
 
 
 
Impact of foreign currency on cash, cash equivalents and restricted cash

(77
)
 
8

 
 
 
 
Increase (decrease) in cash, cash equivalents and restricted cash
3,020

 
(312
)
 
 
 
 
Cash, cash equivalents and restricted cash, beginning of period
5,589

 
3,909

 
 
 
 
Cash, cash equivalents and restricted cash, end of period

$8,609

 

$3,597

 
 
 
 

9



 
 
 
 
 
 
 
comcastlogoa17.jpg
TABLE 3
Condensed Consolidated Balance Sheet (Unaudited)
 
 
 
 
(in millions)
March 31,
 
December 31,
 
2020
 
2019
ASSETS
 
 
 
 
 
 
 
Current Assets
 
 
 
Cash and cash equivalents

$8,516

 

$5,500

Receivables, net
10,800

 
11,292

Programming rights

 
3,877

Other current assets
4,768

 
4,723

Total current assets
24,084

 
25,392

 
 
 
 
Film and television costs
12,385

 
8,933

 
 
 
 
Investments
6,468

 
6,989

 
 
 
 
Investment securing collateralized obligation
612

 
694

 
 
 
 
Property and equipment, net
48,442

 
48,322

 
 
 
 
Goodwill
67,218

 
68,725

 
 
 
 
Franchise rights
59,365

 
59,365

 
 
 
 
Other intangible assets, net
34,672

 
36,128

 
 
 
 
Other noncurrent assets, net
9,175

 
8,866

 
 
 
 
 

$262,421

 

$263,414

 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
Current Liabilities
 
 
 
Accounts payable and accrued expenses related to trade creditors

$9,963

 

$10,826

Accrued participations and residuals
1,894

 
1,730

Deferred revenue
2,634

 
2,768

Accrued expenses and other current liabilities
10,136

 
10,516

Current portion of long-term debt
2,973

 
4,452

Total current liabilities
27,600

 
30,292

 
 
 
 
Long-term debt, less current portion
100,604

 
97,765

 
 
 
 
Collateralized obligation
5,166

 
5,166

 
 
 
 
Deferred income taxes
27,865

 
28,180

 
 
 
 
Other noncurrent liabilities
17,144

 
16,765

 
 
 
 
Redeemable noncontrolling interests and redeemable subsidiary preferred stock
1,259

 
1,372

 
 
 
 
Equity
 
 
 
Comcast Corporation shareholders' equity
81,506

 
82,726

Noncontrolling interests
1,277

 
1,148

Total equity
82,783

 
83,874

 
 
 
 
 

$262,421

 

$263,414


10



 
comcastlogoa17.jpg
 
TABLE 4
 
Reconciliation from Net Income Attributable to Comcast Corporation to Adjusted EBITDA (Unaudited)
 
 
 
 
 
 
 
 
 
Three Months Ended
March 31,
 
 
 
(in millions)
 
 
2020
 
2019
Net income attributable to Comcast Corporation
 
 

$2,147

 

$3,553

Net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock
 
 
77

 
79

Income tax expense
 
 
700

 
1,076

Interest expense
 
 
1,212

 
1,150

Investment and other (income) loss, net
 
 
716

 
(676
)
Depreciation and amortization
 
 
3,264

 
3,320

Adjustments (1)
 
 
14

 
51

Adjusted EBITDA
 
 

$8,130

 

$8,553

 
 
 
 
 
 
Reconciliation from Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited)
 
 
 
 
 
 
 
Three Months Ended
March 31,
 
 
(in millions)
2020
 
2019
Net cash provided by operating activities

$5,824

 

$7,231

Capital expenditures
(1,881
)
 
(2,092
)
Cash paid for capitalized software and other intangible assets
(618
)
 
(547
)
Total Free Cash Flow

$3,325

 

$4,592

 
 
 
 
 
Alternate Presentation of Free Cash Flow (Unaudited)
 
 
 
 
 
 
 
Three Months Ended
March 31,
 
 
(in millions)
2020
 
2019
Adjusted EBITDA

$8,130

 

$8,553

Capital expenditures
(1,881
)
 
(2,092
)
Cash paid for capitalized software and other intangible assets
(618
)
 
(547
)
Cash interest expense
(991
)
 
(970
)
Cash taxes
(281
)
 
(189
)
Changes in operating assets and liabilities
(1,393
)
 
(535
)
Noncash share-based compensation
298

 
245

Other (2)
61

 
127

Total Free Cash Flow

$3,325

 

$4,592

 
 
 
 
 
(1)
First quarter 2020 and 2019 Adjusted EBITDA exclude $14 million and $51 million of other operating and administrative expense, respectively, related to the Sky transaction.

 
 
 
 
 
(2)
First quarter 2020 and 2019 include decreases of $14 million and $51 million of costs related to the Sky transaction, respectively, as these amounts are excluded from Adjusted EBITDA.

 
 
 
 
 
 
 
Note: Minor differences may exist due to rounding.
 
 
 


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comcastlogoa17.jpg
TABLE 5
 
 
 
 
 
 
 
 
Reconciliations of Adjusted Net Income and Adjusted EPS (Unaudited)
 
 
 
 
Three Months Ended
March 31,
 
 
2020
 
2019
(in millions, except per share data)
 
 
 
 
 
 
 
 
$
 
EPS
 
$
 
EPS
 
 
 
 
 
 
 
 
Net income attributable to Comcast Corporation and diluted earnings per share attributable to Comcast Corporation shareholders
$2,147
 
$0.46
 
$3,553
 
$0.77
Growth %
(39.6
%)
 
(40.3
%)
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of acquisition-related intangible assets (1)
458
 
0.10
 
400

 
0.09

Investments (2)
544
 
0.13
 
(438
)
 
(0.09
)
Items affecting period-over-period comparability:
 
 
 
 
 
 
 
Loss on early redemption of debt (3)
106
 
0.02
 

 

Costs related to Sky transaction (4)
11
 

 
41

 
0.01

Purchase accounting adjustments (5)

 

 
39

 
0.01

Gains and losses related to businesses and investments (6)

 

 
(118
)
 
(0.03
)
 
 
 
 
 
 
 
 
Adjusted Net income and Adjusted EPS
$3,266
 
$0.71
 
$3,477
 
$0.76
Growth %
(6.1
%)
 
(6.6
%)
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Acquisition-related intangible assets are recognized as a result of the application of Accounting Standards Codification Topic 805, Business Combinations (such as customer relationships), and their amortization is significantly affected by the size and timing of our acquisitions. Amortization of intangible assets not resulting from business combinations (such as software and acquired intellectual property rights used in our theme parks) is included in Adjusted Net Income and Adjusted EPS.
 
Three Months Ended
March 31,
 
2020
 
2019
Amortization of acquisition-related intangible assets before income taxes

$575
 
$504
Amortization of acquisition-related intangible assets, net of tax

$458
 
$400
(2)
Adjustments for investments include realized and unrealized (gains) losses on equity securities, net (as stated in Table 1), as well as the equity in net (income) losses of investees, net, for our investments in Atairos and Hulu (following May 2019 transaction).
 
Three Months Ended
March 31,
 
2020
 
2019
Realized and unrealized (gains) losses on equity securities, net

$58

 

($214
)
Equity in net (income) losses of investees, net
663

 
(374
)
Investments before income taxes
721

 
(588
)
Investments, net of tax

$544

 

($438
)
(3)
1st quarter 2020 net income attributable to Comcast Corporation includes $140 million of interest expense, $106 million net of tax, resulting from the early redemption of debt.
(4)
1st quarter 2020 and 2019 net income attributable to Comcast Corporation includes $14 million and $51 million of operating costs and expenses, $11 million and $41 million net of tax, respectively, related to the Sky transaction, primarily relating to the replacement of share-based compensation awards and costs related to integration activities.
(5)
1st quarter 2019 net income attributable to Comcast Corporation includes $53 million of depreciation and amortization expense, $39 million net of tax, related to the 4th quarter 2018, as a result of adjustments to the purchase price allocation of Sky, primarily related to intangible assets and property and equipment.
(6)
1st quarter 2019 net income attributable to Comcast Corporation includes a gain of $159 million in other income, $118 million net of tax, related to our investment in Hulu.

Note: Minor differences may exist due to rounding.

12



 
 
 
 
 
 
 
comcastlogoa17.jpg
TABLE 6
Reconciliation of Sky Constant Currency Growth (Unaudited)
 
 
 
 
 
 
 
Three Months Ended
March 31,
 
(in millions)
2020
 
2019(1)
 
Growth %
 
 
 
 
 
 
Direct-to-Consumer

$3,679

 

$3,749

 
(1.9
%)
Content
325

 
363

 
(10.5
%)
Advertising
513

 
580

 
(11.6
%)
Revenue

$4,517

 

$4,692

 
(3.7
%)
 
 
 
 
 
 
Operating costs and expenses

$3,966

 

$4,041

 
(1.9
%)
 
 
 
 
 
 
Adjusted EBITDA

$551

 

$651

 
(15.3
%)
 
 
 
 
 
 

(1)
2019 results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the current period rather than the actual exchange rates in effect during the respective periods.
Note: Minor differences may exist due to rounding.



13