Comcast Reports 4th Quarter and Full Year 2022 Results

Comcast Corporation (NASDAQ: CMCSA) today reported results for the quarter and year ended December 31, 2022.

"I am proud of how our team executed throughout 2022," said Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation. "We achieved the highest levels of Revenue, Adjusted EBITDA and Adjusted EPS in our history and returned a record $17.7 billion of capital to shareholders. We delivered impressive revenue growth in broadband; grew wireless lines by 1.3 million, our best result since launch; more than doubled our Peacock subscribers, surpassing 20 million at year-end; nearly tripled Peacock revenue to $2.1 billion; ranked second in worldwide box office; and generated record Adjusted EBITDA at our theme parks. Importantly, we achieved these results while continuing to invest in broadband, our 10G network evolution, Xfinity Mobile, Peacock, and theme parks, and we also took cost actions to further our growth in the future. We are excited to begin the new year as an innovative leader in large profitable markets with a strong balance sheet and a strategy to drive incremental returns and bring outstanding content and experiences to our customers. The Board's confidence in our position and path forward is underscored by today's announcement that we are increasing our dividend for the 15th consecutive year."

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.

Full Year 2022 Highlights:

• Consolidated Adjusted EBITDA Increased 5.0% to $36.5 Billion and Adjusted EPS Increased 12.7% to $3.64; Generated Free Cash Flow of $12.6 Billion
• Cable Communications Adjusted EBITDA Increased 4.6% to $29.4 Billion; Achieved the Highest Full Year Adjusted EBITDA Margin on Record
• Cable Communications Total Customer Relationship Net Additions Were 75,000 and Total Broadband Customer Net Additions Were 250,000
• Cable Communications Wireless Customer Line Net Additions Were 1.3 Million, the Best Annual Result on Record; Surpassed 5 Million Customer Lines in Just 5 Years
• Cable Communications Started Rolling Out Multi-Gig Broadband Speeds in Markets Across the U.S. and Announced the Launch of Even Faster, Multi-Gig Symmetrical Speeds Beginning in 2023
• NBCUniversal Adjusted EBITDA Increased 4.9% to $6.0 Billion, Driven by Growth at Theme Parks. NBCUniversal Adjusted EBITDA in 2022 Included Higher Peacock Losses
• Peacock Paid Subscribers in the U.S. More Than Doubled, Surpassing 20 Million; Peacock Revenue Nearly Tripled to $2.1 Billion
• Studios Adjusted EBITDA Increased 6.6% to $942 Million; Ranked #2 Studio in Worldwide Box Office for the Year, Driven by the Successful Theatrical Performance of Jurassic World: Dominion and Minions: The Rise of Gru
• Theme Parks Adjusted EBITDA Increased $1.4 Billion to $2.7 Billion, Its Highest Adjusted EBITDA on Record, Reflecting Increases at Each Park Compared to 2021
• Sky Adjusted EBITDA Increased 7.0% to $2.5 Billion; On a Constant Currency Basis, Adjusted EBITDA Increased 20.3%

4th Quarter 2022 Highlights:

• Consolidated Adjusted EBITDA Decreased 4.9% to $8.0 Billion, Including $541 Million in Higher Severance Expense; Excluding the Higher Severance⁵, Adjusted EBITDA Increased 1.5%; Adjusted EPS Increased 6.5% to $0.82; Generated Free Cash Flow of $1.3 Billion
• Cable Communications Adjusted EBITDA Increased 1.5% to $7.2 Billion, Including $305 Million in Higher Severance Expense; Excluding the Higher Severance⁵, Adjusted EBITDA Increased 5.8%
• Cable Communications Customer Relationships of 34.3 Million and Broadband Customers of 32.2 Million Were Consistent with the Prior Quarter. Excluding the Negative Impact From Hurricane Ian, Estimated Total Customer Relationship Net Losses Were 36,000 and Total Broadband Net Additions Were 4,000
• Cable Communications Wireless Customer Line Net Additions Were 365,000, the Best Quarterly Result Since Launch in 2017
• NBCUniversal Adjusted EBITDA Reflected Higher Peacock Losses and $182 Million in Severance Expense in Headquarters and Other
• Peacock Paid Subscriber Net Additions in the U.S. Were 5 Million, Fueled by Live Sports, Our Recent Films and Originals; the Best Quarterly Result Since Launch in 2020
• Theme Parks Delivered Its Highest Adjusted EBITDA on Record for a Fourth Quarter, Driven by Higher Attendance and Increases in Guest Spending at Our Parks in the U.S. and Japan
• Sky Total Customer Relationship Net Additions Were 129,000, Reflecting Net Additions in All Markets

Dividends and Share Repurchases:

• Returned $17.7 Billion to Shareholders in 2022 Through a Combination of $4.7 Billion in Dividend Payments and $13.0 Billion in Share Repurchases
• Increased Dividend By $0.08, or 7.4% Year-over-Year, to $1.16 per Share on an Annualized Basis for 2023, the 15th Consecutive Annual Increase

Consolidated Financial Results

Revenue for the fourth quarter of 2022 increased 0.7% to $30.6 billion. Net Income Attributable to Comcast decreased 1.1% to $3.0 billion. Adjusted Net Income decreased 0.4% to $3.5 billion. Adjusted EBITDA decreased 4.9% to $8.0 billion, including $541 million in higher severance expense compared to the prior year period. Excluding the higher severance⁵, Adjusted EBITDA increased 1.5%.

For the twelve months ended December 31, 2022, revenue increased 4.3% to $121.4 billion. Net income attributable to Comcast decreased 62.1% to $5.4 billion. Adjusted Net Income increased 7.3% to $16.1 billion. Adjusted EBITDA increased 5.0% to $36.5 billion.

In the third quarter of 2022, we recorded noncash impairment charges related to goodwill and intangible assets in our Sky segment totaling $8.6 billion. The impairments primarily reflected an increased discount rate and reduced estimated future cash flows as a result of macroeconomic conditions in Sky's territories, are recorded in "Goodwill and long-lived asset impairments" in the Condensed Consolidated Statement of Income and are excluded from Adjusted Net Income and Adjusted Earnings per Share.

Earnings per Share (EPS) for the fourth quarter of 2022 increased 6.8% to $0.70. Adjusted EPS increased 6.5% to $0.82.

For the twelve months ended December 31, 2022, EPS decreased 60.2% to $1.21. Adjusted EPS increased 12.7% to $3.64.

Capital Expenditures increased 17.7% to $3.6 billion in the fourth quarter of 2022. Cable Communications’ capital expenditures increased 9.7% to $2.4 billion. NBCUniversal’s capital expenditures increased 82.6% to $916 million, reflecting increased investment in constructing the Epic Universe theme park in Orlando, which is scheduled to open in 2025. Sky's capital expenditures decreased 43.9% to $186 million.

For the twelve months ended December 31, 2022, capital expenditures increased 15.8% to $10.6 billion. Cable Communications' capital expenditures increased 9.2% to $7.6 billion. NBCUniversal's capital expenditures increased $1.2 billion to $2.3 billion, reflecting the increased investment in constructing Epic Universe. Sky's capital expenditures decreased 40.9% to $560 million.

Net Cash Provided by Operating Activities was $5.9 billion in the fourth quarter of 2022. Free Cash Flow was $1.3 billion.

For the twelve months ended December 31, 2022, net cash provided by operating activities was $26.4 billion. Free cash flow was $12.6 billion.

Dividends and Share Repurchases. During the fourth quarter of 2022, Comcast paid dividends totaling $1.2 billion and repurchased 106.3 million of its common shares for $3.5 billion, resulting in a total return of capital to shareholders of $4.7 billion, compared to $3.1 billion in the prior year period.

For the twelve months ended December 31, 2022, Comcast paid dividends totaling $4.7 billion and repurchased 332.0 million of its common shares for $13.0 billion, resulting in a total return of capital to shareholders of $17.7 billion, compared to $8.5 billion in 2021.

Today, Comcast announced that it increased its dividend by $0.08, or 7.4% year-over-year, to $1.16 per share on an annualized basis for 2023. In accordance with the increase, the Board of Directors declared a quarterly cash dividend of $0.29 per share on the company's stock, payable April 26, 2023, to shareholders of record as of the close of business on April 5, 2023.

Cable Communications

Revenue for Cable Communications increased 1.4% to $16.6 billion in the fourth quarter of 2022, driven by increases in broadband, wireless, business services and advertising revenue, partially offset by decreases in video, voice and other revenue. Broadband revenue increased 5.4% due to an increase in average rates and an increase in the number of residential broadband customers compared to the prior year period. Wireless revenue increased 24.7% due to an increase in the number of customer lines and an increase in device sales. Business services revenue increased 4.6% due to an increase in average rates and an increase in the number of customers receiving our services compared to the prior year period. Advertising revenue increased 9.1%, primarily driven by an increase in political advertising. Excluding political revenue, advertising revenue decreased by 7.4%, reflecting the previously announced transition of our Xumo Play streaming service from Cable Communications to a joint venture reported in Corporate and Other and lower local and national advertising revenue, partially offset by higher revenue from our advanced advertising businesses. Video revenue decreased 5.6%, reflecting a decrease in the number of residential video customers, partially offset by an increase in average rates. Voice revenue decreased 13.2%, primarily reflecting a decrease in the number of residential voice customers. Other revenue decreased 6.5%, reflecting a decrease in revenue from our security and automation services.

For the twelve months ended December 31, 2022, Cable revenue increased 3.1% to $66.3 billion, driven by growth in broadband, business services, wireless and advertising revenue, partially offset by a decrease in video and voice revenue.

Total Customer Relationships decreased by 71,000 to 34.3 million in the fourth quarter of 2022. Excluding the negative impact from Hurricane Ian, we estimate that total customer relationships decreased by 36,000. Total broadband customer net losses were 26,000. Excluding the negative impact from Hurricane Ian, we estimate that total broadband net additions were 4,000. Total video customer net losses were 440,000 and total voice customer net losses were 288,000. In addition, Cable Communications added 365,000 wireless lines in the quarter.

For the twelve months ended December 31, 2022, total customer relationships increased by 75,000. Residential customer relationships increased by 54,000 and business customer relationships increased by 21,000. Total broadband customer net additions were 250,000. Total video customer net losses were 2.0 million and total voice customer net losses were 1.2 million. In addition, Cable Communications added 1.3 million wireless lines in 2022.

Adjusted EBITDA for Cable Communications increased 1.5% to $7.2 billion in the fourth quarter of 2022, reflecting higher revenue, partially offset by a 1.4% increase in operating expenses due to higher severance expense. Excluding the higher severance⁵, Adjusted EBITDA increased 5.8%. Programming expenses decreased 5.9%, primarily reflecting a decline in the number of video subscribers, partially offset by contractual rate increases. Non-programming expenses increased 5.6%, reflecting higher other expenses, including $305 million in higher severance expense, and an increase in technical and product support expenses, partially offset by lower advertising, marketing and promotion expenses, franchise and regulatory fees and customer service expenses. Adjusted EBITDA margin was 43.5% compared to 43.4% in the prior year period. Excluding the higher severance⁵, Adjusted EBITDA margin was 45.3% in the fourth quarter of 2022.

For the twelve months ended December 31, 2022, Adjusted EBITDA for Cable Communications increased 4.6% to $29.4 billion, reflecting higher revenue, partially offset by a 1.9% increase in operating expenses. Programming expenses decreased 2.8%, primarily reflecting a decline in the number of video subscribers, partially offset by contractual rate increases. Non-programming expenses increased 4.9%. For the twelve months ended December 31, 2022, Adjusted EBITDA margin was 44.3% compared to 43.7% in 2021.

Capital Expenditures for Cable Communications increased 9.7% to $2.4 billion in the fourth quarter of 2022, reflecting increased investment in line extensions, scalable infrastructure, customer premise equipment and support capital. Cable capital expenditures represented 14.4% of Cable revenue in the fourth quarter of 2022 compared to 13.4% in the prior year period.

For the twelve months ended December 31, 2022, Cable capital expenditures increased 9.2% to $7.6 billion, reflecting increased investment in line extensions, scalable infrastructure, support capital and customer premise equipment. Cable capital expenditures represented 11.4% of Cable revenue compared to 10.8% in 2021.

NBCUniversal

Revenue for NBCUniversal increased 5.9% to $9.9 billion in the fourth quarter of 2022, including $263 million in incremental revenue from the FIFA World Cup. Adjusted EBITDA decreased 36.3% to $817 million, including $182 million in severance expense in Headquarters and Other in the current year period. Excluding Headquarters and Other severance, Adjusted EBITDA⁵ decreased 22.1%.

For the twelve months ended December 31, 2022, NBCUniversal revenue increased 14.2% to $39.2 billion. 2022 included $1.7 billion of incremental revenue from the Beijing Olympics, the NFL's Super Bowl and the FIFA World Cup in the Media segment, while 2021 included $1.8 billion of incremental revenue from the Tokyo Olympics in the Media segment. Adjusted EBITDA increased 4.9% to $6.0 billion.

Media

Media revenue increased 2.6% to $6.0 billion in the fourth quarter of 2022, due to higher advertising revenue and distribution revenue. Excluding $263 million generated by Telemundo's broadcast of the FIFA World Cup⁵, Media revenue decreased 1.9%. Advertising revenue increased 4.0%, primarily due to incremental revenue from the FIFA World Cup as well as an increase in Peacock advertising revenue. Distribution revenue increased 3.8%, reflecting an increase in subscribers at Peacock and contractual rate increases, partially offset by a decline in subscribers at our networks. Adjusted EBITDA decreased 81.7% to $132 million in the fourth quarter of 2022, reflecting higher operating expenses, which more than offset higher revenue. The increase in operating expenses was primarily due to higher programming and production costs, reflecting higher costs at Peacock and higher sports programming costs associated with Telemundo's broadcast of the FIFA World Cup. Media results include $660 million of revenue and an Adjusted EBITDA⁶ loss of $978 million related to Peacock, compared to $335 million of revenue and an Adjusted EBITDA⁶ loss of $559 million in the prior year period.

For the twelve months ended December 31, 2022, revenue from the Media segment increased 2.7% to $23.4 billion, primarily due to higher distribution revenue and advertising revenue. Excluding $1.7 billion of incremental revenue from the Beijing Olympics, the NFL's Super Bowl and the FIFA World Cup in 2022⁵ and $1.8 billion of incremental revenue from the Tokyo Olympics in 2021⁵, Media revenue increased 3.0%. Adjusted EBITDA decreased 29.7% to $3.2 billion, reflecting higher operating expenses, which more than offset higher revenue. The increase in operating expenses was due to higher programming and production expenses, other operating and administrative expenses and advertising, marketing and promotion expenses. Media results include $2.1 billion of revenue and an Adjusted EBITDA⁶ loss of $2.5 billion related to Peacock, compared to $778 million of revenue and an Adjusted EBITDA⁶ loss of $1.7 billion in 2021.

Studios

Studios revenue increased 13.1% to $2.7 billion in the fourth quarter of 2022, due to higher content licensing and theatrical revenue. Content licensing revenue increased 15.9%, primarily due to the timing of when content was made available by our film and television studios under licensing agreements, including additional sales of content as production levels returned to normal. Theatrical revenue increased 47.3%, primarily due to the successful performance of recent releases, including Ticket to Paradise, Puss in Boots: The Last Wish, Violent Night and Halloween Ends. Adjusted EBITDA increased $109 million to $160 million in the fourth quarter of 2022, reflecting higher revenue, which more than offset higher operating expenses. The increase in operating expenses was driven by an increase in advertising, marketing and promotion expenses reflecting the size and timing of this quarter's theatrical slate, as well as higher programming and production expenses, reflecting higher amortization of film production costs in the current year period.

For the twelve months ended December 31, 2022, revenue from the Studios segment increased 23.0% to $11.6 billion, primarily reflecting higher content licensing revenue and theatrical revenue. Adjusted EBITDA increased 6.6% to $942 million, reflecting higher revenue, partially offset by higher operating expenses.

Theme Parks

Theme Parks revenue increased 12.0% to $2.1 billion in the fourth quarter of 2022, primarily due to increased attendance and guest spending at our parks in the U.S. and Japan compared to the prior year period. Theme Parks Adjusted EBITDA increased 16.0% to $782 million in the fourth quarter of 2022, reflecting higher revenue, partially offset by higher operating expenses.

For the twelve months ended December 31, 2022, revenue from the Theme Parks segment increased 49.3% to $7.5 billion, primarily reflecting improved operating conditions compared to 2021, when each of our theme parks in the U.S. and Japan was either operating at limited capacity or closed during certain periods as a result of COVID-19, as well as the operations of Universal Beijing Resort, which opened in September 2021. Adjusted EBITDA increased $1.4 billion to $2.7 billion, reflecting higher revenue, partially offset by higher operating expenses.

Headquarters and Other

NBCUniversal Headquarters and Other includes overhead, personnel costs and costs associated with corporate initiatives. Headquarters and Other Adjusted EBITDA loss in the fourth quarter of 2022 was $353 million, compared to a loss of $197 million in the prior year period. The year-over-year change was driven by $182 million in severance expense in the current year period.

For the twelve months ended December 31, 2022, Headquarters and Other Adjusted EBITDA loss was $881 million, compared to a loss of $840 million in 2021.

Eliminations

Amounts represent eliminations of transactions between our NBCUniversal segments, which are affected by the timing of recognition of content licenses between our Studios and Media segments. Revenue eliminations in the fourth quarter of 2022 were $968 million, compared to $817 million in the prior year period, and Adjusted EBITDA eliminations were a benefit of $97 million, compared to a benefit of $33 million in the prior year period.

For the twelve months ended December 31, 2022, revenue eliminations were $3.4 billion, compared to $3.0 billion in 2021. Adjusted EBITDA eliminations were $2 million, compared to $205 million in 2021. The year-over-year change was primarily driven by the licensing of content by the Studios segment to Peacock in the Media segment.

Sky

Revenue for Sky decreased 13.0% to $4.4 billion in the fourth quarter of 2022. Excluding the impact of currency, revenue was consistent with the prior year period. Direct-to-consumer revenue of $3.5 billion was consistent with the prior year period, reflecting increased revenue in the U.K., driven by higher mobile and broadband revenue, offset by decreased revenue in Germany and Italy. Advertising revenue decreased 9.6% to $564 million, primarily reflecting lower revenue in the U.K., including the impact of the timing of the FIFA World Cup. Content revenue increased 6.5% to $304 million, primarily due to the timing of licensing our content to other platforms.

For the twelve months ended December 31, 2022, Sky revenue decreased 11.5% to $17.9 billion. Excluding the impact of currency, revenue decreased 1.2%, reflecting lower direct-to-consumer revenue, content revenue and advertising revenue.

Total Customer Relationships increased by 129,000 to 23.1 million in the fourth quarter of 2022. For the twelve months ended December 31, 2022, total customer relationships increased by 88,000.

Adjusted EBITDA for Sky decreased 26.7% to $340 million in the fourth quarter of 2022. Excluding the impact of currency, Adjusted EBITDA decreased 15.1% compared to the prior year period, reflecting consistent revenue and higher operating expenses, including $53 million in higher severance expense. Excluding the higher severance⁵, Adjusted EBITDA decreased 2.0%. The increase in operating expenses was due to higher other costs, including the higher severance, as well as higher direct network costs driven by growth in our residential mobile and broadband businesses, largely offset by lower sports programming costs due to the timing of sporting events, including a shift of certain football matches out of the fourth quarter of 2022 due to the FIFA World Cup.

For the twelve months ended December 31, 2022, Adjusted EBITDA for Sky increased 7.0% to $2.5 billion. Excluding the impact of currency, Adjusted EBITDA increased 20.3%.

Corporate, Other and Eliminations

Corporate and Other

Corporate and Other primarily relates to corporate operations, Comcast Spectacor, Sky Glass and Xumo, our streaming platform joint venture with Charter Communications. Revenue in the fourth quarter of 2022 was $313 million, compared to $215 million in the prior year period. Corporate and Other Adjusted EBITDA loss was $417 million, compared to a loss of $481 million in the prior year period.

For the twelve months ended December 31, 2022, Corporate and Other revenue was $863 million, compared to $461 million in 2021. Corporate and Other Adjusted EBITDA loss of $1.4 billion was consistent with 2021.

Eliminations

Amounts represent eliminations of transactions between Cable Communications, NBCUniversal, Sky and other businesses. Eliminations of transactions between NBCUniversal segments are presented separately. Revenue eliminations in the fourth quarter of 2022 of $707 million were consistent with the prior year period, and Adjusted EBITDA eliminations were $28 million compared to $21 million in the prior year period.

For the twelve months ended December 31, 2022, revenue eliminations were $2.9 billion compared to $3.0 billion in 2021, and Adjusted EBITDA eliminations were a loss of $64 million compared to a loss of $65 million in 2021. Amounts reflect eliminations associated with the Beijing and Tokyo Olympics in 2022 and 2021, respectively.

Conference Call and Other Information

Comcast Corporation will host a conference call with the financial community today, January 26, 2023 at 8:30 a.m. Eastern Time (ET). The conference call and related materials will be broadcast live and posted on our Investor Relations website at www.cmcsa.com. Those parties interested in participating via telephone should dial (646) 828-8082 with the passcode 572424. A replay of the call will be available starting at 11:30 a.m. ET on Thursday, January 26, 2023 on the Investor Relations website.

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.

Caution Concerning Forward-Looking Statements

This press release includes statements that may constitute forward-looking statements. In evaluating these statements, readers should consider various factors, including the risks and uncertainties we describe in the “Risk Factors” sections of our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q and other reports filed with the Securities and Exchange Commission (SEC). Factors that could cause our actual results to differ materially from these forward-looking statements include changes in and/or risks associated with: the competitive environment; consumer behavior; the advertising market; programming costs; consumer acceptance of our content; key distribution and/or licensing agreements; use and protection of our intellectual property; our reliance on third-party hardware, software and operational support; keeping pace with technological developments; cyber attacks, security breaches or technology disruptions; weak economic conditions; acquisitions and strategic initiatives; operating businesses internationally; natural disasters, severe weather-related and other uncontrollable events; loss of key personnel; laws and regulations; adverse decisions in litigation or governmental investigations; labor disputes; and other risks described from time to time in reports and other documents we file with the SEC. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made, and 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. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise. The amount and timing of any dividends and share repurchases are subject to business, economic and other relevant factors.

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 that connects people to moments that matter. We are principally focused on connectivity, aggregation, and streaming with 57 million customer relationships across the United States and Europe. We deliver broadband, wireless, and video through our Xfinity, Comcast Business, and Sky brands; create, distribute, and stream leading entertainment, sports, and news through Universal Filmed Entertainment Group, Universal Studio Group, Sky Studios, the NBC and Telemundo broadcast networks, multiple cable networks, Peacock, NBCUniversal News Group, NBC Sports, Sky News, and Sky Sports; and provide memorable experiences at Universal Parks and Resorts in the United States and Asia.

Visit www.comcastcorporation.com for more information.