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Comcast Corp (CMCSA) SEC Filing 8-K Material Event for the period ending Thursday, July 29, 2021

Comcast Corp

CIK: 1166691 Ticker: CMCSA
        comcastlogo2a02a.jpg
PRESS RELEASE
COMCAST REPORTS 2nd QUARTER 2021 RESULTS
PHILADELPHIA - July 29, 2021… Comcast Corporation (NASDAQ: CMCSA) today reported results for the quarter ended June 30, 2021.
“We delivered excellent results in the quarter, continuing our great start to the year. At Cable, our performance was exceptional, highlighted by 11% revenue and 15% Adjusted EBITDA growth, the best broadband and total customer relationship net additions on record for a second quarter, and the most wireless net additions since the launch of Xfinity Mobile in 2017. At NBCUniversal, Adjusted EBITDA increased an impressive 13%, fueled by the recovery at Theme Parks, particularly at Universal Orlando. And I am pleased with and encouraged by our customer and financial metrics in the U.K., which drove Sky’s double-digit total revenue growth in the quarter. We remain committed to innovating for our customers and investing for a strong future. I have great confidence in our strategy and our ability to execute, which is reflected in our decision to restart our share repurchase program during the quarter, earlier than previously planned," commented Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation.
($ in millions, except per share data)
2nd QuarterYear to Date
Consolidated Results20212020Change20212020Change
Revenue $28,546 $23,715 20.4 %$55,751 $50,324 10.8 %
Net Income Attributable to Comcast$3,738 $2,988 25.1 %$7,067 $5,135 37.6 %
Adjusted Net Income1
$3,943 $3,170 24.3 %$7,472 $6,436 16.1 %
Adjusted EBITDA2
$8,927 $7,927 12.6 %$17,339 $16,057 8.0 %
Earnings per Share3
$0.80 $0.65 23.1 %$1.51 $1.11 36.0 %
Adjusted Earnings per Share1
$0.84 $0.69 21.7 %$1.60 $1.40 14.3 %
Net Cash Provided by Operating Activities$7,606 $8,643 (12.0 %)$15,357 $14,467 6.2 %
Free Cash Flow4
$4,791 $5,966 (19.7 %)$10,071 $9,291 8.4 %
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.
2nd Quarter 2021 Highlights:
Consolidated Adjusted EBITDA Increased 12.6% to $8.9 Billion; Adjusted EPS Increased 21.7% to $0.84; Generated Free Cash Flow of $4.8 Billion
Resumed Share Repurchase Program in May, Earlier Than Previously Planned; Returned $1.7 Billion to Shareholders During the Quarter Through a Combination of Share Repurchases and Dividend Payments
Cable Communications Total Customer Relationship Net Additions Were 294,000, the Best Second Quarter Result on Record; Total Broadband Customer Net Additions Were 354,000, the Best Second Quarter Result on Record
Cable Communications Adjusted EBITDA Increased 14.5% and Adjusted EBITDA per Customer Relationship Increased 8.9%
Cable Communications Wireless Customer Line Net Additions Were 280,000, the Best Quarterly Result on Record
NBCUniversal Adjusted EBITDA Increased 12.5% to $1.6 billion, Including Peacock Losses
Theme Parks Delivered Its First Profitable Quarter Since the First Quarter of 2020, Driven by Universal Orlando
Sky Revenue Increased 28.0% to $5.2 billion; On a Constant Currency Basis, Revenue Increased 14.9%




Consolidated Financial Results
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Revenue for the second quarter of 2021 increased 20.4% to $28.5 billion. Net Income Attributable to Comcast increased 25.1% to $3.7 billion. Adjusted Net Income increased 24.3% to $3.9 billion. Adjusted EBITDA increased 12.6% to $8.9 billion.

For the six months ended June 30, 2021, revenue increased 10.8% to $55.8 billion compared to 2020. Net income attributable to Comcast increased 37.6% to $7.1 billion. Adjusted Net Income increased 16.1% to $7.5 billion. Adjusted EBITDA increased 8.0% to $17.3 billion.

Earnings per Share (EPS) for the second quarter of 2021 was $0.80, an increase of 23.1% compared to the prior year period. Adjusted EPS increased 21.7% to $0.84.

For the six months ended June 30, 2021, EPS was $1.51, a 36.0% increase compared to 2020. Adjusted EPS increased 14.3% to $1.60.

Capital Expenditures increased 3.3% to $2.1 billion in the second quarter of 2021. Cable Communications’ capital expenditures increased 16.8% to $1.7 billion. NBCUniversal’s capital expenditures decreased 52.0% to $182 million. Sky's capital expenditures decreased 14.4% to $184 million.

For the six months ended June 30, 2021, capital expenditures increased 1.2% to $4.0 billion compared to 2020. Cable Communications' capital expenditures increased 12.7% to $3.1 billion. NBCUniversal's capital expenditures decreased 53.2% to $354 million. Sky's capital expenditures increased 10.4% to $455 million.

Net Cash Provided by Operating Activities was $7.6 billion in the second quarter of 2021. Free Cash Flow was $4.8 billion.

For the six months ended June 30, 2021, net cash provided by operating activities was $15.4 billion. Free cash flow was $10.1 billion.

Dividends and Share Repurchases. Comcast resumed its share repurchase program in May 2021 after pausing the program in 2019 to accelerate the reduction of indebtedness it incurred in connection with its acquisition of Sky. During the second quarter of 2021, Comcast paid dividends totaling $1.2 billion and repurchased 8.8 million of its common shares for $500 million. As of June 30, 2021, Comcast had $9.5 billion available under its share repurchase authorization.

For the six months ended June 30, 2021, Comcast paid dividends totaling $2.2 billion and repurchased 8.8 million of its common shares for $500 million.

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Cable Communications
($ in millions)
2nd QuarterYear to Date
20212020Change20212020Change
Cable Communications Revenue
Broadband$5,717$5,00014.3 %$11,317$10,00113.2 %
Video5,5545,4152.6 %11,17711,0471.2 %
Voice870877(0.8 %)1,7411,776(2.0 %)
Wireless55632670.4 %1,06966959.8 %
Business Services2,2022,0049.9 %4,3694,0478.0 %
Advertising67942858.6 %1,29698531.6 %
Other42537812.4 %8388212.1 %
Cable Communications Revenue $16,002$14,42810.9 %$31,807$29,3468.4 %
Cable Communications Adjusted EBITDA$7,073$6,17614.5 %$13,903$12,25213.5 %
Adjusted EBITDA Margin44.2 %42.8 %43.7 %41.7 %
Cable Communications Capital Expenditures$1,695$1,45216.8 %$3,065$2,72112.7 %
Percent of Cable Communications Revenue10.6 %10.1 %9.6 %9.3 %

Revenue for Cable Communications increased 10.9% to $16.0 billion in the second quarter of 2021, driven by increases in broadband, advertising, wireless, business services, video and other revenue, partially offset by a decrease in voice revenue. In the prior year period, results were negatively impacted by COVID-19, including accrued customer regional sports network (RSN) fee adjustments, reduced advertising revenue and lower revenue due to Xfinity's commitment to the FCC's Keep Americans Connected Pledge and our efforts to assist customers during the COVID-19 public health crisis. Excluding the impact of accrued customer RSN fee adjustments in the prior year period5, Cable Communications revenue increased 9.3%. Broadband revenue increased 14.3% due to an increase in the number of residential broadband customers and an increase in average rates. Excluding the impact of accrued RSN fee adjustments in the prior year period for customers taking bundled services5, broadband revenue increased 12.6%. Advertising revenue increased 58.6%, primarily reflecting an overall market recovery in the current period and reduced spending from advertisers in the prior year period as a result of COVID-19. Excluding political advertising revenue, advertising revenue increased 60.4%. Wireless revenue increased 70.4% due to an increase in the number of customer lines and an increase in device sales. Business services revenue increased 9.9%, primarily due to an increase in average rates compared to the prior year period which was negatively impacted by COVID-19. Video revenue increased 2.6%, reflecting an increase in average rates, partially offset by a decrease in the number of residential video customers. Excluding the impact of accrued customer RSN fee adjustments in the prior year period5, video revenue increased 0.5%. Other revenue increased 12.4%, primarily reflecting increases in revenue from our security and automation services and from licensing of our technology platforms. Voice revenue decreased 0.8%, primarily reflecting a decrease in the number of residential voice customers, partially offset by an increase in average rates.

For the six months ended June 30, 2021, Cable revenue increased 8.4% to $31.8 billion compared to 2020, driven by growth in broadband, wireless, business services, advertising, video and other revenue, partially offset by a decrease in voice revenue. Excluding the impact of accrued customer RSN fee adjustments in 20205, Cable Communications revenue increased 7.6%.

Total Customer Relationships increased by 294,000 to 33.8 million in the second quarter of 2021. Residential customer relationships increased by 277,000 and business customer relationships increased by 17,000. Total broadband customer net additions were 354,000, total video customer net losses were 399,000 and total voice customer net losses were 108,000. In addition, Cable Communications added 280,000 wireless lines in the quarter.

For the six months ended June 30, 2021, total customer relationships increased by 675,000. Residential customer relationships increased by 647,000 and business customer relationships increased by 28,000. Total broadband customer net additions were 814,000, total video customer net losses were 889,000 and total voice customer net losses were 214,000. In addition, Cable Communications added 558,000 wireless lines in the current period.
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(in thousands)
Net Additions / (Losses)
2nd QuarterYear to Date
2Q21
2Q206
2021202020212020
Customer Relationships
Residential Customer Relationships31,339 29,724 277 241 647 601 
Business Services Customer Relationships2,454 2,384 17 (24)28 (12)
Total Customer Relationships33,793 32,108 294 217 675 589 
Residential Customer Relationships Mix
One Product Residential Customers13,477 11,306 480 531 1,069 1,085 
Two Product Residential Customers8,562 8,742 (83)(107)(173)(181)
Three or More Product Residential Customers9,299 9,676 (120)(184)(250)(303)
Residential Broadband Customers29,108 27,194 334 340 782 806 
Business Services Broadband Customers2,280 2,209 20 (17)32 (6)
Total Broadband Customers31,388 29,403 354 323 814 800 
Residential Video Customers18,225 19,473 (364)(427)(768)(814)
Business Services Video Customers731 894 (34)(51)(121)(72)
Total Video Customers18,956 20,367 (399)(477)(889)(887)
Residential Voice Customers9,412 9,698 (121)(142)(233)(236)
Business Services Voice Customers1,376 1,331 13 (16)19 (12)
Total Voice Customers10,788 11,029 (108)(158)(214)(248)
Total Wireless Lines3,383 2,393 280 126 558 342 

Adjusted EBITDA for Cable Communications increased 14.5% to $7.1 billion in the second quarter of 2021, reflecting higher revenue, partially offset by an 8.2% increase in operating expenses. In the prior year period, total operating expenses benefited from adjustments for provisions in our programming distribution agreements with RSNs related to canceled sporting events as a result of COVID-19. In the second quarter of 2021, programming costs increased 12.1%, including the effects of the adjustment provisions in the prior year period. Excluding these adjustments5, programming costs increased 5.0%, reflecting the timing of contract renewals, partially offset by a decline in the number of video subscribers. Non-programming expenses increased 5.7%, primarily reflecting higher technical and product support expenses and advertising, marketing and promotion expenses, partially offset by lower other expenses and customer service expenses. Non-programming expenses per customer relationship increased 0.5%. Adjusted EBITDA per customer relationship increased 8.9%, and Adjusted EBITDA margin was 44.2% compared to 42.8% in the prior year period. While the accrued RSN adjustments did not impact Adjusted EBITDA in the prior year period, they resulted in an increase to Adjusted EBITDA margin. Cable Communications results include Adjusted EBITDA7 of $68 million from our wireless business, compared to a loss of $37 million in the prior year period.

For the six months ended June 30, 2021, Cable Adjusted EBITDA increased 13.5% to $13.9 billion compared to 2020, reflecting higher revenue, partially offset by a 4.7% increase in operating expenses. Programming costs increased 8.7%, reflecting the timing of contract renewals and adjustments in 2020 for provisions in our programming distribution agreements with RSNs related to canceled sporting events as a result of COVID-19, partially offset by a decline in the number of video subscribers. Excluding the impact of accrued RSN adjustments in 20205, programming costs increased 5.3%. Non-programming expenses increased 2.2%. For the six months ended June 30, 2021, Adjusted EBITDA per customer relationship increased 7.9%, and Adjusted EBITDA margin was 43.7% compared to 41.7% in 2020. While the accrued RSN adjustments did not impact Adjusted EBITDA for the six months ended June 30, 2020, they resulted in an increase to Adjusted EBITDA margin in that period. Cable Communications results include Adjusted EBITDA7 of $74 million from our wireless business, compared to a loss of $96 million in 2020.

Capital Expenditures for Cable Communications increased 16.8% to $1.7 billion in the second quarter of 2021, primarily reflecting increased investment in scalable infrastructure, customer premise equipment and line extensions. Cable capital expenditures represented 10.6% of Cable revenue in the second quarter of 2021 compared to 10.1% in the prior year period.

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For the six months ended June 30, 2021, Cable capital expenditures increased 12.7% to $3.1 billion, primarily reflecting increased investment in scalable infrastructure. Cable capital expenditures represented 9.6% of Cable revenue compared to 9.3% in 2020.

NBCUniversal
($ in millions)
2nd QuarterYear to Date
20212020Change20212020Change
NBCUniversal Revenue
Media$5,148 $4,096 25.7 %$10,184 $8,974 13.5 %
Studios2,224 2,052 8.4 %4,620 4,461 3.6 %
Theme Parks1,095 136 NM1,714 1,061 61.5 %
Headquarters and other$22 11 97.4 %38 20 92.3 %
Eliminations(534)(580)7.8 %(1,576)(1,072)(47.1 %)
NBCUniversal Revenue$7,955 $5,715 39.2 %$14,980 $13,444 11.4 %
NBCUniversal Adjusted EBITDA
Media$1,378 $1,636 (15.8 %)$2,851 $3,165 (9.9 %)
Studios156 323 (51.7 %)653 623 4.8 %
Theme Parks221 (393)NM159 (306)NM
Headquarters and other(186)(82)(127.3 %)(395)(303)(30.3 %)
Eliminations(15)(104)85.6 %(225)(110)(103.0 %)
NBCUniversal Adjusted EBITDA$1,553 $1,380 12.5 %$3,043 $3,069 (0.8 %)
NM=comparison not meaningful.
Beginning in the first quarter of 2021, the operations of Peacock, which were previously reported in Corporate and Other, are now included with NBCUniversal results and the operations of NBCUniversal are now presented in three reportable business segments: Media, Studios and Theme Parks. Prior periods have been adjusted to reflect this presentation.

Revenue for NBCUniversal increased 39.2% to $8.0 billion in the second quarter of 2021. Adjusted EBITDA increased 12.5% to $1.6 billion.

For the six months ended June 30, 2021, NBCUniversal revenue increased 11.4% to $15.0 billion compared to 2020. Adjusted EBITDA decreased 0.8% to $3.0 billion.

Media
Media revenue increased 25.7% to $5.1 billion in the second quarter of 2021, reflecting higher advertising revenue, distribution revenue and other revenue. Advertising revenue increased 32.8%, reflecting an increase in the number of sporting events and higher pricing in the current period, and reduced spending from advertisers in the prior year period as a result of COVID-19, including from the postponement or cancellation of sporting events. These increases were partially offset by ratings declines. Distribution revenue increased 19.0%, driven by contractual rate increases in the current period and credits accrued at some of our RSNs in the prior year period resulting from the reduced number of games played by professional sports leagues in 2020 due to COVID-19, partially offset by a decline in subscribers at our networks. Other revenue increased 31.1% due to an increase in revenue from our digital properties. Adjusted EBITDA decreased 15.8% to $1.4 billion in the second quarter of 2021, reflecting higher revenue, more than offset by higher operating expenses. The increase in operating expenses was primarily driven by higher programming and production expenses, reflecting higher sports programming costs due to an increase in the number of sporting events compared to the prior year period when sports were postponed due to COVID-19, as well as higher amortization expense related to programming at Peacock. Media results include $122 million of revenue and an Adjusted EBITDA7 loss of $363 million related to Peacock, compared to $6 million of revenue and an Adjusted EBITDA7 loss of $117 million in the prior year period.

For the six months ended June 30, 2021, revenue from the Media segment increased 13.5% to $10.2 billion compared to 2020, reflecting higher distribution revenue, advertising revenue and other revenue. Adjusted EBITDA decreased 9.9% to $2.9 billion compared to 2020, reflecting higher operating expenses, which more than offset higher revenue. The increase in operating expenses was primarily driven by higher programming and production expenses, reflecting higher sports programming costs due to an increase in the number of sporting events in the current period, and amortization of content at Peacock.
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Media results include $213 million of revenue and an Adjusted EBITDA7 loss of $640 million related to Peacock, compared to $6 million of revenue and an Adjusted EBITDA7 loss of $176 million in 2020.

Studios
Studios revenue increased 8.4% to $2.2 billion in the second quarter of 2021, primarily reflecting higher theatrical revenue. Theatrical revenue increased by $191 million, reflecting the comparison to the higher level of theater closures and theaters operating at reduced capacity due to COVID-19 in the prior year period, and the success of releases in this year’s second quarter, including F9. Adjusted EBITDA decreased 51.7% to $156 million in the second quarter of 2021, reflecting higher operating expenses, which more than offset higher revenue. The increase in operating expenses was driven by higher programming and production expenses reflecting an increase in television series production and comparisons to the prior year period when production was paused due to COVID-19, as well as higher advertising, marketing and promotion expenses reflecting a higher number of theatrical releases in the current period.

For the six months ended June 30, 2021, revenue from the Studios segment increased 3.6% to $4.6 billion compared to 2020, reflecting higher content licensing revenue, partially offset by lower theatrical revenue and home entertainment and other revenue. Adjusted EBITDA increased 4.8% to $653 million compared to 2020, reflecting higher revenue, partially offset by higher operating expenses.

Theme Parks
Theme Parks revenue increased $958 million to $1.1 billion in the second quarter of 2021, reflecting improved operating conditions compared to the prior year period, when each of our theme parks were closed for either the majority or entirety of the period as a result of COVID-19. Theme Parks Adjusted EBITDA was $221 million in the second quarter of 2021, which included pre-opening costs related to Universal Beijing Resort, compared to a $393 million Adjusted EBITDA loss in the prior year period.

For the six months ended June 30, 2021, revenue from the Theme Parks segment increased 61.5% to $1.7 billion compared to 2020, reflecting improved operating conditions compared to 2020, when each of our theme parks were either closed or operating at limited capacity as a result of COVID-19. Theme Parks Adjusted EBITDA was $159 million, which included pre-opening costs related to Universal Beijing Resort, compared to a $306 million Adjusted EBITDA loss in 2020.

Headquarters and Other
NBCUniversal Headquarters and Other includes overhead, personnel costs and costs associated with corporate initiatives. Headquarters and Other Adjusted EBITDA loss was $186 million compared to a loss of $82 million in the prior year period.

For the six months ended June 30, 2021, Headquarters and Other Adjusted EBITDA loss was $395 million compared to a loss of $303 million in 2020.

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 for the quarter ended June 30, 2021 were $534 million compared to $580 million in the prior year period, and Adjusted EBITDA eliminations were $15 million compared to $104 million in the prior year period.

For the six months ended June 30, 2021, revenue eliminations were $1.6 billion compared to $1.1 billion in 2020, and Adjusted EBITDA eliminations were $225 million compared to $110 million in 2020.
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Sky
($ in millions)
2nd QuarterYear to Date
20212020Change
Constant
Currency
Change8
20212020Change
Constant
Currency
Change8
Sky Revenue
Direct-to-Consumer$4,222$3,52419.9 %7.7 %$8,288$7,20315.1 %4.7 %
Content35523451.6 %36.1 %71355927.6 %16.3 %
Advertising64332199.8 %78.8 %1,21683445.8 %33.0 %
Sky Revenue $5,220$4,07928.0 %14.9 %$10,217$8,59618.9 %8.2 %
Sky Operating Costs and Expenses$4,660$3,33040.0 %25.5 %$9,294$7,29627.4 %16.0 %
Sky Adjusted EBITDA$560$749(25.3 %)(32.4 %)$924$1,300(29.0 %)(35.4 %)
Adjusted EBITDA Margin10.7 %18.4 %9.0 %15.1 %

Revenue for Sky increased 28.0% to $5.2 billion in the second quarter of 2021. Excluding the impact of currency, revenue increased 14.9%, reflecting higher direct-to-consumer revenue, advertising revenue and content revenue. Direct-to-consumer revenue increased 7.7% to $4.2 billion, primarily driven by higher average revenue per customer relationship due to lower sports subscription revenues in the prior year period when sports were postponed due to COVID-19, as well as a rate increase in the U.K. Advertising revenue increased 78.8% to $643 million, reflecting an overall market recovery from COVID-19 as well as an increase in the number of sporting events in the current period. Content revenue increased 36.1% to $355 million, primarily due to higher wholesale revenue from sports programming compared to the prior year period when sports were postponed due to COVID-19.

For the six months ended June 30, 2021, Sky revenue increased 18.9% to $10.2 billion compared to 2020. Excluding the impact of currency, revenue increased 8.2%, reflecting higher direct-to-consumer revenue, advertising revenue and content revenue.

Total Customer Relationships decreased by 248,000 to 23.2 million in the second quarter of 2021. For the six months ended June 30, 2021, total customer relationships decreased by 26,000.

(in thousands)
CustomersNet Additions / (Losses)
2nd QuarterYear to Date
2Q21
2Q209
2021202020212020
Total Customer Relationships23,198 23,002 (248)(214)(26)(278)

Adjusted EBITDA for Sky decreased 25.3% to $560 million in the second quarter of 2021. Excluding the impact of currency, Adjusted EBITDA decreased 32.4%, reflecting higher operating expenses, which more than offset higher revenue. The increase in operating expenses was primarily driven by higher programming and production expenses, reflecting higher sports programming costs due to an increase in the number of sporting events compared to the prior year period when sports were postponed due to COVID-19.

For the six months ended June 30, 2021, Sky Adjusted EBITDA decreased 29.0% to $924 million compared to 2020. Excluding the impact of currency, Adjusted EBITDA decreased 35.4%.

Corporate, Other and Eliminations
Corporate and Other
Corporate and Other primarily relates to corporate operations and Comcast Spectacor. Revenue for the quarter ended June 30, 2021 was $92 million compared to $40 million in the prior year period. Corporate and Other Adjusted EBITDA loss was $261 million compared to a loss of $389 million in the prior year period, reflecting certain costs incurred in the second quarter of 2020 in response to COVID-19, including severance charges related to our businesses, which are presented in Corporate and Other.
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For the six months ended June 30, 2021, Corporate and Other revenue was $181 million compared to $160 million in 2020. Corporate and Other Adjusted EBITDA loss was $541 million compared to a loss of $582 million in 2020.

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 for the quarter ended June 30, 2021 were $723 million compared to $547 million in the prior year period, and Adjusted EBITDA eliminations were a benefit of $2 million compared to a benefit of $11 million in the prior year period.

For the six months ended June 30, 2021, revenue eliminations were $1.4 billion compared to $1.2 billion in 2020, and Adjusted EBITDA eliminations were a benefit of $11 million compared to $18 million in 2020.

Notes:

1We 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.
2We 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.
3All earnings per share amounts are presented on a diluted basis.
4We 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 related to certain capital or intangible assets, such as the construction of Universal Beijing Resort, are presented separately in our Consolidated Statement of Cash Flows and are therefore excluded from capital expenditures and cash paid for intangible assets for Free Cash Flow. See Table 4 for reconciliation of non-GAAP financial measure.
5Cable Communications reported results for 2020 include the impacts of RSN related adjustments, affecting period-to-period comparability of our operating performance. We also present adjusted information, excluding the impacts of the RSN related adjustments. See Table 7 for reconciliations of non-GAAP financial measures.
6In the first quarter of 2021, we updated Cable Communications' total residential customer relationships and broadband customers due to a conforming change to methodology resulting in a reduction of approximately 26,000 customers. There was no impact to net additions and prior periods have been recast on a comparable basis.
7Adjusted EBITDA is the measure of profit or loss for our segments. From time to time, we may present Adjusted EBITDA for components of our reportable segments, such as Peacock and the wireless business within Cable Communications. We believe these measures are useful to evaluate our financial results and provide a basis of comparison to others, although our definition of Adjusted EBITDA may not be directly comparable to similar measures used by other companies. Adjusted EBITDA for components are generally presented on a consistent basis with the respective segments and include direct revenue and operating costs and expenses attributed to the component operations.
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8Sky 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.
9In the first quarter of 2021, we implemented conforming changes in the methodology for counting commercial customer relationships in Italy and Germany, which are now counted on a consistent basis with customers in the United Kingdom. The change resulted in a reduction in Sky’s total customer relationships of 714,000 as of December 31, 2020. The impact of the change in methodology to customer relationship net additions for any period was not material. For comparative purposes, we have recast Sky’s historical total customer relationships to reflect this adjustment.
Numerical information is presented on a rounded basis using actual amounts. Minor differences in total and percentage calculations may exist due to rounding.
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Conference Call and Other Information
Comcast Corporation will host a conference call with the financial community today, July 29, 2021 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 (833) 618-9487 with the conference ID number 2883365. A replay of the call will be available starting at 12:00 p.m. ET on July 29, 2021, on the Investor Relations website or by telephone. To access the telephone replay, which will be available until Thursday, August 5, 2021 at midnight ET, please dial (855) 859-2056 and enter the conference ID number 2883365.

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.

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

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Caution Concerning Forward-Looking Statements
This press release includes statements that may constitute forward-looking statements. 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. 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). We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise.

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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.

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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 broadband, aggregation, and streaming with over 56 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.
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TABLE 1
Condensed Consolidated Statement of Income (Unaudited)
Three Months EndedSix Months Ended
(in millions, except per share data)June 30,June 30,
2021202020212020
Revenue$28,546 $23,715 $55,751 $50,324 
Costs and expenses
Programming and production 9,256 6,817 18,175 15,118 
Other operating and administrative8,549 7,646 16,818 15,900 
Advertising, marketing and promotion1,851 1,341 3,467 3,279 
Depreciation2,113 2,099 4,231 4,206 
Amortization1,270 1,165 2,514 2,322 
23,039 19,068 45,205 40,825 
Operating income5,507 4,647 10,546 9,499 
Interest expense(1,093)(1,112)(2,112)(2,324)
Investment and other income (loss), net
Equity in net income (losses) of investees, net959 300 1,095 (368)
Realized and unrealized gains (losses) on equity securities, net189 426 (53)
Other income (loss), net69 115 87 125 
1,216 420 1,607 (296)
Income before income taxes 5,630 3,955 10,042 6,879 
Income tax expense(2,000)(946)(3,119)(1,646)
Net income 3,630 3,009 6,922 5,233 
Less: Net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock
(108)21 (145)98 
Net income attributable to Comcast Corporation$3,738 $2,988 $7,067 $5,135 
Diluted earnings per common share attributable to Comcast Corporation shareholders
$0.80 $0.65 $1.51 $1.11 
Diluted weighted-average number of common shares4,673 4,607 4,669 4,611 

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TABLE 2
Consolidated Statement of Cash Flows (Unaudited)
Six Months Ended
(in millions)June 30,
20212020
OPERATING ACTIVITIES
Net income $6,922 $5,233 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization6,745 6,528 
Share-based compensation711 621 
Noncash interest expense (income), net210 352 
Net (gain) loss on investment activity and other(1,403)399 
Deferred income taxes1,297 (84)
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:
Current and noncurrent receivables, net137 900 
Film and television costs, net837 573 
Accounts payable and accrued expenses related to trade creditors299 (879)
Other operating assets and liabilities(398)824 
Net cash provided by operating activities15,357 14,467 
INVESTING ACTIVITIES
Capital expenditures(4,003)(3,957)
Cash paid for intangible assets(1,283)(1,219)
Construction of Universal Beijing Resort(704)(708)
Acquisitions, net of cash acquired(168)(198)
Proceeds from sales of businesses and investments396 2,042 
Purchases of investments (86)(471)
Other217 33 
Net cash provided by (used in) investing activities(5,631)(4,478)
FINANCING ACTIVITIES
Proceeds from borrowings383 13,612 
Repurchases and repayments of debt(5,785)(10,712)
Repurchases of common stock under repurchase program and employee plans(957)(269)
Dividends paid(2,230)(2,028)
Other(475)(2,128)
Net cash provided by (used in) financing activities(9,064)(1,525)
Impact of foreign currency on cash, cash equivalents and restricted cash(12)(77)
Increase (decrease) in cash, cash equivalents and restricted cash650 8,387 
Cash, cash equivalents and restricted cash, beginning of period11,768 5,589 
Cash, cash equivalents and restricted cash, end of period$12,418 $13,976 
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TABLE 3
Condensed Consolidated Balance Sheet (Unaudited)
(in millions)June 30,December 31,
20212020
ASSETS
Current Assets
Cash and cash equivalents$12,378 $11,740 
Receivables, net11,110 11,466 
Other current assets3,558 3,535 
Total current assets27,046 26,741 
Film and television costs12,372 13,340 
Investments8,903 7,820 
Investment securing collateralized obligation564 447 
Property and equipment, net52,769 51,995 
Goodwill70,429 70,669 
Franchise rights59,365 59,365 
Other intangible assets, net34,321 35,389 
Other noncurrent assets, net11,235 8,103 
$277,004 $273,869 
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued expenses related to trade creditors$11,672 $11,364 
Accrued participations and residuals1,713 1,706 
Deferred revenue3,566 2,963 
Accrued expenses and other current liabilities8,956 9,617 
Current portion of long-term debt3,407 3,146 
Total current liabilities29,314 28,796 
Long-term debt, less current portion95,175 100,614 
Collateralized obligation5,169 5,168 
Deferred income taxes29,525 28,051 
Other noncurrent liabilities20,775 18,222 
Redeemable noncontrolling interests and redeemable subsidiary preferred stock530 1,280 
Equity
Comcast Corporation shareholders' equity94,935 90,323 
Noncontrolling interests1,581 1,415 
Total equity96,516 91,738 
$277,004 $273,869 
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TABLE 4
Reconciliation from Net Income Attributable to Comcast Corporation to Adjusted EBITDA (Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(in millions)2021202020212020
Net income attributable to Comcast Corporation$3,738 $2,988 $7,067 $5,135 
Net income (loss) attributable to noncontrolling interests and redeemable subsidiary preferred stock(108)21 (145)98 
Income tax expense2,000 946 3,119 1,646 
Interest expense1,093 1,112 2,112 2,324 
Investment and other (income) loss, net(1,216)(420)(1,607)296 
Depreciation and amortization3,383 3,264 6,745 6,528 
Adjustments (1)
36 16 48 30 
Adjusted EBITDA$8,927 $7,927 $17,339 $16,057 
Reconciliation from Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(in millions)2021202020212020
Net cash provided by operating activities$7,606 $8,643 $15,357 $14,467 
Capital expenditures(2,144)(2,076)(4,003)(3,957)
Cash paid for capitalized software and other intangible assets(671)(601)(1,283)(1,219)
Free Cash Flow$4,791 $5,966 $10,071 $9,291 
Alternate Presentation of Free Cash Flow (Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(in millions)2021202020212020
Adjusted EBITDA$8,927 $7,927 $17,339 $16,057 
Capital expenditures(2,144)(2,076)(4,003)(3,957)
Cash paid for capitalized software and other intangible assets(671)(601)(1,283)(1,219)
Cash interest expense(998)(945)(1,909)(1,936)
Cash taxes (1,745)(52)(1,832)(333)
Changes in operating assets and liabilities1,068 1,378 892 (15)
Noncash share-based compensation338 323 711 621 
Other (2)
17 12 156 73 
Free Cash Flow$4,791 $5,966 $10,071 $9,291 
(1)
2nd quarter and year to date 2021 Adjusted EBITDA exclude $36 million and $48 million of other operating and administrative expense, respectively, related to the Sky transaction and costs related to our investment portfolio. 2nd quarter and year to date 2020 Adjusted EBITDA exclude $16 million and $30 million of other operating and administrative expense, respectively, related to the Sky transaction.
(2)2nd quarter and year to date 2021 include decreases of $36 million and $48 million, respectively, related to costs that are excluded from Adjusted EBITDA. 2nd quarter and year to date 2020 include decreases of $16 million and $30 million, respectively, related to costs that are excluded from Adjusted EBITDA.

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TABLE 5
Reconciliations of Adjusted Net Income and Adjusted EPS (Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2021202020212020
(in millions, except per share data)
$EPS$EPS$EPS$EPS
Net income attributable to Comcast Corporation and diluted earnings per share attributable to Comcast Corporation shareholders$3,738$0.80$2,988$0.65$7,067$1.51$5,135$1.11
Change 25.1 %23.1 %37.6 %36.0 %
Amortization of acquisition-related intangible assets (1)
4720.104490.109490.219070.20 
Investments (2)
(835)(0.18)(280)(0.06)(1,122)(0.24)2640.06 
Items affecting period-over-period comparability:
Loss on early redemption of debt (4)
590.01— — 590.01106 0.02 
Income tax adjustments (3)
4980.11— — 4980.11— 
Costs related to Sky transaction (5)
11 13— 21 240.01 
Adjusted Net income and Adjusted EPS
$3,943$0.84$3,170$0.69$7,472$1.60$6,436$1.40
Change 24.3 %21.7 %16.1 %14.3 %
(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
June 30,
Six Months Ended
June 30,
2021202020212020
Amortization of acquisition-related intangible assets before income taxes$586 $565 $1,178$1,140
Amortization of acquisition-related intangible assets, net of tax$472 $449$949$907
(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 certain equity method investments, including Atairos and Hulu.
Three Months Ended
June 30,
Six Months Ended
June 30,
2021202020212020
Realized and unrealized (gains) losses on equity securities, net($189)($5)($426)$53 
Equity in net (income) losses of investees, net(917)(367)(1,050)296 
Investments before income taxes(1,106)(372)(1,476)349 
Investments, net of tax($835)($280)($1,122)$264 
(3)2nd quarter and year to date 2021 net income attributable to Comcast Corporation includes $498 million of income tax expense adjustments related to UK tax law changes.
(4)2021 year to date net income attributable to Comcast Corporation includes $78 million of interest expense, $59 million net of tax, resulting from the early redemption of debt. 2020 year to date net income attributable to Comcast Corporation includes $140 million of interest expense, $106 million net of tax, resulting from the early redemption of debt.
(5)2nd quarter and year to date 2021 net income attributable to Comcast Corporation includes $13 million and $25 million of operating costs and expenses, $11 million and $21 million net of tax, respectively, related to the Sky transaction. 2nd quarter and year to date 2020 net income attributable to Comcast Corporation includes $16 million and $30 million of operating costs and expenses, $13 million and $24 million net of tax, respectively, related to the Sky transaction.

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TABLE 6
Reconciliation of Sky Constant Currency Growth (Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(in millions)2021
2020(1)
Change2021
2020(1)
Change
Direct-to-Consumer$4,222 $3,921 7.7 %$8,288 $7,914 4.7 %
Content355 261 36.1 %713 613 16.3 %
Advertising643 359 78.8 %1,216 914 33.0 %
Revenue$5,220 $4,541 14.9 %$10,217 $9,441 8.2 %
Operating costs and expenses$4,660 $3,714 25.5 %$9,294 $8,012 16.0 %
Adjusted EBITDA$560 $828 (32.4 %)$924 $1,429 (35.4 %)

(1)2020 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.


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TABLE 7
Reconciliation of Cable Communications RSN Adjustments (Unaudited)
Three Months Ended
June 30, 2021
Six Months Ended
June 30, 2021
Reported Change2020 RSN Adjustments Adjusted ChangeReported Change2020 RSN AdjustmentsAdjusted Change
Revenue
Broadband14.3 %1.8 %12.6 %13.2 %0.9 %12.3 %
Video2.6 %2.1 %0.5 %1.2 %1.0 %0.2 %
Total Revenue10.9 %1.6 %9.3 %8.4 %0.8 %7.6 %
Expenses
Programming and production12.1 %7.1 %5.0 %8.7 %3.4 %5.3 %
Adjusted EBITDA14.5 %— 14.5 %13.5 %— 13.5 %
Adjusted EBITDA margin140 bps(60 bps)200 bps200 bps(30 bps)230 bps
Note: Percentages represent year/year growth rates. Adjusted EBITDA margin as a percent of Revenue is presented as year/year basis point changes.

































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Ticker: CMCSA
CIK: 1166691
Form Type: 8-K Corporate News
Accession Number: 0001166691-21-000027
Submitted to the SEC: Thu Jul 29 2021 7:07:20 AM EST
Accepted by the SEC: Thu Jul 29 2021
Period: Thursday, July 29, 2021
Industry: Cable And Other Pay Television Services
Events:
  1. Earnings Release
  2. Financial Exhibit

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