Comcast (CMCSA) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $29.7 billion, down 2.7% year-over-year, with net income at $3.9 billion, down 7.5%; Adjusted EPS grew 7% to $1.21, and Adjusted EBITDA was $10.2 billion, nearly flat year-over-year.

• Free cash flow was $1.3 billion, impacted by a $2 billion tax payment related to the Hulu transaction.

• Returned $3.4 billion to shareholders in Q2 via $2.2 billion in share repurchases and $1.2 billion in dividends; share count reduced by over 6% in the past 12 months.

• Connectivity & Platforms Adjusted EBITDA margin reached a record 41.9%, with residential connectivity revenue up 6% and domestic wireless up 17%.

• Peacock paid subscribers grew 38% to 33 million, with revenue up 28% to $1.0 billion.

Financial highlights

• Adjusted EBITDA was $10.2 billion, nearly flat year-over-year; Adjusted EPS grew 7% to $1.21.

• Free cash flow was $1.3 billion in Q2, impacted by higher cash taxes.

• Capital expenditures decreased 8.1% to $2.7 billion.

• Net income attributable to Comcast was $3.9 billion, down 7.5% year-over-year.

• $3.4 billion was returned to shareholders through dividends and share repurchases.

Outlook and guidance

• Broadband ARPU growth expected to remain within the historical 3%-4% range for the rest of the year.

• Most ACP-related subscriber losses and non-pay churn expected in Q3, with impact contained within the quarter.

• Theme park attendance challenges likely to persist until Epic Universe opens in 2025, but long-term growth trajectory remains positive.

• Media EBITDA expected to grow modestly in H2, with Q4 benefiting from sports and entertainment launches.

• Management highlighted growth opportunities from the Paris Summer Olympics and Epic Universe opening.