Comcast (CMCSA) Q3 2024 earnings summary

Executive summary

• Revenue grew 6.5% year-over-year to $32.1 billion, driven by record Paris Olympics media revenue and strong Peacock subscriber and revenue growth, while net income declined 10.3% to $3.6 billion and adjusted EBITDA fell 2.3% to $9.7 billion.

• Free cash flow reached $3.4 billion, with $3.2 billion returned to shareholders via $2 billion in share repurchases and $1.2 billion in dividends; share count reduced by 6% over the last 12 months.

• Connectivity & Platforms revenue was flat at $20.3 billion, while Content & Experiences revenue surged 19.3% to $12.6 billion, led by the Olympics.

• Adjusted EPS rose 3.3% to $1.12, despite a 4.2% decline in reported EPS to $0.94.

• Major highlights included the blockbuster release of Despicable Me 4 and the announcement of Universal Epic Universe theme park opening in May 2025.

Financial highlights

• Adjusted EBITDA margin for Connectivity & Platforms was 40.9%, up 30 bps year-over-year; Business Services Connectivity margin was 57.4%.

• Net income attributable to Comcast was $3.6 billion, down 10.3% year-over-year; diluted EPS was $0.94.

• Free cash flow conversion from Adjusted EBITDA remained strong, with $3.4 billion generated in Q3.

• Capital expenditures were $2.9 billion, down 11.6% year-over-year.

• Net debt at quarter-end was $101.4 billion; cash and equivalents stood at $8.8 billion.

Outlook and guidance

• Universal Epic Universe theme park is set to open in May 2025, with $150 million in pre-opening costs anticipated over Q4 and Q1.

• Management expects residential connectivity revenue growth from higher broadband ARPU and wireless, but continued video revenue declines.

• Ongoing cost reduction actions and capital allocation priorities remain, with a focus on growth investments and maintaining investment grade ratings.

• Company expects to remain in compliance with leverage covenants and maintain strong liquidity.