Comcast Reports 1st Quarter 2021 Results

April 29, 2021 7:00 AM

PHILADELPHIA--(BUSINESS WIRE)-- Comcast Corporation (NASDAQ: CMCSA) today reported results for the quarter ended March 31, 2021.

“We are off to a great start in 2021. Our entire company performed well across the board, highlighted by another strong performance from cable, which posted its third consecutive quarter of double-digit Adjusted EBITDA growth, while adding the most quarterly customer relationships in our company’s history. Outside of cable, I was also very pleased by the persistent recovery and increasing momentum at NBCUniversal and Sky. Our theme parks once again reached breakeven, excluding Universal Beijing Resort pre-opening costs; and – to the delight of our guests – we successfully re-opened Universal Studios Hollywood on April 16th. At Sky, customer relationship additions increased by 221,000, marking the best first quarter result in six years despite the lockdowns imposed throughout Europe. Across all parts of the company, our teams are executing at a high level and collaborating to drive growth and innovation, and I couldn’t be more excited about our future," commented Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation.

($ in millions, except per share data)

1st Quarter

Consolidated Results

2021

2020

Change

Revenue

$27,205

$26,609

2.2

%

Net Income Attributable to Comcast

$3,329

$2,147

55.1

%

Adjusted Net Income1

$3,529

$3,266

8.1

%

Adjusted EBITDA2

$8,413

$8,130

3.5

%

Earnings per Share3

$0.71

$0.46

54.3

%

Adjusted Earnings per Share1

$0.76

$0.71

7.0

%

Net Cash Provided by Operating Activities

$7,751

$5,824

33.1

%

Free Cash Flow4

$5,280

$3,325

58.8

%

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 2021 Highlights:

Consolidated Financial Results

Revenue for the first quarter of 2021 increased 2.2% to $27.2 billion. Net Income Attributable to Comcast increased 55.1% to $3.3 billion. Adjusted Net Income increased 8.1% to $3.5 billion. Adjusted EBITDA increased 3.5% to $8.4 billion.

Earnings per Share (EPS) for the first quarter of 2021 was $0.71, an increase of 54.3% compared to the first quarter of 2020. Adjusted EPS increased 7.0% to $0.76.

Capital Expenditures decreased 1.2% to $1.9 billion in the first quarter of 2021. Cable Communications’ capital expenditures increased 8.0% to $1.4 billion. NBCUniversal’s capital expenditures decreased 54.4% to $172 million. Sky's capital expenditures increased 37.6% to $271 million.

Net Cash Provided by Operating Activities was $7.8 billion in the first quarter of 2021. Free Cash Flow was $5.3 billion.

Dividends paid during the first quarter of 2021 totaled $1.1 billion.

Cable Communications

($ in millions)

1st Quarter

2021

2020

Change

Cable Communications Revenue

Broadband

$5,600

$5,001

12.0

%

Video

5,623

5,632

(0.2

%)

Voice

871

899

(3.1

%)

Wireless

513

343

49.7

%

Business Services

2,167

2,043

6.1

%

Advertising

618

557

10.8

%

Other

413

443

(6.7

%)

Cable Communications Revenue

$15,805

$14,918

5.9

%

Cable Communications Adjusted EBITDA

$6,830

$6,076

12.4

%

Adjusted EBITDA Margin

43.2 %

40.7 %

Cable Communications Capital Expenditures

$1,370

$1,269

8.0

%

Percent of Cable Communications Revenue

8.7 %

8.5 %

Revenue for Cable Communications increased 5.9% to $15.8 billion in the first quarter of 2021, driven by increases in broadband, wireless, business services and advertising revenue, partially offset by decreases in other and voice revenue. Broadband revenue increased 12.0% due to an increase in the number of residential broadband customers and an increase in average rates. Wireless revenue increased 49.7% due to an increase in the number of customer lines and an increase in device sales. Business services revenue increased 6.1%, reflecting an increase in average rates and an increase in the number of customers receiving our services. Advertising revenue increased 10.8%, primarily reflecting higher revenue from our advanced advertising businesses and from recent acquisitions. Excluding political advertising revenue, advertising revenue increased 13.3%. Voice revenue decreased 3.1%, primarily reflecting a decrease in the number of residential voice customers. Other revenue decreased 6.7%, primarily reflecting lower revenue from our security and automation services and a decrease in certain billing and collection fees. Video revenue was consistent with the prior year period, reflecting a decrease in the number of residential video customers offset by an increase in average rates.

Total Customer Relationships increased by 380,000 to 33.5 million in the first quarter of 2021. Residential customer relationships increased by nearly 370,000 and business customer relationships increased by nearly 11,000. Total broadband customer net additions were 461,000, total video customer net losses were 491,000 and total voice customer net losses were 106,000. In addition, Cable Communications added 278,000 wireless lines in the quarter.

(in thousands)

Net Additions

1Q21

1Q205

1Q21

1Q20

Customer Relationships

Residential Customer Relationships

31,062

29,483

370

360

Business Services Customer Relationships

2,437

2,408

11

11

Total Customer Relationships

33,499

31,891

380

371

Residential Customer Relationships Mix

One Product Residential Customers

12,997

10,775

589

554

Two Product Residential Customers

8,645

8,848

(89

)

(75

)

Three or More Product Residential Customers

9,420

9,860

(130

)

(119

)

Residential Broadband Customers

28,774

26,854

448

466

Business Services Broadband Customers

2,261

2,226

12

11

Total Broadband Customers

31,034

29,080

461

477

Residential Video Customers

18,590

19,900

(404

)

(388

)

Business Services Video Customers

765

944

(87

)

(22

)

Total Video Customers

19,355

20,845

(491

)

(409

)

Residential Voice Customers

9,533

9,840

(112

)

(94

)

Business Services Voice Customers

1,363

1,347

6

5

Total Voice Customers

10,896

11,187

(106

)

(89

)

Total Wireless Lines

3,103

2,267

278

216

Adjusted EBITDA for Cable Communications increased 12.4% to $6.8 billion in the first quarter of 2021, reflecting higher revenue, partially offset by a 1.5% increase in operating expenses. Programming costs increased 5.5%, reflecting the timing of contract renewals, partially offset by a decline in the number of video subscribers. Non-programming expenses decreased 1.1%, primarily reflecting lower other expenses, advertising, marketing and promotion expenses and customer service expenses, partially offset by higher franchise and regulatory fees. Non-programming expenses per customer relationship decreased 5.9%. Adjusted EBITDA per customer relationship increased 7.0%, and Adjusted EBITDA margin was 43.2% compared to 40.7% in the first quarter of 2020. Cable Communications results include Adjusted EBITDA6 of $6 million from our wireless business, compared to a loss of $59 million in the prior year period.

Capital Expenditures for Cable Communications increased 8.0% to $1.4 billion in the first quarter of 2021, primarily reflecting increased investment in scalable infrastructure. Cable capital expenditures represented 8.7% of Cable revenue in the first quarter of 2021 compared to 8.5% in last year's first quarter.

NBCUniversal

($ in millions)

1st Quarter

2021

2020

Change

NBCUniversal Revenue

Media

$5,036

$4,878

3.2

%

Studios

2,396

2,409

(0.6

%)

Theme Parks

619

925

(33.1

%)

Headquarters and other

16

9

85.9

%

Eliminations

(1,043)

(492)

(111.5

%)

NBCUniversal Revenue

$7,024

$7,729

(9.1

%)

NBCUniversal Adjusted EBITDA

Media

$1,473

$1,529

(3.7

%)

Studios

497

300

65.7

%

Theme Parks

(61)

87

(170.9

%)

Headquarters and other

(209)

(221)

5.7

%

Eliminations

(210)

(6)

NM

NBCUniversal Adjusted EBITDA

$1,490

$1,689

(11.8

%)

NM=comparison not meaningful.

Beginning in the first quarter of 2021, the operations of Peacock, which were previously reported in Corporate and Other, will now be included with NBCUniversal results and the operations of NBCUniversal will now be presented in three reportable business segments: Media, Studios and Theme Parks. Prior periods have been adjusted to reflect this presentation.

Revenue for NBCUniversal decreased 9.1% to $7.0 billion in the first quarter of 2021. Adjusted EBITDA decreased 11.8% to $1.5 billion.

Media
Media revenue increased 3.2% to $5.0 billion in the first quarter of 2021, reflecting higher distribution revenue and other revenue, partially offset by lower advertising revenue. Distribution revenue increased 9.1%, driven by contractual rate increases, partially offset by a decline in subscribers. Other revenue increased 5.3% due to an increase in revenue from our digital properties. Advertising revenue decreased 3.4%, reflecting ratings declines, partially offset by higher pricing and sports volume, as well as advertising revenue from Peacock, which had not yet launched in the prior year period. Adjusted EBITDA decreased 3.7% to $1.5 billion in the first quarter of 2021, reflecting higher revenue, more than offset by higher programming and production expenses primarily driven by amortization of content at Peacock.Media results include $91 million of revenue and an Adjusted EBITDA6 loss of $277 million related to Peacock, compared to a loss of $59 million in the prior year period.

Studios
Studios revenue decreased 0.6% to $2.4 billion in the first quarter of 2021, primarily reflecting lower theatrical revenue, offset by higher content licensing revenue. Theatrical revenue decreased 87.7%, primarily driven by the deferral of theatrical releases as a result of theater closures and theaters operating at reduced capacity due to COVID-19. Content licensing revenue increased 14.1%, primarily due to a new licensing agreement for content that became exclusively available for streaming on Peacock during the quarter. Adjusted EBITDA increased 65.7% to $497 million in the first quarter of 2021, reflecting lower revenue, more than offset by lower operating costs. The decrease in operating costs was primarily driven by lower advertising, marketing and promotion expenses, partially offset by higher programming and production expenses. The decrease in advertising, marketing and promotion expenses was primarily due to a reduced number of theatrical releases compared to the prior year period as a result of COVID-19. The higher programming and production expenses were primarily driven by costs associated with the new licensing agreement with Peacock during the quarter, partially offset by lower amortization associated with theatrical releases in the current period.

Theme Parks
Theme Parks revenue decreased 33.1% to $619 million in the first quarter of 2021, primarily due to Universal Orlando Resort and Universal Studios Japan operating at limited capacity, while Universal Studios Hollywood remained closed during the quarter as a result of COVID-19. Theme Parks Adjusted EBITDA loss was $61 million in the first quarter of 2021, which included pre-opening costs related to Universal Beijing Resort.

Headquarters and Other
NBCUniversal Headquarters and Other includes overhead, personnel costs and costs associated with corporate initiatives. Headquarters and Other Adjusted EBITDA loss was $209 million compared to a loss of $221 million in the first quarter of 2020.

Eliminations
Eliminations reflect the accounting for transactions among the NBCUniversal segments. Revenue eliminations for the quarter ended March 31, 2021 were $1.0 billion compared to $492 million in 2020, and Adjusted EBITDA eliminations were $210 million compared to $6 million in 2020. The year-over-year changes were primarily driven by the licensing of content by the Studios segment to Peacock in the Media segment.

Sky

($ in millions)

1st Quarter

2021

2020

Change

Constant
Currency
Change7

Sky Revenue

Direct-to-Consumer

$4,065

$3,679

10.5

%

1.8

%

Content

358

325

10.3

%

1.7

%

Advertising

574

513

11.9

%

3.4

%

Sky Revenue

$4,997

$4,517

10.6

%

2.0

%

Sky Operating Costs and Expenses

$4,633

$3,966

16.8

%

7.8

%

Sky Adjusted EBITDA

$364

$551

(33.9

%)

(39.6

%)

Adjusted EBITDA Margin

7.3 %

12.2 %

Revenue for Sky increased 10.6% to $5.0 billion in the first quarter of 2021. Excluding the impact of currency, revenue increased 2.0%, reflecting higher direct-to-consumer revenue, advertising revenue and content revenue. Direct-to-consumer revenue increased 1.8% to $4.1 billion, driven by increases in average revenue per customer relationship and customer relationships. Advertising revenue increased 3.4% to $574 million, due to higher advanced advertising revenue in the U.K. Content revenue increased 1.7% to $358 million, primarily due to higher wholesale revenue from sports programming.

Total Customer Relationships increased by 221,000 to 23.4 million in the first quarter of 2021.

(in thousands)

Customers

Net Additions

1Q21

1Q208

1Q21

1Q20

Total Customer Relationships

23,446

23,216

221

(65

)

Adjusted EBITDA for Sky decreased 33.9% to $364 million in the first quarter of 2021. Excluding the impact of currency, Adjusted EBITDA decreased 39.6%, reflecting higher revenue and lower other expenses driven by decreases in personnel-related costs, more than offset by higher programming and production expenses and direct network costs. The increase in programming and production expenses primarily reflects higher sports programming costs due to an increase in the number of sporting events in the current period. The increase in direct network costs was driven by higher costs associated with growth in Sky’s residential mobile and broadband businesses.

Corporate, Other and Eliminations

Corporate and Other
Corporate and Other primarily relates to corporate operations and Comcast Spectacor. Revenue for the quarter ended March 31, 2021 was $89 million compared to $120 million in 2020. Corporate and Other Adjusted EBITDA loss was $281 million compared to a loss of $193 million in 2020, reflecting the impact of COVID-19 on Spectacor operations.

Eliminations
Eliminations reflect the accounting for transactions between Cable Communications, NBCUniversal, Sky and Corporate and Other. Revenue eliminations for the quarter ended March 31, 2021 were $710 million compared to $675 million in 2020, and Adjusted EBITDA eliminations were a benefit of $10 million compared to a benefit of $7 million in 2020.

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 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.

5

In 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.

6

Adjusted 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.

7

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.

8

In 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.

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

Conference Call and Other Information
Comcast Corporation will host a conference call with the financial community today, April 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 (800) 263-8495 with the conference ID number 5168008. A replay of the call will be available starting at 12:00 p.m. ET on April 29, 2021, on the Investor Relations website or by telephone. To access the telephone replay, which will be available until Thursday, May 6, 2021 at midnight ET, please dial (855) 859-2056 and enter the conference ID number 5168008.

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. 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.

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 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.

TABLE 1

Condensed Consolidated Statement of Income (Unaudited)

Three Months Ended

(in millions, except per share data)

March 31,

2021

2020

Revenue

$27,205

$26,609

Costs and expenses

Programming and production

8,919

8,301

Other operating and administrative

8,269

8,254

Advertising, marketing and promotion

1,616

1,938

Depreciation

2,117

2,107

Amortization

1,245

1,157

22,166

21,757

Operating income

5,039

4,852

Interest expense

(1,018

)

(1,212

)

Investment and other income (loss), net

Equity in net income (losses) of investees, net

136

(668

)

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

237

(58

)

Other income (loss), net

17

10

390

(716

)

Income before income taxes

4,411

2,924

Income tax expense

(1,119

)

(700

)

Net income

3,292

2,224

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

(37

)

77

Net income attributable to Comcast Corporation

$3,329

$2,147

Diluted earnings per common share attributable to Comcast Corporation shareholders

$0.71

$0.46

Diluted weighted-average number of common shares

4,665

4,617

TABLE 2

Consolidated Statement of Cash Flows (Unaudited)

Three Months Ended

(in millions)

March 31,

2021

2020

OPERATING ACTIVITIES

Net income

$3,292

$2,224

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

3,362

3,264

Share-based compensation

373

298

Noncash interest expense (income), net

62

227

Net (gain) loss on investment activity and other

(239

)

791

Deferred income taxes

28

(120

)

Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:

Current and noncurrent receivables, net

554

198

Film and television costs, net

393

3

Accounts payable and accrued expenses related to trade creditors

(198

)

(727

)

Other operating assets and liabilities

124

(334

)

Net cash provided by operating activities

7,751

5,824

INVESTING ACTIVITIES

Capital expenditures

(1,859

)

(1,881

)

Cash paid for intangible assets

(612

)

(618

)

Construction of Universal Beijing Resort

(428

)

(371

)

Acquisitions, net of cash acquired

(147

)

(194

)

Proceeds from sales of businesses and investments

388

17

Purchases of investments

(52

)

(69

)

Other

98

15

Net cash provided by (used in) investing activities

(2,612

)

(3,101

)

FINANCING ACTIVITIES

Proceeds from borrowings

192

9,281

Repurchases and repayments of debt

(124

)

(7,439

)

Repurchases of common stock under employee plans

(309

)

(233

)

Dividends paid

(1,080

)

(977

)

Other

(577

)

(258

)

Net cash provided by (used in) financing activities

(1,898

)

374

Impact of foreign currency on cash, cash equivalents and restricted cash

(33

)

(77

)

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

3,208

3,020

Cash, cash equivalents and restricted cash, beginning of period

11,768

5,589

Cash, cash equivalents and restricted cash, end of period

$14,976

$8,609

TABLE 3

Condensed Consolidated Balance Sheet (Unaudited)

(in millions)

March 31,

December 31,

2021

2020

ASSETS

Current Assets

Cash and cash equivalents

$14,950

$11,740

Receivables, net

10,986

11,466

Other current assets

3,502

3,535

Total current assets

29,438

26,741

Film and television costs

12,983

13,340

Investments

7,889

7,820

Investment securing collateralized obligation

487

447

Property and equipment, net

52,317

51,995

Goodwill

70,106

70,669

Franchise rights

59,365

59,365

Other intangible assets, net

34,861

35,389

Other noncurrent assets, net

11,065

8,103

$278,511

$273,869

LIABILITIES AND EQUITY

Current Liabilities

Accounts payable and accrued expenses related to trade creditors

$11,148

$11,364

Accrued participations and residuals

1,619

1,706

Deferred revenue

3,376

2,963

Accrued expenses and other current liabilities

9,891

9,617

Current portion of long-term debt

4,777

3,146

Total current liabilities

30,811

28,796

Long-term debt, less current portion

98,936

100,614

Collateralized obligation

5,168

5,168

Deferred income taxes

28,260

28,051

Other noncurrent liabilities

20,690

18,222

Redeemable noncontrolling interests and redeemable subsidiary preferred stock

546

1,280

Equity

Comcast Corporation shareholders' equity

92,575

90,323

Noncontrolling interests

1,525

1,415

Total equity

94,100

91,738

$278,511

$273,869

TABLE 4

Reconciliation from Net Income Attributable to Comcast Corporation to Adjusted EBITDA (Unaudited)

Three Months Ended
March 31,

(in millions)

2021

2020

Net income attributable to Comcast Corporation

$3,329

$2,147

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

(37

)

77

Income tax expense

1,119

700

Interest expense

1,018

1,212

Investment and other (income) loss, net

(390

)

716

Depreciation and amortization

3,362

3,264

Adjustments (1)

12

14

Adjusted EBITDA

$8,413

$8,130

Reconciliation from Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited)

Three Months Ended

March 31,

(in millions)

2021

2020

Net cash provided by operating activities

$7,751

$5,824

Capital expenditures

(1,859

)

(1,881

)

Cash paid for capitalized software and other intangible assets

(612

)

(618

)

Free Cash Flow

$5,280

$3,325

Alternate Presentation of Free Cash Flow (Unaudited)

Three Months Ended

March 31,

(in millions)

2021

2020

Adjusted EBITDA

$8,413

$8,130

Capital expenditures

(1,859

)

(1,881

)

Cash paid for capitalized software and other intangible assets

(612

)

(618

)

Cash interest expense

(911

)

(991

)

Cash taxes

(87

)

(281

)

Changes in operating assets and liabilities

(176

)

(1,393

)

Noncash share-based compensation

373

298

Other (2)

139

61

Free Cash Flow

$5,280

$3,325

(1)

1st quarter 2021 and 2020 Adjusted EBITDA exclude $12 million and $14 million of other operating and administrative expense, respectively, related to the Sky transaction, primarily relating to the replacement of share-based compensation awards and costs related to integration activities.

(2)

1st quarter 2021 and 2020 include decreases of $12 million and $14 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.

TABLE 5

Reconciliations of Adjusted Net Income and Adjusted EPS (Unaudited)

Three Months Ended
March 31,

2021

2020

(in millions, except per share data)

$

EPS

$

EPS

Net income attributable to Comcast Corporation and diluted earnings per share attributable to Comcast Corporation shareholders

$3,329

$0.71

$2,147

$0.46

Change

55.1 %

54.3 %

Amortization of acquisition-related intangible assets (1)

477

0.11

458

0.10

Investments (2)

(287)

(0.06)

544

0.13

Items affecting period-over-period comparability:

Loss on early redemption of debt (3)

106

0.02

Costs related to Sky transaction (4)

10

11

Adjusted Net income and Adjusted EPS

$3,529

$0.76

$3,266

$0.71

Change

8.1 %

7.0 %

(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,

2021

2020

Amortization of acquisition-related intangible assets before income taxes

$592

$575

Amortization of acquisition-related intangible assets, net of tax

$477

$458

(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
March 31,

2021

2020

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

($237

)

$58

Equity in net (income) losses of investees, net

(133

)

663

Investments before income taxes

(370

)

721

Investments, net of tax

($287

)

$544

(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 2021 and 2020 net income attributable to Comcast Corporation includes $12 million and $14 million of operating costs and expenses, $10 million and $11 million net of tax, respectively, related to the Sky transaction.

Note: Minor differences may exist due to rounding.

TABLE 6

Reconciliation of Sky Constant Currency Growth (Unaudited)

Three Months Ended

March 31,

(in millions)

2021

2020(1)

Change

Direct-to-Consumer

$4,065

$3,993

1.8

%

Content

358

352

1.7

%

Advertising

574

555

3.4

%

Revenue

$4,997

$4,900

2.0

%

Operating costs and expenses

$4,633

$4,298

7.8

%

Adjusted EBITDA

$364

$602

(39.6

%)

(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.

Note: Minor differences may exist due to rounding.

Investor Contacts:

Marci Ryvicker, (215) 286-4781

Jane Kearns, (215) 286-4794

Marc Kaplan, (215) 286-6527



Press Contacts:

Jennifer Khoury, (215) 286-7408

John Demming, (215) 286-8011

Source: Comcast Corporation

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