Comcast Beats Revenue and Profit Estimates in Q4

Comcast, the telecommunications giant, exceeded both revenue and profit expectations in the fourth quarter. The company reported that it lost fewer broadband subscribers than anticipated and raised its dividend by 7%.

Financial Performance

Here’s how Comcast performed compared to analyst estimates:

• Earnings per share: 84 cents adjusted vs. 79 cents expected
• Revenue: $31.25 billion vs. $30.51 billion expected

In the quarter ending on December 31, net income increased by 7.8% to $3.26 billion, or 81 cents per share, compared to $3.02 billion, or 70 cents per share, in the previous year. Revenue also rose by 2.3% compared to the same period last year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) remained flat at approximately $8 billion.

CEO Statement

Comcast CEO Brian Roberts expressed satisfaction with the company’s performance, stating, “For the third consecutive year, we generated the highest revenue, adjusted EBITDA, and adjusted EPS in our company’s history. We also reported the highest adjusted EBITDA on record at Theme Parks; were the #1 studio in worldwide box office for the first time since 2015; and maintained Peacock’s position as the fastest-growing streamer in the U.S.”

Dividend and Share Repurchase Program

Comcast announced an 8 cents, or 7%, increase in its dividend to $1.24 per share on an annualized basis for 2024. This marks the 16th consecutive year the company has raised its dividend. Additionally, Comcast approved a new share repurchase program authorization of $15 billion, effective immediately.

Broadband and Wireless Subscribers

Comcast lost 34,000 domestic broadband subscribers, surpassing the average analyst estimate of 62,000. Despite the losses, domestic broadband revenue increased by 3.7% to $6.4 billion. Average revenue per user also rose by 3.9% as customers connected more devices and opted for higher Internet speeds. The company added 310,000 wireless subscribers, slightly below the average analyst forecast of 342,000.

Theme Parks Performance

Adjusted EBITDA for Comcast’s theme parks rose by 11.6% to $872 million, setting a quarterly record for the company. However, this figure fell short of analyst estimates.

NBCUniversal Results

Peacock, NBCUniversal’s streaming service, gained 3 million subscribers and saw a 51% increase in revenue, surpassing $1 billion for the first time in a quarter. Peacock’s adjusted loss narrowed to $825 million from $978 million in the same period last year. The service now has a total of 31 million subscribers.

Overall media revenue rose by 3.1% to nearly $7 billion, but adjusted EBITDA decreased by 50% to $108 million due to higher sports programming costs and increased programming costs at Peacock. Domestic advertising revenue declined by 6.9% to $2.64 billion, excluding last year’s World Cup advertising.

Theatrical revenue increased by 59% in the quarter, primarily driven by the success of films such as “Five Nights at Freddy’s,” “Trolls Band Together,” “The Exorcist: Believer,” and “Migration.” Universal ranked first in global box office in 2023 for the first time since 2015 and produced three of the top five movies.

Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.