Comcast Corporation (CMCSA) Bundle
A Brief History of Comcast Corporation
Comcast Corporation, a global media and technology company, has undergone significant transformations and expansions since its inception. As of 2024, the company operates through two primary segments: Connectivity & Platforms and Content & Experiences.
Financial Performance
For the third quarter of 2024, Comcast reported total revenue of $32.07 billion, representing a 6.5% increase from $30.12 billion in the same quarter of 2023. The revenue for the nine months ended September 30, 2024, was $91.82 billion, up from $90.32 billion in 2023, a 1.7% increase.
| Period | Total Revenue (in billions) | Change (%) |
|---|---|---|
| Q3 2024 | $32.07 | 6.5 |
| Q3 2023 | $30.12 | - |
| 9 Months 2024 | $91.82 | 1.7 |
| 9 Months 2023 | $90.32 | - |
Debt and Financing Activities
As of September 30, 2024, Comcast's total debt was $101.4 billion, with a carrying value of $96.8 billion and an estimated fair value of $101.4 billion. The company has been active in refinancing its debt, including a new $11.8 billion revolving credit facility established in May 2024, which is due on May 17, 2029.
In the nine months ended September 30, 2024, Comcast made debt repayments totaling $2.4 billion, which included $1.9 billion in principal payments due at maturity.
Share Repurchases and Dividends
During the first nine months of 2024, Comcast repurchased 162 million shares of its Class A common stock for approximately $6.6 billion. The Board of Directors authorized a new share repurchase program of $15.0 billion in January 2024, of which $9.0 billion remained available as of September 30, 2024.
Additionally, Comcast paid dividends totaling $3.6 billion in the same period, with a quarterly cash dividend of $0.31 per share approved in July 2024.
| Metric | Amount |
|---|---|
| Shares Repurchased (in millions) | 162 |
| Total Amount for Repurchases (in billions) | $6.6 |
| New Share Repurchase Authorization (in billions) | $15.0 |
| Remaining Authorization (in billions) | $9.0 |
| Total Dividends Paid (in billions) | $3.6 |
| Quarterly Dividend per Share | $0.31 |
Operational Segments
Comcast operates in two main segments: Connectivity & Platforms and Content & Experiences. The Media segment reported revenue of $8.23 billion for Q3 2024, up from $6.03 billion in Q3 2023, reflecting a substantial growth of 36.5%. This growth was driven primarily by increased revenue from the Paris Olympics and a rise in subscribers for Peacock, which reached 36 million paid subscribers as of September 30, 2024.
| Segment | Q3 2024 Revenue (in billions) | Q3 2023 Revenue (in billions) | Change (%) |
|---|---|---|---|
| Media | $8.23 | $6.03 | 36.5 |
| Studios | $2.83 | $2.52 | 12.3 |
| Theme Parks | $2.29 | $2.42 | (5.3) |
Future Outlook
Comcast continues to adapt to a rapidly changing media landscape, focusing on increasing its digital and streaming revenue streams while managing traditional cable operations. The company expects to continue investing in content, technology, and customer acquisition to drive growth in its Connectivity & Platforms and Content & Experiences segments.
A Who Owns Comcast Corporation (CMCSA)
Major Shareholders
As of 2024, Comcast Corporation (CMCSA) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The largest shareholders include:
- The Vanguard Group, Inc. - 8.9% ownership
- BlackRock, Inc. - 8.5% ownership
- State Street Corporation - 4.0% ownership
- FMR LLC (Fidelity) - 3.4% ownership
- Geode Capital Management - 1.8% ownership
Insider Ownership
Insider ownership is relatively modest, with key executives and board members holding approximately 1.1% of the total shares. This includes:
- Brian L. Roberts (Chairman and CEO) - 0.4% ownership
- Other executives - 0.7% ownership combined
Institutional Ownership
Institutional investors hold a significant portion of Comcast's shares, representing approximately 79.6% of total shares outstanding. The top institutional investors are:
| Institution | Ownership Percentage |
|---|---|
| The Vanguard Group, Inc. | 8.9% |
| BlackRock, Inc. | 8.5% |
| State Street Corporation | 4.0% |
| FMR LLC (Fidelity) | 3.4% |
| Geode Capital Management | 1.8% |
Recent Stock Performance
As of the end of September 2024, Comcast's stock (CMCSA) is trading at approximately $39.44 per share. Over the past year, the stock has experienced fluctuations with a 52-week range of $30.00 to $45.00.
Share Repurchase Program
In January 2024, Comcast announced a new share repurchase program authorization of $15.0 billion, with $9.0 billion remaining as of September 30, 2024. The company repurchased 49.9 million shares at an average price of $39.44, totaling approximately $1.97 billion in the third quarter of 2024.
Debt Structure
As of September 30, 2024, Comcast's total debt stands at approximately $101.4 billion, with a carrying value of $96.8 billion. The company maintains a strong credit profile, bolstered by a new $11.8 billion revolving credit facility entered in May 2024.
Recent Financial Highlights
For the third quarter ended September 30, 2024, Comcast reported total revenue of $32.07 billion, an increase from $30.12 billion in the previous year. Adjusted EBITDA was reported at $9.73 billion, with net income attributable to Comcast shareholders at approximately $3.63 billion.
Comcast Corporation (CMCSA) Mission Statement
Mission Statement Overview
Comcast Corporation aims to "connect people to moments that matter." This mission statement reflects its commitment to delivering superior connectivity and entertainment experiences to its customers across various platforms.
Core Values
- Innovation: Comcast emphasizes technological advancements to improve customer experiences.
- Customer Focus: The company strives to prioritize the needs of its customers in all its services.
- Community Engagement: Comcast is dedicated to making a positive impact in the communities it serves.
Financial Performance Metrics
As of Q3 2024, Comcast's financial performance highlighted its operational strength:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $32,070 million | $30,115 million | 6.5% |
| Net Income | $3,576 million | $3,997 million | (10.5)% |
| Adjusted EBITDA | $9,735 million | $9,962 million | (2.3)% |
| Debt | $101.4 billion | $97.1 billion | 3.2% |
Customer Metrics
Customer relationships as of September 30, 2024:
| Category | Q3 2024 | Q3 2023 | Change (000s) |
|---|---|---|---|
| Domestic Residential Connectivity | 31,324 | 31,722 | (398) |
| International Residential Connectivity | 17,716 | 17,958 | (242) |
| Business Services Connectivity | 2,627 | 2,640 | (13) |
| Total Customer Relationships | 51,667 | 52,320 | (653) |
Recent Initiatives
Comcast has undertaken several initiatives to enhance its service offerings:
- Investment in broadband infrastructure to support higher-speed offerings.
- Expansion of its streaming platform, Peacock, which had 36 million paid subscribers as of September 30, 2024.
- Introduction of new content aligned with major events like the Paris Olympics, generating incremental revenue.
Shareholder Value and Capital Allocation
In 2024, Comcast's Board of Directors approved a new share repurchase program of $15.0 billion:
| Period | Shares Purchased | Average Price | Total Amount |
|---|---|---|---|
| July 2024 | 17,765,351 | $38.77 | $688,839,057 |
| August 2024 | 13,503,765 | $39.62 | $534,976,025 |
| September 2024 | 18,644,155 | $39.96 | $744,976,969 |
| Total | 49,913,271 | $39.44 | $1,968,792,051 |
Outlook
Comcast's focus remains on expanding its high-margin connectivity businesses while managing operational costs. The company anticipates growth in broadband revenue despite challenges in video revenue due to changing consumption patterns.
As of September 30, 2024, Comcast's total assets were valued at approximately $213.1 billion, with cash and cash equivalents at $8.8 billion.
How Comcast Corporation (CMCSA) Works
Overview of Business Segments
Comcast Corporation operates through several key segments: Connectivity & Platforms, Media, Studios, and Theme Parks. The following table summarizes revenue and adjusted EBITDA for these segments for the three months and nine months ended September 30, 2024.
| Segment | Revenue (Q3 2024) (in millions) | Adjusted EBITDA (Q3 2024) (in millions) | Revenue (9M 2024) (in millions) | Adjusted EBITDA (9M 2024) (in millions) |
|---|---|---|---|---|
| Connectivity & Platforms | $17,866 | $6,904 | $53,558 | $20,859 |
| Media | $8,231 | $650 | $20,926 | $2,832 |
| Studios | $2,826 | $468 | $7,822 | $835 |
| Theme Parks | $2,289 | $847 | $6,243 | $2,111 |
| Other & Eliminations | ($2,253) | $38 | ($6,167) | $108 |
Financial Performance
For the three months ended September 30, 2024, Comcast reported total revenue of $32,070 million, an increase from $30,115 million in the same period of 2023. The net income attributable to Comcast Corporation for Q3 2024 was $3,629 million, compared to $4,046 million in Q3 2023.
Revenue Breakdown
The following table provides a detailed breakdown of revenue by type for the three and nine months ended September 30, 2024.
| Revenue Type | Q3 2024 (in millions) | Q3 2023 (in millions) | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|---|---|
| Domestic Broadband | $6,539 | $6,366 | $19,700 | $19,086 |
| Domestic Wireless | $1,093 | $917 | $3,084 | $2,644 |
| International Connectivity | $1,236 | $1,109 | $3,500 | $3,009 |
| Total Residential Connectivity | $8,869 | $8,393 | $26,284 | $24,739 |
| Video | $6,713 | $7,154 | $20,370 | $21,895 |
| Advertising | $987 | $960 | $2,931 | $2,860 |
| Other | $1,298 | $1,444 | $3,973 | $4,394 |
Costs and Expenses
Comcast's total costs and expenses for the three months ended September 30, 2024, were $28,180 million, compared to $26,965 million for the same period in 2023. The following table outlines key expenses for Q3 2024.
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Programming and Production | $10,216 | $8,652 |
| Marketing and Promotion | $470 | $329 |
| Other | $1,194 | $1,034 |
Debt and Financial Position
As of September 30, 2024, Comcast’s total debt had a carrying value of $101.4 billion, with an estimated fair value of $96.8 billion. The company had $8,814 million in cash and cash equivalents as of the same date.
Share Repurchase and Dividends
During the nine months ended September 30, 2024, Comcast repurchased a total of 162 million shares for $6.6 billion. The Board of Directors approved a new share repurchase program of $15 billion in January 2024, with $9 billion remaining as of September 30, 2024. The dividend per share was increased to $1.24 annually in January 2024, with $3.6 billion paid in dividends during the nine months ended September 30, 2024.
Outlook
Comcast's operations are influenced by the competitive landscape in the media and telecommunications sectors. The company continues to focus on growing its streaming service, Peacock, which had 36 million paid subscribers as of September 30, 2024, up from 28 million in the previous year.
How Comcast Corporation (CMCSA) Makes Money
Revenue Sources
Comcast Corporation generates revenue through multiple segments, primarily focusing on connectivity and media services. For the nine months ended September 30, 2024, Comcast reported total consolidated revenue of $91.8 billion, up from $90.3 billion in the same period of 2023.
| Segment | Revenue (2024 Q3) | Revenue (2023 Q3) | Change (%) |
|---|---|---|---|
| Residential Connectivity & Platforms | $53.4 billion | $53.7 billion | (0.6)% |
| Business Services Connectivity | $7.2 billion | $6.9 billion | 4.5% |
| Media | $20.9 billion | $18.4 billion | 13.9% |
| Studios | $7.8 billion | $8.6 billion | (9.0)% |
| Theme Parks | $6.2 billion | $6.6 billion | (5.1)% |
Residential Connectivity & Platforms
This segment includes broadband, video, and voice services. In Q3 2024, the residential connectivity revenue was $26.3 billion, reflecting a 6.2% increase from $24.7 billion in Q3 2023. The breakdown is as follows:
| Service Type | Revenue (2024 Q3) | Revenue (2023 Q3) | Change (%) |
|---|---|---|---|
| Domestic Broadband | $19.7 billion | $19.1 billion | 3.2% |
| Video | $20.4 billion | $21.9 billion | (7.0)% |
| Advertising | $2.9 billion | $2.9 billion | 2.5% |
Business Services Connectivity
Comcast's business services segment reported revenue of $7.2 billion in Q3 2024, a 5.2% increase year-over-year. This growth is attributed to increased demand from medium-sized and enterprise customers.
Media Segment
Revenue from the media segment surged to $20.9 billion in Q3 2024, driven primarily by advertising revenue associated with the Paris Olympics, which contributed an additional $1.9 billion. Without this event, media revenue would have increased by 3.5% year-over-year.
| Media Revenue Breakdown | Revenue (2024 Q3) | Revenue (2023 Q3) | Change (%) |
|---|---|---|---|
| Domestic Advertising | $7.4 billion | $6.0 billion | 23.4% |
| Domestic Distribution | $8.9 billion | $7.9 billion | 13.0% |
| International Networks | $3.2 billion | $3.1 billion | 4.3% |
Studios Segment
The Studios segment generated $7.8 billion in revenue for the nine months ended September 30, 2024, reflecting a 8.6% decline from the prior year, primarily due to a decrease in theatrical releases. Content licensing revenue was $5.7 billion, down from $5.9 billion.
Theme Parks Segment
Revenue from Comcast's theme parks decreased to $6.2 billion in Q3 2024 from $6.6 billion in Q3 2023, a drop of 5.1%. The decline is attributed to lower attendance and spending per guest, despite ongoing investments in new attractions.
Adjusted EBITDA
Comcast's Adjusted EBITDA for the nine months ended September 30, 2024, was $30.8 billion, compared to $30.9 billion for the same period in 2023, indicating a slight decrease in profitability.
| Segment | Adjusted EBITDA (2024) | Adjusted EBITDA (2023) | Change (%) |
|---|---|---|---|
| Residential Connectivity & Platforms | $20.9 billion | $20.7 billion | 1.0% |
| Business Services Connectivity | $4.1 billion | $4.0 billion | 3.7% |
| Media | $2.8 billion | $2.8 billion | (0.5)% |
| Studios | $0.8 billion | $1.0 billion | (13.1)% |
| Theme Parks | $2.1 billion | $2.5 billion | (14.6)% |
Conclusion
Comcast's diverse revenue streams from its connectivity services, media operations, and theme parks illustrate its multifaceted business model. The company continues to adapt to changing consumer demands and competitive pressures in the telecommunications and entertainment markets.
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Article updated on 8 Nov 2024
Resources:
- Comcast Corporation (CMCSA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Comcast Corporation (CMCSA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Comcast Corporation (CMCSA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.