Comcast Reports 4th Quarter and Full Year 2021 Results

·10 min read

PHILADELPHIA, January 27, 2022--(BUSINESS WIRE)--Comcast Corporation (NASDAQ: CMCSA) today reported results for the quarter and year ended December 31, 2021.

"Comcast’s strong operating and financial performance in 2021 was underscored by our highest full-year revenue, adjusted EBITDA, adjusted EPS, and free cash flow on record. We continue to execute extraordinarily well, strengthening our leadership position in connectivity, aggregation, and streaming, while working to have a lasting impact on our communities through our commitment to DE&I and digital equity. Looking ahead, we remain focused on our many exciting organic growth opportunities across all of our businesses. Our top priority is increasing the capacity of our network in the U.S. and further improving our world-class broadband experience. We are producing more of the premium content that our viewers love and continue to provide them with multiple ways to access it, including on Peacock while ramping construction of Epic Universe and welcoming even more guests to our Theme Parks. And, significantly, we are expanding the reach of our proprietary global technology platform and addressable customer base, starting with Sky Glass and XClass TV. Our confidence in the future is reflected in today’s announcement that we are increasing the dividend for the 14th consecutive year," commented Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation.

($ in millions, except per share data)

4th Quarter

Full Year

Consolidated Results

2021

2020

Change

2021

2020

Change

Revenue

$30,336

$27,708

9.5

%

$116,385

$103,564

12.4

%

Net Income Attributable to Comcast

$3,057

$3,380

(9.6

%)

$14,159

$10,534

34.4

%

Adjusted Net Income1

$3,534

$2,617

35.1

%

$15,045

$12,053

24.8

%

Adjusted EBITDA2

$8,411

$7,186

17.0

%

$34,708

$30,826

12.6

%

Earnings per Share3

$0.66

$0.73

(9.6

%)

$3.04

$2.28

33.3

%

Adjusted Earnings per Share1

$0.77

$0.56

37.5

%

$3.23

$2.61

23.8

%

Net Cash Provided by Operating Activities

$7,689

$5,042

52.5

%

$29,146

$24,737

17.8

%

Free Cash Flow4

$3,784

$1,700

122.6

%

$17,089

$13,280

28.7

%

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.

Full Year 2021 Highlights:

  • Consolidated Adjusted EBITDA Increased 12.6% to $34.7 Billion; Adjusted EPS Increased 23.8% to $3.23; Generated Free Cash Flow of $17.1 Billion

  • Cable Communications Adjusted EBITDA Increased 11.2% and Adjusted EBITDA per Customer Relationship Increased 6.7%

  • Cable Communications Total Customer Relationship Net Additions Were 1.1 Million; Total Broadband Customer Net Additions Were 1.3 Million

  • Cable Communications Wireless Customer Line Net Additions Were 1.2 Million, the Best Annual Result Since Launch in 2017

  • Cable Communications Completed a Series of Groundbreaking Tests Demonstrating DOCSIS 4.0 Technology That Culminated in a World-First Test of a Prototype Modem Capable of Delivering Multi-gigabit Speeds to Homes; Paves the Way to Deliver Multi-gigabit Upload and Download Speeds Over Our Hybrid-fiber Coaxial Network

  • NBCUniversal Adjusted EBITDA Increased 6.0% to $5.7 Billion, Including Peacock Losses

  • Theme Parks Adjusted EBITDA Increased $1.7 Billion to $1.3 Billion. Continued to Recover Quickly from the Ongoing Negative Impacts of COVID-19, Benefiting from Strong Demand from Domestic Guests in the U.S. and Japan; Celebrated the Grand Opening of Universal Beijing Resort on September 20th

  • Peacock Monthly Active Accounts in the U.S. Reached 24.5 Million at Year-End. Introduced Peacock in Sky Territories, Beginning in the U.K. and Ireland

  • Sky Adjusted EBITDA Increased 20.8% to $2.4 Billion; On a Constant Currency Basis, Adjusted EBITDA Increased 10.2%

  • Launched Sky Glass in the U.K. and XClass TV in the U.S. Leveraging the Company’s Proprietary, Global Technology Platform; Providing the Company with More Ways to Bring the Best of Our Entertainment Operating System to More Consumers

4th Quarter 2021 Highlights:

  • Consolidated Adjusted EBITDA Increased 17.0% to $8.4 Billion; Adjusted EPS Increased 37.5% to $0.77; Generated Free Cash Flow of $3.8 Billion

  • Cable Communications Adjusted EBITDA Increased 7.8% and Adjusted EBITDA per Customer Relationship Increased 3.9%

  • Cable Communications Total Customer Relationship Net Additions Were 169,000; Total Broadband Customer Net Additions Were 212,000 and Benefited From the Highest Level of Customer Retention on Record for a Fourth Quarter

  • Cable Communications Wireless Customer Line Net Additions Were 312,000, the Best Quarterly Result Since Launch in 2017

  • Theme Parks Delivered Its Most Profitable Fourth Quarter on Record, Driven by Strong Growth in Domestic Guest Attendance and Spending Per Guest at Our Parks in the U.S. and Japan, While International Guest Attendance at Each of Our Parks Remained Constrained Due to COVID-19

  • Sky Adjusted EBITDA Increased 233.7% to $464 Million; On a Constant Currency Basis, Adjusted EBITDA Increased 187.9%

Dividends and Share Repurchases:

  • Returned $8.5 Billion to Shareholders in 2021 Through a Combination of Dividend Payments and Share Repurchases

  • Dividends Paid Totaled $4.5 Billion in 2021; Increased Dividend By $0.08, or 8% Year-over-Year, to $1.08 per Share on an Annualized Basis for 2022, the 14th Consecutive Annual Increase

  • Resumed Share Repurchases Late in the Second Quarter of 2021; Repurchased $4.0 Billion of our Shares in 2021; Increased Share Repurchase Authorization to $10.0 Billion

Consolidated Financial Results

Revenue for the fourth quarter of 2021 increased 9.5% to $30.3 billion. Net Income Attributable to Comcast decreased 9.6% to $3.1 billion. Adjusted Net Income increased 35.1% to $3.5 billion. Adjusted EBITDA increased 17.0% to $8.4 billion.

For the twelve months ended December 31, 2021, revenue increased 12.4% to $116.4 billion compared to 2020. Net income attributable to Comcast increased 34.4% to $14.2 billion. Adjusted Net Income increased 24.8% to $15.0 billion. Adjusted EBITDA increased 12.6% to $34.7 billion.

Earnings per Share (EPS) for the fourth quarter of 2021 was $0.66, a decrease of 9.6% compared to the prior year period. Adjusted EPS increased 37.5% to $0.77.

For the twelve months ended December 31, 2021, EPS was $3.04, a 33.3% increase compared to 2020. Adjusted EPS increased 23.8% to $3.23.

Capital Expenditures increased 6.8% to $3.0 billion in the fourth quarter of 2021. Cable Communications’ capital expenditures increased 3.7% to $2.2 billion. NBCUniversal’s capital expenditures increased 33.2% to $502 million. Sky's capital expenditures increased 7.1% to $332 million.

For the twelve months ended December 31, 2021, capital expenditures of $9.2 billion were consistent with 2020. Cable Communications' capital expenditures increased 4.9% to $6.9 billion. NBCUniversal's capital expenditures decreased 27.2% to $1.1 billion. Sky's capital expenditures decreased 1.2% to $948 million.

Net Cash Provided by Operating Activities was $7.7 billion in the fourth quarter of 2021. Free Cash Flow was $3.8 billion.

For the twelve months ended December 31, 2021 net cash provided by operating activities was $29.1 billion. Free cash flow was $17.1 billion.

Dividends and Share Repurchases. Comcast resumed its share repurchase program in May 2021 after pausing the program in 2019 to accelerate the reduction of indebtedness it incurred in connection with its acquisition of Sky. During the fourth quarter of 2021, Comcast paid dividends totaling $1.1 billion and repurchased 38.5 million of its common shares for $2.0 billion. For the twelve months ended December 31, 2021, Comcast paid dividends totaling $4.5 billion and repurchased 73.2 million of its common shares for $4.0 billion, resulting in a total return of capital to shareholders of $8.5 billion.

Today, Comcast announced that its Board of Directors increased its share repurchase program authorization to $10.0 billion, effective as of January 1, 2022. Comcast also announced that it increased its dividend by $0.08, or 8% year-over-year, to $1.08 per share on an annualized basis for 2022. In accordance with the increase, the Board of Directors declared a quarterly cash dividend of $0.27 per share on the company's stock, payable April 27, 2022 to shareholders of record as of the close of business on April 6, 2022.

Cable Communications

($ in millions)

4th Quarter

Full Year

2021

2020

Change

2021

2020

Change

Cable Communications Revenue

Broadband

$5,861

$5,400

8.5

%

$22,979

$20,599

11.6

%

Video

5,403

5,469

(1.2

%)

22,079

21,937

0.6

%

Voice

825

880

(6.2

%)

3,417

3,532

(3.3

%)

Wireless

709

505

40.3

%

2,380

1,574

51.2

%

Business Services

2,337

2,095

11.5

%

8,933

8,191

9.1

%

Advertising

818

935

(12.5

%)

2,820

2,594

8.7

%

Other

454

421

7.6

%

1,719

1,624

5.9

%

Cable Communications Revenue

$16,406

$15,705

4.5

%

$64,328

$60,051

7.1

%

Cable Communications Adjusted EBITDA

$7,125

$6,607

7.8

%

$28,097

$25,270

11.2

%

Adjusted EBITDA Margin

43.4%

42.1%

43.7%

42.1%

Cable Communications Capital Expenditures

$2,192

$2,114

3.7

%

$6,930

$6,605

4.9

%

Percent of Cable Communications Revenue

13.4%

13.5%

10.8%

11.0%

Revenue for Cable Communications increased 4.5% to $16.4 billion in the fourth quarter of 2021, driven by increases in broadband, business services, wireless, and other revenue, partially offset by decreases in advertising, video, and voice revenue. Broadband revenue increased 8.5% due to an increase in the number of residential broadband customers and an increase in average rates. Business services revenue increased 11.5% due to an increase in average rates, an increase in the number of customers receiving our services, and from a recent acquisition. Wireless revenue increased 40.3% due to an increase in the number of customer lines and an increase in device sales. Other revenue increased 7.6%, primarily reflecting increases in revenue from licensing of our technology platforms and from our security and automation services. Advertising revenue decreased 12.5%, reflecting a decrease in political advertising. Excluding political advertising revenue, advertising revenue increased 9.3%, primarily driven by our advanced advertising businesses. Video revenue decreased 1.2%, reflecting a decrease in the number of residential video customers, partially offset by an increase in average rates. Voice revenue decreased 6.2%, primarily reflecting a decrease in the number of residential voice customers.

For the twelve months ended December 31, 2021, Cable revenue increased 7.1% to $64.3 billion compared to 2020, driven by growth in broadband, wireless, business services, advertising, video, and other revenue, partially offset by a decrease in voice revenue. In 2020, results were negatively impacted by COVID-19, including accrued customer regional sports network (RSN) fee adjustments related to canceled sporting events. Excluding the impact of accrued customer RSN fee adjustments in 20205, Cable Communications revenue increased 6.5%.

Total Customer Relationships increased by 169,000 to 34.2 million in the fourth quarter of 2021. Residential customer relationships increased by 153,000 and business customer relationships increased by 17,000. Total broadband customer net additions were 212,000, total video customer net losses were 373,000, and total voice customer net losses were 176,000. In addition, Cable Communications added 312,000 wireless lines in the quarter.

For the twelve months ended December 31, 2021, total customer relationships increased by 1.1 million. Residential customer relationships increased by 1.0 million and business customer relationships increased by 63,000. Total broadband customer net additions were 1.3 million, total video customer net losses were 1.7 million, and total voice customer net losses were 548,000. In addition, Cable Communications added 1.2 million wireless lines during the year.

(in thousands)

Net Additions / (Losses)

4th Quarter

Full Year

4Q21

4Q206

2021

2020

2021

2020

Customer Relationships

Residential Customer Relationships

31,728

30,692

153

429

1,036

1,569

Business Services Customer Relationships

2,489

2,426

17

26

63

30

Total Customer Relationships

34,218

33,119

169

455

1,099

1,599

Residential Customer Relationships Mix

One Product Residential Customers

14,330

12,408

371

477

1,922

2,187

Two Product Residential Customers

8,407

8,734

(67

)

2

(328

)

(188

)

Three or More Product Residential Customers

8,992

9,550

(152

)

(50

)

(558

)

(429

)

Residential Broadband Customers

29,583

28,326

194

515

1,257

1,937

Business Services Broadband Customers

2,318

2,248

18

23

70

34

Total Broadband Customers

31,901

30,574

212

538

1,327

1,971

Residential Video Customers

17,495

18,993

(349

)

(227

)

(1,498

)

(1,295

)

Business Services Video Customers

681

852

(24

)

(21

)

(171

)

(114

)

Total Video Customers

18,176

19,846

(373

)

(248

)

(1,669

)

(1,408

)

Residential Voice Customers

9,062

9,645

(183

)

(39

)

(583

)

(289

)

Business Services Voice Customers

1,391

1,357

7

16

34

15

Total Voice Customers

10,454

11,002

(176

)

(24

)

(548

)

(275

)

Total Wireless Lines

3,980