Comcast: “2017 fastest start in five years”
April 27, 2017
Comcast, the US telco and largest broadcasting and cable television company in the world by revenue, has reported results for the quarter ended March 31st 2017.
Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, “2017 is off to the fastest start in five years. We are reporting outstanding growth at Cable and particularly NBCUniversal, which delivered 14.7 per cent revenue growth and 24.4 per cent Adjusted EBITDA growth. These impressive results were fuelled by exceptionally strong film performance, increased affiliate and retransmission revenues at our TV businesses, and continued growth in Theme Parks. Cable operations had a terrific quarter, driven by strength in high-speed Internet and business services revenue growth, as well as positive video, all highlighted by overall customer relationship net additions of 297,000, a 10 per cent increase compared to last year. These results were balanced with financial discipline, which contributed to solid revenue and Adjusted EBITDA growth. The transition from Neil Smit to Dave Watson has gotten off to a very successful and seamless start, and with our teams executing well across all of Comcast NBCUniversal, I am excited about our momentum headed into the rest of 2017 and beyond.”
Cable Networks
Cable Networks revenue increased 7.6 per cent to $2.6 billion in the first quarter of 2017, reflecting higher distribution and content licensing and other revenue, partially offset by lower advertising revenue. Distribution revenue increased 8.6 per cent, driven by contractual rate increases and contract renewals, partially offset by a decline in subscribers at all cable networks. Advertising revenue decreased 2.9 per cent, due to audience ratings declines, partially offset by higher rates. Adjusted EBITDA increased 16.8 per cent to $1.1 billion in the first quarter of 2017, reflecting higher revenue, partially offset by a modest increase in programming and production costs.
Broadcast Television
Broadcast Television revenue increased 5.9 per cent to $2.2 billion in the first quarter of 2017, reflecting higher distribution and other and content licensing revenue. Distribution and other revenue increased 33.4 per cent, due to higher retransmission consent fees. Content licensing revenue increased 2.6 per cent, reflecting the timing of content provided under licensing agreements. Advertising revenue increased 0.3 per cent, reflecting higher rates, offset by audience ratings declines and lower volume. Adjusted EBITDA increased 13.4 per cent to $322 million in the first quarter of 2017, reflecting higher revenue, partially offset by an increase in programming and production costs.
Filmed Entertainment
Filmed Entertainment revenue increased 43.2 per cent to $2 billion in the first quarter of 2017, primarily reflecting higher theatrical revenue, as well as increased other, content licensing, and home entertainment revenue. Theatrical revenue increased by $415 million to $651 million, reflecting the strong performances of Fifty Shades Darker, Get Out and Split, as well as the continued success of Sing in this year’s first quarter. Other revenue and content licensing revenue increased 35.9 per cent and 12.1 per cent, respectively, primarily due to the inclusion of DreamWorks in the current year period.