Sky revenue down 14.3%
October 27, 2022
Comcast has reported results for the quarter ended September 30th 2022.
Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation., commented: “I’m proud of the company and our strong financial results this quarter. We delivered solid growth in adjusted EBITDA and adjusted EPS, generated significant free cash flow, invested in our businesses’ future and returned a record amount of capital to our shareholders. This performance is a testament to our consistent strategic focus on innovation and our team’s ability to execute at the highest level in any environment. In Cable, we grew adjusted EBITDA by more than 5 per cent and achieved our highest adjusted EBITDA margin on record despite a challenging competitive environment. At NBCUniversal, robust demand from guests at our Theme Parks and from viewers of our iconic content fuelled nearly 25 per cent growth in adjusted EBITDA. And, at Sky, our team continues to prudently manage through a difficult and rapidly changing macroeconomic and geopolitical period in the UK and Europe. Together, our company is a leader in very large and profitable markets. Despite the challenges that may lie ahead, we are in an enviable strategic and financial position, and our future remains bright.”
Sky
Revenue for Sky decreased 14.7 per cent to $4.3 billion in the third quarter of 2022. Excluding the impact of currency, revenue was consistent with the prior year period. Direct-to-consumer revenue of $3.5 billion was consistent with the prior year period, reflecting increased revenue in the UK, driven by higher broadband and mobile revenue, offset by decreased revenue in Italy and Germany. Advertising revenue decreased 1.6 per cent to $471 million, reflecting lower revenue in Italy and consistent revenue in the UK and Germany. Content revenue increased 6.4 per cent to $273 million, primarily due to the timing of licensing of content to other platforms.
For the nine months ended September 30th 2022, Sky revenue decreased 11 per cent to $13.5 billion. Excluding the impact of currency, revenue decreased 1.4 per cent, reflecting lower direct-to-consumer revenue and content revenue, partially offset by higher advertising revenue.
Total Customer Relationships increased by 320,000 to 23 million in the third quarter of 2022, driven by streaming customer net additions as a result of the timing of unique content and the early start of the football season. For the nine months ended September 30th 2022, total customer relationships decreased by 41,000.
NBCUniversal
Revenue for NBCUniversal decreased 4.3 per cent to $9.6 billion in the third quarter of 2022. The prior year period included an incremental $1.8 billion from the Tokyo Olympics included in the Media segment. Adjusted EBITDA increased 24.6 per cent to $1.7 billion.
For the nine months ended September 30th 2022, NBCUniversal revenue increased 17.3 per cent to $29.3 billion. The current year period included $1.5 billion of incremental revenue from the Beijing Olympics and the NFL’s Super Bowl in the Media segment, while 2021 included $1.8 billion of incremental revenue from the Tokyo Olympics in the Media segment. Adjusted EBITDA increased 17 per cent to $5.1 billion.
Media
Media revenue decreased 22.7 per cent to $5.2 billion in the third quarter of 2022, due to lower advertising revenue and distribution revenue, reflecting the comparison to the Tokyo Olympics in the prior year period. Excluding $1.8 billion of incremental revenue from the Tokyo Olympics in the prior year period, Media revenue increased 4.4 per cent. Advertising revenue decreased 35.1 per cent, primarily due to the Tokyo Olympics in the prior year period, partially offset by an increase in Peacock advertising revenue. Distribution revenue decreased 13.7 per cent, reflecting the Tokyo Olympics in the prior year period and a decline in subscribers at Comcast networks, partially offset by an increase in subscribers at Peacock and contractual rate increases. Adjusted EBITDA decreased 41.5 per cent to $583 million in the third quarter of 2022, reflecting lower revenue, which more than offset lower operating expenses.
The decrease in operating expenses was primarily due to lower programming and production costs, reflecting lower sports programming costs associated with the Tokyo Olympics in the prior year period, partially offset by higher costs at Peacock. Media results include $506 million of revenue and an Adjusted EBITDA loss of $614 million related to Peacock, compared to $230 million of revenue and an Adjusted EBITDA loss of $520 million in the prior year period.
For the nine months ended September 30th 2022, revenue from the Media segment increased 2.8 per cent to $17.4 billion, primarily due to higher distribution revenue. Excluding $1.5 billion of incremental revenue from the Beijing Olympics and the NFL’s Super Bowl in the current year period and $1.8 billion of incremental revenue from the Tokyo Olympics in 2021, Media revenue increased 4.9 per cent. Adjusted EBITDA decreased 20 per cent to $3.1 billion, reflecting higher operating expenses, which more than offset higher revenue. The increase in operating expenses was due to higher programming and production expenses, other operating and administrative expenses and advertising, marketing and promotion expenses. Media results include $1.4 billion of revenue and an Adjusted EBITDA loss of $1.5 billion related to Peacock, compared to $443 million of revenue and an Adjusted EBITDA loss of $1.2 billion in 2021.
Studios
Studios revenue increased 31.4 per cent to $3.2 billion in the third quarter of 2022, primarily reflecting higher theatrical and content licensing revenue. Theatrical revenue increased $366 million to $673 million, primarily due to the successful performance of recent releases, Jurassic World: Dominion and Minions: The Rise of Gru. Content licensing revenue increased 16.8 per cent, primarily due to the timing of when content was made available by Comcast’s television and film studios under licensing agreements, including additional sales of content as production levels returned to normal. Adjusted EBITDA increased $358 million to $537 million in the third quarter of 2022, reflecting higher revenue, which more than offset higher operating expenses. The increase in operating expenses was driven by higher programming and production expenses, reflecting higher amortization of film and television production costs in the current year period.
For the nine months ended September 30, 2022, revenue from the Studios segment increased 26.4 per cent to $8.9 billion, primarily reflecting higher content licensing revenue and theatrical revenue. Adjusted EBITDA decreased 6 per cent to $783 million, reflecting higher operating expenses, which more than offset higher revenue. The increase in operating expenses was primarily driven by higher programming and production expenses.
Consolidated Financial Results
Revenue for the third quarter of 2022 decreased 1.5 per cent to $29.8 billion. Net Income (loss) Attributable to Comcast was $4.6 billion, compared to $4 in the prior year period. Adjusted Net Income increased 4.5 per cent to $4.2 billion. Adjusted EBITDA increased 5.9 per cent to $9.5 billion.