PHILADELPHIA – Comcast Corporation (NASDAQ: CMCSA) today reported results for the quarter ended March 31, 2020.
1st Quarter 2020 Highlights:
- Generated Consolidated Adjusted EBITDA of $8.1 Billion, Adjusted EPS of $0.71 and Free Cash Flow of $3.3 Billion
- Total Customer Relationships Across Cable Communications and Sky Increased 2.6% Year-Over-Year to 55.8 Million
- Cable Communications Total Customer Relationships Increased by 371,000 in the Quarter, the Best First Quarter Result on Record
- Total High-Speed Internet Customer Net Additions Were 477,000 (Not Including 32,000 Free Internet Essentials Customers), the Best Quarterly Result in 12 Years
- Cable Communications Adjusted EBITDA Increased 6.1% Driven by Strength in High-Speed Internet and Business Services
Key Responses to COVID-19:
- Maintained Network Reliability: Since March 1, Cable Communications Has Seen a 33% Increase in Upstream Traffic and a 40% Increase in Wireless Data Usage Over WiFi
- Keeping Customers Connected: Cable Communications and Sky are expanding access to vital internet and phone services, with Xfinity WiFi outdoor and business hotspots open in the U.S. for free, and Sky Talk offering free calls to UK landlines any time of day
- Supporting our People: Across Cable Communications, NBCUniversal and Sky, we have committed $500 Million to support employees during this time. All employees who can work from home, are, including over 95% of Cable Communications’ call center employees, and ensuring customer-facing employees can do their job safely
- See More About Comcast’s Response to COVID-19 - https://corporate.comcast.com/covid-19
Our Cable Communications results, while strong in the first quarter 2020, will be negatively affected in the second quarter by the significant deterioration in domestic economic conditions in recent weeks and by the costs associated with our support of customer connectivity as the population increasingly works and learns remotely from home. NBCUniversal and Sky results also will be negatively impacted to a greater extent in the second quarter 2020. As a result, we expect the impacts of COVID-19 to increase in significance in the second quarter 2020 and to have a material adverse impact on our consolidated results of operations over the near-to-medium term.
Consolidated Financial Results
Revenue for the first quarter of 2020 decreased 0.9% to $26.6 billion. Net Income Attributable to Comcast decreased 39.6% to $2.1 billion. Adjusted Net Income decreased 6.1% to $3.3 billion. Adjusted EBITDA decreased 4.9% to $8.1 billion.
Earnings per Share (EPS) for the first quarter of 2020 was $0.46, a decrease of 40.3% compared to the first quarter of 2019. Adjusted EPS decreased 6.6% to $0.71.
Capital Expenditures decreased 10.1% to $1.9 billion in the first quarter of 2020. Cable Communications’ capital expenditures decreased 6.9% to $1.3 billion in the first quarter of 2020. NBCUniversal’s capital expenditures decreased 16.7% to $377 million. Sky's capital expenditures decreased 24.1% to $197 million.
Revenue for Cable Communications increased 4.5% to $14.9 billion in the first quarter of 2020, driven primarily by increases in high-speed internet, business services and wireless revenue.
High-speed internet revenue increased 9.3%, driven by an increase in the number of residential high-speed internet customers as well as an increase in average rates. Business services revenue increased 8.0%, reflecting an increase in average rates and an increase in the number of customers receiving our services. Wireless revenue increased 52.1%, primarily due to an increase in the number of customer lines. Other revenue increased 7.0%, primarily reflecting increases in revenue from our security and automation services and from licensing our X1 and technology platforms.
Video revenue was consistent with the prior year period, due to an increase in average rates, offset by a decline in the number of residential video customers. Advertising revenue was consistent with the prior year period, primarily reflecting an increase in political advertising revenue, offset by reduced advertiser spending due to COVID-19. Excluding political advertising revenue, advertising revenue decreased 4.6%. Voice revenue decreased 9.2%, due to decreases in average rates and in the number of residential voice customers.
Total Customer Relationships increased by 371,000 to 31.9 million in the first quarter of 2020. Residential customer relationships increased by 360,000 and business customer relationships increased by 11,000. Total high-speed internet customer net additions were 477,000, total video customer net losses were 409,000 and total voice customer net losses were 89,000. In addition, Cable Communications added 216,000 wireless lines in the quarter.
Read the full announcement here.