Comcast exceeded revenue and profit estimates in the fourth quarter, losing fewer broadband subscribers than expected. The company also increased its dividend by 7%, as announced on Thursday.
- KEY POINTS.
- Comcast’s revenue increased 2.3% to $31.25 billion in the fourth quarter.
- Net income increased 7.8% to $3.26 billion, or 81 cents per share.
- Peacock added 3 million subscribers during the quarter, bringing the total to 31 million.
- Comcast raised its dividend by eight cents, or 7%, to $1.24 per share.
Here’s how Comcast fared compared to analyst estimates gathered by LSEG, formerly known as Refinitiv.
- Earnings per share: 84 cents adjusted compared to 79 cents expected.
- Revenue: $31.25 billion, compared to $30.51 billion expected
For the quarter ended December 31, net income increased 7.8% to $3.26 billion, or 81 cents per share, from $3.02 billion, or 70 cents per share, the previous year. Revenue increased by 2.3% compared to the previous year. aAdjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) remained flat year on year at approximately $8 billion.
“For the third consecutive year, we generated the highest revenue, adjusted EBITDA, and adjusted EPS in our company’s history,” Comcast CEO Brian Roberts said in a statement. “We also reported the highest adjusted EBITDA on record at Theme Parks; were the #1 studio in worldwide box office for the first time since 2015; and maintained Peacock’s position as the fastest growing streamer in the U.S.”
Comcast raised its dividend by 8 cents, or 7%, to $1.24 per share on an annualized basis in 2024. It is the 16th consecutive year that the company has increased its dividend. Comcast also approved a new $15 billion share repurchase program authorization with no expiration date, which became effective on Friday. The fourth quarter’s free cash flow was $1.7 billion, with the year’s total at $13 billion.
Comcast lost 34,000 domestic broadband subscribers, which is less than the average analyst estimate of approximately 62,000, according to StreetAccount. Despite the losses, domestic broadband revenue increased by 3.7% to $6.4 billion. The average revenue per user increased by 3.9% as customers connected more devices and paid more for faster Internet speeds.
Comcast added 310,000 wireless subscribers, falling short of the average analyst forecast of 342,000 gains. The company lost 389,000 video subscribers, less than the average analyst estimate of nearly 458,000. Theme park adjusted EBITDA increased 11.6% to $872 million, falling short of analyst expectations of around $897 million. Nonetheless, the figure surpassed Comcast’s previous quarterly record.
Frequently asked question
Did Comcast’s stock fall after it lost broadband subscribers?
Comcast’s stock fell more than 8% Thursday after the company reported a loss of 18,000 residential broadband customers in the third quarter and warned that losses would be greater in the fourth quarter.
What is the revenue trend for Comcast?
Comcast’s revenue for the fiscal year ending September 30, 2023 was $120.871 billion, a 0.28% decrease year over year. Comcast’s annual revenue for 2022 was $121.427 billion, up 4.33% from 2021. Comcast’s annual revenue for 2021 was $116.385 billion, up 12.38% from 2020.
What is Comcast profit in 2023?
Comcast’s gross profit for the quarter ended September 30, 2023 was $11.834 billion, a 2.41% increase year on year. Comcast’s gross profit for the fiscal year ending September 30, 2023 was $45.751 billion, a 0.77% increase year over year. Comcast’s annual gross profit for 2022 was $44.951 billion, a 6.23% increase over 2021.
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