Comcast, the American telecommunications conglomerate, has exceeded revenue and profit estimates for the fourth quarter of 2023. The company reported that it lost fewer broadband subscribers than anticipated and subsequently raised its dividend by 7%. These positive results have solidified Comcast’s position as a leading player in the industry.
Financial Performance
Comcast’s earnings per share for the fourth quarter were 84 cents, surpassing analysts’ expectations of 79 cents. Additionally, the company generated $31.25 billion in revenue, outperforming the estimated $30.51 billion. Net income rose by 7.8% to $3.26 billion, compared to $3.02 billion in the previous year. Overall, Comcast experienced a 2.3% increase in revenue compared to the same period last year.
Brian Roberts, the CEO of Comcast, expressed his satisfaction with the company’s performance, stating, “For the third consecutive year, we generated the highest revenue, adjusted EBITDA, and adjusted EPS in our company’s history.” He also highlighted Comcast’s achievements in other areas, such as Theme Parks, where they reported the highest adjusted EBITDA on record. Furthermore, Comcast maintained its position as the fastest-growing streamer in the U.S. with its streaming service, Peacock.
Dividend Increase and Share Repurchase Program
Comcast announced an 8 cents per share increase in its dividend, amounting to a 7% raise on an annualized basis for 2024. This marks the 16th consecutive year that the company has raised its dividend, demonstrating its commitment to rewarding shareholders. Additionally, Comcast approved a new share repurchase program authorization of $15 billion with no expiration date, effective immediately.
Broadband and Wireless Subscribers
Despite losing 34,000 domestic broadband subscribers, Comcast performed better than expected, as analysts had estimated losses of around 62,000 subscribers. The company’s domestic broadband revenue still increased by 3.7% to $6.4 billion. This growth can be attributed to a 3.9% increase in average revenue per user, driven by customers connecting more devices and opting for higher internet speeds.
Comcast added 310,000 wireless subscribers, slightly below the average analyst forecast of 342,000. While the company experienced a loss of 389,000 video subscribers, it was narrower than the estimated loss of nearly 458,000.
Theme Parks and NBCUniversal Results
Comcast’s Theme Parks segment reported an 11.6% rise in adjusted EBITDA to $872 million, although it fell short of analyst estimates. Nevertheless, this figure broke a quarterly record for the company, highlighting the success of its theme park operations.
NBCUniversal, a subsidiary of Comcast, saw significant growth in its flagship streaming service, Peacock. The service added 3 million subscribers, contributing to a revenue increase of over 50% to $1.03 billion. This marked the first time Peacock surpassed $1 billion in a single quarter. Although Peacock still reported a loss of $825 million, it narrowed its losses from $978 million in the same period the previous year. Peacock ended the quarter with a total of 31 million subscribers.
Overall media revenue for NBCUniversal rose by 3.1% to nearly $7 billion. However, adjusted EBITDA fell by 50% to $108 million due to increased sports programming costs and higher programming costs at Peacock. The rise in sports costs can be attributed to higher media rights for NFL programming, the Premier League, and the Big 10.
Conclusion
Comcast’s strong financial performance in the fourth quarter of 2023 has positioned the company as a leader in the telecommunications industry. Despite losing some broadband and video subscribers, Comcast managed to exceed revenue and profit estimates. The company’s dividend increase and share repurchase program demonstrate its commitment to rewarding shareholders. Additionally, the success of Peacock and the Theme Parks segment further solidify Comcast’s position in the media and entertainment sector. As Comcast continues to innovate and adapt to changing consumer demands, it is well-positioned for future growth and success.
