COMCAST CORP - Quarter Report: 2024 September (Form 10-Q)

Proceeds from sales of businesses and investments Purchases of investments()()Other Net cash provided by (used in) investing activities()()Financing ActivitiesProceeds from (repayments of) short-term borrowings, net ()Proceeds from borrowings Repurchases and repayments of debt()()Repurchases of common stock under repurchase program and employee plans()()Dividends paid()()Other ()Net cash provided by (used in) financing activities()()Impact of foreign currency on cash, cash equivalents and restricted cash ()Increase (decrease) in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, beginning of period Cash, cash equivalents and restricted cash, end of period$ $

See accompanying notes to condensed consolidated financial statements.

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Comcast Corporation

Condensed Consolidated Balance Sheets

(Unaudited)

(in millions, except share data)

September 30,
2024

December 31,
2023

Assets

Current Assets:

Cash and cash equivalents

Receivables, net

Other current assets

Total current assets

Film and television costs

Investments

Property and equipment, net of accumulated depreciation of $ and $

Goodwill

Franchise rights

Other intangible assets, net of accumulated amortization of $ and $

Other noncurrent assets, net

Total assets

Liabilities and Equity

Current Liabilities:

Accounts payable and accrued expenses related to trade creditors

Accrued participations and residuals

Deferred revenue

Accrued expenses and other current liabilities

Current portion of debt

Advance on sale of investment

Total current liabilities

Noncurrent portion of debt

Deferred income taxes

Other noncurrent liabilities

Commitments and contingencies

Equity:

Preferred stock—authorized, shares; issued,

Class A common stock, $ par value—authorized, shares; issued, and ; outstanding, and

Class B common stock, $ par value—authorized, shares; issued and outstanding,

Additional paid-in capital

Retained earnings

Treasury stock, Class A common shares

()

Accumulated other comprehensive income (loss)

()

Total Comcast Corporation shareholders’ equity

Noncontrolling interests

Total equity

Total liabilities and equity

See accompanying notes to condensed consolidated financial statements.

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Comcast Corporation

Condensed Consolidated Statements of Changes in Equity

(Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions, except per share data)	2024		2023		2024		2023
Redeemable Noncontrolling Interests
Balance, beginning of period	$		$		$		$

Contributions from (distributions to) noncontrolling interests, net	()		()		()		()
Other	—		—		—		()
Net income (loss)	()		()		()
Balance, end of period	$		$		$		$

Class A Common Stock
Balance, beginning of period	$		$		$		$
Repurchases of common stock under repurchase program and employee plans	—		()		()		()

Balance, end of period	$		$		$		$

Additional Paid-In Capital
Balance, beginning of period	$		$		$		$

Share-based compensation
Repurchases of common stock under repurchase program and employee plans	()		()		()		()
Issuances of common stock under employee plans
Other	—						()
Balance, end of period	$		$		$		$

Retained Earnings
Balance, beginning of period	$		$		$		$

Repurchases of common stock under repurchase program and employee plans	()		()		()		()
Dividends declared	()		()		()		()
Other	()		—		()		()
Net income
Balance, end of period	$		$		$		$

Treasury Stock at Cost
Balance, beginning and end of period	$	()	$	()	$	()	$	()


Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period	$	()	$	()	$	()	$	()

Other comprehensive income (loss)			()
Balance, end of period	$	()	$	()	$	()	$	()

Noncontrolling Interests
Balance, beginning of period	$		$		$		$
Other comprehensive income (loss)							()
Contributions from (distributions to) noncontrolling interests, net
Other	—		—		—		()
Net income (loss)	()		()		()		()
Balance, end of period	$		$		$		$

Total equity	$		$		$		$

Cash dividends declared per common share	$		$		$		$

See accompanying notes to condensed consolidated financial statements.

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Comcast Corporation

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1:

Recent Accounting Pronouncements

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Comcast Corporation

Note 2:

segments: Residential Connectivity & Platforms, Business Services Connectivity, Media, Studios and Theme Parks. $ $ $ $ $

Intersegment revenue(a)

Reconciliation of Revenue

Other revenue(b)

Eliminations(a)

()Total consolidated revenue$

Segment Adjusted EBITDA(c)

$ $ $ $ $ $

Reconciliation of total segment Adjusted EBITDA

Media, Studios and Theme Parks headquarters and other(d)

()

Corporate and other(b)(c)

()

Eliminations

()Depreciation()Amortization()Interest expense()Investment and other income (loss), net()

Income before income taxes

Three Months Ended September 30, 2023

(in millions)

Residential Connectivity & Platforms

Business Services Connectivity

Media

Studios

Theme Parks

Total

Revenue from external customers

Intersegment revenue(a)

()

Reconciliation of Revenue

Other revenue(b)

Eliminations(a)

()

Total consolidated revenue

Segment Adjusted EBITDA(c)

Reconciliation of total segment Adjusted EBITDA

Media, Studios and Theme Parks headquarters and other(d)

()

Corporate and other(b)(c)

()

Eliminations

Depreciation

()

Amortization

()

Interest expense

()

Investment and other income (loss), net

Income before income taxes

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Comcast Corporation

$ $ $ $ $

Intersegment revenue(a)

Reconciliation of Revenue

Other revenue(b)

Eliminations(a)

()Total consolidated revenue$

Segment Adjusted EBITDA(c)

$ $ $ $ $ $

Reconciliation of total segment Adjusted EBITDA

Media, Studios and Theme Parks headquarters and other(d)

()

Corporate and other(b)(c)

()

Eliminations

Depreciation()Amortization()Interest expense()Investment and other income (loss), net()

Income before income taxes

Nine Months Ended September 30, 2023

(in millions)

Residential Connectivity & Platforms

Business Services Connectivity

Media

Studios

Theme Parks

Total

Revenue from external customers

Intersegment revenue(a)

()

Reconciliation of Revenue

Other revenue(b)

Eliminations(a)

()

Total consolidated revenue

Segment Adjusted EBITDA(c)

Reconciliation of total segment Adjusted EBITDA

Media, Studios and Theme Parks headquarters and other(d)

()

Corporate and other(b)(c)

()

Eliminations

Depreciation

()

Amortization

()

Interest expense

()

Investment and other income (loss), net

Income before income taxes

(a)Our most significant intersegment revenue transactions include distribution revenue in Media related to fees from Residential Connectivity & Platforms for the rights to distribute television programming, and content licensing revenue in Studios for licenses of owned content to Media.

(b)Includes the operations of our Sky-branded video services and television networks in Germany; Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania; and Xumo, our consolidated streaming platform joint venture with Charter Communications. Corporate and other also includes overhead and personnel costs for Corporate.

(c)We use Adjusted EBITDA as the measure of profit or loss for our segments. From time to time we may report the impact of certain events, gains, losses or other charges related to our segments within Corporate and other.

(d)Includes overhead, personnel costs and costs associated with corporate initiatives for our Media, Studios and Theme Park segments.

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Comcast Corporation

Note 3:

$ $ $ Domestic wireless International connectivity Total residential connectivity Video Advertising Other Total Residential Connectivity & Platforms Segment Total Business Services Connectivity Segment Domestic advertising Domestic distribution International networks Other Total Media Segment Content licensing Theatrical Other Total Studios Segment Total Theme Parks Segment

Other revenue

Eliminations(a)

()()()()Total revenue$ $ $ $

(a)See Note 2 for additional information on intersegment revenue transactions.

$ Less: Allowance for credit losses Receivables, net$ $ $ Noncurrent deferred revenue (included in other noncurrent liabilities)$ $

Our accounts receivables include amounts not yet billed related to equipment installment plans, as summarized in the table below.


(in millions)	September 30, 2024	December 31, 2023
Receivables, net	$	$
Noncurrent receivables, net (included in other noncurrent assets, net)
Total	$	$

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Comcast Corporation

Note 4:

$ $ $ Film and television content:

Owned(a)

Licensed, including sports rights Other Total programming and production costs$ $ $ $

(a) Amount includes amortization of owned content of $ billion and $ billion for the three and nine months ended September 30, 2024, respectively, and $ billion and $ billion for the three and nine months ended September 30, 2023, respectively, as well as participations and residuals expenses.

$ Completed, not released Released, less amortization Licensed, including sports advances )$()Deferred gains (losses) on cash flow hedges Unrecognized gains (losses) on employee benefit obligations and other Accumulated other comprehensive income (loss), net of deferred taxes$()$()

Share-Based Compensation

Our share-based compensation plans consist primarily of awards of restricted share units (“RSUs”) and stock options to certain employees and directors as part of our long-term incentive compensation structure. Additionally, through our employee stock purchase plans, employees are able to purchase shares of our common stock at a discount through payroll deductions.

In March 2024, we granted million RSUs and million stock options under our annual management awards program. The weighted-average fair values associated with these grants were $ per RSU and $ per stock option. During the three months ended September 30, 2024 and 2023, share-based compensation expense recognized in our condensed consolidated statements of income was $ million and $ million, respectively. During the nine months ended September 30, 2024 and 2023, share-based compensation expense recognized in our condensed consolidated statements of income was $ million and $ million, respectively. As of September 30, 2024, we had unrecognized pretax compensation expense of $ billion related to unvested RSUs and unvested stock options.

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Comcast Corporation

Note 8:

Income taxes(a)

$ $

a) Cash payments for income taxes in the nine months ended September 30, 2024 include $ billion related to the purchase of transferable tax credits.

Noncash Activities

During the nine months ended September 30, 2024:

•we acquired $ billion of property and equipment and intangible assets that were accrued but unpaid

•we recorded a liability of $ billion for a quarterly cash dividend of $ per common share paid in October 2024

During the nine months ended September 30, 2023:

•we acquired $ billion of property and equipment and intangible assets that were accrued but unpaid

•we recorded a liability of $ billion for a quarterly cash dividend of $ per common share paid in October 2023

Cash, Cash Equivalents and Restricted Cash

$ Restricted cash included in other current assets and other noncurrent assets, net Cash, cash equivalents and restricted cash, end of period$ $

Note 9:

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ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion is provided as a supplement to, and should be read in conjunction with, the condensed consolidated financial statements and related notes (“Notes”) included in this Quarterly Report on Form 10-Q and our 2023 Annual Report on Form 10-K.

Overview

We are a global media and technology company with two primary businesses: Connectivity & Platforms and Content & Experiences. We present the operations of (1) our Connectivity & Platforms business in two segments: Residential Connectivity & Platforms and Business Services Connectivity; and (2) our Content & Experiences business in three segments: Media, Studios and Theme Parks.

Consolidated Operating Results


	Three Months Ended September 30,						Change			Nine Months Ended September 30,				Change
(in millions, except per share data)	2024			2023			%			2024		2023		%
Revenue	$	32,070		$	30,115		6.5	%		$	91,817	$	90,319	1.7	%
Costs and Expenses:
Programming and production	10,216			8,652			18.1			27,000		26,506		1.9
Marketing and promotion	1,989			1,866			6.6			5,929		5,929		—
Other operating and administrative	10,128			9,629			5.2			29,615		28,247		4.8
Depreciation	2,219			2,203			0.7			6,548		6,662		(1.7)
Amortization	1,659			1,290			28.6			4,421		4,146		6.6
%		$	8,468		$	7,916			7.0	%

Percentage changes that are considered not meaningful are denoted with NM.

Domestic advertising revenue increased for the three and nine months ended September 30, 2024 compared to the same periods in 2023 primarily due to the Paris Olympics in the third quarter of 2024. Excluding the incremental revenue associated with this event, domestic advertising revenue remained consistent for the three months ended September 30, 2024 primarily due to an increase in revenue at Peacock, offset by a decrease in revenue at our linear television networks, and it decreased for the nine months ended September 30, 2024 due to a decrease in revenue at our linear television networks, partially offset by an increase in revenue at Peacock.

Domestic distribution revenue increased for the three and nine months ended September 30, 2024 compared to the same periods in 2023 and included the Paris Olympics in the third quarter of 2024. Excluding the incremental revenue associated with this event, domestic distribution revenue increased for the three and nine months ended September 30, 2024 primarily due to increases in Peacock paid subscribers, partially offset by decreases in revenue at our linear television networks. The decreases at our networks were primarily due to declines in the number of subscribers, partially offset by contractual rate increases.

International networks revenue increased for the three and nine months ended September 30, 2024 compared to the same periods in 2023 primarily due to the positive impact of foreign currency and increases in revenue associated with the distribution of sports networks.

Other revenue increased for the three months ended September 30, 2024 compared to the same period in 2023 primarily due to an increase in revenue from the licensing of our owned content.

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* * *

Media segment total revenue included $1.5 billion and $3.6 billion related to Peacock for the three and nine months ended September 30, 2024, respectively, including amounts related to the Paris Olympics. Media segment total revenue included $830 million and $2.3 billion related to Peacock for the three and nine months ended September 30, 2023, respectively. We had 36 million and 28 million paid subscribers of Peacock as of September 30, 2024 and 2023, respectively. Peacock paid subscribers represent customers from which Peacock receives a subscription fee on a retail or wholesale basis. Paid subscribers do not include certain customers that receive Peacock as part of bundled services where Peacock does not receive fees.

Media Segment – Costs and Expenses

Programming and production costs increased for the three and nine months ended September 30, 2024 compared to the same periods in 2023 primarily due to costs associated with the Paris Olympics, higher programming costs at Peacock and increases in other sports programming costs for our domestic television networks. The increase for the nine months ended September 30, 2024 was partially offset by a decrease in entertainment content costs for our television networks.

Marketing and promotion expenses increased for the three and nine months ended September 30, 2024 compared to the same periods in 2023 primarily due to increased costs associated with the Paris Olympics. The increase for the three months ended September 30, 2024 also includes increased spending on marketing at Peacock.

Other expenses increased for the three and nine months ended September 30, 2024 compared to the same periods in 2023 primarily due to increases in costs related to Peacock.

* * *

Media segment total costs and expenses included $1.9 billion and $5.0 billion related to Peacock for the three and nine months ended September 30, 2024, respectively, including amounts related to the Paris Olympics. Media segment total costs and expenses included $1.4 billion and $4.3 billion related to Peacock for the three and nine months ended September 30, 2023, respectively.

Studios Segment Results of Operations


	Three Months Ended September 30,				Change		Nine Months Ended September 30,				Change
(in millions)	2024		2023		%		2024		2023		%
Revenue
Content licensing	$	1,865	$	1,691	10.3	%	$	5,680	$	5,856	(3.0)	%
Theatrical	611		504		21.3		1,178		1,735		(32.1)
Other	350		324		8.2		964		970		(0.6)
Total revenue	2,826		2,518		12.3		7,822		8,561		(8.6)
Costs and Expenses
Programming and production	1,818		1,569		15.8		5,176		5,866		(11.8)
Marketing and promotion	301		314		(4.3)		1,126		1,155		(2.5)
Other	240		205		16.8		685		579		18.3
Total costs and expenses	2,359		2,089		12.9		6,987		7,600		(8.1)
Adjusted EBITDA	$	468	$	429	9.0	%	$	835	$	961	(13.1)	%

Studios Segment – Revenue

Content licensing revenue increased for the three months ended September 30, 2024 compared to the same period in 2023 primarily due to the timing of when content was made available by our television studios under licensing agreements, including the impact of the work stoppages in the prior year period.

Content licensing revenue decreased for the nine months ended September 30, 2024 compared to the same period in 2023 primarily due to the timing of when content was made available by our film studios, partially offset by the timing of when content was made available by our television studios under licensing agreements, including the impact of the work stoppages in the prior year period.

Theatrical revenue increased for the three months ended September 30, 2024 compared to the same period in 2023 primarily due to higher revenue from recent releases, including Despicable Me 4 and Twisters.

Theatrical revenue decreased for the nine months ended September 30, 2024 compared to the same period in 2023 primarily due to higher revenue from releases in the prior year period, including The Super Mario Bros., Oppenheimer and Fast X, compared to revenue from recent releases, including Despicable Me 4, Kung Fu Panda 4 and Twisters.

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Studios Segment – Costs and Expenses

Programming and production costs increased for the three months ended September 30, 2024 compared to the same period in 2023 primarily due to higher costs associated with content licensing sales, including the impact of work stoppages in the prior year period.

Programming and production costs decreased for the nine months ended September 30, 2024 compared to the same period in 2023 primarily due to lower costs associated with theatrical releases, partially offset by higher costs associated with content licensing sales, including the impact of work stoppages in the prior year period.

Marketing and promotion expenses decreased for the three and nine months ended September 30, 2024 compared to the same periods in 2023 primarily due to decreased spending on recent and upcoming theatrical film releases in the current year periods.

Theme Parks Segment Results of Operations


	Three Months Ended September 30,				Change		Nine Months Ended September 30,				Change
(in millions)	2024		2023		%		2024		2023		%
Revenue	$	2,289	$	2,418	(5.3)	%	$	6,243	$	6,576	(5.1)	%
Costs and expenses	1,442		1,435		0.5		4,132		4,103		0.7
Adjusted EBITDA	$	847	$	983	(13.8)	%	$	2,111	$	2,473	(14.6)	%

Theme parks segment revenue decreased for the three and nine months ended September 30, 2024 compared to the same periods in 2023 primarily due to decreases at our domestic theme parks driven by decreased park attendance. The decrease for the nine months ended September 30, 2024 also includes the negative impact of foreign currency at our international theme parks.

Theme parks segment costs and expenses were consistent for the three and nine months ended September 30, 2024 compared to the same periods in 2023. Theme parks segment costs and expenses were consistent for the nine months ended September 30, 2024 primarily due to higher costs associated with park operations, offset by the impact of foreign currency.

Content & Experiences Headquarters, Other and Eliminations

Headquarters and Other Results of Operations


	Three Months Ended September 30,				Change		Nine Months Ended September 30,				Change
(in millions)	2024		2023		%		2024		2023		%
Revenue	$	11	$	13	(16.8)	%	$	32	$	45	(27.1)	%
Costs and expenses	211		191		10.6		675		654		3.1
Adjusted EBITDA	$	(200)	$	(178)	(12.6)	%	$	(642)	$	(610)	(5.3)	%

Headquarters and Other expenses include overhead, personnel costs and costs associated with corporate initiatives.

Eliminations


	Three Months Ended September 30,				Change		Nine Months Ended September 30,				Change
(in millions)	2024		2023		%		2024		2023		%
Revenue	$	(758)	$	(419)	80.7	%	$	(1,994)	$	(1,867)	6.8	%
Costs and expenses	(796)		(436)		82.4		(2,101)		(1,965)		7.0
Adjusted EBITDA	$	38	$	17	(125.6)	%	$	108	$	97	(10.7)	%

Amounts represent eliminations of transactions between segments in our Content & Experiences business, the most significant being content licensing between the Studios and Media segments, which are affected by the timing of recognition of content licenses.

Eliminations increase or decrease to the extent that additional content is made available to our other segments within the Content & Experiences business. Refer to Note 2 for additional information on transactions between our segments.

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Corporate, Other and Eliminations

Corporate and Other Results of Operations


	Three Months Ended September 30,				Change		Nine Months Ended September 30,				Change
(in millions)	2024		2023		%		2024		2023		%
Revenue	$	675	$	643	5.0	%	$	2,148	$	2,004	7.2	%
Costs and expenses	978		893		9.6		3,040		2,844		6.9
Adjusted EBITDA	$	(302)	$	(249)	(21.3)	%	$	(892)	$	(841)	(6.1)	%

Corporate and Other primarily includes overhead and personnel costs; Sky branded video services and television networks in Germany; Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania; and Xumo, our consolidated streaming platform joint venture.

Corporate and Other revenue increased for the three months ended September 30, 2024 compared to the same period in 2023 driven by Spectacor and Xumo. Corporate and other revenue increased for the nine months ended September 30, 2024 compared to the same period in 2023 driven by an increase across our businesses.

Corporate and Other costs and expenses increased for the three months ended September 30, 2024 compared to the same period in 2023 due to increased marketing associated with the Paris Olympics and increases related to Spectacor and Xumo. Corporate and Other costs and expenses increased for the nine months ended September 30, 2024 compared to the same period in 2023 primarily due to increases related to corporate functions, increased marketing associated with the Paris Olympics, and Xumo.

Eliminations


	Three Months Ended September 30,				Change		Nine Months Ended September 30,				Change
(in millions)	2024		2023		%		2024		2023		%
Revenue	$	(1,495)	$	(1,358)	10.1	%	$	(4,174)	$	(4,157)	0.4	%
Costs and expenses	(1,436)		(1,375)		4.5		(4,088)		(4,191)		(2.5)
Adjusted EBITDA	$	(59)	$	16	NM		$	(86)	$	34	NM

Percentage changes that are considered not meaningful are denoted with NM.

Amounts represent eliminations of transactions between our Connectivity & Platforms, Content & Experiences and other businesses, the most significant being distribution of television network programming between the Media and Residential Connectivity & Platforms segments. Current year amounts reflect an increase associated with the Paris Olympics. Eliminations of transactions between segments within Content & Experiences are presented separately. Refer to Note 2 for additional information on transactions between our segments.

Non-GAAP Financial Measures

Consolidated Adjusted EBITDA

Adjusted EBITDA is a non-GAAP financial measure and is the primary basis used to measure the operational strength and performance of our businesses as well as to assist in the evaluation of underlying trends in our businesses. This measure eliminates the significant level of noncash depreciation and amortization expense that results from the capital-intensive nature of certain of our businesses and from intangible assets recognized in business combinations. It is also unaffected by our capital and tax structures, and by our investment activities, including the results of entities that we do not consolidate, as our management excludes these results when evaluating our operating performance. Our management and Board of Directors use this financial measure to evaluate our consolidated operating performance and the operating performance of our operating segments and to allocate resources and capital to our operating segments. It is also a significant performance measure in our annual incentive compensation programs. Additionally, we believe that Adjusted EBITDA is useful to investors because it is one of the bases for comparing our operating performance with that of other companies in our industries, although our measure of Adjusted EBITDA may not be directly comparable to similar measures used by other companies.

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We define Adjusted EBITDA as net income attributable to Comcast Corporation before net income (loss) attributable to noncontrolling interests, income tax expense, investment and other income (loss), net, interest expense, depreciation and amortization expense, and other operating gains and losses (such as impairment charges related to fixed and intangible assets and gains or losses on the sale of long-lived assets), if any. From time to time, we may exclude from Adjusted EBITDA the impact of certain events, gains, losses or other charges (such as significant legal settlements) that affect the period-to-period comparability of our operating performance.

We reconcile consolidated Adjusted EBITDA to net income attributable to Comcast Corporation. This measure should not be considered a substitute for operating income (loss), net income (loss), net income (loss) attributable to Comcast Corporation, or net cash provided by operating activities that we have reported in accordance with GAAP.

Reconciliation from Net Income Attributable to Comcast Corporation to Adjusted EBITDA


	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2024		2023		2024		2023
Net income attributable to Comcast Corporation	$	3,629	$	4,046	$	11,415	$	12,128
Net income (loss) attributable to noncontrolling interests	(53)		(49)		(222)		(175)
Income tax expense	1,243		1,468		3,906		4,481
Interest expense	1,037		1,060		3,065		3,068
Investment and other (income) loss, net	3		(50)		140		(672)
Depreciation	2,219		2,203		6,548		6,662
Amortization	1,659		1,290		4,421		4,146
Adjustments(a)	(2)		(6)		(11)		(16)
Adjusted EBITDA	$	9,735	$	9,962	$	29,261	$	29,621

(a)Amounts represent the impact of certain events, gains, losses or other charges that are excluded from Adjusted EBITDA, including costs related to our investment portfolio.

Constant Currency

Constant currency and constant currency growth rates are non-GAAP financial measures that present our results of operations excluding the estimated effects of foreign currency exchange rate fluctuations. Certain of our businesses, including Connectivity & Platforms, have operations outside the United States that are conducted in local currencies. As a result, the comparability of the financial results reported in U.S. dollars is affected by changes in foreign currency exchange rates. In our Connectivity & Platforms business, we use constant currency and constant currency growth rates to evaluate the underlying performance of the businesses, and we believe they are helpful for investors because such measures present operating results on a comparable basis year over year to allow the evaluation of their underlying performance.

Constant currency and constant currency growth rates are calculated by comparing the results for each comparable prior year period adjusted to reflect the average exchange rates from each current year period presented rather than the actual exchange rates that were in effect during the respective periods.

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Reconciliation of Connectivity & Platforms Constant Currency


	Three Months Ended September 30, 2023								Nine Months Ended September 30, 2023
(in millions)	As Reported			Effects of Foreign Currency		Constant Currency Amounts			As Reported			Effects of Foreign Currency		Constant Currency Amounts
Revenue
Residential Connectivity & Platforms	$	17,951		$	99	$	18,050		$	53,888		$	253	$	54,141
Business Services Connectivity	2,320			—		2,320			6,894			1		6,895
Total Connectivity & Platforms revenue	$	20,271		$	99	$	20,370		$	60,783		$	254	$	61,037
Adjusted EBITDA
Residential Connectivity & Platforms	$	6,886		$	16	$	6,902		$	20,672		$	39	$	20,711
Business Services Connectivity	1,335			(1)		1,334			3,988			(1)		3,988
Total Connectivity & Platforms Adjusted EBITDA	$	8,221		$	15	$	8,237		$	24,660		$	39	$	24,699
Adjusted EBITDA Margin
Residential Connectivity & Platforms	38.4		%	(20) bps		38.2		%	38.4		%	(10) bps		38.3		%
Business Services Connectivity	57.5			- bps		57.5			57.8			- bps		57.8
Total Connectivity & Platforms Adjusted EBITDA margin	40.6		%	(20) bps		40.4		%	40.6		%	(10) bps		40.5		%


	Three Months Ended September 30, 2023						Nine Months Ended September 30, 2023
	As Reported		Effects of Foreign Currency		Constant Currency Amounts		As Reported		Effects of Foreign Currency		Constant Currency Amounts
Average monthly total Connectivity & Platforms revenue per customer relationship	$	129.20	$	0.63	$	129.83	$	128.95	$	0.54	$	129.49
Average monthly total Connectivity & Platforms Adjusted EBITDA per customer relationship	$	52.40	$	0.10	$	52.50	$	52.32	$	0.08	$	52.40


	Three Months Ended September 30, 2023						Nine Months Ended September 30, 2023
(in millions)	As Reported		Effects of Foreign Currency		Constant Currency Amounts		As Reported		Effects of Foreign Currency		Constant Currency Amounts
Costs and Expenses
Programming	$	4,460	$	28	$	4,488	$	13,638	$	74	$	13,712
Technical and support	1,867		8		1,874		5,525		20		5,544
Direct product costs	1,554		23		1,577		4,362		58		4,420
Marketing and promotion	1,169		7		1,176		3,585		17		3,602
Customer service	692		2		695		2,097		9		2,105
Other	2,308		15		2,323		6,915		38		6,954
Total Connectivity & Platforms costs and expenses	$	12,050	$	84	$	12,134	$	36,122	$	216	$	36,338

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Reconciliation of Residential Connectivity & Platforms Constant Currency


	Three Months Ended September 30, 2023						Nine Months Ended September 30, 2023
(in millions)	As Reported		Effects of Foreign Currency		Constant Currency Amounts		As Reported		Effects of Foreign Currency		Constant Currency Amounts
Revenue
Domestic broadband	$	6,366	$	—	$	6,366	$	19,086	$	—	$	19,086
Domestic wireless	917		—		917		2,644		—		2,644
International connectivity	1,109		31		1,141		3,009		77		3,086
Total residential connectivity	8,393		31		8,424		24,739		77		24,816
Video	7,154		47		7,201		21,895		124		22,018
Advertising	960		11		971		2,860		25		2,885
Other	1,444		10		1,454		4,394		28		4,422
Total revenue	17,951		99		18,050		53,888		253		54,141
Costs and Expenses
Programming	4,460		28		4,488		13,638		74		13,712
Other	6,605		55		6,659		19,578		140		19,718
Total costs and expenses	11,065		83		11,148		33,216		214		33,430
Adjusted EBITDA	$	6,886	$	16	$	6,902	$	20,672	$	39	$	20,711

Other Adjustments

From time to time, we present adjusted information, such as revenue, to exclude the impact of certain events, gains, losses or other charges. This adjusted information is a non-GAAP financial measure. We believe, among other things, that the adjusted information may help investors evaluate our ongoing operations and can assist in making meaningful period-over-period comparisons.

Liquidity and Capital Resources


	Nine Months Ended September 30,
(in billions)	2024		2023
Cash provided by operating activities	$	19.6	$	22.6
Cash used in investing activities	$	(10.6)	$	(11.7)
Cash used in financing activities	$	(6.5)	$	(9.1)


(in billions)	September 30, 2024		December 31, 2023
Cash and cash equivalents	$	8.8	$	6.2
Debt	$	101.4	$	97.1

Our businesses generate significant cash flows from operating activities. We believe that we will be able to continue to meet our current and long-term liquidity and capital requirements, including fixed charges, through our cash flows from operating activities; existing cash, cash equivalents and investments; available borrowings under our existing credit facility; and our ability to obtain future external financing. We anticipate that we will continue to use a substantial portion of our cash flows from operating activities in repaying our debt obligations, funding our capital expenditures and cash paid for intangible assets, investing in business opportunities, and returning capital to shareholders.

We maintain significant availability under our revolving credit facility and our commercial paper program to meet our short-term liquidity requirements. Our commercial paper program generally provides a lower-cost source of borrowing to fund our short-term working capital requirements. As of September 30, 2024, amounts available under our revolving credit facility, net of amounts outstanding under our commercial paper program and outstanding letters of credit and bank guarantees, totaled $11.8 billion.

We entered into a new revolving credit facility in May 2024 (see Note 5). Our new revolving credit facility contains a financial covenant pertaining to leverage, which is the ratio of debt to EBITDA, as defined in the agreement. Compliance with this financial covenant is tested on a quarterly basis. As of September 30, 2024, we met this financial covenant, and we expect to remain in compliance with this financial covenant.

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Operating Activities

Components of Net Cash Provided by Operating Activities


	Nine Months Ended September 30,
(in millions)	2024				2023
Operating income	$	18,304			$	18,830
Depreciation and amortization	10,969				10,807
(in billions)	September 30, 2024		December 31, 2023
Debt Subject to Cross-Guarantees
Comcast	$	96.5	$	91.9
NBCUniversal(a)	1.6		1.6
Comcast Cable(a)	0.9		0.9
	99.0		94.4
Debt Subject to One-Way Guarantees
Sky	3.2		3.6
Other(a)	0.1		0.1
	3.3		3.8
Debt Not Guaranteed
Universal Beijing Resort(b)	3.6		3.5
Other	1.4		1.5
	5.0		5.0
Debt issuance costs, premiums, discounts, fair value adjustments for acquisition accounting and hedged positions, net	(6.0)		(6.1)
Total debt	$	101.4	$	97.1

(a)NBCUniversal Media, LLC (“NBCUniversal”), Comcast Cable Communications, LLC (“Comcast Cable”) and Comcast Holdings Corporation (“Comcast Holdings”), which is included within other debt subject to one-way guarantees, are each consolidated subsidiaries subject to the periodic reporting requirements of the SEC. The guarantee structures and related disclosures in this section, together with Exhibit 22 to our Annual Report on Form 10-K, satisfy these reporting obligations.

(b)Universal Beijing Resort debt financing is secured by the assets of Universal Beijing Resort and the equity interests of the investors. See Note 6 for additional information.

Cross-Guarantees

Comcast, NBCUniversal and Comcast Cable (the “Guarantors”) fully and unconditionally, jointly and severally, guarantee each other’s debt securities. NBCUniversal and Comcast Cable also guarantee other borrowings of Comcast, including its revolving credit facility. These guarantees rank equally with all other general unsecured and unsubordinated obligations of the respective Guarantors. However, the obligations of the Guarantors under the guarantees are structurally subordinated to the indebtedness and other liabilities of their respective non-guarantor subsidiaries. The obligations of each Guarantor are limited to the maximum amount that would not render such Guarantor’s obligations subject to avoidance under applicable fraudulent conveyance provisions of U.S. and non-U.S. law. Each Guarantor’s obligations will remain in effect until all amounts payable with respect to the guaranteed securities have been paid in full. However, a guarantee by NBCUniversal or Comcast Cable of Comcast’s debt securities, or by NBCUniversal of Comcast Cable’s debt securities, will terminate upon a disposition of such Guarantor entity or all or substantially all of its assets.

The Guarantors are each holding companies that principally hold investments in, borrow from and lend to non-guarantor subsidiary operating companies; issue and service third-party debt obligations; repurchase shares and pay dividends; and engage in certain corporate and headquarters activities. The Guarantors are generally dependent on non-guarantor subsidiary operating companies to fund these activities.

As of September 30, 2024 and December 31, 2023, the combined Guarantors have noncurrent notes payable to non-guarantor subsidiaries of $81 billion and $136 billion, respectively, and noncurrent notes receivable from non-guarantor subsidiaries of $19 billion and $18 billion, respectively. This financial information is that of the Guarantors presented on a combined basis with intercompany balances between the Guarantors eliminated. The combined financial information excludes financial information of non-guarantor subsidiaries. The underlying net assets of the non-guarantor subsidiaries are significantly in excess of the Guarantor obligations. Excluding investments in non-guarantor subsidiaries, external debt and the noncurrent notes payable and receivable with non-guarantor subsidiaries, the Guarantors do not have material assets, liabilities or results of operations.

One-Way Guarantees

Comcast provides full and unconditional guarantees of certain debt issued by Sky Limited (“Sky”), including all of its senior notes, and other consolidated subsidiaries not subject to the periodic reporting requirements of the SEC.

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Comcast also provides a full and unconditional guarantee of $138 million principal amount of subordinated debt issued by Comcast Holdings. Comcast’s obligations under this guarantee are subordinated and subject, in right of payment, to the prior payment in full of all of Comcast’s senior indebtedness, including debt guaranteed by Comcast on a senior basis, and are structurally subordinated to the indebtedness and other liabilities of its non-guarantor subsidiaries (for purposes of this Comcast Holdings discussion, Comcast Cable and NBCUniversal are included within the non-guarantor subsidiary group). Comcast’s obligations as guarantor will remain in effect until all amounts payable with respect to the guaranteed debt have been paid in full. However, the guarantee will terminate upon a disposition of Comcast Holdings or all or substantially all of its assets. Comcast Holdings is a consolidated subsidiary holding company that directly or indirectly holds 100% and approximately 37% of our equity interests in Comcast Cable and NBCUniversal, respectively.

As of September 30, 2024 and December 31, 2023, Comcast and Comcast Holdings, the combined issuer and guarantor of the guaranteed subordinated debt, have noncurrent senior notes payable to non-guarantor subsidiaries of $47 billion and $104 billion, respectively, and noncurrent notes receivable from non-guarantor subsidiaries of $15 billion and $14 billion, respectively. This financial information is that of Comcast and Comcast Holdings presented on a combined basis with intercompany balances between Comcast and Comcast Holdings eliminated. The combined financial information excludes financial information of non-guarantor subsidiaries of Comcast and Comcast Holdings. The underlying net assets of the non-guarantor subsidiaries of Comcast and Comcast Holdings are significantly in excess of the obligations of Comcast and Comcast Holdings. Excluding investments in non-guarantor subsidiaries, external debt, and the noncurrent notes payable and receivable with non-guarantor subsidiaries, Comcast and Comcast Holdings do not have material assets, liabilities or results of operations.

Critical Accounting Estimates

The preparation of our condensed consolidated financial statements requires us to make estimates that affect the reported amounts of assets, liabilities, revenue and expenses, and the related disclosure of contingent assets and contingent liabilities. We base our judgments on our historical experience and on various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making estimates about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

We believe our estimates associated with the valuation and impairment testing of goodwill are critical in the preparation of our consolidated financial statements. We performed a quantitative assessment as of July 1, 2024 for goodwill in our Media segment. Based on this assessment, the estimated fair value of the Media reporting unit substantially exceeded its carrying value and no impairment was required.

Changes in market conditions, laws and regulations, and key assumptions made in future quantitative assessments, including expected cash flows, competitive factors and discount rates, could negatively impact the results of future impairment testing and could result in the recognition of an impairment charge.

For a more complete discussion of the accounting estimates that we have identified as critical in the preparation of our condensed consolidated financial statements, please refer to our Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2023 Annual Report on Form 10-K.

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We have evaluated the information required under this item that was disclosed in our 2023 Annual Report on Form 10-K and there have been no material changes to this information.

ITEM 4: CONTROLS AND PROCEDURES

Conclusions regarding disclosure controls and procedures

Our principal executive and principal financial officers, after evaluating the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this report, have concluded that, based on the evaluation of these controls and procedures required by paragraph (b) of Exchange Act Rules 13a-15 or 15d-15, such disclosure controls and procedures were effective.

Changes in internal control over financial reporting

There were no changes in internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II: OTHER INFORMATION

ITEM 1: LEGAL PROCEEDINGS

See Note 9 included in this Quarterly Report on Form 10-Q for a discussion of legal proceedings.

ITEM 1A: RISK FACTORS

There have been no material changes from the risk factors previously disclosed in Item 1A of our 2023 Annual Report on Form 10-K.

ITEM 2: UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The table below summarizes Comcast’s common stock repurchases during the three months ended September 30, 2024.


Period	Total Number of Shares Purchased	Average Price Per Share		Total Number of Shares Purchased as Part of Publicly Announced Authorization	Total Dollar Amount Purchased Under the Publicly Announced Authorization		Maximum Dollar Value of Shares That May Yet Be Purchased Under the Publicly Announced Authorization(a)
July 1-31, 2024	17,765,351	$	38.77	17,765,351	$	688,839,057	$	10,283,114,218
August 1-31, 2024	13,503,765	$	39.62	13,503,765	$	534,976,025	$	9,748,138,194
September 1-30, 2024	18,644,155	$	39.96	18,644,155	$	744,976,969	$	9,003,161,225
Total	49,913,271	$	39.44	49,913,271	$	1,968,792,051	$	9,003,161,225

(a)In September 2022, our Board of Directors approved a share repurchase program authorization of $20.0 billion. In January 2024, our Board of Directors terminated the existing program and approved a new share repurchase authorization of $15.0 billion, which has no expiration date. We expect to repurchase additional shares of our Class A common stock under this authorization, in the open market or in private transactions, subject to market and other conditions.

ITEM 6: EXHIBITS


Exhibit No.						Description
31						Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32						Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101						The following financial statements from Comcast Corporation’s Quarterly Report on Form 10-Q for the nine months ended September 30, 2024, filed with the Securities and Exchange Commission on October 31, 2024, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) the Condensed Consolidated Statements of Income; (ii) the Condensed Consolidated Statements of Comprehensive Income; (iii) the Condensed Consolidated Statements of Cash Flows; (iv) the Condensed Consolidated Balance Sheets; (v) the Condensed Consolidated Statements of Changes in Equity; and (vi) the Notes to Condensed Consolidated Financial Statements.
104						Cover Page Interactive Data File (embedded within the iXBRL document).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


						COMCAST CORPORATION

By:						/s/ DANIEL C. MURDOCK
						Daniel C. Murdock Executive Vice President, Chief Accounting Officer and Controller (Principal Accounting Officer)

Date: October 31, 2024

COMCAST CORP - Quarter Report: 2024 September (Form 10-Q)

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