CMCSA 3Q23 Quick Take
Cable subscriber results were consistent with messaging at fall conferences but were lower than consensus estimates. Cable revenue and EBITDA beat estimates, mostly on stronger than expected results at Sky and stronger than expected pay-tv revenue. We suspect investors will be concerned about softer domestic broadband subscriber trends, despite the solid revenue and EBITDA result.Content & Experiences revenue and EBITDA also beat. Theme Parks continued their trend of topping expectations, with a continued recovery internationally, media was in-line, and studios were a little soft (and facing a tough comparison). The revenue and EBITDA beat was largely driven by lower eliminations, which were impacted by the timing of recognition of content licenses (we suspect an artifact of the strike).
FCF beat handily, despite higher capex, with the beat split evenly between stronger EBITDA and WC benefits. Share repurchases were well ahead of estimates. Taken together, the businesses that investors care most about were a little soft (except for Parks); the strength came from businesses investors care less about or from non-operating benefits. We anticipate a negative reaction. We run through a detailed review of results, and implications for Charter and others in this note.
Comcast is a media and technology company. The company's segments are: Cable Communications, which provides internet, video, voice, and security and automation services in the United States individually and as bundled services at a discounted rate over its cable distribution system to residential and business customers; NBCUniversal, which includes a portfolio of national cable networks that provide a variety of entertainment, news and information, and sports content, regional sports and news networks, international cable networks, and cable television studio production operations; and Sky, which owns a portfolio of pay television channels that provide entertainment, news, sports and movies.
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- Pan European Telecom Services and Cable
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