Comcast, NBCUniversal Deliver Strong Q1 Results

NBCUniversal posted strong profits in the first quarter, with both cable and broadcast TV networks seeing solid gains.

Cable networks revenue at NBCU increased 7.6 percent to $2.6 billion in Q1 2017, with higher distribution and content licensing and other revenue, partially offset by lower advertising revenue. Distribution revenue was up 8.6 percent, thanks to contractual rate increases and contract renewals, partially offset by a decline in subscribers at the cable networks. Content licensing and other revenue increased 54 percent, reflecting a new licensing agreement, as well as the timing of content provided under current licensing agreements. Ad revenue dipped 2.9 percent, due to audience ratings declines, partially offset by higher rates. Adjusted EBITDA increased 16.8 percent to $1.1 billion for the period, with higher revenue being partially offset by a modest increase in programming and production costs.

NBCU’s broadcast television revenue was up by 5.9 percent to $2.2 billion, seeing higher distribution and other and content licensing revenue. Distribution and other revenue increased 33.4 percent, thanks in part to higher retransmission consent fees. Content licensing revenue increased 2.6 percent, reflecting the timing of content provided under licensing agreements. Ad revenue was up just slightly at 0.3 percent, reflecting higher rates, offset by audience ratings declines and lower volume. Adjusted EBITDA increased 13.4 percent to $322 million, as higher revenue was partially offset by an increase in programming and production costs.

Filmed entertainment saw a nice lift, as revenue increased 43.2 percent to $2 billion, primarily thanks to higher theatrical revenue, as well as increased other, content licensing and home entertainment revenue. Theatrical revenue increased by $415 million to $651 million, driven by the strong performances of Fifty Shades Darker, Get Out and Split, as well as the continued success of Sing. Adjusted EBITDA increased by $201 million to $368 million in Q1, reflecting higher revenue, partially offset by higher programming and production costs.

Theme parks revenue was up by 9 percent to $1.1 billion, and adjusted EBITDA increased 6.1 percent to $397 million.

Overall, Comcast’s consolidated revenue for the first quarter increased 8.9 percent to $20.5 billion. Consolidated net income attributable to Comcast increased 20.2 percent to $2.6 billion. Consolidated adjusted EBITDA increased 10.4 percent to $7 billion. Revenue for cable communications increased 5.8 percent to $12.9 billion, driven primarily by increases in high-speed internet, video and business services revenue.

Brian L. Roberts, the chairman and CEO of Comcast Corporation, said, “2017 is off to the fastest start in five years. We are reporting outstanding growth at cable and particularly NBCUniversal, which delivered 14.7 percent revenue growth and 24.4 percent adjusted EBITDA growth. These impressive results were fueled by exceptionally strong film performance, increased affiliate and retransmission revenues at our TV businesses, and continued growth in theme parks. Cable operations had a terrific quarter, driven by strength in high-speed internet and business services revenue growth, as well as positive video, all highlighted by overall customer relationship net additions of 297,000, a 10-percent increase compared to last year. These results were balanced with financial discipline, which contributed to solid revenue and adjusted EBITDA growth. The transition from Neil Smit to Dave Watson has gotten off to a very successful and seamless start, and with our teams executing well across all of Comcast NBCUniversal, I am excited about our momentum headed into the rest of 2017 and beyond.”