Comcast (CMCSA) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 was $29.7 billion, down 2.7% year-over-year, with net income attributable to Comcast at $3.9 billion, down 7.5%; Adjusted EBITDA was $10.2 billion, nearly flat year-over-year, and Adjusted EPS grew 7% to $1.21.

• Free cash flow was $1.3 billion, impacted by a $2 billion increase in cash taxes related to the Hulu transaction and other tax matters.

• $3.4 billion was returned to shareholders in Q2 via $2.2 billion in share repurchases and $1.2 billion in dividends, with a 6% reduction in share count over the past year.

• Connectivity & Platforms Adjusted EBITDA margin reached a record 41.9%, with residential margin up 100 bps to 39.9%.

• Peacock paid subscribers grew 38% to 33 million, with revenue up 28% to $1.0 billion and EBITDA improving by $300 million.

Financial highlights

• Broadband ARPU grew 3.6% year-over-year, within the historical 3%-4% range, despite intense competition and the end of the ACP program.

• Wireless customer lines increased 20% year-over-year to 7.2 million, with 322,000 line additions in Q2, driven by new pricing plans and promotions.

• Connectivity & Platforms revenue was flat at $20.2 billion, with growth in broadband, wireless, and business services offset by declines in video and voice.

• Content & Experiences revenue fell 7.5% to $10.1 billion, and EBITDA declined 11% to $1.9 billion, mainly due to lower theme park and studio results.

• Business Services Connectivity revenue grew 5.7% year-over-year, with Adjusted EBITDA up 4.4% to $1.4 billion and margin at 57.0%.

Outlook and guidance

• Expect the bulk of ACP-related subscriber losses and non-pay churn to occur in Q3, with most of the impact contained within the quarter.

• Management highlighted growth opportunities ahead, including the Paris Summer Olympics and the debut of Epic Universe theme park in 2025.

• Media EBITDA expected to grow modestly in H2, with Q4 benefiting from Olympics, NFL, and new entertainment launches.

• Peacock losses expected to continue improving, with break-even not projected until after the NBA rights begin in fall 2025.

• Business Services Connectivity expected to grow by targeting medium-sized and enterprise customers.