• Revenue: Record revenue of $124 billion for 2024.
• Adjusted EBITDA: Record adjusted EBITDA of $38 billion in 2024.
• Adjusted EPS: Increased by 9% for the year.
• Free Cash Flow: Generated $12.5 billion for the year.
• Broadband Revenue: Grew 3% for the year.
• Convergence Revenue: Grew nearly 5% for the year.
• Wireless Revenue: Grew at a mid-teens rate, with 1.2 million new lines added.
• Business Services Revenue: Grew at mid-single digit rates, approaching $10 billion in revenue.
• Peacock EBITDA Losses: Improved by $1 billion.
• Net Broadband Subscriber Additions: Negative 139,000 in the fourth quarter.
• Adjusted EPS (Q4): Increased 14% to $0.96.
• Free Cash Flow (Q4): $3.3 billion.
• Capital Returned to Shareholders: $13.5 billion for the full year.
• Net Leverage: Ended the year at 2.3x.

• Warning! GuruFocus has detected 3 Warning Sign with CMCSA.

Release Date: January 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Comcast Corp (NASDAQ:CMCSA) achieved record revenue of $124 billion and record adjusted EBITDA of $38 billion in 2024.
• The company reported a 9% growth in Adjusted EPS and generated substantial free cash flow of $12.5 billion.
• Wireless revenue grew at a mid-teens rate, adding 1.2 million lines, reaching 12% penetration of the broadband customer base.
• Peacock achieved a $1 billion improvement in EBITDA losses, with strong revenue growth of 46% for the full year.
• Comcast Business is nearly $10 billion in revenue, with plans to acquire Nitel to enhance capabilities in serving multisite enterprise and midmarket businesses.

Negative Points

• Net broadband subscriber additions were negative 139,000 in the fourth quarter, indicating intense competition.
• The company faces challenges from fixed wireless expansion and the end of the ACP program.
• Increased competition from fiber operators and fixed wireless is expected to continue, impacting broadband growth.
• The company anticipates significant costs leading up to the opening of Epic Universe, impacting short-term financials.
• Peacock's NBA content addition may initially increase costs, requiring strategic adjustments to absorb expenses.

Q & A Highlights

Q: Can you elaborate on your wireless strategy and the expected impact on net additions and investments? A: Mike Cavanagh, President, explained that Comcast is pushing harder into wireless, aiming to simplify bundles and attach mobile services to more broadband products. This strategy shift is expected to drive net additions and requires investment, as noted by Jason Armstrong, CFO. Brian L. Roberts, CEO, added that the industry dynamics, with fewer competitors, create a favorable environment for Comcast as a new entrant.

Q: What are the expectations for broadband ARPU growth, and how will it be affected by the new strategy? A: David Watson, CEO of Comcast Cable, stated that they expect continued healthy ARPU growth, focusing on broadband and convergence revenue. While the inclusion of mobile in packages might impact ARPU, the overall strategy aims to drive long-term revenue growth. Jason Armstrong added that broadband revenue grew by 3% and convergence revenue by 5% last year, and they aim to maintain this trajectory.

Q: Could you provide an update on the SpinCo strategy and its focus areas? A: Mike Cavanagh explained that SpinCo will focus on genre-based entertainment, sports, and news, with a strong leadership team. The strategy will be developed further, but the aim is to leverage the strong cash flow and market positions of these assets. Brian L. Roberts emphasized that SpinCo will have a strong balance sheet, allowing flexibility in strategic decisions.

Q: How is Comcast addressing competition in the broadband market, particularly with Project Genesis? A: David Watson noted that Project Genesis is on track, with 50% of the network upgraded. The focus is on introducing simplified packaging and faster speeds, which will be marketed aggressively starting in the second quarter. The competitive landscape remains intense, with fiber and fixed wireless as primary competitors.

Q: What is the outlook for free cash flow in 2025, considering various factors like cash taxes and Capex? A: Jason Armstrong highlighted that Comcast expects a tailwind from cash taxes in 2025, roughly a couple of billion dollars. Working capital headwinds are expected to be similar to previous years, driven by growth businesses. Capex intensity is expected to remain around 10%, with relief from Epic Universe construction costs over the course of the year.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.