Why Comcast (CMCSA) Shares Are Trading Higher Today

Comcast Corp (NASDAQ: CMCSA) reported a first-quarter FY23 revenue decline of 4.3% year-on-year to $29.69 billion, beating the consensus of $29.34 billion.

Segments: Revenue for Connectivity & Platforms declined by 1.8% Y/Y to $20.15 billion, driven by increases in broadband, wireless, business services, and advertising, partially offset by decreases in video and voice revenue. Broadband revenue grew 4.8% Y/Y to $6.3 billion.

Customer Relationships decreased by 82,000 to 52.5 million. Broadband customer net additions were 5,000, and total video customer net losses were 614,000.

The company's Connectivity & Platforms added 355,000 wireless lines.

Revenue from Media decreased by 20.7% Y/Y to $6.15 billion, reflecting the comparison to the Beijing Olympics and the NFL's Super Bowl in the prior year period, and Studios increased by 1.7% Y/Y to $2.96 billion, reflecting the successful performance of recent releases, including Puss in Boots: The Last Wish and M3GAN. 

Peacock's paid subscribers in the U.S. grew by over 60% to 22 million. Peacock's revenue grew by 45% to $685 million.

Theme Parks' revenue increased by 24.9% to $1.95 billion due to higher revenue at its international theme parks due to the pandemic recovery.

Adjusted EPS of $0.92 beat the consensus of $0.82. Adjusted EBITDA margin of Connectivity & Platforms grew by 200 bps to 40.2%.

Comcast generated $3.80 billion in free cash flow and held $5.54 billion in cash and equivalents.

Connectivity & Platforms' capital expenditures were $2.0 billion, up 29.7% Y/Y. Content & Experiences' capital expenditures increased by $343 million to $651 million, reflecting increased investment in constructing the Epic Universe theme park in Orlando.

Note: Beginning in Q1, Comcast presents Cable Communications results in the Residential Connectivity & Platforms and Business Services Connectivity segments and Sky's results across the Connectivity & Platforms and Content & Entertainment segments under Connectivity & Platforms and Content & Experiences.

Price Action: CMCSA shares traded higher by 6.20% at $38.79 on the last check Thursday.