filings.toolsItem 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion is provided as a supplement to, and should be read in conjunction with, the condensed consolidated financial statements and related notes (“Notes”) included in this Quarterly Report on Form 10-Q and our 2024 Annual Report on Form 10-K.
Overview
We are a global media and technology company with two primary businesses: Connectivity & Platforms and Content & Experiences. We present the operations of (1) our Connectivity & Platforms business in two segments: Residential Connectivity & Platforms and Business Services Connectivity; and (2) our Content & Experiences business in three segments: Media, Studios and Theme Parks.
A substantial portion of our revenue comes from customers whose spending patterns may be affected by prevailing economic conditions. Uncertain economic conditions, including as a result of geopolitical dynamics, changes in trade policies and foreign exchange rates could adversely affect demand for our products or services and have a negative impact on our results of operations. For a discussion of these factors and other risks, refer to Risk Factors in Item 1A of our 2024 Annual Report on Form 10-K.
Consolidated Operating Results
| Three Months Ended March 31, | Change | ||||||||||||||||||||||
| (in millions, except per share data) | 2025 | 2024 | % | ||||||||||||||||||||
| Revenue | $ | 29,887 | $ | 30,058 | (0.6) | % | |||||||||||||||||
| Costs and Expenses: | |||||||||||||||||||||||
| Programming and production | 8,415 | 8,823 | (4.6) | ||||||||||||||||||||
| Marketing and promotion | 2,071 | 2,018 | 2.7 | ||||||||||||||||||||
| Other operating and administrative | 9,893 | 9,857 | 0.4 | ||||||||||||||||||||
| Depreciation | 2,231 | 2,175 | 2.6 | ||||||||||||||||||||
| Amortization | 1,618 | 1,376 | 17.6 | ||||||||||||||||||||
| Total costs and expenses | 24,228 | 24,248 | (0.1) | ||||||||||||||||||||
| Operating income | 5,658 | 5,810 | (2.6) | ||||||||||||||||||||
| Interest expense | (1,050) | (1,002) | 4.8 | ||||||||||||||||||||
| Investment and other income (loss), net | (116) | 298 | NM | ||||||||||||||||||||
| Income before income taxes | 4,492 | 5,105 | (12.0) | ||||||||||||||||||||
| Income tax expense | (1,196) | (1,328) | (9.9) | ||||||||||||||||||||
| Net income | 3,296 | 3,777 | (12.7) | ||||||||||||||||||||
| Less: Net income (loss) attributable to noncontrolling interests | (79) | (79) | (0.9) | ||||||||||||||||||||
| Net income attributable to Comcast Corporation | $ | 3,375 | $ | 3,857 | (12.5) | % | |||||||||||||||||
| Basic earnings per common share attributable to Comcast Corporation shareholders | $ | 0.90 | $ | 0.97 | (8.0) | % | |||||||||||||||||
| Diluted earnings per common share attributable to Comcast Corporation shareholders | $ | 0.89 | $ | 0.97 | (7.7) | % | |||||||||||||||||
| Weighted-average number of common shares outstanding – basic | 3,768 | 3,959 | (4.8) | % | |||||||||||||||||||
| Weighted-average number of common shares outstanding – diluted | 3,784 | 3,992 | (5.2) | % | |||||||||||||||||||
| Adjusted EBITDA(a) | $ | 9,532 | $ | 9,355 | 1.9 | % |
Percentage changes that are considered not meaningful are denoted with NM.
(a)Adjusted EBITDA is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section on page 23 for additional information, including our definition and our use of Adjusted EBITDA, and for a reconciliation from net income attributable to Comcast Corporation to Adjusted EBITDA.
Consolidated revenue remained consistent for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to decreases in the Connectivity & Platforms business and Corporate and Other, offset by an increase in the Content & Experiences business. Revenue for our segments and other businesses is discussed separately below under the heading “Segment Operating Results.”
Consolidated costs and expenses, excluding depreciation and amortization expense, decreased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to decreases in the Connectivity & Platforms business and Corporate and Other, partially offset by an increase in the Content & Experiences business. Costs and expenses for our segments and our corporate operations and other businesses are discussed separately below under the heading “Segment Operating Results.”
Consolidated depreciation and amortization expense increased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to increased amortization of certain acquisition-related intangible assets related to the linear media business.
Amortization expense from acquisition-related intangible assets totaled $789 million and $569 million for the three months ended March 31, 2025 and 2024, respectively. Amounts primarily relate to customer relationship intangible assets recorded in connection with the Sky transaction in 2018 and the NBCUniversal transaction in 2011.
Consolidated interest expense increased for the three months ended March 31, 2025 primarily due to an increase in average debt outstanding and higher weighted-average interest rates in the current year period.
Consolidated investment and other income (loss), net decreased for the three months ended March 31, 2025 compared to the same period in 2024.
| Three Months Ended March 31, | |||||||||||||||||||||||
| (in millions) | 2025 | 2024 | |||||||||||||||||||||
| Equity in net income (losses) of investees, net | $ | (194) | $ | 158 | |||||||||||||||||||
| Realized and unrealized gains (losses) on equity securities, net | (24) | (51) | |||||||||||||||||||||
| Other income (loss), net | 102 | 191 | |||||||||||||||||||||
| Total investment and other income (loss), net | $ | (116) | $ | 298 |
The change in equity in net income (losses) of investees, net was primarily due to our investment in Atairos. The income (losses) at Atairos were driven by fair value adjustments on its underlying investments with income (loss) of $(169) million and $195 million for the three months ended March 31, 2025 and 2024, respectively.
The change in realized and unrealized gains (losses) on equity securities, net for the three months ended March 31, 2025 was primarily due to lower losses on nonmarketable securities in the current year period.
The change in other income (loss), net for the three months ended March 31, 2025 primarily resulted from a gain related to an equity method investment and from higher income from insurance contracts in the prior year period.
Consolidated income tax expense for the three months ended March 31, 2025 and 2024 reflects an effective income tax rate that differs from the federal statutory rate due to state and foreign income taxes and adjustments associated with uncertain tax positions. The decrease in income tax expense for the three months ended March 31, 2025 compared to the same period in 2024 was primarily driven by lower domestic income before income taxes.
Consolidated net income (loss) attributable to noncontrolling interests is consistent for the three months ended March 31, 2025 compared to the same period in 2024.
Segment Operating Results
Our segment operating results are presented based on how we assess operating performance and internally report financial information. See Note 2 for additional information on our segments.
Connectivity & Platforms Results of Operations
| Three Months Ended March 31, | Change | Constant Currency Change(b) | |||||||||||||||||||||||||||||||||
| (in millions) | 2025 | 2024 | % | % | |||||||||||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||||||||||||
| Residential Connectivity & Platforms | $ | 17,642 | $ | 17,868 | (1.3) | % | (1.0) | % | |||||||||||||||||||||||||||
| Business Services Connectivity | 2,496 | 2,407 | 3.7 | 3.7 | |||||||||||||||||||||||||||||||
| Total Connectivity & Platforms revenue | $ | 20,138 | $ | 20,275 | (0.7) | % | (0.5) | % | |||||||||||||||||||||||||||
| Adjusted EBITDA | |||||||||||||||||||||||||||||||||||
| Residential Connectivity & Platforms | $ | 6,918 | $ | 6,852 | 1.0 | % | 1.0 | % | |||||||||||||||||||||||||||
| Business Services Connectivity | 1,422 | 1,366 | 4.1 | 4.1 | |||||||||||||||||||||||||||||||
| Total Connectivity & Platforms Adjusted EBITDA | $ | 8,340 | $ | 8,218 | 1.5 | % | 1.5 | % | |||||||||||||||||||||||||||
| Adjusted EBITDA Margin**(a)** | |||||||||||||||||||||||||||||||||||
| Residential Connectivity & Platforms | 39.2 | % | 38.3 | % | 90 bps | 80 bps | |||||||||||||||||||||||||||||
| Business Services Connectivity | 57.0 | 56.7 | 30 bps | 30 bps | |||||||||||||||||||||||||||||||
| Total Connectivity & Platforms Adjusted EBITDA margin | 41.4 | % | 40.5 | % | 90 bps | 80 bps |
(a)Our Adjusted EBITDA margin is Adjusted EBITDA as a percentage of revenue. We believe this metric is useful particularly as we continue to focus on growing our higher-margin businesses and improving overall operating cost management. The changes reflect the year-over-year basis point changes in the rounded Adjusted EBITDA margins.
(b)Constant currency is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section on page 23 for additional information, including our definition and our use of constant currency, and for a reconciliation of constant currency amounts.
We continue to focus on growing our higher-margin connectivity businesses while managing overall operating costs. We also continue to invest in our network to support higher-speed broadband offerings and to expand the number of homes and businesses passed. Our customer relationship additions/(losses) continue to be negatively impacted by an increasingly competitive environment. We are focused on increasing our residential connectivity revenue through growth in average domestic broadband revenue per customer, as well as growth in domestic wireless and international connectivity revenue. At the same time, we expect continued declines in video revenue as a result of domestic customer net losses due to shifting video consumption patterns and the competitive environment, although customer net losses typically mitigate the impact of continued rate increases on programming expenses. We also expect continued declines in other revenue related to declines in wireline voice revenue. We are also focused on growing our Business Services Connectivity segment revenue by offering competitive services, including enterprise solutions.
Connectivity & Platforms Customer Metrics
| Net Additions / (Losses) | ||||||||||||||||||||
| March 31, | Three Months Ended March 31, | |||||||||||||||||||
| (in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||
| Customer Relationships | ||||||||||||||||||||
| Domestic Residential Connectivity & Platforms customer relationships(a) | 30,969 | 31,555 | (204) | (94) | ||||||||||||||||
| International Residential Connectivity & Platforms customer relationships(a) | 17,800 | 17,782 | (11) | (65) | ||||||||||||||||
| Business Services Connectivity customer relationships(b) | 2,613 | 2,634 | (13) | (7) | ||||||||||||||||
| Total Connectivity & Platforms customer relationships | 51,381 | 51,971 | (228) | (166) | ||||||||||||||||
| Domestic Broadband | ||||||||||||||||||||
| Residential customers | 29,190 | 29,693 | (183) | (55) | ||||||||||||||||
| Business customers | 2,453 | 2,495 | (17) | (10) | ||||||||||||||||
| Total domestic broadband customers | 31,643 | 32,188 | (199) | (65) | ||||||||||||||||
| Domestic Wireless | ||||||||||||||||||||
| Total domestic wireless lines(c) | 8,148 | 6,877 | 323 | 289 | ||||||||||||||||
| Domestic Video | ||||||||||||||||||||
| Total domestic video customers | 12,096 | 13,618 | (427) | (487) | ||||||||||||||||
| Domestic homes and businesses passed(d) | 63,967 | 62,729 | ||||||||||||||||||
| Domestic broadband penetration of homes and businesses passed(e) | 49.3 | % | 51.1 | % | ||||||||||||||||
(a)Residential Connectivity & Platforms customer relationships generally represent the number of residential customer locations that subscribe to at least one of our services. International Residential Connectivity & Platforms customer relationships represent customers receiving Sky services in the United Kingdom and Italy. Because each of our services includes a variety of product tiers, which may change from time to time, net additions or losses in any one period will reflect a mix of customers at various tiers.
(b)Business Services Connectivity customer metrics are generally counted based on the number of locations receiving services, including locations within our network in the United States, as well as locations outside of our network both in the United States and internationally. Certain arrangements whereby third parties provide connectivity services leveraging our network are also generally counted based on the number of locations served.
(c)Domestic wireless lines represent the number of residential and business customers’ wireless devices. An individual customer relationship may have multiple wireless lines.
(d)Connectivity & Platforms domestic homes and businesses are considered passed if we can connect them to our network in the United States without further extending the transmission lines. Homes and businesses passed is an estimate based on the best available information.
(e)Penetration is calculated by dividing the number of domestic customers located within our network by the number of domestic homes and businesses passed.
| Three Months Ended March 31, | Change | Constant Currency Change(a) | |||||||||||||||||||||||||||
| 2025 | 2024 | % | % | ||||||||||||||||||||||||||
| Average monthly total Connectivity & Platforms revenue per customer relationship | $ | 130.36 | $ | 129.84 | 0.4 | % | 0.6 | % | |||||||||||||||||||||
| Average monthly total Connectivity & Platforms Adjusted EBITDA per customer relationship | $ | 53.99 | $ | 52.62 | 2.6 | % | 2.6 | % |
(a)Constant currency is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section on page 23 for additional information, including our definition and our use of constant currency, and for a reconciliation of constant currency amounts.
Average monthly total revenue per customer relationship is impacted by rate adjustments and changes in the types and levels of services received by our residential and business customers, as well as changes in advertising and other revenue and in foreign currency exchange rates. While revenue from our individual service offerings is also impacted by changes in the allocation of revenue among services sold in a bundle, the allocation does not impact average monthly total revenue per customer relationship. Each of our services has a different contribution to Adjusted EBITDA margin. We use average monthly Adjusted EBITDA per customer relationship to evaluate the profitability of our customer base across our service offerings. We believe both metrics are useful to understand the trends in our business, and average monthly Adjusted EBITDA per customer relationship is useful particularly as we continue to focus on growing our higher-margin businesses.
Connectivity & Platforms — Supplemental Costs and Expenses Information
Connectivity & Platforms supplemental costs and expenses information in the table below is presented on an aggregate basis across the Connectivity & Platforms segments as the segments use certain shared infrastructure, including our network in the United States. Costs and expenses information reported separately for the Residential Connectivity & Platforms and Business Services Connectivity segments includes each segment’s direct costs and an allocation of shared costs.
| Three Months Ended March 31, | Change | Constant Currency Change(g) | |||||||||||||||||||||||||||||||||
| (in millions) | 2025 | 2024 | % | % | |||||||||||||||||||||||||||||||
| Costs and Expenses | |||||||||||||||||||||||||||||||||||
| Programming(a) | $ | 4,107 | $ | 4,405 | (6.8) | % | (6.4) | % | |||||||||||||||||||||||||||
| Technical and support(b) | 1,874 | 1,959 | (4.3) | (4.1) | |||||||||||||||||||||||||||||||
| Direct product costs(c) | 1,625 | 1,514 | 7.3 | 7.9 | |||||||||||||||||||||||||||||||
| Marketing and promotion(d) | 1,227 | 1,173 | 4.6 | 4.9 | |||||||||||||||||||||||||||||||
| Customer service(e) | 680 | 709 | (4.2) | (3.9) | |||||||||||||||||||||||||||||||
| Other(f) | 2,285 | 2,297 | (0.5) | (0.3) | |||||||||||||||||||||||||||||||
| Total Connectivity & Platforms costs and expenses | $ | 11,798 | $ | 12,058 | (2.2) | % | (1.8) | % |
(a)Programming expenses, which represent our most significant operating expense, are the fees we incur to provide video services to our customers, and primarily include fees related to the distribution of television network programming and fees charged for retransmission of the signals from local broadcast television stations. These expenses also include the costs of content on the Sky-branded entertainment television networks, including amortization of licensed content.
(b)Technical and support expenses primarily consists of costs for labor to complete service call and installation activities; and costs for network operations and satellite transmission, product development, fulfillment and provisioning.
(c)Direct product costs primarily consists of access fees related to using wireless and broadband networks owned by third parties to deliver our services and costs of products sold, including wireless devices and Sky Glass smart televisions.
(d)Marketing and promotion expenses primarily consists of the costs associated with attracting new customers and promoting our service offerings.
(e)Customer service expenses primarily consists of the personnel and other costs associated with customer service and certain selling activities.
(f)Other expenses primarily consists of administrative personnel costs; franchise and other regulatory fees; fees paid to third parties where we sell advertising on their behalf; bad debt; building and office expenses, taxes and billing costs; and other business, headquarters and support costs necessary to operate the Connectivity & Platforms business.
(g)Constant currency is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section on page 23 for additional information, including our definition and our use of constant currency, and for a reconciliation of constant currency amounts.
Residential Connectivity & Platforms Segment Results of Operations
| Three Months Ended March 31, | Change | Constant Currency Change(a) | |||||||||||||||||||||||||||||||||
| (in millions) | 2025 | 2024(b) | % | % | |||||||||||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||||||||||||
| Domestic broadband | $ | 6,558 | $ | 6,446 | 1.7 | % | 1.7 | % | |||||||||||||||||||||||||||
| Domestic wireless | 1,123 | 972 | 15.6 | 15.6 | |||||||||||||||||||||||||||||||
| International connectivity | 1,132 | 1,033 | 9.5 | 10.5 | |||||||||||||||||||||||||||||||
| Total residential connectivity | 8,813 | 8,451 | 4.3 | 4.4 | |||||||||||||||||||||||||||||||
| Video | 6,718 | 7,104 | (5.4) | (5.1) | |||||||||||||||||||||||||||||||
| Advertising | 881 | 951 | (7.4) | (7.0) | |||||||||||||||||||||||||||||||
| Other | 1,230 | 1,362 | (9.7) | (9.5) | |||||||||||||||||||||||||||||||
| Total revenue | 17,642 | 17,868 | (1.3) | (1.0) | |||||||||||||||||||||||||||||||
| Costs and Expenses | |||||||||||||||||||||||||||||||||||
| Programming | 4,107 | 4,405 | (6.8) | (6.4) | |||||||||||||||||||||||||||||||
| Other | 6,617 | 6,611 | 0.1 | 0.5 | |||||||||||||||||||||||||||||||
| Total costs and expenses | 10,724 | 11,016 | (2.7) | (2.3) | |||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 6,918 | $ | 6,852 | 1.0 | % | 1.0 | % |
(a)Constant currency is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section on page 23 for additional information, including our definition and our use of constant currency, and for a reconciliation of constant currency amounts.
(b)Beginning in the first quarter of 2025, commission revenue from the sale of certain direct to consumer (“DTC”) streaming services and revenue related to certain equipment are presented in video revenue. Previously, these amounts were presented in domestic broadband and international connectivity. Prior periods have been reclassified to reflect the current year presentation.
Residential Connectivity & Platforms Segment – Revenue
Domestic broadband revenue increased for the three months ended March 31, 2025 compared to the same period in 2024 due to an increase in average rates, which offset a decline in the number of domestic broadband customers.
Domestic wireless revenue increased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to an increase in the number of customer lines and device sales.
International connectivity revenue increased for the three months ended March 31, 2025 compared to the same period in 2024 due to an increase in broadband revenue resulting from an increase in average rates and an increase in wireless revenue resulting from an increase in the sale of wireless services.
Video revenue decreased for the three months ended March 31, 2025 compared to the same period in 2024 due to a decline in the overall number of video customers, partially offset by an overall increase in average rates.
Advertising revenue decreased for the three months ended March 31, 2025 compared to the same period in 2024 due to lower international advertising and lower domestic political and nonpolitical advertising.
Other revenue decreased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to a decrease in residential wireline voice revenue driven by a decline in the number of customers.
Residential Connectivity & Platforms Segment – Costs and Expenses
Programming expenses decreased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to a decline in the number of domestic video subscribers, partially offset by rate increases under our domestic programming contracts and an increase in programming expenses for our international sports networks.
Other expenses remained consistent for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to increased direct product costs and increased spending on marketing and promotion, offset by lower technical and support and customer service expenses.
Business Services Connectivity Segment Results of Operations
| Three Months Ended March 31, | Change | ||||||||||||||||||||||||||||||||||
| (in millions) | 2025 | 2024 | % | ||||||||||||||||||||||||||||||||
| Revenue | $ | 2,496 | $ | 2,407 | 3.7 | % | |||||||||||||||||||||||||||||
| Costs and expenses | 1,074 | 1,041 | 3.1 | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 1,422 | $ | 1,366 | 4.1 | % |
Business services connectivity revenue increased for the three months ended March 31, 2025 compared to the same period in 2024 due to an increase in revenue from enterprise solutions offerings and from higher average rates from small business customers.
Business services connectivity costs and expenses increased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to an increase in direct product costs.
Content & Experiences Results of Operations
| Three Months Ended March 31, | Change | |||||||||||||||||||||||||
| (in millions) | 2025 | 2024 | % | |||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||
| Media | $ | 6,440 | $ | 6,371 | 1.1 | % | ||||||||||||||||||||
| Studios | 2,826 | 2,743 | 3.0 | |||||||||||||||||||||||
| Theme Parks | 1,876 | 1,979 | (5.2) | |||||||||||||||||||||||
| Headquarters and Other | 11 | 12 | (9.1) | |||||||||||||||||||||||
| Eliminations | (697) | (731) | 4.7 | |||||||||||||||||||||||
| Total Content & Experiences revenue | $ | 10,457 | $ | 10,374 | 0.8 | % | ||||||||||||||||||||
| Adjusted EBITDA | ||||||||||||||||||||||||||
| Media | $ | 1,004 | $ | 827 | 21.5 | % | ||||||||||||||||||||
| Studios | 298 | 244 | 22.3 | |||||||||||||||||||||||
| Theme Parks | 429 | 632 | (32.1) | |||||||||||||||||||||||
| Headquarters and Other | (255) | (243) | (4.7) | |||||||||||||||||||||||
| Eliminations | 14 | 33 | (57.8) | |||||||||||||||||||||||
| Total Content & Experiences Adjusted EBITDA | $ | 1,490 | $ | 1,493 | (0.1) | % |
We operate our Media segment as a combined television and streaming business. We expect that the number of subscribers and audience ratings at our linear television networks will continue to decline as a result of the competitive environment and shifting video consumption patterns, which we aim to mitigate over time by growth in paid subscribers and advertising revenue at Peacock. We expect to continue to incur significant costs related to content and marketing at Peacock. Revenue and programming expenses are also impacted by the timing of certain sporting events, including our acquisition of NBA rights, which begin in the fourth quarter of 2025.
Our Studios segment generates revenue primarily from third parties and from licensing content to our Media segment. While results of operations for our Studios segment are not impacted, results for our total Content & Experiences business may be impacted as the Studios segment licenses content to the Media segment, including for Peacock, rather than licensing the content to third parties.
We continue to invest significantly in existing and new theme park attractions, hotels and infrastructure, including Epic Universe in Orlando, which is scheduled to open in May 2025, as well as in new destinations and experiences, which we believe will have a positive impact on attendance and guest spending at our theme parks.
Media Segment Results of Operations
| Three Months Ended March 31, | Change | ||||||||||||||||||||||
| (in millions) | 2025 | 2024 | % | ||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Domestic advertising | $ | 1,886 | $ | 2,025 | (6.8) | % | |||||||||||||||||
| Domestic distribution | 2,922 | 2,906 | 0.6 | ||||||||||||||||||||
| International networks | 1,162 | 1,021 | 13.9 | ||||||||||||||||||||
| Other | 470 | 420 | 11.8 | ||||||||||||||||||||
| Total revenue | 6,440 | 6,371 | 1.1 | ||||||||||||||||||||
| Costs and Expenses | |||||||||||||||||||||||
| Programming and production | 4,011 | 4,140 | (3.1) | ||||||||||||||||||||
| Marketing and promotion | 323 | 314 | 2.7 | ||||||||||||||||||||
| Other | 1,102 | 1,090 | 1.1 | ||||||||||||||||||||
| Total costs and expenses | 5,436 | 5,545 | (2.0) | ||||||||||||||||||||
| Adjusted EBITDA | $ | 1,004 | $ | 827 | 21.5 | % |
Media Segment – Revenue
Domestic advertising revenue decreased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to a decrease in revenue at our linear television networks, partially offset by an increase in revenue at Peacock.
Domestic distribution revenue remained consistent for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to an increase in revenue at Peacock, offset by a decrease in revenue at our linear television networks.
International networks revenue increased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to an increase in revenue associated with the distribution of sports networks.
Media segment total revenue included $1.2 billion and $1.1 billion related to Peacock for the three months ended March 31, 2025 and 2024, respectively. We had 41 million and 34 million paid subscribers of Peacock as of March 31, 2025 and 2024, respectively. Peacock paid subscribers represent customers from which we recognize distribution revenue, including both customers that pay us directly and customers receiving the service through arrangements with companies who sell Peacock on our behalf. In these arrangements, paid subscribers are counted based on the terms of the arrangement when the related revenue is recognized. As a result, certain customers are counted when they activate their account, while other customers are counted when the Peacock service is made available to them as part of their bundled service offering regardless of whether it is activated. The increase in paid subscribers in 2025 is mainly due to availability of Peacock through a third-party’s bundled service offering.
Media Segment – Costs and Expenses
Programming and production costs decreased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to lower sports programming costs at Peacock and our domestic television networks, mainly reflecting lower sports volumes compared to the prior year period. This decrease was partially offset by an increase in entertainment content costs for our domestic television networks and an increase in sports programming costs for our international television networks.
Marketing and promotion expenses increased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to higher costs related to marketing for entertainment programming, partially offset by decreased spending on marketing at Peacock.
Media segment total costs and expenses included $1.4 billion and $1.7 billion related to Peacock for the three months ended March 31, 2025 and 2024, respectively.
Studios Segment Results of Operations
| Three Months Ended March 31, | Change | ||||||||||||||||||||||
| (in millions) | 2025 | 2024 | % | ||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Content licensing | $ | 2,174 | $ | 2,101 | 3.5 | % | |||||||||||||||||
| Theatrical | 286 | 330 | (13.3) | ||||||||||||||||||||
| Other | 366 | 312 | 17.5 | ||||||||||||||||||||
| Total revenue | 2,826 | 2,743 | 3.0 | ||||||||||||||||||||
| Costs and Expenses | |||||||||||||||||||||||
| Programming and production | 1,898 | 1,859 | 2.1 | ||||||||||||||||||||
| Marketing and promotion | 392 | 431 | (9.0) | ||||||||||||||||||||
| Other | 237 | 209 | 13.7 | ||||||||||||||||||||
| Total costs and expenses | 2,528 | 2,499 | 1.2 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 298 | $ | 244 | 22.3 | % |
Studios Seg****ment – Revenue
Content licensing revenue increased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to the timing of when content was made available by our film and television studios.
Theatrical revenue decreased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to higher revenue from releases in the prior year period, including Kung Fu Panda 4 and Migration, compared to revenue from recent releases impacting the current year period, including Dog Man and Nosferatu.
Studios Segment – Costs and Expenses
Programming and production costs increased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to higher costs associated with content licensing sales.
Marketing and promotion expenses decreased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to decreased spending on recent and upcoming theatrical film releases in the current year period.
Theme Parks Segment Results of Operations
| Three Months Ended March 31, | Change | ||||||||||||||||||||||
| (in millions) | 2025 | 2024 | % | ||||||||||||||||||||
| Revenue | $ | 1,876 | $ | 1,979 | (5.2) | % | |||||||||||||||||
| Costs and expenses | 1,447 | 1,347 | 7.5 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 429 | $ | 632 | (32.1) | % |
Them****e parks segment revenue decreased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to decreased attendance at our domestic theme parks.
Theme parks segment costs and expenses increased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to preopening costs for Epic Universe ahead of the scheduled opening in May 2025.
Content & Experiences Headquarters, Other and Eliminations
Headquarters and Other Results of Operations
| Three Months Ended March 31, | Change | ||||||||||||||||||||||
| (in millions) | 2025 | 2024 | % | ||||||||||||||||||||
| Revenue | $ | 11 | $ | 12 | (9.1) | % | |||||||||||||||||
| Costs and expenses | 266 | 255 | 4.0 | ||||||||||||||||||||
| Adjusted EBITDA | $ | (255) | $ | (243) | (4.7) | % |
Headquarters and Other expenses primarily consists of overhead, personnel and other costs necessary to operate the Content & Experiences business.
Eliminations
| Three Months Ended March 31, | Change | ||||||||||||||||||||||
| (in millions) | 2025 | 2024 | % | ||||||||||||||||||||
| Revenue | $ | (697) | $ | (731) | (4.7) | % | |||||||||||||||||
| Costs and expenses | (711) | (765) | (7.0) | ||||||||||||||||||||
| Adjusted EBITDA | $ | 14 | $ | 33 | 57.8 | % |
Amounts represent eliminations of transactions between segments in our Content & Experiences business, the most significant being content licensing between the Studios and Media segments, which are affected by the timing of recognition of content licenses.
Eliminations increase or decrease to the extent that additional content is made available to our other segments within the Content & Experiences business. Refer to Note 2 for additional information on transactions between our segments.
Corporate, Other and Eliminations
Corporate and Other Results of Operations
| Three Months Ended March 31, | Change | ||||||||||||||||||||||
| (in millions) | 2025 | 2024 | % | ||||||||||||||||||||
| Revenue | $ | 741 | $ | 767 | (3.4) | % | |||||||||||||||||
| Costs and expenses | 1,052 | 1,096 | (4.0) | ||||||||||||||||||||
| Adjusted EBITDA | $ | (311) | $ | (329) | 5.6 | % |
Corporate and Other primarily consists of overhead and personnel costs; Sky-branded video services and television networks in Germany; Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania; and Xumo, our consolidated streaming platform joint venture.
Corporate and Other revenue decreased for the three months ended March 31, 2025 compared to the same period in 2024 primarily driven by a decrease in revenue from Comcast Spectacor.
Corporate and Other costs and expenses decreased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to lower costs related to Sky operations in Germany, partially offset by an increase at Xumo.
Eliminations
| Three Months Ended March 31, | Change | ||||||||||||||||||||||
| (in millions) | 2025 | 2024 | % | ||||||||||||||||||||
| Revenue | $ | (1,449) | $ | (1,358) | 6.7 | % | |||||||||||||||||
| Costs and expenses | (1,461) | (1,332) | 9.7 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 12 | $ | (26) | NM |
Percentage changes that are considered not meaningful are denoted with NM.
Amounts represent eliminations of transactions between our Connectivity & Platforms, Content & Experiences and other businesses, the most significant being distribution of television network programming between the Media and Residential Connectivity & Platforms segments. Eliminations of transactions between segments within Content & Experiences are presented separately. Refer to Note 2 for additional information on transactions between our segments.
Non-GAAP Financial Measures
Consolidated Adjusted EBITDA
Adjusted EBITDA is a non-GAAP financial measure and is the primary basis used to measure the operational strength and performance of our businesses as well as to assist in the evaluation of underlying trends in our businesses. This measure eliminates the significant level of noncash depreciation and amortization expense that results from the capital-intensive nature of certain of our businesses and from intangible assets recognized in business combinations. It is also unaffected by our capital and tax structures, and by our investment activities, including the results of entities that we do not consolidate, as our management excludes these results when evaluating our operating performance. Our management and Board of Directors use this financial measure to evaluate our consolidated operating performance and the operating performance of our operating segments and to allocate resources and capital to our operating segments. It is also a significant performance measure in our annual incentive compensation programs. Additionally, we believe that Adjusted EBITDA is useful to investors because it is one of the bases for comparing our operating performance with that of other companies in our industries, although our measure of Adjusted EBITDA may not be directly comparable to similar measures used by other companies.
We define Adjusted EBITDA as net income attributable to Comcast Corporation before net income (loss) attributable to noncontrolling interests, income tax expense, investment and other income (loss), net, interest expense, depreciation and amortization expense, and other operating gains and losses (such as impairment charges related to fixed and intangible assets and gains or losses on the sale of long-lived assets), if any. From time to time, we may exclude from Adjusted EBITDA the impact of certain events, gains, losses or other charges (such as significant legal settlements) that affect the period-to-period comparability of our operating performance.
We reconcile consolidated Adjusted EBITDA to net income attributable to Comcast Corporation. This measure should not be considered a substitute for operating income (loss), net income (loss), net income (loss) attributable to Comcast Corporation, or net cash provided by operating activities that we have reported in accordance with GAAP.
Reconciliation from Net Income Attributable to Comcast Corporation to Adjusted EBITDA
| Three Months Ended March 31, | |||||||||||||||||||||||
| (in millions) | 2025 | 2024 | |||||||||||||||||||||
| Net income attributable to Comcast Corporation | $ | 3,375 | $ | 3,857 | |||||||||||||||||||
| Net income (loss) attributable to noncontrolling interests | (79) | (79) | |||||||||||||||||||||
| Income tax expense | 1,196 | 1,328 | |||||||||||||||||||||
| Interest expense | 1,050 | 1,002 | |||||||||||||||||||||
| Investment and other (income) loss, net | 116 | (298) | |||||||||||||||||||||
| Depreciation | 2,231 | 2,175 | |||||||||||||||||||||
| Amortization | 1,618 | 1,376 | |||||||||||||||||||||
| Adjustments(a) | 24 | (6) | |||||||||||||||||||||
| Adjusted EBITDA | $ | 9,532 | $ | 9,355 |
(a)Amounts represent the impact of certain events, gains, losses or other charges that are excluded from Adjusted EBITDA, including costs related to our investment portfolio. For the three months ended March 31, 2025, amount also includes $22 million of other operating and administrative costs associated with the proposed spin-off of businesses within our Media segment.
Constant Currency
Constant currency and constant currency growth rates are non-GAAP financial measures that present our results of operations excluding the estimated effects of foreign currency exchange rate fluctuations. Certain of our businesses, including Connectivity & Platforms, have operations outside the United States that are conducted in local currencies. As a result, the comparability of the financial results reported in U.S. dollars is affected by changes in foreign currency exchange rates. In our Connectivity & Platforms business, we use constant currency and constant currency growth rates to evaluate the underlying performance of the businesses, and we believe they are helpful for investors because such measures present operating results on a comparable basis year over year to allow the evaluation of their underlying performance.
Constant currency and constant currency growth rates are calculated by comparing the results for each comparable prior year period adjusted to reflect the average exchange rates from each current year period presented rather than the actual exchange rates that were in effect during the respective periods.
Reconciliation of Connectivity & Platforms Constant Currency
| Three months ended March 31, 2024 | |||||||||||||||||||||||
| (in millions) | As Reported | Effects of Foreign Currency | Constant Currency Amounts | ||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Residential Connectivity & Platforms | $ | 17,868 | $ | (42) | $ | 17,826 | |||||||||||||||||
| Business Services Connectivity | 2,407 | — | 2,407 | ||||||||||||||||||||
| Total Connectivity & Platforms revenue | $ | 20,275 | $ | (43) | $ | 20,233 | |||||||||||||||||
| Adjusted EBITDA | |||||||||||||||||||||||
| Residential Connectivity & Platforms | $ | 6,852 | $ | (1) | $ | 6,850 | |||||||||||||||||
| Business Services Connectivity | 1,366 | — | 1,366 | ||||||||||||||||||||
| Total Connectivity & Platforms Adjusted EBITDA | $ | 8,218 | $ | (1) | $ | 8,216 | |||||||||||||||||
| Adjusted EBITDA Margin | |||||||||||||||||||||||
| Residential Connectivity & Platforms | 38.3 | % | 10 bps | 38.4 | % | ||||||||||||||||||
| Business Services Connectivity | 56.7 | - bps | 56.7 | ||||||||||||||||||||
| Total Connectivity & Platforms Adjusted EBITDA margin | 40.5 | % | 10 bps | 40.6 | % |
| Three months ended March 31, 2024 | |||||||||||||||||||||||
| As Reported | Effects of Foreign Currency | Constant Currency Amounts | |||||||||||||||||||||
| Average monthly total Connectivity & Platforms revenue per customer relationship | $ | 129.84 | $ | (0.27) | $ | 129.56 | |||||||||||||||||
| Average monthly total Connectivity & Platforms Adjusted EBITDA per customer relationship | $ | 52.62 | $ | (0.01) | $ | 52.61 |
| Three months ended March 31, 2024 | |||||||||||||||||||||||
| (in millions) | As Reported | Effects of Foreign Currency | Constant Currency Amounts | ||||||||||||||||||||
| Costs and Expenses | |||||||||||||||||||||||
| Programming | $ | 4,405 | $ | (17) | $ | 4,389 | |||||||||||||||||
| Technical and support | 1,959 | (5) | 1,954 | ||||||||||||||||||||
| Direct product costs | 1,514 | (8) | 1,507 | ||||||||||||||||||||
| Marketing and promotion | 1,173 | (4) | 1,169 | ||||||||||||||||||||
| Customer service | 709 | (2) | 708 | ||||||||||||||||||||
| Other | 2,297 | (7) | 2,291 | ||||||||||||||||||||
| Total Connectivity & Platforms costs and expenses | $ | 12,058 | $ | (41) | $ | 12,017 |
Reconciliation of Residential Connectivity & Platforms Constant Currency
| Three months ended March 31, 2024 | |||||||||||||||||||||||
| (in millions) | As Reported | Effects of Foreign Currency | Constant Currency Amounts | ||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Domestic broadband | $ | 6,446 | $ | — | $ | 6,446 | |||||||||||||||||
| Domestic wireless | 972 | — | 972 | ||||||||||||||||||||
| International connectivity | 1,033 | (9) | 1,024 | ||||||||||||||||||||
| Total residential connectivity | 8,451 | (9) | 8,442 | ||||||||||||||||||||
| Video | 7,104 | (27) | 7,078 | ||||||||||||||||||||
| Advertising | 951 | (4) | 947 | ||||||||||||||||||||
| Other | 1,362 | (3) | 1,359 | ||||||||||||||||||||
| Total revenue | 17,868 | (42) | 17,826 | ||||||||||||||||||||
| Costs and Expenses | |||||||||||||||||||||||
| Programming | 4,405 | (17) | 4,389 | ||||||||||||||||||||
| Other | 6,611 | (24) | 6,587 | ||||||||||||||||||||
| Total costs and expenses | 11,016 | (41) | 10,975 | ||||||||||||||||||||
| Adjusted EBITDA | $ | 6,852 | $ | (1) | $ | 6,850 | |||||||||||||||||
Other Adjustments
From time to time, we present adjusted information, such as revenue, to exclude the impact of certain events, gains, losses or other charges. This adjusted information is a non-GAAP financial measure. We believe, among other things, that the adjusted information may help investors evaluate our ongoing operations and can assist in making meaningful period-over-period comparisons.
Liquidity and Capital Resources
| Three Months Ended March 31, | |||||||||||
| (in billions) | 2025 | 2024 | |||||||||
| Cash provided by operating activities | $ | 8.3 | $ | 7.8 | |||||||
| Cash used in investing activities | $ | (3.0) | $ | (3.5) | |||||||
| Cash used in financing activities | $ | (4.1) | $ | (4.0) |
| (in billions) | March 31, 2025 | December 31, 2024 | |||||||||
| Cash and cash equivalents | $ | 8.6 | $ | 7.3 | |||||||
| Debt | $ | 99.1 | $ | 99.1 |
Our businesses generate significant cash flows from operating activities. We believe that we will be able to continue to meet our current and long-term liquidity and capital requirements, including fixed charges, through our cash flows from operating activities; existing cash, cash equivalents and investments; available borrowings under our existing credit facility; and our ability to obtain future external financing. We anticipate that we will continue to use a substantial portion of our cash flows from operating activities in repaying our debt obligations, funding our capital expenditures and cash paid for intangible assets, investing in business opportunities, and returning capital to shareholders.
We maintain significant availability under our revolving credit facility and our commercial paper program to meet our short-term liquidity requirements. Our commercial paper program generally provides a lower-cost source of borrowing to fund our short-term working capital requirements. As of March 31, 2025, amounts available under our revolving credit facility, net of amounts outstanding under our commercial paper program and outstanding letters of credit and bank guarantees, totaled $11.8 billion.
Our revolving credit facility contains a financial covenant pertaining to leverage, which is the ratio of debt to EBITDA, as defined in the agreement. Compliance with this financial covenant is tested on a quarterly basis. As of March 31, 2025, we met this financial covenant, and we expect to remain in compliance with this financial covenant.
Operating Activit****ies
Components of Net Cash Provided by Operating Activities
| Three Months Ended March 31, | |||||||||||
| (in millions) | 2025 | 2024 | |||||||||
| Operating income | $ | 5,658 | $ | 5,810 | |||||||
| Depreciation and amortization | 3,849 | 3,551 | |||||||||
| Noncash share-based compensation | 382 | 373 | |||||||||
| Changes in operating assets and liabilities | (636) | (940) | |||||||||
| Payments of interest | (674) | (731) | |||||||||
| Payments of income taxes | (400) | (349) | |||||||||
| Proceeds from investments and other | 115 | 134 | |||||||||
| Net cash provided by operating activities | $ | 8,294 | $ | 7,848 |
The variance in changes in operating assets and liabilities for the three months ended March 31, 2025 compared to the same period in 2024 was primarily related to decreases in receivables, increases in inventory, and the timing of amortization and related payments for our film and television costs.
The decrease in payments of interest for the three months ended March 31, 2025 compared to the same period in 2024 was primarily due to the timing of interest payments on outstanding debt in the prior year period.
Payments of income taxes increased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to higher payments for federal and foreign income taxes, offset by lower state income taxes in the current year period. Payments were also impacted by the timing of transferable tax credit purchases, as payments for certain tax credits used in the second half of 2024 were made in the current year period.
Additionally, we expect to receive a federal income tax refund in the current year as a result of carrying back a capital loss created primarily as part of a 2024 internal corporate reorganization to offset capital gains recognized in our federal income tax returns for 2021 through 2023.
Investing Activities
Net cash used in investing activities decreased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to decreased capital expenditures, decreased purchases of short-term investments, decreased cash paid related to the construction of Universal Beijing Resort, and decreased cash paid for intangible assets related to software development in the current year period. This decrease was partially offset by decreased proceeds from the maturity of short-term investments in the current year period. Capital expenditures decreased for the three months ended March 31, 2025 compared to the same period in 2024 primarily reflecting decreased spending by the Connectivity & Platforms businesses on customer premise equipment and scalable infrastructure, as well as decreased spending on theme park attractions.
In the fourth quarter of 2023, we exercised our put right requiring Disney to purchase our interest in Hulu and received $8.6 billion, representing $9.2 billion for our share of Hulu’s minimum equity value presented as an advance on the sale of our investment in our condensed consolidated balance sheet, less $557 million for our share of prior capital calls. We expect to receive additional proceeds for the sale of our interest in Hulu following the final determination of Hulu’s fair value pursuant to a third-party appraisal process, at which time we will recognize the sale of our interest.
Financing Activities
Net cash used in financing activities increased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to higher repurchases and repayments of debt and higher dividends paid in the current year period. This increase was partially offset by a decrease in repurchases of common stock in the current year period.
For the three months ended March 31, 2025, we made debt repayments of $604 million, including $419 million principal amount of notes due at maturity, $129 million of 3.950% Notes due 2025 and $56 million of 3.375% Notes due 2025.
We have made, and may from time to time in the future make, optional repayments on our debt obligations, which may include repurchases or exchanges of our outstanding public notes and debentures, depending on various factors, such as market conditions. Any such repurchases may be effected through privately negotiated transactions, market transactions, tender offers, redemptions or otherwise. In particular, we may repurchase varying amounts of our outstanding public notes and debentures with short to medium term maturities through privately negotiated or market transactions. See Notes 5 and 7 for additional information on our financing activities.
Share Repurchases and Dividends
During the three months ended March 31, 2025, we repurchased a total of 56 million shares of our Class A common stock for $2.0 billion. In January 2025, our Board of Directors terminated the existing share repurchase program authorization and approved a new share repurchase program authorization of $15.0 billion, which has no expiration date. As of March 31, 2025, we had $13.7 billion remaining under the authorization. We did not purchase any shares outside of this program. We expect to repurchase additional shares of our Class A common stock under this new authorization in the open market or in private transactions, subject to market and other conditions.
In addition, we paid $219 million and $256 million for the three months ended March 31, 2025 and 2024, respectively, related to employee taxes associated with the administration of our share-based compensation plans.
In January 2025, our Board of Directors approved a 6.5% increase in our dividend to $1.32 per share on an annualized basis and approved our first quarter dividend of $0.33 per share, which was paid in April 2025. During the three months ended March 31, 2025, we paid dividends of $1.2 billion. We expect to continue to pay quarterly dividends, although each dividend is subject to approval by our Board of Directors.
Guarantee Structure
Our debt is primarily issued at Comcast, although we also have debt at certain of our subsidiaries as a result of acquisitions and other issuances. A substantial amount of this debt is subject to guarantees by Comcast and by certain subsidiaries that we have put in place to simplify our capital structure. We believe this guarantee structure provides liquidity benefits to debt investors and helps to simplify credit analysis with respect to relative value considerations of guaranteed subsidiary debt.
Debt and Guarantee Structure
| (in billions) | March 31, 2025 | December 31, 2024 | ||||||
| Debt Subject to Cross-Guarantees | ||||||||
| Comcast | $ | 94.4 | $ | 94.6 | ||||
| NBCUniversal(a) | 1.6 | 1.6 | ||||||
| Comcast Cable(a) | 0.9 | 0.9 | ||||||
| 96.9 | 97.1 | |||||||
| Debt Subject to One-Way Guarantees | ||||||||
| Sky | 3.1 | 3.0 | ||||||
| Other(a) | 0.1 | 0.1 | ||||||
| 3.2 | 3.1 | |||||||
| Debt Not Guaranteed | ||||||||
| Universal Beijing Resort(b) | 3.5 | 3.4 | ||||||
| Other | 1.5 | 1.4 | ||||||
| 5.0 | 4.8 | |||||||
| Debt issuance costs, premiums, discounts, fair value adjustments for acquisition accounting and hedged positions, net | (5.9) | (6.0) | ||||||
| Total debt | $ | 99.1 | $ | 99.1 | ||||
(a)NBCUniversal Media, LLC (“NBCUniversal”), Comcast Cable Communications, LLC (“Comcast Cable”) and Comcast Holdings Corporation (“Comcast Holdings”), which is included within other debt subject to one-way guarantees, are each consolidated subsidiaries subject to the periodic reporting requirements of the SEC. The guarantee structures and related disclosures in this section, together with Exhibit 22 to our 2024 Annual Report on Form 10-K, satisfy these reporting obligations.
(b)Universal Beijing Resort debt financing is secured by the assets of Universal Beijing Resort and the equity interests of the investors. See Note 7 for additional information.
Cross-Guarantees
Comcast, NBCUniversal and Comcast Cable (the “Guarantors”) fully and unconditionally, jointly and severally, guarantee each other’s debt securities. NBCUniversal and Comcast Cable also guarantee other borrowings of Comcast, including its revolving credit facility. These guarantees rank equally with all other general unsecured and unsubordinated obligations of the respective Guarantors. However, the obligations of the Guarantors under the guarantees are structurally subordinated to the indebtedness and other liabilities of their respective non-guarantor subsidiaries. The obligations of each Guarantor are limited to the maximum amount that would not render such Guarantor’s obligations subject to avoidance under applicable fraudulent conveyance provisions of U.S. and non-U.S. law. Each Guarantor’s obligations will remain in effect until all amounts payable with respect to the guaranteed securities have been paid in full. However, a guarantee by NBCUniversal or Comcast Cable of Comcast’s debt securities, or by NBCUniversal of Comcast Cable’s debt securities, will terminate upon a disposition of such Guarantor entity or all or substantially all of its assets.
The Guarantors are each holding companies that principally hold investments in, borrow from and lend to non-guarantor subsidiary operating companies; issue and service third-party debt obligations; repurchase shares and pay dividends; and engage in certain corporate and headquarters activities. The Guarantors are generally dependent on non-guarantor subsidiary operating companies to fund these activities.
As of March 31, 2025 and December 31, 2024, the combined Guarantors have noncurrent notes payable to non-guarantor subsidiaries of $93 billion and $88 billion, respectively, and noncurrent notes receivable from non-guarantor subsidiaries of $14 billion for both periods. This financial information is that of the Guarantors presented on a combined basis with intercompany balances between the Guarantors eliminated. The combined financial information excludes financial information of non-guarantor subsidiaries. The underlying net assets of the non-guarantor subsidiaries are significantly in excess of the Guarantor obligations. Excluding investments in non-guarantor subsidiaries, external debt and the noncurrent notes payable and receivable with non-guarantor subsidiaries, the Guarantors do not have material assets, liabilities or results of operations.
One-Way Guarantees
Comcast provides full and unconditional guarantees of certain debt issued by Sky Limited (“Sky”), including all of its senior notes, and other consolidated subsidiaries not subject to the periodic reporting requirements of the SEC.
Comcast also provides a full and unconditional guarantee of $138 million principal amount of subordinated debt issued by Comcast Holdings. Comcast’s obligations under this guarantee are subordinated and subject, in right of payment, to the prior payment in full of all of Comcast’s senior indebtedness, including debt guaranteed by Comcast on a senior basis, and are structurally subordinated to the indebtedness and other liabilities of its non-guarantor subsidiaries (for purposes of this Comcast Holdings discussion, Comcast Cable and NBCUniversal are included within the non-guarantor subsidiary group). Comcast’s obligations as guarantor will remain in effect until all amounts payable with respect to the guaranteed debt have been paid in full. However, the guarantee will terminate upon a disposition of Comcast Holdings or all or substantially all of its assets. Comcast Holdings is a consolidated subsidiary holding company that directly or indirectly holds 100% and approximately 37% of our equity interests in Comcast Cable and NBCUniversal, respectively.
As of March 31, 2025 and December 31, 2024, Comcast and Comcast Holdings, the combined issuer and guarantor of the guaranteed subordinated debt, have noncurrent senior notes payable to non-guarantor subsidiaries of $59 billion and $53 billion, respectively, and noncurrent notes receivable from non-guarantor subsidiaries of $10 billion for both periods. This financial information is that of Comcast and Comcast Holdings presented on a combined basis with intercompany balances between Comcast and Comcast Holdings eliminated. The combined financial information excludes financial information of non-guarantor subsidiaries of Comcast and Comcast Holdings. The underlying net assets of the non-guarantor subsidiaries of Comcast and Comcast Holdings are significantly in excess of the obligations of Comcast and Comcast Holdings. Excluding investments in non-guarantor subsidiaries, external debt, and the noncurrent notes payable and receivable with non-guarantor subsidiaries, Comcast and Comcast Holdings do not have material assets, liabilities or results of operations.
Critical Accounting Estimates
The preparation of our condensed consolidated financial statements requires us to make estimates that affect the reported amounts of assets, liabilities, revenue and expenses, and the related disclosure of contingent assets and contingent liabilities. We base our judgments on our historical experience and on various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making estimates about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
For a more complete discussion of the accounting estimates that we have identified as critical in the preparation of our condensed consolidated financial statements, please refer to our Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2024 Annual Report on Form 10-K.
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