Comcast cable video subscribers down 561,000 in 3Q 2022

PHILADELPHIA — Comcast Corporation (NASDAQ: CMCSA) today reported results for the quarter ended September 30, 2022.

Cable Communications

Total Customer Relationships decreased by 21,000 to 34.4 million in the third quarter of 2022. Residential customer relationships decreased by 26,000 and business customer relationships increased by 5,000. Total broadband customer net additions were 14,000, total video customer net losses were 561,000 and total voice customer net losses were 316,000. In addition, Cable Communications added 333,000 wireless lines in the quarter.

For the nine months ended September 30, 2022, total customer relationships increased by 145,000. Residential customer relationships increased by 121,000 and business customer relationships increased by 25,000. Total broadband customer net additions were 277,000, total video customer net losses were 1.6 million and total voice customer net losses were 884,000. In addition, Cable Communications added 968,000 wireless lines in the current period.

Video Customers (thousands):

                                                                  2020
                              ----------------------------------------
                                  1Q      2Q      3Q      4Q        FY
                              ------  ------  ------  ------  --------
Total                         20,845  20,367  20,094  19,846
Net Additions (losses)         (409)   (477)   (273)   (248)   (1,408)

                                                                  2021
                              ----------------------------------------
                                  1Q      2Q      3Q      4Q        FY
                              ------  ------  ------  ------  --------
Total                         19,355  18,956  18,549  18,176
Net Additions (losses)         (491)   (399)   (408)   (373)   (1,669)

                                                                  2022
                              ----------------------------------------
                                  1Q      2Q      3Q      4Q        FY
                              ------  ------  ------  ------  --------
Total                         17,664  17,144  16,582
Net Additions (losses)         (512)   (521)   (561)

NBCUniversal

Media revenue decreased 22.7% to $5.2 billion in the third quarter of 2022, due to lower advertising revenue and distribution revenue, reflecting the comparison to the Tokyo Olympics in the prior year period. Excluding $1.8 billion of incremental revenue from the Tokyo Olympics in the prior year period, Media revenue increased 4.4%. Advertising revenue decreased 35.1%, primarily due to the Tokyo Olympics in the prior year period, partially offset by an increase in Peacock advertising revenue. Distribution revenue decreased 13.7%, reflecting the Tokyo Olympics in the prior year period and a decline in subscribers at our networks, partially offset by an increase in subscribers at Peacock and contractual rate increases. Adjusted EBITDA decreased 41.5% to $583 million in the third quarter of 2022, reflecting lower revenue, which more than offset lower operating expenses.

For the nine months ended September 30, 2022, revenue from the Media segment increased 2.8% to $17.4 billion, primarily due to higher distribution revenue. Excluding $1.5 billion of incremental revenue from the Beijing Olympics and the NFL’s Super Bowl in the current year period and $1.8 billion of incremental revenue from the Tokyo Olympics in 2021, Media revenue increased 4.9%. Adjusted EBITDA decreased 20.0% to $3.1 billion, reflecting higher operating expenses, which more than offset higher revenue.

Sky

Total Customer Relationships increased by 320,000 to 23.0 million in the third quarter of 2022, driven by streaming customer net additions as a result of the timing of unique content and the early start of the football season. For the nine months ended September 30, 2022, total customer relationships decreased by 41,000.

Customer Relationships* (thousands, except customer data):

                                                                      2020
                                    --------------------------------------
                                        1Q      2Q      3Q      4Q      FY
                                    ------  ------  ------  ------  ------
Customer relationships              23,216  23,002  22,981  23,224  23,224
Net additions (losses)                (65)   (214)    (21)     244    (56)
Average monthly direct-to-consumer
 revenue per customer relationship  $52.76  $50.82  $57.17  $58.83  $54.56

                                                                      2021
                                    --------------------------------------
                                        1Q      2Q      3Q      4Q      FY
                                    ------  ------  ------  ------  ------
Customer relationships              23,446  23,198  22,966  23,027  23,027
Net additions (losses)                 221   (248)   (233)      61   (198)
Average monthly direct-to-consumer
 revenue per customer relationship  $58.06  $60.35  $59.60  $58.56  $59.29

                                                                      2022
                                    --------------------------------------
                                        1Q      2Q      3Q      4Q      FY
                                    ------  ------  ------  ------  ------
Customer relationships              22,921  22,666  22,986
Net additions (losses)               (106)   (255)     320
Average monthly direct-to-consumer
 revenue per customer relationship  $56.35  $53.81  $51.25

* Customer relationships represent the number of residential customers that subscribe to at least one of Sky’s four primary services of video, broadband, voice and wireless phone service. Sky reports commercial customers, including hotels, bars, workplaces and restaurants, generally based on the number of locations receiving our services. In the first quarter of 2021, we implemented conforming changes to our methodology for counting commercial customers in Italy and Germany, which are now counted as described above, consistent with customers in the United Kingdom. Previously these customers were counted based on a residential equivalent unit in Italy and the number of active venues or rooms in Germany. This change resulted in a reduction in Sky’s total customer relationships of 714,000 as of December 31, 2020. The impact of the change in methodology to customer relationship net additions for any period was not material. For comparative purposes, we have updated Sky’s historical total customer relationships and average monthly direct-to-consumer revenue per customer relationship to reflect this adjustment.