Comcast has announced another 10 percent increase in its dividend, after reporting double-digit growth in underlying earnings and record free cash flow for 2019. This is the company's 12th consecutive annual increase and comes despite expected additional investment in the launch of its Peacock streaming service this year.
The company posted revenues up 2.0 percent to USD 28.4 billion for the fourth quarter and grew annual sales 15.3 percent to USD 108.9 billion. Growth was driven by the takeover of Sky in Europe as well as broadband expansion in the US. On a pro forma basis for the takeover, revenues were flat in Q4 and down 0.5 percent in the full year.
Net profit for the fourth quarter was up 25.9 percent to USD 3.2 billion, and adjusted EPS rose 9.7 percent to USD 0.79. Free cash flow surged 20.4 percent year-on-year to USD 2.5 billion in Q4 and increased 6.4 percent over the full year to USD 13.4 billion. The dividend will rise to USD 0.23 per quarter and USD 0.92 on an annualised basis in 2020.
TV subscriber losses nearly double in 2019
At the Cable business, Comcast grew revenues 2.6 percent to USD 14.8 billion, and adjusted EBITDA increased 5.4 percent to USD 5.9 billion. Growth was driven by the expansion of the mobile business and broadband subscribers, as well as price increases, helping offset lower ad revenues. Capital expenditure was down 10.5 percent over the 12 months to USD 6.9 billion, or 11.9 percent of revenue.
Cable customer growth improved year-on-year to 372,000 net additions in Q4 and over 1.13 million in the full year, taking Comcast to a total 31.545 million customers at year-end. Broadband led the increase, adding 442,000 subscribers in Q4 and 1.41 million in the 12 months, while TV losses swelled to 149,000 in the last quarter and nearly doubled over the full year to 733,000.
Mobile customer growth remained constant, with 261,000 net adds in Q4, for a total base of just over 2 million at the end of 2019. The business contributed a loss of USD 116 million, narrowing from USD 191 million a year ago.
Sky results flat, customer growth slows
Sky reported revenues and adjusted EBITDA little changed in Q4, at respectively USD 5.0 billion and USD 765 million. Excluding currency effects, revenues rose 1.4 percent and EBITDA was up 0.4 percent. Subscription revenue rose 4 percent and content sales increased 2.7 percent, helping offset lower ad revenues after stricter rules on betting commercials in the UK and Italy.
Sky added a net 77,000 customers in Q4 and 394,000 over the full year, significantly less than in the previous year. It ended the year with just under 24 million customers.
