Comcast (NASDAQ: CMCSA) is a communications and media conglomerate, that primarily operates cable communications networks and has media interests that include cable and broadcast TV networks, film and media production. Below, we take a look at the company’s key businesses and how it makes money.
View our interactive dashboard analysis on Comcast Revenues: How Does Comcast Make Money?
Has 3 Operating Segments-
- Comcast Cable (51% of 2019E revenues): Comcast Cable is one of the largest providers of high-speed internet, video, and voice services in the United States. The company sells to residential customers under the Xfinity brand.
- NBCUniversal (33% of 2019E revenues) : Includes media operations such as cable networks, broadcast television, filmed entertainment, and theme parks.
- Sky (16% of 2019E revenues): Based in Europe, Sky operates video, high-speed internet, voice, and wireless phone services and also runs the Sky News broadcast network and Sky Sports networks.
What Are The Alternatives?
- Comcast Cable: Comcast’s broadband business competes with the likes of Charter, AT&T, and Verizon. The video business competes with DirecTV, Charter, and Dish TV.
- NBCUniversal: This segment competes with other media companies that own cable networks and broadcasting networks. These include Disney, CBS, Time Warner, Viacom, and News Corp.
What Is The Basis of Competition?
- Competition in the cable space is based on the quality of service, reliability, and pricing.
- In the media space, the quality of content and programming is a key differentiator.
Comcast’s Total Revenue has grown from $81 billion in 2016 to almost $95 billion in 2018 and is expected to stand at about $115 billion in 2 years
Revenue growth of about $20 billion over the next two years to be driven primarily by the consolidation of revenues from Sky acquisition, closed in 2018
(A) Revenue from Cable Communications to increase ~3% CAGR (about $3.5 billion) in the next two years, with its share of Total Revenue expected to be about 51% by 2020
- Overall, Cable Communications revenue increased from $50.6 billion in 2016 to $55 billion in 2018, driven primarily by a higher uptake for Residential Broadband services.
- We expect revenue to grow to about $59 billion by 2020, driven by continued growth in the Residential Broadband space and a higher uptake for its Business services.
(B) Revenue from NBCUniversal to increase ~5% CAGR (about $3.5 billion) in the next two years, with its share of Total Revenue expected to be about 34% by 2020
- Revenues for the NBCUniversal segment expanded from $31.3 billion in 2016 to about $36 billion in 2018, driven by the Cable Networks and Broadcast divisions.
- We expect revenue to grow to over $39 billion by 2020, driven by continued growth in broadcast and cable networks space.
(C) Revenue from Sky to increase ~$14 billion in the next two years, with its share of Total Revenue expected to be about 16% by 2020
- Comcast closed its acquisition of Sky in 2018 and 2019 will be the first full year of consolidation.
- We expect revenues to grow from $4.6 billion in 2018 to about $18 billion in 2019.
What’s behind Trefis? See How it’s Powering New Collaboration and What-Ifs
More Trefis Data
Like our charts? Explore example interactive dashboards and create your own.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.