Enhanced Investments - Financial Portal

Published: 2023-03-13 09:00:40 ET

EX-99.1 2 ex991-1q2023.htm EX-99.1 Document

Exhibit 99.1

Summary of Segment Reporting Changes

The following table presents a reconciliation of previously reported segment results for the years ended 2021 and 2022 to our segment results under the new segment structure, including: (1) the presentation of Cable Communications results in the Residential Connectivity & Platforms and Business Services Connectivity segments and (2) the presentation of Sky’s results across the Connectivity & Platforms and Content & Entertainment segments, and Corporate & Other.


	Year ended December 31, 2021								Year ended December 31, 2022
($ in millions; unaudited)	As Originally Reported		Cable Communications to Connectivity & Platforms Segments		Sky to New Segments		Recast		As Originally Reported		Cable Communications to Connectivity & Platforms Segments		Sky to New Segments		Recast

Revenue
Cable Communications	$	64,328	$	(64,328)			$	—	$	66,318	$	(66,318)			$	—
Residential Connectivity & Platforms			56,295		16,399		72,694				57,532		14,854		72,386
Business Services Connectivity			8,033		23		8,056				8,786		33		8,819
Total Connectivity & Platforms	—		64,328		16,423		80,750		—		66,318		14,887		81,205
NBCUniversal / Content & Experiences
Media	22,780				4,626		27,406		23,406				3,313		26,719
Studios	9,449				628		10,077		11,622				635		12,257
Theme Parks	5,051						5,051		7,541						7,541
Headquarters & Other	87						87		75						75
Eliminations	(3,048)						(3,048)		(3,442)						(3,442)
Total NBCUniversal / Content & Experiences	34,319		—		5,254		39,574		39,203		—		3,948		43,151
Sky	20,285				(20,285)		—		17,946				(17,946)		—
Corporate & Other	461				2,383		2,844		863				1,799		2,662
Eliminations	(3,008)				(3,775)		(6,783)		(2,903)				(2,688)		(5,590)
Total Consolidated Revenue	$	116,385	$	—	$	—	$	116,385	$	121,427	$	—	$	—	$	121,427

Adjusted EBITDA1
Cable Communications	$	28,097	$	(28,097)			$	—	$	29,403	$	(29,403)			$	—
Residential Connectivity & Platforms			23,401		1,787		25,188				24,327		1,785		26,111
Business Services Connectivity			4,696		(14)		4,682				5,077		(17)		5,060
Total Connectivity & Platforms	—		28,097		1,773		29,871		—		29,403		1,768		31,171
NBCUniversal / Content & Experiences
Media	4,569				564		5,133		3,212				386		3,598
Studios	884				(5)		879		942				19		961
Theme Parks	1,267						1,267		2,683						2,683
Headquarters & Other	(840)						(840)		(881)						(881)
Eliminations	(205)						(205)		(2)						(2)
Total NBCUniversal / Content & Experiences	5,675		—		559		6,234		5,955		—		405		6,360
Sky	2,359				(2,359)		—		2,526				(2,526)		—
Corporate & Other	(1,358)				27		(1,331)		(1,361)				352		(1,008)
Eliminations	(65)				—		(65)		(64)				—		(64)
Total Consolidated Adjusted EBITDA1	$	34,708	$	—	$	—	$	34,708	$	36,459	$	—	$	—	$	36,459

1Adjusted EBITDA is the measure of profit and loss for our segments. Consolidated Adjusted EBITDA is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section below for additional information, including a reconciliation from net income attributable to Comcast Corporation to consolidated Adjusted EBITDA.

Recast Segment Operating Results

The following tables present our segment operating results for 2021 and 2022 under the new segment structure:


	2021										2022
($ in millions; unaudited)	1Q		2Q		3Q		4Q		FY		1Q			2Q			3Q			4Q			FY

Revenue
Domestic Broadband	$	5,600	$	5,717	$	5,801	$	5,861	$	22,979	$	6,050		$	6,107		$	6,135		$	6,177		$	24,469
Domestic Wireless	513		556		603		709		2,380		677			722			789			883			3,071
International Connectivity	762		794		840		896		3,293		840			791			842			953			3,426
Residential Connectivity	6,875		7,067		7,245		7,466		28,652		7,568			7,620			7,766			8,013			30,966
Video	8,191		8,232		8,080		7,936		32,440		8,002			7,793			7,428			7,273			30,496
Advertising	1,001		1,128		1,097		1,282		4,507		1,073			1,112			1,079			1,283			4,546
Other	1,785		1,805		1,759		1,747		7,095		1,698			1,607			1,561			1,512			6,378
Residential Connectivity & Platforms	17,851		18,232		18,180		18,431		72,694		18,340			18,131			17,833			18,081			72,386
Business Services Connectivity	1,946		1,983		2,008		2,119		8,056		2,172			2,203			2,215			2,230			8,819
Total Connectivity & Platforms	19,797		20,215		20,188		20,550		80,750		20,512			20,335			20,048			20,311			81,205
Change											3.6		%	0.6		%	(0.7)		%	(1.2)		%	0.6		%
Constant Currency Change1											4.4		%	2.9		%	2.3		%	1.4		%	2.7		%
Domestic Advertising	2,072		2,161		3,230		2,714		10,177		3,310			2,131			2,089			2,829			10,360
Domestic Distribution	2,403		2,358		2,896		2,423		10,080		2,938			2,558			2,497			2,532			10,525
International Networks	1,268		1,288		1,221		1,282		5,060		995			970			872			893			3,729
Other	458		521		542		569		2,090		515			529			547			514			2,105
Total Media	6,202		6,328		7,889		6,988		27,406		7,758			6,188			6,005			6,768			26,719
Content Licensing	2,204		1,962		1,960		2,067		8,193		2,429			2,269			2,267			2,382			9,348
Theatrical	39		198		307		147		691		168			550			673			216			1,607
Other	282		245		273		392		1,193		310			298			356			339			1,302
Total Studios	2,525		2,406		2,540		2,606		10,077		2,907			3,117			3,296			2,938			12,257
Theme Parks	619		1,095		1,449		1,887		5,051		1,560			1,804			2,064			2,114			7,541
Headquarters & Other	16		22		28		22		87		16			8			22			29			75
Eliminations	(1,043)		(534)		(654)		(817)		(3,048)		(901)			(664)			(909)			(968)			(3,442)
Total Content & Experiences	8,319		9,316		11,252		10,686		39,574		11,339			10,453			10,477			10,881			43,151
Corporate & Other	723		731		650		740		2,844		713			617			601			731			2,662
Eliminations	(1,635)		(1,716)		(1,793)		(1,641)		(6,783)		(1,554)			(1,389)			(1,277)			(1,370)			(5,590)
Total Consolidated Revenue	$	27,205	$	28,546	$	30,298	$	30,336	$	116,385	$	31,010		$	30,016		$	29,849		$	30,552		$	121,427

1Constant currency is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section below for additional information, including a reconciliation of constant currency amounts.


	2021										2022
($ in millions; unaudited)	1Q		2Q		3Q		4Q		FY		1Q			2Q			3Q			4Q			FY

Costs and Expenses, Excluding Depreciation and Amortization1
Residential Connectivity & Platforms	$	11,674	$	11,707	$	11,805	$	12,320	$	47,506	$	11,729		$	11,399		$	11,138		$	12,009		$	46,275
Business Services Connectivity	792		830		827		925		3,374		938			941			927			953			3,759
Total Connectivity & Platforms	12,466		12,537		12,632		13,245		50,880		12,668			12,339			12,065			12,962			50,033
Change											1.6		%	(1.6)		%	(4.5)		%	(2.1)		%	(1.7)		%
Constant Currency Change2											2.7		%	1.5		%	(0.4)		%	1.6		%	1.4		%
Supplemental Connectivity & Platforms Detail
Programming	5,199		5,176		5,069		5,098		20,542		4,884			4,679			4,464			4,473			18,500
Marketing & Promotion	1,213		1,274		1,309		1,384		5,180		1,332			1,296			1,246			1,227			5,101
Direct Product Costs	1,122		1,152		1,200		1,427		4,901		1,339			1,329			1,377			1,553			5,598
Technical & Support	1,855		1,873		1,951		2,003		7,682		1,949			1,916			1,911			1,945			7,721
Customer Service	776		759		748		735		3,018		736			720			712			702			2,870
Other	2,301		2,303		2,354		2,598		9,557		2,429			2,399			2,354			3,062			10,244
Total Connectivity & Platforms	12,466		12,537		12,632		13,245		50,880		12,668			12,339			12,065			12,962			50,033
Programming & Production	3,742		3,838		5,220		4,599		17,398		5,221			3,405			3,919			5,104			17,650
Marketing & Promotion	222		238		382		422		1,264		426			291			365			439			1,520
Other	819		854		917		1,022		3,611		929			972			1,042			1,008			3,951
Total Media	4,783		4,930		6,518		6,042		22,273		6,577			4,669			5,326			6,550			23,121
Programming & Production	1,746		1,782		1,868		2,047		7,443		2,122			2,392			2,149			2,115			8,778
Marketing & Promotion	124		296		339		320		1,079		327			531			388			452			1,699
Other	162		172		148		195		677		213			196			207			203			819
Total Studios	2,032		2,250		2,355		2,562		9,198		2,662			3,120			2,744			2,770			11,296
Theme Parks	680		874		1,015		1,213		3,783		1,109			1,173			1,244			1,332			4,858
Headquarters & Other	225		208		276		219		927		208			145			221			382			956
Eliminations	(833)		(518)		(642)		(850)		(2,843)		(839)			(688)			(849)			(1,064)			(3,440)
Total Content & Experiences	6,888		7,743		9,522		9,185		33,340		9,716			8,419			8,686			9,970			36,791
Corporate & Other1	1,082		1,057		881		1,156		4,175		948			784			919			1,019			3,670
Eliminations	(1,644)		(1,717)		(1,695)		(1,662)		(6,718)		(1,472)			(1,353)			(1,303)			(1,398)			(5,526)
Total Consolidated Operating Costs and Expenses, Excluding Depreciation and Amortization1	$	18,792	$	19,620	$	21,341	$	21,925	$	81,677	$	21,859		$	20,189		$	20,367		$	22,552		$	84,968

1Costs and expenses, excluding depreciation and amortization, presented in these trending schedules do not include certain amounts that are excluded from Adjusted EBITDA, such as impairments of goodwill and long-lived assets and other operating gains and losses. Corporate & Other also excludes $12 million, $36 million, $30 million, $9 million, $33 million, $(9) million, $(9) million and $(2) million of Sky transaction-related costs and costs related to our investment portfolio in first quarter 2021, second quarter 2021, third quarter 2021, fourth quarter 2021, first quarter 2022, second quarter 2022, third quarter 2022 and fourth quarter 2022, respectively, as these amounts are excluded from Adjusted EBITDA. Goodwill and long-lived asset impairments relating to Sky totaling $8.6 billion were recorded in the third quarter of 2022 and are not included in these trending schedules.

2Constant currency is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section below for additional information, including a reconciliation of constant currency amounts.


	2021										2022
($ in millions; unaudited)	1Q		2Q		3Q		4Q		FY		1Q			2Q			3Q			4Q			FY

Adjusted EBITDA1
Residential Connectivity & Platforms	$	6,177	$	6,525	$	6,375	$	6,111	$	25,188	$	6,611		$	6,733		$	6,695		$	6,073		$	26,111
Business Services Connectivity	1,154		1,153		1,181		1,195		4,682		1,233			1,263			1,288			1,276			5,060
Total Connectivity & Platforms	7,331		7,678		7,556		7,306		29,871		7,844			7,995			7,983			7,349			31,171
Change											7.0		%	4.1		%	5.6		%	0.6		%	4.4		%
Constant Currency Change2											7.2		%	5.0		%	6.6		%	1.0		%	5.0		%
Media	1,418		1,398		1,371		946		5,133		1,181			1,520			679			218			3,598
Studios	492		156		186		45		879		245			(3)			551			168			961
Theme Parks	(61)		221		434		674		1,267		451			632			819			782			2,683
Headquarters & Other	(209)		(186)		(248)		(197)		(840)		(191)			(137)			(199)			(353)			(881)
Eliminations	(210)		(15)		(12)		33		(205)		(62)			23			(59)			97			(2)
Total Content & Experiences	1,431		1,573		1,730		1,501		6,234		1,623			2,034			1,791			911			6,360
Corporate & Other	(358)		(326)		(231)		(416)		(1,331)		(235)			(167)			(318)			(288)			(1,008)
Eliminations	10		2		(98)		21		(65)		(82)			(36)			26			28			(64)
Total Consolidated Adjusted EBITDA1	$	8,413	$	8,927	$	8,957	$	8,411	$	34,708	$	9,150		$	9,827		$	9,482		$	8,000		$	36,459

2Constant currency is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section below for additional information, including a reconciliation of constant currency amounts.

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.

A reconciliation from net income attributable to Comcast Corporation to Adjusted EBITDA is presented below:


	2021										2022
($ in millions; unaudited)	1Q		2Q		3Q		4Q		FY		1Q		2Q		3Q		4Q		FY
Net income attributable to Comcast Corporation	$	3,329	$	3,738	$	4,035	$	3,057	$	14,159	$	3,549	$	3,396	$	(4,598)	$	3,024	$	5,370
Net income (loss) attributable to noncontrolling interests	(37)		(108)		(104)		(77)		(325)		(73)		(155)		(68)		(150)		(445)
Income tax expense	1,119		2,000		1,235		905		5,259		1,288		1,261		1,014		797		4,359
Investment and other (income) loss, net	(391)		(1,216)		(766)		(183)		(2,557)		(188)		897		266		(114)		861
Interest expense	1,018		1,093		1,050		1,120		4,281		993		968		960		974		3,896
Depreciation	2,117		2,113		2,177		2,220		8,628		2,213		2,162		2,150		2,199		8,724
Amortization	1,245		1,270		1,301		1,361		5,176		1,335		1,306		1,183		1,273		5,097
Goodwill and long-lived asset impairments	—		—		—		—		—		—		—		8,583		—		8,583
Adjustments	12		36		30		9		87		33		(9)		(9)		(2)		13

Adjusted EBITDA	$	8,413	$	8,927	$	8,957	$	8,411	$	34,708	$	9,150	$	9,827	$	9,482	$	8,000	$	36,459

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 segments, 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 evaluate 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.

Reconciliations of total Connectivity & Platforms constant currency amounts used in determining constant currency changes are presented below:



($ in millions; unaudited)	2021
Revenue		1Q		2Q		3Q		4Q		FY
As reported		$	19,797	$	20,215	$	20,188	$	20,550	$	80,750
Effects of foreign currency		(143)		(444)		(594)		(520)		(1,702)
Constant currency amounts		$	19,654	$	19,770	$	19,594	$	20,030	$	79,049


($ in millions; unaudited)	2021
Costs and expenses, excluding depreciation and amortization		1Q		2Q		3Q		4Q		FY
As reported		$	12,466	$	12,537	$	12,632	$	13,245	$	50,880
Effects of foreign currency		(130)		(383)		(523)		(490)		(1,527)
Constant currency amounts		$	12,335	$	12,154	$	12,109	$	12,754	$	49,353


($ in millions; unaudited)	2021
Adjusted EBITDA		1Q		2Q		3Q		4Q		FY
As reported		$	7,331	$	7,678	$	7,556	$	7,306	$	29,871
Effects of foreign currency		(13)		(62)		(71)		(30)		(175)
Constant currency amounts		$	7,318	$	7,616	$	7,485	$	7,276	$	29,696

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.