The Comcast Corporation
"Comcast's strong operating and financial performance in 2021 was underscored by our highest full-year revenue, adjusted EBITDA, adjusted EPS, and free cash flow on record," Comcast Chairman and Chief Executive Officer Brian L. Roberts commented in the firm's release. "Our top priority is increasing the capacity of our network in the U.S. and further improving our world-class broadband experience. We are producing more of the premium content that our viewers love and continue to provide them with multiple ways to access it, including on Peacock while ramping construction of Epic Universe and welcoming even more guests to our Theme Parks."
In terms of year-end numbers for 2021, Comcast delivered an increased EBITDA of $34.7 billion, a 12.6% increase compared to 2020. EPS landed at $3.23, a 23.8% increase. The company generated a free cash flow of $17.1 billion, a 28.7% rise over 2020.
Yet, the company had one particularly glaring red mark: its streaming service, Peacock. Peacock has done nothing but lose Comcast money for its short life, costing Comcast $1.7 billion in 2021. Yet, Comcast is quite literally doubling down on its hand, with plans to increase billions into the service over the next few years.
Of its nearly 25 million subscribers, only 9 million are currently paid. Most Peacock's users are either using its free services or receiving the streaming service as part of a bundle, such as with Xfinity internet packages. Comcast's spending is earmarked towards increasing that paid figure, including offering more exclusive programming.
Peacock's current market share is pitifully small compared to major players such as Netflix
Investing in more content to become more competitive is likely the only way forward for Comcast, which hopes to make the service profitable by 2025. However, the gap between giants such as Netflix and less successful competitors is shrinking, creating the opportunity for a breakout hit or two to steal some subscribers away.
Netflix's recent pricing changes make it the most expensive basic plan on the market. Peacock could feasibly position itself as a cheaper alternative to Netflix by providing more competitive content at a lower price.
Last week was a bit of a slog for Comcast in terms of share price dropping 1.7% over the course of the week.