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👋 Howdy Partner,
Today we’re looking at another company that’s about to go through a big change.
It’s Comcast ($CMCSA).
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For years, Comcast has said that the combination of the media and connectivity (broadband) businesses has advantages.
But now they’re planning on separating them.
Let’s look at if this could be an interesting opportunity.
Company Overview
Today, Comcast is huge.
They own:
Xfinity, the nation’s largest broadband network
NBCUniversal
The NBCUniversal theme parks
Sky
The Peacock streaming platform
Movie and TV studios like DreamWorks, Illumination, and Sky Studios
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The connectivity business includes broadband for homes and businesses.
This is almost like a utility business, with very steady revenue
The media, studio, and theme park businesses aren’t as stable as broadband.
The theme parks are growing quickest
Studio revenue has been steady
Media doesn’t have a lot of data (yet)
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Overall, the business shows slow, steady revenue growth and a lot of FCF.
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That's allowed Comcast to pay a growing dividend for 18 years now.
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