01—Abstract
Summary
Summary of the 10-K filed February 23, 2010. Cited figures are marked; the original filing is the authoritative source.
Comcast Corporation's 2009 10-K report details a year of solid financial performance and strategic growth, despite a challenging economic environment.
The company experienced revenue and operating income growth across its Cable and Programming segments. Notably, the Cable segment, which accounts for 95%a of revenue, saw an increase in high-speed internet and phone customer additions, though video customer numbers saw a slight decline. Strategic initiatives included continued investment in network enhancements like the all-digital conversion and DOCSIS 3.0 deployment.
The company also significantly reduced its total debt and repurchased a substantial amount of its own stock, while increasing dividends paid to shareholders. A major development was the agreement to acquire NBC Universal from General Electric, a transformative deal expected to close by the end of 2010, which will significantly expand Comcast's programming and content offerings. Comcast operates in a highly competitive landscape, facing pressure from Direct Broadcast Satellite (DBS) providers and telephone companies offering video and internet services.
The company's financial results were impacted by these competitive pressures and the prevailing economic conditions, which affected customer spending. However, Comcast demonstrated resilience, managing operational expenses effectively and maintaining strong operating margins. The company's focus on technological advancements and service enhancements, coupled with its strategic capital allocation, positions it for continued operation in the evolving media and telecommunications sector.
02—Key points
Key Highlights
- Consolidated revenue increased by 3.9% to approximately $35.8 billion, and consolidated operating income rose by 7.2% to approximately $7.2 billion in 2009.
- Cable segment revenue grew 3.8% to approximately $33.9 billion, with operating income before depreciation and amortization increasing by 4.0% to $13.7 billion.
- High-speed internet and phone customer bases grew by approximately 1.0 million and 1.1 million, respectively, while video customers decreased by 623,000.
- Total debt outstanding decreased by 10.4% to approximately $29.1 billion.
- Comcast repurchased approximately 49.8 million shares of its common stock for $765 million and increased its quarterly dividend by 40% to $0.378 per share on an annualized basis.
- A significant strategic development was the agreement to acquire NBC Universal from General Electric, expected to close by the end of 2010.
- Cable segment capital expenditures were reduced by 9.2% to approximately $5.0 billion.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2009filed February 23, 2010Financial Statements
FY2009 against FY2008
| Line item | FY2009FY2008 | Change |
|---|---|---|
| Revenue | $35.76B$34.42B | +3.9% |
| SG&A Expenses | $7.66B$7.63B | +0.4% |
| Operating Expenses | $28.54B$27.69B | +3.1% |
| Operating Income | $7.21B$6.73B | +7.2% |
| Interest Expense | $2.35B$2.44B | −3.7% |
| Net Income | $3.64B$2.55B | +42.8% |
| EPS (Basic) | $0.64$0.43 | +46.0% |
| EPS (Diluted) | $0.63$0.43 | +46.5% |
| Shares Outstanding (Basic) | 5.75B5.88B | −2.2% |
| Shares Outstanding (Diluted) | 5.77B5.90B | −2.3% |
05—Questions
Frequently Asked Questions
What were Comcast's main financial performance highlights for 2009?
In 2009, Comcast reported a consolidated revenue of approximately $35.8 billion, a 3.9% increase from the previous year. Consolidated operating income also grew by 7.2% to approximately $7.2 billion. The Cable segment, the company's largest revenue generator, saw revenue increase by 3.8% to $33.9 billion, with operating income before depreciation and amortization rising 4.0% to $13.7 billion.
What are the key customer growth trends for Comcast in 2009?
Comcast added approximately 1.0 million high-speed Internet customers and 1.1 million phone customers in 2009. However, the company experienced a decrease of approximately 623,000 video customers during the same period, primarily attributed to increased competition and economic conditions.
What major strategic initiatives were undertaken by Comcast in 2009?
The most significant strategic move was the agreement to acquire NBC Universal from General Electric in December 2009, a transaction anticipated to close by the end of 2010. This acquisition aimed to enhance Comcast's content and programming portfolio. Additionally, Comcast continued to invest in network enhancements, such as its all-digital conversion and the deployment of DOCSIS 3.0 technology for faster internet speeds.
How did Comcast manage its debt and return capital to shareholders in 2009?
Comcast successfully reduced its total debt outstanding by 10.4%, bringing it down to approximately $29.1 billion. The company also actively repurchased its own stock, buying back approximately 49.8 million shares for $765 million. Furthermore, Comcast demonstrated a commitment to shareholder returns by increasing its quarterly dividend by 40% to an annualized rate of $0.378 per share.
06—Continue