01—Abstract
Summary
Summary of the 10-K filed February 23, 2012. Cited figures are marked; the original filing is the authoritative source.
Comcast Corporation's 2011 10-K filing reveals a transformative year, largely dominated by the acquisition of a 51%a controlling interest in NBCUniversal on January 28, 2011.
This strategic move significantly expanded Comcast's business segments, integrating Cable Networks, Broadcast Television, Filmed Entertainment, and Theme Parks alongside its established Cable Communications segment. The NBCUniversal acquisition drove a substantial increase in consolidated revenue (47.2%b) and operating income (34.3%) for the year. The company's core Cable Communications segment showed steady growth, with revenue increasing by 5.3% and operating income before depreciation and amortization rising by 6.9%.
This segment remains the primary revenue generator, accounting for 67%c of consolidated revenue. Investors should note the continued shift in video customer base towards digital services and growth in high-speed internet and voice subscriptions. The integration of NBCUniversal presents both opportunities for diversified revenue streams and potential integration challenges, as well as increased debt levels to finance the acquisition.
02—Key points
Key Highlights
- Completion of the NBCUniversal acquisition on January 28, 2011, significantly expanding Comcast's media and entertainment portfolio.
- Consolidated revenue increased by 47.2% to $55.8 billion, and consolidated operating income grew by 34.3% to $10.7 billion, largely due to the NBCUniversal acquisition.
- Cable Communications segment revenue grew 5.3% to $37.2 billion, with operating income before depreciation and amortization increasing by 6.9%, demonstrating continued strength in the core business.
- Video customer base saw a net decrease of 460,000 customers in the Cable Communications segment, reflecting competitive pressures and economic conditions.
- High-speed Internet and Voice customer bases continued to grow, with high-speed Internet customers increasing by 1.16 million and Voice customers by 732,000.
- Total debt increased to $39.3 billion, reflecting financing for the NBCUniversal transaction.
- Comcast increased its quarterly dividend by 44% to $0.65 per share on an annualized basis, signaling confidence in future cash flows.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2011filed February 23, 2012Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $55.84B$37.94B | +47.2% |
| Operating Expenses | $45.12B$29.96B | +50.6% |
| Operating Income | $10.72B$7.98B | +34.3% |
| Interest Expense | $2.50B$2.16B | +16.2% |
| Net Income | $4.16B$3.63B | +14.4% |
| EPS (Basic) | $0.76$0.65 | +17.1% |
| EPS (Diluted) | $0.75$0.65 | +16.3% |
| Shares Outstanding (Basic) | 5.49B5.62B | −2.2% |
| Shares Outstanding (Diluted) | 5.56B5.64B | −1.5% |
05—Questions
Frequently Asked Questions
What was the most significant event for Comcast in 2011?
The most significant event was the closing of the acquisition of a 51% controlling interest in NBCUniversal on January 28, 2011. This transaction diversified Comcast's business into broadcast and cable television, filmed entertainment, and theme parks, alongside its cable communications operations.
How did the NBCUniversal acquisition impact Comcast's financial performance?
The acquisition significantly boosted Comcast's financial results. Consolidated revenue increased by 47.2% to $55.8 billion, and consolidated operating income rose by 34.3% to $10.7 billion. NBCUniversal contributed $14.5 billion to revenue and $1.4 billion to operating income.
What is the current trend in Comcast's Cable Communications segment regarding customer numbers?
The Cable Communications segment experienced a net decrease of 460,000 video customers in 2011, continuing a trend of declining video subscribers. However, the high-speed Internet and voice customer bases continued to grow, indicating a shift towards these services and potential bundling strategies.
How has Comcast's debt situation changed?
Comcast's total debt increased to $39.3 billion from $31.4 billion in the prior year, primarily due to the financing required for the NBCUniversal acquisition. The company's leverage ratios, however, remained within manageable limits according to its credit facilities.
06—Continue