01—Abstract
Summary
Summary of the 10-K filed February 12, 2014. Cited figures are marked; the original filing is the authoritative source.
Comcast Corporation's 2013 10-K filing highlights a year of significant growth and strategic advancements, particularly marked by the full acquisition of NBCUniversal in March 2013.
The company demonstrated robust financial performance, with consolidated revenue increasing by 3.3% to $64.7 billiona and operating income rising by 11.4% to $13.6 billion. The Cable Communications segment remained the primary revenue and operating income driver, showing a 5.6% revenue increase to $41.8 billion, driven by growth in high-speed Internet and business services, despite a slight decline in video customers. Investments in the X1 platform and network infrastructure are key strategic priorities for this segment.
The NBCUniversal segments collectively saw revenue increase by 5.7% (excluding prior year major events) to $23.7 billionb, with notable growth in Theme Parks and Filmed Entertainment, alongside increased operating income. The company also continued its commitment to returning capital to shareholders through dividends and share repurchases.
02—Key points
Key Highlights
- Full acquisition of NBCUniversal for approximately $16.7 billion, consolidating its operations.
- Consolidated revenue increased 3.3% to $64.7 billion, with operating income up 11.4% to $13.6 billion.
- Cable Communications segment revenue grew 5.6% to $41.8 billion, supported by strong performance in high-speed Internet and business services.
- Significant capital expenditures of $5.4 billion in Cable Communications, focused on X1 platform deployment and network upgrades.
- NBCUniversal segments showed combined revenue growth of 5.7% (excluding major event impacts), driven by Theme Parks and Filmed Entertainment.
- Announced a 15% increase in quarterly dividend and continued share repurchase program.
- Investment in technology and service expansion across both Cable Communications (X1 platform, wireless gateways) and NBCUniversal (new theme park attractions, programming).
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2013filed February 12, 2014Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $64.66B$62.57B | +3.3% |
| Operating Expenses | $51.09B$50.39B | +1.4% |
| Operating Income | $13.56B$12.18B | +11.4% |
| Interest Expense | $2.57B$2.52B | +2.1% |
| Net Income | $6.82B$6.20B | +9.9% |
| EPS (Basic) | $1.30$1.16 | +12.1% |
| EPS (Diluted) | $1.28$1.14 | +12.3% |
| Shares Outstanding (Basic) | 5.25B5.36B | −2.0% |
| Shares Outstanding (Diluted) | 5.33B5.43B | −1.9% |
05—Questions
Frequently Asked Questions
What was the most significant strategic development for Comcast in 2013?
The most significant strategic development was the completion of the acquisition of GE's remaining 49% stake in NBCUniversal for approximately $16.7 billion in March 2013. This move brought the entirety of NBCUniversal's media and entertainment assets under Comcast's full ownership and control.
How did the Cable Communications segment perform in 2013?
The Cable Communications segment demonstrated solid growth, with revenue increasing by 5.6% to $41.8 billion. This growth was primarily driven by strong performance in High-Speed Internet, which saw a 8.3% revenue increase, and Business Services, which grew by 26.4%. While video revenue saw a modest 2.9% increase, the company experienced a slight decrease in total residential video customers due to competitive pressures, a trend it anticipates may continue.
What are Comcast's key investments and future growth areas identified in this report?
Comcast is heavily investing in its IP and cloud-enabled video platform, the X1 platform, and the deployment of wireless gateways, which drove a 9.8% increase in capital expenditures for the Cable Communications segment. For NBCUniversal, investments continue in original programming, sports rights, and new attractions at its theme parks. The company also plans to continue returning capital to shareholders through increased dividends and share repurchases.
How did the NBCUniversal segments perform overall?
The NBCUniversal segments collectively showed strong performance, with revenue increasing by 5.7% to $23.7 billion (when excluding the impact of major 2012 events like the Super Bowl and London Olympics). Operating income before depreciation and amortization for these segments grew by 15.2% to $4.7 billion, indicating improved profitability. Filmed Entertainment and Theme Parks were notable growth areas within NBCUniversal.
06—Continue