10-KPeriod: FY2013

COMCAST CORP Annual Report, Year Ended Dec 31, 2013

Filed February 12, 2014For Securities:CMCSACCZ

Summary

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 billion 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 billion, 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.

Financial Highlights

52 data points
Beta

Revenue

$64.66B

Net Income

$6.82B

10.5% Net Margin

EPS (Diluted)

$1.28

Total Assets

$158.81B

Cash & Equivalents

$1.72B

Free Cash Flow

$7.56B

Financial Statements
Beta
Revenue$64.66B
Operating Expenses$51.09B
Operating Income$13.56B
Interest Expense$2.57B
Net Income$6.82B
EPS (Basic)$1.30
EPS (Diluted)$1.28
Shares Outstanding (Basic)5.25B
Shares Outstanding (Diluted)5.33B

Key Highlights

  • 1Full acquisition of NBCUniversal for approximately $16.7 billion, consolidating its operations.
  • 2Consolidated revenue increased 3.3% to $64.7 billion, with operating income up 11.4% to $13.6 billion.
  • 3Cable Communications segment revenue grew 5.6% to $41.8 billion, supported by strong performance in high-speed Internet and business services.
  • 4Significant capital expenditures of $5.4 billion in Cable Communications, focused on X1 platform deployment and network upgrades.
  • 5NBCUniversal segments showed combined revenue growth of 5.7% (excluding major event impacts), driven by Theme Parks and Filmed Entertainment.
  • 6Announced a 15% increase in quarterly dividend and continued share repurchase program.
  • 7Investment in technology and service expansion across both Cable Communications (X1 platform, wireless gateways) and NBCUniversal (new theme park attractions, programming).

Frequently Asked Questions

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.

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.

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.

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.