01—Abstract
Summary
Summary of the 10-K filed February 3, 2017. Cited figures are marked; the original filing is the authoritative source.
Comcast Corporation reported strong financial performance for the fiscal year ending December 31, 2016, with significant revenue growth driven by its Cable Communications and NBCUniversal segments.
The Cable Communications segment saw a 6.6%a increase in revenue, largely due to strong performance in high-speed Internet, video, and business services. NBCUniversal also experienced robust growth, with revenue up 11.0%, boosted by the broadcast of the Rio Olympics and the acquisition of DreamWorks Animation. The company demonstrated effective cost management and delivered solid operating income, reflecting its diversified business model and strategic investments.
Comcast's balance sheet remained strong, with substantial assets and equity, supported by healthy cash flow from operations. The company continued its commitment to returning capital to shareholders through share repurchases and dividend payments, signaling confidence in its future financial health. Key strategic initiatives, including the ongoing deployment of the X1 platform and investments in technology and infrastructure, are positioned to support continued growth and competitive positioning in the evolving media and technology landscape.
02—Key points
Key Highlights
- Total revenue increased by 7.9% to $80.4 billion in 2016.
- Cable Communications segment revenue grew by 6.6% to $50.0 billion, driven by high-speed Internet and business services.
- NBCUniversal segment revenue increased by 11.0% to $31.6 billion, aided by the Rio Olympics broadcast and the acquisition of DreamWorks Animation.
- Operating income grew by 5.4% to $16.9 billion.
- Net income attributable to Comcast Corporation increased by 6.5% to $8.7 billion.
- The company repurchased approximately $5.0 billion of its Class A common stock in 2016 and paid $2.7 billion in dividends.
- Capital expenditures were $9.6 billion, reflecting ongoing investments in network infrastructure and technology.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2016filed February 3, 2017Financial Statements
FY2016 against FY2015
| Line item | FY2016FY2015 | Change |
|---|---|---|
| Revenue | $80.74B$74.51B | +8.4% |
| Operating Expenses | $63.91B$58.51B | +9.2% |
| Operating Income | $16.83B$16.00B | +5.2% |
| Interest Expense | $2.94B$2.70B | +8.9% |
| Net Income | $8.68B$8.16B | +6.3% |
| EPS (Basic) | $1.80$1.64 | +9.8% |
| EPS (Diluted) | $1.78$1.62 | +9.9% |
| Shares Outstanding (Basic) | 4.82B4.97B | −3.1% |
| Shares Outstanding (Diluted) | 4.88B5.04B | −3.2% |
05—Questions
Frequently Asked Questions
What were the main drivers of Comcast's revenue growth in 2016?
Comcast's revenue growth in 2016 was primarily driven by its Cable Communications segment, which saw strong performance in high-speed Internet, video, and business services. The NBCUniversal segment also contributed significantly, benefiting from the broadcast of the 2016 Rio Olympics and the acquisition of DreamWorks Animation.
How did the acquisition of DreamWorks Animation impact Comcast's financial results?
Comcast acquired DreamWorks Animation in August 2016 for $3.8 billion. While the acquisition was still being integrated and its financial impact was preliminary at year-end, it contributed to the Filmed Entertainment segment's performance and the overall NBCUniversal revenue growth.
What is Comcast's strategy for returning capital to shareholders?
Comcast demonstrated a commitment to returning capital to shareholders through share repurchases and dividend payments. In 2016, the company repurchased approximately $5.0 billion of its Class A common stock and paid $2.7 billion in dividends. The Board of Directors also approved a significant increase in the share repurchase program authorization.
How is Comcast investing in its future growth and competitiveness?
Comcast is investing heavily in its future through capital expenditures focused on enhancing its cable network infrastructure, deploying advanced technologies like the X1 platform and cloud DVR, expanding business services, and developing new attractions for its theme parks. These investments are aimed at improving customer experience and maintaining a competitive edge.
06—Continue