10-QPeriod: Q2 FY2008

COMCAST CORP Quarterly Report for Q2 Ended Jun 30, 2008

Filed July 30, 2008For Securities:CMCSACCZ

Summary

Comcast Corporation (CMCSA) reported its Q2 2008 financial results, showing a 10.9% year-over-year increase in revenue for the quarter to $8.55 billion and a 12.2% increase for the six-month period to $16.94 billion. This growth was primarily driven by the Cable segment, which saw a 10.5% revenue increase in the quarter and 11.8% for the six months, fueled by subscriber growth in video, high-speed internet, and phone services, as well as contributions from recent acquisitions like the Insight transaction. Net income for the quarter rose by 7.5% to $632 million, or $0.21 per diluted share, compared to the prior year. However, for the first six months of 2008, net income decreased by 4.3% to $1.36 billion, or $0.46 per diluted share, impacted by increased interest expenses and other income/expense fluctuations. The company also continued its focus on returning capital to shareholders, repurchasing approximately $2.0 billion of common stock during the first six months of 2008 and initiating quarterly dividends.

Financial Highlights

25 data points
Beta

Revenue

$8.55B

Net Income

$632.00M

7.4% Net Margin

EPS (Diluted)

$0.10

Cash & Equivalents

$1.77B

Free Cash Flow

$2.20B

Financial Statements
Beta
Revenue$8.55B
SG&A Expenses$1.87B
Operating Expenses$6.80B
Operating Income$1.75B
Interest Expense$618.00M
Net Income$632.00M
EPS (Basic)$0.10
EPS (Diluted)$0.10

Key Highlights

  • 1Consolidated revenue grew by 10.9% to $8.55 billion for the quarter and 12.2% to $16.94 billion for the six months, demonstrating strong top-line performance.
  • 2Cable segment revenue increased by 10.5% for the quarter and 11.8% for the six months, driven by subscriber growth in video (67% of video subscribers had digital services), high-speed internet, and phone services.
  • 3Net income for the quarter increased by 7.5% to $632 million, reflecting improved operational performance.
  • 4Despite revenue growth, net income for the six-month period decreased by 4.3% to $1.36 billion, impacted by higher interest expenses and other income/expense items.
  • 5Comcast repurchased approximately $2.0 billion of its common stock during the first six months of 2008, underscoring a commitment to returning capital to shareholders.
  • 6The company is making significant investments in capital expenditures ($2.7 billion in the first six months) and has a substantial share repurchase authorization remaining.
  • 7Comcast is involved in various ongoing legal proceedings, including antitrust and securities litigation, which are being vigorously defended, with the company not expecting a material adverse effect on its consolidated financial position.

Frequently Asked Questions

Comcast's revenue growth was primarily driven by its Cable segment, which saw increases in video, high-speed Internet, and phone service revenue. Subscriber growth, especially in digital video and high-speed internet, along with the inclusion of recently acquired cable systems from the Insight transaction, contributed significantly to the revenue increase.

For the second quarter of 2008, Comcast's net income increased by 7.5% to $632 million. However, for the first six months of 2008, net income decreased by 4.3% to $1.36 billion compared to the same period in 2007. This decline was influenced by a significant increase in interest expenses and fluctuations in other income (expense) items.

Comcast is using a substantial portion of its cash flow to fund capital expenditures, invest in business opportunities, and return capital to shareholders. This includes significant stock repurchases (approximately $2.0 billion in the first six months of 2008) and the initiation of quarterly dividends.

Comcast is involved in several legal proceedings, including antitrust cases related to subscriber exchanges and channel bundling, and securities litigation concerning alleged misstatements and omissions. The company is also facing patent litigation. While Comcast believes these claims are without merit and intends to defend them vigorously, it's important to note that while the final disposition is not expected to materially affect its consolidated financial position, it could potentially impact consolidated results of operations or cash flows for any one period.