10-QPeriod: Q3 FY2008

COMCAST CORP Quarterly Report for Q3 Ended Sep 30, 2008

Filed October 29, 2008For Securities:CMCSACCZ

Summary

Comcast Corporation (CMCSA) reported its third-quarter and year-to-date results for the period ending September 30, 2008. The company demonstrated revenue growth driven by its Cable segment, which benefited from subscriber increases in video, high-speed internet, and phone services, as well as strategic acquisitions like the Insight transaction. Despite an increase in operating expenses, driven by subscriber growth and acquisitions, operating income saw a significant rise, reflecting strong performance in both the Cable and Programming segments. The company also continued its share repurchase program, returning capital to shareholders, although the pace may be adjusted due to market conditions. Overall, Comcast showcased resilience and growth in a challenging economic environment, with a focus on expanding its service offerings and subscriber base.

Financial Highlights

26 data points
Beta

Revenue

$8.55B

Net Income

$771.00M

9.0% Net Margin

EPS (Diluted)

$0.13

Cash & Equivalents

$2.71B

Free Cash Flow

$1.14B

Financial Statements
Beta
Revenue$8.55B
SG&A Expenses$1.97B
Operating Expenses$6.88B
Operating Income$1.67B
Interest Expense$601.00M
Net Income$771.00M
EPS (Basic)$0.13
EPS (Diluted)$0.13

Key Highlights

  • 1Consolidated revenue increased by 11.4% to $25.5 billion for the nine months ended September 30, 2008, compared to the prior year, driven by growth in the Cable segment.
  • 2Cable segment revenue grew 11.1% to $24.1 billion for the same period, fueled by subscriber growth in video, high-speed internet, and phone services, alongside acquisitions.
  • 3Operating income increased by 20.8% to $5.0 billion for the nine months ended September 30, 2008, demonstrating operational efficiency and revenue growth.
  • 4Comcast repurchased approximately 141 million shares for $2.8 billion during the nine months ended September 30, 2008, as part of its ongoing commitment to return capital to shareholders.
  • 5The company completed the acquisition of cable systems serving approximately 696,000 video subscribers in Illinois and Indiana through the Insight transaction in January 2008.
  • 6Despite market turmoil, the company maintained significant liquidity, with approximately $5.2 billion in remaining availability under its credit facilities as of September 30, 2008.
  • 7The Programming segment showed revenue growth of 11.4% to $1.1 billion for the nine months ended September 30, 2008, with improved margins.

Frequently Asked Questions

Revenue growth was primarily driven by the Cable segment, which saw an increase in subscribers for video, high-speed internet, and phone services. Acquisitions, such as the Insight transaction, also contributed to the revenue increase. The Programming segment also showed growth.

Comcast is utilizing its strong cash flow from operations, existing cash reserves, and available credit facilities to meet its liquidity and capital requirements. The company repurchased shares and paid dividends, while also maintaining significant availability under its credit facilities, which stood at approximately $5.2 billion as of September 30, 2008.

Comcast faces competition across its services, potential impacts from technological advancements and regulatory changes, increasing programming expenses, and risks associated with economic downturns that could reduce subscriber spending. The company also noted ongoing litigation matters and risks associated with acquisitions.

The Insight transaction, completed in January 2008, involved the acquisition of cable systems serving approximately 696,000 video subscribers. This acquisition contributed to the growth in Comcast's Cable segment revenue and operating expenses due to the addition of these new subscribers and related costs.