10-QPeriod: Q1 FY2009

COMCAST CORP Quarterly Report for Q1 Ended Mar 31, 2009

Filed April 30, 2009For Securities:CMCSACCZ

Summary

Comcast Corporation's Q1 2009 filing shows a 5.3% increase in consolidated revenue to $8.8 billion and a 16.5% increase in operating income to $1.8 billion, demonstrating resilience amidst economic headwinds. The core Cable segment, representing 95% of revenue, saw a 5.5% revenue increase, driven by growth in high-speed Internet and phone services, which more than offset a slight decline in video customers. The company also managed to reduce its operating expenses, contributing to improved profitability. Key financial metrics indicate strong operational execution. Net income attributable to Comcast Corporation rose by 5.5% to $772 million, with diluted EPS of $0.27, up from $0.24 in the prior year. Cash flow from operations improved by approximately 11.7% to $2.5 billion, providing ample liquidity. While capital expenditures decreased by 16.6% in the Cable segment, the company maintained its focus on strategic investments and returning capital to shareholders through dividends. Despite potential litigation risks and ongoing competition, Comcast appears financially sound and operationally robust.

Financial Highlights

25 data points
Beta

Revenue

$8.87B

Net Income

$772.00M

8.7% Net Margin

EPS (Diluted)

$0.14

Cash & Equivalents

$1.88B

Free Cash Flow

$1.35B

Financial Statements
Beta
Revenue$8.87B
SG&A Expenses$1.83B
Operating Expenses$7.05B
Operating Income$1.81B
Interest Expense$570.00M
Net Income$772.00M
EPS (Basic)$0.14
EPS (Diluted)$0.14

Key Highlights

  • 1Consolidated revenue increased by 5.3% to $8.8 billion.
  • 2Consolidated operating income increased by 16.5% to $1.8 billion.
  • 3Net income attributable to Comcast Corporation grew by 5.5% to $772 million.
  • 4Diluted EPS improved to $0.27 from $0.24 in the prior year.
  • 5Cash flow from operating activities increased by 11.7% to $2.5 billion.
  • 6Cable segment revenue grew by 5.5%, driven by high-speed Internet and phone services.
  • 7Capital expenditures in the Cable segment decreased by 16.6%.

Frequently Asked Questions

Comcast reported a 5.3% increase in consolidated revenue to $8.8 billion for the three months ended March 31, 2009. The primary driver was the Cable segment, which accounts for about 95% of revenue, showing a 5.5% increase, largely due to growth in high-speed Internet and phone services, alongside rate adjustments for video services. Advertising revenue in the Cable segment experienced a notable decrease.

Profitability improved significantly. Consolidated operating income rose by 16.5% to $1.8 billion. Net income attributable to Comcast Corporation increased by 5.5% to $772 million, resulting in diluted earnings per share (EPS) of $0.27, up from $0.24 in the prior year's comparable period. This improvement was supported by revenue growth and effective management of operating expenses.

Comcast generated strong operating cash flow, with net cash provided by operating activities increasing by 11.7% to $2.5 billion. The company used this cash for various purposes, including debt repurchases and repayments ($352 million), dividend payments ($180 million), and capital expenditures, which were reduced in the Cable segment by 16.6% to approximately $1.1 billion. The company anticipates continuing to use cash for capital expenditures, business investments, debt obligations, and shareholder returns.

Comcast is involved in several ongoing legal proceedings, including antitrust cases, ERISA litigation, and patent infringement lawsuits. While the company believes these claims are without merit and intends to defend them vigorously, it acknowledges that the final disposition of these actions is not expected to have a material adverse effect on its consolidated financial position, but could possibly be material to its consolidated results of operations or cash flows for any one period. No significant changes to risk factors were noted compared to the prior year's annual report.