01—Abstract
Summary
Summary of the 10-Q filed August 6, 2009. Cited figures are marked; the original filing is the authoritative source.
Comcast Corporation's (CMCSA) 10-Q filing for the period ending June 30, 2009, reveals a company demonstrating revenue growth and improved profitability despite a challenging economic environment.
Consolidated revenue increased by 4.9% year-over-year to $17.8 billiona, driven by a 5.1% rise in the Cable segment, which accounts for the vast majority of the company's revenue. This growth was primarily fueled by strong performance in High-Speed Internet and Phone services, which saw significant customer additions and revenue increases, partially offsetting a decline in video customers. Net income attributable to Comcast Corporation saw a substantial increase of 27.5% to $1.74 billion for the six-month period.
This was supported by improved operating income and a decrease in interest expense. The company also highlighted effective management of operating expenses and capital expenditures, with a 14.2% reduction in Cable segment capital expenditures. Comcast also actively managed its debt, initiating a tender offer to repurchase $1.3 billionb in notes, demonstrating a focus on financial flexibility and debt management.
02—Key points
Key Highlights
- Consolidated revenue increased by 4.9% to $17.8 billion for the six months ended June 30, 2009.
- Net income attributable to Comcast Corporation grew by 27.5% to $1.74 billion for the six months ended June 30, 2009.
- Cable segment revenue increased by 5.1% to $16.8 billion, driven by strong growth in High-Speed Internet and Phone services.
- High-speed Internet customers increased by 393,000 and phone customers by 531,000 in the first six months of 2009.
- Video customers declined by 292,000 over the same period, though revenue from video services increased due to rate adjustments and upgrades.
- Capital expenditures in the Cable segment were reduced by 14.2% to $2.2 billion.
- The company initiated a tender offer to repurchase $1.3 billion of its outstanding notes.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2009filed August 6, 2009Financial Statements
Q2 FY2009 against Q2 FY2008
| Line item | Q2 FY2009Q2 FY2008 | Change |
|---|---|---|
| Revenue | $8.98B$8.55B | +5.0% |
| SG&A Expenses | $1.86B$1.87B | −0.3% |
| Operating Expenses | $7.10B$6.80B | +4.4% |
| Operating Income | $1.88B$1.75B | +7.1% |
| Interest Expense | $551.00M$618.00M | −10.8% |
| Net Income | $967.00M$632.00M | +53.0% |
| EPS (Basic) | $0.17$0.10 | +57.1% |
| EPS (Diluted) | $0.17$0.10 | +57.1% |
| Shares Outstanding (Diluted) | 5.78B— | — |
05—Questions
Frequently Asked Questions
What drove the revenue growth for Comcast in the first half of 2009?
Revenue growth was primarily driven by the Cable segment, which saw a 5.1% increase. This was largely due to significant customer additions and revenue growth in High-Speed Internet and Phone services, which more than offset a slight decline in video customers. Advertising revenue in the Cable segment also experienced a decrease.
How did Comcast manage its debt during this period?
Comcast actively managed its debt by issuing new debt and repurchasing existing notes. In June 2009, they issued $700 million in 5.70% notes due 2019 and $800 million in 6.55% notes due 2039. They also initiated a cash tender offer to repurchase up to $1.3 billion of their outstanding notes, which settled in July 2009. Additionally, interest expense decreased due to lower interest rates and debt repayments.
What is the trend in Comcast's video customer base?
The number of video customers has been declining. For the six months ended June 30, 2009, video customers decreased by approximately 292,000. However, the company was able to increase video revenue through rate adjustments and a higher percentage of customers upgrading to digital and advanced services.
Did Comcast experience any significant legal challenges during this period?
Yes, Comcast is involved in several legal proceedings, including antitrust cases, ERISA litigation, and patent litigation. While the company believes these claims are without merit and intends to defend them vigorously, they acknowledge that the ultimate disposition of these actions could be material to their results of operations or cash flows for any one period, though not expected to materially adversely affect their consolidated financial position.
06—Continue