10-QPeriod: Q2 FY2009

COMCAST CORP Quarterly Report for Q2 Ended Jun 30, 2009

Filed August 6, 2009For Securities:CMCSACCZ

Summary

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 billion, 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 billion in notes, demonstrating a focus on financial flexibility and debt management.

Financial Highlights

48 data points
Beta

Revenue

$8.98B

Net Income

$967.00M

10.8% Net Margin

EPS (Diluted)

$0.17

Total Assets

$115.24B

Cash & Equivalents

$3.99B

Free Cash Flow

$1.48B

Financial Statements
Beta
Revenue$8.98B
SG&A Expenses$1.86B
Operating Expenses$7.10B
Operating Income$1.88B
Interest Expense$551.00M
Net Income$967.00M
EPS (Basic)$0.17
EPS (Diluted)$0.17
Shares Outstanding (Diluted)5.78B

Key Highlights

  • 1Consolidated revenue increased by 4.9% to $17.8 billion for the six months ended June 30, 2009.
  • 2Net income attributable to Comcast Corporation grew by 27.5% to $1.74 billion for the six months ended June 30, 2009.
  • 3Cable segment revenue increased by 5.1% to $16.8 billion, driven by strong growth in High-Speed Internet and Phone services.
  • 4High-speed Internet customers increased by 393,000 and phone customers by 531,000 in the first six months of 2009.
  • 5Video customers declined by 292,000 over the same period, though revenue from video services increased due to rate adjustments and upgrades.
  • 6Capital expenditures in the Cable segment were reduced by 14.2% to $2.2 billion.
  • 7The company initiated a tender offer to repurchase $1.3 billion of its outstanding notes.

Frequently Asked Questions

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.

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.

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.

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.