01—Abstract
Summary
Summary of the 10-Q filed November 4, 2009. Cited figures are marked; the original filing is the authoritative source.
Comcast Corporation's third-quarter 2009 report (filed November 3, 2009) shows continued revenue growth driven by its core Cable segment, which benefited from strong performance in high-speed Internet and phone services.
While video revenue saw a slight increase due to rate adjustments and digital upgrades, the company experienced a net decline in video subscribers, a trend attributed to increased competition and economic weakness. Overall consolidated revenue for the first nine months of 2009 increased by 4.3% to $26.6 billiona, with operating income rising 8.5% to $5.4 billion, demonstrating operational efficiency and revenue growth. Financially, Comcast reported a healthy increase in net income attributable to the corporation, rising 22.5% for the quarter and 25.7% for the nine-month period.
The company also managed its debt effectively, reducing its overall debt through scheduled maturities and a successful cash tender offer, while maintaining significant availability under its credit facilities. Comcast continued to return capital to shareholders through dividends and share repurchases, underscoring its commitment to shareholder value despite ongoing economic challenges.
02—Key points
Key Highlights
- Consolidated revenue increased by 4.3% to $26.6 billion for the first nine months of 2009, with the Cable segment driving this growth.
- Net income attributable to Comcast Corporation grew significantly, up 22.5% for the quarter and 25.7% for the nine-month period, reflecting improved profitability.
- The company saw strong customer additions in high-speed Internet (755,000 for nine months) and digital phone (906,000 for nine months), partially offsetting a net decrease in video subscribers (-424,000 for nine months).
- Comcast actively managed its debt, reducing outstanding balances through scheduled maturities and a $1.3 billion cash tender offer, while maintaining substantial liquidity.
- Capital expenditures were reduced by 11.0% to $3.4 billion for the nine-month period, indicating a focus on operational efficiency and disciplined investment.
- The company returned capital to shareholders through $0.20 in dividends declared per common share for the nine-month period and repurchased approximately 31.6 million shares for $465 million.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2009filed November 4, 2009Financial Statements
Q3 FY2009 against Q3 FY2008
| Line item | Q3 FY2009Q3 FY2008 | Change |
|---|---|---|
| Revenue | $8.85B$8.55B | +3.5% |
| SG&A Expenses | $1.99B$1.97B | +1.1% |
| Operating Expenses | $7.13B$6.88B | +3.7% |
| Operating Income | $1.71B$1.67B | +2.5% |
| Interest Expense | $707.00M$601.00M | +17.6% |
| Net Income | $944.00M$771.00M | +22.4% |
| EPS (Basic) | $0.17$0.13 | +26.9% |
| EPS (Diluted) | $0.17$0.13 | +26.9% |
| Shares Outstanding (Basic) | 5.74B— | — |
| Shares Outstanding (Diluted) | 5.75B— | — |
05—Questions
Frequently Asked Questions
What were the main drivers of revenue growth for Comcast in this period?
Revenue growth was primarily driven by the Cable segment, with strong performance in high-speed Internet and phone services. Rate adjustments and customer upgrades to digital video also contributed positively, though a net decline in video subscribers was observed.
How did Comcast manage its debt and liquidity position?
Comcast reduced its overall debt through scheduled maturities and a significant cash tender offer that repurchased $1.3 billion in notes. The company maintained substantial liquidity, with approximately $6.2 billion available under its credit facilities as of September 30, 2009.
What is the outlook for video subscribers given increased competition and economic conditions?
The company expects continued declines in video subscribers due to increased competition and weak economic conditions, despite efforts to retain customers through rate adjustments and digital upgrades.
Did Comcast repurchase shares during this period?
Yes, Comcast repurchased approximately 31.6 million shares of its Class A and Class A Special common stock for approximately $465 million during the nine months ended September 30, 2009. The company had approximately $3.6 billion of availability remaining under its share repurchase authorization as of that date.
06—Continue