10-QPeriod: Q1 FY2010

COMCAST CORP Quarterly Report for Q1 Ended Mar 31, 2010

Filed April 28, 2010For Securities:CMCSACCZ

Summary

Comcast Corporation reported a strong first quarter for 2010, with consolidated revenue increasing by 3.8% to $9.2 billion and operating income rising by 6.8% to $1.9 billion. This growth was primarily driven by its Cable segment, which saw a 3.5% revenue increase to $8.7 billion, and its Programming segment, with a 6.7% revenue increase to $385 million. The company added a significant number of high-speed Internet (399,000) and phone (273,000) customers, though video customer count saw a slight decline of 82,000, attributed to competition and economic conditions. Comcast also announced a significant transaction to form a new company with General Electric's NBC Universal, which is expected to close by the end of 2010, subject to regulatory approvals. Financially, the company demonstrated robust cash flow from operations, totaling $2.9 billion. It also executed a $300 million share repurchase program and continued its dividend payments. The balance sheet shows total assets of $115.4 billion and total liabilities and equity of $115.4 billion as of March 31, 2010. The company's liquidity remains strong with $6.4 billion available under its credit facilities.

Financial Highlights

49 data points
Beta

Revenue

$9.20B

Net Income

$866.00M

9.4% Net Margin

EPS (Diluted)

$0.15

Total Assets

$115.42B

Cash & Equivalents

$3.48B

Free Cash Flow

$1.98B

Financial Statements
Beta
Revenue$9.20B
SG&A Expenses$1.91B
Operating Expenses$7.27B
Operating Income$1.94B
Interest Expense$524.00M
Net Income$866.00M
EPS (Basic)$0.15
EPS (Diluted)$0.15
Shares Outstanding (Basic)5.66B
Shares Outstanding (Diluted)5.67B

Key Highlights

  • 1Consolidated revenue increased 3.8% to $9.2 billion, and operating income grew 6.8% to $1.9 billion.
  • 2Cable segment revenue rose 3.5% to $8.7 billion, driven by strong growth in High-speed Internet and Phone customer additions.
  • 3Programming segment revenue increased 6.7% to $385 million.
  • 4Net income attributable to Comcast Corporation increased 12.2% to $866 million, resulting in diluted EPS of $0.31, up from $0.27 in the prior year.
  • 5Comcast is proceeding with its significant transaction to form a new company with General Electric's NBC Universal, expected to close by year-end 2010.
  • 6Operating cash flow remained strong at $2.9 billion for the quarter.
  • 7The company repurchased $300 million of its Class A Special common stock and maintained its dividend payments.

Frequently Asked Questions

Comcast's revenue growth in the first quarter of 2010 was primarily driven by its Cable segment, which benefited from a 3.5% increase in revenue due to strong additions in high-speed Internet and phone customers. The Programming segment also contributed with a 6.7% revenue increase. Overall consolidated revenue grew by 3.8%.

Comcast entered into agreements with General Electric in December 2009 to form a new company where Comcast will own 51% and control. The transaction involves the contribution of NBC Universal's businesses and certain Comcast assets. It is subject to regulatory approvals and is expected to close by the end of 2010.

Comcast added 399,000 high-speed Internet customers and 273,000 phone customers. However, the company experienced a net decrease of 82,000 video customers, which it attributed to increased competition and economic weakness.

Comcast demonstrated strong financial health with $2.9 billion in net cash provided by operating activities for the quarter. The company also reported $3.48 billion in cash and cash equivalents and had approximately $6.4 billion available under its credit facilities as of March 31, 2010, indicating solid liquidity.