01—Abstract
Summary
Summary of the 10-Q filed April 28, 2010. Cited figures are marked; the original filing is the authoritative source.
Comcast Corporation reported a strong first quarter for 2010, with consolidated revenue increasing by 3.8% to $9.2 billiona 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 billionb, 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 billionc. It also executed a $300 million share repurchase program and continued its dividend payments.
The balance sheet shows total assets of $115.4 billiond 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.
02—Key points
Key Highlights
- Consolidated revenue increased 3.8% to $9.2 billion, and operating income grew 6.8% to $1.9 billion.
- Cable segment revenue rose 3.5% to $8.7 billion, driven by strong growth in High-speed Internet and Phone customer additions.
- Programming segment revenue increased 6.7% to $385 million.
- Net 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.
- Comcast is proceeding with its significant transaction to form a new company with General Electric's NBC Universal, expected to close by year-end 2010.
- Operating cash flow remained strong at $2.9 billion for the quarter.
- The company repurchased $300 million of its Class A Special common stock and maintained its dividend payments.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2010filed April 28, 2010Financial Statements
Q1 FY2010 against Q1 FY2009
| Line item | Q1 FY2010Q1 FY2009 | Change |
|---|---|---|
| Revenue | $9.20B$8.87B | +3.8% |
| SG&A Expenses | $1.91B$1.83B | +4.1% |
| Operating Expenses | $7.27B$7.05B | +3.0% |
| Operating Income | $1.94B$1.81B | +6.8% |
| Interest Expense | $524.00M$570.00M | −8.1% |
| Net Income | $866.00M$772.00M | +12.2% |
| EPS (Basic) | $0.15$0.14 | +14.8% |
| EPS (Diluted) | $0.15$0.14 | +14.8% |
| Shares Outstanding (Basic) | 5.66B— | — |
| Shares Outstanding (Diluted) | 5.67B— | — |
05—Questions
Frequently Asked Questions
What are the key drivers of Comcast's revenue growth in Q1 2010?
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%.
What is the status of the NBC Universal transaction?
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.
How did Comcast's customer base change in Q1 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.
What is Comcast's financial health like in terms of cash flow and liquidity?
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.
06—Continue