10-QPeriod: Q2 FY2010

COMCAST CORP Quarterly Report for Q2 Ended Jun 30, 2010

Filed July 28, 2010For Securities:CMCSACCZ

Summary

Comcast Corporation's Q2 2010 filing shows a 6.1% increase in revenue to $9.5 billion for the quarter and a 4.9% increase to $18.7 billion for the first six months, driven primarily by its Cable and Programming segments. The company added significant numbers of high-speed Internet and phone customers, but saw a decline in video subscribers, indicating a shift in its customer base towards broadband and voice services. Operating income saw a healthy increase, reflecting effective cost management. The most significant development is the pending acquisition of NBC Universal from General Electric. This transformative deal, expected to close by the end of 2010, will significantly expand Comcast's content and media offerings. The company is also actively returning capital to shareholders through share repurchases and dividend payments, demonstrating a commitment to shareholder value.

Financial Highlights

51 data points
Beta

Revenue

$9.53B

Net Income

$884.00M

9.3% Net Margin

EPS (Diluted)

$0.15

Total Assets

$115.63B

Cash & Equivalents

$4.03B

Free Cash Flow

$1.29B

Financial Statements
Beta
Revenue$9.53B
SG&A Expenses$1.96B
Operating Expenses$7.45B
Operating Income$2.08B
Interest Expense$543.00M
Net Income$884.00M
EPS (Basic)$0.15
EPS (Diluted)$0.15
Shares Outstanding (Basic)5.63B
Shares Outstanding (Diluted)5.64B

Key Highlights

  • 1Total revenue increased by 6.1% year-over-year to $9.5 billion for the quarter and 4.9% to $18.7 billion for the first six months.
  • 2High-speed Internet and phone customer additions remain strong, with significant growth in both categories for the period.
  • 3Video customer base declined by 347,000 for the first six months, signaling a shift from traditional video services.
  • 4Operating income increased by 10.9% for the quarter and 8.9% for the six-month period, indicating improved profitability.
  • 5Comcast is in the process of acquiring NBC Universal from GE, a significant strategic move expected to close by year-end 2010.
  • 6The company repurchased $600 million of its Class A Special common stock and paid $535 million in dividends during the first six months.
  • 7Cable segment revenue grew 5.1% for the quarter and 4.3% for the six months, driven by broadband and phone services.

Frequently Asked Questions

Comcast entered into agreements with General Electric in December 2009 to acquire NBC Universal. The transaction, which is subject to regulatory approvals, is expected to close by the end of 2010. This acquisition will significantly expand Comcast's content portfolio by integrating NBC Universal's cable and broadcast networks, filmed entertainment, and theme parks. Comcast will own 51% and control of the new company, with GE owning the remaining 49%. The results of NBC Universal will be consolidated into Comcast's financials upon closing.

Comcast experienced a decline in video subscribers, losing 347,000 in the first six months of 2010. However, this was offset by strong growth in high-speed Internet (adding 517,000 customers) and phone services (adding 503,000 customers). This indicates a strategic shift in the company's customer base towards broadband and voice services, with 83% of video customers now subscribing to digital services.

Comcast reported a 6.1% increase in revenue to $9.5 billion for the second quarter of 2010 and a 4.9% increase to $18.7 billion for the first six months. Operating income also showed strong growth, up 10.9% to $2.1 billion for the quarter and 8.9% to $4.0 billion for the six-month period. This growth is primarily attributed to increases in its Cable and Programming segments.

During the first six months of 2010, Comcast repurchased approximately 36.4 million shares of its Class A Special common stock for $600 million, with $2.7 billion remaining under its share repurchase authorization. The company also paid quarterly dividends totaling $535 million during this period and declared a planned annual dividend of $0.378 per share.