01—Abstract
Summary
Summary of the 10-Q filed November 2, 2011. Cited figures are marked; the original filing is the authoritative source.
Comcast Corporation's Q3 2011 filing shows significant growth driven by the acquisition of NBCUniversal, which closed in January 2011.
Revenue increased by 51.1%a for the quarter and 44.6% for the nine months ended September 30, 2011, largely due to the integration of NBCUniversal's businesses. While the Cable Communications segment continues to perform steadily, with revenue up 5.0% for the quarter and 5.5% for the nine months, the substantial contribution from NBCUniversal has reshaped the company's financial profile. Despite the revenue surge, operating costs and expenses also rose significantly (65.2% quarterly, 57.8% year-to-date), largely attributable to the inclusion of NBCUniversal's operations and associated amortization expenses.
Net income attributable to Comcast Corporation saw a more modest increase of 4.7% for the quarter, reaching $908 millionb, and 9.8% year-to-date, reaching $2.87 billion. This highlights the impact of increased operating costs and interest expenses associated with the acquisition. The company continues its share repurchase program and dividend payments, indicating a focus on returning value to shareholders.
02—Key points
Key Highlights
- Revenue surged by 51.1% in Q3 2011 and 44.6% for the first nine months of 2011, primarily due to the integration of NBCUniversal.
- Net income attributable to Comcast Corporation increased by 4.7% in Q3 2011 to $908 million and by 9.8% year-to-date to $2.87 billion.
- Cable Communications segment revenue grew by 5.0% in Q3 and 5.5% year-to-date, demonstrating continued strength in its core business.
- High-speed Internet customers increased by 823,000 and Phone customers by 586,000 year-to-date, while Video customers decreased by 443,000.
- Significant increases in operating costs and expenses (65.2% in Q3, 57.8% year-to-date) were driven by the inclusion of NBCUniversal operations and associated amortization.
- Comcast continued its share repurchase program, buying back approximately 73 million shares for $1.7 billion during the first nine months of 2011.
- Interest expense increased significantly due to the debt assumed from the NBCUniversal acquisition.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2011filed November 2, 2011Financial Statements
Q3 FY2011 against Q3 FY2010
| Line item | Q3 FY2011Q3 FY2010 | Change |
|---|---|---|
| Revenue | $14.34B$9.49B | +51.1% |
| Operating Expenses | $11.70B$7.54B | +55.2% |
| Operating Income | $2.64B$1.95B | +35.2% |
| Interest Expense | $637.00M$545.00M | +16.9% |
| Net Income | $908.00M$867.00M | +4.7% |
| EPS (Basic) | $0.17$0.15 | +6.5% |
| EPS (Diluted) | $0.17$0.15 | +6.5% |
| Shares Outstanding (Basic) | 5.48B5.60B | −2.2% |
| Shares Outstanding (Diluted) | 5.52B5.62B | −1.7% |
05—Questions
Frequently Asked Questions
How did the acquisition of NBCUniversal impact Comcast's financial results?
The acquisition of NBCUniversal, which closed on January 28, 2011, significantly impacted Comcast's financial results. It led to a substantial increase in revenue (51.1% in Q3 and 44.6% year-to-date) due to the inclusion of NBCUniversal's businesses. However, it also resulted in higher operating costs, depreciation, amortization, and interest expenses, which moderated the growth in net income attributable to Comcast Corporation.
What is the performance of Comcast's Cable Communications segment?
The Cable Communications segment continues to be a strong performer, with revenue increasing by 5.0% in Q3 and 5.5% year-to-date. The segment saw growth in High-speed Internet and Phone customers, adding 823,000 and 586,000 subscribers respectively year-to-date, although it experienced a decrease of 443,000 Video customers.
What is the outlook for Comcast's debt and liquidity?
Comcast's debt increased due to the NBCUniversal acquisition, leading to higher interest expenses. However, the company generates significant cash flow from operations and has substantial availability under its credit facilities. Management believes it can meet its current and long-term liquidity and capital requirements, including debt obligations and capital expenditures.
How is Comcast managing its share repurchase and dividend programs?
Comcast repurchased approximately 73 million shares of its Class A Special common stock for $1.7 billion during the first nine months of 2011 and intends to complete its current share repurchase authorization by the end of 2011. The company also continued to pay quarterly dividends, with a planned annual dividend of $0.45 per share.
06—Continue