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10-QPeriod: Q3 FY2011

COMCAST CORP Quarterly Report for Q3 Ended Sep 30, 2011

Filed November 2, 2011For Securities:CMCSACCZ

Summary

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% 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 million, 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.

Financial Statements
Beta
Revenue$14.34B
Operating Expenses$11.70B
Operating Income$2.64B
Interest Expense$637.00M
Net Income$908.00M
EPS (Basic)$0.17
EPS (Diluted)$0.17
Shares Outstanding (Basic)5.48B
Shares Outstanding (Diluted)5.52B

Key Highlights

  • 1Revenue surged by 51.1% in Q3 2011 and 44.6% for the first nine months of 2011, primarily due to the integration of NBCUniversal.
  • 2Net 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.
  • 3Cable Communications segment revenue grew by 5.0% in Q3 and 5.5% year-to-date, demonstrating continued strength in its core business.
  • 4High-speed Internet customers increased by 823,000 and Phone customers by 586,000 year-to-date, while Video customers decreased by 443,000.
  • 5Significant 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.
  • 6Comcast continued its share repurchase program, buying back approximately 73 million shares for $1.7 billion during the first nine months of 2011.
  • 7Interest expense increased significantly due to the debt assumed from the NBCUniversal acquisition.

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