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 Highlights

50 data points
Beta

Revenue

$14.34B

Net Income

$908.00M

6.3% Net Margin

EPS (Diluted)

$0.17

Total Assets

$156.83B

Cash & Equivalents

$1.81B

Free Cash Flow

$1.84B

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.

Frequently Asked Questions

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.

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.

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.

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.