01—Abstract
Summary
Summary of the 10-Q filed May 1, 2013. Cited figures are marked; the original filing is the authoritative source.
Comcast Corporation's (CMCSA) first quarter 2013 report highlights a significant strategic move with the acquisition of GE's remaining 49% stake in NBCUniversal for approximately $16.7 billiona.
This transaction, completed in March 2013, consolidates full control of NBCUniversal under Comcast, impacting the company's balance sheet significantly with increased long-term debt and a substantial increase in goodwill. Financially, revenue saw a modest increase driven by strong performance in Cable Communications and Theme Parks, partially offset by a decline in Broadcast Television revenue, largely due to the absence of the previous year's Super Bowl broadcast. Operational highlights include continued growth in high-speed Internet and voice customer additions in the Cable Communications segment, alongside a slight decline in video customers.
NBCUniversal's segments showed mixed results, with Cable Networks and Theme Parks demonstrating robust revenue growth, while Filmed Entertainment experienced a slight increase. The company maintained strong operating cash flow, although net cash used in investing activities surged due to the NBCUniversal acquisition and related property purchases. Comcast also continued its commitment to shareholder returns through significant share repurchases and an increased dividend.
02—Key points
Key Highlights
- Comcast completed the acquisition of GE's 49% stake in NBCUniversal for $16.7 billion, consolidating full ownership and significantly increasing long-term debt and goodwill on the balance sheet.
- Consolidated revenue increased by 2.9% to $15.31 billion, primarily driven by the Cable Communications segment, which grew 6.4% to $10.22 billion.
- Net income attributable to Comcast Corporation rose 17.4% to $1.44 billion, or $0.54 per diluted share, compared to $1.22 billion, or $0.45 per diluted share, in the prior year quarter.
- The Cable Communications segment added 433,000 high-speed Internet customers and 211,000 voice customers, though video customer net additions were negative (-60,000).
- NBCUniversal segment revenue saw a slight decrease of 2.4% to $5.34 billion, with Cable Networks up 4.6% and Theme Parks up 12.2%, but Broadcast Television down significantly by 18.5% due to the absence of the Super Bowl broadcast from the prior year.
- Net cash used in investing activities was $2.76 billion, a significant increase from $1.35 billion in the prior year, heavily influenced by the NBCUniversal acquisition and property purchases.
- The company returned $500 million to shareholders through share repurchases and paid $514 million in dividends in the quarter, demonstrating ongoing capital allocation to shareholders.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2013filed May 1, 2013Financial Statements
Q1 FY2013 against Q1 FY2012
| Line item | Q1 FY2013Q1 FY2012 | Change |
|---|---|---|
| Revenue | $15.31B$14.88B | +2.9% |
| Operating Expenses | $12.24B$12.12B | +1.0% |
| Operating Income | $3.07B$2.76B | +11.2% |
| Interest Expense | $653.00M$640.00M | +2.0% |
| Net Income | $1.44B$1.22B | +17.4% |
| EPS (Basic) | $0.28$0.23 | +22.2% |
| EPS (Diluted) | $0.27$0.23 | +20.0% |
| Shares Outstanding (Basic) | 5.27B5.42B | −2.7% |
| Shares Outstanding (Diluted) | 5.35B5.49B | −2.5% |
05—Questions
Frequently Asked Questions
What was the financial impact of the full acquisition of NBCUniversal?
The acquisition of GE's remaining 49% stake in NBCUniversal for approximately $16.7 billion was the most significant event of the quarter. This transaction led to a substantial increase in Comcast's long-term debt (from $38.1 billion to $45.0 billion) and goodwill (remaining largely stable at $27.0 billion). It also significantly altered the balance sheet by consolidating NBCUniversal Enterprise, including its preferred stock, which is now presented as 'redeemable noncontrolling interests and redeemable subsidiary preferred stock'.
How did the revenue and earnings perform in the quarter?
Consolidated revenue grew by 2.9% to $15.31 billion, driven by the Cable Communications segment. Net income attributable to Comcast Corporation increased by 17.4% to $1.44 billion, resulting in diluted earnings per share of $0.54, up from $0.45 in the prior year period. This growth reflects improved operational performance and the full consolidation of NBCUniversal's earnings, albeit with higher interest expenses due to increased debt.
What are the key trends in the Cable Communications segment?
The Cable Communications segment continues to be a strong performer, with revenue increasing by 6.4% to $10.22 billion. While high-speed Internet and voice customer additions remained robust, the segment experienced a net loss of video customers, a trend that warrants monitoring. Average revenue per video customer increased due to rate adjustments and higher take-up of bundled services, partially offsetting the customer decline.
How did the NBCUniversal segments perform individually?
The NBCUniversal segments showed mixed results. Cable Networks revenue grew due to higher distribution and advertising rates, and Theme Parks revenue increased significantly due to higher attendance and spending. However, Broadcast Television revenue declined substantially due to the absence of the Super Bowl broadcast from the prior year. Filmed Entertainment saw a slight revenue increase, driven by content licensing and theatrical releases.
06—Continue