10-QPeriod: Q3 FY2013

COMCAST CORP Quarterly Report for Q3 Ended Sep 30, 2013

Filed October 30, 2013For Securities:CMCSACCZ

Summary

Comcast Corporation's (CMCSA) third-quarter 2013 report for the period ending September 30, 2013, reveals a mixed financial performance. While overall revenue saw a slight decline compared to the previous year, this was largely attributed to the absence of major sporting event broadcasts that boosted prior-year results. Excluding these events, revenue showed a healthy increase, driven by the continued strength in the Cable Communications segment, particularly high-speed internet and business services, as well as growth in NBCUniversal's Cable Networks, Filmed Entertainment, and Theme Parks divisions. The company successfully completed the acquisition of GE's remaining 49% stake in NBCUniversal, a significant strategic move that fully integrates this division into Comcast's operations. Despite the revenue nuances, operating income demonstrated strong growth, reflecting improved operational efficiencies and the positive impact of the NBCUniversal acquisition. The company's financial position remains solid, supported by consistent cash flow generation from operations, which funds ongoing capital expenditures, debt obligations, and shareholder returns through dividends and share repurchases. Investors should note the ongoing strategic focus on integrating NBCUniversal and expanding high-speed internet and business services, while also monitoring the competitive landscape and programming costs.

Financial Highlights

51 data points
Beta

Revenue

$16.15B

Net Income

$1.73B

10.7% Net Margin

EPS (Diluted)

$0.33

Total Assets

$156.59B

Cash & Equivalents

$1.60B

Free Cash Flow

$2.27B

Financial Statements
Beta
Revenue$16.15B
Operating Expenses$12.74B
Operating Income$3.41B
Interest Expense$639.00M
Net Income$1.73B
EPS (Basic)$0.33
EPS (Diluted)$0.33
Shares Outstanding (Basic)5.24B
Shares Outstanding (Diluted)5.32B

Key Highlights

  • 1Total revenue for the nine months ended September 30, 2013, increased by 2.4% to $47.7 billion, largely driven by growth in Cable Communications and NBCUniversal segments, despite a decline in Broadcast Television revenue due to the absence of major sporting events.
  • 2Operating income saw a significant increase of 11.6% for the nine months ended September 30, 2013, reaching $9.9 billion, demonstrating effective cost management and operational efficiencies.
  • 3Comcast completed the acquisition of GE's remaining 49% common equity interest in NBCUniversal Holdings for approximately $16.7 billion, fully integrating the media giant into its operations.
  • 4The Cable Communications segment revenue grew by 5.8% for the nine months ended September 30, 2013, with strong performance in High-speed Internet (8.1% increase) and Business Services (26.8% increase), indicating successful expansion in these areas.
  • 5Net income attributable to Comcast Corporation for the nine months ended September 30, 2013, was $4.9 billion, a 4.7% increase compared to the prior year, reflecting the positive impact of strategic transactions and operational improvements.
  • 6The company generated strong operating cash flows of $11.7 billion for the nine months ended September 30, 2013, underscoring its ability to fund operations, investments, and shareholder distributions.
  • 7Shareholders received increased dividends, with quarterly dividends declared of $0.195 per share, reflecting a 20% increase on an annualized basis compared to the previous year.

Frequently Asked Questions

The acquisition of GE's remaining 49% stake in NBCUniversal in March 2013 for approximately $16.7 billion resulted in the full consolidation of NBCUniversal's financials into Comcast's. This significantly impacted revenue and operating income, with NBCUniversal segments contributing substantially to overall performance. The transaction also led to an increase in long-term debt and deferred tax liabilities.

The absence of major sporting event broadcasts, such as the 2012 London Olympics and the Super Bowl, in the current year's comparable periods led to a reported decrease in overall consolidated revenue and a significant decline in the Broadcast Television segment's revenue. However, excluding these specific event revenues, total revenue showed a healthy increase, indicating underlying growth in the core businesses.

The Cable Communications segment's revenue growth is primarily driven by increases in High-speed Internet and Business Services. For the nine months ended September 30, 2013, High-speed Internet revenue grew 8.1% due to customer growth and higher rates, while Business Services revenue surged by 26.8% as Comcast expanded its offerings to medium-sized businesses. Video revenue saw modest growth, supported by rate increases, though partially offset by a decline in residential video customers.

Comcast generated substantial operating cash flow ($11.7 billion for the nine months ended September 30, 2013), which is used to fund debt obligations, capital expenditures, and shareholder returns. The company also maintains significant availability under its credit facilities. The acquisition of NBCUniversal increased the company's debt, but the overall liquidity position remains strong, supported by consistent cash generation and access to financing.