01—Abstract
Summary
Summary of the 10-Q filed April 27, 2016. Cited figures are marked; the original filing is the authoritative source.
Comcast Corporation (CMCSA) reported strong revenue growth of 5.3% to $18.79 billiona for the first quarter of 2016, driven primarily by its Cable Communications segment and a significant contribution from the recently acquired Universal Studios Japan.
Net income attributable to Comcast Corporation rose by 3.6% to $2.13 billionb, translating to diluted EPS of $0.87, up from $0.81 in the prior year quarter. The company demonstrated robust operational performance, with its Cable Communications segment showing a 6.7% revenue increase, boosted by strong growth in high-speed Internet and business services. The NBCUniversal segments also saw growth, particularly the Theme Parks segment which benefited from the Universal Studios Japan acquisition.
Despite increased operating costs, the company managed to improve its operating income by 5.1%c. Comcast also continued its commitment to returning capital to shareholders through share repurchases and dividend payments.
02—Key points
Key Highlights
- Total revenue increased by 5.3% to $18.79 billion compared to the first quarter of 2015.
- Net income attributable to Comcast Corporation increased by 3.6% to $2.13 billion.
- Diluted earnings per share (EPS) grew to $0.87 from $0.81 in the prior year period.
- Cable Communications segment revenue grew by 6.7%, driven by strong performance in High-Speed Internet and Business Services.
- Theme Parks segment revenue saw a substantial increase of 57.5% on an actual basis, largely due to the acquisition of Universal Studios Japan.
- The company repurchased approximately $1.25 billion of its Class A common stock in the first quarter of 2016.
- Comcast increased its quarterly dividend by 10.0% to $0.275 per share.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2016filed April 27, 2016Financial Statements
Q1 FY2016 against Q1 FY2015
| Line item | Q1 FY2016Q1 FY2015 | Change |
|---|---|---|
| Revenue | $18.79B$17.85B | +5.2% |
| Operating Expenses | $14.70B$13.96B | +5.3% |
| Operating Income | $4.09B$3.89B | +5.1% |
| Interest Expense | $703.00M$656.00M | +7.2% |
| Net Income | $2.13B$2.06B | +3.6% |
| EPS (Basic) | $0.44$0.41 | +7.3% |
| EPS (Diluted) | $0.43$0.41 | +6.2% |
| Shares Outstanding (Basic) | 4.87B5.04B | −3.4% |
| Shares Outstanding (Diluted) | 4.92B5.11B | −3.7% |
05—Questions
Frequently Asked Questions
What was the main driver of revenue growth in the first quarter of 2016?
The primary drivers of revenue growth were the Cable Communications segment, which saw increased demand for high-speed internet and business services, and the NBCUniversal segments, particularly the Theme Parks segment which benefited significantly from the acquisition of Universal Studios Japan in late 2015.
How did the acquisition of Universal Studios Japan impact the financial results?
The acquisition of a 51% interest in Universal Studios Japan in November 2015 had a substantial positive impact, particularly on the Theme Parks segment's revenue, which grew by 57.5% on an actual basis. It also contributed to overall consolidated revenue growth.
What is Comcast's strategy for returning capital to shareholders?
Comcast continues to return capital to shareholders through a combination of share repurchases and dividend payments. In the first quarter of 2016, the company repurchased approximately $1.25 billion of its stock and increased its quarterly dividend by 10%.
What are the key risks mentioned in the filing that could impact Comcast's future performance?
Comcast faces several risks, including intense competition across all its business lines, changing consumer behavior driven by new content viewing methods, potential declines in advertiser spending, the need to keep pace with technological developments, and increasing programming expenses for its video services. Regulatory changes and international business risks are also noted.
06—Continue