01—Abstract
Summary
Summary of the 10-Q filed October 26, 2017. Cited figures are marked; the original filing is the authoritative source.
Comcast Corporation's third-quarter 2017 filing reveals a mixed financial performance, with consolidated revenue seeing a slight decrease year-over-year, primarily due to the absence of revenue from the 2016 Rio Olympics broadcast.
However, excluding this impact, revenue showed a healthy increase, driven by strong performance in the Cable Communications and Theme Parks segments. Net income attributable to Comcast Corporation saw a significant increase, reflecting improved operational efficiencies and strategic gains. Despite the top-line dip, the company demonstrated solid operational execution.
The Cable Communications segment continued its growth trajectory, driven by high-speed internet and business services. NBCUniversal's segments showed varied results, with Theme Parks and Filmed Entertainment performing strongly, while Cable Networks and Broadcast Television faced challenges, partly due to the Olympic broadcast comparison.
The company also made significant strategic moves, including the acquisition of the remaining interest in Universal Studios Japan and substantial spectrum acquisition. Financially, Comcast managed its debt effectively and continued to return capital to shareholders through dividends and share repurchases.
02—Key points
Key Highlights
- Consolidated revenue decreased by 1.6% to $20.98 billion for the third quarter, largely due to the absence of 2016 Rio Olympics broadcast revenue, but increased by 5.4% to $62.61 billion for the first nine months.
- Net income attributable to Comcast Corporation increased by 18.5% to $2.65 billion for the third quarter and by 20.8% to $7.73 billion for the first nine months.
- Cable Communications segment revenue grew by 5.1% to $13.20 billion for the quarter, driven by strong performance in High-Speed Internet and Business Services.
- NBCUniversal segments revenue decreased by 12.7% to $8.01 billion for the quarter, primarily due to the absence of the Rio Olympics broadcast, though Adjusted EBITDA increased by 6.0%.
- The company acquired the remaining interest in Universal Studios Japan for $2.3 billion and acquired $1.7 billion of spectrum rights.
- Long-term debt increased to $59.72 billion from $55.57 billion, while cash and cash equivalents increased to $4.11 billion from $3.30 billion.
- Comcast repurchased approximately $3.8 billion of its common stock and paid $397 million in dividends during the first nine months of the year.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2017filed October 26, 2017Financial Statements
Q3 FY2017 against Q3 FY2016
| Line item | Q3 FY2017Q3 FY2016 | Change |
|---|---|---|
| Revenue | $21.08B$21.32B | −1.1% |
| Operating Expenses | $16.30B$16.88B | −3.4% |
| Operating Income | $4.78B$4.44B | +7.6% |
| Interest Expense | $766.00M$751.00M | +2.0% |
| Net Income | $2.64B$2.24B | +18.1% |
| EPS (Basic) | $0.56$0.47 | +19.1% |
| EPS (Diluted) | $0.55$0.46 | +19.6% |
| Shares Outstanding (Basic) | 4.70B4.80B | −2.2% |
| Shares Outstanding (Diluted) | 4.78B4.86B | −1.7% |
05—Questions
Frequently Asked Questions
What drove the decrease in consolidated revenue for the quarter?
The decrease in consolidated revenue for the third quarter of 2017, down 1.6% to $20.98 billion, was primarily due to the absence of revenue generated from the broadcast of the 2016 Rio Olympics in the prior year's comparable period. Excluding this impact, consolidated revenue actually increased by 5.8%.
How did the different business segments perform?
The Cable Communications segment showed robust growth with a 5.1% revenue increase, primarily from High-Speed Internet and Business Services. NBCUniversal segments experienced a revenue decline of 12.7% due to the Olympics comparison, but saw a 6.0% increase in Adjusted EBITDA. The Theme Parks and Filmed Entertainment segments showed strong revenue growth year-over-year.
What is the company's financial position regarding debt and cash?
Comcast's long-term debt increased to $59.72 billion as of September 30, 2017, up from $55.57 billion at the end of 2016. However, the company's cash and cash equivalents also increased to $4.11 billion from $3.30 billion, indicating active management of its financial resources.
What significant investments or acquisitions did Comcast make during this period?
During the first nine months of 2017, Comcast acquired the remaining 49% interest in Universal Studios Japan for $2.3 billion. Additionally, the company acquired $1.7 billion of spectrum rights from the FCC auction and made a $500 million investment in Snap Inc.
06—Continue