February 15, 2012

Comcast Reports 4th Quarter and Year End 2011 Results

2011 Consolidated Revenue Increased 47%, Operating Cash Flow Increased 26% and Operating Income Increased 34%

Free Cash Flow Increased 30% to $7.0 Billion, including $5.2 Billion from Cable and $1.8 Billion from NBCUniversal

Dividend and Share Repurchases Totaled $3.3 Billion in 2011

Dividend to Increase 44% to $0.65 per Share on an Annualized Basis; Share Repurchase Authorization of $6.5 Billion Approved by the Board, with $3 Billion to be Repurchased in 2012, a 40% Increase from 2011

PHILADELPHIA--(BUSINESS WIRE)-- Comcast Corporation (NASDAQ: CMCSA, CMCSK) today reported results for the quarter and year ended December 31, 2011.

Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, "Last year was a very important year for our company. Cable continued to drive innovation, increase new product introductions and transform the customer experience, and we successfully integrated NBCUniversal. We also reported strong financial and operating results in both the fourth quarter and for the full year. Specifically, cable had another terrific quarter of improving customer metrics, demonstrating that our new XFINITY brand and our intensified focus on service and innovation are making a real difference. Our results at NBCUniversal underscore the strong performance of the cable networks and theme parks, and we continue to make progress enhancing the franchise values of its businesses.

As we begin 2012, the strength of our businesses and free cash flow generation will allow us to continue to build value and consistently return capital to shareholders. To underscore our optimism, we are increasing our dividend by 44% and have instituted a new $6.5 billion share repurchase plan, with $3 billion to be repurchased this year."

     
($ in millions)

4th Quarter

Full Year

Consolidated Results

2010

 

2011

 

Growth

2010

 

2011*

 

Growth

 
Revenue $9,721 $15,042 54.7 % $37,937 $55,842 47.2 %
Operating Cash Flow (OCF)1 $3,716 $4,916 32.3 % $14,596 $18,357 25.8 %
Operating Income $2,013 $2,918 45.0 % $7,980 $10,721 34.3 %
Earnings per Share $0.36 $0.47 30.6 % $1.29 $1.50 16.3 %
Free Cash Flow2 $1,121 $1,876 67.4 % $5,388 $7,009 30.1 %

*Full Year 2011 includes 11 months of NBCUniversal results.

 

For additional detail on segment revenue and expenses, customer metrics, capital expenditures, and free cash flow, please refer to the trending schedules on Comcast's Investor Relations website at www.cmcsa.com or www.cmcsk.com.

Consolidated Financial Results

Consolidated financial results include NBCUniversal as of January 28, 2011 and 100% of Universal Orlando as of July 1, 2011.

Revenue increased 54.7% in the fourth quarter of 2011 to $15.0 billion, while Operating Cash Flow increased 32.3% to $4.9 billion and Operating Income increased 45.0% to $2.9 billion.

For the year ended December 31, 2011, revenue increased 47.2% to $55.8 billion, while operating cash flow increased 25.8% to $18.4 billion and operating income increased 34.3% to $10.7 billion.

Earnings per Share3 (EPS) for the fourth quarter of 2011 was $0.47, a 30.6% increase from the $0.36 reported in the fourth quarter of 2010. Excluding NBCUniversal transaction and related costs and other non-recurring items, EPS increased 34.3% in the fourth quarter of 2011 (see Table 4).

EPS for the year ended December 31, 2011 was $1.50, a 16.3% increase from the $1.29 reported in the prior year. Excluding NBCUniversal transaction and related costs and other non-recurring items, EPS increased 20.6% to $1.58 compared to $1.31 in 2010 (see Table 4).

Free Cash Flow (excluding any impact from the Economic Stimulus packages) increased 67.4% to $1.9 billion in the fourth quarter of 2011 compared to $1.1 billion in the fourth quarter of 2010, reflecting growth in consolidated operating cash flow, partially offset by an increase in cash interest expense at NBCUniversal and increased intangible asset expenditures.

Free cash flow for the year ended December 31, 2011 increased 30.1% to $7.0 billion compared to $5.4 billion in 2010. The increase in free cash flow primarily reflects growth in consolidated operating cash flow, partially offset by increases in working capital, cash interest expense, capital expenditures and intangible asset expenditures.

     
($ in millions)

4th Quarter

Full Year

Free Cash Flow

2010

 

2011

 

Growth

2010

 

2011*

 

Growth

Operating Cash Flow $3,716 $4,916 32.3 % $14,596 $18,357 25.8 %
Capital Expenditures (1,532 ) (1,522 ) (0.6 %) (4,961 ) (5,307 ) 7.0 %

Cash Paid for Capitalized Software and Other Intangible Assets

(164 ) (449 ) 173.8 % (536 ) (954 ) 78.0 %
Cash Interest Expense (353 ) (632 ) 79.0 % (1,983 ) (2,441 ) 23.1 %
Cash Taxes (70 ) (460 ) NM (1,864 ) (1,626 ) (12.8 %)
Changes in Operating Assets and Liabilities (10 ) 118 NM (20 ) (603 ) NM
Noncash Share-Based Compensation 74 84 13.5 % 300 344 14.7 %
Proceeds from Investments and Distributions to Noncontrolling Interests (3 ) (2 ) NM 60 (37 ) NM
Adjustments for Nonoperating Items 32     (15 )   NM 97     (31 )   NM
Free Cash Flow (Incl. Economic Stimulus Packages) $1,690 $2,038 20.6 % $5,689 $7,702 35.4 %
Economic Stimulus Packages (569 )   (162 )   (71.5 %) (301 )   (693 )   130.2 %
Free Cash Flow $1,121 $1,876 67.4 % $5,388 $7,009 30.1 %
* Includes 11 months of NBCUniversal results.
 

Note: The definition of Free Cash Flow excludes any impact from the 2008-2011 Economic Stimulus packages. These amounts have been excluded from Free Cash Flow to provide an appropriate comparison. NM=comparison not meaningful.

Share Repurchases and Dividends. During the fourth quarter of 2011, Comcast repurchased 21.9 million of its common shares for $491 million. For the full year, Comcast repurchased 95.3 million of its common shares for $2.1 billion. In addition, Comcast made four cash dividend payments totaling $1.2 billion, resulting in a total return of capital to shareholders of $3.3 billion for 2011.

Today, Comcast announced that its Board of Directors has authorized a new $6.5 billion stock repurchase program. The company plans to repurchase $3.0 billion during 2012, subject to market conditions, representing a 40% increase over the $2.1 billion repurchased in 2011.

In addition, Comcast announced that it increased its dividend by 44% to $0.65 per share on an annualized basis. In accordance with the increase, the Board of Directors declared a quarterly cash dividend of $0.1625 a share on the company's common stock, payable on April 25, 2012 to shareholders of record as of the close of business on April 4, 2012.

Pro Forma Financial Results

Pro forma results are presented as if the NBCUniversal transaction, which closed on January 28, 2011, and the Universal Orlando transaction, which closed on July 1, 2011, were effective on January 1, 2010. These results are based on historical results of operations, adjusted for the effects of acquisition accounting and eliminating the costs and expenses directly related to the transaction, and are not necessarily indicative of what the results would have been had Comcast operated NBCUniversal and Universal Orlando since January 1, 2010 (see Table 5 for reconciliations of pro forma financial information).

   
($ in millions)

4th Quarter

Full Year

Consolidated Pro Forma Results

2010

 

2011

 

Growth

2010

 

2011

 

Growth

 
Revenue $14,601 $15,042 3.0 % $55,054 $57,661 4.7 %
Operating Cash Flow (OCF) $4,750 $4,916 3.5 % $17,629 $18,726 6.2 %
OCF (excluding Olympics and acquisition-related accounting revisions and costs) $4,750 $4,949 4.2 % $17,852 $19,066 6.8 %
 

Consolidated Pro Forma Revenue increased 3.0% in the fourth quarter of 2011 to $15.0 billion compared to $14.6 billion in the fourth quarter of 2010. Consolidated Pro Forma Operating Cash Flow increased 3.5% to $4.9 billion compared to $4.8 billion in last year's fourth quarter. Included in pro forma operating cash flow for the fourth quarter of 2011 are acquisition-related accounting revisions and costs totaling $33 million. Excluding these costs, pro forma consolidated operating cash flow increased 4.2% (see Table 6).

For the year ended December 31, 2011, consolidated pro forma revenue increased 4.7% to $57.7 billion compared to $55.1 billion in 2010. Excluding revenue generated by the 2010 Vancouver Olympics, pro forma revenue increased 6.2%. Consolidated pro forma operating cash flow increased 6.2% to $18.7 billion compared to $17.6 billion in 2010. Excluding the Olympics in 2010 and acquisition-related accounting revisions and costs, operating cash flow increased 6.8% to $19.1 billion (see Table 6). This year's consolidated results were driven by strong growth at Cable Communications, which accounted for 65% of consolidated revenue and 82% of consolidated operating cash flow, as well as growth in Cable Networks and Theme Parks, which were partially offset by weaker results at Broadcast Television and Filmed Entertainment.

Cable Communications

Pro forma Cable Communications ("Cable") results include video, high-speed internet, voice, advertising and business services operations and the businesses of Comcast Interactive Media that were not contributed to NBCUniversal. Pro forma Cable results exclude the regional sports networks, which were contributed to NBCUniversal.

     
($ in millions) (pro forma)

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