May 2, 2012

Comcast Reports 1st Quarter 2012 Results

Consolidated Revenue Increased 23%, Operating Cash Flow Increased 15% and Operating Income Increased 24%

Earnings per Share Increased 32% to $0.45

Free Cash Flow Increased 37% to $3.0 Billion, Including $2.2 Billion from Cable and $851 Million from NBCUniversal

Quarterly Dividends and Share Repurchases Totaled $1.1 Billion

PHILADELPHIA--(BUSINESS WIRE)-- Comcast Corporation (NASDAQ: CMCSA, CMCSK) today reported results for the quarter ended March 31, 2012.

Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, "We are off to a great start in 2012, with strong revenue and cash flow growth and record quarterly free cash flow. Cable's results show real momentum in High-Speed Internet and Business Services, and continuing improvements in Video results and Voice services. As we continue to drive innovation and bring the XFINITY brand to life, we're delivering more and better products and transforming the customer experience.

We are also pleased with the performance of NBCUniversal, which posted strong revenue growth, led by the Super Bowl and successful film releases, along with reliable growth in our Theme Parks and Cable Networks, and steady progress in Broadcast. NBCUniversal and Cable Communications are also working well together to launch new programs and offer innovative products. We are looking forward to events like the Olympics that will bring together all of our company's unique abilities to deliver compelling stories and new digital experiences across every screen, in and out of the home."

Consolidated Financial Results

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

     
($ in millions) 1st Quarter
Consolidated Results

2011*

     

2012

     

Growth

 
Revenue $12,128 $14,878 22.7 %
Operating Cash Flow (OCF)1 $4,066 $4,688 15.3 %
Operating Income $2,224 $2,758 24.0 %
Earnings per Share2 $0.34 $0.45 32.4 %
Free Cash Flow3 $2,221 $3,039 36.8 %
 

*Includes 2 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.

Revenue increased 22.7% in the first quarter of 2012 to $14.9 billion, while Operating Cash Flow increased 15.3% to $4.7 billion and Operating Income increased 24.0% to $2.8 billion.

Earnings per Share (EPS) for the first quarter of 2012 was $0.45, a 32.4% increase from the $0.34 reported in the first quarter of 2011. Excluding NBCUniversal transaction and related costs of $0.02 per share in the first quarter of 2011, EPS increased 25.0% in the first quarter of 2012 (see Table 4).

Free Cash Flow (excluding any impact from the Economic Stimulus packages) increased 36.8% to $3.0 billion in the first quarter of 2012 compared to $2.2 billion in the first quarter of 2011, reflecting growth in consolidated operating cash flow and improvements in working capital, partially offset by higher capital and intangible asset expenditures.

     
($ in millions) 1st Quarter
Free Cash Flow

2011*

     

2012

     

Growth

Operating Cash Flow $4,066 $4,688 15.3%
Capital Expenditures (1,106) (1,174) 6.1%
Cash Paid for Capitalized Software and Other Intangible Assets (123) (184) 49.6%
Cash Interest Expense (657) (614) (6.5%)
Cash Taxes (74) (118) 59.5%
Changes in Operating Assets and Liabilities 7 346 NM
Noncash Share-Based Compensation 84 89 6.0%
Proceeds from Investments and Distributions to Noncontrolling Interests 22 17 (22.7%)
Nonoperating Items 2       (11)       NM
Free Cash Flow (Incl. Economic Stimulus Packages) $2,221 $3,039 36.8%
Economic Stimulus Packages -       -       -
Free Cash Flow $2,221 $3,039 36.8%
* Includes 2 months of NBCUniversal results.
 

Note: The definition of Free Cash Flow excludes any impact from the 2008-2012 Economic Stimulus packages. These amounts have been excluded from Free Cash Flow to provide an appropriate comparison. NM=comparison not meaningful.

Dividends and Share Repurchases. During the first quarter of 2012, Comcast paid dividends totaling $304 million and repurchased 25.9 million of its common shares for $750 million. As of March 31, 2012, Comcast had approximately $5.8 billion available under its share repurchase authorization.

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) 1st Quarter
Consolidated Pro Forma Results

2011

     

2012

     

Growth

 
Revenue $13,580 $14,878 9.6%
Operating Cash Flow (OCF) $4,276 $4,688 9.6%
OCF (excluding NBCUniversal transaction-related costs) $4,368 $4,688 7.3%
 

Consolidated Pro Forma Revenue increased 9.6% in the first quarter of 2012 to $14.9 billion compared to $13.6 billion in the first quarter of 2011. Consolidated Pro Forma Operating Cash Flow increased 9.6% to $4.7 billion compared to $4.3 billion in last year's first quarter. Included in consolidated pro forma operating cash flow for the first quarter of 2011 are transaction-related costs totaling $92 million. Excluding these costs, consolidated pro forma operating cash flow increased 7.3% (see Table 6).

Cable Communications

     
($ in millions) 1st Quarter

2011

     

2012

     

Growth

Cable Communications Revenue
Video $4,891 $4,969 1.6%
High-Speed Internet 2,106 2,323 10.3%
Voice 860 878 2.0%
Business Services 394 541 37.0%
Advertising 455 476 4.8%
Other 378       412       8.9%
Cable Communications Revenue $9,084 $9,599 5.7%
 
Cable Communications OCF $3,749 $3,955 5.5%
OCF Margin 41.3% 41.2%
 
Cable Communications Capital Expenditures $1,053 $1,056 0.3%

Percent of Cable Communications Revenue

11.6%

11.0%

 

 

Revenue. For the first quarter of 2012, Cable revenue increased 5.7% to $9.6 billion compared to $9.1 billion in the first quarter of 2011. This increase was driven by a 10.3% increase in High-Speed Internet revenue, a 37.0% increase in Business Services revenue and a 1.6% increase in Video revenue. Monthly average total revenue per Video customer increased 7.8% to $143.40, reflecting a growing number of residential customers taking multiple products, rate adjustments and a higher contribution from business services.

Operating Cash Flow. For the first quarter of 2012, Cable operating cash flow increased 5.5% to $4.0 billion compared to $3.7 billion in the first quarter of 2011, reflecting higher revenue offset primarily by increases in programming, sales and marketing and other expenses to support new business areas. This quarter's operating cash flow margin was 41.2% compared to 41.3% in the first quarter of 2011.

Capital Expenditures. For the first quarter of 2012, Cable capital expenditures were flat to the prior year at $1.1 billion and represented 11.0% of Cable revenue in the first quarter of 2012 compared to 11.6% in last year's first quarter.

Customers. In the first quarter, combined Video, High-Speed Internet and Voice customers increased by 565,000, driven by High-Speed Internet customer net additions, up 5% over the prior year. As of March 31, 2012, Video, High-Speed Internet and Voice customers totaled 50.4 million, an increase of 2.8% over last year's first quarter.

           
(in thousands)

Customers

Net Adds

1Q11

     

1Q12

1Q12

Video Customers 22,751 22,294 (37)
High-Speed Internet Customers 17,403 18,582 439
Voice Customers 8,870       9,506 164
Combined Video, HSI and Voice Customers 49,024 50,382 565
 

NBCUniversal

Pro forma NBCUniversal 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.

Revenue for NBCUniversal increased 18.0% to $5.5 billion in the first quarter of 2012, reflecting strong revenue growth in every segment, including Super Bowl revenue of $259 million in the Broadcast Television segment. Excluding the Super Bowl in the first quarter of 2012, revenue increased 12.4%. Operating Cash Flow increased 34.3% to $813 million compared to last year's first quarter. Excluding transaction-related costs totaling $92 million in the first quarter of 2011, operating cash flow increased 16.6% (see Table 6).

     
($ in millions) (pro forma)

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