Exhibit 99.1
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| PRESS RELEASE | |  |
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Investor Contacts: | | | | | | Press Contacts: | | |
Marlene S. Dooner | | (215) 286-7392 | | | | D’Arcy Rudnay | | (215) 286-8582 |
Jane B. Kearns | | (215) 286-4794 | | | | John Demming | | (215) 286-8011 |
Michael A. Kelman | | (215) 286-3035 | | | | | | |
COMCAST REPORTS 3rd QUARTER 2011 RESULTS
Strong Financial and Operating Momentum
Consolidated Revenue Increased 51.1%, Operating Cash Flow Increased 27.8% and Operating Income Increased 35.1%
Dividends and Share Repurchases Totaled $909 Million
Philadelphia, PA – November 2, 2011…Comcast Corporation (NASDAQ: CMCSA, CMCSK) today reported results for the quarter ended September 30, 2011.
Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, “I am pleased to report strong performance across key financial, operational and product areas. Cable had an outstanding quarter, led by continuing strength in high-speed Internet and business services. In addition, this marks the fourth consecutive quarter of improving customer metrics, including increased year-over-year high-speed Internet customer additions. We are driving product leadership and innovation and making significant progress in delivering improved service experiences for our customers. NBCUniversal’s results underscore the strength of our core cable networks business, as well as terrific momentum at the theme parks. Our goal for NBCUniversal is to improve and build brands, and to enhance long-term value. Overall, this quarter continued our momentum toward a successful integration.”
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| ($ in millions) | | 3rd Quarter | | | | | Year to Date | |
| Consolidated Results | | 2010 | | | 2011 | | | Growth | | | | | 2010 | | | 2011* | | | Growth | |
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Revenue | | $ | 9,489 | | | $ | 14,339 | | | | 51.1 | % | | | | $ | 28,216 | | | $ | 40,800 | | | | 44.6 | % |
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Operating Cash Flow (OCF) | | $ | 3,578 | | | $ | 4,574 | | | | 27.8 | % | | | | $ | 10,880 | | | $ | 13,441 | | | | 23.5 | % |
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Operating Income | | $ | 1,954 | | | $ | 2,641 | | | | 35.1 | % | | | | $ | 5,967 | | | $ | 7,803 | | | | 30.8 | % |
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Earnings per Share | | $ | 0.31 | | | $ | 0.33 | | | | 6.5 | % | | | | $ | 0.93 | | | $ | 1.03 | | | | 10.8 | % |
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Free Cash Flow | | $ | 1,025 | | | $ | 1,392 | | | | 35.8 | % | | | | $ | 4,267 | | | $ | 5,133 | | | | 20.3 | % |
*Year to date 2011 includes 8 months of NBCUniversal results.
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| ($ in millions) | | 3rd Quarter | | | | | Year to Date | |
| Consolidated Pro Forma Results** | | 2010 | | | 2011 | | | Growth | | | | | 2010 | | | 2011 | | | Growth | |
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Revenue | | $ | 13,670 | | | $ | 14,339 | | | | 4.9 | % | | | | $ | 40,453 | | | $ | 42,619 | | | | 5.4 | % |
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Operating Cash Flow (OCF) | | $ | 4,433 | | | $ | 4,574 | | | | 3.2 | % | | | | $ | 12,879 | | | $ | 13,810 | | | | 7.2 | % |
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OCF*** (excluding Olympics and acquisition-related accounting revisions and costs) | | $ | 4,433 | | | $ | 4,656 | | | | 5.0 | % | | | | $ | 13,102 | | | $ | 14,117 | | | | 7.7 | % |
** 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. See Table 5 for additional details.
***See Table 6.
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
Revenueincreased 51.1% in the third quarter of 2011 to $14.3 billion, whileOperating Cash Flowincreased 27.8% to $4.6 billion andOperating Income increased 35.1% to $2.6 billion, primarily reflecting strong Cable Communications results, the acquisition of NBCUniversal in January and the consolidation of the Universal Orlando theme parks.
For the nine months ended September 30, 2011, revenue increased 44.6% to $40.8 billion, while operating cash flow increased 23.5% to $13.4 billion and operating income increased 30.8% to $7.8 billion.
Earnings per Share1 (EPS)for the third quarter of 2011 was $0.33, a 6.5% increase from the $0.31 reported in the third quarter of 2010. Excluding NBCUniversal transaction and related costs, EPS increased 3.1% (see Table 4). Third quarter EPS was negatively impacted by higher interest expense and taxes, as well as a $256 million year-over-year decline in investment income. This decline reflects a $147 million ($0.03 per share after tax) investment loss in third quarter 2011, compared to a $109 million ($0.02 per share after tax) investment gain in third quarter 2010, driven primarily by noncash mark-to-market adjustments on our investment portfolio.
EPS for the nine months ended September 30, 2011 was $1.03, a 10.8% increase from the $0.93 reported in the prior year. Excluding NBCUniversal transaction and related costs and a $137 million noncash, non-recurring income tax charge resulting from a state tax law change during the second quarter of 2011, EPS for the nine months ended September 30, 2011 increased 14.6% to $1.10 compared to $0.96 in 2010 (see Table 4).
Free Cash Flow(excluding any impact from the Economic Stimulus packages) increased 35.8% to $1.4 billion in the third quarter of 2011 compared to $1.0 billion in last year’s third quarter. The increase in free cash flow primarily reflects growth in consolidated operating cash flow, partially offset by an increase in working capital. Free cash flow for the nine months ended September 30, 2011 increased 20.3% to $5.1 billion compared to $4.3 billion in 2010.
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| ($ in millions) | | 3rd Quarter | | | | | Year to Date | |
| Free Cash Flow | | 2010 | | | 2011 | | | Growth | | | | | 2010 | | | 2011* | | | Growth | |
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Operating Cash Flow | | $ | 3,578 | | | $ | 4,574 | | | | 27.8 | % | | | | $ | 10,880 | | | $ | 13,441 | | | | 23.5 | % |
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Capital Expenditures | | | (1,366 | ) | | | (1,408 | ) | | | 3.0 | % | | | | | (3,429 | ) | | | (3,785 | ) | | | 10.4 | % |
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Cash Paid for Capitalized Software and Other Intangible Assets | | | (135 | ) | | | (209 | ) | | | 54.8 | % | | | | | (372 | ) | | | (505 | ) | | | 35.8 | % |
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Cash Interest Expense | | | (661 | ) | | | (612 | ) | | | (7.4 | %) | | | | | (1,630 | ) | | | (1,809 | ) | | | 11.0 | % |
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Cash Taxes | | | (668 | ) | | | (596 | ) | | | (10.8 | %) | | | | | (1,794 | ) | | | (1,166 | ) | | | (35.0 | %) |
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Changes in Operating Assets and Liabilities | | | 60 | | | | (300 | ) | | | NM | | | | | | (10 | ) | | | (721 | ) | | | NM | |
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Noncash Share-Based Compensation | | | 73 | | | | 86 | | | | 17.8 | % | | | | | 226 | | | | 260 | | | | 15.0 | % |
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Proceeds from Investments and Distributions to Noncontrolling Interests | | | 18 | | | | (3 | ) | | | NM | | | | | | 63 | | | | (35 | ) | | | NM | |
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Adjustments for Nonoperating Items | | | 37 | | | | 5 | | | | NM | | | | | | 65 | | | | (16 | ) | | | NM | |
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Free Cash Flow (Incl. Economic Stimulus Packages) | | $ | 936 | | | $ | 1,537 | | | | 64.2 | % | | | | $ | 3,999 | | | $ | 5,664 | | | | 41.6 | % |
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Economic Stimulus Packages | | | 89 | | | | (145 | ) | | | NM | | | | | | 268 | | | | (531 | ) | | | NM | |
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Free Cash Flow | | $ | 1,025 | | | $ | 1,392 | | | | 35.8 | % | | | | $ | 4,267 | | | $ | 5,133 | | | | 20.3 | % |
* Includes 8 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 third quarter of 2011, Comcast repurchased 27.5 million of its common shares for $600 million. Year to date, Comcast has repurchased 73.4 million of its common shares for $1.65 billion. As of September 30, 2011, Comcast had approximately $491 million of availability remaining under its share repurchase authorization. In addition, during the third quarter of 2011, Comcast paid dividends totaling $309 million.
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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).
Consolidated Pro Forma Revenueincreased 4.9% in the third quarter of 2011 to $14.3 billion compared to $13.7 billion in the third quarter of 2010.Consolidated Pro Forma Operating Cash Flowincreased 3.2% to $4.6 billion compared to $4.4 billion in last year’s third quarter. Included in pro forma operating cash flow for the third quarter of 2011 are acquisition-related accounting revisions and costs totaling $82 million. Excluding these costs, pro forma consolidated operating cash flow increased 5.0% (see Table 6).
For the nine months ended September 30, 2011, consolidated pro forma revenue increased 5.4% to $42.6 billion compared to $40.5 billion in 2010. Excluding revenue generated by the 2010 Vancouver Olympics, pro forma revenue increased 7.4%. Consolidated pro forma operating cash flow increased 7.2% to $13.8 billion compared to $12.9 billion in the first nine months of 2010. Excluding the Olympics in 2010 and acquisition-related accounting revisions and costs, operating cash flow increased 7.7% (see Table 6).
Cable Communications
Pro forma Cable Communications (“Cable”) results include video, high-speed internet, voice, advertising and business services operations and the businesses of Comcast Interactive Media that were not contributed to NBCUniversal. Pro forma Cable results exclude the regional sports networks, which were contributed to NBCUniversal.
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| ($ in millions) (pro forma) | | 3rd Quarter | | | | | Year to Date | |
| | | 2010 | | | 2011 | | | Growth | | | | | 2010 | | | 2011 | | | Growth | |
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Cable Communications Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | |
Video | | $ | 4,839 | | | $ | 4,892 | | | | 1.1 | % | | | | $ | 14,525 | | | $ | 14,724 | | | | 1.4 | % |
High-Speed Internet | | | 2,009 | | | | 2,205 | | | | 9.8 | % | | | | | 5,926 | | | | 6,497 | | | | 9.6 | % |
Voice | | | 829 | | | | 883 | | | | 6.3 | % | | | | | 2,458 | | | | 2,621 | | | | 6.6 | % |
Advertising | | | 512 | | | | 492 | | | | (4.0 | %) | | | | | 1,418 | | | | 1,459 | | | | 2.9 | % |
Business Services | | | 334 | | | | 464 | | | | 39.4 | % | | | | | 903 | | | | 1,293 | | | | 43.3 | % |
Other | | | 362 | | | | 395 | | | | 8.6 | % | | | | | 1,083 | | | | 1,162 | | | | 7.3 | % |
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Cable Communications Revenue | | $ | 8,885 | | | $ | 9,331 | | | | 5.0 | % | | | | $ | 26,313 | | | $ | 27,756 | | | | 5.5 | % |
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Cable Communications OCF | | $ | 3,479 | | | $ | 3,714 | | | | 6.7 | % | | | | $ | 10,599 | | | $ | 11,349 | | | | 7.1 | % |
OCF Margin | | | 39.2 | % | | | 39.8 | % | | | | | | | | | 40.3 | % | | | 40.9 | % | | | | |
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Cable Communications Capital Expenditures | | $ | 1,317 | | | $ | 1,254 | | | | (4.9 | %) | | | | $ | 3,349 | | | $ | 3,488 | | | | 4.1 | % |
Percent of Cable Communications Revenue | | | 14.8 | % | | | 13.4 | % | | | | | | | | | 12.7 | % | | | 12.6 | % | | | | |
Revenue. For the third quarter of 2011, Cable revenue increased 5.0% to $9.3 billion compared to $8.9 billion in the third quarter of 2010. This increase was driven by a 9.8% increase in high-speed internet revenue and a 39.4% increase in business services revenue. Advertising revenue decreased 4.0%, reflecting lower political advertising in the third quarter of 2011. Monthly average total revenue per video customer increased 8.0% to $138.58, reflecting a growing number of residential customers taking multiple products, rate adjustments and a higher contribution from business services.
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For the nine months ended September 30, 2011, Cable revenue increased 5.5% to $27.8 billion compared to $26.3 billion in 2010.
Operating Cash Flow. For the third quarter of 2011, Cable operating cash flow increased 6.7% to $3.7 billion compared to $3.5 billion in last year’s third quarter, reflecting continued operational efficiencies, partially offset by increases in video programming and marketing expenses. This quarter’s operating cash flow margin was 39.8% compared to 39.2% in the third quarter of 2010.
For the nine months ended September 30, 2011, Cable operating cash flow increased 7.1% to $11.3 billion compared to $10.6 billion in 2010. Year to date operating cash flow margin was 40.9% compared to 40.3% in 2010.
Capital Expenditures. For the third quarter of 2011, Cable capital expenditures decreased 4.9% to $1.3 billion, reflecting efficiencies partially offset by continuing investments in network infrastructure and the expansion in business services. Cable capital expenditures equaled 13.4% of Cable revenue in the third quarter of 2011.
For the nine months ended September 30, 2011, Cable capital expenditures increased 4.1% to $3.5 billion, representing 12.6% of Cable revenue.
Customers.In the third quarter, combined video, high-speed internet and voice customers increased by 229,000, a 13.4% increase compared to third quarter 2010 net additions. For the nine months ended September 30, 2011, combined video, high-speed internet and voice customers increased by 966,000, a 10.4% increase compared to net additions in the first nine months of 2010. As of September 30, 2011, video, high-speed internet and voice customers totaled 49.4 million, an increase of 1.4 million or 2.9% in the past twelve months.
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| (in thousands) | | Customers | | | Net Adds | |
| | | 3Q10 | | | 3Q11 | | | 3Q10 | | | 3Q11 | | | YTD10 | | | YTD11 | |
Video Customers | | | 22,937 | | | | 22,360 | | | | (275 | ) | | | (165 | ) | | | (622 | ) | | | (443 | ) |
High-Speed Internet Customers | | | 16,696 | | | | 17,811 | | | | 249 | | | | 261 | | | | 766 | | | | 823 | |
Voice Customers | | | 8,353 | | | | 9,196 | | | | 228 | | | | 133 | | | | 731 | | | | 586 | |
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Combined Video, HSI and Voice Customers | | | 47,987 | | | | 49,367 | | | | 202 | | | | 229 | | | | 875 | | | | 966 | |
NBCUniversal
Pro forma NBCUniversal results include national cable programming networks, the NBC network and owned NBC affiliated local television stations, the Telemundo network and owned Telemundo affiliated local television stations, Universal Pictures filmed entertainment, the Universal theme parks, and other related assets. Comcast’s national cable programming networks, regional sports networks (RSNs), Daily Candy and Fandango, which were contributed to NBCUniversal, are also included in these results.
Revenuefor NBCUniversal increased 4.6% to $5.2 billion in the third quarter of 2011 compared to $5.0 billion in the third quarter of 2010.Operating Cash Flowdecreased 9.3% to $951 million compared to $1.0 billion in last year’s third quarter. Excluding acquisition-related accounting revisions and costs totaling $82 million in the third quarter of 2011, operating cash flow decreased 1.4% to $1.0 billion (see Table 6).
For the nine months ended September 30, 2011, NBCUniversal revenue of $15.4 billion increased 4.8% compared to $14.7 billion in 2010. Excluding the impact of the Vancouver Olympics in 2010, revenue increased 10.7%. Operating cash flow increased 6.3% to $2.7 billion compared to $2.6 billion in the first nine months of 2010. Excluding the Olympics in 2010 and acquisition-related accounting revisions and costs totaling $307 million, operating cash flow increased 8.8% to $3.0 billion (see Table 6).
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| ($ in millions) (pro forma) | | 3rd Quarter | | | | | Year to Date | |
| | | 2010 | | | 2011 | | | Growth | | | | | 2010 | | | 2011 | | | Growth | |
NBCUniversal Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cable Networks | | $ | 1,872 | | | $ | 2,097 | | | | 12.0 | % | | | | $ | 5,584 | | | $ | 6,290 | | | | 12.6 | % |
Broadcast Television | | | 1,468 | | | | 1,511 | | | | 2.9 | % | | | | | 4,976 | | | | 4,558 | | | | (8.4 | %) |
Filmed Entertainment | | | 1,190 | | | | 1,096 | | | | (7.8 | %) | | | | | 3,287 | | | | 3,325 | | | | 1.2 | % |
Theme Parks | | | 531 | | | | 580 | | | | 9.1 | % | | | | | 1,122 | | | | 1,491 | | | | 32.9 | % |
Headquarters, Other and Eliminations | | | (87 | ) | | | (84 | ) | | | 4.4 | % | | | | | (286 | ) | | | (278 | ) | | | 2.9 | % |
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NBCUniversal Revenue | | $ | 4,974 | | | $ | 5,200 | | | | 4.6 | % | | | | $ | 14,683 | | | $ | 15,386 | | | | 4.8 | % |
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NBCUniversal OCF | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cable Networks | | $ | 767 | | | $ | 751 | | | | (2.0 | %) | | | | $ | 2,366 | | | $ | 2,414 | | | | 2.0 | % |
Broadcast Television | | | 70 | | | | (7 | ) | | | NM | | | | | | 63 | | | | 203 | | | | NM | |
Filmed Entertainment | | | 66 | | | | 54 | | | | (16.9 | %) | | | | | 58 | | | | (65 | ) | | | NM | |
Theme Parks | | | 252 | | | | 285 | | | | 12.6 | % | | | | | 399 | | | | 644 | | | | 61.2 | % |
Headquarters, Other and Eliminations | | | (107 | ) | | | (132 | ) | | | (24.2 | %) | | | | | (331 | ) | | | (479 | ) | | | (44.8 | %) |
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NBCUniversal OCF | | $ | 1,048 | | | $ | 951 | | | | (9.3 | %) | | | | $ | 2,555 | | | $ | 2,717 | | | | 6.3 | % |
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Adjusted NBCUniversal OCF* | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cable Networks | | $ | 767 | | | $ | 831 | | | | 8.5 | % | | | | $ | 2,366 | | | $ | 2,544 | | | | 7.6 | % |
Broadcast Television | | | 70 | | | | 17 | | | | NM | | | | | | 286 | | | | 283 | | | | (1.1 | %) |
Filmed Entertainment | | | 66 | | | | 18 | | | | NM | | | | | | 58 | | | | (81 | ) | | | NM | |
Theme Parks | | | 252 | | | | 285 | | | | 12.6 | % | | | | | 399 | | | | 644 | | | | 61.2 | % |
Headquarters, Other and Eliminations | | | (107 | ) | | | (118 | ) | | | (11.1 | %) | | | | | (331 | ) | | | (366 | ) | | | (11.0 | %) |
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Adjusted NBCUniversal OCF* | | $ | 1,048 | | | $ | 1,033 | | | | (1.4 | %) | | | | $ | 2,778 | | | $ | 3,024 | | | | 8.8 | % |
*Excludes the Olympics in 2010 and acquisition-related accounting revisions and costs in 2011.
NM=comparison not meaningful
Cable Networks
For the third quarter of 2011, revenue from the Cable Networks segment increased 12.0% to $2.1 billion compared to $1.9 billion in the third quarter of 2010, driven by a 10.2% increase in distribution revenue, a 9.5% increase in advertising revenue and a 37.2% increase in other revenue primarily due to increases in the licensing of owned content from the cable production studio. Operating cash flow decreased 2.0% to $751 million compared to $767 million in the third quarter of 2010, reflecting increased investment in original programming and acquisition-related accounting revisions totaling $80 million. Excluding these accounting revisions, Cable Networks operating cash flow increased 8.5% to $831 million (see Table 6).
For the nine months ended September 30, 2011, revenue from the Cable Networks segment increased 12.6% to $6.3 billion compared to $5.6 billion in 2010. Operating cash flow increased 2.0% to $2.4 billion. Excluding acquisition-related accounting revisions totaling $130 million, operating cash flow increased 7.6% to $2.5 billion (see Table 6).
Broadcast Television
For the third quarter of 2011, revenue from the Broadcast Television segment increased 2.9% to $1.5 billion, reflecting higher content licensing revenue, partially offset by ratings pressure at the NBC broadcast network and lower political advertising at NBC owned local stations. In the third quarter, the Broadcast Television segment generated an operating cash flow loss of $7 million compared to operating cash flow of $70 million in the third quarter of 2010, reflecting increased investment in primetime, news programming, and local stations, as well as acquisition-related accounting revisions totaling $24 million. Excluding these accounting revisions, third quarter 2011 Broadcast Television operating cash flow was $17 million compared to $70 million in last year’s third quarter (see Table 6).
For the nine months ended September 30, 2011, revenue from the Broadcast Television segment decreased 8.4% to $4.6 billion compared to $5.0 billion in 2010 due to $782 million of revenue generated by the 2010 Vancouver Olympics. Excluding the impact of the Olympics, revenue increased 8.7%. Operating cash flow was $203 million compared to $63 million in the first nine months of 2010. Excluding the $223 million loss from the Olympics in 2010 and acquisition-related accounting revisions totaling $80 million, operating cash flow decreased 1.1% to $283 million (see Table 6).
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Filmed Entertainment
For the third quarter of 2011, revenue from the Filmed Entertainment segment decreased 7.8% to $1.1 billion compared to $1.2 billion in the third quarter of 2010, driven by lower theatrical revenue compared to the prior year, partially offset by higher home entertainment revenue fromBridesmaids and the international release ofFast Five. Third quarter operating cash flow decreased 16.9% to $54 million compared to $66 million in the third quarter of 2010, reflecting lower revenue partially offset by favorable acquisition-related accounting adjustments totaling $36 million. Excluding these accounting revisions, third quarter 2011 operating cash flow was $18 million compared to $66 million in last year’s third quarter (see Table 6).
For the nine months ended September 30, 2011, revenue from the Filmed Entertainment segment increased 1.2% to $3.3 billion and generated an operating cash flow loss of $65 million compared to operating cash flow of $58 million in the first nine months of 2010. Excluding favorable acquisition-related accounting revisions totaling $16 million, the Filmed Entertainment segment generated an operating cash flow loss of $81 million compared to operating cash flow of $58 million (see Table 6).
Theme Parks
On July 1, 2011, NBCUniversal completed the acquisition of the 50% interest in Universal Orlando that it did not previously own. As a result, Theme Parks segment revenue includes the results of Universal Hollywood, Universal Orlando and international licensing fees. Operating cash flow includes the results of Universal Hollywood and Universal Orlando.
For the third quarter of 2011, revenue from the Theme Parks segment increased 9.1% to $580 million compared to $531 million in the third quarter of 2010, reflecting strong performances at the Hollywood and Orlando parks. Third quarter operating cash flow increased 12.6% to $285 million compared to $252 million in the same period last year, driven by the strength ofThe Wizarding World of Harry PotterTM attraction in Orlando and theKing KongTM attraction in Hollywood.
For the nine months ended September 30, 2011, revenue from the Theme Parks segment increased 32.9% to $1.5 billion compared to $1.1 billion in 2010. Operating cash flow increased 61.2% to $644 million compared to $399 million in the first nine months of 2010.
Headquarters, Other and Eliminations
NBCUniversal Headquarters, Other and Eliminations include overhead and eliminations between the NBCUniversal businesses. Also included in these expenses are non-recurring transaction-related costs during the third quarter of 2011 that totaled $14 million. For the nine months ended September 30, 2011, non-recurring transaction-related costs totaled $112 million.
Corporate, Other and Eliminations
Pro forma Corporate, Other and Eliminations includes corporate operations, Comcast-Spectacor and eliminations between Comcast’s businesses. For the third quarter of 2011, Corporate, Other and Eliminations revenue was ($192) million compared to ($189) million in 2010, reflecting higher intersegment eliminations. The operating cash flow loss was $91 million compared to a loss of $94 million for the same time period in 2010, reflecting reduced corporate expenses.
For the nine months ended September 30, 2011, Corporate, Other and Eliminations revenue was ($523) million compared to ($543) million in 2010. The operating cash flow loss was $256 million compared to a loss of $275 million in the first nine months of 2010.
Notes:
| 1 | Earnings per share amounts are presented on a diluted basis. |
| | All percentages are calculated on whole numbers. Differences may exist due to rounding. |
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Conference Call Information
Comcast Corporation will host a conference call with the financial community today, November 2, 2011 at 8:30 a.m. Eastern Time (ET). The conference call and related materials will be broadcast live and posted on its Investor Relations website atwww.cmcsa.com orwww.cmcsk.com. Those parties interested in participating via telephone should dial (800) 263-8495 with the conference ID number 12595426. A replay of the call will be available starting at 12:30 p.m. ET on November 2, 2011, on the Investor Relations website or by telephone. To access the telephone replay, which will be available until Wednesday, November 9, 2011 at midnight ET, please dial (800) 585-8367 and enter the conference ID number 12595426. To automatically receive Comcast financial news by email, please visitwww.cmcsa.com orwww.cmcsk.com and subscribe to email alerts.
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Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements. Readers are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual events or our actual results to differ materially from those expressed in any such forward-looking statements. Readers are directed to Comcast’s periodic and other reports filed with the Securities and Exchange Commission (SEC) for a description of such risks and uncertainties. We undertake no obligation to update any forward-looking statements.
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Non-GAAP Financial Measures
In this discussion, we sometimes refer to financial measures that are not presented according to generally accepted accounting principles in the U.S. (GAAP). Certain of these measures are considered “non-GAAP financial measures” under the SEC regulations; those rules require the supplemental explanations and reconciliations that are in Comcast’s Form 8-K (Quarterly Earnings Release) furnished to the SEC.
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About Comcast Corporation
Comcast Corporation (Nasdaq: CMCSA, CMCSK) (www.comcast.com) is one of the world’s leading media, entertainment and communications companies. Comcast is principally involved in the operation of cable systems through Comcast Cable Communications and in the development, production and distribution of entertainment, news, sports and other content for global audiences through NBCUniversal. Comcast Cable Communications is one of the nation’s largest video, high-speed Internet and phone providers to residential and business customers. Comcast is the majority owner and manager of NBCUniversal, which owns and operates entertainment and news cable networks, the NBC and Telemundo broadcast networks, local television station groups, television production operations, a major motion picture company and theme parks.
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TABLE 1 Condensed Consolidated Statement of Income (Unaudited) | |  |
| | | | | | | | | | | | | | | | |
| | |
| (in millions, except per share data) | | Three Months Ended
September 30, | | | Nine Months Ended
September 30, | |
| | | 2010 | | | 2011 | | | 2010 | | | 2011 | |
Revenue | | $ | 9,489 | | | $ | 14,339 | | | $ | 28,216 | | | $ | 40,800 | |
| | | | |
Operating costs and expenses | | | 5,911 | | | | 9,765 | | | | 17,336 | | | | 27,359 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Operating cash flow | | | 3,578 | | | | 4,574 | | | | 10,880 | | | | 13,441 | |
| | | | |
Depreciation expense | | | 1,377 | | | | 1,540 | | | | 4,167 | | | | 4,504 | |
Amortization expense | | | 247 | | | | 393 | | | | 746 | | | | 1,134 | |
| | | | | | | | | | | | | | | | |
| | | 1,624 | | | | 1,933 | | | | 4,913 | | | | 5,638 | |
| | | | | | | | | | | | | | | | |
Operating income | | | 1,954 | | | | 2,641 | | | | 5,967 | | | | 7,803 | |
| | | | |
Other income (expense) | | | | | | | | | | | | | | | | |
Interest expense | | | (545 | ) | | | (637 | ) | | | (1,612 | ) | | | (1,863 | ) |
Investment income (loss), net | | | 109 | | | | (147 | ) | | | 210 | | | | 3 | |
Equity in net income (losses) of investees, net | | | (40 | ) | | | (40 | ) | | | (98 | ) | | | (40 | ) |
Other income (expense), net | | | (24 | ) | | | (12 | ) | | | (69 | ) | | | (82 | ) |
| | | | | | | | | | | | | | | | |
| | | (500 | ) | | | (836 | ) | | | (1,569 | ) | | | (1,982 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Income before income taxes | | | 1,454 | | | | 1,805 | | | | 4,398 | | | | 5,821 | |
| | | | |
Income tax expense | | | (584 | ) | | | (639 | ) | | | (1,763 | ) | | | (2,249 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Net income from consolidated operations | | | 870 | | | | 1,166 | | | | 2,635 | | | | 3,572 | |
| | | | |
Net (income) loss attributable to noncontrolling interests | | | (3 | ) | | | (258 | ) | | | (18 | ) | | | (699 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Net income attributable to Comcast Corporation | | $ | 867 | | | $ | 908 | | | $ | 2,617 | | | $ | 2,873 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | | |
Diluted earnings per common share attributable to Comcast Corporation shareholders | | $ | 0.31 | | | $ | 0.33 | | | $ | 0.93 | | | $ | 1.03 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | | |
Dividends declared per common share attributable to Comcast Corporation shareholders | | $ | 0.0945 | | | $ | 0.1125 | | | $ | 0.2835 | | | $ | 0.3375 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | | |
| | | | |
Diluted weighted-average number of common shares | | | 2,810 | | | | 2,761 | | | | 2,826 | | | | 2,789 | |
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TABLE 2 Condensed Consolidated Balance Sheet (Unaudited) | | |
| | | | | | | | |
| | |
| (in millions) | | December 31,
2010 | | | September 30,
2011 | |
ASSETS | | | | | | | | |
| | |
Current Assets | | | | | | | | |
Cash and cash equivalents | | $ | 5,984 | | | $ | 1,806 | |
Receivables, net | | | 1,855 | | | | 4,096 | |
Programming rights | | | 122 | | | | 1,055 | |
Other current assets | | | 925 | | | | 1,625 | |
| | | | | | | | |
Total current assets | | | 8,886 | | | | 8,582 | |
| | | | | | | | |
| | |
Film and television costs | | | 460 | | | | 5,369 | |
| | |
Investments | | | 6,670 | | | | 9,575 | |
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Property and equipment, net | | | 23,515 | | | | 27,441 | |
| | |
Franchise rights | | | 59,442 | | | | 59,442 | |
| | |
Goodwill | | | 14,958 | | | | 26,831 | |
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Other intangible assets, net | | | 3,431 | | | | 17,386 | |
| | |
Other noncurrent assets, net | | | 1,172 | | | | 2,201 | |
| | | | | | | | |
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| | $ | 118,534 | | | $ | 156,827 | |
| | | | | | | | |
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LIABILITIES AND EQUITY | | | | | | | | |
| | |
Current Liabilities | | | | | | | | |
Accounts payable and accrued expenses related to trade creditors | | $ | 3,291 | | | $ | 5,455 | |
Accrued participations and residuals | | | - | | | | 1,247 | |
Accrued expenses and other current liabilities | | | 3,143 | | | | 4,996 | |
Current portion of long-term debt | | | 1,800 | | | | 2,448 | |
| | | | | | | | |
Total current liabilities | | | 8,234 | | | | 14,146 | |
| | | | | | | | |
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Long-term debt, less current portion | | | 29,615 | | | | 38,522 | |
| | |
Deferred income taxes | | | 28,246 | | | | 29,663 | |
| | |
Other noncurrent liabilities | | | 7,862 | | | | 11,657 | |
| | |
Redeemable noncontrolling interests | | | 143 | | | | 15,827 | |
| | |
Equity | | | | | | | | |
Comcast Corporation shareholders’ equity | | | 44,354 | | | | 46,683 | |
Noncontrolling interests | | | 80 | | | | 329 | |
| | | | | | | | |
Total Equity | | | 44,434 | | | | 47,012 | |
| | | | | | | | |
| | |
| | $ | 118,534 | | | $ | 156,827 | |
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TABLE 3 Consolidated Statement of Cash Flows (Unaudited) | | |
| | | | | | | | |
| |
| (in millions) | | Nine Months Ended
September 30, | |
| | | 2010 | | | 2011 | |
| | |
OPERATING ACTIVITIES | | | | | | | | |
Net income from consolidated operations | | $ | 2,635 | | | $ | 3,572 | |
Adjustments to reconcile net income from consolidated operations to net cash provided by operating activities: | | | | | | | | |
Depreciation and amortization | | | 4,913 | | | | 5,638 | |
Amortization of film and television costs | | | 99 | | | | 4,769 | |
Share-based compensation | | | 226 | | | | 260 | |
Noncash interest expense (income), net | | | 105 | | | | 111 | |
Equity in net (income) losses of investees, net | | | 98 | | | | 40 | |
Net (gain) loss on investment activity and other | | | (78 | ) | | | 325 | |
Deferred income taxes | | | (241 | ) | | | 770 | |
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: | | | | | | | | |
Change in receivables, net | | | (145 | ) | | | 290 | |
Change in film and television costs | | | (90 | ) | | | (5,342 | ) |
Change in accounts payable and accrued expenses related to trade creditors | | | 57 | | | | (242 | ) |
Change in other operating assets and liabilities | | | 153 | | | | 15 | |
| | | | | | | | |
| | |
Net cash provided by operating activities | | | 7,732 | | | | 10,206 | |
| | | | | | | | |
| | |
INVESTING ACTIVITIES | | | | | | | | |
Capital expenditures | | | (3,429 | ) | | | (3,785 | ) |
Cash paid for intangible assets | | | (372 | ) | | | (505 | ) |
Acquisitions, net of cash acquired | | | (183 | ) | | | (6,407 | ) |
Proceeds from sales of investments | | | 21 | | | | 154 | |
Purchases of investments | | | (54 | ) | | | (85 | ) |
Other | | | 149 | | | | (33 | ) |
| | | | | | | | |
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Net cash provided by (used in) investing activities | | | (3,868 | ) | | | (10,661 | ) |
| | | | | | | | |
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FINANCING ACTIVITIES | | | | | | | | |
Proceeds from (repayments of) short-term borrowings, net | | | - | | | | 1,642 | |
Proceeds from borrowings | | | 2,420 | | | | - | |
Repurchases and repayments of debt | | | (649 | ) | | | (2,813 | ) |
Repurchases and retirements of common stock | | | (892 | ) | | | (1,650 | ) |
Dividends paid | | | (800 | ) | | | (881 | ) |
Distributions to noncontrolling interests | | | (48 | ) | | | (237 | ) |
Other | | | (24 | ) | | | 216 | |
| | | | | | | | |
| | |
Net cash provided by (used in) financing activities | | | 7 | | | | (3,723 | ) |
| | | | | | | | |
| | |
Increase (decrease) in cash and cash equivalents | | | 3,871 | | | | (4,178 | ) |
| | |
Cash and cash equivalents, beginning of period | | | 671 | | | | 5,984 | |
| | | | | | | | |
| | |
Cash and cash equivalents, end of period | | $ | 4,542 | | | $ | 1,806 | |
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TABLE 4 Supplemental Information Alternate Presentation of Net Cash Provided by Operating Activities and Free Cash Flow (Unaudited) | | |
| | | | | | | | | | | | | | | | | | | | |
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| (in millions) | | Three Months Ended
September 30, | | | | | | | Nine Months Ended
September 30, | |
| | | 2010 | | | 2011 | | | | | | | 2010 | | | 2011 | |
| | | | | | |
Operating income | | $ | 1,954 | | | $ | 2,641 | | | | | | | $ | 5,967 | | | $ | 7,803 | |
Depreciation and amortization | | | 1,624 | | | | 1,933 | | | | | | | | 4,913 | | | | 5,638 | |
| | | | | | | | | | | | | | | | | | | | |
Operating income before depreciation and amortization | | | 3,578 | | | | 4,574 | | | | | | | | 10,880 | | | | 13,441 | |
Noncash share-based compensation expense | | | 73 | | | | 86 | | | | | | | | 226 | | | | 260 | |
Changes in operating assets and liabilities | | | 60 | | | | (300 | ) | | | | | | | (10 | ) | | | (721 | ) |
| | | | | | | | | | | | | | | | | | | | |
Cash basis operating income | | | 3,711 | | | | 4,360 | | | | | | | | 11,096 | | | | 12,980 | |
Payments of interest | | | (661 | ) | | | (612 | ) | | | | | | | (1,630 | ) | | | (1,809 | ) |
Payments of income taxes | | | (668 | ) | | | (596 | ) | | | | | | | (1,794 | ) | | | (1,166 | ) |
Proceeds from interest, dividends and other nonoperating items | | | 18 | | | | 98 | | | | | | | | 60 | | | | 201 | |
| | | | | | | | | | | | | | | | | | | | |
Net Cash Provided by Operating Activities | | $ | 2,400 | | | $ | 3,250 | | | | | | | $ | 7,732 | | | $ | 10,206 | |
| | | | | | | | | | | | | | | | | | | | |
Capital expenditures | | | (1,366 | ) | | | (1,408 | ) | | | | | | | (3,429 | ) | | | (3,785 | ) |
Cash paid for capitalized software and other intangible assets | | | (135 | ) | | | (209 | ) | | | | | | | (372 | ) | | | (505 | ) |
Distributions to other non-controlling interests | | | - | | | | (62 | ) | | | | | | | - | | | | (237 | ) |
Nonoperating items | | | 37 | | | | (34 | ) | | | | | | | 68 | | | | (15 | ) |
| | | | | | | | | | | | | | | | | | | | |
Free cash flow (including Economic stimulus packages) | | $ | 936 | | | $ | 1,537 | | | | | | | $ | 3,999 | | | $ | 5,664 | |
Economic stimulus packages | | | 89 | | | | (145 | ) | | | | | | | 268 | | | | (531 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Consolidated Free Cash Flow | | $ | 1,025 | | | $ | 1,392 | | | | | | | $ | 4,267 | | | $ | 5,133 | |
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Reconciliation of EPS Excluding Unfavorable Income Tax Adjustments and NBCUniversal Transaction and Related Costs (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| (in millions, except per share data) | | Three Months Ended September 30, | | | | | | | Nine Months Ended September 30, | |
| | | 2010 | | | 2011 | | | | | | | 2010 | | | 2011 | |
| | | $ EPS(1) | | | $ EPS(1) | | | | | | | $ EPS(1) | | | $ EPS(1) | |
| | | | | | | | | | |
Net Income attributable to Comcast Corporation | | $ | 867 | | | $ | 0.31 | | | $ | 908 | | | $ | 0.33 | | | | | | | $ | 2,617 | | | $ | 0.93 | | | $ | 2,873 | | | $ | 1.03 | |
Growth % | | | | | | | | | | | 4.7 | % | | | 6.5 | % | | | | | | | | | | | | | | | 9.8 | % | | | 10.8 | % |
| | | | | | | | | | |
Unfavorable Income Tax Adjustments(2) | | | - | | | | - | | | | - | | | | - | | | | | | | | - | | | | - | | | | 137 | | | | 0.05 | |
Comcast Costs Related to the NBCUniversal Transaction, net of tax(3) | | | 39 | | | | 0.01 | | | | - | | | | - | | | | | | | | 92 | | | | 0.03 | | | | 51 | | | | 0.02 | |
NBCUniversal Transaction-Related Costs, net of tax(4) | | | - | | | | - | | | | 4 | | | | 0.00 | | | | | | | | - | | | | - | | | | 20 | | | | 0.00 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Net Income attributable to Comcast Corporation (excluding Unfavorable Income Tax Adjustments and NBCUniversal Transaction and Related Costs) | | $ | 906 | | | $ | 0.32 | | | $ | 912 | | | $ | 0.33 | | | | | | | $ | 2,709 | | | $ | 0.96 | | | $ | 3,081 | | | $ | 1.10 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Growth % | | | | | | | | | | | 0.7 | % | | | 3.1 | % | | | | | | | | | | | | | | | 13.7 | % | | | 14.6 | % |
| | (1) | Based on diluted weighted-average number of common shares for the respective periods as presented in Table 1. |
| | (2) | 2011 Net Income attributable to Comcast Corporation includes an unfavorable tax adjustment due to new state tax legislation of $137 million in total. |
| | (3) | 3rd quarter 2010 Net Income attributable to Comcast Corporation includes $21 million of operating costs and expenses, $2 million of interest expense and $43 million of other expense ($66 million in total, $39 million net of tax) related to the NBCUniversal transaction. 2010 year to date Net Income attributable to Comcast Corporation includes $57 million of operating costs and expenses, $6 million of interest expense and $91 million of other expense ($154 million in total, $92 million net of tax) related to the NBCUniversal transaction. 2011 year to date Net Income attributable to Comcast Corporation includes $63 million of operating costs and expenses and $16 million of other expense ($80 million in total, $51 million net of tax) related to the NBCUniversal transaction. |
| | (4) | 1st quarter 2011 Net Income attributable to Comcast Corporation includes $44 million in transaction-related costs, $14 million net of tax and non-controlling interest. 2nd quarter 2011 Net Income attributable to Comcast Corporation includes $6 million in transaction-related costs, $2 million net of tax and non-controlling interest. 3rd quarter 2011 Net Income attributable to Comcast Corporation includes $14 million in transaction-related costs, $4 million net of tax and non-controlling interest. |
Note: Minor differences may exist due to rounding.
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TABLE 5 Reconciliation of GAAP to Pro Forma(1) Financial Information (Unaudited) | | |
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| | | | | | | | | Corporate, Other | | | | |
| | | GAAP | | | NBCUniversal | | | and Eliminations | | | Total | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | Pro Forma | | | | | | | |
| (in millions) | | | | | | | | Corporate, | | | | | | | | | Pro | | | | | | Corporate, | | | | | | Total | |
| | | Cable | | | Total | | | Other and | | | | | | Pro Forma | | | Forma | | | Pro Forma | | | Other and | | | Pro Forma | | | Pro | |
| | | Communications | | | NBCU | | | Eliminations | | | Total | | | Adjustments(1) | | | NBCU | | | Adjustments(1) | | | Eliminations | | | Adjustments(1) | | | Forma | |
Three Months Ended September 30, 2010 | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 8,885 | | | $ | 670 | | | ($ | 66 | ) | | $ | 9,489 | | | $ | 4,304 | | | $ | 4,974 | | | ($ | 123 | ) | | ($ | 189 | ) | | $ | 4,181 | | | $ | 13,670 | |
Operating Costs and Expenses | | | 5,406 | | | | 455 | | | | 50 | | | | 5,911 | | | | 3,471 | | | | 3,926 | | | | (145 | ) | | | (95 | ) | | | 3,326 | | | | 9,237 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating Cash Flow | | $ | 3,479 | | | $ | 215 | | | ($ | 116 | ) | | $ | 3,578 | | | $ | 833 | | | $ | 1,048 | | | $ | 22 | | | ($ | 94 | ) | | $ | 855 | | | $ | 4,433 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Three Months Ended September 30, 2011 | | | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 9,331 | | | $ | 5,200 | | | ($ | 192 | ) | | $ | 14,339 | | | | - | | | $ | 5,200 | | | | - | | | ($ | 192 | ) | | | - | | | $ | 14,339 | |
Operating Costs and Expenses | | | 5,617 | | | | 4,249 | | | | (101 | ) | | | 9,765 | | | | - | | | | 4,249 | | | | - | | | | (101 | ) | | | - | | | | 9,765 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating Cash Flow | | $ | 3,714 | | | $ | 951 | | | ($ | 91 | ) | | $ | 4,574 | | | | - | | | $ | 951 | | | | - | | | ($ | 91 | ) | | | - | | | $ | 4,574 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
Nine Months Ended September 30, 2010 | | | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 26,313 | | | $ | 2,025 | | | ($ | 122 | ) | | $ | 28,216 | | | $ | 12,658 | | | $ | 14,683 | | | ($ | 421 | ) | | ($ | 543 | ) | | $ | 12,237 | | | $ | 40,453 | |
Operating Costs and Expenses | | | 15,714 | | | | 1,412 | | | | 210 | | | | 17,336 | | | | 10,716 | | | | 12,128 | | | | (478 | ) | | | (268 | ) | | | 10,238 | | | | 27,574 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating Cash Flow | | $ | 10,599 | | | $ | 613 | | | ($ | 332 | ) | | $ | 10,880 | | | $ | 1,942 | | | $ | 2,555 | | | $ | 57 | | | ($ | 275 | ) | | $ | 1,999 | | | $ | 12,879 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Nine Months Ended September 30, 2011 | | | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 27,756 | | | $ | 13,522 | | | ($ | 478 | ) | | $ | 40,800 | | | $ | 1,864 | | | $ | 15,386 | | | ($ | 45 | ) | | ($ | 523 | ) | | $ | 1,819 | | | $ | 42,619 | |
Operating Costs and Expenses | | | 16,407 | | | | 11,112 | | | | (160 | ) | | | 27,359 | | | | 1,557 | | | | 12,669 | | | | (107 | ) | | | (267 | ) | | | 1,450 | | | | 28,809 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating Cash Flow | | $ | 11,349 | | | $ | 2,410 | | | ($ | 318 | ) | | $ | 13,441 | | | $ | 307 | | | $ | 2,717 | | | $ | 62 | | | ($ | 256 | ) | | $ | 369 | | | $ | 13,810 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (1) | Pro Forma information is presented as if the NBCUniversal transaction and the acquisition of the remaining 50% interest of UCDP occurred January 1, 2010. Pro forma data does not include adjustments for costs related to integration activities, cost savings or synergies that have been or may be achieved by the combined businesses. Pro forma amounts are not necessarily indicative of what our results would have been had we operated the NBCUniversal contributed businesses or UCDP since January 1, 2010, nor of our future results. |
Reconciliation of GAAP to Pro Forma(1)NBCUniversal Segment Financial Information (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | 2010 | | | | | 2011 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | Pro Forma Combined | |
| | | Actual(2) | | | Pro Forma(3) | | | Pro Forma
Combined(4) | | | | | Actual(2) | | | Pro Forma(3) | | | Pro Forma
Combined(4) | | | | | | | Increase/(Decrease) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Comcast
Content
Business | | | NBCUniversal
Businesses | | | Nine Months
Ended September 30 | | | | | Nine Months
Ended September 30 | | | NBCUniversal
Businesses | | | Nine Months
Ended September 30 | | | | | | | $ | | | % | |
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cable Networks | | $ | 2,025 | | | $ | 3,559 | | | $ | 5,584 | | | | | $ | 5,902 | | | $ | 388 | | | $ | 6,290 | | | | | | | $ | 706 | | | | 12.6 | % |
Broadcast Television | | | - | | | | 4,976 | | | | 4,976 | | | | | | 4,094 | | | | 464 | | | | 4,558 | | | | | | | | (418 | ) | | | (8.4 | %) |
Filmed Entertainment | | | - | | | | 3,287 | | | | 3,287 | | | | | | 2,972 | | | | 353 | | | | 3,325 | | | | | | | | 38 | | | | 1.2 | % |
Theme Parks | | | - | | | | 1,122 | | | | 1,122 | | | | | | 1,376 | | | | 115 | | | | 1,491 | | | | | | | | 369 | | | | 32.9 | % |
Headquarters, other and eliminations | | | - | | | | (286 | ) | | | (286 | ) | | | | | (822 | ) | | | 544 | | | | (278 | ) | | | | | | | 8 | | | | 2.9 | % |
Total Revenue | | $ | 2,025 | | | $ | 12,658 | | | $ | 14,683 | | | | | $ | 13,522 | | | $ | 1,864 | | | $ | 15,386 | | | | | | | $ | 703 | | | | 4.8 | % |
| | | | | | | | | | | |
Operating Cash Flow | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cable Networks | | $ | 613 | | | $ | 1,753 | | | $ | 2,366 | | | | | $ | 2,262 | | | $ | 152 | | | $ | 2,414 | | | | | | | $ | 48 | | | | 2.0 | % |
Broadcast Television | | | - | | | | 63 | | | | 63 | | | | | | 218 | | | | (15 | ) | | | 203 | | | | | | | | 140 | | | | 222.6 | % |
Filmed Entertainment | | | - | | | | 58 | | | | 58 | | | | | | (62 | ) | | | (3 | ) | | | (65 | ) | | | | | | | (123 | ) | | | (212.0 | %) |
Theme Parks | | | - | | | | 399 | | | | 399 | | | | | | 607 | | | | 37 | | | | 644 | | | | | | | | 245 | | | | 61.2 | % |
Headquarters, other and eliminations | | | - | | | | (331 | ) | | | (331 | ) | | | | | (615 | ) | | | 136 | | | | (479 | ) | | | | | | | (148 | ) | | | (44.8 | %) |
Total Operating Cash Flow | | $ | 613 | | | $ | 1,942 | | | $ | 2,555 | | | | | $ | 2,410 | | | $ | 307 | | | $ | 2,717 | | | | | | | $ | 162 | | | | 6.3 | % |
| | (1) | Pro Forma information is presented as if the NBCUniversal transaction and the acquisition of the remaining 50% interest of UCDP occurred January 1, 2010. Pro forma data does not include adjustments for costs related to integration activities, cost savings or synergies that have been or may be achieved by the combined businesses. Pro forma amounts are not necessarily indicative of what our results would have been had we operated the NBCUniversal contributed businesses or UCDP since January 1, 2010, nor of our future results. |
| | (2) | Actual amounts for our reportable segments include the results of operations for the Comcast Content Business for the three and nine months ended September 30, 2011 and 2010, and the results of operations for the NBCUniversal acquired businesses and UCDP for the three months ended September 30, 2011 and for the period January 29, 2011 through September 30, 2011. Headquarters, other and eliminations includes the elimination of the results of operations for UCDP for the period January 29, 2011 through June 30, 2011 in order to reconcile to our condensed consolidated financial statements because UCDP was recorded as an equity method investment during that period. |
| | (3) | Pro forma amounts include the results of operations for the NBCUniversal acquired businesses and UCDP for the period January 1, 2011 through January 28, 2011 and for the three and nine months ended September 30, 2010. These amounts also include pro forma adjustments as if the NBCUniversal and UCDP transactions had occurred on January 1, 2010, including the effects of acquisition accounting and the elimination of operating costs and expenses directly related to the transactions, but do not include adjustments for costs related to integration activities, cost savings or synergies that have been or may be achieved by the combined businesses. Pro forma amounts are not necessarily indicative of what the results would have been had we operated the businesses since January 1, 2010. |
| | (4) | Pro forma combined amounts represent our pro forma results of operations as if the NBCUniversal and UCDP transactions had occurred on January 1, 2010 but are not necessarily indicative of what the results would have been had we operated the businesses since January 1, 2010. |
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| | |
TABLE 6 Reconciliation of Consolidated Pro Forma Revenue and Operating Cash Flow Excluding 2010 Olympics, Acquisition Accounting Revisions and NBCUniversal Transaction-Related Costs (Unaudited) | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| (in millions) | | 2010 | | | 2011 | | | Growth % | | | 2010 | | | 2011 | | | Growth % | |
| | | | | | |
Revenue | | $ | 13,670 | | | $ | 14,339 | | | | 4.9 | % | | $ | 40,453 | | | $ | 42,619 | | | | 5.4 | % |
| | | | | | |
2010 Olympics | | | - | | | | - | | | | | | | | (782 | ) | | | - | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Revenue excluding 2010 Olympics | | $ | 13,670 | | | $ | 14,339 | | | | 4.9 | % | | $ | 39,671 | | | $ | 42,619 | | | | 7.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | 2010 | | | 2011 | | | Growth % | | | 2010 | | | 2011 | | | Growth % | |
| | | | | | |
Operating Cash Flow | | $ | 4,433 | | | $ | 4,574 | | | | 3.2 | % | | $ | 12,879 | | | $ | 13,810 | | | | 7.2 | % |
| | | | | | |
2010 Olympics | | | - | | | | - | | | | | | | | 223 | | | | - | | | | | |
Acquisition Accounting Revisions(1) | | | - | | | | 68 | | | | | | | | - | | | | 195 | | | | | |
NBCUniversal Transaction-Related Costs(2) | | | - | | | | 14 | | | | | | | | - | | | | 112 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating Cash Flow excluding 2010 Olympics, Acquisition Accounting Revisions and NBCUniversal Transaction-Related Costs | | $ | 4,433 | | | $ | 4,656 | | | | 5.0 | % | | $ | 13,102 | | | $ | 14,117 | | | | 7.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Reconciliation of Consolidated Pro Forma NBCUniversal Revenue and Operating Cash Flow Excluding 2010 Olympics, Acquisition Accounting Revisions and NBCUniversal Transaction-Related Costs (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| (in millions) | | 2010 | | | 2011 | | | Growth % | | | 2010 | | | 2011 | | | Growth % | |
| | | | | | |
Revenue | | $ | 4,974 | | | $ | 5,200 | | | | 4.6 | % | | $ | 14,683 | | | $ | 15,386 | | | | 4.8 | % |
| | | | | | |
2010 Olympics | | | - | | | | - | | | | | | | | (782 | ) | | | - | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Revenue excluding 2010 Olympics | | $ | 4,974 | | | $ | 5,200 | | | | 4.6 | % | | $ | 13,901 | | | $ | 15,386 | | | | 10.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | 2010 | | | 2011 | | | Growth % | | | 2010 | | | 2011 | | | Growth % | |
| | | | | | |
Operating Cash Flow | | $ | 1,048 | | | $ | 951 | | | | (9.3 | %) | | $ | 2,555 | | | $ | 2,717 | | | | 6.3 | % |
| | | | | | |
2010 Olympics | | | - | | | | - | | | | | | | | 223 | | | | - | | | | | |
Acquisition Accounting Revisions(1) | | | - | | | | 68 | | | | | | | | - | | | | 195 | | | | | |
NBCUniversal Transaction-Related Costs(2) | | | - | | | | 14 | | | | | | | | - | | | | 112 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating Cash Flow excluding 2010 Olympics, Acquisition Accounting Revisions and NBCUniversal Transaction-Related Costs | | $ | 1,048 | | | $ | 1,033 | | | | (1.4 | %) | | $ | 2,778 | | | $ | 3,024 | | | | 8.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Reconciliation of Pro Forma Cable Networks Operating Cash Flow Excluding Acquisition Accounting Revisions (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| (in millions) | | 2010 | | | 2011 | | | Growth % | | | 2010 | | | 2011 | | | Growth % | |
| | | | | | |
Operating Cash Flow | | $ | 767 | | | $ | 751 | | | | (2.0 | %) | | $ | 2,366 | | | $ | 2,414 | | | | 2.0 | % |
| | | | | | |
Acquisition Accounting Revisions(1) | | | - | | | | 80 | | | | | | | | - | | | | 130 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating Cash Flow excluding Acquisition Accounting Revisions | | $ | 767 | | | $ | 831 | | | | 8.5 | % | | $ | 2,366 | | | $ | 2,544 | | | | 7.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Reconciliation of Pro Forma Broadcast Television Revenue and Operating Cash Flow Excluding 2010 Olympics and Acquisition Accounting Revisions (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| (in millions) | | 2010 | | | 2011 | | | Growth % | | | 2010 | | | 2011 | | | Growth % | |
| | | | | | |
Revenue | | $ | 1,468 | | | $ | 1,511 | | | | 2.9 | % | | $ | 4,976 | | | $ | 4,558 | | | | (8.4 | %) |
| | | | | | |
2010 Olympics | | | - | | | | - | | | | | | | | (782 | ) | | | - | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Revenue excluding 2010 Olympics | | $ | 1,468 | | | $ | 1,511 | | | | 2.9 | % | | $ | 4,194 | | | $ | 4,558 | | | | 8.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | 2010 | | | 2011 | | | Growth % | | | 2010 | | | 2011 | | | Growth % | |
| | | | | | |
Operating Cash Flow | | $ | 70 | | | ($ | 7 | ) | | | (109.6 | %) | | $ | 63 | | | $ | 203 | | | | 222.6 | % |
| | | | | | |
2010 Olympics | | | - | | | | - | | | | | | | | 223 | | | | - | | | | | |
Acquisition Accounting Revisions(1) | | | - | | | | 24 | | | | | | | | - | | | | 80 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating Cash Flow excluding 2010 Olympics and Acquisition Accounting Revisions | | $ | 70 | | | $ | 17 | | | | (75.5 | %) | | $ | 286 | | | $ | 283 | | | | (1.1 | %) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Reconciliation of Pro Forma Filmed Entertainment Operating Cash Flow Excluding Acquisition Accounting Revisions (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | |
| (in millions) | | 2010 | | | 2011 | | | Growth % | | | 2010 | | | 2011 | | | Growth % | |
| | | | | | |
Operating Cash Flow | | $ | 66 | | | $ | 54 | | | | (16.9 | %) | | $ | 58 | | | ($ | 65 | ) | | | (212.0 | %) |
| | | | | | |
Acquisition Accounting Revisions(1) | | | - | | | | (36 | ) | | | | | | | - | | | | (16 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating Cash Flow excluding Acquisition Accounting Revisions | | $ | 66 | | | $ | 18 | | | | (72.2 | %) | | $ | 58 | | | ($ | 81 | ) | | | (239.7 | %) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | (1) | Acquisition accounting revisions include the effect of changes in estimates related to the acquisition of NBCUniversal. |
| | (2) | NBCUniversal transaction-related costs are associated with severance and other related compensation charges. |
| | Note: | Minor differences may exist due to rounding. |
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