Full Year 2015 Highlights:
- Consolidated Revenue Increased 8.3%,
Operating Cash Flow Increased 7.7%, Operating Income Increased 7.3%
and Free Cash Flow Increased 9.4% to $8.9 Billion
- Earnings per Share Increased 1.3% to
$3.24; On an Adjusted Basis, EPS Increased 10.9% to $3.25
- Cable Communications Revenue Increased
6.2% and Operating Cash Flow Increased 5.6%
- Customer Relationships Increased by
666,000, an 85.9% Improvement Compared to 2014; Best Video Customer
Results in 9 Years; Best High-Speed Internet Customer Results in 8
Years
- NBCUniversal Revenue Increased 11.9%
and Operating Cash Flow Increased 14.8%
4th Quarter 2015 Highlights:
- Consolidated Revenue Increased 8.5%,
Operating Cash Flow Increased 6.7% and Operating Income Increased
5.7%
- Earnings per Share Increased 6.8% to
$0.79; On an Adjusted Basis, EPS Increased 5.2% to $0.81
- Cable Communications Revenue Increased
5.9% and Operating Cash Flow Increased 4.6%
- Customer Relationships Increased by
281,000, a 57.6% Increase from the Fourth Quarter of 2014; Best
Video Customer Results for a Quarter in 8 Years; Best Fourth
Quarter High-Speed Internet Customer Results in 9 Years
- NBCUniversal Revenue Increased 13.0%
and Operating Cash Flow Increased 8.7%
Dividends and Share Repurchase:
- Dividends and Share Repurchases
Increased 41.2% to $9.2 Billion in 2015
- Dividend to Increase 10% to $1.10 per
Share on an Annualized Basis; Share Repurchase Authorization to
Increase to $10.0 Billion, with $5.0 Billion to be Repurchased in
2016
Comcast Corporation (NASDAQ: CMCSA) today reported results for
the quarter and year ended December 31, 2015.
This Smart News Release features multimedia.
View the full release here:
http://www.businesswire.com/news/home/20160203005743/en/
Comcast Corporation will host a
conference call with the financial community to discuss financial
results for the fourth quarter and full year 2015 on Wednesday,
Feb. 3, 2016. (Photo: Business Wire)
Brian L. Roberts, Chairman and Chief Executive Officer of
Comcast Corporation, said, “I am exceptionally proud of our results
this year, which were driven by strong performances in each of our
core businesses. At Comcast Cable, our focus on delivering the most
innovative products and improving the customer experience led to
fantastic operating metrics, including our best video customer
results in nine years, and our best high-speed Internet customer
results in eight years. NBCUniversal had a remarkable year, with
record-breaking results at both Theme Parks and Film, and continued
success at NBC, which was number one in primetime for the second
consecutive season. As we enter 2016, the momentum we see across
our portfolio is truly exciting. We are executing at the highest
level, investing prudently, and energized and focused on driving
growth and shareholder value. Underscoring our confidence in our
company, we are increasing our dividend by 10% to $1.10 per share
and we also plan to repurchase $5.0 billion of our stock this
year.”
Consolidated Financial Results
4th Quarter Full Year ($ in millions) 2014
2015 Growth 2014 2015 Growth
Revenue $17,732 $19,245 8.5% $68,775 $74,510
8.3% Excluding Adjustments $17,732 $19,076
7.6% $67,672 $73,965 9.3% Operating
Cash Flow1 $5,877 $6,272 6.7% $22,923 $24,678 7.7% Excluding
Adjustments $5,976 $6,214 4.0% $23,160
$24,798 7.1% Operating Income $3,787
$4,002 5.7% $14,904 $15,998 7.3%
Earnings per Share2 $0.74 $0.79 6.8% $3.20 $3.24 1.3% Excluding
Adjustments $0.77 $0.81 5.2% $2.93
$3.25 10.9% Free Cash Flow3 $1,694 $1,588 (6.3%)
$8,167 $8,935 9.4%
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.
Consolidated Revenue for the fourth quarter of 2015
increased 8.5% to $19.2 billion. Consolidated Operating
Cash Flow increased 6.7% to $6.3 billion. Consolidated
Operating Income increased 5.7% to $4.0 billion. On November
13, 2015, we acquired a 51% interest in the Universal Studios theme
park located in Osaka, Japan (“Universal Studios Japan”). Fourth
quarter and full-year 2015 results include $169 million of revenue
and $80 million of operating cash flow attributable to Universal
Studios Japan from its acquisition date. Consolidated revenue for
the fourth quarter of 2015 excluding Universal Studios Japan
increased 7.6%. Consolidated operating cash flow excluding
Universal Studios Japan, as well as $22 million of costs associated
with a change in the presentation of amounts payable for a
contractual obligation4 in the fourth quarter of 2015 and $99
million of Time Warner Cable and Charter transaction-related costs
in the fourth quarter of 2014, increased 4.0% (see Table 5).
For the year ended December 31, 2015, consolidated revenue
increased 8.3% to $74.5 billion. Consolidated operating cash flow
increased 7.7% to $24.7 billion. Consolidated operating income
increased 7.3% to $16.0 billion. Full-year 2015 results include
$169 million of revenue and $80 million of operating cash flow
attributable to Universal Studios Japan from its acquisition date.
Consolidated revenue for the full year 2015 excluding Universal
Studios Japan, as well as $376 million of revenue generated by the
broadcast of the NFL’s Super Bowl in the first quarter of 2015 and
$1.1 billion of revenue generated by the Sochi Olympics in the
first quarter of 2014, increased 9.3%. Consolidated operating cash
flow excluding Universal Studios Japan, as well as $178 million of
transaction-related costs in 2015 and $237 million in 2014, and $22
million of costs associated with a change in the presentation of
amounts payable for a contractual obligation4 in the fourth quarter
of 2015, increased 7.1% (see Table 5).
Earnings per Share (EPS) for the fourth quarter of 2015
was $0.79, a 6.8% increase from the $0.74 reported in the fourth
quarter of 2014. Excluding a $0.02 loss on an investment resulting
from our proportionate share of an impairment loss recorded at The
Weather Channel in the fourth quarter of 2015, as well as $0.03 of
transaction-related costs in the fourth quarter of 2014, EPS
increased 5.2% to $0.81 (see Table 4).
EPS for the year ended December 31, 2015 was $3.24, a 1.3%
increase from the $3.20 reported in the prior year. On an adjusted
basis, EPS increased 10.9% to $3.25 (see Table 4).
Capital Expenditures increased 18.6% to $2.6 billion in
the fourth quarter of 2015 compared to the fourth quarter of 2014.
Cable Communications’ capital expenditures increased $190 million,
or 10.2%, to $2.1 billion in the fourth quarter of 2015, primarily
reflecting our continued spending on customer premise equipment
related to the deployment of the X1 platform and wireless gateways
and increased investment in network infrastructure to increase
network capacity. Cable capital expenditures represented 17.2% of
Cable revenue in the fourth quarter of 2015 compared to 16.5% in
last year’s fourth quarter. NBCUniversal’s capital expenditures
increased $220 million, or 65.2%, to $557 million in the fourth
quarter of 2015, primarily reflecting increased spending at Theme
Parks, including a land purchase adjacent to an existing theme park
of $130 million and $12 million attributable to Universal Studios
Japan.
For the year ended December 31, 2015, capital expenditures
increased 14.5% to $8.5 billion compared to the prior year. Cable
Communications’ capital expenditures increased $880 million, or
14.3%, to $7.0 billion, primarily reflecting increased spending on
customer premise equipment related to the deployment of the X1
platform and wireless gateways, as well as increased investment in
our network. For the year, Cable capital expenditures represented
15.0% of Cable revenue compared to 13.9% in 2014. NBCUniversal’s
capital expenditures increased $165 million, or 13.5%, to $1.4
billion in 2015, primarily reflecting increased investments in
Theme Parks.
Free Cash Flow decreased 6.3% to $1.6 billion in the
fourth quarter of 2015 compared to $1.7 billion in the fourth
quarter of 2014, reflecting growth in consolidated operating cash
flow and lower cash taxes, offset by higher capital expenditures
and increased working capital.
Free cash flow for the year ended December 31, 2015 increased
9.4% to $8.9 billion compared to $8.2 billion in 2014, reflecting
growth in consolidated operating cash flow and improvement in
working capital, partially offset by increased capital
expenditures.
4th Quarter Full Year ($ in millions) 2014
2015 Growth 2014 2015 Growth
Operating Cash Flow $5,877 $6,272 6.7%
$22,923 $24,678 7.7% Capital Expenditures
(2,224) (2,637) 18.6% (7,420) (8,499)
14.5% Cash Paid for Capitalized Software and Other
Intangible Assets (387) (454) 17.3%
(1,122) (1,370) 22.1% Cash Interest Expense
(569) (529) (7.0%) (2,389) (2,443)
2.3% Cash Taxes on Operating Items (Including Economic
Stimulus Packages) (586) (326) (44.4%)
(3,765) (3,731) (0.9%) Changes in Operating Assets
and Liabilities (14) (375) NM (507)
(267) (47.3%) Noncash Share-Based Compensation
127 137 7.9% 513 567 10.5%
Distributions to Noncontrolling Interests
and Dividends for Redeemable Subsidiary Preferred Stock
(50) (54) 8.0% (220) (232)
5.5% Other 39 57 46.2% 190
234 23.2% Free Cash Flow (Including Economic Stimulus
Packages) $2,213 $2,091 (5.5%) $8,203
$8,937 8.9% Economic Stimulus Packages (519)
(503) (3.1%) (36) (2) (94.4%)
Free Cash Flow3
$1,694 $1,588
(6.3%) $8,167 $8,935
9.4% NM=comparison not meaningful.
Dividends and Share Repurchases. During the fourth
quarter of 2015, Comcast paid dividends totaling $614 million and
repurchased 16.3 million of its common shares for $980 million. For
the full year, Comcast repurchased 115.9 million of its common
shares for $6.75 billion and made four cash dividend payments
totaling $2.4 billion, resulting in a total return of capital to
shareholders of $9.2 billion for 2015.
Today, Comcast announced that its Board of Directors has
increased its stock repurchase program authorization to $10.0
billion. Comcast expects to repurchase $5.0 billion of its Class A
common stock during 2016, subject to market conditions.
In addition, Comcast announced that it increased its dividend by
10.0% to $1.10 per share on an annualized basis. In accordance with
the increase, the Board of Directors declared a quarterly cash
dividend of $0.275 a share on the company’s common stock, payable
on April 27, 2016 to shareholders of record as of the close of
business on April 6, 2016.
Cable Communications
4th Quarter Full Year ($ in millions) 2014
2015 Growth 2014 2015 Growth
Cable Communications Revenue
Video
$5,187 $5,416 4.4% $20,783
$21,526 3.6% High-Speed Internet 2,912 3,197
9.8% 11,321 12,471 10.2% Voice
916 899 (1.7%) 3,671 3,608
(1.7%) Business Services 1,058 1,259 18.9%
3,951 4,742 20.0% Advertising 703
639 (9.3%) 2,393 2,318 (3.1%)
Other 537 570 6.4% 2,021 2,214
9.6%
Cable Communications Revenue $11,313
$11,980 5.9% $44,140
$46,879 6.2%
Cable Communications Operating Cash Flow
$4,684 $4,900 4.6%
$18,112 $19,120 5.6% Operating
Cash Flow Margin 41.4% 40.9% 41.0% 40.8%
Cable Communications Capital Expenditures
$1,872 $2,062 10.2%
$6,154 $7,034 14.3% Percent of
Cable Communications Revenue 16.5% 17.2%
13.9% 15.0%
Revenue for Cable Communications increased 5.9% to $12.0
billion in the fourth quarter of 2015 compared to $11.3 billion in
the fourth quarter of 2014, driven by increases of 9.8% in
high-speed Internet, 4.4% in video and 18.9% in business services,
partially offset by a 9.3% decline in advertising due to lower
political advertising revenue. The increase in Cable revenue
reflects increased customer relationships (see below), customers
receiving higher levels of service, customers taking additional
services, as well as rate adjustments.
For the year ended December 31, 2015, Cable revenue increased
6.2% to $46.9 billion compared to $44.1 billion in 2014, driven by
growth in high-speed Internet, business services and video.
Customer relationships increased by 281,000 to 27.7
million during the fourth quarter of 2015, a 57.6% improvement
compared to an increase of 178,000 in the fourth quarter of 2014,
driven by increases in double product and triple product
relationships. Video customer net additions of 89,000 were the best
result for a quarter in eight years, high-speed Internet customer
net additions of 460,000 were the best result for a fourth quarter
in nine years, and Voice customer net additions improved to
139,000.
For the year ended December 31, 2015, customer relationships
increased by 666,000, an 85.9% improvement compared to net
additions of 358,000 in 2014. Video customer net losses of 36,000
improved by 81.7% year-over-year and were the best result in nine
years. High-speed Internet customer net additions of 1.4 million
marked the tenth consecutive year of more than one million net
additions, and were the best result in eight years. Voice customer
net additions slowed to 282,000.
Customers Net Additions (in thousands) YE14
YE15 4Q14 4Q15 2014 2015 Video
Customers 22,383 22,347 6 89
(194) (36) High-Speed Internet Customers 21,962
23,329 375 460 1,277 1,367 Voice
Customers 11,193 11,475 123 139
470 282
Single Product Customers
8,409 8,366 (35) (1) (343)
(43) Double Product Customers 8,750 9,221
100 156 209 472 Triple Product
Customers 9,876 10,114 114 126
492 238
Customer Relationships 27,035
27,701 178 281 358
666
Operating Cash Flow for Cable Communications increased
4.6% to $4.9 billion in the fourth quarter of 2015 compared to $4.7
billion in the fourth quarter of 2014, reflecting higher revenue,
partially offset by a 6.8% increase in operating expenses primarily
related to a 9.0% increase in technical and product support
expenses, driven by an acceleration in the deployment of X1 and
investments to improve the customer experience, as well as a 4.7%
increase in video programming costs and a 12.0% increase in
advertising, marketing and promotion costs. This quarter’s
operating cash flow margin was 40.9% compared to 41.4% in the
fourth quarter of 2014.
For the year ended December 31, 2015, Cable operating cash flow
increased 5.6% to $19.1 billion compared to $18.1 billion in 2014,
driven by higher revenue, partially offset by a 6.7% increase in
operating expenses primarily related to a 7.1% increase in video
programming costs, as well as higher technical and product support
expenses and higher advertising, marketing and promotion costs. For
the year, operating cash flow margin was 40.8% compared to 41.0% in
the prior year.
NBCUniversal
4th Quarter Full Year
Excluding
Excluding
($ in millions)
2014 2015 Growth
Adjustments
2014 2015 Growth
Adjustments
NBCUniversal Revenue
Cable Networks $2,327 $2,407
3.4% $9,563 $9,628 0.7%
3.5% Broadcast Television 2,335 2,498 7.0%
8,542 8,530 (0.1%) 6.0%
Filmed Entertainment 1,295 1,629 25.8%
5,008 7,287 45.5% Theme
Parks 735 1,019 38.6% 15.5%
2,623 3,339 27.3% 20.8% Headquarters, Other
and Eliminations (77) (76) NM
(308) (322) NM
NBCUniversal
Revenue $6,615 $7,477 13.0% 10.5%
$25,428 $28,462 11.9% 14.8%
NBCUniversal
Operating Cash Flow
Cable Networks $912 $894 (1.9%)
$3,589 $3,499 (2.5%)
Broadcast Television 230 217 (5.6%)
734 780 6.3% Filmed
Entertainment 77 143 84.6%
711 1,234 73.5% Theme Parks4
330 452 36.6% 12.3% 1,096
1,464 33.5% 26.2% Headquarters, Other and
Eliminations4 (122) (155) NM
(542) (563) NM
NBCUniversal
Operating Cash Flow $1,427 $1,551 8.7%
4.7% $5,588 $6,414 14.8% 13.8%
Revenue for NBCUniversal increased 13.0% to $7.5 billion
in the fourth quarter of 2015 compared to $6.6 billion in the
fourth quarter of 2014. Operating Cash Flow increased 8.7%
to $1.6 billion compared to $1.4 billion in the fourth quarter of
2014. Fourth quarter results include $169 million of revenue and
$80 million of operating cash flow attributable to Universal
Studios Japan from its acquisition date. Revenue for NBCUniversal
excluding Universal Studios Japan increased 10.5%. Operating Cash
flow excluding Universal Studios Japan and $22 million of costs
associated with a change in the presentation of amounts payable for
a contractual obligation4 in the fourth quarter of 2015, increased
4.7%, driven by strong results at Filmed Entertainment and Theme
Parks (see Table 5).
For the year ended December 31, 2015, NBCUniversal revenue
increased 11.9% to $28.5 billion compared to $25.4 billion in 2014.
Operating cash flow increased 14.8% to $6.4 billion compared to
$5.6 billion in 2014. Full-year 2015 results include $169 million
of revenue and $80 million of operating cash flow attributable to
Universal Studios Japan from its acquisition date. Revenue for
NBCUniversal excluding Universal Studios Japan, as well as $376
million of revenue generated by the broadcast of the NFL’s Super
Bowl in the first quarter of 2015 and $1.1 billion of revenue
generated by the Sochi Olympics in the first quarter of 2014,
increased 14.8%. Operating cash flow excluding Universal Studios
Japan and $22 million of costs associated with a change in the
presentation of amounts payable for a contractual obligation4 in
the fourth quarter of 2015, increased 13.8%, reflecting strong
results at Filmed Entertainment and Theme Parks (see Table 5).
Cable Networks
For the fourth quarter of 2015, Cable Networks segment revenue
increased 3.4% to $2.4 billion and operating cash flow decreased
1.9% to $894 million. These results reflect a 6.8% increase in
distribution revenue, partially reflecting NASCAR on our sports
network, NBCSN, which was more than offset by a modest 0.3% decline
in advertising revenue and an increase in sports programming costs,
reflecting the impact of NASCAR and higher programming costs for
the English Premier League.
For the year ended December 31, 2015, revenue from the Cable
Networks segment increased 0.7% to $9.6 billion. Excluding $257
million of revenue generated by the 2014 Sochi Olympics, revenue
increased 3.5% (see Table 5), reflecting a 6.5% increase in
distribution revenue and a 0.6% increase in advertising, partially
offset by lower content licensing and other revenue. Operating cash
flow decreased 2.5% to $3.5 billion compared to $3.6 billion in
2014, reflecting a modest increase in reported revenue and higher
programming costs.
Broadcast Television
For the fourth quarter of 2015, revenue from the Broadcast
Television segment increased 7.0% to $2.5 billion compared to $2.3
billion in the fourth quarter of 2014, reflecting a 7.0% increase
in advertising revenue, primarily driven by higher rates, a 34.9%
increase in content licensing revenue, and higher retransmission
consent fees. Operating cash flow decreased 5.6% to $217 million
compared to $230 million in the fourth quarter of 2014, reflecting
higher revenue, more than offset by higher operating costs and
expenses.
For the year ended December 31, 2015, revenue from the Broadcast
Television segment was stable at $8.5 billion. Excluding $376
million of revenue generated by the NFL’s Super Bowl in the first
quarter of 2015, as well as $846 million of revenue generated by
the 2014 Sochi Olympics, revenue increased 6.0% (see Table 5),
reflecting a 13.7% increase in content licensing revenue, a 4.1%
increase in advertising revenue, and higher retransmission consent
fees. Operating cash flow increased 6.3% to $780 million compared
to $734 million in 2014.
Filmed Entertainment
For the fourth quarter of 2015, revenue from the Filmed
Entertainment segment increased 25.8% to $1.6 billion compared to
$1.3 billion in the fourth quarter of 2014, reflecting a 74.9%
increase in home entertainment revenue driven by the strong
performances of Minions and Jurassic World, as well as a 22.7%
increase in content licensing revenue, partially offset by a 37.5%
decline in theatrical revenue. Operating cash flow increased 84.6%
to $143 million compared to $77 million in the fourth quarter of
2014, reflecting higher revenue, partially offset by a 22.1%
increase in operating costs, primarily driven by an increase in the
amortization of film costs.
For the year ended December 31, 2015, revenue from the Filmed
Entertainment segment increased 45.5% to $7.3 billion compared to
$5.0 billion in 2014, driven by higher theatrical revenue from the
record performances of Minions, Jurassic World, and Furious 7.
Operating cash flow increased 73.5% to $1.2 billion compared to
$711 million in 2014, reflecting higher revenue, partially offset
by a 40.9% increase in operating expenses, primarily driven by an
increase in the amortization of film costs and higher advertising,
marketing and promotion expense due to a larger film slate.
Theme Parks
For the fourth quarter of 2015, revenue from the Theme Parks
segment increased 38.6% to $1.0 billion compared to $735 million in
the fourth quarter of 2014. Fourth quarter operating cash flow
increased 36.6% to $452 million compared to $330 million in the
same period last year. Previously reported amounts have been
adjusted to include costs associated with a change in the
presentation of amounts payable for a contractual obligation4 in
the fourth quarter of 2015. Excluding $169 million of revenue and
$80 million of operating cash flow attributable to Universal
Studios Japan from its acquisition date, revenue increased 15.5%
and operating cash flow increased 12.3% (see Table 5). These
results reflect higher guest attendance and per capita spending,
driven by the continued success of Orlando’s The Wizarding World of
Harry Potter™ – Diagon Alley™, Hollywood’s Fast and Furious:
Supercharged, as well as Halloween Horror Nights at the Orlando and
Hollywood parks, partially offset by an increase in operating costs
to support new attractions.
For the year ended December 31, 2015, revenue from the Theme
Parks segment increased 27.3% to $3.3 billion compared to $2.6
billion in 2014. Operating cash flow increased 33.5% to $1.5
billion compared to $1.1 billion in 2014. Previously reported
amounts have been adjusted to include costs associated with a
change in the presentation of amounts payable for a contractual
obligation4 in the fourth quarter of 2015. Excluding $169 million
of revenue and $80 million of operating cash flow attributable to
Universal Studios Japan from its acquisition date, revenue
increased 20.8% and operating cash flow increased 26.2% (see Table
5), driven by Orlando’s The Wizarding World of Harry Potter™ –
Diagon Alley™, which opened July 8th 2014.
Headquarters, Other and Eliminations
NBCUniversal Headquarters, Other and Eliminations include
overhead and eliminations among the NBCUniversal businesses. For
the quarter ended December 31, 2015, NBCUniversal Headquarters,
Other and Eliminations operating cash flow loss was $155 million
compared to a loss of $122 million in the fourth quarter of 2014.
Previously reported amounts have been adjusted to offset the costs
included in the Theme Parks segment associated with a change in the
presentation of amounts payable for a contractual obligation4 in
the fourth quarter of 2015.
For the year ended December 31, 2015, NBCUniversal Headquarters,
Other and Eliminations operating cash flow loss was $563 million
compared to a loss of $542 million in 2014. Previously reported
amounts have been adjusted to offset the costs included in the
Theme Parks segment associated with a change in the presentation of
amounts payable for a contractual obligation4 in the fourth quarter
of 2015.
Corporate, Other and
Eliminations
Corporate, Other and Eliminations primarily include
corporate operations, Comcast-Spectacor and eliminations among
Comcast's businesses. For the quarter ended December 31, 2015,
Corporate, Other and Eliminations revenue was ($212) million
compared to ($196) million in 2014. The operating cash flow loss
was $179 million, compared to a loss of $234 million in the fourth
quarter of 2014, including $99 million of transaction-related
costs. For the year ended December 31, 2015, Corporate,
Other and Eliminations revenue was ($831) million compared to
($793) million in 2014. The operating cash flow loss was $856
million, including $178 million of transaction-related costs and
$56 million of expenses related to a contract settlement, compared
to a loss of $777 million in 2014, including $237 million of
transaction-related costs.
Notes:
1 We define Operating Cash Flow as operating income (loss)
before depreciation and amortization, excluding impairment charges
related to fixed and intangible assets and gains or losses on the
sale of assets, if any. 2 Earnings per share amounts are
presented on a diluted basis. 3 We define Free Cash Flow as
Net Cash Provided by Operating Activities (as stated in our
Consolidated Statement of Cash Flows) reduced by capital
expenditures, cash paid for intangible assets, principal payments
on capital leases and cash distributions to noncontrolling
interests; and adjusted for any payments and receipts related to
certain nonoperating items, net of estimated tax benefits. The
definition of Free Cash Flow excludes any impact from Economic
Stimulus packages. These amounts have been excluded from Free Cash
Flow to provide an appropriate comparison. 4 NBCUniversal
changed its method of accounting for a contractual obligation that
involves an interest in the revenue of certain theme parks. As a
result of the change, beginning in the fourth quarter of 2015,
amounts payable based on current period revenue are presented in
operating costs and expenses. Amounts paid through the third
quarter of 2015 were included in other income (expense), net in our
consolidated statement of income. For segment reporting purposes,
we have adjusted periods prior to the fourth quarter of 2015 to
reflect this expense on a consistent basis for all periods in the
Theme Parks segment, which resulted in an offsetting adjustment in
NBCUniversal Headquarters, Other and Eliminations.
All percentages are calculated on whole
numbers. Minor differences may exist due to rounding.
Conference Call and Other Information
Comcast Corporation will host a conference call with the
financial community today, February 3, 2016 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 at
www.cmcsa.com. Those parties interested in participating via
telephone should dial (800) 263-8495 with the conference ID number
9896818. A replay of the call will be available starting at 11:30
a.m. ET on Wednesday, February 3, 2016, on the Investor Relations
website or by telephone. To access the telephone replay, which will
be available until Wednesday, February 10, 2016 at midnight ET,
please dial (855) 859-2056 and enter the conference ID number
9896818.
From time to time, we post information that may be of interest
to investors on our website at www.cmcsa.com and on our corporate
blog, www.corporate.comcast.com/comcast-voices. To automatically
receive Comcast financial news by email, please visit www.cmcsa.com
and subscribe to email alerts.
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.
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.
About Comcast Corporation
Comcast Corporation (Nasdaq: CMCSA) is a global media and
technology company with two primary businesses, Comcast Cable and
NBCUniversal. Comcast Cable is one of the nation's largest video,
high-speed Internet and phone providers to residential customers
under the XFINITY brand and also provides these services to
businesses. NBCUniversal operates news, entertainment and sports
cable networks, the NBC and Telemundo broadcast networks,
television production operations, television station groups,
Universal Pictures and Universal Parks and Resorts. Visit
www.comcastcorporation.com for more information.
TABLE 1
Condensed Consolidated Statement of Income (Unaudited)
Three Months Ended
Twelve Months Ended (in millions, except per share data)
December 31, December 31, 2014
2015 2014
2015 Revenue $ 17,732
$ 19,245 $ 68,775
$ 74,510 Programming and production 5,358
5,836 20,912
22,550 Other operating and
administrative 5,166
5,586 19,854
21,339 Advertising,
marketing and promotion 1,331
1,551
5,086
5,943 11,855
12,973 45,852
49,832 Operating cash flow 5,877
6,272 22,923
24,678 Depreciation expense 1,630
1,776 6,337
6,781 Amortization expense 460
494 1,682
1,899 2,090
2,270
8,019
8,680 Operating
income 3,787
4,002 14,904
15,998 Other
income (expense) Interest expense (664 )
(674 )
(2,617 )
(2,702 ) Investment income (loss), net 42
57 296
81 Equity in net income (losses) of investees,
net 10
(123 ) 97
(325 ) Other income
(expense), net (65 )
(44 ) (215
)
320 (677 )
(784
) (2,439 )
(2,626 )
Income before income taxes 3,110
3,218 12,465
13,372
Income tax expense (1,114 )
(1,162
) (3,873 )
(4,959 )
Net income 1,996
2,056 8,592
8,413 Net
(income) loss attributable to noncontrolling interests and
redeemable subsidiary preferred stock (71 )
(85 )
(212 )
(250 ) Net
income attributable to Comcast Corporation $ 1,925
$ 1,971 $ 8,380
$ 8,163
Diluted earnings per common share
attributable to Comcast Corporation shareholders $ 0.74
$ 0.79 $ 3.20
$ 3.24
Dividends declared per common share
attributable to Comcast Corporation shareholders $ 0.225
$ 0.25 $ 0.90
$ 1.00
Diluted weighted-average number of
common shares 2,590
2,481
2,620
2,518
TABLE 2 Condensed Consolidated Balance Sheet
(Unaudited) (in millions)
December 31,
December 31, 2014
2015 ASSETS
Current Assets Cash and cash equivalents $ 3,910
$
2,295 Investments 602
106 Receivables, net 6,321
6,896 Programming rights 839
1,213 Other current
assets 1,859
1,793 Total current assets
13,531
12,303 Film and television costs 5,727
5,855 Investments 3,135
3,224 Property
and equipment, net 30,953
33,665 Franchise rights
59,364
59,364 Goodwill 27,316
32,945
Other intangible assets, net 16,980
16,946 Other
noncurrent assets, net 2,180
2,272 $
159,186
$ 166,574 LIABILITIES AND
EQUITY Current Liabilities Accounts payable and accrued
expenses related to trade creditors $ 5,638
$ 6,215
Accrued participations and residuals 1,347
1,572 Deferred
revenue 915
1,302 Accrued expenses and other current
liabilities 5,293
5,462 Current portion of long-term debt
4,217
3,627 Total current liabilities
17,410
18,178 Long-term debt, less current
portion 43,864
48,994 Deferred income taxes 32,959
33,566 Other noncurrent liabilities 10,819
10,637 Redeemable noncontrolling interests and
redeemable subsidiary preferred stock 1,066
1,221
Equity Comcast Corporation shareholders' equity 52,711
52,269 Noncontrolling interests 357
1,709 Total equity 53,068
53,978
$ 159,186
$ 166,574
TABLE 3 Consolidated Statement of
Cash Flows (Unaudited) (in
millions)
Twelve Months Ended December 31, 2014
2015 OPERATING ACTIVITIES Net income $ 8,592
$ 8,413 Adjustments to reconcile net income to net
cash provided by operating activities: Depreciation and
amortization 8,019
8,680 Share-based compensation 513
567 Noncash interest expense (income), net 180
205
Equity in net (income) losses of investees, net (97 )
325
Cash received from investees 104
168 Net (gain) loss on
investment activity and other 4
(318 ) Deferred
income taxes 1,165
958 Changes in operating assets and
liabilities, net of effects of acquisitions and divestitures:
Current and noncurrent receivables, net (33 )
(708 )
Film and television costs, net (562 )
(299 ) Accounts
payable and accrued expenses related to trade creditors 153
384 Other operating assets and liabilities (1,093 )
403 Net cash provided by operating
activities 16,945
18,778
INVESTING ACTIVITIES Capital expenditures (7,420 )
(8,499 ) Cash paid for intangible assets (1,122 )
(1,370 ) Acquisitions and construction of real estate
properties (43 )
(178 ) Acquisitions, net of cash
acquired (477 )
(1,786 ) Proceeds from sales of
businesses and investments 666
433 Purchases of investments
(191 )
(784 ) Other (146 )
220
Net cash provided by (used in) investing activities
(8,733 )
(11,964 ) FINANCING
ACTIVITIES Proceeds from (repayments of) short-term borrowings,
net (504 )
135 Proceeds from borrowings 4,182
5,486
Repurchases and repayments of debt (3,175 )
(4,378 )
Repurchases and retirements of common stock (4,251 )
(6,750
) Dividends paid (2,254 )
(2,437 ) Issuances
of common stock 35
36 Distributions to noncontrolling
interests and dividends for redeemable subsidiary preferred stock
(220 )
(232 ) Other 167
(289 ) Net cash provided by (used in)
financing activities (6,020 )
(8,429 )
Increase (decrease) in cash and cash equivalents 2,192
(1,615 ) Cash and cash equivalents, beginning
of period 1,718
3,910
Cash and cash equivalents, end of period $ 3,910
$ 2,295 TABLE 4
Supplemental Information
Alternate Presentation of Net
Cash Provided by Operating Activities and Free Cash Flow
(Unaudited) Three Months Ended
Twelve Months Ended December 31, December 31,
(in millions) 2014
2015 2014
2015 Operating income
$3,787
$4,002 $14,904
$15,998 Depreciation and
amortization 2,090
2,270 8,019
8,680 Operating income
before depreciation and amortization 5,877
6,272 22,923
24,678 Noncash share-based compensation expense 127
137 513
567 Changes in operating assets and
liabilities (14)
(375) (357)
(267) Cash basis
operating income 5,990
6,034 23,079
24,978 Payments
of interest (569)
(529) (2,389)
(2,443) Payments of
income taxes (790)
(581) (3,668)
(3,726) Excess tax
benefits under share-based compensation (27)
(27) (267)
(282) Other 39
68 190
251 Net Cash Provided
by Operating Activities $4,643
$4,965 $16,945
$18,778 Capital expenditures (2,224)
(2,637) (7,420)
(8,499) Cash paid for capitalized software and other
intangible assets (387)
(454) (1,122)
(1,370)
Principal payments on capital leases -
(11) -
(17)
Distributions to noncontrolling interests and dividends for
redeemable subsidiary preferred stock (50)
(54) (220)
(232) Nonoperating items(1) (288)
(221) (16)
275 Total Free Cash Flow $1,694
$1,588 $8,167
$8,935 Reconciliation of EPS Excluding
Gains on Sales, Acquisition-Related Items, Losses on Early Debt
Redemption and Investment, and Favorable Income Tax Adjustments
(Unaudited) Three Months Ended Twelve Months
Ended December 31, December 31, 2014
2015 2014
2015 (in millions, except per share data) $
EPS (2)
$ EPS (2) $ EPS
(2)
$ EPS (2) Net income
attributable to Comcast Corporation $1,925 $0.74
$1,971
$0.79 $8,380 $3.20
$8,163 $3.24 Growth % 2.4%
6.8% (2.6%) 1.3% Gains on sales of businesses and
investments(3) - -
- - (97) (0.04)
(202)
(0.08) Gain on settlement of contingent consideration
liability(4) - -
- - - -
(150) (0.06)
Loss on early redemption of debt(5) - -
- - - -
29 0.01 Costs related to Time Warner Cable and
Charter transactions(6) 63 0.03
- - 149 0.06
123 0.05 Loss on investment(7) - -
50
0.02 - -
208 0.09 Favorable income tax
adjustments(8) - -
- - (724) (0.28)
- -
Favorable resolution of a contingency of an acquired company(9) - -
- - (27) (0.01)
- - Net income
attributable to Comcast Corporation
(excluding
gains on sales, acquisition-related items, losses on early debt
redemption and investment, and favorable income tax adjustments)
$1,988 $0.77
$2,021 $0.81 $7,681
$2.93
$8,171 $3.25 Growth % 1.7% 5.2% 6.4%
10.9% (1) Nonoperating items include
adjustments for cash taxes paid related to certain investing and
financing transactions, to reflect cash taxes paid in the year of
the related taxable income and to exclude the impacts of Economic
Stimulus packages. Net cash provided by operating activities for
2014 includes a $150 million increase in July 2014 resulting from a
change in our credit card payment processes that resulted in the
acceleration of the recognition of cash receipts in Cable
Communications. For free cash flow purposes, we consider the
acceleration to be nonrecurring in nature and therefore, we
excluded this amount from free cash flow as a nonoperating item.
(2) Based on diluted weighted-average number of common
shares for the respective periods as presented in Table 1.
(3) 2015 year to date net income attributable to Comcast
Corporation includes $335 million of other income, $202 million net
of tax and noncontrolling interests, resulting from sales of an
investment and a business. 2014 year to date net income
attributable to Comcast Corporation includes $154 million of
investment income, $97 million net of tax, resulting from sales of
investments. (4) 2015 year to date net income attributable
to Comcast Corporation includes $240 million of other income, $150
million net of tax, resulting from the settlement of a contingent
consideration liability with General Electric Company related to
the acquisition of NBCUniversal. (5) 2015 year to date net
income attributable to Comcast Corporation includes $47 million of
interest expense, $29 million net of tax, resulting from the early
redemption of debt. (6) 4th quarter 2014 net income
attributable to Comcast Corporation includes $99 million of
operating costs and expenses, $63 million net of tax, related to
the Time Warner Cable and Charter transactions. 2015 year to date
net income attributable to Comcast Corporation includes $198
million of expense ($178 million of operating costs and expenses
and $20 million of depreciation and amortization expense), $123
million net of tax, related to the Time Warner Cable and Charter
transactions. 2014 year to date net income attributable to Comcast
Corporation includes $237 million of operating costs and expenses,
$149 million net of tax, related to the Time Warner Cable and
Charter transactions. (7) 4th quarter 2015 net income
attributable to Comcast Corporation includes $81 million of equity
in net losses of investees, $50 million net of tax, resulting from
our proportionate share of an impairment loss recorded at The
Weather Channel. 2015 year to date net income attributable to
Comcast Corporation includes $333 million of equity in net losses
of investees, $208 million net of tax, resulting from our
proportionate share of impairment losses recorded at The Weather
Channel. (8) 2014 year to date net income attributable to
Comcast Corporation includes $724 million of favorable income tax
adjustments resulting from adjustments of uncertain tax positions.
This amount excludes the benefits of uncertain tax positions for
which we have been indemnified. (9) 2014 year to date net
income attributable to Comcast Corporation includes $27 million of
other income, resulting from the favorable resolution of a
contingency related to the AT&T Broadband transaction.
Note: Minor
differences may exist due to rounding.
TABLE
5 Reconciliation of Consolidated Revenue Excluding 2015
Super Bowl, Universal Studios Japan and 2014 Olympics and Operating
Cash Flow Excluding Universal Studios Japan, Contractual Obligation
Accounting Change and Costs Related to Time Warner Cable and
Charter Transactions (Unaudited) Three Months
Ended Twelve Months Ended December 31,
December 31, (in millions) 2014
2015 Growth
% 2014
2015 Growth % Revenue $ 17,732
$ 19,245 8.5 % $ 68,775
$ 74,510 8.3 %
2015 Super Bowl -
- -
(376 ) Universal
Studios Japan -
(169 ) -
(169 ) 2014
Olympics -
- (1,103 )
- Revenue excluding 2015 Super Bowl, Universal
Studios Japan and 2014 Olympics $ 17,732
$ 19,076
7.6 % $ 67,672
$ 73,965 9.3 %
2014
2015 Growth % 2014
2015
Growth % Operating Cash Flow $ 5,877
$
6,272 6.7 % $ 22,923
$ 24,678 7.7 %
Universal Studios Japan -
(80 ) -
(80 )
Contractual obligation accounting change -
22 -
22
Costs related to Time Warner Cable and Charter transactions 99
- 237
178 Operating Cash
Flow excluding Universal Studios Japan, contractual obligation
accounting change and costs related to Time Warner Cable and
Charter transactions $ 5,976
$ 6,214 4.0 % $
23,160
$ 24,798 7.1 %
Reconciliation of Consolidated NBCUniversal Revenue Excluding
2015 Super Bowl, Universal Studios Japan and 2014 Olympics and
Operating Cash Flow Excluding Universal Studios Japan and
Contractual Obligation Accounting Change (Unaudited)
Three Months Ended Twelve Months Ended December
31, December 31, (in millions) 2014
2015
Growth % 2014
2015 Growth % Revenue $
6,615
$ 7,477 13.0 % $ 25,428
$ 28,462
11.9 % 2015 Super Bowl -
- -
(376 )
Universal Studios Japan -
(169 ) -
(169
) 2014 Olympics -
-
(1,103 )
- Revenue excluding 2015 Super
Bowl, Universal Studios Japan and 2014 Olympics $ 6,615
$
7,308 10.5 % $ 24,325
$ 27,917
14.8 % 2014
2015 Growth % 2014
2015 Growth % Operating Cash Flow $ 1,427
$ 1,551 8.7 % $ 5,588
$ 6,414 14.8 %
Universal Studios Japan -
(80 ) -
(80
) Contractual obligation accounting change -
22 -
22 Operating Cash Flow excluding
Universal Studios Japan and contractual obligation accounting
change $ 1,427
$ 1,493 4.7 % $ 5,588
$ 6,356 13.8 %
Reconciliation of
Cable Networks Revenue Excluding 2014 Olympics (Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31, (in millions) 2014
2015 Growth % 2014
2015 Growth %
Revenue $ 2,327
$ 2,407 3.4 % $ 9,563
$
9,628 0.7 % 2014 Olympics -
-
(257 )
- Revenue
excluding 2014 Olympics $ 2,327
$ 2,407 3.4 %
$ 9,306
$ 9,628 3.5 %
Reconciliation of Broadcast Television Revenue Excluding 2015
Super Bowl and 2014 Olympics (Unaudited) Three Months
Ended Twelve Months Ended December 31,
December 31, (in millions) 2014
2015 Growth
% 2014
2015 Growth % Revenue $ 2,335
$ 2,498 7.0 % $ 8,542
$ 8,530 (0.1 %)
2015 Super Bowl -
- -
(376 ) 2014
Olympics -
- (846 )
- Revenue excluding 2015 Super Bowl and 2014
Olympics $ 2,335
$ 2,498 7.0 % $ 7,696
$ 8,154 6.0 %
Reconciliation of
Theme Parks Revenue and Operating Cash Flow Excluding Universal
Studios Japan (Unaudited) Three Months Ended
Twelve Months Ended December 31, December 31,
(in millions) 2014
2015 Growth % 2014
2015
Growth % Revenue $ 735
$ 1,019 38.6 % $
2,623
$ 3,339 27.3 % Universal Studios Japan
-
(169 ) -
(169 ) Revenue excluding Universal Studios
Japan $ 735
$ 850 15.5 % $ 2,623
$ 3,170 20.8 % 2014
2015 Growth % 2014
2015 Growth % Operating Cash Flow $ 330
$ 452 36.6 % $ 1,096
$ 1,464 33.5 %
Universal Studios Japan -
(80 )
-
(80 ) Operating Cash
Flow excluding Universal Studios Japan $ 330
$ 372
12.3 % $ 1,096
$ 1,384 26.2 %
Note: Minor
differences may exist due to rounding.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160203005743/en/
Comcast CorporationInvestor Contacts:Jason Armstrong,
215-286-7972Jane Kearns, 215-286-4794orPress Contacts:D’Arcy
Rudnay, 215-286-8582John Demming, 215-286-8011
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