Consolidated 2nd Quarter 2015 Highlights:
- Consolidated Revenue Increased 11.3%,
Operating Cash Flow Increased 8.0%, and Operating Income Increased
7.9%
- Free Cash Flow Increased 30.0%
- Earnings per Share Increased 10.5% to
$0.84; Excluding Adjustments, EPS Increased 12.0%
- Quarterly Dividends and Quarterly Share
Repurchases Increased $878 Million, or 65.8%, to $2.2 Billion
Cable Communications 2nd Quarter 2015 Highlights:
- Cable Communications Revenue Increased
6.3% and Operating Cash Flow Increased 5.1%
- Customer Relationships Increased by
31,000, a 56,000 Improvement from the Second Quarter of 2014
- Total Revenue per Customer Relationship
Increased 4.5%
- Video Customer Net Losses Declined to
69,000, a 52% Improvement from the Second Quarter of 2014, and The
Best Second Quarter Result in Nine Years
- X1 Deployments Continue to Accelerate;
Nearly One-Third of Triple Play Customers Now Have X1
- High-Speed Internet Customers Increased
by 180,000 and Revenue Grew 10.0%
- Business Services Revenue Increased
20.4%; Second Largest Contributor to Cable Revenue Growth for 17 of
the Last 18 Quarters
NBCUniversal 2nd Quarter 2015 Highlights:
- NBCUniversal Revenue Increased 20.2%
and Operating Cash Flow Increased 19.4%
- NBC Ended the Broadcast Season Ranked
#1 Among Adults 18-49 for the Second Year in a Row
- Universal Pictures is #1 in Domestic
and International Box Office Receipts This Year
- Filmed Entertainment Revenue Increased
92.7% and Operating Cash Flow More Than Doubled
- Theme Parks Revenue Increased 25.7% and
Operating Cash Flow Increased 44.9%
Comcast Corporation (NASDAQ: CMCSA, CMCSK) today reported
results for the quarter ended June 30, 2015.
Brian L. Roberts, Chairman and Chief Executive Officer of
Comcast Corporation, said, “Our second quarter results, including
11.3% revenue growth and 8.0% operating cash flow growth,
demonstrate the strength and momentum we are seeing across our
businesses. In Cable, high-speed Internet and business services
continued to perform extremely well, and, significantly, this was
the best second quarter video customer results we’ve had in nine
years. Our focus on accelerating the deployment of our
transformative X1 platform, as well as efforts to improve customer
service, are clearly making a difference, with lower churn across
all product categories. NBCUniversal had an exceptional quarter,
led by the record-breaking box office performances of Jurassic
World and Furious 7 and continued strong momentum in our theme
parks. In addition, NBC won the 2014-2015 broadcast season for
adults 18-49. Our teams are executing incredibly well across our
strong and diversified portfolio, and I am excited for what we can
deliver in the rest of 2015 and beyond.”
Consolidated Financial Results
2nd Quarter Year to Date ($ in millions) 2014 2015
Growth 2014 2015 Growth Revenue
$16,844 $18,743 11.3% $34,252 $36,596
6.8% Excluding Olympics and Super Bowl
$33,149 $36,220 9.3%
Operating Cash Flow1
$5,804 $6,266 8.0% $11,342 $12,222 7.8% Excluding
Transaction-Related Costs $5,848 $6,345 8.5%
$11,403 $12,400 8.7% Operating Income
$3,804 $4,105 7.9% $7,372
$7,995 8.4%
Earnings per Share2
$0.76 $0.84 10.5% $1.47 $1.65 12.2% Excluding Adjustments
$0.75 $0.84 12.0% $1.43 $1.63
14.0%
Free Cash Flow3
$1,155 $1,501 30.0% $3,979 $4,684 17.7%
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 Revenue for the second quarter of 2015
increased 11.3% to $18.7 billion. Consolidated Operating
Cash Flow increased 8.0% to $6.3 billion. Excluding $79 million
of Time Warner Cable and Charter transaction-related costs in the
second quarter of 2015 and $44 million in the second quarter of
2014, consolidated operating cash flow increased 8.5% (See Table
5). Consolidated Operating Income increased 7.9% to
$4.1 billion.
For the six months ended June 30, 2015, consolidated revenue
increased 6.8% to $36.6 billion. Consolidated operating cash flow
increased 7.8% to $12.2 billion. Excluding $178 million of
transaction-related costs in the first six months of 2015 and $61
million in the first six months of 2014, consolidated operating
cash flow increased 8.7% (See Table 5). Consolidated operating
income increased 8.4% to $8.0 billion.
Earnings per Share (EPS) for the second quarter of 2015
was $0.84, a 10.5% increase from the $0.76 reported in the second
quarter of 2014. Excluding a gain on the settlement of a contingent
consideration liability with General Electric Company, a gain on
the sale of an investment, a loss resulting from the early
redemption of debt, transaction-related costs, and a loss on an
investment in the second quarter of 2015, as well as a gain on the
sale of an investment and transaction-related costs in the second
quarter of 2014, EPS increased 12.0% to $0.84 (See Table 4).
EPS for the six months ended June 30, 2015 was $1.65, a 12.2%
increase from the $1.47 reported in the prior year. Excluding a
gain on the settlement of a contingent consideration liability with
General Electric Company, gains on the sale of an investment and
business, a loss resulting from the early redemption of debt,
transaction-related costs, and a loss on an investment in the first
six months of 2015, as well as gains on the sales of investments, a
favorable resolution of a prior acquisition contingency and
transaction-related costs in the first six months of 2014, EPS
increased 14.0% to $1.63 (See Table 4).
Capital Expenditures increased 9.6% to $2.0 billion in
the second quarter of 2015 compared to the second quarter of 2014.
Cable Communications’ capital expenditures increased 12.3% to $1.7
billion in the second quarter of 2015, primarily reflecting
increased spending on customer premise equipment related to the
deployment of the X1 platform and wireless gateways, our ongoing
investment in network infrastructure to increase network capacity,
and increased investment in support capital as we expand our cloud
based initiatives. Cable capital expenditures represented 14.3% of
Cable revenue in the second quarter of 2015 compared to 13.5% in
last year’s second quarter. NBCUniversal’s capital expenditures
decreased 8.5% to $272 million in the second quarter of 2015,
primarily reflecting decreased investments in facilities, partially
offset by increased spending at our Theme Parks.
For the six months ended June 30, 2015, capital expenditures
increased 13.9% to $3.7 billion compared to the prior year. Cable
Communications capital expenditures increased $483 million, or
18.3%, to $3.1 billion and represented 13.5% of Cable revenue
compared to 12.1% in 2014. NBCUniversal’s capital expenditures
decreased $49 million, or 8.2%, to $540 million for the first six
months of 2015.
Free Cash Flow increased 30.0% to $1.5 billion in the
second quarter of 2015 compared to $1.2 billion in the second
quarter of 2014, reflecting growth in consolidated operating cash
flow and improvements in working capital, partially offset by
higher capital expenditures and cash taxes. Free cash flow for the
six months ended June 30, 2015 increased 17.7% to $4.7 billion
compared to $4.0 billion in 2014.
2nd Quarter Year to Date ($ in millions)
2014 2015 Growth 2014
2015 Growth Operating Cash Flow $5,804 $6,266
8.0% $11,342 $12,222 7.8%
Capital Expenditures (1,798) (1,971) 9.6%
(3,246) (3,697) 13.9% Cash Paid for
Capitalized Software and Other Intangible Assets (260)
(327) 25.8% (477) (600)
25.8% Cash Interest Expense (541) (550) 1.7%
(1,164) (1,241) 6.6% Cash Taxes on
Operating Items (Including Economic Stimulus Packages)
(1,891) (2,025) 7.1% (2,159)
(2,289) 6.0% Changes in Operating Assets and Liabilities
(638) (377) (40.9%) (905)
(304) (66.4%) Noncash Share-Based Compensation 147
159 8.2% 266 294 10.5%
Distributions to Noncontrolling Interests
and Dividends for Redeemable Subsidiary Preferred Stock
(51) (52) 2.0% (117)
(114) (2.6%) Other 62 44 (29.0%)
118 79 (33.1%) Free Cash Flow (Including
Economic Stimulus Packages) $834 $1,167 39.9%
$3,658 $4,350 18.9% Economic Stimulus
Packages 321 334 4.1% 321
334 4.1%
Free Cash Flow3 $1,155
$1,501 30.0%
$3,979 $4,684 17.7%
Dividends and Share Repurchases. During the second
quarter of 2015, Comcast paid dividends totaling $628 million and
repurchased 27.4 million of its common shares for $1.6 billion. In
the first six months of 2015, Comcast has repurchased 62.5 million
of its common shares for $3.6 billion. As of June 30, 2015, Comcast
had $6.4 billion available under its share repurchase
authorization.
Cable Communications
2nd Quarter Year to Date ($ in millions)
2014 2015 Growth 2014
2015 Growth
Cable Communications Revenue
Video $5,239 $5,431 3.7%
$10,417 $10,762 3.3% High-Speed
Internet 2,819 3,101 10.0% 5,569
6,145 10.3% Voice 922 903 (2.1%)
1,842 1,809 (1.8%) Business Services
965 1,161 20.4% 1,882
2,275 20.9% Advertising 587 582 (0.9%)
1,094 1,086 (0.8%) Other 497
551 10.9% 982 1,082 10.2%
Cable Communications Revenue $11,029
$11,729 6.3% $21,786
$23,159 6.3%
Cable Communications Operating Cash Flow
$4,564 $4,798 5.1%
$8,964 $9,472 5.7% Operating
Cash Flow Margin 41.4% 40.9% 41.1% 40.9%
Cable Communications Capital Expenditures
$1,493 $1,676 12.3%
$2,638 $3,121
18.3% Percent of Cable Communications Revenue 13.5%
14.3% 12.1% 13.5%
Revenue for Cable Communications increased 6.3% to $11.7
billion in the second quarter of 2015 compared to $11.0 billion in
the second quarter of 2014, driven by increases of 10.0% in
high-speed Internet, 20.4% in business services and 3.7% in video.
The increase in Cable revenue reflects increased customer
relationships (See below), customers receiving higher levels of
service and customers taking additional services, as well as rate
adjustments.
For the six months ended June 30, 2015, Cable revenue increased
6.3% to $23.2 billion compared to $21.8 billion in 2014.
Customer Relationships increased by 31,000 to 27.3
million in the second quarter of 2015, a 56,000 improvement
compared to the second quarter of 2014 and driven by increases in
double and triple product relationships. At the end of the second
quarter, our double and triple product customers increased to 69%
of our total customer relationships compared to 68% in the second
quarter of 2014. Video net losses improved 52% year-over-year to
69,000 and were the best result for a second quarter in nine years,
while High-Speed Internet customers grew by 180,000 and Voice net
additions were 49,000.
Customers Net Additions (in thousands)
2Q14 2Q15 2Q14 2Q15 Video Customers
22,457 22,306 (144) (69)
High-Speed Internet Customers 21,271 22,548
203 180 Voice Customers 11,003 11,319
137 49
Single Product Customers
8,510 8,343 (95) (56) Double Product
Customers 8,574 8,936 (82) 46
Triple Product Customers 9,691 9,987
152 42
Customer Relationships 26,775
27,265 (25) 31
Operating Cash Flow for Cable Communications increased
5.1% to $4.8 billion in the second quarter of 2015 compared to $4.6
billion in the second quarter of 2014, reflecting higher revenue,
partially offset by a 7.2% increase in operating expenses primarily
related to higher video programming costs, as well as an increase
in technical and product support expenses driven by an acceleration
in the deployment of X1 and investments to improve the customer
experience. As a result, this quarter’s operating cash flow margin
was 40.9% compared to 41.4% in the prior year period.
For the six months ended June 30, 2015, Cable operating cash
flow increased 5.7% to $9.5 billion compared to $9.0 billion in
2014. Year-to-date operating cash flow margin was 40.9% compared to
41.1% in 2014.
NBCUniversal
2nd Quarter
Year to Date
($ in millions) 2014 2015 Growth
2014 2015 Growth
ExcludingOlympics& SuperBowl
NBCUniversal Revenue
Cable Networks $2,476 $2,450 (1.0%)
$4,981 $4,809 (3.5%) 1.8% Broadcast
Television 1,816 1,813 (0.2%)
4,437 4,061 (8.5%) 2.6% Filmed Entertainment
1,176 2,266 92.7% 2,527
3,712 46.9% Theme Parks 615 773
25.7% 1,102 1,424 29.2%
Headquarters, Other and Eliminations (67) (72)
NM (155) (172) NM
NBCUniversal Revenue $6,016 $7,230
20.2% $12,892 $13,834
7.3% 14.2%
NBCUniversal Operating Cash Flow
Cable Networks $914 $872
(4.6%) $1,809 $1,770 (2.2%)
Broadcast Television 240 231 (3.7%)
362 413 14.0% Filmed
Entertainment 195 422 116.6% 483
715 48.1% Theme Parks 244
354 44.9% 414 617 48.9%
Headquarters, Other and Eliminations (159)
(167) NM (323) (309) NM
NBCUniversal Operating Cash Flow $1,434
$1,712 19.4% $2,745 $3,206 16.8%
NM=comparison not meaningful.
Revenue for NBCUniversal increased 20.2% to $7.2 billion
in the second quarter of 2015 compared to $6.0 billion in the
second quarter of 2014. Operating Cash Flow increased 19.4%
to $1.7 billion compared to $1.4 billion in the second quarter of
2014, driven by strong results at Filmed Entertainment and Theme
Parks.
For the six months ended June 30, 2015, NBCUniversal revenue
increased 7.3% to $13.8 billion compared to $12.9 billion in 2014.
Excluding $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, revenue increased 14.2% (See Table 5). Operating cash flow
increased 16.8% to $3.2 billion compared to $2.7 billion in the
first six months of 2014.
Cable Networks
For the second quarter of 2015, revenue from the Cable Networks
segment decreased 1.0% to $2.5 billion, reflecting a 26.3% decrease
in content licensing and other revenue due to the timing of content
provided under our licensing agreements and a 3.0% decline in
advertising revenue, partially offset by a 5.6% increase in
distribution revenue. Operating cash flow decreased 4.6% to $872
million compared to $914 million in the second quarter of 2014,
reflecting lower revenue and modest increases in other operating
and administrative expenses.
For the six months ended June 30, 2015, revenue from the Cable
Networks segment decreased 3.5% to $4.8 billion compared to $5.0
billion in 2014. Excluding $257 million of revenue generated by the
Sochi Olympics in the first quarter of 2014, revenue increased 1.8%
(See Table 5). Operating cash flow decreased 2.2% to $1.8 billion
in the first six months of 2015.
Broadcast Television
For the second quarter of 2015, revenue from the Broadcast
Television segment remained flat at $1.8 billion, reflecting a
slight increase in advertising revenue and higher retransmission
consent fees, which were offset by lower content licensing revenue.
Operating cash flow decreased 3.7% to $231 million compared to the
second quarter of 2014, primarily reflecting increases in other
operating and administrative expenses, which were largely offset by
a decrease in programming and production costs associated with the
timing of the airing of certain shows in our primetime
schedule.
For the six months ended June 30, 2015, revenue from the
Broadcast Television segment decreased 8.5% to $4.1 billion
compared to $4.4 billion in 2014. 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 Sochi Olympics in
the first quarter of 2014, revenue increased 2.6% (See Table 5).
Operating cash flow increased 14.0% to $413 million compared to
$362 million in the first six months of 2014.
Filmed Entertainment
For the second quarter of 2015, revenue from the Filmed
Entertainment segment increased 92.7% to $2.3 billion, driven by
higher theatrical revenue from the record performances of Furious 7
and Jurassic World. Operating cash flow increased $227 million to
$422 million, reflecting higher revenue, partially offset by an
increase in the amortization of film costs and higher advertising,
marketing and promotion expense due to a larger film slate.
For the six months ended June 30, 2015, revenue from the Filmed
Entertainment segment increased 46.9% to $3.7 billion compared to
$2.5 billion in 2014. Operating cash flow increased 48.1% to $715
million compared to $483 million in the first six months of
2014.
Theme Parks
For the second quarter of 2015, revenue from the Theme Parks
segment increased 25.7% to $773 million compared to $615 million in
the second quarter of 2014, reflecting higher guest attendance and
per capita spending, driven by the continued success of Orlando’s
The Wizarding World of Harry Potter™ – Diagon Alley™. Second
quarter operating cash flow increased 44.9% to $354 million
compared to $244 million in the same period last year, reflecting
higher revenue, partially offset by an increase in operating costs
to support the new attractions.
For the six months ended June 30, 2015, revenue from the Theme
Parks segment increased 29.2% to $1.4 billion compared to $1.1
billion in 2014. Operating cash flow increased 48.9% to $617
million compared to $414 million in the first six months of
2014.
Headquarters, Other and Eliminations
NBCUniversal Headquarters, Other and Eliminations include
overhead and eliminations among the NBCUniversal businesses. For
the quarter ended June 30, 2015, NBCUniversal Headquarters, Other
and Eliminations operating cash flow loss was $167 million compared
to a loss of $159 million in the second quarter of 2014.
For the six months ended June 30, 2015, NBCUniversal
Headquarters, Other and Eliminations operating cash flow loss was
$309 million compared to a loss of $323 million in 2014.
Corporate, Other and
Eliminations
Corporate, Other and Eliminations primarily include corporate
operations, Comcast-Spectacor and eliminations among Comcast's
businesses. For the quarter ended June 30, 2015, Corporate, Other
and Eliminations revenue was ($216) million compared to ($201)
million in 2014. The operating cash flow loss was $244 million,
including $79 million of transaction-related costs, compared to a
loss of $194 million in the second quarter of 2014, which included
$44 million of transaction-related costs. For the six months
ended June 30, 2015, Corporate, Other and Eliminations revenue was
($397) million compared to ($426) million in 2014. The operating
cash flow loss was $456 million, including $178 million of
transaction-related costs, compared to a loss of $367 million in
the first six months of 2014, which included $61 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.
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, July 23, 2015 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 or www.cmcsk.com. Those parties interested in
participating via telephone should dial (800) 263-8495 with the
conference ID number 60425188. A replay of the call will be
available starting at 12:30 p.m. ET on July 23, 2015, on the
Investor Relations website or by telephone. To access the telephone
replay, which will be available until Friday, July 31, 2015 at
midnight ET, please dial (855) 859-2056 and enter the conference ID
number 60425188.
From time to time, we post information that may be of interest
to investors on our website at www.cmcsa.com or www.cmcsk.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 or www.cmcsk.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, CMCSK) is a global media and
technology company with two primary businesses, Comcast Cable and
NBCUniversal. Comcast Cable is the nation's largest video,
high-speed Internet and phone provider 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 Six Months Ended (in
millions, except per share data)
June 30, June 30,
2014
2015 2014
2015 Revenue $ 16,844
$
18,743 $ 34,252
$ 36,596 Programming
and production 4,874
5,669 10,782
11,132 Other
operating and administrative 4,922
5,280 9,671
10,359
Advertising, marketing and promotion 1,244
1,528 2,457
2,883
11,040
12,477 22,910
24,374 Operating cash
flow 5,804
6,266 11,342
12,222
Depreciation expense 1,599
1,674 3,168
3,308
Amortization expense 401
487
802
919 2,000
2,161 3,970
4,227
Operating income 3,804
4,105 7,372
7,995 Other income (expense) Interest expense (648 )
(713 ) (1,290 )
(1,369 ) Investment
income (loss), net 120
17 233
50 Equity in net income
(losses) of investees, net 22
(236 ) 54
(203
) Other income (expense), net (39 )
315
(54 )
417 (545 )
(617 ) (1,057 )
(1,105 )
Income before income taxes 3,259
3,488 6,315
6,890 Income tax expense (1,234 )
(1,313 ) (2,352 )
(2,574
) Net income 2,025
2,175 3,963
4,316 Net (income) loss attributable to
noncontrolling interests and redeemable subsidiary preferred stock
(33 )
(38 ) (100 )
(120 )
Net income attributable to Comcast Corporation
$ 1,992
$ 2,137 $ 3,863
$
4,196 Diluted earnings per common
share attributable to Comcast Corporation shareholders $ 0.76
$ 0.84 $ 1.47
$
1.65 Dividends declared per common
share attributable to Comcast Corporation shareholders $ 0.225
$ 0.25 $ 0.45
$
0.50 Diluted weighted-average
number of common shares 2,628
2,531
2,636
2,544
TABLE 2 Condensed Consolidated Balance Sheet
(Unaudited)
(in millions) December 31,
June 30, 2014
2015
ASSETS Current Assets Cash and cash equivalents $
3,910
$ 3,486 Investments 602
144 Receivables,
net 6,321
7,016 Programming rights 839
847 Other
current assets 1,859
1,826 Total current
assets 13,531
13,319 Film and
television costs 5,727
5,751 Investments 3,135
2,999 Property and equipment, net 30,953
31,572 Franchise rights 59,364
59,364
Goodwill 27,316
27,422 Other intangible assets, net
16,980
16,802 Other noncurrent assets, net
2,333
2,445 $ 159,339
$ 159,674
LIABILITIES AND EQUITY Current Liabilities
Accounts payable and accrued expenses related to trade creditors $
5,638
$ 5,880 Accrued participations and residuals
1,347
1,583 Deferred revenue 915
1,122 Accrued
expenses and other current liabilities 5,293
5,093 Current
portion of long-term debt 4,217
3,887 Total
current liabilities 17,410
17,565
Long-term debt, less current portion 44,017
44,636
Deferred income taxes 32,959
33,198 Other noncurrent
liabilities 10,819
10,438 Redeemable noncontrolling
interests and redeemable subsidiary preferred stock 1,066
1,108 Equity Comcast Corporation shareholders' equity
52,711
52,400 Noncontrolling interests 357
329 Total equity 53,068
52,729 $
159,339
$ 159,674 TABLE 3
Consolidated Statement of Cash Flows (Unaudited)
(in millions)
Six Months Ended June 30, 2014
2015
OPERATING ACTIVITIES Net income $ 3,963
$
4,316 Adjustments to reconcile net income to net cash
provided by operating activities: Depreciation and amortization
3,970
4,227 Share-based compensation 266
294 Noncash
interest expense (income), net 87
95 Equity in net (income)
losses of investees, net (54 )
203 Cash received from
investees 50
52 Net (gain) loss on investment activity and
other (113 )
(437 ) Deferred income taxes (22 )
111 Changes in operating assets and liabilities, net of
effects of acquisitions and divestitures: Current and noncurrent
receivables, net 60
(707 ) Film and television costs,
net (28 )
176 Accounts payable and accrued expenses related
to trade creditors (168 )
109 Other operating assets and
liabilities (464 )
395 Net cash
provided by operating activities 7,547
8,834 INVESTING ACTIVITIES Capital
expenditures (3,246 )
(3,697 ) Cash paid for
intangible assets (477 )
(600 ) Acquisitions and
construction of real estate properties (10 )
(65 )
Acquisitions, net of cash acquired (406 )
(179 )
Proceeds from sales of businesses and investments 481
395
Purchases of investments (77 )
(272 ) Other
(153 )
182 Net cash provided by (used
in) investing activities (3,888 )
(4,236
) FINANCING ACTIVITIES Proceeds from
(repayments of) short-term borrowings, net (343 )
(137
) Proceeds from borrowings 2,187
3,996 Repurchases
and repayments of debt (3,163 )
(3,666 ) Repurchases
and retirements of common stock (1,500 )
(3,585 )
Dividends paid (1,092 )
(1,200 ) Issuances of common
stock 29
32 Distributions to noncontrolling interests and
dividends for redeemable subsidiary preferred stock (117 )
(114 ) Other 151
(348
) Net cash provided by (used in) financing activities
(3,848 )
(5,022 ) Increase
(decrease) in cash and cash equivalents (189 )
(424 )
Cash and cash equivalents, beginning of period 1,718
3,910 Cash and cash
equivalents, end of period $ 1,529
$ 3,486
TABLE 4 Supplemental Information Alternate
Presentation of Net Cash Provided by Operating Activities and Free
Cash Flow (Unaudited) Three Months Ended
Six Months Ended June 30, June 30, (in
millions) 2014
2015 2014
2015 Operating income $3,804
$4,105 $7,372
$7,995 Depreciation and amortization
2,000
2,161 3,970
4,227
Operating income before depreciation and amortization 5,804
6,266 11,342
12,222 Noncash share-based compensation
expense 147
159 266
294 Changes in operating assets
and liabilities (638 )
(377 ) (905 )
(304
) Cash basis operating income 5,313
6,048 10,703
12,212 Payments of interest (541 )
(550 )
(1,164 )
(1,241 ) Payments of income taxes (1,718 )
(1,881 ) (1,904 )
(1,999 ) Excess tax
benefits under share-based compensation (55
)
(74 ) (206 )
(220 ) Other 62
46 118
82 Net Cash Provided
by Operating Activities $3,061
$3,589
$7,547
$8,834 Capital expenditures (1,798 )
(1,971 ) (3,246 )
(3,697 ) Cash paid
for capitalized software and other intangible assets
(260
)
(327 ) (477 )
(600 ) Principal payments
on capital leases -
(2 ) -
(3 )
Distributions to noncontrolling interests
and dividends for redeemable subsidiary preferred stock
(51
)
(52
)
(117
)
(114
)
Nonoperating items(1) 203
264 272
264 Total Free Cash Flow $1,155
$1,501 $3,979
$4,684
Reconciliation of EPS Excluding Gains
on Sales, Acquisition-Related Items and Losses on Early Debt
Redemption and Investment (Unaudited)
Three Months Ended Six Months Ended June
30, June 30, 2014
2015 2014
2015
(in millions, except per share data) $
EPS (2)
$ EPS (2) $ EPS
(2)
$ EPS (2) Net income
attributable to Comcast Corporation $1,992 $0.76
$2,137
$0.84 $3,863 $1.47
$4,196 $1.65 Growth %
7.3%
10.5%
8.6%
12.2%
Gains on sales of businesses and investments(3) (47 )
(0.02 )
(107 ) (0.04 ) (97 ) (0.04 )
(202 ) (0.08 ) Gain on settlement of
contingent consideration liability(4) - -
(150 )
(0.06 ) - -
(150 ) (0.06
) Loss on early redemption of debt(5) - -
29
0.01 - -
29 0.01 Costs related to Time Warner
Cable and Charter transactions(6) 27 0.01
62 0.03 38
0.01
123 0.05 Loss on investment(7) - -
158
0.06 - -
158 0.06 Favorable resolution of a
contingency of an acquired company(8) - -
- - (27 )
(0.01 )
- - Net income attributable to Comcast
Corporation
(excluding gains on sales, acquisition-related
items and losses on early debt redemption and investment) $1,972
$0.75
$2,129
$0.84 $3,777 $1.43
$4,154 $1.63 Growth %
7.9%
12.0%
10.0%
14.0%
(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.
(2) Based on diluted weighted-average number of common
shares for the respective periods as presented in Table 1.
(3) 2nd quarter 2015 net income attributable to Comcast Corporation
includes $171 million of other income, $107 million net of tax,
resulting from the sale of an investment. 2nd quarter 2014 net
income attributable to Comcast Corporation includes $74 million of
investment income, $47 million net of tax, resulting from the sale
of an investment. 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) 2nd quarter 2015 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) 2nd quarter 2015 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) 2nd quarter 2015 net income
attributable to Comcast Corporation includes $99 million of expense
($79 million of operating costs and expenses and $20 million of
depreciation and amortization expense), $62 million net of tax,
related to the Time Warner Cable and Charter transactions. 2nd
quarter 2014 net income attributable to Comcast Corporation
includes $44 million of operating costs and expenses, $27 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 $61 million of
operating costs and expenses, $38 million net of tax, related to
the Time Warner Cable and Charter transactions. (7) 2nd
quarter 2015 net income attributable to Comcast Corporation
includes $252 million of equity in net losses of investees, $158
million net of tax, resulting from our proportionate share of an
impairment loss recorded at The Weather Channel. (8) 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 and 2014 Olympics and Operating Cash Flow
Excluding Costs Related to Time Warner Cable and Charter
Transactions (Unaudited)
Three Months Ended Six Months Ended June
30, June 30, (in millions) 2014
2015
Growth % 2014
2015 Growth % Revenue $
16,844
$ 18,743 11.3 % $ 34,252
$
36,596 6.8 % 2015 Super Bowl -
- -
(376
) 2014 Olympics -
- (1,103 )
- Revenue excluding 2015 Super Bowl and
2014 Olympics $ 16,844
$ 18,743 11.3 % $ 33,149
$ 36,220 9.3 % 2014
2015 Growth % 2014
2015 Growth %
Operating Cash Flow $ 5,804
$ 6,266 8.0 % $ 11,342
$ 12,222 7.8 % Costs related to Time Warner
Cable and Charter transactions 44
79 61
178 Operating Cash Flow
excluding costs related to Time Warner Cable and Charter
transactions $ 5,848
$ 6,345 8.5 % $ 11,403
$ 12,400 8.7 %
Reconciliation of
Consolidated NBCUniversal Revenue Excluding 2015 Super Bowl and
2014 Olympics (Unaudited) Three Months Ended
Six Months Ended June 30, June 30, (in
millions) 2014
2015 Growth % 2014
2015
Growth % Revenue $ 6,016
$ 7,230 20.2 %
$ 12,892
$ 13,834 7.3 % 2015 Super Bowl -
- -
(376 ) 2014 Olympics -
- (1,103 )
- Revenue
excluding 2015 Super Bowl and 2014 Olympics $ 6,016
$
7,230 20.2 % $ 11,789
$ 13,458
14.2 %
Reconciliation of Cable Networks Revenue Excluding
2014 Olympics (Unaudited) Three Months Ended
Six Months Ended June 30, June 30, (in
millions) 2014
2015 Growth % 2014
2015
Growth % Revenue $ 2,476
$ 2,450 (1.0
%) $ 4,981
$ 4,809 (3.5 %) 2014 Olympics
-
- (257 )
-
Revenue excluding 2014 Olympics $ 2,476
$
2,450 (1.0 %) $ 4,724
$ 4,809
1.8 %
Reconciliation of Broadcast Television
Revenue Excluding 2015 Super Bowl and 2014 Olympics
(Unaudited)
Three Months Ended Six Months Ended June
30, June 30, (in millions) 2014
2015
Growth % 2014
2015 Growth % Revenue $
1,816
$ 1,813 (0.2 %) $ 4,437
$ 4,061
(8.5 %) 2015 Super Bowl -
- -
(376 )
2014 Olympics -
- (846 )
- Revenue excluding 2015 Super Bowl and 2014
Olympics $ 1,816
$ 1,813 (0.2 %) $ 3,591
$ 3,685 2.6 %
Note: Minor differences may exist due
to rounding.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150723005581/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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