Comcast Reports 1st Quarter 2015 Results
Consolidated 1st Quarter 2015 Highlights:
- Consolidated Revenue Increased 2.6%, Operating Cash Flow Increased 7.6%, Operating Income Increased 9.0%
- Operating Cash Flow Increased 9.0%, Excluding Transaction-Related Costs
-
Free Cash Flow Increased 12.7% to
$3.2 Billion -
Earnings per Share Increased 14.1% to
$0.81 ; Excluding Adjustments, EPS Increased 16.2% to$0.79 -
Quarterly Dividends and Quarterly Share Repurchases Increased
$1.3 Billion , or 104.4%, to$2.6 Billion -
Share Repurchases to Increase by
$2.5 Billion , with$6.75 Billion to be Repurchased in 2015
- Cable Communications Revenue Increased 6.3% and Operating Cash Flow Increased 6.2%
- Customer Relationships Increased by 199,000, a 61% Improvement from the First Quarter of 2014
- Total Revenue per Customer Relationship Increased 4.7%
- High-Speed Internet Customers Increased by 407,000; High-Speed Internet Revenue Growth of 10.7% Is the Strongest Rate of Growth in Over Four Years
- X1 Deployments Have Accelerated; Over 25% of Triple Play Customers Now Have X1
-
Business Services Revenue Increased 21.4%, Approaching
$4.5 Billion in Annualized Revenue
NBCUniversal 1st Quarter 2015 Highlights:
- NBCUniversal Revenue Increased 7.9%, Excluding the 2014 Sochi Olympics and 2015 Super Bowl; Including these Events, Revenue Decreased 4.0%; Operating Cash Flow Increased 14.0%
- NBC Remains Ranked #1 Among Adults 18-49
-
Super Bowl XLIX, the Most Watched Television Event of All Time, Generated
$376 Million in Revenue - Theme Parks Revenue Increased 33.7% and Operating Cash Flow Increased 54.6%
|
Consolidated Financial Results |
|||||||||
| 1st Quarter | |||||||||
| ($ in millions) | 2014 | 2015 | Growth | ||||||
| Revenue |
|
|
2.6% | ||||||
| Excluding Olympics and Super Bowl |
|
|
7.2% | ||||||
| Operating Cash Flow1 |
|
|
7.6% | ||||||
| Excluding Transaction-Related Costs |
|
|
9.0% | ||||||
| Operating Income |
|
|
9.0% | ||||||
| Earnings per Share2 |
|
|
14.1% | ||||||
| Excluding Adjustments |
|
|
16.2% | ||||||
| Free Cash Flow3 |
|
|
12.7% | ||||||
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 first quarter of 2015 increased 2.6% to
Earnings per Share (EPS) for the first quarter of 2015 was
Capital Expenditures increased 19.2% to
Free Cash Flow increased 12.7% to
| 1st Quarter | |||||||||
| ($ in millions) | 2014 | 2015 | Growth | ||||||
| Operating Cash Flow |
|
|
7.6% | ||||||
| Capital Expenditures | (1,448) | (1,726) | 19.2% | ||||||
|
Cash Paid for |
(217) | (273) | 25.8% | ||||||
| Cash Interest Expense | (623) | (691) | 10.9% | ||||||
| Cash Taxes on Operating Items (Including Economic Stimulus Packages) | (268) | (264) | (1.5%) | ||||||
| Changes in Operating Assets and Liabilities | (267) | 73 | NM | ||||||
| Noncash Share-Based Compensation | 119 | 135 | 13.4% | ||||||
|
Distributions to Noncontrolling Interests and Dividends for Redeemable Subsidiary Preferred Stock |
(66) |
(62) |
(6.1%) |
||||||
| Other | 56 | 35 | (37.5%) | ||||||
| Free Cash Flow (Including Economic Stimulus Packages) |
|
|
12.7% | ||||||
| Economic Stimulus Packages | - | - | - | ||||||
| Free Cash Flow3 |
|
|
12.7% | ||||||
| NM=comparison not meaningful. | |||||||||
Dividends and Share Repurchases. During the first quarter of 2015,
Today,
|
|
|||||||||
| 1st Quarter | |||||||||
| ($ in millions) | 2014 | 2015 | Growth | ||||||
| Cable Communications Revenue | |||||||||
| Video |
|
|
3.0% | ||||||
| High-Speed Internet | 2,750 | 3,044 | 10.7% | ||||||
| Voice | 920 | 906 | (1.5%) | ||||||
| Business Services | 917 | 1,114 | 21.4% | ||||||
| Advertising | 507 | 504 | (0.7%) | ||||||
| Other | 485 | 531 | 9.4% | ||||||
| Cable Communications Revenue |
|
|
6.3% | ||||||
| Cable Communications Operating Cash Flow |
|
|
6.2% | ||||||
| Operating Cash Flow Margin | 40.9% | 40.9% | |||||||
| Cable Communications Capital Expenditures |
|
|
26.2% | ||||||
| Percent of Cable Communications Revenue | 10.6% | 12.6% | |||||||
Revenue for
Customer Relationships increased by 199,000 to 27.2 million in the first quarter of 2015, a 61% improvement compared to the first quarter of 2014 and driven by increases in double and triple product relationships. At the end of the first quarter, our double and triple product customers increased to 69% of our total customer relationships compared to 68% in the first quarter of 2014. High-Speed Internet customer net additions of 407,000 improved versus last year and were the best result in the last two years, while Video customers declined by 8,000 and Voice net additions slowed to 77,000.
| Customers | Net Additions | |||||||||||
| (in thousands) | 1Q14 | 1Q15 | 1Q14 | 1Q15 | ||||||||
| Video Customers | 22,601 | 22,375 | 24 | (8) | ||||||||
| High-Speed Internet Customers | 21,068 | 22,369 | 383 | 407 | ||||||||
| Voice Customers | 10,865 | 11,270 | 142 | 77 | ||||||||
| Single Product Customers | 8,605 | 8,399 | (147) | (10) | ||||||||
| Double Product Customers | 8,656 | 8,890 | 116 | 140 | ||||||||
| Triple Product Customers | 9,539 | 9,945 | 155 | 69 | ||||||||
| Customer Relationships | 26,800 | 27,234 | 124 | 199 | ||||||||
Operating Cash Flow for
|
NBCUniversal |
||||||||||||
|
|
1st Quarter |
|||||||||||
| ($ in millions) | 2014 | 2015 | Growth |
Excluding Olympics & Super Bowl |
||||||||
| NBCUniversal Revenue | ||||||||||||
| Cable Networks |
|
|
(5.9%) | 4.9% | ||||||||
| Broadcast Television | 2,621 | 2,248 | (14.2%) | 5.5% | ||||||||
|
|
1,351 | 1,446 | 7.0% | |||||||||
| Theme Parks | 487 | 651 | 33.7% | |||||||||
| Headquarters, Other and Eliminations | (88) | (100) | NM | |||||||||
| NBCUniversal Revenue |
|
|
(4.0%) | 7.9% | ||||||||
| NBCUniversal Operating Cash Flow | ||||||||||||
| Cable Networks |
|
|
0.3% | |||||||||
| Broadcast Television | 122 | 182 | 48.9% | |||||||||
|
|
288 | 293 | 1.7% | |||||||||
| Theme Parks | 170 | 263 | 54.6% | |||||||||
| Headquarters, Other and Eliminations | (164) | (142) | NM | |||||||||
| NBCUniversal Operating Cash Flow |
|
|
14.0% | |||||||||
Revenue for NBCUniversal decreased 4.0% to
Cable Networks
For the first quarter of 2015, revenue from the Cable Networks segment decreased 5.9% to
Broadcast Television
For the first quarter of 2015, revenue from the Broadcast Television segment decreased 14.2% to
For the first quarter of 2015, revenue from the
Theme Parks
For the first quarter of 2015, revenue from the Theme Parks segment increased 33.7% to
Headquarters, Other and Eliminations
NBCUniversal Headquarters, Other and Eliminations include overhead and eliminations among the NBCUniversal businesses. For the quarter ended
|
Corporate, Other and Eliminations |
|
Corporate, Other and Eliminations primarily include corporate operations, Comcast-Spectacor and eliminations among |
|
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
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
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
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
About
| TABLE 1 | ||||||||||
| Condensed Consolidated Statement of Income (Unaudited) | ||||||||||
| Three Months Ended | ||||||||||
| (in millions, except per share data) |
|
|||||||||
| 2014 | 2015 | |||||||||
| Revenue | $ | 17,408 | $ | 17,853 | ||||||
| Programming and production | 5,908 | 5,463 | ||||||||
| Other operating and administrative | 4,749 | 5,079 | ||||||||
| Advertising, marketing and promotion | 1,213 | 1,355 | ||||||||
| 11,870 | 11,897 | |||||||||
| Operating cash flow | 5,538 | 5,956 | ||||||||
| Depreciation expense | 1,569 | 1,634 | ||||||||
| Amortization expense | 401 | 432 | ||||||||
| 1,970 | 2,066 | |||||||||
| Operating income | 3,568 | 3,890 | ||||||||
| Other income (expense) | ||||||||||
| Interest expense | (642 | ) | (656 | ) | ||||||
| Investment income (loss), net | 113 | 33 | ||||||||
| Equity in net income (losses) of investees, net | 32 | 33 | ||||||||
| Other income (expense), net | (15 | ) | 102 | |||||||
| (512 | ) | (488 | ) | |||||||
| Income before income taxes | 3,056 | 3,402 | ||||||||
| Income tax expense | (1,118 | ) | (1,261 | ) | ||||||
| Net income | 1,938 | 2,141 | ||||||||
| Net (income) loss attributable to noncontrolling interests and redeemable subsidiary preferred stock | (67 | ) | (82 | ) | ||||||
|
Net income attributable to |
$ | 1,871 | $ | 2,059 | ||||||
|
Diluted earnings per common share attributable to |
$ | 0.71 | $ | 0.81 | ||||||
|
Dividends declared per common share attributable to |
$ | 0.225 | $ | 0.25 | ||||||
| Diluted weighted-average number of common shares | 2,645 | 2,556 | ||||||||
| TABLE 2 | ||||||||
| Condensed Consolidated Balance Sheet (Unaudited) | ||||||||
| (in millions) |
|
|
||||||
| 2014 | 2015 | |||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 3,910 | $ | 3,937 | ||||
| Investments | 602 | 158 | ||||||
| Receivables, net | 6,321 | 6,144 | ||||||
| Programming rights | 839 | 945 | ||||||
| Other current assets | 1,859 | 1,737 | ||||||
| Total current assets | 13,531 | 12,921 | ||||||
| Film and television costs | 5,727 | 5,637 | ||||||
| Investments | 3,135 | 3,235 | ||||||
| Property and equipment, net | 30,953 | 31,127 | ||||||
| Franchise rights | 59,364 | 59,364 | ||||||
| Goodwill | 27,316 | 27,302 | ||||||
| Other intangible assets, net | 16,980 | 16,852 | ||||||
| Other noncurrent assets, net | 2,333 | 2,319 | ||||||
| $ | 159,339 | $ | 158,757 | |||||
| LIABILITIES AND EQUITY | ||||||||
| Current Liabilities | ||||||||
| Accounts payable and accrued expenses related to trade creditors | $ | 5,638 | $ | 6,157 | ||||
| Accrued participations and residuals | 1,347 | 1,387 | ||||||
| Deferred revenue | 915 | 970 | ||||||
| Accrued expenses and other current liabilities | 5,293 | 5,808 | ||||||
| Current portion of long-term debt | 4,217 | 4,180 | ||||||
| Total current liabilities | 17,410 | 18,502 | ||||||
| Long-term debt, less current portion | 44,017 | 42,953 | ||||||
| Deferred income taxes | 32,959 | 32,855 | ||||||
| Other noncurrent liabilities | 10,819 | 10,837 | ||||||
| Redeemable noncontrolling interests and redeemable subsidiary preferred stock | 1,066 | 1,099 | ||||||
| Equity | ||||||||
|
|
52,711 | 52,171 | ||||||
| Noncontrolling interests | 357 | 340 | ||||||
| Total equity | 53,068 | 52,511 | ||||||
| $ | 159,339 | $ | 158,757 | |||||
| TABLE 3 | ||||||||||
| Consolidated Statement of Cash Flows (Unaudited) | ||||||||||
| (in millions) | Three Months Ended | |||||||||
|
|
||||||||||
| 2014 | 2015 | |||||||||
| OPERATING ACTIVITIES | ||||||||||
| Net income | $ | 1,938 | $ | 2,141 | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
| Depreciation and amortization | 1,970 | 2,066 | ||||||||
| Share-based compensation | 119 | 135 | ||||||||
| Noncash interest expense (income), net | 42 | 51 | ||||||||
| Equity in net (income) losses of investees, net | (32 | ) | (33 | ) | ||||||
| Cash received from investees | 18 | 22 | ||||||||
| Net (gain) loss on investment activity and other | (59 | ) | (121 | ) | ||||||
| Deferred income taxes | (226 | ) | (119 | ) | ||||||
| Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: | ||||||||||
| Current and noncurrent receivables, net | 195 | 119 | ||||||||
| Film and television costs, net | 154 | (38 | ) | |||||||
| Accounts payable and accrued expenses related to trade creditors | 82 | 372 | ||||||||
| Other operating assets and liabilities | 285 | 650 | ||||||||
| Net cash provided by operating activities | 4,486 | 5,245 | ||||||||
| INVESTING ACTIVITIES | ||||||||||
| Capital expenditures | (1,448 | ) | (1,726 | ) | ||||||
| Cash paid for intangible assets | (217 | ) | (273 | ) | ||||||
| Acquisitions and construction of real estate properties | - | (24 | ) | |||||||
| Proceeds from sales of businesses and investments | 300 | 180 | ||||||||
| Purchases of investments | (37 | ) | (32 | ) | ||||||
| Other | (103 | ) | 181 | |||||||
| Net cash provided by (used in) investing activities | (1,505 | ) | (1,694 | ) | ||||||
| FINANCING ACTIVITIES | ||||||||||
| Proceeds from (repayments of) short-term borrowings, net | (364 | ) | (150 | ) | ||||||
| Proceeds from borrowings | 2,187 | - | ||||||||
| Repurchases and repayments of debt | (2,260 | ) | (909 | ) | ||||||
| Repurchases and retirements of common stock | (750 | ) | (2,000 | ) | ||||||
| Dividends paid | (508 | ) | (572 | ) | ||||||
| Issuances of common stock | 20 | 28 | ||||||||
| Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock | (66 | ) | (62 | ) | ||||||
| Other | 96 | 141 | ||||||||
| Net cash provided by (used in) financing activities | (1,645 | ) | (3,524 | ) | ||||||
| Increase (decrease) in cash and cash equivalents | 1,336 | 27 | ||||||||
| Cash and cash equivalents, beginning of period | 1,718 | 3,910 | ||||||||
| Cash and cash equivalents, end of period | $ | 3,054 | $ | 3,937 | ||||||
| TABLE 4 | ||||||||||||||||||
|
Supplemental Information |
||||||||||||||||||
| Alternate Presentation of Net Cash Provided by Operating Activities and Free Cash Flow (Unaudited) | ||||||||||||||||||
| Three Months Ended | ||||||||||||||||||
|
|
||||||||||||||||||
| (in millions) | 2014 | 2015 | ||||||||||||||||
| Operating income | $ | 3,568 | $ | 3,890 | ||||||||||||||
| Depreciation and amortization | 1,970 | 2,066 | ||||||||||||||||
| Operating income before depreciation and amortization | 5,538 | 5,956 | ||||||||||||||||
| Noncash share-based compensation expense | 119 | 135 | ||||||||||||||||
| Changes in operating assets and liabilities | (267 | ) | 73 | |||||||||||||||
| Cash basis operating income | 5,390 | 6,164 | ||||||||||||||||
| Payments of interest | (623 | ) | (691 | ) | ||||||||||||||
| Payments of income taxes | (186 | ) | (118 | ) | ||||||||||||||
| Excess tax benefits under share-based compensation | (151 | ) | (146 | ) | ||||||||||||||
| Other | 56 | 36 | ||||||||||||||||
| Net Cash Provided by Operating Activities | $ | 4,486 | $ | 5,245 | ||||||||||||||
| Capital expenditures | (1,448 | ) | (1,726 | ) | ||||||||||||||
| Cash paid for capitalized software and other intangible assets | (217 | ) | (273 | ) | ||||||||||||||
| Principal payments on capital leases | - | (1 | ) | |||||||||||||||
| Distributions to noncontrolling interests and dividends for redeemable subsidiary preferred stock | (66 | ) | (62 | ) | ||||||||||||||
| Nonoperating items(1) | 69 | - | ||||||||||||||||
| Total Free Cash Flow | $ | 2,824 | $ | 3,183 | ||||||||||||||
| Reconciliation of EPS Excluding Gains on Sales and Acquisition-Related Items (Unaudited) | ||||||||||||||||||
| Three Months Ended | ||||||||||||||||||
|
|
||||||||||||||||||
| 2014 | 2015 | |||||||||||||||||
| (in millions, except per share data) | ||||||||||||||||||
| $ | EPS (2) | $ | EPS (2) | |||||||||||||||
|
Net income attributable to |
$ | 1,871 | $ | 0.71 | $ | 2,059 | $ | 0.81 | ||||||||||
| Growth % |
10.0% |
|
14.1% |
|
||||||||||||||
| Gains on sales of businesses and investments(3) | (50 | ) | (0.02 | ) | (95 | ) | (0.04 | ) | ||||||||||
| Costs related to Time Warner Cable and Charter transactions(4) | 11 | - | 61 | 0.02 | ||||||||||||||
| Favorable resolution of a contingency of an acquired company(5) | (27 | ) | (0.01 | ) | - | - | ||||||||||||
|
|
||||||||||||||||||
|
Net income attributable to |
$ | 1,805 | $ | 0.68 | $ | 2,025 | $ | 0.79 | ||||||||||
| Growth % |
12.2% |
|
16.2% |
|
||||||||||||||
| (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) |
1st quarter 2015 net income attributable to |
|||
| (4) |
1st quarter 2015 net income attributable to |
|||
| (5) |
1st quarter 2014 net income attributable to |
|||
|
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 | ||||||||||||||
|
|
||||||||||||||
| (in millions) | 2014 | 2015 | Growth % | |||||||||||
| Revenue | $ | 17,408 | $ | 17,853 | 2.6 | % | ||||||||
| 2015 Super Bowl | - | (376 | ) | |||||||||||
| 2014 Olympics | (1,103 | ) | - | |||||||||||
| Revenue excluding 2015 Super Bowl and 2014 Olympics | $ | 16,305 | $ | 17,477 | 7.2 | % | ||||||||
| 2014 | 2015 | Growth % | ||||||||||||
| Operating Cash Flow | $ | 5,538 | $ | 5,956 | 7.6 | % | ||||||||
| Costs related to Time Warner Cable and Charter transactions | 17 | 99 | ||||||||||||
| Operating Cash Flow excluding costs related to Time Warner Cable and Charter transactions | $ | 5,555 | $ | 6,055 | 9.0 | % | ||||||||
| Reconciliation of Consolidated NBCUniversal Revenue Excluding 2015 Super Bowl and 2014 Olympics (Unaudited) | ||||||||||||||
| Three Months Ended | ||||||||||||||
|
|
||||||||||||||
| (in millions) | 2014 | 2015 | Growth % | |||||||||||
| Revenue | $ | 6,876 | $ | 6,604 | (4.0 | %) | ||||||||
| 2015 Super Bowl | - | (376 | ) | |||||||||||
| 2014 Olympics | (1,103 | ) | - | |||||||||||
| Revenue excluding 2015 Super Bowl and 2014 Olympics | $ | 5,773 | $ | 6,228 | 7.9 | % | ||||||||
| Reconciliation of Cable Networks Revenue Excluding 2014 Olympics (Unaudited) | ||||||||||||||
| Three Months Ended | ||||||||||||||
|
|
||||||||||||||
| (in millions) | 2014 | 2015 | Growth % | |||||||||||
| Revenue | $ | 2,505 | $ | 2,359 | (5.9 | %) | ||||||||
| 2014 Olympics | (257 | ) | - | |||||||||||
| Revenue excluding 2014 Olympics | $ | 2,248 | $ | 2,359 | 4.9 | % | ||||||||
| Reconciliation of Broadcast Television Revenue Excluding 2015 Super Bowl and 2014 Olympics (Unaudited) | ||||||||||||||
| Three Months Ended | ||||||||||||||
|
|
||||||||||||||
| (in millions) | 2014 | 2015 | Growth % | |||||||||||
| Revenue | $ | 2,621 | $ | 2,248 | (14.2 | %) | ||||||||
| 2015 Super Bowl | - | (376 | ) | |||||||||||
| 2014 Olympics | (846 | ) | - | |||||||||||
| Revenue excluding 2015 Super Bowl and 2014 Olympics | $ | 1,775 | $ | 1,872 | 5.5 | % | ||||||||
|
Note: Minor differences may exist due to rounding. |
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