August 1, 2012

Comcast Reports 2nd Quarter 2012 Results

Consolidated Revenue Increased 6%, Operating Cash Flow Increased 4% and Operating Income Increased 5%

Earnings per Share Increased 35% to $0.50

Generated $1.6 Billion of Free Cash Flow

Dividends and Share Repurchases Totaled $1.2 Billion

PHILADELPHIA--(BUSINESS WIRE)-- Comcast Corporation (NASDAQ: CMCSA, CMCSK) today reported results for the quarter ended June 30, 2012.

Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, "Our solid operating and financial results for the second quarter underscore the strength of our cable company and our focus on driving operational excellence and technology innovations. We are improving the customer experience and delivering exceptional products, which are the foundation for cable's continued momentum in High-Speed Internet and Business Services and stronger Video and Voice customer results.

NBCUniversal's second quarter performance came in as anticipated, and we continue to be very positive about our opportunities to build value across all the NBCUniversal businesses. Comcast Cable and NBCUniversal are also working well together to launch innovative products and experiences - and these efforts are being showcased now as we utilize all of our content and technology platforms to deliver the most comprehensive Olympics coverage ever."

 

Consolidated Financial Results

 
($ in millions)    

2nd Quarter

   

Year to Date

Consolidated Results

2011

   

2012*

   

Growth

2011**

   

2012*

   

Growth

 
Revenue $14,333 $15,211 6.1% $26,461 $30,089 13.7%
Operating Cash Flow (OCF)1 $4,801 $5,004 4.2% $8,867 $9,692 9.3%
Operating Income $2,938 $3,079 4.8% $5,162 $5,837 13.1%
Earnings per Share2 $0.37 $0.50 35.1% $0.70 $0.94 34.3%
Free Cash Flow3 $1,520 $1,554 2.2% $3,741 $4,593 22.8%
 
*2012 includes 100% of Universal Orlando results.
**Year to date 2011 includes 5 months of NBCUniversal results.
 

For additional detail on segment revenue and expenses, customer metrics, capital expenditures, and free cash flow, please refer to the trending schedules on Comcast's Investor Relations website at www.cmcsa.com or www.cmcsk.com.

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

Revenue increased 6.1% in the second quarter of 2012 to $15.2 billion, while Operating Cash Flow increased 4.2% to $5.0 billion and Operating Income increased 4.8% to $3.1 billion.

For the six months ended June 30, 2012, revenue increased 13.7% to $30.1 billion, while operating cash flow increased 9.3% to $9.7 billion and operating income increased 13.1% to $5.8 billion.

Earnings per Share (EPS) for the second quarter of 2012 was $0.50, a 35.1% increase from the $0.37 reported in the second quarter of 2011. Excluding a $137 million non-cash, non-recurring income tax charge in the second quarter of 2011, EPS increased 19.0% in the second quarter of 2012 (see Table 4).

EPS for the six months ended June 30, 2012 was $0.94, a 34.3% increase from the $0.70 reported in the prior year. Excluding NBCUniversal transaction and related costs incurred in the first six months of 2011 and the non-cash, non-recurring income tax charge noted above, EPS increased 22.1% (see Table 4).

Free Cash Flow (excluding any impact from the Economic Stimulus packages) for the second quarter of 2012 increased 2.2% to $1.6 billion compared to the second quarter of 2011, reflecting growth in consolidated operating cash flow and improvements in working capital, partially offset by higher taxes and capitalized software and intangible asset expenditures. Free cash flow for the six months ended June 30, 2012 increased 22.8% to $4.6 billion compared to $3.7 billion in 2011.

       
($ in millions)

2nd Quarter

Year to Date

Free Cash Flow

2011

   

2012*

   

Growth

2011**

   

2012*

   

Growth

Operating Cash Flow $4,801 $5,004 4.2% $8,867 $9,692 9.3%
Capital Expenditures (1,271) (1,287) 1.3% (2,377) (2,461) 3.5%

Cash Paid for Capitalized Software and Other Intangible Assets

(173) (230) 32.9% (296) (414) 39.9%
Cash Interest Expense (540) (544) 0.7% (1,197) (1,158) (3.3%)
Cash Taxes (496) (904) 82.3% (570) (1,022) 79.3%
Changes in Operating Assets and Liabilities (428) (305) (28.7%) (421) 41 NM
Noncash Share-Based Compensation 90 100 11.1% 174 189 8.6%
Proceeds from Investments and Other 75 77 2.7% 143 152 6.3%
Distributions to Noncontrolling Interests (129) (175) 35.7% (175) (233) 33.1%
Excess Tax Benefits Under Share-Based Compensation (14) (6) (57.1%) (40) (79) 97.5%
Nonoperating Items (9)     (9)     19     53     NM
Free Cash Flow (Incl. Economic Stimulus Packages) $1,906 $1,721 (9.7%) $4,127 $4,760 15.3%
Economic Stimulus Packages (386)     (167)     (56.7%) (386)     (167)     (56.7%)
Free Cash Flow $1,520 $1,554 2.2% $3,741 $4,593 22.8%
 
*2012 includes 100% of Universal Orlando results.
**Year to date 2011 includes 5 months of NBCUniversal results.
 

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

Dividends and Share Repurchases. During the second quarter of 2012, Comcast paid dividends totaling $438 million and repurchased 25.8 million of its common shares for $750 million. Year-to-date, Comcast has repurchased 51.7 million of its common shares for $1.5 billion. As of June 30, 2012, Comcast had approximately $5.0 billion available under its share repurchase authorization.

Pro Forma Financial Results

Pro forma results are presented as if the NBCUniversal transaction, which closed on January 28, 2011, and the Universal Orlando transaction, which closed on July 1, 2011, were effective on January 1, 2010. These results are based on historical results of operations, adjusted for the effects of acquisition accounting and eliminating the costs and expenses directly related to the transaction, and are not necessarily indicative of what the results would have been had Comcast operated NBCUniversal and Universal Orlando since January 1, 2010 (see Table 5 for reconciliations of pro forma financial information).

       
($ in millions)

2nd Quarter

Year to Date

Consolidated Pro Forma Results

2011

   

2012

   

Growth

2011

   

2012

   

Growth

 
Revenue $14,700 $15,211 3.5% $28,280 $30,089 6.4%
Operating Cash Flow (OCF) $4,960 $5,004 0.9% $9,236 $9,692 4.9%
 

Consolidated Pro Forma Revenue increased 3.5% in the second quarter of 2012 to $15.2 billion compared to $14.7 billion in the second quarter of 2011. Consolidated Pro Forma Operating Cash Flow increased 0.9% to $5.0 billion compared to last year's second quarter.

For the six months ended June 30, 2012, consolidated pro forma revenue increased 6.4% to $30.1 billion compared to $28.3 billion in 2011. Consolidated pro forma operating cash flow increased 4.9% to $9.7 billion compared to $9.2 billion in the first six months of 2011.

Cable Communications

       
($ in millions)

2nd Quarter

Year to Date

2011

   

2012

   

Growth

2011

   

2012

   

Growth

Cable Communications Revenue
Video $4,941 $5,079 2.8% $9,832 $10,048 2.2%
High-Speed Internet 2,186 2,380 8.9% 4,292 4,703 9.6%
Voice


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