July 22, 2014

Comcast Reports 2nd Quarter 2014 Results

Consolidated 2nd Quarter 2014 Highlights:

  • Consolidated Revenue Increased 3.5%, Operating Cash Flow Increased 7.0% and Operating Income Increased 10.7%
  • Earnings per Share Increased 16.9% to $0.76; Excluding Gain on a Sale and Transaction-Related Costs, EPS Increased 15.4% to $0.75
  • Quarterly Dividends and Quarterly Share Repurchases Increased 31.7% to $1.3 Billion

Cable Communications 2nd Quarter 2014 Highlights:

  • Cable Communications Revenue Increased 5.4% and Operating Cash Flow Increased 5.3%
  • High-Speed Internet Customers Increased by 203,000; The Best Second Quarter Net Additions in Six Years
  • Video Customer Net Losses Declined to 144,000; The Best Second Quarter Result in Six Years
  • Business Services Revenue Increased 22.4%, Approaching a $4 Billion Annual Run-Rate

NBCUniversal 2nd Quarter 2014 Highlights:

  • NBCUniversal Revenue Increased 0.3% and Operating Cash Flow Increased 20.4%, as Operating Cash Flow Margins Expanded to 23.8% from 19.9% in the Prior Year Period
  • NBC Ended the Broadcast Season Rated #1 Among Adults 18-49
  • Extended Rights for an Additional Six Olympic Games Through 2032

PHILADELPHIA--(BUSINESS WIRE)-- Comcast Corporation (NASDAQ: CMCSA, CMCSK) today reported results for the quarter ended June 30, 2014.

Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, "We continue to see strong momentum across our cable and content businesses. In Cable, we posted the best second quarter customer results for both video and high-speed Internet in six years and saw tremendous demand for our X1 product, which is a truly transformative experience. We are also pleased with the continued rapid growth of business services, which has quickly become an important engine for the company. NBCUniversal had another excellent quarter with double-digit operating cash flow growth driven by solid results in each segment and a first place finish for NBC for the 2013/2014 broadcast television season."

 

Consolidated Financial Results

  2nd Quarter       Year to Date
($ in millions)   2013   2014   Growth       2013   2014   Growth
Revenue $16,270   $16,844   3.5 % $31,580   $34,252   8.5 %
Excluding Olympics                   $31,580   $33,149   5.0 %
Operating Cash Flow1 $5,425 $5,804 7.0 % $10,459 $11,342 8.4 %
Excluding TWC and Charter Transaction-Related Costs   $5,425   $5,848   7.8 %       $10,459   $11,403   9.0 %
Operating Income   $3,435   $3,804   10.7 %       $6,502   $7,372   13.4 %
Earnings per Share2 $0.65 $0.76 16.9 % $1.19 $1.47 23.5 %
Excluding Adjustments (see Table 4)   $0.65   $0.75   15.4 %       $1.16   $1.43   23.3 %
Free Cash Flow3 $1,948 $1,155 (40.7 %) $5,086 $3,979 (21.8 %)
 

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 2014 increased 3.5% to $16.8 billion. Consolidated Operating Cash Flow increased 7.0% to $5.8 billion. Excluding $44 million of Time Warner Cable and Charter transaction-related costs in the second quarter of 2014, consolidated operating cash flow increased 7.8% (See Table 5). Consolidated Operating Income increased 10.7% to $3.8 billion.

For the six months ended June 30, 2014, consolidated revenue increased 8.5% to $34.3 billion. Excluding $1.1 billion of revenue generated by the Sochi Olympics in the first quarter of 2014, consolidated revenue increased 5.0%. Consolidated operating cash flow increased 8.4% to $11.3 billion. Excluding $61 million of transaction-related costs in the first six months of 2014, consolidated operating cash flow increased 9.0% (See Table 5). Consolidated operating income increased 13.4% to $7.4 billion.

Earnings per Share (EPS) for the second quarter of 2014 was $0.76, a 16.9% increase from the $0.65 reported in the second quarter of 2013. Excluding a gain on the sale of an investment and transaction-related costs in the second quarter of 2014, EPS increased 15.4% to $0.75 (see Table 4).

EPS for the six months ended June 30, 2014 was $1.47, a 23.5% increase from the $1.19 reported in the prior year. Excluding 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, as well as a gain on the sale of wireless spectrum licenses in the first quarter of 2013, EPS increased 23.3% to $1.43 (see Table 4).

Capital Expenditures increased 19.4% to $1.8 billion in the second quarter of 2014 compared to the second quarter of 2013. Cable Communications' capital expenditures increased $253 million, or 20.4%, to $1.5 billion in the second quarter of 2014, primarily reflecting increased spending on customer premise equipment related to the deployment of the X1 platform and Cloud DVR, as well as our investment in network infrastructure to increase network capacity. Cable capital expenditures represented 13.5% of Cable revenue in the second quarter of 2014 compared to 11.9% in last year's second quarter. NBCUniversal's capital expenditures increased $38 million, or 14.3%, to $298 million in the second quarter of 2014, primarily reflecting increased investments in Theme Parks and facilities.

For the six months ended June 30, 2014, capital expenditures increased 13.2% to $3.2 billion compared to the prior year. Cable Communications capital expenditures increased $304 million, or 13.0%, to $2.6 billion and represented 12.1% of Cable revenue compared to 11.3% in 2013. NBCUniversal's capital expenditures increased $66 million, or 12.5%, to $589 million for the first six months of 2014.

Free Cash Flow decreased 40.7% to $1.2 billion in the second quarter of 2014 compared to $1.9 billion in the second quarter of 2013, reflecting increased working capital, mainly driven by higher film and TV production spend, as well as increased capital expenditures and cash taxes on operating items, partially offset by growth in consolidated operating cash flow. Free cash flow for the six months ended June 30, 2014 decreased 21.8% to $4.0 billion compared to $5.1 billion in 2013.

       
2nd Quarter Year to Date
($ in millions)   2013     2014     Growth       2013     2014     Growth
Operating Cash Flow   $5,425     $5,804     7.0 %       $10,459     $11,342     8.4 %
Capital Expenditures   (1,506 )   (1,798 )   19.4 %       (2,867 )   (3,246 )   13.2 %
Cash Paid for Capitalized Software and Other Intangible Assets   (262 )   (260 )   (0.8 %)       (444 )   (477 )   7.4 %
Cash Interest Expense   (515 )   (541 )   5.0 %       (1,132 )   (1,164 )   2.8 %
Cash Taxes on Operating Items   (1,347 )   (1,570 )   16.6 %       (1,541 )   (1,838 )   19.3 %
Changes in Operating Assets and Liabilities   49     (638 )  

 

NM

      418     (905 )  

 

NM

Noncash Share-Based Compensation  

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