Comcast Reports 2nd Quarter 2013 Results

Comcast Reports 2nd Quarter 2013 Results

Consolidated Revenue Increased 7.0%, Operating Cash Flow Increased 8.4% and Operating Income Increased 11.6%


Earnings per Share Increased 30.0% to $0.65

Free Cash Flow Increased 25.4% to $1.9 Billion

Quarterly Dividends and Share Repurchases Totaled $1.0 Billion

PHILADELPHIA--(BUSINESS WIRE)-- Comcast Corporation (NASDAQ: CMCSA, CMCSK) today reported results for the quarter ended June 30, 2013.

Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, "We are pleased with our results this quarter. Cable had outstanding growth, particularly in high-speed Internet, and NBCUniversal had strong performance across all of its businesses. Our focus on delivering innovative products and a superior customer experience is driving our success, including stronger video, voice and business services results in cable. NBCUniversal has real momentum, with solid growth in revenue and double-digit cash flow growth. We have a fantastic combination of cable and content businesses with many opportunities ahead."

    

Consolidated Financial Results

     
 2nd QuarterYear to Date
($ in millions) 2012 2013 Growth    2012 2013 Growth
Revenue $15,211 $16,270 7.0%    $30,089 $31,580 5.0%
Operating Cash Flow (OCF)1 $5,004 $5,425 8.4%    $9,692 $10,459 7.9%
Operating Income $3,079 $3,435 11.6%    $5,837 $6,502 11.4%
Earnings per Share2 $0.50 $0.65 30.0%    $0.94 $1.19 26.6%
Free Cash Flow3$1,554 $1,948 25.4%$4,593 $5,086 10.7%
 

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.

Revenue for the second quarter of 2013 increased 7.0% to $16.3 billion. Operating Cash Flow increased 8.4% to $5.4 billion and Operating Income increased 11.6% to $3.4 billion.

For the six months ended June 30, 2013, revenue increased 5.0% to $31.6 billion. Excluding $259 million of revenue generated by the NFL's Super Bowl in the first quarter of 2012, revenue increased 5.9% (see Table 5). Operating cash flow increased 7.9% to $10.5 billion and operating income increased 11.4% to $6.5 billion.

Earnings per Share (EPS) for the second quarter of 2013 was $0.65, a 30.0% increase from the $0.50 reported in the second quarter of 2012.

EPS for the six months ended June 30, 2013 was $1.19, a 26.6% increase from the $0.94 reported in the prior year. Excluding a $0.03 per share gain in the first quarter of 2013 on the sale of wireless spectrum licenses, EPS increased 23.4% (see Table 4).

Capital Expenditures increased 17.1% to $1.5 billion in the second quarter of 2013 compared to the second quarter of 2012. Cable Communications' capital expenditures increased $116 million, or 10.4%, to $1.2 billion in the second quarter of 2013, primarily reflecting increased spending on customer premises equipment, such as advanced digital boxes and wireless gateways, our ongoing investment in network infrastructure and the expansion of business services. Cable capital expenditures represented 11.9% of Cable revenue in the second quarter of 2013 compared to 11.4% in last year's second quarter. NBCUniversal's capital expenditures increased $104 million to $260 million in the second quarter of 2013, primarily reflecting increased investments in Theme Parks.

For the six months ended June 30, 2013, capital expenditures increased 16.5% to $2.9 billion compared to the prior year. Cable Communications capital expenditures increased $154 million, or 7.1%, to $2.3 billion and represented 11.3% of Cable revenue compared to 11.2% in 2012. NBCUniversal's capital expenditures increased $256 million to $523 million for the first six months of 2013.

Free Cash Flow (excluding any impact from the Economic Stimulus packages) increased 25.4% to $1.9 billion in the second quarter of 2013 compared to the second quarter of 2012, reflecting growth in consolidated operating cash flow and improvements in working capital, partially offset by higher taxes and capital expenditures. Free cash flow for the six months ended June 30, 2013 increased 10.7% to $5.1 billion compared to $4.6 billion in 2012.

  
2nd QuarterYear to Date
($ in millions) 2012 2013 Growth 2012 2013 Growth
Operating Cash Flow $5,004  $5,425  8.4% $9,692  $10,459  7.9%
Capital Expenditures  (1,287)  (1,506) 17.1%  (2,461)  (2,867) 16.5%
Cash Paid for Capitalized Software and Other Intangible Assets  (230)  (262) 13.9%  (414)  (444) 7.2%
Cash Interest Expense  (544)  (515) (5.3%)  (1,158)  (1,132) (2.2%)
Cash Taxes  (904)  (1,761) 94.8%  (1,022)  (2,222) 117.4%
Changes in Operating Assets and Liabilities  (305)  49  NM   41   418  NM 
Other  (13)  530  NM   82   886  NM 
Free Cash Flow (Incl. Economic Stimulus Packages) $1,721  $1,960  13.9% $4,760  $5,098  7.1%
Economic Stimulus Packages  (167)  (12) NM   (167)  (12) NM 
Free Cash Flow$1,554 $1,948 25.4%$4,593 $5,086 10.7%

 

Note: 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. "Other" in 2013 is substantially comprised of adjustments for cash taxes paid related to certain nonoperating transactions, as well as cash taxes paid in 2013 related to 2012 taxable income that were reflected as a reduction of 2012 Free Cash Flow.

NM=comparison not meaningful.

Dividends and Share Repurchases. During the second quarter of 2013, Comcast paid dividends totaling $514 million and repurchased 12.6 million of its common shares for $500 million. In the first six months of 2013, Comcast has repurchased 25.9 million of its common shares for $1.0 billion. As of June 30, 2013, Comcast had approximately $2.5 billion available under its share repurchase authorization.

     

Cable Communications

       
2nd QuarterYear to Date
($ in millions) 2012 2013 Growth    2012 2013 Growth
Cable Communications Revenue               
Video $5,039  $5,175  2.7%    $9,968  $10,288  3.2%
High-Speed Internet  2,380   2,569  8.0%     4,703   5,092  8.3%
Voice  889   910  2.4%     1,767   1,810  2.5%
Business Services  623   788  26.4%     1,204   1,529  26.9%
Advertising  551   558  1.2%     1,026   1,046  1.9%
Other  415   467  12.3%     828   919  10.9%
Cable Communications Revenue$9,897 $10,467 5.8%$19,496 $20,684 6.1%
                
Cable Communications OCF $4,101  $4,335  5.7%    $8,056  $8,554  6.2%
OCF Margin41.4%41.4%41.3%41.4%
                
Cable Communications Capital Expenditures $1,124  $1,240  10.4%    $2,180  $2,334  7.1%
Percent of Cable Communications Revenue11.4%11.9%11.2%11.3%
 

Revenue for Cable Communications increased 5.8% to $10.5 billion in the second quarter of 2013 compared to $9.9 billion in the second quarter of 2012, driven by increases of 8.0% in high-speed Internet, 26.4% in business services and 2.7% in video. The increase in revenue reflects rate adjustments, customers receiving higher levels of services and customer growth (see below).

For the six months ended June 30, 2013, Cable revenue increased 6.1% to $20.7 billion compared to $19.5 billion in 2012.

Combined Video, High-Speed Internet and Voice Customers increased by 189,000 in the second quarter of 2013, a 36.8% increase in net additions compared to second quarter 2012, reflecting growth in high-speed Internet and voice customers and reduced losses in video customers. As of June 30, 2013, video, high-speed Internet and voice customers totaled 52.1 million, an increase of 1.6 million or 3.1% over last year's second quarter.

 Customers    Net Adds
(in thousands) 2Q12 2Q13    2Q122Q13
Video Customers 22,118 21,776    (176)(159)
High-Speed Internet Customers 18,738  Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

Markets

DJIA21,580.07-31.71-0.15%
NASDAQ6,387.75-2.25-0.04%
S&P 5002,472.54-0.91-0.04%
NIKKEI 22520,099.75-44.84-0.22%
HANG SENG26,706.09-34.12-0.13%
DAX12,240.06-207.19-1.66%
USD (per EUR)1.170.000.01%
USD (per CHF)0.950.000.02%
JPY (per USD)111.120.010.00%
GBP (per USD)1.300.000.01%
More to Explore
Sat, Jul 22
Set Your Location
City, State, or Zip