Comcast Reports Third Quarter 2009 Results Consolidated Revenue Increased 3.0%

PHILADELPHIA, Nov 04, 2009 (BUSINESS WIRE) -- --Consolidated Operating Cash Flow Increased 2.7% --Consolidated Operating Income Increased 2.4% --Earnings per Share of $0.33 Increased 26.9% --Free Cash Flow Increased 19.8% to $1.1 Billion --Repurchased 16.1 Million Common Shares for $250 Million Comcast Corporation (NASDAQ:CMCSA, CMCSK) today reported results for the quarter ended September 30, 2009.

Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, "The strength and resilience of our businesses combined with our continued emphasis on expenses and prudent capital management helped us achieve healthy operating and financial results in the third quarter. We continued to execute well, maintaining our focus on balancing revenue, cash flow and customer growth while at the same time investing in attractive businesses like Comcast Business Services. We also made real progress on initiatives like Wideband and All-Digital that strengthen our competitive position now and in the future. Our goal is to deliver the best consumer experience in the marketplace and we remain focused on driving meaningful innovation in all of our products and services." Consolidated Financial Results Revenue increased 3.0% in the third quarter of 2009 to $8.8 billion, while Operating Cash Flow increased 2.7% to $3.3 billion and Operating Income increased 2.4% to $1.7 billion. This growth was due to solid results at all our operating segments.

For the nine months ended September 30, 2009, revenue increased 4.3% to $26.6 billion, Operating Cash Flow increased 5.6% to $10.3 billion, and Operating Income increased 8.5% to $5.4 billion, all compared to the same time period in 2008.

($ in millions) 3rd Year to Date Quarter 2008 2009 Growth 2008 2009 Growth Revenue Cable $ 8,131 $ 8,356 2.8 % $ 24,147 $ 25,181 4.3 % Programming 347 383 10.3 % 1,076 1,128 4.8 % Corporate & Other 71 63 (10.7 %) 268 266 (0.8 %) Total Consolidated Revenue $ 8,549 $ 8,802 3.0 % $ 25,491 $ 26,575 4.3 % Operating Cash Flow (OCF) Cable $ 3,251 $ 3,314 2.0 % $ 9,755 $ 10,221 4.8 % Programming 105 118 12.5 % 307 343 11.9 % Corporate & Other (119 ) (106 ) 10.0 % (300 ) (259 ) 13.4 % Total Consolidated OCF $ 3,237 $ 3,326 2.7 % $ 9,762 $ 10,305 5.6 % For additional detail on revenue and operating expenses, customer metrics, and capital expenditures, please refer to the trending schedules on Comcast's Investor Relations website at www.cmcsa.com or www.cmcsk.com.

Earnings per Share (EPS) for the quarter ended September 30, 2009 was $0.33, an increase of 26.9% compared to the $0.26 reported in the third quarter of 2008.

Third quarter 2009 EPS includes the recognition of income tax benefits of $251 million or $0.09 per share, partially offset by $113 million or $0.04 per share in one-time financing expenses. Third quarter 2008 EPS included income tax benefits of $80 million or $0.03 per share. Except for these items, third quarter 2009 EPS would have grown 21.7% over the comparable 2008 period.

Earnings per Share for the nine months ended September 30, 2009 was $0.93, an increase of 29.2% compared to $0.72 reported in the prior year. Our 2009 EPS includes favorable settlements and the recognition of income tax benefits of $436 million or $0.16 per share, partially offset by $113 million or $0.04 per share in one-time financing expenses. Our 2008 EPS included a gain related to the January 2008 dissolution of the Insight Midwest partnership of $144 million or $0.05 per share and income tax benefits of $80 million or $0.03 per share.

Except for these items, year-to-date EPS would have grown 26.6% over the comparable period in 2008.

Capital Expenditures in the third quarter declined 6.1% from the prior year to $1.2 billion, or 13.9% of total revenue, reflecting a decreased level of capital intensity at our Cable segment. For the nine months ended September 30, 2009, capital expenditures decreased 13.1% to $3.5 billion, or 13.2% of total revenue.

Free Cash Flow (FCF) (excluding any impact from the Economic Stimulus packages) of $1.1 billion in the third quarter of 2009 increased 19.8% compared to $928 million in the third quarter of 2008, reflecting growth in Consolidated Operating Cash Flow and lower capital expenditures. Free Cash Flow for the nine months ended September 30, 2009 totaled $3.6 billion, a 30.6% increase as compared to $2.8 billion in the same time period in 2008.

($ in millions) 3rd Year to Date Quarter 2008 2009 Growth 2008 2009 Growth Net Cash Provided by Operating Activities $ 2,445 $ 2,612 6.8 % $ 7,373 $ 7,725 4.8 % Capital Expenditures (1,306 ) (1,227 ) (6.1 %) (4,037 ) (3,508 ) (13.1 %) Cash Paid for Capitalized Software and Intangibles (131 ) (142 ) 8.4 % (376 ) (383 ) 1.9 % Adjustments for Payment of Tax on Nonoperating Items 88 (84 ) NM 316 66 NM FCF (Including Economic Stimulus Packages) $ 1,096 $ 1,159 5.7 % $ 3,276 $ 3,900 19.0 % Impact from Economic Stimulus Packages (168 ) (47 ) NM (483 ) (252 ) NM Free Cash Flow $ 928 $ 1,112 19.8 % $ 2,793 $ 3,648 30.6 % Note: The definition of Free Cash Flow remains unchanged and specifically excludes any impact from the 2008 or 2009 Economic Stimulus packages.

Cable Segment Results Revenue from the Cable segment increased 2.8% to $8.4 billion for the third quarter of 2009 as compared to $8.1 billion in the third quarter of 2008. This increase reflects continued growth in high-speed Internet (HSI), Comcast Digital Voice (CDV) and Comcast Business Services, partially offset by lower advertising revenue. The monthly average total revenue per video customer increased 5.6% to $116.91 from $110.67 in the third quarter of 2008, reflecting an increasing number of customers taking multiple products and a higher contribution from Comcast Business Services.

For the nine months ended September 30, 2009, revenue from the Cable segment increased 4.3% to $25.2 billion compared to $24.1 billion in 2008.

Operating Cash Flow from the Cable segment grew 2.0% to $3.3 billion in the third quarter of 2009 compared to the same period last year. Operating Cash Flow margin was 39.7%, a slight decrease from the 40.0% achieved in the third quarter of 2008. These results reflect increases in video programming, customer service and marketing expenses, partially offset by improved operating efficiencies in Comcast Digital Voice and High-Speed Internet.

For the nine months ended September 30, 2009, Operating Cash Flow from the Cable segment increased 4.8% to $10.2 billion compared to $9.8 billion in 2008.

Year-to-date Operating Cash Flow margin was 40.6%, a slight increase from the 40.4% reported in the first nine months of 2008.

Customers2. As of September 30, 2009, Comcast's video, high-speed Internet and voice customers totaled 46.8 million, an increase of 3.4% compared to the third quarter of 2008.

(in thousands) Customers Net Adds 3Q08 3Q09 Growth 3Q09 YTD Video Customers 24,415 23,759 (2.7 %) (132 ) (424 ) High-Speed Internet Customers 14,745 15,684 6.4 % 361 755 Voice Customers 6,133 7,379 20.3 % 375 906 Combined Video, HSI and Voice Customers 45,294 46,821 3.4 % 604 1,237 Digital Video Customers 16,758 18,005 7.4 % 463 1,001 Total Revenue Generating Units 62,051 64,826 4.5 % 1,067 2,238 Programming Segment Results The Programming segment reported third quarter 2009 revenue of $383 million, a 10.3% increase from 2008, reflecting higher affiliate and advertising revenue.

Operating Cash Flow increased 12.5% to $118 million in the third quarter of 2009, reflecting the impact of timing of certain marketing and programming expenses which are expected to be incurred in the fourth quarter.

For the nine months ended September 30, 2009, the Programming segment revenue increased 4.8% to $1.1 billion compared to the same time period in 2008.

Operating Cash Flow increased to $343 million, an increase of 11.9% from the same period last year.

Corporate and Other Corporate and Other includes corporate overhead, Comcast Interactive Media (CIM), Comcast-Spectacor, and other operations and eliminations between Comcast's businesses. For the quarter ended September 30, 2009, Corporate and Other reported a 10.7% decrease in revenue to $63 million, driven by an increase in corporate eliminations. The Operating Cash Flow loss for the third quarter of 2009 was $106 million compared to a loss of $119 million in the third quarter of 2008.

For the nine months ended September 30, 2009, Corporate and Other revenue reported a 0.8% decrease in revenue to $266 million from the $268 million reported in the first nine months of 2008. The Operating Cash Flow loss was $259 million compared to a loss of $300 million in the same time period in 2008.

Share Repurchase In the third quarter of 2009, Comcast repurchased 16.1 million of its common shares for $250 million. Year-to-date, Comcast has repurchased 31.6 million of its common shares for $465 million. As of September 30, 2009, Comcast had approximately $3.6 billion of availability remaining under its share repurchase authorization, and may repurchase stock from time to time subject to market conditions.

Dividend During the first ten months of 2009, Comcast paid four cash dividends totaling $761 million. Comcast paid quarterly cash dividends of $180 million on January 28, 2009, $195 million on April 29, 2009, $194 million on July 29, 2009 and $193 million on October 28, 2009.

Notes: 1 Earnings per share amounts are presented on a diluted basis. 2 Customer data is presented on a pro forma basis. Pro forma customer data includes 7,000 video customers acquired through an acquisition in November 2008. The impact of this acquisition on segment operating results was not material. Minor differences may exist due to rounding. Conference Call Information Comcast Corporation will host a conference call with the financial community today, November 4, 2009 at 8:30 a.m. Eastern Time (ET). The conference call will be broadcast live on Comcast's Investor Relations website at www.cmcsa.com or www.cmcsk.com. Those parties interested in participating via telephone should dial [phone] with the conference ID number 31876445. A replay of the call will be available on the Investor Relations website starting at 12:30 p.m.

Eastern Time (ET) on Wednesday, November 4, 2009 and will be available until Monday, November 9, 2009 at midnight Eastern Time (ET). To access the rebroadcast, please dial [phone] and enter conference ID number 31876445.

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. All percentages are calculated on whole numbers. Minor differences may exist due to rounding.

About Comcast Corporation Comcast Corporation (Nasdaq:CMCSA, CMCSK) (www.comcast.com) is the nation's leading provider of entertainment, information and communication products and services. With 23.8 million video customers, 15.7 million high-speed Internet customers, and 7.4 million Comcast Digital Voice customers, Comcast is principally involved in the development, management and operation of cable systems and in the delivery of programming content.

Comcast's content networks and investments include E! Entertainment Television, Style Network, Golf Channel, VERSUS, G4, PBS KIDS Sprout, TV One, ten sports networks operated by Comcast Sports Group and Comcast Interactive Media, which develops and operates Comcast's Internet businesses, including Comcast.net (www.comcast.net). Comcast also has a majority ownership in Comcast-Spectacor, whose major holdings include the Philadelphia Flyers NHL hockey team, the Philadelphia 76ers NBA basketball team and two large multipurpose arenas in Philadelphia.

Comcast Corporation

TABLE 1

Condensed Consolidated Statement of Operations (Unaudited)

Three Months Ended

Nine Months Ended (in millions, except per share data) September 30,

September 30,

2008 2009

2008 2009 Revenue $ 8,549 $ 8,802 $ 25,491 $ 26,575

Operating expenses 3,345 3,490 10,040 10,600 Selling, general and administrative expenses 1,967 1,986 5,689 5,670

5,312 5,476 15,729 16,270 Operating cash flow 3,237 3,326 9,762 10,305

Depreciation expense 1,332 1,362 4,093 4,148 Amortization expense 235 253 694 760

1,567 1,615 4,787 4,908 Operating income 1,670 1,711 4,975 5,397

Other income (expense)

Interest expense (601 ) (707 ) (1,840 ) (1,828 ) Investment income (loss), net 74 148 83 218 Equity in net income (losses) of affiliates, net 3 (17 ) (36 ) (44 ) Other income (expense) 11 2 295 13

(513 ) (574 ) (1,498 ) (1,641 )

Income before income taxes 1,157 1,137 3,477 3,756

Income tax expense (401 ) (203 ) (1,364 ) (1,088 )

Net income from consolidated operations 756 934 2,113 2,668

Net (income) loss attributable to noncontrolling interests 15 10 22 15

Net income attributable to Comcast Corporation $ 771 $ 944 $ 2,135 $ 2,683

Diluted earnings per common share attributable to Comcast $ 0.26 $ 0.33 $ 0.72 $ 0.93 Corporation stockholders

Dividends declared per common share attributable to Comcast $ 0.06 $ 0.07 $ 0.19 $ 0.20 Corporation stockholders

Diluted weighted-average number of common shares 2,920 2,877 2,973 2,890

Comcast Corporation

TABLE 2

Condensed Consolidated Balance Sheet (Unaudited)

(in millions) December 31,

September 30,

2008

2009 ASSETS

Current Assets

Cash and cash equivalents $ 1,195

$ 862 Investments 59

56 Accounts receivable, net 1,626

1,639 Other current assets 836

849 Total current assets 3,716

3,406

Investments 4,783

5,699

Property and equipment, net 24,444

23,605

Franchise rights 59,449

59,442

Goodwill 14,889

14,934

Other intangible assets, net 4,558

4,209

Other noncurrent assets, net 1,178

1,168

$ 113,017

$ 112,463

LIABILITIES AND EQUITY

Current Liabilities

Accounts payable and accrued expenses related to trade creditors $ 3,393

$ 3,133 Accrued expenses and other current liabilities 3,268

3,005 Current portion of long-term debt 2,278

954 Total current liabilities 8,939

7,092

Long-term debt, less current portion 30,178

28,493

Deferred income taxes 26,982

27,566

Other noncurrent liabilities 6,171

6,763

Redeemable noncontrolling interests 171

168

Equity

Comcast Corporation stockholders' equity 40,450

42,311 Noncontrolling interests 126

70 Total Equity 40,576

42,381

$ 113,017

$ 112,463

Comcast Corporation

TABLE 3

Consolidated Statement of Cash Flows (Unaudited)

(in millions) Nine Months Ended

September 30,

2008

2009

OPERATING ACTIVITIES

Net income from consolidated operations $ 2,113 $ 2,668 Adjustments to reconcile net income from consolidated operations to

net cash provided by operating activities:

Depreciation 4,093 4,148 Amortization 694

760 Share-based compensation 195

192 Noncash interest expense (income), net 164

125 Equity in net (income) losses of affiliates, net 36

44 (Gains) losses on investments and noncash other (income) expense, net (287 ) (146 ) Deferred income taxes 609

572 Changes in operating assets and liabilities, net of effects of

acquisitions and divestitures:

Change in accounts receivable, net 4

(11 ) Change in accounts payable and accrued expenses related to trade (21

) (73 ) creditors

Change in other operating assets and liabilities (227 ) (554 )

Net cash provided by operating activities 7,373 7,725

FINANCING ACTIVITIES

Proceeds from borrowings 3,513 1,843 Repurchases and repayments of debt (1,143 ) (4,709 ) Repurchases of common stock (2,800 ) (438 ) Dividends paid (367 ) (568 ) Issuances of common stock 53

1 Other (148 ) (186 )

Net cash provided by (used in) financing activities (892 ) (4,057 )

INVESTING ACTIVITIES

Capital expenditures (4,037 ) (3,508 ) Cash paid for software and other intangible assets (376 ) (383 ) Acquisitions, net of cash acquired (700 ) (36 ) Proceeds from sales of investments 452

31 Purchases of investments (67

) (142 ) Other (2

) 37

Net cash provided by (used in) investing activities (4,730 ) (4,001 )

Increase (decrease) in cash and cash equivalents 1,751 (333 )

Cash and cash equivalents, beginning of period 963

1,195

Cash and cash equivalents, end of period $ 2,714 $ 862

SOURCE: Comcast Corporation CONTACT: Comcast Corporation Investor Contacts: Marlene S. Dooner, 215-286-7392 Jane B. Kearns, 215-286-4794 Michael A. Kelman, 215-286-3035 or Press Contacts: D'Arcy Rudnay, 215-286-8582 John Demming, 215-286-8011 Copyright Business Wire 2009 -0- KEYWORD: United States

North America

Pennsylvania INDUSTRY KEYWORD: Entertainment

TV and Radio

Technology

Hardware

Internet

Telecommunications SUBJECT CODE: Earnings

Conference Call