Wednesday, August 5, 2009

Comcast Revenues Up 4.5%, All-Digital Initiative Advances

Comcast's revenue increased 4.5% in the second quarter of 2009 to $8.9 billion, while operating cash flow increased 5.5% to $3.5 billion and operating Income increased 7.1% to $1.9 billion. Earnings per Share (EPS) for the quarter ended June 30, 2009 was $0.33, an increase of 57.1% compared to the $0.21 reported in the second quarter of 2008. This quarter's results include favorable settlements related to federal and state taxes.

"We delivered solid results in the second quarter, highlighting the strength of our subscription businesses and our continued focus on expense and capital management. At the same time, we are innovating and investing in our products and services and executing on our strategic initiatives, including going "All-Digital", deploying wideband, and launching a wireless service and On Demand Online," stated Brian L. Roberts, Chairman and CEO.

Some highlights for the quarter:

  • As of June 30, 2009, Comcast's video, high-speed Internet and voice customers totaled 46.2 million, an increase of 3.7% compared to the second quarter of 2008.

  • Capital Expenditures in the second quarter decreased 13.7% from the prior year to $1.1 billion, or 12.5% of total revenue, reflecting a decreased level of capital intensity at our Cable segment. For the six months ended June 30, 2009, capital expenditures decreased 16.5% to $2.3 billion, or 12.8% of total revenue.

  • Cable segment increased 4.6% to $8.5 billion for the second quarter of 2009 as compared to $8.1 billion in the second quarter of 2008. This increase reflects continued, organic growth in all residential and commercial subscription businesses, partially offset by lower advertising revenue.

  • The monthly average total revenue per video customer increased 7.4% from $109.61 in the second quarter of 2008 to $117.74, reflecting an increasing number of customers taking multiple products and a higher contribution from Comcast Business Services.

  • Significant progress in its all-Digital transition. Currently, 10% of systems have converted to all digital, while 30% are in transition. Portland went all digital in June. By the end of the year, one third of systems will complete the conversion. Costs have been below expectations.

  • <4G wireless service was launched in Portland and Atlanta.

  • Launched an "On Demand Online" market trial allowing authenticated customers to access content via the Web. The service currently offers 4,000 titles. Comcast expects a wider launch this Fall.