Comcast Corp. (CMCSA) reported strong financial results for the first quarter of 2014. The company maintained its subscriber growth for the second consecutive quarter by adding 24,000 video subscribers against a loss of 25,000 subscribers in the prior-year quarter.
Comcast currently has a Zacks Rank #3 (Hold).
First-Quarter Results in Detail
GAAP net income for the first quarter of 2014 came in at $1,871 million or 71 cents per share compared with $1,437 million or 54 cents per share in the prior-year quarter. Further, quarterly adjusted earnings per share of 68 cents steered past the Zacks Consensus Estimate of 64 cents. Total revenue stood at $17,408 million, up 13.7% year over year and also above the Zacks Consensus Estimate of $17,119 million.
Quarterly operating costs and expenses were $11,870 million, up 13.4% year over year. However, quarterly operating income came in at $3,568 million, representing annualized growth of 16.3%. Operating margin was 20.5% compared with 20% in the prior-year quarter. During the first quarter, Comcast repurchased 15 million worth of common shares for $750 million and paid dividends valued $508 million.
In the first quarter of 2014, Comcast generated $4,486 million of cash from operations compared with $4,369 million in the year-ago quarter. Consolidated free cash flow stood at $3,038 million as against $3,008 million in the prior-year quarter. Cash and marketable securities, at the end of the first quarter of 2014, were $5,443 million against $5,291 million at the end of 2013. Total debt at the end of the reported quarter was $44,581 million as against $44,567 million at the end of 2013. The debt-to-capitalization ratio was 0.46 versus 0.47 at the end of 2013.
Cable Communications Segment
Quarterly total revenue of $10,757 million reflected a 5.3% year-over-year rise. Operating cash flow was $4,400 million, up 4.3% year over year. Within this segment, Video revenues were $5,178 million, up 1.3% from the prior-year quarter. High-Speed Internet revenues totaled $2,750 million, up 9% year over year. Voice revenues were $920 million, up 2.1% year over year. Advertising revenues were $519 million, up 6.2% from the year-ago quarter. Business Services revenues were $917 million, up 23.9% year over year. Other revenues were $473 million, up 4.8% from the prior-year quarter.
On Jan 31, 2014, Comcast had 21.068 million (up 6% year over year) High-Speed Internet customers; 10.865 million (up 6.4% year over year) Voice customers; and 22.601 million (down 1% year over year) Video customers. The company added a net of 383,000 High-Speed Internet customers compared with 433,000 in the year-ago quarter. Similarly, Comcast added 142,000 voice customers as against 211,000 in the prior-year quarter.
NBC Universal Segment
Quarterly total revenue of $6,876 million highlighted an 8.1% year-over-year hike. Operating cash flow was $1,311 million, indicated a 37.6% year-over-year increase. Within this segment, Cable Networks revenues were $2,505 million, up 12.6% year over year. Broadcast TV revenues came in at $2,621 million, up by a whopping 72.8% year over year. Filmed Entertainment revenues were $1,351 million, up 11.1% from the year-ago quarter. Theme Parks revenues were $487 million, up 5.4% year over year.
Our Take
Comcast completed its major technical innovations, such as DOCSIS 3.0, all digital networks and a multi-platform content delivery network. Moreover, launch of innovative services such as Xfinity Home, Wi-Fi, Streampix, X1, upcoming X2 and the high-speed Metro Ethernet will not only drive subscriber growth for the company but will also safeguard its position against major carriers like Verizon Communications Inc. (VZ) and AT&T Inc. (T) and online video streaming service providers like Netflix Inc. (NFLX).
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment