Comcast Corp. CMCSA reported strong financial results in the first quarter of 2015 wherein both the top and the bottom line surpassed the respective Zacks Consensus Estimate. Comcast currently carries a Zacks Rank #3 (Hold).
GAAP net income in the first quarter of 2015 came in at $2,059 million or 81 cents per share compared with $1,871 million or 71 cents in the prior-year quarter. Quarterly adjusted earnings per share of 79 cents outpaced the Zacks Consensus Estimate of 74 cents.
Meanwhile, total revenue stood at $17,853 million, up 2.6% year over year and also above the Zacks Consensus Estimate of $17,345 million.
Quarterly operating costs and expenses totaled $11,897 million, up 0.2% year over year. However, quarterly operating income came in at $3,890 million, representing annualized growth of 9%. Operating margin was 21.8% compared with 20.5% in the prior-year quarter.
During the first quarter, Comcast repurchased 35.1 million worth of common shares for $2billion and paid dividends of $572 million. The company which had initially raised its stock repurchase authorization to $10 billion last quarter, now earmarked $6.75 billion for 2015, higher than $4.25 billion it had previously set aside for the year.
In the first quarter of 2015, Comcast generated $5,956 million of cash from operations compared with $5,538 million in the year-ago quarter. Free cash flow stood at $3,183 million as against $2,824 million in the prior-year quarter. Cash and marketable securities, at quarter end, were $4,095 million against $4,512 million at the end of 2014. Total debt at first-quarter end was $47,133 million as against $48,234 million at the end of 2014. The debt-to-capitalization ratio stood at 0.45, flat sequentially.
Cable Communications Segment
Quarterly total revenue of $11,430 million reflected a 6.3% year-over-year rise. Operating cash flow was $4,674 million, up 6.2% year over year. Within this segment, Video revenues were $5,331 million, up 3% from the prior-year quarter. High-Speed Internet revenues totaled $3,044 million, up 10.7% year over year. Voice revenues were $906 million, down 1.5% year over year.
Advertising revenues totaled $504 million, down 0.7% from the year-ago quarter. Business Services revenues were $1,114 million, up 21.4% year over year. Other revenues were $531 million, up 9.4% from the prior-year quarter.
As of Mar 31, 2015, Comcast had 21.369 million (up 6.2% year over year) High-Speed Internet customers; 11.27 million (up 3.7% year over year) Voice customers; and 22.375 million (down 1% year over year) Video customers. The company added a net of 407,000 High-Speed Internet customers compared with 383,000 in the year-ago quarter. Similarly, Comcast gained 77,000 Voice customers as against 142,000 in the prior-year quarter.
However, it lost 8,000 video subscribers compared with a gain of 24,000 in the year-ago quarter. In the reported quarter, Comcast gained 69,000 triple-play subscribers and 140,000 double-play subscribers but lost 10,000 single-play subscribers.
NBC Universal Segment
Quarterly total revenue of $6,604 million reflected a 4% year-over-year decrease. Operating cash flow was $898 million, indicating a 0.3% year-over-year increase. Within this segment, Cable Networks revenues were $2,359 million, down 5.9% year over year. Broadcast TV revenues came in at $2,248 million, down 14.2% year over year.
Filmed Entertainment revenues were $1,446 million, highlighting a rise of 7% from the year-ago quarter. Theme Parks revenues were $651 million, up 33.7% year over year. After acquiring a 100% stake in NBC Universal from General Electric Co. GE, Comcast is trying all means to revamp the media company in order to gain a competitive edge.
Latest Development
On Apr 24, 2015, Comcast announced its decision to opt out of its proposed takeover of Time Warner Cable Inc. TWC. The 14-month old $45.2 billion mega merger deal was terminated owing to strong reservations expressed by the regulator Federal Communications Commission and the Department of Justice against it.
Following this, another potential deal for cable TV customer swap between Comcast and Charter Communications Inc. CHTR has also been cancelled as it was contingent upon the successful completion of the Comcast-Time Warner Cable deal.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment