Comcast Posts Solid Growth

Comcast Corporation (CMCSA) reported second quarter 2009 financial results significantly above Zacks Consensus Estimates. Total revenue of more than $8.9 billion was an improvement of 4.5% compared to the same quarter of the previous year and also above the Zacks Consensus Estimates of $8.6 billion. This was primarily due to the solid growth of all the three business segments of the company.

On a GAAP basis, net income in the second quarter of 2009 was $967 million, an improvement of 53% year-over-year. EPS during the reported quarter was 33 cents compared to 21 cents in the prior-year quarter. This is also above Zacks consensus estimates of 26 cents. Effective expense control and working capital management were the main reasons for this solid performance.

Gross margin in the second quarter 2009 was 60.3% compared to 61% in the year-ago quarter. The operating margin was 39.6% in the second quarter 2009 compared to 39.2% in the prior year quarter. This was the result of lower Selling, General & Administrative expenses during the reported quarter. For the second quarter 2009, Comcast declared the dividend of $0.07 per common share compared to $0.06 in the second quarter of 2008.

Cash and marketable securities, at the end of the second quarter 2009 was $4.05 billion compared to $1.3 billion at the end of the prior-year quarter. Total debt, at the end of the same quarter was $33 billion compared to $32.5 billion.

During the same quarter, the company repurchased 15.5 million common shares for a consideration of $215 million. Excluding the impact of Economic Stimulus Packages, free cash flow during the second quarter 2009 was $1.2 billion, remains flat compared the prior-year quarter.

Cable Segment

Revenue from Cable was $8.5 billion in the second quarter 2009, up 4.6% year-over-year. Operating cash flow from this segment was $3.5 billion, up 4.1% year-over-year. At the end of the reported quarter, Comcast had 15.322 million (up 6.7% year-over-year) High-Speed Internet customers; 7.004 million (up 23.9% year-over-year) Voice customers; 23.891 million (down 2.9% year-over-year) Video customers; and 17.542 million (up 7.4% year-over-year) Digital Video customers.

Programming Segment

Revenue from Programming was $384 million in the second quarter 2009, up 5.1% year-over-year. Operating cash flow from this segment was $113 million, up 28.3% year-over-year.

Corporate & Other Segment

Revenue from Corporate & Other was $78 million in the second quarter 2009, down 11.9% year-over-year. Operating cash flow from this segment was a loss of $79 million in the same quarter compared to a loss of $100 million in the year-ago quarter.

Subscribe by RSS Subscribe by Email