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Comcast CEO Brian L. Roberts looks confident Third Quarter 2008 Results
By Amarendra Bhushan for CEOWORLD Magazine Updated:October 30, 2008
Get CEOWORLD Magazine digital monthly version. special- Top Capital Cities for a business Traveler, # Interview with Minister of Tourism of Greece. 1 Issues Subscription= $1 Only, 10 Issues Subscription= $5 Only. Grab your copy now!!!!Comcast Corporation (NASDAQ: CMCSA, CMCSK) today reported results for the quarter ended September 30, 2008. Brian L. Roberts, Chairman and CEO of Comcast Corporation, said, “We delivered solid results in the third quarter, demonstrating the underlying strength of our subscription businesses and our ability to operate well in a challenging economic and competitive environment. Importantly, our financial position has never been stronger, reflecting disciplined and prudent balance sheet management and strong free cash flow growth. The success of our financial strategy enables us to grow the business, compete effectively and invest in our products and services. We will continue to apply this balanced approach to the business, as we remain focused on improving the customer experience and extending our long-term competitive advantage in order to build shareholder value.”
But Advertising revenue decreased 10% to $374 million in the third quarter of 2008 from $417 million in 2007. A nice article by Betsy Schiffman at Wired Cockroaches and Comcast Will Inherit the Earth says There wasn’t much evidence of a global financial crisis or an economic downturn in Comcast’s third-quarter results. The company posted earnings of $771 million, or 26 cents per share, 4 cents per share ahead of Wall Street’s forecast for 22 cents per share. Comcast’s profit shot up 38 percent from $560 million, or 18 cents per share, last year. If consumer spending has stalled, Comcast isn’t feeling the effects yet.
Revenue increased 10% in the third quarter of 2008 to $8.5 billion, while Operating Cash Flow (as defined in Table 7) increased 10% to $3.2 billion and Operating Income increased 20% to $1.7 billion. This growth was due to solid operating results at Comcast Cable and in the Programming segment, as well as the positive impact of cable acquisitions. For the nine months ended September 30, 2008, revenue increased 11% to $25.5 billion, Operating Cash Flow increased 12% to $9.8 billion, and Operating Income increased 21% to $5.0 billion, all compared to the same time period in 2007.
On a pro forma basis(2), Consolidated Revenue increased 7% to $8.5 billion in the third quarter of 2008, while Consolidated Operating Cash Flow increased 8% to $3.2 billion. Operating Cash Flow margin was 37.9%, a slight increase from the 37.7% reported in the third quarter of 2007. For the nine months ended September 30, 2008, pro forma Consolidated Revenue increased 8% to $25.5 billion and pro forma Consolidated Operating Cash Flow increased 9% to $9.8 billion. Operating Cash Flow margin was 38.3%, a slight increase from the 38.1% reported in the first nine months of 2007.
Net Income in the third quarter of 2008 was $771 million, or $0.26 per share compared to $560 million or $0.18 per share in the prior year. Net income in the third quarter of 2008 included favorable income tax adjustments. Excluding these adjustments and as reconciled in Table 7-B, Adjusted Earnings per Share increased 33% to $0.24. Net income for the nine months ended September 30, 2008, increased 8% from last year to $2.1 billion. Net income in the first nine months of 2008 and 2007 also included gains from the dissolution of cable partnerships. Excluding these gains in both periods and the income tax adjustments in the third quarter of 2008, Adjusted Earnings per Share for the nine months ended September 30, 2008 increased 19% to $0.64 compared to $0.54 in the first nine months of 2007.
Net Cash Provided by Operating Activities increased 53% to $2.4 billion in the third quarter of 2008 and increased 34% to $7.4 billion for the nine months ended September 30, 2008, due primarily to solid operating results in all segments, as well as a positive impact from the Economic Stimulus package.
Free Cash Flow (as defined in Table 7) totaled $928 million in the third quarter of 2008 as compared to $524 million in 2007, a 77% increase. Free Cash Flow for the nine months ended September 30, 2008 increased 109% to $2.8 billion. The definition of Free Cash Flow remains unchanged and excludes any impact from the Economic Stimulus package (see Table 4). The increase in Free Cash Flow was due primarily to growth in consolidated Operating Cash Flow and lower capital expenditures. During the third quarter of 2008, consolidated capital expenditures decreased 14% from the prior year to $1.3 billion, or 15.3% of total revenue, reflecting lower spending for residential services at Comcast Cable.
Advertising
Advertising revenue decreased 10% to $374 million in the third quarter of 2008 from $417 million in 2007, reflecting one less week in the broadcast advertising calendar as well as continued softness in the advertising marketplace, only partially offset by an increase in political advertising. Year to date through September 30, 2008, ad sales decreased 3% to $1.1 billion.
Brian L. Roberts
Chairman and Chief Executive Officer
Comcast Corporation
Brian L. Roberts is Chairman and CEO of Comcast Corporation, the nation’s leading provider of cable, entertainment and communications products and services. Under his leadership, Comcast has grown into a Fortune 100 company with $30.9 billion in revenues, 24.6 million customers and 100,000 employees. Comcast’s content networks and investments include E! Entertainment Television, Style Network, The Golf Channel, VERSUS, G4, PBS KIDS Sprout, TV One, and ten Comcast SportsNet networks. The Company also has a majority ownership in Comcast-Spectator, whose major holdings include the Philadelphia Flyers NHL hockey team, the Philadelphia 76ers NBA basketball team and two large multipurpose arenas in Philadelphia.
Mr. Roberts is a member of the Board of Directors of the National Cable & Telecommunications Association (NCTA) where he served as chairman for two consecutive terms from 2005-2007. He also served as NCTA’s chairman from 1995-1996 when the landmark deregulatory 1996 Telecommunications Act became law. Mr. Roberts is serving his third term as Chairman of CableLabs, the research and development consortium for the cable industry. He previously served as their chair from 2003-2005 and 1999-2001.
Mr. Roberts has won numerous business and industry honors for his leadership. In January of 2008, Institutional Investor magazine named him as one of America’s top CEOs for the fifth year in a row. Also in 2008, he was recognized by Big Brothers and Big Sisters for his outstanding leadership in the community and for serving as a role model to youth. In May 2007, he was presented with the cable industry’s highest honor, the Distinguished Vanguard Award for Leadership. In October of 2006, he was inducted into the Cable Television Hall of Fame. In 2005, he was honored by the National Association for Multi-ethnicity in Communications (NAMIC) for his commitment to diversity in the cable industry, and by the Partnership for a Drug-Free America for Comcast’s unprecedented commitment of resources to champion the PDFA’s drug-free message. He also was the recipient of the 2004 Humanitarian Award from the Simon Wiesenthal Center. In 2003, Mr. Roberts was awarded the Steven J. Ross Humanitarian Award by the UJA Federation of New York. In 2002, he was honored by The Police Athletic League of Philadelphia for his commitment to youth programs and community partnerships.
Mr. Roberts co-chaired the 2003 Resource Development Campaign for the United Way of Southeastern Pennsylvania and was a founding co-chair of Philadelphia 2000, the nonpartisan host committee for the 2000 Republican National Convention. An All-American in squash, he earned a gold medal with the U.S. squash team in 2005 and silver medals at the 1981, 1985 and 1997 Maccabiah Games in Israel.
Mr. Roberts, 49, received his BS from the Wharton School of Finance of the University of Pennsylvania. He and his wife, Aileen, live in Philadelphia with their three children.
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carol mcloughlin
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