Revenues increased 15.8% over 2Q01, to $2.709B; operating cash flow increased 25.1% from 2Q01; net income was $140.3M ($0.15 per share)

August 2, 2002

4 Min Read

PHILADELPHIA -- Comcast Corporation today reported results for the three and six months ended June 30, 2002. Brian L. Roberts, president of Comcast Corporation said, "We are reporting another quarter of outstanding operating and financial results, delivering accelerating revenue and operating cash flow growth and significant free cash flow." "We recently received shareholder approval of our merger with AT&T Broadband, and we look forward to completing this transaction in the fourth quarter. We remain as excited as ever about the opportunities for growth in the cable business and believe that our strong operating and financial track record will help support accelerated growth rates and provide a whole new range of opportunities for the new company." Cable division revenues for the quarter ended June 30, 2002 were $1.541 billion, representing a pro forma 11.9% increase from the $1.377 billion in the second quarter of 2001. Operating cash flow for the quarter was $653.2 million, a pro forma increase of 15.3% over the $566.6 million for the same period of 2001. Cable subscribers grew to 8.5 million, a pro forma twelve-month trailing growth rate of 0.9%. Pro forma video revenues increased 7.2% reflecting continuing strong demand for Comcast Digital Cable and higher pay-per-view revenues as a result of the Tyson-Lewis fight. High-speed Internet service revenue more than doubled over the second quarter of 2001 reflecting significant growth in the customer base and a rate increase. Advertising revenue increased 13.1% reflecting a stronger local advertising market as well as the ongoing success of Comcast MarketLink, our regional fiber interconnects, in attracting new regional and national advertising. Operating cash flow margins improved to 42.4% from 41.2% reflecting strength in advertising and higher margins in our high-speed Internet service as it continues to scale on our own network. The cable division added 128,400 high-speed Internet customers, a weekly average of nearly 9,900 net additions to finish the second quarter with 1.169 million high-speed Internet customers, representing a 26.8% pro forma increase over 2001 levels and a 39.0% sequential increase in net additions. During the quarter, Comcast generated $42.12 in average revenue per Comcast High-Speed Internet subscriber, a 14% increase over the same period in 2001. At quarter end, Comcast's High-Speed Internet service had a penetration rate of over 10% of marketable homes with nearly 11.6 million homes, or more than 82% of the homes in Comcast's footprint having access to this service. The Company's consolidated results include all acquisitions as of the dates of their closing. For the quarter and six months ended June 30, 2002, the Company's consolidated results include the acquisition from AT&T of 585,000 and 112,000 cable subscribers in April 2001 and June 2001, respectively, the acquisition of Home Team Sports in February 2001, the consolidation of The Golf Channel, effective in June 2001, and the acquisition of Outdoor Life Network, in October 2001. Pro forma results assume that all acquisitions were effective on January 1, 2001. For the three months ended June 30, 2002, the Company reported consolidated revenues of $2.709 billion, a 15.8% increase from the $2.339 billion reported in the second quarter of 2001. Consolidated operating cash flow increased 25.1% to $866.6 million from the $692.9 million reported in the second quarter of 2001. On a pro forma basis, the Company's consolidated revenues and operating cash flow for the quarter ended June 30, 2002 increased 11.7% and 20.4%, respectively, over the second quarter of 2001. For the three months ended June 30, 2002, the Company reported consolidated adjusted net income of $140.3 million or $0.15 per diluted share from operations, excluding non-operating items and reflecting the effect of the new accounting standard related to not amortizing goodwill and indefinite lived intangible assets. In the same quarter last year, the Company reported $99.0 million or $0.10 per share on the same basis. For the three months ended June 30, 2002 the Company reported operating cash flow per share of $0.91 up significantly from the $0.72 per share of operating cash flow reported in the prior year quarter. The Company reported a consolidated net loss of $209.6 million or $0.22 per share as compared to net income of $35.3 million or $0.04 per share in the same period of the prior year. The consolidated loss reported for the second quarter of 2002 included non-operating items primarily related to losses from investments of $0.57 per share versus gains of $0.47 per share on a pre-tax basis for similar items in the second quarter of 2001, offset by the new accounting standard described above. Please refer to the table "Reconciliation of Diluted EPS to OCF per Share" at the end of this release for further details regarding the investment related items. Comcast Corp.

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