[April 22, 2014]

Comcast Reports 1st Quarter 2014 Results

Comcast Corporation (NASDAQ: CMCSA, CMCSK) today reported results for the quarter ended March 31, 2014.

Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, "Our operating momentum is continuing as we enter 2014 and is highlighted by our second consecutive quarter of video customer growth, as well as strength in high-speed Internet and business services. Our focus on the customer experience continues to drive our success as we deliver the most innovative products in the industry and make measurable progress in customer service. At NBCUniversal, we had another superb quarter with double-digit revenue and operating cash flow growth driven by the tremendously successful Sochi Olympics and the best season-to-date broadcast ratings in a decade. Overall, the company is performing well and the more planning we do for our proposed merger with Time Warner Cable, the more excited we are by the opportunities for the combined company. Comcast has tremendous momentum right now, and we believe the TWC transaction will strengthen a truly world-class organization that will be well positioned to compete and yield meaningful benefits to our customers, employees, and shareholders."

For additional detail on segment revenue and expenses, customer metrics, capital expenditures, and free cash flow, please refer to the trending schedules on Comcast's Investor Relations website at www.cmcsa.com or www.cmcsk.com.

Consolidated Revenue for the first quarter of 2014 increased 13.7% to $17.4 billion. Excluding $1.1 billion of revenue generated by the 2014 Sochi Olympics, consolidated revenue increased 6.5%. Consolidated Operating Cash Flow increased 10.0% to $5.5 billion. Excluding $17 million of costs related to the Time Warner Cable transaction in the first quarter of 2014, consolidated operating cash flow increased 10.4% (See Table 5). Consolidated Operating Income increased 16.3% to $3.6 billion.

Earnings per Share (EPS) for the first quarter of 2014 was $0.71, a 31.5% increase from the $0.54 reported in the first quarter of 2013. Excluding gains on the sale of an investment and a favorable resolution of a prior acquisition contingency in the first quarter of 2014, as well as a gain on the sale of wireless spectrum licenses in the first quarter of 2013, EPS increased 33.3% to $0.68 (see Table 4).

Capital Expenditures increased 6.4% to $1.4 billion in the first quarter of 2014 compared to the first quarter of 2013. Cable Communications' capital expenditures increased $51 million, or 4.6%, to $1.1 billion in the first quarter of 2014, primarily reflecting increased spending on customer premise equipment related to the deployment of the X1 platform and wireless gateways. Cable capital expenditures represented 10.6% of Cable revenue in the first quarter of 2014 compared to 10.7% in last year's first quarter. NBCUniversal's capital expenditures increased $28 million to $291 million in the first quarter of 2014, primarily reflecting increased investments in Theme Parks and facilities.

Free Cash Flow decreased 10.0% to $2.8 billion in the first quarter of 2014 compared to $3.1 billion in the first quarter of 2013, reflecting increased working capital, mainly driven by the Olympics and higher film and TV production spend, capital expenditures and cash taxes on operating items, partially offset by growth in consolidated operating cash flow.

Dividends and Share Repurchases. During the first quarter of 2014, Comcast paid dividends totaling $508 million and repurchased 15.0 million of its common shares for $750 million. As of March 31, 2014, Comcast had approximately $6.75 billion available under its share repurchase authorization.

Revenue for Cable Communications increased 5.3% to $10.8 billion in the first quarter of 2014 compared to $10.2 billion in the first quarter of 2013, driven by increases of 9.0% in high-speed Internet and 23.9% in business services. The increase in Cable revenue reflects rate adjustments, customers receiving higher levels of services and customer growth (see below).

Customer relationships increased by 124,000 to 26.8 million in the first quarter of 2014. At the end of the first quarter, penetration of our triple product customers increased to 36% compared to 33% in the first quarter of 2013. In addition, video, high-speed Internet and voice customers increased.

Operating Cash Flow for Cable Communications increased 4.3% to $4.4 billion in the first quarter of 2014 compared to $4.2 billion in the first quarter of 2013, reflecting higher revenue, partially offset by a 6.0% increase in operating expenses primarily related to higher video programming costs. This quarter's operating cash flow margin was 40.9%, compared to 41.3% in the prior year period.

Revenue for NBCUniversal increased 28.8% to $6.9 billion in the first quarter of 2014 compared to $5.3 billion in the first quarter of 2013, primarily driven by 2014 Sochi Olympics revenue of $1.1 billion included in the Broadcast Television and Cable Networks segments. Excluding the Olympics, NBCUniversal revenue increased 8.1% (see Table 5). Operating Cash Flow increased 37.6% to $1.3 billion compared to $953 million in the first quarter of 2013, driven by a profitable Olympics and strong results at Filmed Entertainment and Broadcast Television.

Cable Networks

For the first quarter of 2014, revenue from the Cable Networks segment increased 12.6% to $2.5 billion compared to $2.2 billion in the first quarter of 2013 and included $257 million of revenue generated by the 2014 Sochi Olympics. Excluding the Olympics, revenue increased 1.0% reflecting a 4.4% increase in distribution revenue, partially offset by a 1.4% decrease in advertising revenue (See Table 5). Operating cash flow increased 4.2% to $895 million compared to $859 million in the first quarter of 2013, reflecting higher revenue, partially offset by higher sports programming costs, including the impact of the Olympics, and our continued investment in original programming.

Broadcast Television

For the first quarter of 2014, revenue from the Broadcast Television segment increased 72.8% to $2.6 billion compared to $1.5 billion in the first quarter of 2013 and included $846 million of revenue generated by the 2014 Sochi Olympics. Excluding the Olympics, revenue increased 17.0%, driven by a 15.8% increase in advertising revenue due to strong ratings at the NBC broadcast network, as well as an increase in content licensing revenue and higher retransmission consent fees (see Table 5). Operating cash flow increased $157 million to $122 million compared to a loss of $35 million in the first quarter of 2013, reflecting higher revenue, partially offset by higher programming and production costs related to the Olympics.

Filmed Entertainment

For the first quarter of 2014, revenue from the Filmed Entertainment segment increased 11.1% to $1.4 billion compared to $1.2 billion the first quarter of 2013, driven by higher theatrical revenue from the strong performances of Ride Along and Lone Survivor and the international performance of The Wolf of Wall Street. Operating cash flow increased $219 million to $288 million compared to $69 million in the first quarter of 2013, reflecting higher revenue and a decrease in the amortization of film costs.

Theme Parks

For the first quarter of 2014, revenue from the Theme Parks segment increased 5.4% to $487 million compared to $462 million in the first quarter of 2013, driven by higher per capita spending at the Orlando and Hollywood theme parks and stable guest attendance, despite a shift in holiday timing. First quarter operating cash flow decreased 1.5% to $170 million compared to $173 million in same period last year, primarily reflecting increased operating costs to support new attractions.

Headquarters, Other and Eliminations

NBCUniversal Headquarters, Other and Eliminations include overhead and eliminations among the NBCUniversal businesses. For the quarter ended March 31, 2014, NBCUniversal Headquarters, Other and Eliminations operating cash flow loss was $164 million compared to a loss of $113 million in the first quarter of 2013, reflecting higher employee costs.

Corporate, Other and Eliminations

Corporate, Other and Eliminations primarily include corporate operations, Comcast-Spectacor and eliminations among Comcast's businesses. For the quarter ended March 31, 2014, Corporate, Other and Eliminations revenue was ($225) million compared to ($247) million in 2013. The operating cash flow loss was $173 million, including $17 million of costs related to the Time Warner Cable transaction, compared to a loss of $138 million in the first quarter of 2013.

Conference Call and Other Information

Comcast Corporation will host a conference call with the financial community today, April 22, 2014 at 8:30 a.m. Eastern Time (ET). The conference call and related materials will be broadcast live and posted on its Investor Relations website at www.cmcsa.com or www.cmcsk.com. Those parties interested in participating via telephone should dial (800) 263-8495 with the conference ID number 10792182. A replay of the call will be available starting at 12:30 p.m. ET on April 22, 2014, on the Investor Relations website or by telephone. To access the telephone replay, which will be available until Tuesday, April 29, 2014 at midnight ET, please dial (855) 859-2056 and enter the conference ID number 10792182.

From time to time, we post information that may be of interest to investors on our website at www.cmcsa.com or www.cmcsk.com and on our corporate blog, www.corporate.comcast.com/comcast-voices. To automatically receive Comcast financial news by email, please visit www.cmcsa.com or www.cmcsk.com and subscribe to email alerts.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements. Readers are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual events or our actual results to differ materially from those expressed in any such forward-looking statements. Readers are directed to Comcast's periodic and other reports filed with the Securities and Exchange Commission (SEC) for a description of such risks and uncertainties. We undertake no obligation to update any forward-looking statements.

Non-GAAP Financial Measures

In this discussion, we sometimes refer to financial measures that are not presented according to generally accepted accounting principles in the U.S. (GAAP). Certain of these measures are considered "non-GAAP financial measures" under the SEC regulations; those rules require the supplemental explanations and reconciliations that are in Comcast's Form 8-K (Quarterly Earnings Release) furnished to the SEC.

About Comcast Corporation

Comcast Corporation (Nasdaq: CMCSA, CMCSK) is a global media and technology company with two primary businesses, Comcast Cable and NBCUniversal. Comcast Cable is the nation's largest video, high-speed Internet and phone provider to residential customers under the XFINITY brand and also provides these services to businesses. NBCUniversal operates 30 news, entertainment and sports cable networks, the NBC and Telemundo broadcast networks, television production operations, television station groups, Universal Pictures and Universal Parks and Resorts. Visit www.comcastcorporation.com for more information.

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