Comcast (CMCSA, Financial) is off to a great start in 2015 with 7.6% operating cash flow growth and record quarterly free cash flow. The cable business had a strong quarter, which has shown decent results in high-speed internet and business services. The company has made progress in transforming the customer experience and simultaneously delivering improved products and innovations faster than ever before.
Comcast business NBC Universal had another excellent quarter, which led by Super Bowl, which was the most-watched television program of all time, along with the tremendous box office success of Fifty Shades of Grey and the exceptional performance of The Wizarding World of Harry Potter and Diagon Alley in Orlando. The company begins 2015 with great momentum and remains confident that it is well positioned with an impressive portfolio of complementary businesses to continue with strong performance and which would drive shareholder value.
Moreover, Comcast consolidated revenue for the first quarter of 2015 increased by 2.6% to $17.9 billion, which is excluding $376 million of revenue generated by the NFL’s Super Bowl in the first quarter of 2015 as well as $1.1 billion of revenue generated by the Sochi Olympics in the first quarter of 2015, the consolidated revenue increased 7.2%.
Furthermore, revenue for Cable Communications increased by 6.3% to $11.4 billion in the first quarter of 2015 when compared with the $10.8 billion reported in the first quarter of 2014. This is mainly due to an increase of 10.7% in high-speed internet and 21.4% in business services. The increase in cable revenue reflects increased customer relationships with the company. While some customers receive higher levels of service, other customers were enjoying additional services as well as rate adjustments, which also help to drive company growth.
Furthermore, revenue for NBC Universal decreased by 4% to $6.6 billion in the first quarter of 2015 compared with $6.9 billion in the first quarter of 2014. The amount is excluding $376 million of revenue generated by the broadcast of the NFL’s Super Bowl in the first quarter of 2015 and $1.1 billion of revenue generated by the Sochi Olympics in the first quarter of 2014 thus producing a revenue increase of 7.9%.
Earnings per share (EPS) for the first quarter of 2015 were $0.81 compared to $0.71 reported in the first quarter of 2014. Whereas, excluding gains on the sale of a business and transaction-related costs in the first quarter of 2015 as well as gains on the sale of an investment and a favorable resolution of a prior acquisition contingency in the first quarter of 2014, EPS increased by 16.2% to $0.79 per share.
The consolidated operating cash flow increased by 7.6% to $6 billion while producing an exclusion of $99 million of Time Warner Cable (TWC, Financial) and charter transaction-related costs in the first quarter of 2015. In the first quarter of 2014, it was $17 million whereas consolidated operating cash flow increased 9% to $3.9 billion.
Moreover, capital expenditures increased by 19.2% to $1.7 billion in the first quarter of 2015 compared with the first quarter of 2014. Furthermore, Cable Communications capital expenditures increased by 26.2% to $1.4 billion in the first quarter of 2015. This is a reflection of increased spending on customer premise equipment related to the deployment of the X1 platform and increased investment in support capital as the company expand its cloud-based initiatives as well as the company’s ongoing investment in network infrastructure to increase network capacity.
Cable capital expenditures consist of 12.6% of Cable revenue in the first quarter of 2015 compared with 10.6% reported last year in the first quarter. NBC Universal capital expenditures decreased by 8% to $268 million in the first quarter of 2015 mainly reflecting decreased investments in facilities which is partially offset by increased spending at the company’s Theme Parks.
Will Comcast make its mark in a bigger way? Only time will tell how far the company will get seeing that management is trying everything in its power to negotiate getting over every hurdle that shows up. The focus is on making more profit and hence there is now a drive to find new avenues that can attract more customers to the company.
