Cable services provider Comcast Corp. (CMCSA, CMCSK) on Wednesday posted a fourth-quarter profit that more than doubled, bolstered by higher revenues and tax benefits.
The Philadelphia, Pennsylvania-based company's fourth-quarter net income attributable to Comcast was $955 million, a jump from $412 million reported a year ago. On a per share basis, earnings climbed 136% to $0.33 from $0.14 in the same quarter of last year, reflecting growth in consolidated operating cash flow, lower interest expense from a reduction in total debt and lower tax rate.
The fourth quarter of 2009 results encompassed income tax benefits of $130 million or $0.04 per share. The prior-year results included a $600 million pretax impairment charge for Clearwire investment and the recognition of income tax benefits of $74 million or $0.02 per share.
Excluding theses items, 2009 fourth quarter earnings per share rose 16% over last year. On average, 25 analysts polled by Thomson Reuters expected the company to post earnings of $0.27 per share. Analysts' estimates typically exclude special items.
Revenues for the latest quarter advanced 2.9% to $9.07 billion from the prior-year's revenue of $8.81 billion, reflecting continued growth at Cable, partially offset by higher expenses at Programming and Corporate and Other. Nineteen Wall Street analysts had a consensus revenue estimate of $8.96 billion for the quarter.
Brian Roberts, chairman and chief executive officer of Comcast, said "I am pleased to report healthy operating and financial results for 2009. We are particularly proud of our accomplishments this year in light of a difficult economic environment affecting the consumer and our advertising business, as well as intensified competition."
The company further noted that the results highlight the strength and resilience of its businesses, as well as effective execution, with a focus on profitable growth, expense control and prudent capital management. Referring to 2009, Roberts added that "we continued to invest in our products and services and in growth opportunities like Comcast Business Services."
Operating expenses for the fourth-quarter of 2009 increased to $3.68 billion from $3.48 billion a year earlier, and selling, general and administrative expenses rose to $1.98 billion from $1.96 billion in the same quarter of last year.
During the most recent quarter, operating income totaled $1.82 billion, up 3.4% from $1.76 billion reported in the comparable quarter of the previous year. Operating Cash Flow improved 1.1% to $3.41 billion from $3.37 billion reported in the year-earlier period.
The company's Cable segment revenues grew 2.6% to $8.56 billion from $8.34 billion last year, led by higher HSI, CDV and Comcast Business Services revenue, partially offset by lower advertising revenue as well as lower video revenue due to video customer losses and more moderate rate increases compared to the fourth quarter of 2008.
Programming segment revenues totaled $368 million, an increase of 5.2%, compared to $350 million in the same quarter of last year, reflecting higher advertising and affiliate revenue.
Corporate & Other revenues increased 14.3% to $138 million from $119 million reported in the corresponding period of the previous year, driven by strong results at CIM and Comcast-Spectacor, partially offset by an increase in corporate eliminations.
As of December 31, 2009, Comcast's video, high-speed Internet and voice customers totaled 47.1 million, reflecting 1.5 million net additions during 2009. Of this, voice customers increased 17.8% from last year to 7.62 million and high-speed Internet customers increased 6.7% to 15.93 million. Video customers, however, declined 2.6% to 23.56 million. Digital video customers increased 4.7% to 65.5 million.
The company added 243 thousand voice customers and 247 thousand high-speed Internet customers during the latest quarter, while video subscribers declined by 199 thousand. The company added 701 thousand revenue generating units in the latest quarter.
For the full year 2009, the company reported net income attributable to Comcast of $3.64 billion or $1.26 per share, compared to $2.55 billion or $0.86 per share in 2008. Analysts expected earnings of $1.18 per share for the full year.
Annual revenues for fiscal 2009 improved 3.9% to $35.8 billion from $34.4 billion reported in the fiscal year ended 2008. Twenty-one Wall Street analysts had a consensus revenue estimate of $35.54 billion for fiscal 2009.
In 2009, Comcast repurchased 49.8 million of its common shares for $765 million, reducing the number of total shares outstanding by 1.7%. As of December 31, 2009, the company had about $3.3 billion of availability remaining under its share repurchase authorization. Further, Comcast said it has planned to complete its current share repurchase program by the end of 2012, subject to market conditions.
In addition, Roberts stated, "As we begin 2010, Comcast is well positioned to continue to execute and deliver growth with a continued focus on building value for our shareholders."
Among others in the sector, Time Warner Cable Inc. (TWC) posted a fourth-quarter profit of $322 million or $0.91 per share, compared to a loss of $8.16 billion or $25.07 per share last year. Total revenues grew 3% to $4.53 billion from $4.40 billion reported in the prior-year quarter.
CMCSA closed Tuesday's trading session at $16.29. In the pre-market session, the stock is currently trading at $16.35, up $0.06 or 0.37%. CMCSK closed Tuesday's session at $15.55. In the pre-market session, the stock is currently up 1 cent or 0.06%, trading at $15.56.
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