In reporting its first quarter earnings today, Comcast Corp. said that revenue from its Broadcast Television segment (network and O&Os) declined 7.3% because of windfall it received in the first quarter last year from the Super Bowl.
But if the $376 million Super Bowl take is excluded from the comparisons, the revenue for the segment increased 11.4%, reflecting higher advertising and distribution and other revenue. Explaining the increase, the company noted that the network charged more for its NFL games and aired one additional game in the first quarter of 2016.
Distribution and other revenue increased 43.1%, primarily due to higher retransmission consent fees.
Operating cash flow increased 56.5% to $284 million, reflecting lower programming and production costs compared to last year’s first quarter which included the Super Bowl.
Cable Networks revenue increased 4.0% to $2.5 billion in the first quarter of 2016, reflecting higher distribution revenue, as well as consistent advertising revenue. Distribution revenue increased 5.9%, driven by contractual rate increases and contract renewals, partially offset by a decline in subscribers at our cable networks.
Cable Networks advertising revenue was flat compared to the first quarter of 2015, due to higher rates, offset by audience ratings declines and the impact of a benefit from a reduction in deferred advertising revenue in the prior year. Operating cash flow increased 6.4% to $956 million in the first quarter of 2016, reflecting higher revenue and a modest increase in programming and production costs.
Revenue for NBCUniversal increased 3.9% to $6.9 billion in the first quarter of 2016 and operating cash flow increased 10.0% to $1.6 billion, primarily due to the acquisition of Universal Studios Japan in November 2015. Pro forma revenue for NBCUniversal decreased 0.4%. Excluding $376 million of revenue generated by the broadcast of the NFL’s Super Bowl in the first quarter of 2015, pro forma revenue increased 5.4%. Pro forma operating cash flow increased 1.8%, driven by results at Broadcast Television and Cable Networks, partially offset by Filmed Entertainment.
For Comcast as a whole, consolidated revenue for the first quarter of 2016 increased 5.3% to $18.8 billion. Excluding $376 million of revenue generated by the broadcast of the NFL’s Super Bowl in the first quarter of 2015, consolidated revenue increased 7.5%. Consolidated operating cash flow increased 6.9% to $6.4 billion. Excluding $99 million of Time Warner Cable and Charter transaction-related costs in the first quarter of 2015, consolidated operating cash flow increased 5.1%. Consolidated operating income increased 5.1% to $4.1 billion.
Brian L. Roberts, Chairman-CEO of Comcast Corp., said: “I’m incredibly pleased with our first quarter results and the strength and momentum we are seeing across our businesses. Our performance at Comcast Cable was outstanding. We delivered our best first quarter Internet results in four years and our best first quarter video results in nine years — adding 53,000 video customers.
“NBCUniversal also had a terrific quarter, reporting double-digit operating cash flow growth, fueled by strength in Broadcast, continued success at our Theme Parks, including Universal Studios Japan, and improved performance from our Cable Networks. Our teams are executing extremely well and I am excited about the opportunities ahead for Comcast NBCUniversal.”
Read the company’s report here.
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