NBCU Q1 Sees Higher Cash Flow

May 4, 2015 World Screen

PHILADELPHIA: NBCUniversal recorded higher operating cash flow in its first quarter, thanks in part to its broadcast TV segment.

Operating cash flow increased 14 percent at NBCU to $1.5 billion. Revenue, however, decreased 4 percent to $6.6 billion, compared to $6.9 billion in Q1 2014. Excluding the $376 million in revenue from the Super Bowl in the first quarter of 2015 and $1.1 billion in revenue from the Sochi Olympics in the first quarter of 2014, revenue increased 7.9 percent.

Within its cable networks segment, revenue decreased to $2.4 billion, compared to the $2.5 billion the year prior. Excluding the $257 million in revenue generated by the Olympics in Q1 2014, revenue increased 4.9 percent, with a 4.8 percent increase in distribution revenue and a 4.3 percent increase in ad revenue. Operating cash flow increased to $898 million compared to $895 million in the first quarter of 2014, reflecting lower programming and production costs due to the broadcast of the Sochi Olympics in the first quarter of 2014, partially offset by lower revenue.

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In the broadcast TV segment, revenue decreased 14.2 percent to $2.2 billion. Excluding $376 million of revenue generated by the NFL's Super Bowl in the first quarter of 2015, as well as $846 million of revenue generated by the Sochi Olympics in the first quarter of 2014, revenue increased 5.5 percent, driven by a 5.5 percent increase in advertising revenue, as well as higher retransmission consent fees. Operating cash flow increased 48.9 percent to $182 million compared to $122 million in the first quarter of 2014, reflecting lower programming and production costs due to the broadcast of the Sochi Olympics in the first quarter of 2014 and a profitable Super Bowl, partially offset by lower revenue.

Filmed entertainment revenue for the quarter was up 7 percent to $1.4 billion, with higher content licensing and home entertainment revenue partially offset by lower theatrical revenue. Theme parks revenue increased 33.7 percent to $651 million.

For all of Comcast, operating income rose 9 percent to $3.9 million and earnings per share were up 14.1 percent. Revenue rose 2.6 percent to $17.9 million.

Brian L. Roberts, the chairman and CEO of Comcast Corporation, said, "We are off to a great start in 2015, with 7.6 percent operating cash flow growth and record quarterly free cash flow. Cable had a terrific quarter, once again reflecting strong results in high-speed internet and business services. We have made progress in transforming the customer experience while delivering improved products and innovations faster than ever before. At NBCUniversal, we had another excellent quarter, led by Super Bowl XLIX, 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 – Diagon Alley in Orlando. We begin 2015 with great momentum and remain confident that we are well positioned with an impressive portfolio of complementary businesses to continue our strong performance and drive shareholder value."