NBCU Q1 Results Lifted by Olympics

PHILADELPHIA: NBCUniversal saw a 29-percent increase in revenue in the first quarter and a 38-percent gain in operating cash flow, thanks to the Sochi Olympics, which generated $1.1 billion in revenue.

Revenue for NBCU in Q1 was $6.9 billion, compared to $5.3 billion in the first quarter of 2013. Excluding the Olympics, NBCU revenue increased 8.1 percent. Cash flow reached $1.3 billion compared to the year-ago's $953 million.

Broadcast revenue was up by 73 percent to $2.6 billion and included $846 million in revenue generated by the Olympics. Without the Winter Games, revenue increased 17 percent, led by a 15.8-percent increase in ad revenue from strong ratings at NBC and higher retransmission-consent fees. Cash flow for the quarter increased to $122 million compared to a loss of $35 million in the first quarter of 2013.

NBCU's cable networks had a 4.2-percent increase in operating cash flow to $895 million. Revenues were up by 12.6 percent to $2.5 billion. Without the Olympics, revenues were up 1 percent, as distribution revenue increased (4.4 percent) and ad revenue fell (-1.4 percent). The costs for sports programming was up and there was continued investment in original programming.

Overall, Comcast reported net income of $1.87 billion, up from $1.44 billion. Revenue increased 13.7 percent to $17.4 billion.

Brian L. Roberts, the chairman and CEO 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.”