NBCU Q1 Revenue Grows with Cable Gains

PHILADELPHIA: Revenue at NBCUniversal increased 3.9 percent to $6.9 billion in the first quarter of 2016, with its cable networks and theme parks businesses offsetting declines at filmed entertainment and broadcast TV.

Operating cash flow for the quarter increased 10 percent to $1.6 billion, primarily due to the acquisition of Universal Studios Japan in November 2015.

Cable networks revenue gained 4 percent to $2.5 billion, with higher distribution revenue as well as consistent advertising revenue. Distribution revenue increased 5.9 percent, driven by contractual rate increases and contract renewals, partially offset by a decline in subscribers at its cable networks. Ad revenue was flat in a quarterly comparison, 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 percent to $956 million, with higher revenue and a slight increase in programming and production costs.

Broadcast television revenue was down 7.3 percent, facing a tough comparison against the year-ago boost from the 2015 Super Bowl. Excluding $376 million of revenue generated by the Super Bowl in Q1 2015, revenue increased 11.4 percent, reflecting higher advertising and distribution and other revenue. Excluding the revenue from the Super Bowl last year, advertising revenue increased 9.6 percent, reflecting higher rates and one additional NFL game compared to last year’s first quarter, partially offset by lower ratings. Distribution and other revenue increased 43.1 percent, thanks in part to higher retransmission consent fees. Operating cash flow increased 56.5 percent to $284 million, with lower programming and production costs compared to last year’s first quarter.

Filmed entertainment revenue declined 4.3 percent in the first quarter, with lower theatrical and home entertainment revenue partially offset by higher content licensing and other revenue. Theme parks revenue increased 57.5 percent to $1 billion and operating cash flow increased 53.6 percent to $375 million.

Overall at parent company Comcast, consolidated revenue for the first quarter was up 5.3 percent to $18.8 billion. Excluding the revenue from 2015’s Super Bowl, consolidated revenue increased 7.5 percent. Consolidated operating cash flow increased 6.9 percent 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 percent. Consolidated operating income increased 5.1 percent to $4.1 billion.

Brian L. Roberts, the chairman and CEO of Comcast Corporation, 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.”