NBCU Revenue Down Without Benefit of Olympics

PHILADELPHIA: Revenue for NBCUniversal decreased 14.2 percent to $5.9 billion in Q3, hurt by a tough comparison to the prior year's quarter, which included $1.2 billion in revenue generated by the Olympics.

Excluding the Olympics, revenue increased 3.9 percent. Operating cash flow increased 9.6 percent to $1.3 billion, compared to $1.1 billion in the third quarter of 2012. Excluding the $120 million of operating cash flow generated by the Olympics in Q3 2012, operating cash flow increased 22.4 percent; there was improved operating performance in all segments.

The cable networks saw revenue increase 4 percent to $2.2 billion, reflecting a 5.4-percent increase in distribution revenue and a 4.6-percent increase in advertising revenue, partially offset by a decline of 6.5 percent in content licensing and other revenues. Operating cash flow was up in the cable networks segment by 5.4 percent to $853 million, thanks to higher revenue, which was partially offset by higher programming and production costs from continued investment in originals and higher costs for sports rights.

Revenue from the broadcast television segment took a hit in the quarter, down 41.1 percent to $1.6 billion. Again, this was largely due to the impact of the Olympics in the third quarter of 2012. Excluding the Olympics, revenue increased 2.6 percent, due to higher retransmission consent fees and a 2.6-percent gain in ad revenue. Operating cash flow was down 61.1 percent to $34 million with the Olympics, but excluding the event would have increased $66 million on higher revenue and nearly flat operating costs and expenses.

Filmed entertainment was strong, up 3.3 percent to $1.4 billion, thanks to a solid box-office performance from Despicable Me 2. This was partially offset by a dip in home-entertainment revenues. Operating cash flow increased to $189 million compared to the $72 million in the year-ago period. Theme parks also saw a segment increase, of 7.9 percent to $661 million. Operating cash flow in this segment was up 8.6 percent to $343 million.

For the quarter ended September 30, Comcast saw its revenue decrease 2.4 percent to $16.2 billion—excluding the $1.2 billion of revenue from the Olympics, revenue increased 5.2 percent. Operating cash flow increased 6.4 percent to $5.3 billion. Without the $120 million in operating cash flow generated by the Olympics in Q3 2012 and the $74 million in costs in the third quarter from the termination of a pension plan, operating cash flow increased 10.5 percent. Operating income was up 12 percent to $3.4 billion.

Brian L. Roberts, the chairman and CEO of Comcast Corporation, said, “Our businesses generated strong revenue and cash flow growth and record free cash flow for the third quarter. Cable’s results highlight the underlying strength of our residential and business services. We are driving innovation, expanding our service offerings, and bringing new and rich content to more platforms than ever before. NBCUniversal delivered solid performance in every one of its segments, with healthy growth in revenue and double-digit cash flow growth, adjusting for the results of the Olympics last year. Comcast NBCUniversal has real momentum and many opportunities ahead.”