NBCUniversal Reports Higher Q4, Full-Year Profits

PHILADELPHIA: Revenue for NBCUniversal increased 2.3 percent to $6.6 billion in the fourth quarter of 2014, thanks in part to healthy gains from broadcast television.

In Q4, revenue growth in theme parks and broadcast television was partially offset by lower filmed entertainment revenue driven by a year-over-year decline in home entertainment revenue. Operating cash flow increased 6.6 percent to $1.4 billion compared to $1.3 billion in the fourth quarter of 2013, again driven by strong results at theme parks and broadcast television. For the full year ended December 31, 2014, NBCUniversal revenue increased 7.5 percent to $25.4 billion. Excluding $1.1 billion of revenue generated by the Sochi Olympics in the first quarter of 2014, revenue increased 2.9 percent. Operating cash flow increased 18.1 percent to $5.6 billion.

For the fourth quarter of 2014, revenue from the cable networks segment was stable at $2.3 billion and operating cash flow decreased 1.8 percent to $912 million. These results reflect a 5.6 percent decline in advertising revenue along with a slight increase in operating costs driven by investment in programming, which more than offset a 4.6 percent increase in distribution revenue. For the full year, revenue from the cable networks segment increased 3.9 percent to $9.6 billion.

Revenue from the broadcast television segment increased 4.8 percent to $2.3 billion for the fourth quarter, driven by a 3.1 percent increase in advertising revenue, as well as higher retransmission consent fees. Operating cash flow increased 64 percent to $230 million, with higher revenue, which more than offset a slight increase in operating costs and expenses. Revenue from the segment for the full year increased 20 percent to $8.5 billion compared to $7.1 billion in 2013.

Overall at Comcast Corporation, consolidated revenue for the fourth quarter increased 4.8 percent to $17.7 billion. Consolidated operating cash flow increased 4.1 percent to $5.9 billion. Excluding $99 million of Time Warner Cable and Charter transaction-related costs in the fourth quarter of 2014, consolidated operating cash flow increased 5.9 percent. Consolidated operating income gained 3.8 percent to $3.8 billion. For the year, consolidated revenue increased 6.4 percent to $68.8 billion. Consolidated operating income increased 9.9 percent to $14.9 billion.

Brian L. Roberts, the chairman and CEO of Comcast Corporation, said, “2014 was a great year financially, operationally, and strategically for Comcast NBCUniversal. We continued to execute incredibly well as we accelerated our innovation, launched new products, and brought amazing films, shows and theme park attractions to consumers. Cable’s results, driven by High-Speed Internet and Business Services, demonstrate our focus on driving profitable growth and technology innovations, including our transformative X1 platform. This is bearing fruit in our operating performance, as we added 358,000 customer relationships, while video subscriber trends were the best in 7 years and in broadband we added over 1 million subscribers for the ninth year in a row. NBCUniversal also had a standout performance in 2014, with 18 percent growth in operating cash flow, driven by a successful Sochi Olympics, continued momentum at NBC Broadcast, the successful opening of The Wizarding World of Harry Potter – Diagon Alley in Orlando, and strong box office performance from Universal Pictures. We enter 2015 with great momentum and significant opportunities ahead, and we look forward to receiving regulatory approval for the Time Warner Cable merger. Underscoring our confidence in the continued success of our company, we are increasing our dividend to $1.00 per share on an annualized basis, marking the seventh consecutive annual increase, and plan to repurchase at least $4.25 billion of our stock this year.”