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Tag: Brian L Roberts

  • Q2-2015: Comcast reports 11% revenue growth, loses 69,000 video customers

    Q2-2015: Comcast reports 11% revenue growth, loses 69,000 video customers

    BENGALURU: Comcast Corporation (Comcast) reported 11.3 per cent growth in consolidated revenue in Q2-2015 (quarter ended 30 June, 2015) to $18,743 million as compared to the $16,844 million in the corresponding year ago quarter. 

     

    In Q1-2015, the company had reported consolidated revenue of $17,853 million. The company’s Cable Communications and NBCUniversal segments reported a y-o-y increase in revenue.

     

    Comcast consolidated operating income increased 7.9 per cent in Q2-2015 to $4105 million as compared to the $3804 million in Q2-2014 and was 5.5 per cent more than the $3890 million Q1-2015. Year to date (YTD, 6M-2015), the company’s consolidated revenue grew 6.8 per cent to $36,596 million from $34,252 in the corresponding year ago period. 

     

    Though the company’s Cable Communication segment reported a fall of 69,000 video customers in Q2-2015, video revenue grew 3.7 per cent in Q2-2015 to $5431 million from $5239 million during the corresponding year ago quarter. YTD, video revenue increased 3.3 per cent to $10,762 million as compared to $10,417 million in 6M-2014.

     

    Comcast Chairman and CEO Brian L Roberts said, “Our second quarter results, including 11.3 per cent revenue growth and eight per cent operating cash flow growth, demonstrate the strength and momentum we are seeing across our businesses. In Cable, high-speed Internet and business services continued to perform extremely well, and, significantly, this was the best second quarter video customer results we’ve had in nine years. Our focus on accelerating the deployment of our transformative X1 platform, as well as efforts to improve customer service, are clearly making a difference, with lower churn across all product categories. NBCUniversal had an exceptional quarter, led by the record-breaking box office performances of Jurassic World and Furious 7 and continued strong momentum in our theme parks. In addition, NBC won the 2014-2015 broadcast season for adults 18-49. Our teams are executing incredibly well across our strong and diversified portfolio, and I am excited for what we can deliver in the rest of 2015 and beyond.”

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

     

    Let us look at the numbers reported by Comcast

     

    Cable Communications

     

    Comcast’s Cable Communications segment has three products – video, high speed internet and voice.  Five streams add to the segment’s revenue – video, high speed internet, voice, business service and advertising.

     

    This segment’s revenue in Q2-2015 grew 6.3 per cent to $11,729 million as compared to the $11,029 million in Q1-2014. YTD also, the segment’s revenue increased 6.3 per cent to $23,159 million as compared to $21,786 million in 6M-2014. 

     

    Cable Communications customer relationships increased to 272.65 lakh in Q2-2015 as compared to 267.75 lakh in Q2-2014.

     

    Single product customer relationships declined in Q2-2015 to 83.43 lakh from 85.10 lakh in Q1-2014; double product customer relationships in Q2-2015 to 89.36 lakh from 85,74,000 in Q2-2014; triple product customer relationships increased in Q2-2015 to 99.87 lakh from 96.91 lakh in the corresponding year ago quarter.

     

    Operating Cash Flow for Cable Communications increased 5.1 per cent to $4798 million Q2-2015 compared to $4564 million in Q2-2014, reflecting higher revenue, partially offset by a 7.2 per cent increase in operating expenses primarily related to higher video programming costs, as well as an increase in technical and product support expenses driven by an acceleration in the deployment of X1 and investments to improve the customer experience. As a result, this quarter’s operating cash flow margin was 40.9 per cent compared to 41.4 per cent in the prior year period.

     

    For the six months ended 30 June, 2015, Cable operating cash flow increased 5.7 per cent to $9472 million compared to $8964 million in 6M-2014. YTD operating cash flow margin was 40.9 per cent compared to 41.1 per cent in 2014.

     

    Video 

     

    Video revenue has been mentioned above. The company lost 69,000 video customers in Q2-2015, much lower than the 144,000 customers it lost in Q1-2014. Total video customer relationships in Q2-2015 stood at 223.06 lakh as compared to the 224.57 lakh in the corresponding year ago quarter.

     

    High speed Internet

     

    High speed internet revenue in Q2-2015 grew 10 per cent to $3101 million from $2819 million in Q2-2014. YTD, revenue from this stream grew 10.3 per cent to $6145 million from $5569 million in 6M-2014.

     

    High speed internet customer relationships in Q2-2015 improved by 180,000 as compared to the improvement of 203,000 in Q2-2014. The total number of high speed internet customer relationships in Q2-2015 stood at 225.48 lakh, in Q2-2015, the corresponding number was 212.71 lakh.

     

    Voice

     

    Voice revenue in the current quarter at $903 million declined 2.1 per cent as compared to the $921 million in Q2-2014. YTD, revenue from this stream declined 1.8 per cent to $1809 million as compared to the $1842 million in 6M-2014.

     

    Voice customer relationships increased to 113.19 lakh as compared to the 110.03 lakh in Q2-2014.

     

    Business services, Advertising and Other

     

    Business services revenue grew 20.4 per cent to $1161 million in Q2-2015 as compared to $961 million in Q2-2015. Business services revenue in 6M-2015 increased 20.9 per cent to $2275 million as compared to the $1883 million in 6M-2014.

     

    Advertising revenue in Q2-2015 declined by 0.9 per cent to $582 million from $589 million in Q2-2014, while for 6M-2015, revenue declined 0.8 per cent to $1086 million as compared to $1094 million in 6M-2014.

     

    ‘Other’ revenue in Q1-2015 increased 10.9 per cent to $551 million as compared to the $497 in the corresponding year ago quarter. YTD, ‘Other’ revenue increased 10.2 per cent to $1082 million as compared to the $982 million in 6M-2014.

     

    NBCUniversal 

     

    Cable Networks, Broadcast television, Filmed Entertainment and Themed Parks contribute to NBCUniversal segment’s revenues.

     

    NBCUniversal revenue in Q2-2015 at $7230 million increased 20.2 per cent as compared to the $6016 million in the corresponding year ago quarter. For 6M-2015, revenue from this segment increased 7.3 per cent to $13,834 million from $12,892 million in the corresponding year ago six month period.

     

    Operating cash flow increased 19.4 per cent to $1712 million in Q2-2015 as compared to the $1434 million in Q2-2014. During 6M-2015, operating cash flow from this segment improved 16.8 per cent to $3206 million as compared to the $2745 million in 6M-2014 driven by strong results at Filmed Entertainment and Theme Parks.

     

    Cable Networks

     

    Cable Networks revenue in Q-2015 declined 4.6 per cent to $872 million as compared to the $914 million in Q2-2014, reflecting a 26.3 per cent decrease in content licensing and other revenue due to the timing of content provided under licensing agreements and a three per cent decline in advertising revenue, partially offset by a 5.6 per cent increase in distribution revenue. Operating cash flow decreased 4.6 per cent to $872 million compared to $914 million in Q2-2014, reflecting lower revenue and modest increases in other operating and administrative expenses.

     

    For 6M-2015, revenue 2.2 per cent to $1170 million as compared to the $1809 million in 6M-2014. Operating cash flow decreased 2.2 per cent to $1.8 billion in 6M-2015.

     

    Broadcast Television

     

    Broadcast Television revenue increased 3.7 per cent in Q2-2015 to $240 million as compared to the $231 million in Q2-2014 reflecting a slight increase in advertising revenue and higher retransmission consent fees, which were offset by lower content licensing revenue. Operating cash flow decreased 3.7 per cent to $231 million compared to Q2-2014, primarily reflecting increases in other operating and administrative expenses, which were largely offset by a decrease in programming and production costs associated with the timing of the airing of certain shows in our primetime schedule.

     

    YTD, Broadcast Television revenue increased 14 per cent to $413 million as compared to $352 million in 6M-2014. Excluding $376 million of revenue generated by the NFL’s Super Bowl in the Q1-2015, as well as $846 million of revenue generated by the Sochi Olympics in Q1-2014, revenue increased 2.6 per cent. Operating cash flow increased 14 per cent to $413 million compared to $362 million in 6M-2014.

     

    Filmed Entertainment

     

    Filmed Entertainment revenue in Q2-2015 more than doubled (up 2.17 times) to $422 million as compared to the $195 million in Q2-2014 driven by higher theatrical revenue from the record performances of Furious 7 and Jurassic World. Operating cash flow increased $227 million to $422 million, reflecting higher revenue, partially offset by an increase in the amortization of film costs and higher advertising, marketing and promotion expense due to a larger film slate.

     

    For 6M-2015, revenue increased 48.1 per cent to $715 million as compared to $483 million in 6M-2014. Operating cash flow increased 48.1 per cent to $715 million compared to $483 million in 6M-2014.

     

    Themed Parks

     

    Themed Parks in Q2-2015 increased 44.9 per cent to $354 million as compared to the $244 million in Q2-2014 reflecting higher guest attendance and per capita spending, driven by the continued success of Orlando’s The Wizarding World of Harry Potter – Diagon Alley. Q2-2015 cash flow increased 44.9 per cent to $354 million compared to $244 million in the same period last year, reflecting higher revenue, partially offset by an increase in operating costs to support the new attractions.

     

    For 6M-2015, revenue increased 48.9 per cent to $616 million as compared to the $414 million in 6M-2014. Operating cash flow increased 48.9 per cent to $617 million compared to $414 million in 6M-2014.

  • Comcast Q1-2015 revenue up 2.6%, operating income up 9%

    Comcast Q1-2015 revenue up 2.6%, operating income up 9%

    BENGALURU: Comcast Corporation reported 2.6 per cent growth in consolidated revenue in Q1-2015 (quarter ended 31 March, 2015, current quarter) to $17853 million as compared to the $17408 million in the corresponding year ago quarter. Comcast consolidated operating income increased nine per cent in Q1-2015 to $3890 million from $3568 million in Q1-2014.

     

    The company’s Cable Communications, Filmed Entertainment and Theme Parks segments reported growth in revenue, while Cable Networks Broadcast Television and NBU Universal segments reported a y-o-y fall in revenue.

     

    Comcast chairman and CEO Brian L Roberts said, “We are off to a great start in 2015, with 7.6 per cent 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 NBC Universal, 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.”

     

    Segment Results

     

    Cable Communications

     

    The company’s largest segment by revenue, Cable Communications reported 6.3 per cent revenue growth in Q1-2015 to $11430 million as compared to the $10757 million in Q1-2014, led by 21.5 per cent growth by its Business Services segment. Within the Cable Communications segment, revenue from Video grew three per cent to $5331 million in Q1-2015 from $5178 million in Q1-2015; High-speed Internet grew 10.7 per cent to $3044 million from $2750 million in Q1-2014; Revenue from Voice declined 1.5 per cent to $906 million from $920 million in Q1-2014; Business services revenue increased 21.5 per cent to $1114 million in Q1-2015 from $917 million in Q1-2014; Advertising Revenue fell 0.6 per cent to $504 million from $507 million in Q1-2014; Revenue from ‘Other’ grew 9.5 per cent to $531 million from $485 million in the corresponding year ago quarter.

     

    NBC Universal

     

    Revenue for NBC Universal decreased four per cent to $6604 million in the first quarter of 2015 compared to $6876 million in the first quarter of 2014. Excluding $376 million of revenue generated by the broadcast of the NFL’s Super Bowl in the first quarter of 2015 and $1100 million of revenue generated by the Sochi Olympics in the first quarter of 2014, revenue increased 7.9 per cent. Operating Cash Flow increased 14.0 per cent to $1494 million compared to $1311 million in Q1-2014, driven by strong results at Theme Parks and Broadcast Television. 

     

    Cable Networks

     

    For the first quarter of 2015, revenue from the Cable Networks segment decreased 5.9 per cent to $2359 million as compared to $2505 million in Q1-2015. Excluding $257 million of revenue generated by the Sochi Olympics in Q1-2014, revenue increased 4.9 per cent, reflecting a 4.8 per cent increase in distribution revenue and a 4.3 per cent increase in advertising revenue. Excluding a benefit from a reduction in deferred advertising revenue, advertising growth would have been stable as audience ratings declines were offset by higher prices and volume. Operating cash flow increased 0.3 per cent to $898 million compared to $895 million in Q1-2014, 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.

     

    Broadcast Television

     

    For the first quarter of 2015, revenue from the Broadcast Television segment decreased 14.2 per cent to $2248 million compared to $2621 million in Q1-2014. Excluding $376 million of revenue generated by the NFL’s Super Bowl in Q1-2015, as well as $846 million of revenue generated by the Sochi Olympics in Q1-2014, revenue increased 5.5 per cent, driven by a 5.5 per cent increase in advertising revenue, as well as higher retransmission consent fees.  Operating cash flow increased 48.9 per cent to $182 million compared to $122 million in Q1-2014, reflecting lower programming and production costs due to the broadcast of the Sochi Olympics in Q1-2014 and a profitable Super Bowl, partially offset by lower revenue.

     

    Filmed Entertainment

     

    For Q1-2015, revenue from the Filmed Entertainment segment increased seven per cent to $1446 million compared to the $1351 million in Q1-2014, reflecting higher content licensing and home entertainment revenue, partially offset by lower theatrical revenue. Operating cash flow increased 1.7 per cent to $293 million compared to $288 million in Q1-2014, reflecting higher revenue, partially offset by increased marketing expenses ahead of the release of Furious 7 early in the second quarter.

     

    Theme Parks

     

    For Q1-2015, revenue from the Theme Parks segment increased 33.7 per cent to $651 million compared to $487 million in the first quarter of 2014, reflecting higher guest attendance and per capita spending, driven by the continued success of Orlando’s The Wizarding World of Harry Potter – Diagon Alley. First quarter operating cash flow increased 54.6 per cent to $263 million compared to $170 million in the same period last year, reflecting higher revenue, partially offset by an increase in operating costs to support the new attractions.

  • Q3-2014: Comcast income up 50 per cent y-o-y; NBC Universal’s posts TV Broadcasting strong results

    Q3-2014: Comcast income up 50 per cent y-o-y; NBC Universal’s posts TV Broadcasting strong results

    BENGALURU:  Comcast Corporation (Comcast) reported a 4 per cent y-o-y growth in consolidated revenue (TR) in Q3-2014 to $ 16,791 million from $ 16,151 million in Q3-2013. However, q-o-q, the company’s revenue was almost flat with a fractional drop of 0.3 per cent from $ 16,844 million.

     

    Talking about the latest earnings, Comcast chairman and CEO Brian L Roberts said, “I am pleased to report strong revenue, operating cash flow and free cash flow growth for the third quarter of 2014. Cable results highlight the consistent strength of high-speed Internet and business services, and video customer results were the best for a third quarter in seven years. We continue to focus on innovation and providing the best experience for our customers, and we are thrilled with the response to our superior X1 platform, which recently reached five million boxes deployed. At NBC Universal, we had another outstanding quarter with double-digit operating cash flow growth, driven by ratings momentum at NBC Broadcast and the successful opening of The Wizarding World of Harry Potter-Diagon Alley in Orlando.”

     

    Comcast’s consolidated operating expenditure (Expenditure) in Q3-2014 at $ 11,087 million was 2.5 per cent more than the $ 10,821 million in Q3-2013 and 0.4 per cent more than the $ 11,040 million in Q2-2014.

     

    Comcast’s Earnings per Share (EPS) for the third quarter of 2014 was $ 0.99, a 52.3 per cent increase from the $ 0.65 reported in the third quarter of 2013. EPS for Q2-2014 was $ 0.76, (excluding gain on a sale and transaction-related costs, EPS in Q2-2014 was $0.75). Excluding income tax adjustments and transaction-related costs in Q3-2014, EPS increased 12.3 per cent to $ 0.73.

     

    The company’s net income after taxes, attributable to Comcast in Q3-2014 increased 49.7 per cent to $ 2,592 million from $ 1,732 million in Q3-2013. Net Income attributable to Comcast Corporation in Q2-2014 was $ 1,992 million.

     

    Comcast Business Streams

     

    Two main business streams contribute to Comcast: Cable Communications (between 60 and 65 per cent of TR) and NBC Universal (between 35 and 40 per cent of TR). 

     

    Video, high speed internet, voice, business services and other businesses are a part of Cable Communications. Cable Communications Video Revenue consists of analogue, digital, premium, pay-per-view, equipment services and residential video installation revenue. Other Cable Communications Revenue include franchise and other regulatory fees, digital media centre, commissions from electronic retailing networks and fees for other services.

     

    NBC Universal comprises of Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks businesses.  

     

    Cable Communications

     

    Overall, Cable Communications reported a 5.2 per cent growth in Q3-2014 to $ 11,041 million dollars (65.8 per cent of TR) from $ 10,491 million (65 per cent of TR) in Q3-2013 and was almost flat (grew by 0.1 per cent) from the $ 11029 million (65.5 per cent of TR) in Q2-2014.

     

    Cable Communications Expenditure in Q3-2014 at $ 6,577 million was 5.3 per cent more than the $ 6,245 million in Q3-2013 and 1.7 per cent more quarter on quarter than $ 6,465 million.

     

    Here is what the company has to say about Cable Communications:

     

    ‘Customer relationships increased by 82,000 to 26.9 million during the third quarter of 2014, more than three-times the customer relationship net additions in the third quarter of 2013. At the end of the third quarter, penetration of our triple product customers increased to 36 per cent compared to 34 per cent in the third quarter of 2013. High-speed Internet customer net additions improved versus last year and were the strongest for a third quarter in five years. Video customer net losses improved 36 per cent year-over-year and were the best result for a third quarter in seven years. Voice net additions slowed, reflecting a focus on double play during the back-to-school season, as well as X1 availability that was more focused on triple play customers last year, making for a difficult comparison.’

     

    NBC Universal:

     

    Comcast’s NBC Universal grew 1.2 per cent in Q3-2014 to $ 5,921 million (35.3 per cent of TR) from $ 5,851 million (36.2 per cent of TR) in Q3-2013, but shrank 1.6 per cent from $ 6,016 million (35.7 per cent of TR) in Q2-2014. Operating Cash Flow increased 13.3 per cent in Q3-2014 to $ 1.4 billion as compared to $ 1.3 billion in Q3-2013, driven by strong results at Broadcast Television and Theme Parks, says the company.

     

    NBC Universal Expenditure in Q3-2014 at $ 4,505 million was 6.6 per cent lower than the $ 4,601 million in Q3-2013 and 1.7 per cent lower than the $ 4,582 million in Q2-2014.

     

     

    Cable Networks:

     

    NBC Universal’s Cable Networks’ revenue in Q3-2014 at $ 2,255 million was 0.7 per cent more than $ 2,239 million in Q3-2013, but 8.9 per cent lower than $ 2,476 million reported for Q2-2014.

     

    Cable Networks’ expenditure in Q3-2014 at $ 1,387 million was 0.1 per cent more than the $ 1,386 million for the corresponding quarter year ago and 11.2 per cent lower than the $ 1,562 million in Q2-2014.

     

    Advertising revenue from Cable Networks shrank 4.7 per cent to $ 796 million in Q3-2014 from $ 835 million in Q3-2013 and was 15.8 per cent lower than $ 945 million in Q2-2014.

     

    Cable Networks’ distribution revenue grew 5.1 per cent in Q3-2014 to $ 1,281 million in Q3-2014 from $ 1,219 million in Q3-2013 and grew 0.9 per cent from $ 1,270 million in Q2-2014.

     

    Its content licensing and other revenue shrank 3.8 per cent to $ 178 million in Q3-2014 from $ 185 million in Q3-2013 and fell a massive 31.8 per cent from $ 261 million in the immediate trailing quarter.

     

     

    Television Broadcasting:

     

    NBC Universal’s Television Broadcasting revenue grew 7.7 per cent to $ 1,770 million in the current quarter from $ 1,644 million in Q3-2013, but was 2.5 per cent less than the $ 1,816 million in Q2-2014.

     

    Television Broadcasting Expenditure in Q3-2014 at $ 1,628 million was 1.1 per cent more than the $ 1,610 million in Q3-2013 and 3.3 per cent more than the $ 1,576 million in Q2-2014.

     

    Television Broadcasting advertising revenue in Q3-2014 grew 4.4 per cent to $ 1,153 million from $ 1,104 million in Q3-2013, but was 7.4 per cent lower than the $ 1,245 million in Q2-2014. Broadcast Television content licensing revenue grew by 13.2 per cent from $ 355 million in Q3- 2013 to $ 402 million in the current quarter and was 16.9 per cent higher than $ 344 million in Q2-2014. Other revenue for Broadcast Television grew 16.2 per cent to $ 215 million in Q3-2014 from $ 185 million in Q3-2013, but was 5.3 per cent lower than $ 227 million in Q2-2014.

     

    Filmed Entertainment:

     

    NBC Universal’s Filmed Entertainment revenue in Q3-2014 was 15.3 per cent lower at $ 1,186 million from $ 1,400 million in Q3-2013 and 0.9 per cent more than $ 1,176 million in Q2-2014. The company attributes this drop to the tough competition with the strong box office performance of Despicable me 2 in Q3-2013.

     

    Filmed Entertainment Expenditure in Q3-2014 at $ 1,035 million was 14.5 per cent lower than the $ 1,211 million in Q3-2013, but 5.5 per cent higher than the $ 981 million in Q2-2014.

     

    Theatrical revenue in Q3-2014 at $ 265 million was 52.6 per cent lower than the $ 550 million in Q3-2013, and 35.9 per cent more than $ 195 million in Q2-2014. Filmed Entertainment content licensing revenue at $ 439 million was 15.8 per cent more than $ 355 million in Q3-2013 but 5 per cent lower than the $ 462 million in Q2-2014.

     

    Home Entertainment revenue at $ 321 million in Q3-2014 fell 10.6 per cent from $ 359 million in Q3-2013 and was 11.8 per cent less than the $ 364 million in Q2-2014. Filmed Entertainment’s other revenue at US$ 161 million in Q3-2014 was 58.3 per cent more than the $ 103 million in Q3-2013 and was 3.9 per cent more than the $ 159 million in Q2-2014.

     

    Theme Parks

     

    NBC Universal’s Theme Park revenue at $ 786 million was 18.9 per cent more than the $ 661 million in Q3-2013 and 27.8 per cent more than the $ 615 million in Q2-2014.

     

    Theme Park Expenditure in Q3-2014 at $ 384 million was 20.8 per cent more than the $ 318 million in Q3-2013 and 3.5 per cent more than the $ 371 million in Q2-2014.

     

    Click here for earnings presentation

     

    Click here for financial results

  • Comcast acquires Time Warner Cable for $45.2 bln

    Comcast acquires Time Warner Cable for $45.2 bln

    MUMBAI: Comcast Corporation, the largest video, high-speed internet and phone services provider in the US, will acquire its competitor Time Warner Cable for $45.2 billion in all-stock deal.

     

    Through the merger, Comcast will acquire Time Warner Cable’s approximately 11 million managed subscribers. In order to reduce competitive concerns, Comcast said it is prepared to divest systems serving approximately 3 million managed subscribers.

     

    As such, Comcast will, through the acquisition and management of Time Warner Cable systems, net approximately 8 million managed subscribers in this transaction. This will bring Comcast’s managed subscriber total to approximately 30 million.

     

    Following the transaction, Comcast’s share of managed subscribers will remain below 30 percent of the total number of multi-channel video programming distributor (MVPD) subscribers in the US.

     

    Comcast Corporation  and Time Warner Cable today announced that their boards of directors have approved a definitive agreement for Time Warner Cable to merge with Comcast.

     

    Comcast will acquire 100 per cent of Time Warner Cable’s 284.9 million shares outstanding for shares of Comcast amounting to approximately $45.2 billion in equity value.

     

    Each Time Warner Cable share will be exchanged for 2.875 shares of CMCSA, equal to Time Warner Cable shareholders owning approximately 23 percent of Comcast’s common stock, with a value to Time Warner Cable shareholders of approximately $158.82 per share based on the last closing price of Comcast shares.

     

    The transaction will generate approximately $1.5 billion in operating efficiencies and will be accretive to Comcast’s free cash flow per share while preserving balance sheet strength. The merger will also be tax free to Time Warner Cable shareholders.

     

    Comcast said this transaction will create a leading technology and innovation company, differentiated by its ability to deliver ground-breaking products on a superior network while leveraging a national platform to create operating efficiencies and economies of scale.

     

    “The combination of Time Warner Cable and Comcast creates an exciting opportunity for our company, for our customers, and for our shareholders,” said Comcast’s Chairman and CEO Brian L Roberts. “Also, it is our intention to expand our buyback program by an additional $10 billion at the close of the transaction.

     

    The new cable company will generate multiple pro-consumer and pro-competitive benefits, including an accelerated deployment of existing and new innovative products and services for millions of customers.

     

    Comcast’s subscribers today have access to the most comprehensive video experience, including the cloud-based X1 Entertainment Operating System, plus 50,000 video on demand choices on television, 300,000 plus streaming choices on XfinityTV.com, Xfinity TV mobile apps that offer 35 live streaming channels plus the ability to download to watch offline later, and the newly launched X1 cloud DVR.

     

    Comcast is also a technology leader in broadband and has increased Internet speeds 12 times in the past 12 years across its entire footprint. Time Warner Cable owns cable systems located in key geographic areas, including New York City, Southern California, Texas, the Carolinas, Ohio, and Wisconsin.

     

    Time Warner Cable will combine its unique products and services with Comcast’s, including StartOver, which allows customers to restart a live program in progress to the beginning, and LookBack, which allows customers to watch programs up to three days after they air live, all without a DVR.

     

    Time Warner Cable also has been a leader in the deployment of community Wi-Fi, and will combine its more than 30,000 hotspots, primarily in Los Angeles and New York City, and its in-home management system, IntelligentHome, with Comcast’s offerings.

     

    The companies said the merger agreement between Comcast and Time Warner Cable is subject to shareholder approval at both companies and regulatory review and other customary conditions and is expected to close by the end of 2014.

     

    J.P. Morgan, Paul J. Taubman, and Barclays Plc acted as financial advisors to Comcast and Davis Polk & Wardwell LLP and Willkie Farr & Gallagher LLP are its legal advisors. Morgan Stanley, Allen & Company, Citigroup and Centerview Partners are financial advisors to Time Warner Cable and its Board of Directors, and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Skadden, Arps, Slate, Meagher & Flom LLP are legal advisors.

  • Comcast CEO Brian Roberts extends contract through June 2014

    Comcast CEO Brian Roberts extends contract through June 2014

    MUMBAI: Comcast chief executive Brian L. Roberts has extended his tenure at one of the largest cable company – for at least another year.

     

    Roberts isn’t planning on going anywhere – despite the seemingly short-term nature of the deal. His father, Ralph Roberts, founded the company half a century ago. What’s more, Brian Roberts’ employment contract had expired last month, according a filing Wednesday with the Securities and Exchange Commission.

     

    Rather than renegotiate his entire agreement, Roberts simply amended the pact so that it runs through June 2014. He did not negotiate any other modifications to the existing agreement, the filing said.

     

    This is not the first time Roberts, 54, has extended his agreement beyond its expected expiration. The current agreement took effect 1 January, 2005.

     

    Roberts last year received a compensation package from Comcast valued at $29 million, up eight per cent from 2011.