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Comcast 2008 Annual Meeting
Comcast 2008 Annual Meeting
Comcast 2008 Annual Meeting
Comcast 2008 Annual Meeting
Comcast 2008 Annual Meeting
Comcast 2008 Annual Meeting
Comcast 2008 Annual Meeting
Comcast 2008 Annual Meeting
Comcast 2008 Annual Meeting
Comcast 2008 Annual Meeting
Comcast 2008 Annual Meeting
Comcast 2008 Annual Meeting
Comcast 2008 Annual Meeting
Comcast 2008 Annual Meeting
Comcast 2008 Annual Meeting
Comcast 2008 Annual Meeting
Comcast 2008 Annual Meeting
Comcast 2008 Annual Meeting
Comcast 2008 Annual Meeting
Comcast 2008 Annual Meeting
Comcast 2008 Annual Meeting
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Comcast 2008 Annual Meeting

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  • 1. Annual Meeting of Shareholders May 14, 2008 1
  • 2. Safe Harbor Caution Concerning Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify those so-called “forward-looking statements” by words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of those words and other comparable words. We wish to take advantage of the “safe harbor” provided for by the Private Securities Litigation Reform Act of 1995 and we caution you that actual events or results may differ materially from the expectations we express in our forward- looking statements as a result of various risks and uncertainties, many of which are beyond our control. Factors that could cause our actual results to differ materially from these forward-looking statements include: (1) changes in the competitive environment, (2) changes in business and economic conditions, (3) changes in our programming costs, (4) changes in laws and regulations, (5) changes in technology, (6) adverse decisions in litigation matters, (7) risks associated with acquisitions and other strategic transactions, (8) changes in assumptions underlying our critical accounting policies, and (9) other risks described from time to time in reports and other documents we file with the Securities and Exchange Commission. We undertake no obligation to update any forward-looking statements. The amount and timing of share repurchases and dividends is subject to business, economic and other relevant factors. Non-GAAP Financial Measures Our presentation may also contain non-GAAP financial measures, as defined in Regulation G, adopted by the SEC. We provide a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure in our quarterly earnings releases, which can be found on the Financial Information page of our web site at www.cmcsa.com or www.cmcsk.com. 2
  • 3. Focus: Profitable Growth to Drive Shareholder Value 3
  • 4. Focus: Profitable Growth to Drive Shareholder Value Best consumer experience New product innovation Enhancing shareholder value 4
  • 5. 2007: Solid Performance in a Challenging Environment ($ in billions except Adjusted EPS and RGU 2006 2007 Additions) Consolidated Revenue $27.8 $30.1 Pro Forma Growth Rate 12% Consolidated OCF $10.5 $11.8 Pro Forma Growth Rate 13% Consolidated FCF $2.6 $2.3 Share Repurchases $2.3 $3.1 Adjusted EPS $0.60 $0.74 New Product (RGU) Additions 5.1 6.0 5
  • 6. A More Challenging Environment: A Slowing Economy + Increasing Competition HSD Net Adds and Y/Y Percentage Change* Video Net Adds and Y/Y Percentage Change* (in thousands) (in thousands) 2006 2006 2007 2007 846 2,391 774 2,300 678 540 1,953 538 1,845 481 423 322 1,613 1,563 1,317 1,306 1Q 2Q 3Q 4Q 1Q07 2Q07 3Q07 4Q07 ’07 vs. ‘06 25% -40% -22% -38% -7% -18% -20% -29% Change 6 * Video Net Adds Include: CVC, TWC, CHTR, CMCSA, DTV, DISH, VZ FiOS and T U-Verse HSD Net Adds Include: T, TWC, CMCSA, CVC, VZ and CHTR
  • 7. 2008: Comcast Responded • Triple Play remains core message in the market • Expanding market offers to address changing environment: – Introducing new Double Play and Economy Offers Target new customers Provide choices for retention and upgrades Respond in competitive markets – Strong early results • Continue to invest to improve service and enhance product portfolio - Project Infinity: Focus on Hi-Def - Docsis 3.0 or Wideband 7
  • 8. Scale Matters Highest Advertising Revenue / Sub Lowest Programming Costs / Sub $70 $450 Advertising Revenue / Sub Programming Costs / Sub $65 $400 $60 $350 $55 $300 $50 $250 $45 $200 $40 $35 $150 0 5 10 15 20 25 0 5 10 15 20 25 Basic Subscribers Basic Subscribers Highest EBITDA Margin 50% EBITDA Margin 40% 30% 20% 10% 0% 0 5 10 15 20 25 Basic Subscribers 8 5/14/2008 Source: Company filings and Wall Street research
  • 9. Multiple Services Drive Growth Revenue by Product and Total Average Revenue per Basic Subscriber $107 ARPU $62 ARPU $42 ARPU 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 1Q08 Basic Video Digital Advertising HSD Phone Business Services 9 Note: Graph includes ARPU from circuit-switched phone acquired from AT&T Broadband.
  • 10. A Superior Video Product More than 7 Billion DEC 2007: ON DEMAND views 300 Million since 2004 Views DEC 2006: 180 Million Views DEC 2005: 140 Million Views DEC 2004: 75 Million Views 1,700 3,500 9,000 10,000+ Programs Programs Programs Programs 10
  • 11. A Superior Video Product • Today: more than 400 HD choices • 1,000 HD choices by YE2008 • Next: 3,000 HD movies on demand • Project Infinity: more content from more providers – the most on demand content anywhere 11
  • 12. A Superior Broadband Experience Drives Growth Total HSD Subscribers (subscribers in millions) 14.1 Penetration 14 12.4 28.4% 12 10.4 10 25.6% 8 22.0% 6 4 1Q06 1Q08 1Q07 2 1Q06 1Q07 1Q08 Stable Average Revenue per Subscriber: $40+/Month 12
  • 13. A Superior Broadband Experience Drives Growth Attracting More DSL Customers (% of gross HSD additions from DSL) 1 64% 68% 1 61% 1 55% 58% 1 53% 1 1 42% 1 38% 40% 0 0 27% 0 0 0 0 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 24% 3Q07 Source: comScore 4Q07 1Q08 Blast!® PowerBoost® Wideband 20% 13
  • 14. Comcast Digital Voice More Growth Ahead Ramping CDV Subscribers (in thousands) 11.5% 12.0% 5,200 4,950 10.3% • $573MM in CDV Revenue for 4,700 5,088 4,450 9.3% 1Q08, up 110% 10.0% 4,449 4,200 CDV Penetration* 3,950 8.1% 3,700 3,831 3,450 8.0% 6.8% 3,200 • ~80% of CDV customers take 2,950 3,150 5.6% 2,700 all three products 6.0% 2,450 4.4% 2,459 2,200 1,950 1,700 4.0% 1,872 3.1% 2.5% 1,450 • Goal: 20-25% penetration of 1,357 1,200 950 homes passed 2.0% 871 700 450 542 200 -50 0.0% 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2006 2007 1Q08 4th Largest Residential Phone Company: 5.1MM Customers 14
  • 15. Building Value in Programming and Interactive Media National Cable Regional Interactive Media Sports Businesses Networks Solidly positioned Growing Comcast’s Strong operating and performing well online businesses – businesses in creating converged 10 markets experiences Bay Area Chicago Mid-Atlantic New England Northwest Philadelphia West CSS SNY The Mtn 15
  • 16. Making a Difference Volunteerism May 3, 2008 Youth Leadership • 50,000 Volunteers Development • 500 community projects 1MM Hours of Service Since 2001 • 54% Increase in Participation in 2007 • Total Contributions $18.5MM+ since 2001 Literacy • $17MM+ in Grants to Literacy Programs since 2000 • 500+ Local Non-Profits and Charitable Partners 16
  • 17. Continuing Commitment to Return Capital to Shareholders 132% FCF $3.1Bn 127% FCF Share Repurchases* 90% FCF $2.5Bn $2.3Bn 142% FCF $1.0Bn FY2007 1Q08 FY2005 FY2006 Cumulative $16.4Bn** Returned 2005 thru 2009 * Includes the repurchase of $700MM of securities exchangeable into Comcast common stock in 2005 and 2006. 17 ** Includes actual Comcast share repurchases and repurchases of exchangeable securities described above through 2007 as well as the intention to complete approximately $7 billion of share repurchases by 2009 and pay an annual dividend of $0.25 in 2008 and 2009.
  • 18. Building Long-Term Shareholder Value $2,907,066 Average Annual Return CMCSA 18.3% S&P 500 Index 9.7% CMCSA $7,000 $195,458 S&P 500 05/9/2008 1972 1,000 Shares of CMCSA Purchased at the IPO at $7 per Share 18
  • 19. 10 Year Performance: Comcast Outperforms the S&P 500 Ten Year Total Return (5/9/98-5/9/08) 86% 47% 0% CMCSA S&P 500 CMCSA 19 S&P 500 3 Source: Bloomberg
  • 20. YTD 2008: Outperforming the Market and Our Peers Year to Date Total Return (1/1/08 – 5/1/08) 25.0% 22.6% 11.3% 12.5% 9.1% 3.2% 0.0% (0.9%) (1.9%) (1.9%) (4.0%) (4.9%) (6.5%) (6.7%) (7.6%) (8.0%) (9.5%) (9.6%) (10.8%) -12.5% Comcast DTV TWC DIS DISH T DJIA S&P TWX NASDAQ LBTYA VZ CVC Viacom NWS CBS 500 20
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