Comcast Reports Third Quarter 2005 Results

Comcast Reports Third Quarter 2005 Results

Cable Revenue Increased 9.8% to $5.3 Billion

Cable Operating Income Increased 27.1% to $948 Million

Cable Operating Cash Flow Increased 13.9% to $2.1 Billion

Growth in New Services Continues Added 710,000 Revenue Generating Units in the Quarter

High-Speed Internet Service Revenue Increased 26% To Reach $1 Billion for the Quarter

Invested $1 Billion in its Stock during the Quarter

PHILADELPHIA, Nov. 3 /PRNewswire-FirstCall/ -- Comcast Corporation (NASDAQ:CMCSA)(NASDAQ:CMCSK) today reported results for the quarter ended September 30, 2005. Comcast will discuss third quarter results on a conference call and webcast today at 8:30 AM Eastern Time. A live broadcast of the conference call will be available on the investor relations website at http://www.cmcsa.com/ and http://www.cmcsk.com/.

Brian L. Roberts, Chairman and CEO of Comcast Corporation said, "Our businesses continue to deliver strong operational and financial results as we post our 21st consecutive quarter of double digit Operating Cash Flow growth. Our Cable division delivered revenue growth of 9.8% and Operating Cash Flow growth of 13.9% contributing to consolidated revenue growth of 9.4%, consolidated Operating Cash Flow growth of 12.9% and an increase in consolidated operating income of 28.6%.

"We are extending our competitive advantage by delivering industry-leading products and our results demonstrate that our strategy is working. We are continually enhancing the TV viewing experience, providing more choices for our customers who are embracing a new way to watch television. Last month, we delivered our 1 billionth ON DEMAND program this year. Comcast High-Speed Internet exceeded $1 billion in revenue this quarter and at 20% penetration, we believe this business has significant growth potential. Comcast Digital Voice service is now available to 12 million households in 21 markets. The rollout of this new service is just getting started, and we expect Comcast Digital Voice to be another meaningful driver of growth for years to come.

"During this quarter we invested over $1 billion in our common stock through open market repurchases totaling $752 million and the cash settlement of Comcast exchangeable debt for $253 million. Since the inception of our repurchase program nearly two years ago, including the cash settlement of exchangeable debt, we have invested $4.1 billion in our stock resulting in 140 million or 6% fewer shares outstanding.

"We are in a strong position to deliver the best entertainment and communications services to consumers, and to build long-term value for our shareholders."

Comcast Cable Results

Cable results for the quarter and the nine months ended September 30, 2005 are presented on a pro forma basis. Pro forma cable results adjust only for certain acquisitions and dispositions and are presented as if the acquisitions and dispositions were effective on January 1, 2004. Please refer to Table 7-A for a reconciliation of pro forma data.

Third Quarter 2005

Comcast Cable reported revenue of $5.3 billion for the quarter ended September 30, 2005, representing a 9.8% increase from the third quarter of 2004. Video revenue increased $184 million or 5.7% to $3.4 billion in the third quarter of 2005, driven by higher monthly revenue per basic subscriber and a 12.4% increase in the number of digital customers. Comcast Cable added 307,000 new digital customers in the third quarter of 2005 and with more than 9.4 million subscribers, digital cable penetration reached 44.1% of basic subscribers. Basic subscribers are essentially unchanged at 21.4 million, a modest decline of 0.4% from one year ago.

Digital cable subscriber and video revenue growth reflects strong consumer demand for new digital features including Comcast ON DEMAND, high-definition television (HDTV) programming and digital video recorders (DVRs). Pay-per- view revenues increased 7.9% from the same period last year driven by movie and event purchases through the Comcast ON DEMAND service. During the third quarter, Comcast Cable deployed 326,000 advanced set-top boxes with DVR and/or HDTV programming capability, ending the quarter with a total of 2.3 million advanced set-top boxes in service. At September 30, 2005, 21.8% of digital customers have one or more advanced set-top boxes.

Comcast High-Speed Internet service revenues increased 26.1% to $1.0 billion in the third quarter of 2005, reflecting a 24.2% increase in subscribers and strong average revenue per subscriber. Comcast Cable ended the third quarter of 2005 with more than 8.1 million high-speed Internet subscribers, adding 437,000 subscribers during the quarter and resulting in a penetration rate of 19.9% of available homes. Average monthly revenue per high-speed Internet subscriber in the third quarter of 2005 of $42.88 was in line with a year ago.

Comcast Cable added 46,000 Comcast Digital Voice (CDV) customers, reflecting the rollout of CDV in new markets including Washington, D.C., Seattle, Baltimore and Denver. As expected, CDV customer additions were offset by a decline in the number of Comcast's circuit-switched telephone customers as Comcast transitions to marketing Comcast Digital Voice. As a result, Comcast Cable reported 12,000 net new phone customers in the third quarter of 2005. Cable phone revenue remained relatively unchanged from the third quarter of the prior year at $171 million.

Advertising revenue for the third quarter of 2005 increased 4.5% to $333 million, reflecting growth of 2.9% in local advertising and growth of 11.8% in regional/national advertising. The growth in advertising revenue during the quarter was offset by a decline in political advertising when compared to the prior year. Advertising revenue growth in the fourth quarter of 2005 will continue to reflect a significant decline in political advertising when compared to the 2004 election year.

Cable operating income before depreciation and amortization (Operating Cash Flow) grew 13.9% to $2.1 billion in the third quarter, an increase from the $1.9 billion reported for the third quarter of 2004. Operating Cash Flow margin increased to 39.8% in the third quarter of 2005 from 38.4% in the third quarter of 2004 reflecting strong revenue growth and the Company's continuing success in controlling the growth of operating costs.

Cable capital expenditures increased 3.2% to $899 million compared to the $871 million in the third quarter of 2004 reflecting increased purchases of digital set-top boxes to meet strong demand for digital services and higher costs associated with readiness and deployment of CDV.

Year-to-date September 2005

For the nine months ended September 30, 2005, Comcast Cable reported revenue of $15.8 billion, representing a 9.9% increase from the same period in the prior year. Video revenue increased 5.7% during the period, driven by higher monthly revenue per basic subscriber and a 12.4% increase in the number of digital customers. Comcast Cable added 790,000 digital cable subscribers during the first nine months of 2005 to end the period with more than 9.4 million digital subscribers. Comcast Cable basic subscribers declined 152,000 during the first nine months of 2005, ending the period at 21.4 million subscribers.

Comcast Cable added over 1.1 million high-speed Internet subscribers during the first nine months of 2005 to end the period with more than 8.1 million subscribers. Revenues for this service increased 29.0% from the prior year to $2.9 billion, reflecting strong year over year subscriber growth and stable average revenue per subscriber. Cable phone revenue declined 2.7% from the same period one year ago to $514 million, primarily due to lower revenue per customer as Comcast transitions to marketing Comcast Digital Voice. Comcast Cable added nearly 19,000 phone subscribers in the first nine months of 2005 compared to a loss of 54,000 subscribers in the first nine months of 2004. As of September 30, 2005 Comcast Cable added 1.8 million revenue generating units during the year. Advertising revenue increased 8.0% from the same period of 2004 to $991 million, including the decline in political advertising from the 2004 election year.

Operating Cash Flow grew 14.3% from the same period one year ago to $6.3 billion, reflecting strong revenue growth and the Company's success in controlling the growth of operating costs. Operating Cash Flow margin for the first nine months of 2005 increased to 39.9% from 38.4% in the prior year. Comcast Cable capital expenditures were $2.7 billion for the first nine months of 2005 compared to $2.6 billion last year. The increase in capital expenditures reflects the purchase of digital set-top boxes to meet strong demand for digital services, the costs associated with readiness and deployment of CDV, as well as capital investments for digital simulcasting and our integrated service platform that are being completed in 2005.

Content

Comcast's content segment consists of our national networks E! Entertainment Television and Style Network (E! Networks), The Golf Channel, OLN, G4 and AZN Television.

Comcast's content segment reported third quarter 2005 revenue of $237 million, a 14.8% increase from the third quarter of 2004 reflecting increases in distribution and advertising revenue for all the networks. The content segment reported Operating Cash Flow of $74 million in the third quarter of 2005, a 19.3% increase above the third quarter of 2004.

For the nine months ended September 30, 2005, Comcast's content segment reported revenue of $684 million, a 17.6% increase compared to the prior year period, and Operating Cash Flow of $248 million, an increase of 19.2% from the same period last year.

Corporate and Other

Corporate and Other includes Comcast-Spectacor, corporate overhead and other operations and eliminations between Comcast's businesses. In the third quarter of 2005, Comcast reported Corporate and Other revenue of $22 million and an Operating Cash Flow loss of $91 million as compared to revenue of $47 million and an Operating Cash Flow loss of $60 million in the third quarter of 2004. Operating Cash Flow includes charges related to the termination of player contracts at Comcast-Spectacor.

For the nine months ended September 30, 2005, Corporate and Other revenue declined to $105 million from the $161 million reported in the same period of 2004. The Operating Cash Flow loss for the year-to-date period ended September 30, 2005, was $196 million compared to $160 million in 2004. Results for the nine month period were impacted by the absence of National Hockey League games and charges related to player contracts described above.

Consolidated Results

For the three months ended September 30, 2005, the Company reported consolidated revenues of $5.6 billion, a 9.4% increase from the $5.1 billion reported in the same period of 2004. Consolidated Operating Cash Flow increased to $2.1 billion or 12.9%, in the third quarter of 2005, from the $1.9 billion reported in the same prior year period. Operating income increased to $883 million in the third quarter of 2005 compared to operating income of $686 million in the third quarter of 2004.

For the three months ended September 30, 2005, the Company reported consolidated net income of $222 million or $0.10 per share compared to consolidated net income of $220 million or $0.10 per share in the third quarter of 2004. Net income is relatively unchanged from the prior year as the current period increase in operating income of $197 million is offset by a $193 million decline in investment income when compared to the prior year. Investment income decreased during the third quarter of 2005 as compared to the prior year quarter due primarily to the effects of changes in the fair value of the Company's 2.0% Exchangeable Subordinated Debentures (ZONES) and the underlying Sprint common stock. These fair value changes are due principally to the effects of Sprint's reduction in its quarterly dividend following its merger with Nextel Communications, Inc. in August 2005.

Free Cash Flow (described further on Table 4) was $723 million in the third quarter of 2005 compared to $540 million reported in the third quarter of 2004, primarily due to increases in Operating Cash Flow.

For the nine months ended September 30, 2005, consolidated revenue increased 9.7% to $16.5 billion from the $15.1 billion reported in the same period of 2004. The Operating Cash Flow for the period ended September 30, 2005 was $6.3 billion, an increase of 14.3% when compared to $5.5 billion in 2004. Operating income increased to $2.8 billion in the first nine months of 2005 compared to operating income of $2.2 billion during the same time period of 2004.

For the nine months ended September 30, 2005, the Company reported consolidated net income of $795 million or $0.36 per share compared to consolidated net income of $547 million or $0.24 per share in the nine months ended September 30, 2004. The increase in year-to-date net income is due primarily to the growth in operating income offset in part by declines in investment income and other income from the prior year. The decline in investment income is due primarily to changes in value of the Company's ZONES debt and Sprint common stock in the third quarter of 2005, as described above. The decline in other income is due primarily to a charge reflecting our portion of a settlement related to certain AT&T litigation in the first quarter of 2005. Free Cash Flow was $1.9 billion during the year-to-date period, a 29.9% increase when compared to the same period of last year due primarily to the increase in Operating Cash Flow.

Share Repurchase Program

Comcast repurchased $752 million, or 25.3 million shares, of its common stock under its stock repurchase program during the third quarter of 2005. Including the $253 million paid in cash to redeem debt exchangeable into 8.4 million shares of Comcast common stock, Comcast invested $1.0 billion in its common stock and related securities during the quarter.

The Company repurchased $1.4 billion of its Class A Special Common Stock, or 45.2 million shares during the nine months ended September 30, 2005. Remaining availability under the Company's current stock repurchase program is $1.3 billion, as of September 30, 2005. Since the inception of the repurchase program in December 2003, Comcast has repurchased $2.7 billion or 93.0 million shares of its common stock. Including the $1.4 billion paid in cash to redeem several debt issues exchangeable into Comcast common stock, eliminating the need to issue 47.3 million additional shares, the Company has invested $4.1 billion in its common stock and related securities.

Financial Guidance 2005
Comcast updates the following previously issued guidance for 2005:

-- Consolidated Operating Cash Flow growth of approximately 13%* as
compared to the previous guidance range of between 14% and 15%
growth*, due primarily to costs incurred with the launch of National
Hockey League games on OLN beginning in the fourth quarter of 2005
and other initiatives in our Content division.
-- Consolidated Free Cash Flow growth of approximately 30%*, as compared
to the previous guidance range of between 35% to 45% growth*
primarily reflecting an increase in consolidated capital expenditures
to approximately $3.5* billion from the previous guidance range of
between $3.2 to $3.3 billion. The change in consolidated capital
expenditures reflects strong demand for digital set-top boxes and
increased costs of CDV readiness and deployment.

Comcast reaffirms the following previously issued guidance for 2005:

-- Consolidated revenue growth of approximately 10%.
-- Total Revenue Generating Unit growth of at least 2.5 million units.

* Does not include any impact from hurricane-related expenses incurred in the fourth quarter of 2005 or the adoption of SFAS No. 123R (Accounting for stock-based compensation).

This press release contains forward-looking statements. Readers are cautioned that such forward-looking statements involve risks and uncertainties that could significantly affect actual results from those expressed in any such forward-looking statements. For a description of such risks and uncertainties, readers are directed to Comcast's reports and other documents we file with the Securities and Exchange Commission.

In this discussion we sometimes refer to financial measures that are not presented according to generally accepted accounting principles (GAAP). Certain of these measures are considered "non-GAAP financial measures" under the Securities and Exchange Commission (SEC) regulations; those rules require the supplemental explanation and reconciliation provided in table 7 of this release.

Comcast Corporation will host a conference call with the financial community today November 3, 2005 at 8:30 a.m. Eastern Time (ET). The conference call will be broadcast live on the Company's Investor Relations website at http://www.cmcsa.com/ or http://www.cmcsk.com/. A recording of the call will be available on the Investor Relations website starting at 12:30 p.m. ET on November 3, 2005.

Those parties interested in participating via telephone should dial (847) 413-2408. A telephone replay will begin immediately following the call until Friday, November 4, 2005 at midnight ET. To access the rebroadcast, please dial (630) 652-3000 and enter passcode number 12825827#.

To automatically receive Comcast financial news by email, please visit http://www.cmcsa.com/ or http://www.cmcsk.com/ and subscribe to e-mail Alerts.

About Comcast:

Comcast Corporation (NASDAQ:CMCSA)(NASDAQ:CMCSK) (http://www.comcast.com/) is the nation's leading provider of cable, entertainment and communications products and services. With 21.4 million cable customers, 8.1 million high-speed Internet customers, and 1.2 million voice customers, Comcast is principally involved in the development, management and operation of broadband cable networks and in the delivery of programming content.

The Company's content networks and investments include E! Entertainment Television, Style Network, The Golf Channel, OLN, G4, AZN Television, PBS KIDS Sprout, TV One and four regional Comcast SportsNets. The Company also has a majority ownership in Comcast-Spectacor, whose major holdings include the Philadelphia Flyers NHL hockey team, the Philadelphia 76ers NBA basketball team and two large multipurpose arenas in Philadelphia. Comcast Class A common stock and Class A Special common stock trade on The NASDAQ Stock Market under the symbols CMCSA and CMCSK, respectively.

COMCAST CORPORATION
TABLE 1
Condensed Consolidated Statement of Operations (Unaudited)
(amounts in millions, except per share data)

Three Months Ended Nine Months Ended
September 30, September 30,
2005 2004 2005 2004
Revenues $5,578 $5,098 $16,539 $15,072

Operating expenses 2,007 1,837 5,908 5,500
Selling, general and
administrative expenses 1,472 1,401 4,293 4,027
3,479 3,238 10,201 9,527
Operating Cash Flow 2,099 1,860 6,338 5,545

Depreciation expense 914 869 2,679 2,480
Amortization expense 302 305 862 868
1,216 1,174 3,541 3,348
Operating Income 883 686 2,797 2,197

Other Income (Expense)
Interest expense (423) (435) (1,334) (1,419)
Investment income (loss), net (104) 89 36 231
Equity in net losses of
affiliates (18) (29) (22) (66)
Other income (expense) 17 63 (61) 82
(528) (312) (1,381) (1,172)
Income before Income Taxes
and Minority Interest 355 374 1,416 1,025

Income tax expense (143) (156) (614) (466)

Income Before Minority Interest 212 218 802 559

Minority interest 10 2 (7) (12)

Net Income $222 $220 $795 $547

Net Income per common share $0.10 $0.10 $0.36 $0.24

Basic weighted average number of
common shares 2,196 2,234 2,206 2,249

Diluted weighted average number of
common shares 2,209 2,243 2,219 2,259

COMCAST CORPORATION
TABLE 2
Condensed Consolidated Balance Sheet (Unaudited)
(dollars in millions)

September 30, December 31,
ASSETS 2005 2004

CURRENT ASSETS
Cash and cash equivalents $579 $452
Investments 207 1,555
Accounts receivable, net 990 959
Other current assets 587 569
Total current assets 2,363 3,535

INVESTMENTS 13,018 12,812

PROPERTY AND EQUIPMENT, net 18,781 18,711

FRANCHISE RIGHTS 51,111 51,071

GOODWILL 14,111 14,020

OTHER INTANGIBLE ASSETS, net 3,378 3,851

OTHER NONCURRENT ASSETS, net 635 694
$103,397 $104,694

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable and accrued
expenses related to trade
creditors $1,980 $2,041
Accrued expenses and other
current liabilities 2,667 2,735
Deferred income taxes 17 360
Current portion of long-term
debt 2,498 3,499
Total current liabilities 7,162 8,635

LONG-TERM DEBT, less current
portion 20,107 20,093

DEFERRED INCOME TAXES 27,130 26,815

OTHER NONCURRENT LIABILITIES 7,388 7,261

MINORITY INTEREST 605 468

STOCKHOLDERS' EQUITY 41,005 41,422
$103,397 $104,694

COMCAST CORPORATION
TABLE 3
Condensed Consolidated Statement of Cash Flows (Unaudited)
(dollars in millions)

Nine Months Ended
September 30,
2005 2004

OPERATING ACTIVITIES
Net cash provided by operating
activities $3,940 $4,435

FINANCING ACTIVITIES
Proceeds from borrowings 2,333 1,354
Retirements and repayments of debt (1,942) (2,289)
Repurchases of common stock and
stock options (1,291) (1,007)
Issuances of common stock 76 50
Other, net 27 14

Net cash used in financing
activities (797) (1,878)

INVESTING ACTIVITIES
Capital expenditures (2,753) (2,610)
Proceeds from sales and
restructuring of investments 626 200
Purchases of investments (310) (118)
Acquisitions, net of cash acquired (196) (296)
Additions to intangible and other
noncurrent assets (317) (572)
Purchases of short-term
investments, net (66) (20)
Proceeds from settlement of
contract of acquired company - 26

Net cash used in investing
activities (3,016) (3,390)

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 127 (833)

CASH AND CASH EQUIVALENTS,
beginning of period 452 1,550

CASH AND CASH EQUIVALENTS, end of
period $579 $717

TABLE 4
Calculation of Free Cash Flow (Unaudited) (1)
(dollars in millions)

Three Months Ended Nine Months Ended
September 30, September 30,
2005 2004 2005 2004
Operating Cash Flow $2,099 $1,860 $6,338 $5,545
Interest, Net (2) 417 403 1,243 1,309
Cash Paid for Income Taxes 48 39 475 189
Capital Expenditures 911 878 2,753 2,610
FREE CASH FLOW $723 $540 $1,867 $1,437

Changes in Working Capital and Other
Items (3) (211) 384 (680) 388

Net Cash Provided by Operating
Activities Less Capital
Expenditures $512 $924 $1,187 $1,825

(1) Free Cash Flow is defined as Operating Cash Flow less net interest,
cash paid for taxes, and capital expenditures. It is unaffected by
fluctuations in working capital levels from period to period and cash
payments associated with intangible and other noncurrent assets,
acquisitions and investments. Cash payments for intangible and other
noncurrent assets include long-term technology license agreements
including computer software and long-term contract rights to service
multi-dwelling properties. For the nine months ended September 30, 2005,
cash payments for intangibles and other noncurrent assets of $317 million
included licenses and software intangibles of $129 million and multiple
dwelling unit contracts of $53 million. For the nine months ended
September 30, 2004, cash payments for intangible assets and other
noncurrent assets of $572 million included a long-term strategic license
agreement with Gemstar of approximately $250 million, other licenses and
software intangibles of $126 million and multiple dwelling unit contracts
of $157 million. For the nine months ended September 30, 2005, cash
payments for acquisitions and investments totaling $506 million included
MGM Inc., Liberate Technologies, and MetaTV. In 2004, cash payments for
acquisitions and investments totaling $414 primarily related to the
acquisition of TechTV.

(2) Includes interest expense net of interest income and excludes non-cash
interest and subsidiary preferred dividends.

(3) Free Cash Flow excludes amounts necessary to reconcile Free Cash Flow
to "Net Cash Provided by Operating Activities Less Capital Expenditures."
For the nine months ended September 30, 2005, this amount includes $418
million in cash payments for liabilities incurred as part of the
acquisition of AT&T Broadband, including $220 million in payments
representing our share of the settlement payments related to certain AT&T
litigation. For the nine months ended September 30, 2004, this amount
includes income tax refunds of $536 million offset by $271 million in cash
payments for liabilities recorded as part of the acquisition of AT&T
Broadband. For the three months ended September 30, 2005, this amount
includes $35 million in cash payments for liabilities incurred as part of
the acquisition of AT&T Broadband. For the three months ended September
30, 2004, this amount includes $72 million in cash payments for
liabilities recorded as part of the acquisition of AT&T Broadband. The
remaining changes for both periods substantially relate to reductions in
accruals associated with the timing of payments of interest.

COMCAST CORPORATION
TABLE 5
Pro Forma Financial Data by Business Segment (Unaudited) (1)
(dollars in millions)

Corporate
and
Content Other
Cable (2) (3) (4) Total
Three Months Ended September 30, 2005
Revenues $5,319 $237 $22 $5,578
Operating Cash Flow $2,116 $74 ($91) $2,099
Operating Income (Loss) $948 $36 ($101) $883
Operating Cash Flow Margin 39.8% 31.4% NM 37.6%
Capital Expenditures (5) $899 $4 $8 $911

Three Months Ended September 30, 2004
Revenues $4,844 $207 $47 $5,098
Operating Cash Flow $1,858 $62 ($60) $1,860
Operating Income (Loss) $746 $20 ($80) $686
Operating Cash Flow Margin 38.4% 30.2% NM 36.5%
Capital Expenditures (5) $871 $4 $3 $878

Nine Months Ended September 30, 2005
Revenues $15,750 $684 $105 $16,539
Operating Cash Flow $6,286 $248 ($196) $6,338
Operating Income (Loss) $2,893 $136 ($232) $2,797
Operating Cash Flow Margin 39.9% 36.2% NM 38.3%
Capital Expenditures (5) $2,718 $11 $24 $2,753

Nine Months Ended September 30, 2004
Revenues $14,334 $582 $161 $15,077
Operating Cash Flow $5,499 $208 ($160) $5,547
Operating Income (Loss) $2,327 $92 ($220) $2,199
Operating Cash Flow Margin 38.4% 35.8% NM 36.8%
Capital Expenditures (5) $2,578 $14 $18 $2,610

(1) See Non-GAAP and Other Financial Measures in Table 7. Historical
financial data by business segment, as required under generally accepted
accounting principles, is available in the Company's quarterly report on
Form 10-Q. All percentages are calculated based on actual amounts. Minor
differences may exist due to rounding.

(2) Pro forma financial data includes the results of the 30,000 cable
subscribers acquired from US Coastal Cable in April 2004.

(3) Content includes our national networks E! Entertainment Television and
Style Network (E! Networks), The Golf Channel, OLN, G4 and AZN Television.

(4) Corporate and Other includes Comcast-Spectacor, Corporate activities
and all other businesses not presented in the Cable or Content segments
and elimination entries. Beginning in the third quarter of 2004, Comcast-
Spectacor includes the operating results of its investment in a sports-
event related business.

(5) Our Cable segment's capital expenditures are comprised of the
following categories:

YTD YTD
3Q05 3Q04 3Q05 3Q04
New Service Offerings
Customer Premise Equipment (CPE) $484 $392 $1,416 $1,022
Scalable Infrastructure 204 152 640 383
688 544 2,056 1,405
Recurring Capital Projects
Line Extensions 83 84 228 225
Support Capital 75 45 214 210
158 129 442 435

Upgrades 53 198 220 738
Total $899 $871 $2,718 $2,578

CPE includes costs incurred at the customer residence to secure new
customers, revenue units and additional bandwidth revenues (e.g. digital
converters). Scalable infrastructure includes costs, not CPE or network
related, to secure growth of new customers, revenue units and additional
bandwidth revenues or provide service enhancements (e.g. headend
equipment). Line extensions include network costs associated with
entering new service areas (e.g. fiber/coaxial cable). Support capital
includes costs associated with the replacement or enhancement of non-
network assets due to obsolescence and wear out (e.g. non-network
equipment, land, buildings and vehicles). Upgrades include costs to
enhance or replace existing fiber/coaxial cable networks, including
recurring betterments.

COMCAST CORPORATION
TABLE 6
Pro Forma Data - Cable Segment Components (Unaudited) (1) (2)
(dollars in millions, except average monthly revenue per subscriber data)

Three Months Ended Nine Months Ended
September 30, September 30,
2005 2004 2005 2004

Revenues:
Video (3) $3,406 $3,222 $10,209 $9,655
High-Speed Internet 1,020 808 2,927 2,269
Phone 171 173 514 528
Advertising 333 319 991 918
Other (4) 216 161 599 481
Franchise Fees 173 161 510 483
Total Revenues $5,319 $4,844 $15,750 $14,334

Operating Cash Flow $2,116 $1,858 $6,286 $5,499
Operating Income $948 $746 $2,893 $2,327
Operating Cash Flow Margin 39.8% 38.4% 39.9% 38.4%
Capital Expenditures $899 $871 $2,718 $2,578
Operating Cash Flow, Net of Capital
Expenditures $1,217 $987 $3,568 $2,921

3Q05 3Q04 2Q05
Video
Homes Passed (000's) 41,400 40,500 41,200
Basic Subscribers (000's) 21,409 21,501 21,455
Basic Penetration 51.8% 53.0% 52.1%
Quarterly Net Basic Subscriber
Additions (000's) (46) 9 (77)

Digital Subscribers (000's) 9,447 8,406 9,140
Digital Penetration 44.1% 39.1% 42.6%
Quarterly Net Digital Subscriber
Additions (000's) 307 341 284
Digital Set-Top Boxes 14,398 12,482 13,859

Monthly Average Video Revenue per
Basic Subscriber $52.98 $49.97 $53.37
Monthly Average Total Revenue per
Basic Subscriber $82.70 $75.10 $82.64

High-Speed Internet
"Available" Homes (000's) 40,980 38,060 40,758
Subscribers (000's) 8,142 6,556 7,705
Penetration 19.9% 17.2% 18.9%
Quarterly Net Subscriber Additions
(000's) 437 549 297
Monthly Average Revenue per
Subscriber $42.88 $42.90 $43.34

Phone
"Available" Homes (000's) (5) 16,524 9,978 11,454
Subscribers (000's) 1,242 1,213 1,230
Penetration 7.5% 12.2% 10.7%
Quarterly Net Subscriber Additions
(000's) 12 (12) 2
Monthly Average Revenue per
Subscriber $46.03 $47.18 $46.06

Total Revenue Generating Units
(000's) (6) 40,240 37,676 39,530
Quarterly Net Additions 710 887 506

(1) See Non-GAAP and Other Financial Measures in Table 7. All
percentages are calculated based on actual amounts. Minor differences may
exist due to rounding.

(2) Pro forma financial and subscriber data includes the results of the
30,000 cable subscribers acquired from US Coastal Cable in April 2004.
Pro forma subscriber data also includes 67,000 subscribers acquired in
various small acquisitions during the periods presented. The impact of
these acquisitions on our segment operating results was not material.

(3) Video revenues consist of our basic, expanded basic, premium, pay-
per-view, equipment and digital services.

(4) Other revenues include installation revenues, guide revenues,
commissions from electronic retailing, other product offerings, commercial
data services and revenues of our digital media center and regional sports
programming networks.

(5) Available homes includes circuit switched and Comcast Digital Voice
homes.

(6) The sum total of all basic video, digital video, high-speed Internet
and phone subscribers, excluding additional outlets.

COMCAST CORPORATION
TABLE 7

Non-GAAP and Other Financial Measures

Operating Cash Flow is the primary basis used to measure the operational
strength and performance of our businesses. Free Cash Flow is an
additional performance measure used as an indicator of our ability to
repay debt, make investments and return capital to investors, principally
through stock repurchases. We use Debt Excluding Exchangeables as a
measure of debt that will require cash from future operations or
financings. We also adjust certain historical data on a pro forma basis
following significant acquisitions or dispositions to enhance
comparability.

Operating Cash Flow is defined as operating income before depreciation and
amortization and impairment charges, if any, related to fixed and
intangible assets and gains or losses from the sale of assets, if any. As
such, it eliminates the significant level of non-cash depreciation and
amortization expense that results from the capital intensive nature of our
businesses and intangible assets recognized in business combinations, and
is unaffected by our capital structure or investment activities. Our
management and Board of Directors use this measure in evaluating our
consolidated operating performance and the operating performance of all of
our operating segments. This metric is used to allocate resources and
capital to our operating segments and is a significant component of our
annual incentive compensation programs. We believe that Operating Cash
Flow is also useful to investors as it is one of the bases for comparing
our operating performance with other companies in our industries, although
our measure of Operating Cash Flow may not be directly comparable to
similar measures used by other companies.

As Operating Cash Flow is the measure of our segment profit or loss, we
reconcile it to operating income, the most directly comparable financial
measure calculated and presented in accordance with Generally Accepted
Accounting Principles (GAAP), in the business segment footnote of our
quarterly and annual financial statements. Therefore, we believe our
measure of Operating Cash Flow for our business segments is not a "non-
GAAP financial measure" as contemplated by Regulation G adopted by the
Securities and Exchange Commission. Consolidated Operating Cash Flow is a
non-GAAP financial measure.

Free Cash Flow, which is a non-GAAP financial measure, is defined as
Operating Cash Flow less net interest, cash paid for taxes, and capital
expenditures. As such, it is unaffected by fluctuations in working
capital levels from period to period and cash payments associated with
intangible and other non-current assets which are detailed in our
quarterly and annual reports on Forms 10Q/K. We believe that Free Cash
Flow is also useful to investors as it is one of the bases for comparing
our operating performance with other companies in our industries, although
our measure of Free Cash Flow is accrual-based and may not be comparable
to similar measures used by other companies.

Debt Excluding Exchangeables, which is a non-GAAP financial measure,
refers to the aggregate amount of our consolidated debt and capital lease
obligations less the amount of notes that are collateralized by securities
that we own.

Pro forma data is used by management to evaluate performance when
significant acquisitions or dispositions occur. Historical data reflects
results of acquired businesses only after the acquisition dates while pro
forma data enhances comparability of financial information between periods
by adjusting the data as if the acquisitions (or dispositions) occurred at
the beginning of the prior year. Our pro forma data is only adjusted for
the timing of acquisitions and does not include adjustments for costs
related to integration activities, cost savings or synergies that have
been or may be achieved by the combined businesses. We believe our pro
forma data is not a non-GAAP financial measure as contemplated by
Regulation G.

Operating Cash Flow and Free Cash Flow should not be considered as
substitutes for operating income (loss), net income (loss), net cash
provided by operating activities or other measures of performance or
liquidity reported in accordance with GAAP. Debt Excluding Exchangeables
should not be considered as a substitute for Total Debt. Additionally, in
the opinion of management, our pro forma data is not necessarily
indicative of future results or what results would have been had the
acquired businesses been operated by us after the assumed earlier date.

Following are quantitative reconciliations of Free Cash Flow, Debt
Excluding Exchangeables, Consolidated Operating Cash Flow, and, although
not required by Regulation G, reconciliations of business segment
Operating Cash Flow and pro forma data.

COMCAST CORPORATION
TABLE 7-A
Reconciliation of Historical and Pro Forma Data by Business Segment
(Unaudited) (1)
(dollars in millions)

Historical
Adjustments (1)

Corporate Corporate
Three Months Ended and and
September 30, 2004 Cable Content Other Total Cable Other Pro forma
Revenues $4,844 $207 $47 $5,098 - - $5,098
Operating expenses
(excluding
depreciation and
amortization) 2,986 145 107 3,238 - - 3,238
Operating Cash Flow $1,858 $62 ($60) $1,860 - - $1,860
Depreciation and
amortization 1,112 42 20 1,174 - - 1,174
Operating Income
(loss) $746 $20 ($80) $686 - - $686
Capital expenditures $871 $4 $3 $878 - - $878

Corporate Corporate
Nine Months Ended and and
September 30, 2004 Cable Content Other Total Cable Other Pro forma
Revenues $14,329 $582 $161 $15,072 $5 - $15,077
Operating expenses
(excluding
depreciation and
amortization) 8,832 374 321 9,527 3 - 9,530
Operating Cash Flow $5,497 $208 ($160) $5,545 $2 - $5,547
Depreciation and
amortization 3,172 116 60 3,348 - - 3,348
Operating Income
(loss) $2,325 $92 ($220) $2,197 $2 - $2,199
Capital expenditures $2,578 $14 $18 $2,610 - - $2,610

Reconciliation of Operating Cash Flow to Free Cash Flow (Unaudited)
(dollars in millions)

Three Months Ended
September 30,
2005 2004
Operating Cash Flow $2,099 $2,099 $1,860 $1,860
Less:
Interest, net (2) (417) (417) (403) (403)
Cash Paid for Income Taxes (48) (48) (39) (39)
Change in Operating Assets and
Liabilities,
net of acquisitions (138) (114)
Other (3) (73) 498
Net Cash Provided by Operating
Activities $1,423 $1,802
Less: Capital Expenditures (911) (878)
Free Cash Flow $723 $540

Nine Months Ended
September 30,
2005 2004
Operating Cash Flow $6,338 $6,338 $5,545 $5,545
Less:
Interest, net (2) (1,243) (1,243) (1,309) (1,309)
Cash Paid for Income Taxes (475) (475) (189) (189)
Change in Operating Assets and
Liabilities,
net of acquisitions (329) (111)
Other (3) (351) 499
Net Cash Provided by Operating
Activities $3,940 $4,435
Less: Capital Expenditures (2,753) (2,610)
Free Cash Flow $1,867 $1,437

Calculation of 2005 Estimated Free Cash Flow
(dollars in billions)

Free Cash Flow
2004 Operating Income $2.9
Add: Depreciation and Amortization 4.6
2004 Operating Cash Flow 7.5

Operating Cash Flow Growth of 13% 1.0

Less: Projected 2005 Capital Expenditures (3.5)
Projected 2005 Consolidated Interest,
net and Cash Paid for Income Taxes (2.5)

Projected 2005 Free Cash Flow $2.5

2004 Free Cash Flow $1.9
2005 Free Cash Flow Growth approximately 30%

Reconciliation of Total Debt to Debt Excluding Exchangeables (Unaudited)
(dollars in millions)

September 30, 2005 December 31, 2004

Current portion of long-term debt $2,498 $3,499
Long-term debt 20,107 20,093
Total Debt $22,605 $23,592
Exchangeable debt 115 1,699
Debt excluding exchangeables $22,490 $21,893

(1) Pro forma data is only adjusted for timing of the acquisitions (or
dispositions) and does not include adjustments for costs related to
integration activities, cost savings or synergies that have been or
may be achieved by the combined businesses. There were no pro forma
adjustments to the three and nine months ending September 30, 2005.
Minor differences may exist due to rounding.

(2) Includes interest expense net of interest income and excludes non-
cash interest and subsidiary preferred dividends.

(3) Includes non-cash interest expense included in Operating Cash Flow,
cash related to other (income) expense, dividends, and the net effect of
changes in accrued income taxes.

Source: Comcast Corporation

CONTACT: Investor Contacts: Marlene S. Dooner, +1-215-981-7392, Leslie
A. Arena, +1-215-981-8511, or Daniel J. Goodwin, +1-215-981-7518; or Press
Contacts: D'Arcy Rudnay, +1-215-981-8582, or Tim Fitzpatrick, +1-215-981-8515,
all of Comcast Corporation

Web site: http://www.comcast.com/

Web site: http://www.cmcsk.com/

Web site: http://www.cmcsa.com/

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