Comcast Reports Fourth Quarter and Year End 2005 Results

Comcast Reports Fourth Quarter and Year End 2005 Results

Cable Revenue Increased 9.5% and Cable Operating Cash Flow Increased 13.2% in 2005

Strong Growth in New Products Continues Added 2.6 Million New Revenue Generating Units in 2005

Consolidated Operating Income in 2005 Increased 26.9% to $3.7 Billion

Comcast Provides Strong Outlook for Growth in 2006

***

Repurchased $901 Million or 34 Million Comcast Shares in Fourth Quarter 2005 $2.5 Billion Investment in Company Stock in 2005

Board of Directors Authorizes Additional $5 Billion for Stock Repurchase Program

PHILADELPHIA, Feb. 2 /PRNewswire-FirstCall/ -- Comcast Corporation (NASDAQ:CMCSA)(NASDAQ:CMCSK) today reported results for the quarter and year ended December 31, 2005. Comcast will discuss its 2005 results and 2006 outlook on a conference call and webcast today at 8:30 AM Eastern Time. A live broadcast of the conference call will be available at our investor relations website at http://www.cmcsa.com/ and http://www.cmcsk.com/.

Brian L. Roberts, Chairman and CEO of Comcast Corporation said, "Our operational and financial achievements in 2005, which included delivering near double-digit revenue and double-digit Operating Cash Flow growth, were driven by terrific consumer demand for our new products and significant growth in our high-speed and digital businesses. These results reinforce the value of the investments we have already made in content and technology and demonstrate that our strategy of offering our customers innovative, differentiated products is working. Importantly, as our financial outlook suggests, we expect many of the positive trends we reported in 2005 to continue in 2006. Additionally, our Board of Directors has once again demonstrated its confidence in our underlying business and its commitment to shareholder value by authorizing an additional $5 billion to our repurchase program, giving us $5.2 billion of repurchase capacity.

"We have also made great strides in building the foundation that will significantly accelerate our Comcast Digital Voice business in 2006. This in turn will allow us to fully market a bundled offering of voice, video and high-speed Internet products. In 2006 we expect to add at least 3.5 million new revenue generating units, a 35% increase over 2005, including 1 million new Comcast Digital Voice customers.

"Our customers are using our products more frequently than ever and in ways that were unimaginable a short time ago. In 2005, Comcast digital customers watched 1.4 billion programs on demand - reaching a viewing rate of up to 30 programs in December. Comcast ON DEMAND continues to lead the dramatic changes in how consumers watch television.

"We continue to drive product innovation and differentiation in every area of our business. On the programming side, we remain focused on creating value by building and investing in our own networks, by establishing unique partnerships with great brands like the NHL, the PGA TOUR and CBS, as well as investing in new networks like PBS Kids Sprout.

"As we continue to invest in our business for future growth, we are also continuing to invest in our stock. In the last two years, we have invested $5 billion in our stock and related securities resulting in 174 million or 7.5% fewer shares outstanding.

"We are integrating entertainment and communication services and delivering a unique experience to Comcast customers. We have a superior platform in place today that reaches more than 41 million homes. Our goal is to continue to expand our competitive advantage while continuing to build value for our customers and shareholders."

Cable Segment Results

Cable results 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.

For the year ended December 31, 2005, Comcast Cable reported revenue of $21.2 billion, a 9.5% increase from the same period in 2004. Video revenue increased 5.7% during the year, driven by higher monthly revenue per basic subscriber and a 1.1 million or 13.1% increase in the number of digital customers, the highest rate of digital subscriber additions in 3 years. Comcast Cable ended the year with 9.8 million digital cable subscribers and digital cable penetration reached 45.6% of basic subscribers. Basic subscribers declined 0.5% to 21.4 million at December 31, 2005.

Growth in video revenue and digital cable subscribers reflects increasing consumer demand for new digital features, including Comcast ON DEMAND, high- definition television (HDTV) programming and digital video recorders (DVRs). During 2005, Comcast Digital customers watched 1.4 billion programs on demand; reaching 30 programs a month in December with an average viewing time of almost 30 minutes. Pay-per-view revenues increased 16.4% from 2004 driven by movie and event purchases through the Comcast ON DEMAND service, representing the second consecutive year of pay-per-view revenue growth of more than 15%. During the year, Comcast Cable deployed 1.5 million advanced set-top boxes with DVR and/or HDTV programming capability. At December 31, 2005, 25.2% of digital customers have one or more advanced set-top boxes compared to 13.1% at the end of 2004.

Comcast High-Speed Internet service revenues increased 27.6% to $4.0 billion in 2005, reflecting a 1.5 million or 21.8% increase in subscribers with stable average monthly revenue per subscriber of $42.82. Comcast Cable ended 2005 with more than 8.5 million high-speed Internet subscribers or 20.7% of available homes. Strong subscriber growth and average monthly revenue per subscriber reflect the success of Comcast's strategy of differentiation, providing more features to our subscribers. In 2005, Comcast high-speed Internet increased the speed of its two service tiers to 6 and 8 megabits per second, added new features like Internet security and increased the amount of video streaming through the Comcast.net portal, including exclusive streaming of National Hockey League games.

Comcast Cable added 202,000 Comcast Digital Voice (CDV) customers in 2005, reflecting the rollout of CDV to 25 new markets including Boston, Chicago, Seattle and Atlanta. At year-end 2005, CDV was being marketed to 16 million homes in our footprint. As expected, CDV customer additions were offset by a decline in the number of Comcast's circuit-switched telephone customers as Comcast transitions to Comcast Digital Voice. As a result, Comcast Cable reported 98,000 net new phone customers in 2005 compared to a loss of 43,000 in 2004. Cable phone revenue remained relatively unchanged from the prior year at $687 million which includes the increase in revenue associated with the addition of CDV customers during the year offset by the loss of circuit- switched customers and a 4.0% decline in average monthly revenue per subscriber to $45.02. The decline in average monthly revenue per subscriber was due in part to the all distance service and other features that are included in the flat rate pricing of CDV.

During 2005, Comcast Cable added a total of 2.6 million new revenue generating units. Revenue generating units (RGU) include the sum of analog and digital cable subscribers, high-speed Internet subscribers and phone customers. As of December 31, 2005, Comcast reported 41 million revenue generating units, a 6.9% increase from 2004. In addition, Comcast had more than 2.7 million advanced set-top boxes with DVR and/or HDTV programming capability in digital customers' homes, driving growth in video revenue per subscriber.

Advertising revenue increased 5.5% to $1.4 billion in 2005 when compared to 2004, reflecting growth of 4.9% in local advertising and growth of 9.7% in regional/national advertising. The growth in advertising revenue during the year was partially offset by an anticipated decline in political advertising when compared to the 2004 election year.

Cable Operating Cash Flow (as defined in Table 7) grew 13.2% to $8.5 billion in 2005. Operating Cash Flow margin increased to 40.0% in 2005 from 38.7% in 2004 reflecting strong revenue growth and our continuing success in controlling the growth of certain operating costs including programming expense, which increased 5.4% to $4.4 billion. A number of major hurricanes impacted Comcast systems serving the southeastern U.S. in the third and fourth quarters of 2005 and 2004. Operating Cash Flow has been reduced by $60 million and $20 million related to these hurricanes in 2005 and 2004, respectively. Excluding the hurricane-related impact, Operating Cash Flow grew 13.7% in 2005.

Cable capital expenditures in 2005 remained relatively unchanged at $3.6 billion when compared to one year ago. Expenditures for 2005 reflect increased purchases of digital set-top boxes to meet strong demand for HDTV and DVR digital services, costs associated with readiness and deployment of CDV and the impact of hurricane-related reconstruction costs, offset by declines in plant upgrade spending. The hurricane-related costs included in capital expenditures for 2005 were $25 million. Upgrade capital in 2005 declined $637 million or 70.7% to $265 million. In 2005, 76.1% of cable capital expenditures were variable and directly associated with new product deployment and consumer demand for our products, as compared to 58.1% in 2004.

Fourth Quarter 2005

For the quarter ended December 31, 2005, Comcast Cable reported revenue of $5.4 billion, representing an 8.4% increase from the fourth quarter of 2004. Video revenue increased 5.7% during the period, driven by higher monthly revenue per basic subscriber and a 13.1% increase in the number of digital customers. Comcast Cable added 342,000 digital cable subscribers and 40,000 basic cable subscribers during the fourth quarter of 2005. Basic subscriber additions were net of an estimated loss of 20,000 subscribers due to the hurricanes.

Comcast Cable added 378,000 High-Speed Internet subscribers during the fourth quarter of 2005. Revenues for this service increased 23.9% from the prior year to $1.1 billion, reflecting strong year-over-year subscriber growth and stable average monthly revenue per subscriber. Cable phone revenue, in the fourth quarter of 2005, remained relatively unchanged from the prior year at $173 million which includes the increase in revenue associated with the addition of 134,000 CDV customers during the quarter offset by the loss of 55,000 circuit-switched customers which, as described above, generate higher monthly revenue per customer. Comcast Cable added 79,000 phone subscribers in the fourth quarter of 2005 compared to 10,000 subscribers in the fourth quarter of 2004.

Operating Cash Flow grew 10.1% during the fourth quarter of 2005 to $2.2 billion when compared to the same period of 2004, reflecting strong revenue growth and the Company's success in controlling the growth of operating costs. Excluding the hurricane impacts of $48 million and $9 million in the fourth quarters of 2005 and 2004, respectively, Operating Cash Flow growth was 11.9%. Operating Cash Flow margin for the fourth quarter of 2005 increased to 40.2% from 39.6% when compared to the same quarter last year. Comcast Cable capital expenditures were $849 million for the fourth quarter of 2005 compared to $1.0 billion last year. The decline in capital expenditures was due primarily to a $119 million or 72.5% decline in plant upgrade spending in the fourth quarter of 2005.

Content Segment Results

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.

The Content segment reported 2005 revenue of $919 million, a 16.7% increase from 2004 reflecting increases in network ratings and advertising revenue for all the networks. Operating Cash Flow increased 7.0% to $283 million in 2005, primarily reflecting programming and production expenses related to OLN's coverage of the National Hockey League (NHL) beginning in the fourth quarter of 2005. Excluding the impact of OLN coverage of the NHL, Content Segment Operating Cash Flow increased 15.3%.

For the quarter ended December 31, 2005, Comcast's Content segment reported revenue of $235 million, a 14.2% increase, compared to the prior year and Operating Cash Flow of $35 million, a decline of 37.9% from the same period last year. Results include the fourth quarter impact of the items described above.

Corporate and Other

Corporate and Other includes Comcast-Spectacor, corporate overhead and other operations and eliminations between Comcast's businesses. In 2005, Comcast reported Corporate and Other revenue of $178 million and an Operating Cash Flow loss of $248 million, as compared to revenue of $204 million and an Operating Cash Flow loss of $205 million in 2004.

For the quarter ended December 31, 2005, Corporate and Other revenue increased to $73 million from the $43 million reported in 2004. The Operating Cash Flow loss for the fourth quarter of 2005 was $52 million compared to $45 million in 2004. Results for the fourth quarter of 2005 were impacted by the resumption of National Hockey League games, offset by transaction and other corporate expenses.

Consolidated Results

Comcast delivered solid consolidated results as compared to guidance in 2005:

Guidance Results
Revenue growth Approximately 10% 9.6%
Operating Cash Flow growth Approximately 13% 12.8%
Cable RGU additions At least 2.5 million 2.6 million
Capital expenditures Approximately $3.5 billion $3.6 billion
Free Cash Flow growth Approximately 30% 32.5%

For 2005, the Company reported consolidated revenues of $22.3 billion, a 9.6% increase from the $20.3 billion reported in 2004. Consolidated Operating Cash Flow increased to $8.5 billion or 12.8%, in 2005, from the $7.5 billion reported in the prior year. Consolidated operating income increased 26.9% to $3.7 billion, in 2005, compared to consolidated operating income of $2.9 billion in 2004. Excluding the hurricane-related impact on our Cable division, as described above, consolidated Operating Cash Flow grew 13.2% in 2005.

The Company reported net income of $928 million or $0.42 per share, in 2005, compared to net income of $970 million or $0.43 per share in 2004. The decrease in net income of $42 million was due primarily to growth in consolidated operating income of $782 million driven by strong growth in Cable Operating Cash Flow, as described above, offset by declines in investment income and other income of $833 million. On a combined basis, investment and other income declined to $33 million in 2005 from $866 million in 2004. This decline is due primarily to the net effects of changes in the fair value of the Company's 2.0% Exchangeable Subordinated Debentures (ZONES) and the underlying Sprint Nextel common stock as well as litigation settlements in the first quarter of 2005 and the fourth quarter of 2004. Excluding the items described above, and reconciled in Table 7-B, Adjusted Net Income for 2005 would be $908 million or $0.41 per share compared to $450 million or $0.20 per share in 2004.

Free Cash Flow (described further on Table 4) increased 32.5% to $2.6 billion in 2005 compared to $1.9 billion reported in 2004, due primarily to increases in consolidated Operating Cash Flow offset in part by a $448 million increase in cash paid for income taxes.

For the quarter ended December 31, 2005, consolidated revenue increased 9.2% to $5.7 billion from the $5.2 billion reported in the same period of 2004. Consolidated Operating Cash Flow for the fourth quarter of 2005 was $2.2 billion, an increase of 8.5% when compared to $2.0 billion in 2004. Consolidated operating income increased 25.6% to $893 million in the fourth quarter of 2005 compared to consolidated operating income of $711 million during 2004. Excluding the hurricane-related impact on our Cable division, as described above, consolidated Operating Cash Flow grew 10.3% in the fourth quarter of 2005.

For the quarter ended December 31, 2005, the Company reported net income of $133 million or $0.06 per share compared to net income of $423 million or $0.19 per share in 2004, a decline of $290 million. Net income reflects growth in consolidated operating income of $182 million driven by strong growth in Cable division Operating Cash Flow, as described above, offset by declines in investment and other income and an increase in the effective tax rate. On a combined basis, investment and other income for the fourth quarter of 2005 declined to $58 million from $553 million in the same quarter of 2004. The $495 million decline was driven by a lower level of unrealized gains in our investment portfolio in the fourth quarter of 2005 and the positive impact of the settlement of certain litigation included in the fourth quarter of 2004. Excluding the items described above, and reconciled in Table 7-B, Adjusted Net Income for the fourth quarter of 2005 would be $186 million or $0.09 per share when compared to $91 million or $0.04 per share in the fourth quarter of 2004.

Free Cash Flow was $699 million during the fourth quarter of 2005, a 39.9% increase when compared to the same period of the prior year due primarily to the increase in consolidated Operating Cash Flow and lower capital expenditures offset in part by an increase in cash paid for income taxes.

Share Repurchase Program

Comcast repurchased $901 million of its Class A Special Common Stock, or 34 million shares during the fourth quarter of 2005.

In 2005, the Company repurchased $2.3 billion, or 79 million shares, of its common stock under its stock repurchase program. Including the $253 million paid in cash to redeem debt exchangeable into 8.4 million shares of Comcast common stock, Comcast invested $2.5 billion in its common stock and related securities during the year.

Comcast's Board of Directors has authorized a $5 billion addition to the existing stock repurchase program. As a result, availability under the Company's stock repurchase program is $5.2 billion. Comcast expects such repurchases to occur from time to time in the open market or in private transactions, subject to market conditions.

Since the inception of the repurchase program in December 2003, the Company has invested $5 billion in its common stock and related securities. These investments include repurchasing $3.6 billion or 127 million shares of its common stock and paying $1.4 billion to redeem several debt issues exchangeable into 47 million shares of Comcast common stock.

2006 Financial Outlook

For 2006, excluding pending transactions with Adelphia, Time Warner and Susquehanna Communications, Comcast expects:

-- Cable and consolidated revenue growth between 9 - 10%
-- Cable Operating Cash Flow growth between 10 - 11%*
-- Cable capital expenditures to be consistent with 2005 at approximately
$165 per basic cable subscriber
-- Total Revenue Generating Unit additions of at least 3.5 million
-- Consolidated Operating Cash Flow growth of between 9 - 10%*,
reflecting continuing investment in our Content businesses
-- Conversion of between 25 - 30% of consolidated Operating Cash Flow
into Free Cash Flow**

* Includes the impact of expensing stock options in 2005 and 2006. The impact on Operating Cash Flow for 2005 had we expensed stock options would have been an incremental expense of approximately $166 million, including $117 million at Comcast Cable (see Table 7-A).

** Beginning in 2006, we are changing the definition of Free Cash Flow to mean "Net Cash Provided by Operating Activities From Continuing Operations" (as stated in our Consolidated Statement of Cash Flows) reduced by capital expenditures and cash paid for intangible assets; and increased by any payments related to certain non-operating items, net of estimated tax benefits, (such as income taxes on investment sales, and non-recurring payments related to income tax and litigation contingencies of acquired companies). Please see Table 7-A for further details.

This press release contains forward-looking statements. Readers are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual events or our actual results to differ materially from those expressed in any such forward-looking statements. Readers are directed to Comcast's periodic and other reports filed with the Securities and Exchange Commission for a description of such risks and uncertainties.

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. All percentages are calculated based on actual amounts. Minor differences may exist due to rounding.

Comcast Corporation will host a conference call with the financial community today February 2, 2006 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 February 2, 2006. Those parties interested in participating via telephone should dial (800) 263-8495 with the conference ID number 4216292. A telephone replay will begin immediately following the call until February 3, 2006 at midnight ET. To access the rebroadcast, please dial (800) 642-1687 and enter passcode number 4216292. 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, 8.5 million high-speed Internet customers, and 1.3 million voice customers, Comcast is principally involved in the development, management and operation of broadband cable systems 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 Twelve Months
Ended Ended
December 31, December 31,
2005 2004 2005 2004
Revenues $5,716 $5,235 $22,255 $20,307

Operating expenses 2,061 1,962 7,969 7,462
Selling, general and
administrative expenses 1,500 1,287 5,793 5,314
3,561 3,249 13,762 12,776
Operating Cash Flow 2,155 1,986 8,493 7,531

Depreciation expense 951 940 3,630 3,420
Amortization expense 311 335 1,173 1,203
1,262 1,275 4,803 4,623
Operating Income 893 711 3,690 2,908

Other Income (Expense)
Interest expense (462) (457) (1,796) (1,876)
Investment income, net 53 241 89 472
Equity in net losses of
affiliates (25) (22) (47) (88)
Other income (expense) 5 312 (56) 394
(429) 74 (1,810) (1,098)
Income before Income Taxes
and Minority Interest 464 785 1,880 1,810

Income tax expense (319) (360) (933) (826)

Income Before Minority Interest 145 425 947 984

Minority interest (12) (2) (19) (14)

Net Income $133 $423 $928 $970

Net Income per common share $0.06 $0.19 $0.42 $0.43

Basic weighted average number of
common shares 2,169 2,218 2,197 2,240

Diluted weighted average number of
common shares 2,179 2,229 2,208 2,250

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

December 31, December 31,
ASSETS 2005 2004

CURRENT ASSETS
Cash and cash equivalents $693 $452
Investments 148 1,555
Accounts receivable, net 1,060 959
Other current assets 693 569
Total current assets 2,594 3,535

INVESTMENTS 12,682 12,812

PROPERTY AND EQUIPMENT, net 18,769 18,711

FRANCHISE RIGHTS 51,090 51,071

GOODWILL 14,218 14,020

OTHER INTANGIBLE ASSETS, net 3,160 3,851

OTHER NONCURRENT ASSETS, net 633 694
$103,146 $104,694

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable and accrued
expenses related to trade
creditors $2,033 $2,041
Accrued expenses and other
current liabilities 2,545 2,735
Deferred income taxes 2 360
Current portion of long-term debt 1,689 3,499
Total current liabilities 6,269 8,635

LONG-TERM DEBT, less current portion 21,682 20,093

DEFERRED INCOME TAXES 27,370 26,815

OTHER NONCURRENT LIABILITIES 6,949 7,261

MINORITY INTEREST 657 468

STOCKHOLDERS' EQUITY 40,219 41,422
$103,146 $104,694

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

Twelve Months Ended
December 31,
2005 2004

OPERATING ACTIVITIES
Net cash provided by operating activities $4,922 $5,930

FINANCING ACTIVITIES
Proceeds from borrowings 3,978 1,030
Retirements and repayments of debt (2,706) (2,323)
Repurchases of common stock and
stock options (2,313) (1,361)
Issuances of common stock 93 113
Other, net 15 25

Net cash used in financing activities (933) (2,516)

INVESTING ACTIVITIES
Capital expenditures (3,621) (3,660)
Proceeds from sales and
restructuring of investments 861 228
Purchases of investments (306) (156)
Acquisitions, net of cash acquired (199) (296)
Cash paid for intangible assets (281) (615)
Purchases of short-term
investments, net (86) (13)
Proceeds from settlement of
contract of acquired company - 26
Other, net (116) (26)

Net cash used in investing activities (3,748) (4,512)

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 241 (1,098)

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

CASH AND CASH EQUIVALENTS, end of period $693 $452

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

Three Twelve
Months Ended Months Ended
December 31, December 31,
2005 2004 2005 2004
Operating Cash Flow $2,155 $1,986 $8,493 $7,531
Interest, Net (2) 410 420 1,653 1,729
Cash Paid for Income Taxes (3) 178 16 653 205
Capital Expenditures 868 1,050 3,621 3,660
FREE CASH FLOW $699 $500 $2,566 $1,937

Changes in Working Capital and Other
Items (4) (585) (55) (1,265) 333

Net Cash Provided by Operating
Activities Less Capital
Expenditures $114 $445 $1,301 $2,270

(1) Free Cash Flow (as presented above) is defined as Operating Cash Flow
less net interest, cash paid for income 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
assets include long-term technology license agreements including computer
software and long-term contract rights to service multi-dwelling
properties. For the twelve months ended December 31, 2005, cash payments
for intangible assets of $281 million included licenses and software
intangibles of $174 million and multiple dwelling unit contracts of $68
million. For the twelve months ended December 31, 2004, cash payments
for intangible assets of $615 million included a long-term strategic
license agreement with Gemstar of approximately $250 million, other
licenses and software intangibles of $161 million and multiple dwelling
unit contracts of $177 million. For the twelve months ended December 31,
2005, cash payments for acquisitions and investments totaling $505
million included MGM Inc., Liberate Technologies, and MetaTV. In 2004,
cash payments for acquisitions and investments totaling $452 million
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) Cash paid for income taxes excludes $490 million related to AT&T
Broadband income taxes and related interest, net of estimated tax
benefit.

(4) Free Cash Flow excludes amounts necessary to reconcile Free Cash Flow
to "Net Cash Provided by Operating Activities Less Capital Expenditures."
For the twelve months ended December 31, 2005, this amount includes $994
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 and $557 million related to AT&T Broadband income tax related
payments. For the twelve months ended December 31, 2004, this amount
includes proceeds of $680 million related to the exchange/sale of Liberty
Media and Liberty Media International stock and income tax refunds of
$591 million offset by $515 million in cash payments for liabilities
recorded as part of the acquisition of AT&T Broadband. For the three
months ended December 31, 2005, this amount includes $576 million in cash
payments for liabilities incurred as part of the acquisition of AT&T
Broadband including $557 million related to AT&T Broadband income tax
related payments. For the three months ended December 31, 2004, this
amount includes $244 million in cash payments for liabilities recorded as
part of the acquisition of AT&T Broadband.

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

Corporate and
Cable Content Other
(2) (3) (4) Total
Three Months Ended December 31, 2005
Revenues $5,408 $235 $73 $5,716
Operating Cash Flow $2,172 $35 ($52) $2,155
Operating Income (Loss) $967 ($8) ($66) $893
Operating Cash Flow Margin 40.2% 15.0% NM 37.7%
Capital Expenditures (5) $849 $5 $14 $868

Three Months Ended December 31, 2004
Revenues $4,987 $205 $43 $5,235
Operating Cash Flow $1,974 $57 ($45) $1,986
Operating Income (Loss) $771 $11 ($71) $711
Operating Cash Flow Margin 39.6% 27.6% NM 37.9%
Capital Expenditures (5) $1,044 $3 $3 $1,050

Twelve Months Ended December 31, 2005
Revenues $21,158 $919 $178 $22,255
Operating Cash Flow $8,458 $283 ($248) $8,493
Operating Income (Loss) $3,860 $128 ($298) $3,690
Operating Cash Flow Margin 40.0% 30.8% NM 38.2%
Capital Expenditures (5) $3,567 $16 $38 $3,621

Twelve Months Ended December 31, 2004
Revenues $19,321 $787 $204 $20,312
Operating Cash Flow $7,473 $265 ($205) $7,533
Operating Income (Loss) $3,098 $103 ($291) $2,910
Operating Cash Flow Margin 38.7% 33.6% NM 37.1%
Capital Expenditures (5) $3,622 $17 $21 $3,660

(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 annual
report on Form 10-K. 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:

FY FY
4Q05 4Q04 2005 2004
New Service Offerings
Customer Premise Equipment (CPE) $460 $523 $1,876 $1,545
Scalable Infrastructure 197 178 837 561
657 701 2,713 2,106
Recurring Capital Projects
Line Extensions 75 86 303 311
Support Capital 72 93 286 303
147 179 589 614

Upgrades 45 164 265 902
Total $849 $1,044 $3,567 $3,622

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 per subscriber and per unit data)

Three Months Twelve Months
Ended Ended
December 31, December 31,
2005 2004 2005 2004

Revenues:
Video (3) $3,426 $3,242 $13,635 $12,897
High-Speed Internet 1,059 855 3,986 3,124
Phone 173 173 687 701
Advertising 368 369 1,359 1,287
Other (4) 212 185 811 666
Franchise Fees 170 163 680 646
Total Revenues $5,408 $4,987 $21,158 $19,321

Programming Expense $4,371 $4,149

Operating Cash Flow $2,172 $1,974 $8,458 $7,473
Operating Income $967 $771 $3,860 $3,098
Operating Cash Flow Margin 40.2% 39.6% 40.0% 38.7%
Capital Expenditures $849 $1,044 $3,567 $3,622
Operating Cash Flow, Net of Capital
Expenditures $1,323 $930 $4,891 $3,851
Capital Expenditures per Basic
Subscriber $166 $168
Capital Expenditures per Revenue
Generating Unit $87 $94

4Q05 4Q04 3Q05
Video
Homes Passed (000's) 41,600 40,800 41,400
Basic Subscribers (000's) 21,449 21,561 21,409
Basic Penetration 51.5% 52.8% 51.8%
Quarterly Net Basic Subscriber
Additions (000's) 40 60 (46)

Digital Subscribers (000's) 9,789 8,656 9,447
Digital Penetration 45.6% 40.1% 44.1%
Quarterly Net Digital Subscriber
Additions (000's) 342 251 307
Digital Set-Top Boxes 15,052 12,960 14,398

Monthly Average Video Revenue per
Basic Subscriber $53.29 $50.19 $52.98
Monthly Average Total Revenue per
Basic Subscriber $84.12 $77.24 $82.70

High-Speed Internet
"Available" Homes (000's) 41,249 40,010 40,980
Subscribers (000's) 8,520 6,994 8,142
Penetration 20.7% 17.5% 19.9%
Quarterly Net Subscriber Additions
(000's) 378 438 437
Monthly Average Revenue per
Subscriber $42.39 $42.06 $42.88

Phone
"Available" Homes (000's) (5) 21,378 10,437 16,524
Subscribers (000's) 1,321 1,223 1,242
Penetration 6.2% 11.7% 7.5%
Quarterly Net Subscriber Additions
(000's) 79 10 12
Monthly Average Revenue per
Subscriber $45.19 $47.30 $46.03

Total Revenue Generating Units
(000's) (6) 41,079 38,434 40,240
Quarterly Net Additions 839 759 710

(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 85,000 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, has been defined as Operating Cash Flow less net interest, cash paid for income 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. Beginning in 2006, we are changing the definition of Free Cash Flow to mean "Net Cash Provided by Operating Activities From Continuing Operations" (as stated in our Consolidated Statement of Cash Flows) reduced by capital expenditures and cash paid for intangible assets; and increased by any payments related to certain non-operating items, net of estimated tax benefits (such as income taxes on investment sales, and non-recurring payments related to income tax and litigation contingencies of acquired 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 Pro
December 31, 2004 Cable Content Other Total Cable Other forma
Revenues $4,987 $205 $43 $5,235 - - $5,235
Operating Expenses
(excluding depreciation
and amortization) 3,013 148 88 3,249 - - 3,249
Operating Cash Flow $1,974 $57 ($45) $1,986 - - $1,986
Depreciation and
amortization 1,203 46 26 1,275 - - 1,275
Operating Income (loss) $771 $11 ($71) $711 - - $711
Capital expenditures $1,044 $3 $3 $1,050 - - $1,050

Corporate Corporate
Twelve Months Ended and and Pro
December 31, 2004 Cable Content Other Total Cable Other forma
Revenues $19,316 $787 $204 $20,307 $5 - $20,312
Operating expenses
(excluding depreciation
and amortization) 11,845 522 409 12,776 3 - 12,779
Operating Cash Flow $7,471 $265 ($205) $7,531 $2 - $7,533
Depreciation and
amortization 4,375 162 86 4,623 - - 4,623
Operating Income (loss) $3,096 $103 ($291) $2,908 $2 - $2,910
Capital expenditures $3,622 $17 $21 $3,660 - - $3,660

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

Three Months Ended
December 31,
2005 2004

Operating Cash Flow $2,155 $2,155 $1,986 $1,986
Less:
Interest, net (2) (410) (410) (420) (420)
Cash Paid for Income Taxes (178) (178) (16) (16)
Change in Operating Assets and
Liabilities,
net of acquisitions (693) (220)
Other (3) 108 165
Net Cash Provided by Operating
Activities $982 $1,495
Less: Capital Expenditures (868) (1,050)
Free Cash Flow $699 $500

Twelve Months Ended
December 31,
2005 2004

Operating Cash Flow $8,493 $8,493 $7,531 $7,531
Less:
Interest, net (2) (1,653) (1,653) (1,729) (1,729)
Cash Paid for Income Taxes (653) (653) (205) (205)
Change in Operating Assets and
Liabilities,
net of acquisitions (1,022) (331)
Other (3) (243) 664
Net Cash Provided by Operating
Activities $4,922 $5,930
Less: Capital Expenditures (3,621) (3,660)
Free Cash Flow $2,566 $1,937

Reconciliation of 2006 Outlook (Unaudited)
(dollars in millions)

CONSOLIDATED

Year Ended As
December 31, 2005 FAS123R (4) Adjusted Outlook
Reconciliation of
Operating Income to
Operating Cash Flow:
Operating Income $3,690 ($166) $3,524
Depreciation and
Amortization 4,803 - 4,803
Operating Cash Flow $8,493 ($166) $8,327 Growth
between
9 - 10%

Reconciliation of Net
Cash Provided by
Operating Activities
to Free Cash Flow:
Net Cash provided
by Operating Activities $4,922
Capital Expenditures (3,621)
Cash Paid for Intangible
Assets (281)
Payments related
to AT&T Broadband
litigation 220
Income Tax Payments
related to AT&T
Broadband 557
Tax Payments on
Investment
Sales 431
Less: Tax Benefit (146)
Non-Operating Items,
net of tax 1,062
Free Cash Flow * $2,082 Conversion of between 25% to 30%
of Operating Cash Flow

CABLE
Year Ended As
December 31, 2005 FAS123R (4) Adjusted Outlook

Reconciliation of Operating
Income to Operating
Cash Flow:
Operating Income $3,860 ($117) $3,743
Depreciation and Amortization 4,598 - 4,598
Operating Cash Flow $8,458 ($117) $8,341 Growth
between
10 - 11%

Reconciliation of Net Cash
Provided by Operating
Activities to Free Cash Flow:
Net Cash provided by
Operating Activities
Capital Expenditures
Cash Paid for Intangible Assets
Payments related to AT&T
Broadband litigation
Income Tax Payments related
to AT&T Broadband
Tax Payments on Investment
Sales
Less: Tax Benefit
Non-Operating Items, net of tax
Free Cash Flow *

* Free Cash Flow Definition Beginning in 2006 (see table 7)

(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 twelve months ending December 31, 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.

(4) The impact of Operating Cash Flow for 2005, under the provisions of
SFAS No. 123 (predecessor to SFAS No. 123R), is an incremental expense
of approximately $166 million, including $117 million at Comcast
Cable.

COMCAST CORPORATION
TABLE 7-B
Reconciliation of Net Income to Adjusted Net Income (Unaudited)
(dollars in millions, except per share data)

Three Months Ended Twelve Months Ended
December 31, December 31,
2005 2004 2005 2004
$ EPS $ EPS $ EPS $ EPS
Net Income $133 $0.06 $423 $0.19 $928 $0.42 $970 $0.43

Adjustments:
Investment income (53) (241) (89) (472)
Other income (expense) (5) (312) 56 (394)
Tax effect of
adjustments (at 40%)
and refinement of
effective tax rate 111 221 13 346

Adjusted Net Income(1) $186 $0.09 $91 $0.04 $908 $0.41 $450 $0.20

(1) Adjusted Net Income excludes Investment Income and Other Income (as
presented in our Consolidated Statement of Operations), net of a 40%
income tax rate and excludes in the fourth quarter of 2005 a refinement to
our effective tax rate.

Reconciliation of 2005 Content Segment (Unaudited)
(dollars in millions)

Three Months Ended
December 31,
2005 2004 Growth %
Content Operating Cash Flow $35 $57 (37.9%)
NHL impact (22) - NM
Content excluding NHL $57 $57 1.2%

Twelve Months Ended
December 31,
2005 2004 Growth %
Content Operating Cash Flow $283 $265 7.0%
NHL impact (22) - NM
Content excluding NHL $305 $265 15.3%

Reconciliation of Operating Cash Flow excluding Hurricane Impact (Unaudited)

(dollars in millions)

Three Months Ended
December 31,
2005 2004 Growth %
Cable Operating Cash Flow $2,172 $1,974 10.1%
Hurricane impact 48 9 NM
Cable excluding hurricane
impact $2,220 $1,983 11.9%
Content 35 57 (37.9%)
Other (53) (44) 18.1%
Total Comcast excluding
hurricane impact $2,202 $1,996 10.3%

Twelve Months Ended
December 31,
2005 2004 Growth %
Cable Operating Cash Flow $8,458 $7,473 13.2%
Hurricane impact 60 20 NM
Cable excluding hurricane
impact $8,518 $7,493 13.7%
Content 283 265 7.0%
Other (249) (204) (21.7%)
Total Comcast excluding
hurricane impact $8,552 $7,554 13.2%

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

December 31,
2005 2004
Current portion of long-term debt $1,689 $3,499
Long-term debt 21,682 20,093
Total Debt $23,371 $23,592
Exchangeable Debt 46 1,699
Debt excluding exchangeables $23,325 $21,893

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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