Comcast Reports Third Quarter 2006 Results

Comcast Reports Third Quarter 2006 Results

Triple Play powers highest level of quarterly RGU additions in Comcast history

Record additions fuel 15% growth in cable Operating Cash Flow and 12% growth in cable revenue

Third consecutive quarter of accelerating growth in cable revenue and cable Operating Cash Flow

PHILADELPHIA, Oct. 26 /PRNewswire-FirstCall/ -- Comcast Corporation (NASDAQ:CMCSA)(NASDAQ:CMCSK) today reported results for the quarter ended September 30, 2006. The following table highlights results for the quarter (dollars in millions, except per share amounts; units in thousands):

Consolidated 3Q06 Growth Q/Q Growth YTD
Revenue $6,432 22% 15%
Operating Cash Flow(1) $2,437 25% 16%
Operating Income(1) $1,224 46% 27%
Earnings per Share(1) $0.58 480% 181%

Cable(2)
Revenue $6,630 12% 11%
Operating Cash Flow $2,624 15% 14%
Revenue Generating Unit Additions 1,486 82% 66%

Brian L. Roberts, Chairman and CEO of Comcast Corporation, said, "We're setting new records in the third quarter, underscoring the strong momentum in our cable business. All our key metrics are accelerating, including revenue and operating cash flow, as well as RGU additions, which reached their highest quarterly level in our Company's history. Cable's outstanding results reflect both great execution and growing demand for our Triple Play offering. Our strategy of bringing value to consumers through a set of superior services is driving the business to new levels of performance. We are confident that we will broaden our relationships with our customers, strengthen our competitive advantage and accelerate our operational and financial performance as we expand the availability of Triple Play throughout our markets."

Cable Segment Results(2)

Cable results are presented as if the acquisition of Susquehanna Communications and the Adelphia/Time Warner transactions were effective on January 1, 2005. Cable results also include the results of the Houston, TX cable systems that will be received with the expected dissolution of the Texas/Kansas City cable partnership as if the transaction was effective on January 1, 2005. (See note 2 for additional details).

Revenue increased 12% to $6.6 billion in the third quarter of 2006 as demand for our video, voice and high-speed Internet services accelerated. The rollout of our Triple Play offering contributed to the record-setting RGU net additions for the quarter.

Revenue generating units (RGUs)(3) increased 1.486 million in the third quarter of 2006 or 82% from prior year net additions. RGU growth was concentrated in Historical Comcast Systems(4) with 1.402 million or 94% of the net additions in those markets. Comcast ended the third quarter of 2006 with 49.2 million RGUs, an increase of 4.3 million units from one year ago.

Operating Cash Flow (as defined in Table 7) grew 15% to $2.6 billion in the third quarter of 2006 resulting in an Operating Cash Flow margin of 39.6%, an increase from the 38.5% reported in the same quarter of 2005. The margin improvement reflects strong revenue growth and our continuing success in controlling the growth of operating costs, even as we experience higher service and installation activity from record RGU additions and incorporate lower-margin operations from cable systems received in the Adelphia/Time Warner and expected Texas/Kansas City transactions.

Video
-- Added 558,000 new digital subscribers during the quarter - digital
penetration now exceeds 50%
-- Historical Comcast Systems added 24,000 basic video subscribers during
the quarter compared to a loss of 39,000 in the prior year

Video revenue increased 9% to $4.2 billion in the third quarter of 2006, reflecting growth in digital customers and increased demand for new digital features including ON DEMAND, digital video recorders (DVR) and HDTV programming, as well as higher basic cable rates and subscribers.

Basic video subscribers increased by 10,000 subscribers to 24.1 million during the third quarter of 2006 compared to a decline of 44,000 subscribers in the third quarter of 2005. The 10,000 basic video subscriber net additions include a gain of 24,000 basic video subscribers from Historical Comcast Systems, offset by a loss of 14,000 basic video subscribers in systems received in the Adelphia/Time Warner and expected Texas/Kansas City transactions.

Comcast ended the quarter with 12.1 million or 50% of video subscribers taking digital services, a 1.6 million or 16% increase from one year ago. The number of digital subscribers includes various levels of digital service. As of September 30, 2006, 52% or 6.2 million customers subscribed to Comcast digital cable, 34% or 4.1 million subscribed to digital cable with advanced services (DVR and/or HDTV) and 14% or 1.7 million customers subscribed to enhanced cable.

Growth in the number of subscribers receiving the enhanced cable service has increased steadily in 2006 as Comcast incorporates this service into our Triple Play offer. In the third quarter, Comcast added 558,000 digital customers, including 135,000 digital cable and 423,000 enhanced cable subscribers. At the same time, 315,000 digital cable customers subscribed to advanced services either by upgrading their digital service or as new customers. Comcast added more than 1.5 million digital cable customers with advanced services (DVR and/or HDTV) since the third quarter of last year.

Growth in video revenue and digital cable subscribers also reflects increasing consumer demand for new digital features including ON DEMAND, driving a pay-per-view revenue increase of 31% in the third quarter of 2006 from the same time in 2005.

High-Speed Internet
-- Added 536,000 high-speed Internet subscribers during the quarter - most
quarterly additions in two years

High-Speed Internet revenues increased 22% to $1.4 billion in the third quarter of 2006, reflecting a 1.8 million or 20% increase in subscribers from the prior year and stable average monthly revenue per subscriber. Comcast ended the third quarter of 2006 with 11.0 million high-speed Internet subscribers or 24% penetration of available homes.

Phone
-- Added 483,000 Comcast Digital Voice (CDV) customers during the quarter
-- CDV service now marketed to 31 million homes or 65% of Comcast's
footprint

Phone revenue increased 51% to $252 million reflecting a significant increase in CDV subscriber additions, reduced by a $39 million decline in circuit-switched phone revenues as Comcast continues to focus on marketing CDV. Comcast ended the third quarter of 2006 with a total of 2.1 million phone customers. Customer additions in the third quarter of 2006 include 483,000 new CDV customers offset by the loss of 102,000 circuit-switched customers.

Advertising revenue increased 10% to $395 million in the third quarter of 2006 when compared to 2005, reflecting strong growth in political advertising.

Capital expenditures of $1.25 billion in the third quarter of 2006 were 25% higher compared to the third quarter of 2005 driven by an 82% increase in RGU net additions over the same time period. In the third quarter of 2006, and consistent with historical trends, more than 75% of cable capital expenditures were variable and directly associated with new product offerings and strong consumer demand for our products.

Content Segment Results(5)

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

The Content segment reported third quarter 2006 revenue of $258 million, a 9% increase from 2005 and Operating Cash Flow of $88 million, a 22% increase from 2005, reflecting increases in network ratings, advertising revenue and distribution revenue.

Corporate and Other(5)

Corporate and Other includes Comcast Spectacor, corporate overhead and other operations, and eliminations between Comcast's businesses. In the third quarter of 2006, Comcast reported Corporate and Other revenue of $16 million and an Operating Cash Flow loss of $104 million, as compared to revenue of $21 million and an Operating Cash Flow loss of $105 million in 2005.

Consolidated Results

Consolidated results include all acquisitions as of the date of their closing. Comcast acquired Susquehanna Communications in April 2006 and completed the Adelphia/Time Warner transactions in July 2006. As part of the Adelphia/Time Warner transactions Comcast transferred cable systems serving Los Angeles, Dallas and Cleveland to Time Warner (presented as discontinued operations for all periods). Consolidated results, as of September 30, 2006, include our interest in the Texas/Kansas City cable partnership as an equity method investment.

Operating Income increased 46% to $1.2 billion in the third quarter of 2006 due to strong results at Comcast Cable, including record-setting RGU additions as described above. Similarly, consolidated operating income increased 27% to $3.4 billion for the nine months ended September 30, 2006.

Net Income increased to $1.2 billion, or $0.58 per share, in the third quarter of 2006, compared to net income of $222 million or $0.10 per share in the third quarter of 2005. In addition to strong operating results at Comcast Cable, the current quarter includes an estimated one-time gain, included in investment income, of $694 million (or $435 million net of tax) related to the Adelphia/Time Warner transactions. Also included in this quarter's results is a one-time gain of $234 million, net of tax, on discontinued operations related to the transfer of cable systems to Time Warner. Excluding these gains and reconciled in Table 7-C, Adjusted Net Income for the third quarter of 2006 would be $548 million or $0.26 per share.

Net income increased to $2.1 billion, or $1.01 per share, in the nine months ended September 30, 2006 compared to net income of $795 million, or $0.36 per share, in the prior year. Strong operating results at Comcast Cable and the gains described above contributed to the growth in net income on a year-to-date basis. Excluding these gains, and reconciled in Table 7-C, Adjusted Net Income for the nine months ended September 30, 2006 would be $1.5 billion or $0.69 per share.

Net Cash Provided by Operating Activities increased to $5.1 billion for the nine months ended September 30, 2006 from $3.9 billion in 2005 due

primarily to stronger operating results and changes in operating assets and liabilities.

Free Cash Flow (described further on Table 4) increased $812 million to $2.2 billion for the nine months ended September 30, 2006 compared to $1.4 billion in 2005, due primarily to growth in consolidated Operating Cash Flow and changes in working capital. The conversion rate of Operating Cash Flow into Free Cash Flow increased to 32% for the nine months ended September 30, 2006 from 23% in the same period of 2005.

Pro Forma Consolidated Results(6)

Pro forma consolidated results are being presented as if the following were effective on January 1, 2005 (see note 6 for additional details): the acquisition of Susquehanna Communications, the Adelphia/Time Warner transactions and the results of the cable systems serving Houston, TX to be received with the expected dissolution of the Texas/Kansas City cable partnership.

Revenue increased 12% to $6.9 billion in the third quarter of 2006 while Operating Cash Flow increased 16% to $2.6 billion in the third quarter reflecting strong growth in both the cable and content divisions.

Share Repurchase Program

Comcast repurchased $493 million or 15 million shares of its Class A Special Common Stock during the third quarter of 2006. On a year-to-date basis, Comcast repurchased $1.9 billion or 64 million shares, reducing the number of shares outstanding by 3%.

Remaining availability under the Company's stock repurchase program is $3.5 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 $6.9 billion in its common stock and related securities reducing the number of shares outstanding by over 10%. These investments include repurchasing $5.5 billion or 191 million shares of common stock and paying $1.4 billion to redeem several debt issues exchangeable into 47 million shares of common stock.

2006 Financial Outlook

Comcast reaffirms all previously issued guidance for 2006 and updates cable guidance to include the Adelphia/Time Warner transactions and the Houston system, as follows:

-- Cable revenue growth of 10-11% above 2005 pro forma cable revenue of
$23.6 billion which includes a net $2.4 billion related to
acquisitions and dispositions;
-- Cable Operating Cash Flow growth of at least 13% above 2005 pro forma
cable operating cash flow of $9.1 billion which includes a net $800
million related to acquisitions and dispositions;
-- Cable RGU net additions approximately 60% above 2005 pro forma RGUs
of 3 million net additions;
-- Cable capital expenditures of approximately $4.5 billion supporting
RGU growth in 2006 and including capital expenditures for the
Adelphia/Time Warner transactions and the Houston systems of
approximately $500 million.

Notes:

1 Operating Cash Flow percentage growth is adjusted as if stock options
had been expensed in 2005. Operating income and earnings per share
percentage growth are unadjusted. See Tables 7-A and 7-B for
reconciliation of "as adjusted" financial data.

2 Cable results are presented on a pro forma, as adjusted, basis. Pro
forma results adjust only for certain acquisitions and dispositions,
including Susquehanna Communications (April 2006), the Adelphia/Time
Warner transactions (July 2006) and the expected dissolution of the
Texas/Kansas City cable partnership. Comcast will receive, subject to
certain approvals, the cable systems serving Houston, TX with the
dissolution of the Texas/Kansas City cable partnership. Effective
August 1, 2006, our economic interest in the Texas/Kansas City cable
partnership tracks solely the performance of the Houston, TX cable
systems. Accordingly, we included the systems' results in Cable pro
forma data. Cable results are presented as if the transactions noted
above were effective on January 1, 2005. The net impact of these
transactions was to increase the number of basic cable subscribers by
2.6 million. These "As Adjusted" results are presented as if stock
options had been expensed in 2005. Please refer to Tables 7-A and 7-B
for a reconciliation of pro forma, "As Adjusted" financial data.

3 Represents the sum of basic and digital video, high-speed Internet and
net phone subscribers, excluding additional outlets. Subscriptions to
DVR and/or HDTV services by existing Comcast Digital customers do not
result in additional RGUs.

4 Historical Cable Systems include those systems owned by Comcast prior
to the Adelphia/Time Warner transactions and the expected dissolution
of the Texas/Kansas City cable partnership.

5 Operating Cash Flow adjusted as if stock options had been expensed in
2005.

6 Pro forma consolidated results are presented on a pro forma, as
adjusted, basis as described in note 2.

Conference Call Information

Comcast Corporation will host a conference call with the financial community today, October 26, 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 Thursday, October 26, 2006. To participate via telephone, please dial (800) 263-8495 with the conference ID number 7359179. A telephone replay will begin immediately following the call and will be available until Friday, October 27, 2006 at midnight Eastern Time (ET). To access the rebroadcast, please dial (800) 642-1687 and enter passcode number 7359179. To automatically receive Comcast financial news by email, please visit http://www.cmcsa.com/ or http://www.cmcsk.com/ and subscribe to email alerts.

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 (SEC) 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 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.

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 24.1 million cable customers, 11.0 million high-speed Internet customers, and 2.1 million voice customers, Comcast is principally involved in the development, management and operation of broadband cable networks and in the delivery of programming content.

Comcast's content networks and investments include E! Entertainment Television, Style Network, The Golf Channel, VERSUS (formerly OLN), G4, AZN Television, PBS KIDS Sprout, TV One and four regional Comcast SportsNets. Comcast 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 CORPORATION
TABLE 1
Condensed Consolidated Statement of Operations
(Unaudited)

Three Months Nine Months
(dollars in millions, except per Ended Ended
share data) September 30, September 30,
2006 2005 2006 2005
Revenues $6,432 $5,284 $17,935 $15,659

Operating expenses 2,300 1,894 6,559 5,570
Selling, general and
administrative expenses 1,695 1,394 4,528 4,057
3,995 3,288 11,087 9,627
Operating cash flow 2,437 1,996 6,848 6,032

Depreciation expense 963 863 2,748 2,525
Amortization expense 250 292 699 835
1,213 1,155 3,447 3,360
Operating income 1,224 841 3,401 2,672

Other Income (Expense)
Interest expense (530) (422) (1,502) (1,333)
Investment income (loss), net 857 (104) 935 36
Equity in net (losses) income
of affiliates (65) (18) (86) (19)
Other income (expense) 96 19 194 (58)
358 (525) (459) (1,374)
Income before income taxes and
minority interest 1,582 316 2,942 1,298

Income tax expense (610) (129) (1,126) (570)

Income before minority interest 972 187 1,816 728

Minority interest (3) 11 (10) (7)

Net income from continuing operations 969 198 1,806 721

Income from discontinued operations,
net of tax 14 24 103 74
Gain on discontinued operations, net
of tax 234 - 234 -

Net income $1,217 $222 $2,143 $795

Basic and diluted earnings per
common share

Income from continuing
operations per common share $0.46 $0.09 $0.85 $0.33

Income from discontinued
operations per common share 0.01 0.01 0.05 0.03

Gain on discontinued operations
per common share 0.11 - 0.11 -

Net income per common share $0.58 $0.10 $1.01 $0.36

Basic weighted-average number of
common shares 2,096 2,196 2,114 2,206

Diluted weighted-average number of
common shares 2,109 2,209 2,124 2,219

COMCAST CORPORATION
TABLE 2
Condensed Consolidated Balance Sheet
(Unaudited)

(dollars in millions) September 30, December 31,
2006 2005
ASSETS

Current Assets
Cash and cash equivalents $2,774 $693
Investments 656 148
Accounts receivable, net 1,228 1,008
Other current assets 823 685
Current assets of
discontinued operations - 60
Total current assets 5,481 2,594

Investments 7,245 12,675

Property and equipment, net 20,671 17,704

Franchise rights 56,072 48,804

Goodwill 13,515 13,498

Other intangible assets, net 4,457 3,118

Other noncurrent assets, net 531 635

Noncurrent assets of
discontinued operations, net - 4,118

$107,972 $103,146

LIABILITIES AND STOCKHOLDERS'
EQUITY

Current Liabilities
Accounts payable and
accrued expenses
related to trade creditors $2,351 $1,985
Accrued expenses and
other current liabilities 2,867 2,481
Deferred income taxes 185 2
Current portion of long-term debt 773 1,689
Current liabilities of
discontinued operations - 112
Total current liabilities 6,176 6,269

Long-term debt, less
current portion 26,446 21,682

Deferred income taxes 27,499 27,370

Other noncurrent liabilities 6,453 6,921

Minority interest 676 657

Noncurrent liabilities of
discontinued operations - 28

Stockholders' equity 40,722 40,219
$107,972 $103,146

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

Nine Months Ended
(dollars in millions) September 30,
2006 2005

OPERATING ACTIVITIES
Net cash provided by operating
activities $5,132 $3,940

FINANCING ACTIVITIES
Proceeds from borrowings 5,970 2,333
Retirements and repayments of
debt (2,222) (1,942)
Repurchases of common stock (1,882) (1,291)
Issuances of common stock 133 76
Other 7 27

Net cash provided by (used in)
financing activities 2,006 (797)

INVESTING ACTIVITIES
Capital expenditures (3,051) (2,753)
Cash paid for intangible
assets (227) (204)
Acquisitions, net of cash
acquired (3,839) (196)
Proceeds from sales and
restructuring of investments 2,519 626
Purchases of investments (471) (310)
Proceeds from sales
(purchases) of short-term
investments, net 15 (66)
Other investing activities (3) (113)

Net cash used in investing
activities (5,057) (3,016)

INCREASE IN CASH AND CASH EQUIVALENTS 2,081 127

CASH AND CASH EQUIVALENTS,
beginning of period 693 452

CASH AND CASH EQUIVALENTS, end
of period $2,774 $579

TABLE 4
Calculation of Free Cash Flow (Unaudited)(1)

Nine Months Ended
(dollars in millions) September 30,
2006 2005
Net Cash Provided by Operating
Activities $5,132 $3,940
Capital Expenditures (3,051) (2,753)
Cash paid for Intangible
Assets (227) (204)
Non-operating items, net of
tax 344 403
Free Cash Flow $2,198 $1,386

(1) See Non-GAAP and Other Financial Measures in Table 7 for the
definition of Free Cash Flow.

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

(dollars in millions) Corporate
Content and
Cable (2) Other Total
Three Months Ended September 30, 2006
Revenues $6,630 $258 $16 $6,904
Operating Cash Flow $2,624 $88 ($104) $2,608
Operating Income (Loss) $1,420 $46 ($121) $1,345
Operating Cash Flow Margin 39.6% 33.8% NM 37.8%
Capital Expenditures (3) $1,247 $5 - $1,252

Three Months Ended September 30, 2005,
as adjusted (4)
Revenues $5,919 $237 $21 $6,177
Operating Cash Flow $2,279 $71 ($105) $2,245
Operating Income (Loss) $969 $33 ($116) $886
Operating Cash Flow Margin 38.5% 30.1% NM 36.3%
Capital Expenditures (3) $1,000 $4 $7 $1,011

Nine Months Ended September 30, 2006
Revenues $19,445 $770 $113 $20,328
Operating Cash Flow $7,774 $198 ($252) $7,720
Operating Income (Loss) $4,094 $74 ($309) $3,859
Operating Cash Flow Margin 40.0% 25.7% NM 38.0%
Capital Expenditures (3) $3,259 $18 $15 $3,292

Nine Months Ended September 30, 2005,
as adjusted (4)
Revenues $17,527 $684 $98 $18,309
Operating Cash Flow $6,796 $240 ($235) $6,801
Operating Income (Loss) $3,004 $128 ($272) $2,860
Operating Cash Flow Margin 38.8% 35.1% NM 37.1%
Capital Expenditures (3) $3,063 $11 $24 $3,098

(1) See Non-GAAP and Other Financial Measures in Table 7. Historical
financial data by business segment, as required under generally
accepted accounting principles (GAAP), 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) Content includes our national networks E! Entertainment Television
and Style Network (E! Networks), The Golf Channel, VERSUS (formerly
OLN), G4 and AZN Television.

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

YTD YTD
3Q06 3Q05 3Q06 3Q05
New Service Offerings
Customer Premise Equipment
(CPE) $710 $528 $1,770 $1,568
Scalable Infrastructure 246 210 587 667
956 738 2,357 2,235
Recurring Capital Projects
Line Extensions 79 83 258 229
Support Capital 135 95 384 290
214 178 642 519

Upgrades 77 84 260 309
Total $1,247 $1,000 $3,259 $3,063

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.

(4) Adjusted as if stock options had been expensed in 2005. See Tables
7-A and 7-B for Reconciliation of "As Adjusted" Financial Data.

COMCAST CORPORATION
TABLE 6
Pro Forma Data - Cable Segment Components
(Unaudited)(1)(2)

Three Months Nine Months
(dollars in millions, except per Ended Ended
subscriber and per unit data) September 30, September 30,
2006 2005 2006 2005
Revenues:
Video (3) $4,166 $3,841 $12,385 $11,521
High-Speed Internet 1,389 1,138 3,997 3,262
Phone 252 166 653 488
Advertising 395 359 1,150 1,065
Other (4) 233 230 682 646
Franchise Fees 195 185 578 545
Total Revenues $6,630 $5,919 $19,445 $17,527

Operating Cash Flow (5) $2,624 $2,279 $7,774 $6,796
Operating Income (5) $1,420 $969 $4,094 $3,004
Operating Cash Flow Margin (5) 39.6% 38.5% 40.0% 38.8%
Capital Expenditures $1,247 $1,000 $3,259 $3,063
Annualized Capital Expenditures per
Basic Subscriber $207 $166 $181 $170
Annualized Capital Expenditures per
Revenue Generating Unit $101 $89 $88 $91

3Q06 3Q05 2Q06
Video
Homes Passed (000's) 47,200 46,400 47,100
Basic Subscribers (000's) 24,051 24,053 24,041
Basic Penetration 50.9% 51.9% 51.1%
Quarterly Net
Basic Subscriber
Additions (000's) 10 (44) (91)

Digital Subscribers (000's) 12,053 10,439 11,495
Digital Penetration 50.1% 43.4% 47.8%
Quarterly Net Digital
Subscriber Additions (000's) 558 315 337
Digital Set-Top Boxes 18,510 15,701 17,704

Monthly Average Video Revenue
per Basic Subscriber $57.75 $53.18 $57.87
Monthly Average Total Revenue
per Basic Subscriber $91.89 $81.94 $90.94

High-Speed Internet
"Available" Homes (000's) 46,731 45,577 46,390
Subscribers (000's) 11,000 9,184 10,463
Penetration 23.5% 20.1% 22.6%
Quarterly Net Subscriber
Additions (000's) 536 507 333
Monthly Average Revenue per
Subscriber $43.14 $42.45 $43.35

Phone
Comcast Digital Voice
"Available" Homes (000's) 30,800 9,507 28,339
Subscribers (000's) 1,348 159 864
Penetration 4.4% 1.7% 3.0%
Quarterly Net Subscriber
Additions (000's) 483 72 326

Circuit Switched Phone
"Available" Homes (000's) 8,858 8,455 8,854
Subscribers (000's) 740 1,042 842
Penetration 8.4% 12.3% 9.5%
Quarterly Net Subscriber
Additions (000's) (102) (35) (76)

Monthly Average Total Phone
Revenue per Subscriber $45.09 $46.94 $45.35

Total Revenue Generating Units
(000's) (6) 49,190 44,876 47,705
Quarterly Net Additions 1,486 816 830

(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 data includes the results of Susquehanna
Communications acquired on April 30, 2006, cable systems
acquired and sold in the Adelphia/Time Warner transactions on July
31, 2006, and cable systems serving Houston, Texas included as a
result of the expected dissolution of our cable partnership with
Time Warner, which was initiated in July 2006. The net impact of
these transactions was to increase the number of basic cable
subscribers by 2.6 million.

Pro forma subscriber data also includes 13,000 subscribers acquired
in various small acquisitions during 2005. The impact of these
acquisitions on our segment operating results was not material.

(3) Video revenues consist of our basic, expanded basic, digital,
premium, pay-per-view and equipment 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) Adjusted as if stock options had been expensed in 2005.

(6) Represents the sum of basic and digital video, high-speed Internet
and net 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 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, excluding impairment charges related to fixed and intangible assets and gains or losses on 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.

Beginning in 2006, we changed our definition of Free Cash Flow, which is a non-GAAP financial measure, 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). We believe that Free Cash Flow is also useful to investors as it is one of the bases for comparing our performance with other companies in our industries, although our measure of Free Cash Flow may not be comparable to similar measures used by other companies.

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.

In certain circumstances we also present data, as adjusted, in order to enhance comparability between periods. In connection with the adoption of FAS 123R, we have adjusted 2005 data as if stock options had been expensed.

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. 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.

We provide reconciliations of Consolidated Operating Cash Flow in Table 1, Free Cash Flow in Table 4, Pro Forma and "As Adjusted" in Tables 7-A and 7-B, and Adjusted Net Income in Table 7-C.

COMCAST CORPORATION
TABLE 7-A
Reconciliation of Pro Forma(1), "As Adjusted" Financial Data by Business
Segment
(Unaudited)

(dollars in millions) Corporate, Other and
Eliminations
Cable(2) Content (2)(6) Total
Three Months Ended September 30, 2006
Revenue $6,312 $258 ($138) $6,432

Operating Expenses (excluding
depreciation and amortization) 3,805 170 20 3,995
Operating Cash Flow $2,507 $88 ($158) $2,437
Depreciation and Amortization 1,157 42 14 1,213
Operating Income (Loss) $1,350 $46 ($172) $1,224

Capital Expenditures $1,206 $5 ($14) $1,197

Three Months Ended September 30, 2005
Revenue $5,026 $237 $21 $5,284
Segment reclassifications (5) 2 - (2) -
Revenue $5,028 $237 $19 $5,284

Operating Expenses (excluding
depreciation and amortization) 3,012 163 113 3,288
Segment reclassifications (5) (5) 2 3 -
Stock option adjustment (6) 30 1 (31) -
Operating Cash Flow $1,991 $71 ($66) $1,996
Depreciation and Amortization 1,107 38 10 1,155
Operating Income (Loss) $884 $33 ($76) $841

Capital Expenditures $849 $4 $58 $911

Cable

(dollars in millions) Pro Forma Cable
Adjustments(1)(3) Pro Forma
Three Months Ended September 30, 2006
Revenue $318 $6,630

Operating Expenses (excluding
depreciation and amortization) 201 4,006
Operating Cash Flow $117 $2,624
Depreciation and Amortization 47 1,204
Operating Income (Loss) $70 $1,420

Capital Expenditures $41 $1,247

Three Months Ended September 30, 2005
Revenue $891 $5,917
Segment reclassifications (5) - 2
Revenue $891 $5,919

Operating Expenses (excluding
depreciation and amortization) 603 3,615
Segment reclassifications (5) - (5)
Stock option adjustment (6) - 30
Operating Cash Flow $288 $2,279
Depreciation and Amortization 203 1,310
Operating Income (Loss) $85 $969

Capital Expenditures $151 $1,000

Total

(dollars in millions) Pro Forma Total
Adjustments(1)(4) Pro Forma
Three Months Ended September 30, 2006
Revenue $472 $6,904

Operating Expenses (excluding
depreciation and amortization) 301 4,296
Operating Cash Flow $171 $2,608
Depreciation and Amortization 50 1,263
Operating Income (Loss) $121 $1,345

Capital Expenditures $55 $1,252

Three Months Ended September 30, 2005
Revenue $893 $6,177
Segment reclassifications (5) - -
Revenue $893 $6,177

Operating Expenses (excluding
depreciation and amortization) 604 3,892
Segment reclassifications (5) - -
Stock option adjustment (6) - -
Operating Cash Flow $289 $2,285
Depreciation and Amortization 204 1,359
Operating Income (Loss) $85 $926

Capital Expenditures $100 $1,011

Reconciliation of Total Pro Forma(1), "As Adjusted" Financial Data

Three Months Ended
September 30,

2005 2006
(dollars in millions) Total Total Pro Forma, Total
Pro Forma Adjustment(6) As Adjusted Pro
Forma
Revenue $6,177 $ - $6,177 $6,904

Operating Expenses
(excluding depreciation
and amortization) 3,892 40 3,932 4,296
Operating Cash Flow $2,285 ($40) $2,245 $2,608
Depreciation and Amortization 1,359 - 1,359 1,263
Operating Income (Loss) $926 ($40) $886 $1,345
Operating Cash Flow Margin 37.0% NM 36.3% 37.8%

(dollars in millions) % Growth
As Adjusted % Growth
Revenue 12% 12%

Operating Expenses (excluding
depreciation and amortization)
Operating Cash Flow 16% 14%
Depreciation and Amortization
Operating Income (Loss) 52% 45%
Operating Cash Flow Margin

Reconciliation of Total "As Adjusted" Financial Data

Three Months Ended
September 30,

(dollars in millions, 2005 2006
except per share data) Historical
Total Adjustment(6) As Adjusted Total
Revenue $5,284 $ - $5,284 $6,432

Operating Expenses (excluding
depreciation and
amortization) 3,288 40 3,328 3,995
Operating Cash Flow $1,996 ($40) $1,956 $2,437
Depreciation and Amortization 1,155 - 1,155 1,213
Operating Income (Loss) $841 ($40) $801 $1,224
Operating Cash Flow Margin 37.8% NM 37.0% 37.9%
Earnings Per Share $0.10 ($0.01) $0.09 $0.58

(dollars in millions,
except per share data) % Growth
As Adjusted % Growth
Revenue 22% 22%

Operating Expenses (excluding
depreciation and amortization)
Operating Cash Flow 25% 22%
Depreciation and Amortization
Operating Income (Loss) 53% 46%
Operating Cash Flow Margin
Earnings Per Share 544% 480%

(1) Pro forma data is adjusted only for timing of 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. Pro Forma results are
presented as if the acquisitions and dispositions were effective on
January 1, 2005.

(2) Beginning on August 1, 2006, the cable segment includes the operating
results of the cable systems serving Houston, TX as a result of the
expected dissolution of our cable partnership with Time Warner. This
adjustment is reversed in the Corporate, Other and Eliminations
column to reconcile to our consolidated amounts.

(3) Cable Pro Forma adjustments include cable systems serving Houston, TX
prior to August 1, 2006.

(4) Total Pro Forma adjustments include cable systems serving Houston, TX
for all periods.

(5) To be consistent with our management reporting, reclassifications
were made to technology development ventures, programming
headquarters and other.

(6) To be consistent with our management reporting, the 2005
segment amounts have been adjusted as if stock options had been
expensed as of January 1, 2005. For the three months ended September
30, 2005, the adjustments reducing operating income before
depreciation and amortization by segment were $30 million for Cable,
$1 million for Content and $9 million for Corporate and Other. For
the three months ended September 30, 2005, the total adjustment of
$40 million is reversed in the Corporate, Other and Eliminations
column to reconcile to our consolidated 2005 amounts.

COMCAST CORPORATION
TABLE 7-B
Reconciliation of Pro Forma(1), "As Adjusted" Financial Data by Business
Segment
(Unaudited)

(dollars in millions) Corporate, Other and
Eliminations
Cable(2) Content (2)(6) Total
Nine Months Ended September 30, 2006
Revenue $17,205 $770 ($40) $17,935

Operating Expenses (excluding
depreciation and amortization) 10,250 572 265 11,087
Operating Cash Flow $6,955 $198 ($305) $6,848
Depreciation and Amortization 3,269 124 54 3,447
Operating Income (Loss) $3,686 $74 ($359) $3,401

Capital Expenditures $2,946 $18 $87 $3,051

Nine Months Ended September 30, 2005
Revenue $14,870 $684 $105 $15,659
Segment reclassifications (5) 7 - (7) -
Revenue $14,877 $684 $98 $15,659

Operating Expenses (excluding
depreciation and amortization) 8,890 436 301 9,627
Segment reclassifications (5) (9) 5 4 -
Stock option adjustment (6) 86 3 (89) -
Operating Cash Flow $5,910 $240 ($118) $6,032
Depreciation and Amortization 3,212 112 36 3,360
Operating Income (Loss) $2,698 $128 ($154) $2,672

Capital Expenditures $2,594 $11 $148 $2,753

Cable

(dollars in millions) Pro Forma Cable
Adjustments(1)(3) Pro Forma
Nine Months Ended September 30, 2006
Revenue $2,240 $19,445

Operating Expenses (excluding
depreciation and amortization) 1,421 11,671
Operating Cash Flow $819 $7,774
Depreciation and Amortization 411 3,680
Operating Income (Loss) $408 $4,094

Capital Expenditures $313 $3,259

Nine Months Ended September 30, 2005
Revenue $2,650 $17,520
Segment reclassifications (5) - 7
Revenue $2,650 $17,527

Operating Expenses (excluding
depreciation and amortization) 1,764 10,654
Segment reclassifications (5) - (9)
Stock option adjustment (6) - 86
Operating Cash Flow $886 $6,796
Depreciation and Amortization 580 3,792
Operating Income (Loss) $306 $3,004

Capital Expenditures $469 $3,063

Total

(dollars in millions) Pro Forma Total
Adjustments(1)(4) Pro Forma
Nine Months Ended September 30, 2006
Revenue $2,393 $20,328

Operating Expenses (excluding
depreciation and amortization) 1,521 12,608
Operating Cash Flow $872 $7,720
Depreciation and Amortization 414 3,861
Operating Income (Loss) $458 $3,859

Capital Expenditures $241 $3,292

Nine Months Ended September 30, 2005
Revenue $2,650 $18,309
Segment reclassifications (5) - -
Revenue $2,650 $18,309

Operating Expenses (excluding
depreciation and amortization) 1,763 11,390
Segment reclassifications (5) - -
Stock option adjustment (6) - -
Operating Cash Flow $887 $6,919
Depreciation and Amortization 581 3,941
Operating Income (Loss) $306 $2,978

Capital Expenditures $345 $3,098

Reconciliation of Total Pro Forma(1), "As Adjusted" Financial Data

Nine Months Ended
September 30,

2005 2006
(dollars in millions) Total Total Pro Forma, Total
Pro Forma Adjustment(6) As Adjusted Pro
Forma
Revenue $18,309 $ - $18,309 $20,328

Operating Expenses
(excluding depreciation
and amortization) 11,390 118 11,508 12,608
Operating Cash Flow $6,919 ($118) $6,801 $7,720
Depreciation and
Amortization 3,941 - 3,941 3,861
Operating Income (Loss) $2,978 ($118) $2,860 $3,859
Operating Cash Flow
Margin 37.8% NM 37.1% 38.0%

(dollars in millions) % Growth
As Adjusted % Growth
Revenue 11% 11%

Operating Expenses
(excluding depreciation
and amortization)
Operating Cash Flow 14% 12%
Depreciation and
Amortization
Operating Income (Loss) 35% 30%
Operating Cash Flow
Margin

Reconciliation of Total "As Adjusted" Financial Data

Nine Months Ended
September 30,

(dollars in millions, 2005 2006
except per share
data) Historical
Total Adjustment(6) As Adjusted Total
Revenue $15,659 $ - $15,659 $17,935

Operating Expenses
(excluding depreciation
and amortization) 9,627 118 9,745 11,087
Operating Cash Flow $6,032 ($118) $5,914 $6,848
Depreciation and
Amortization 3,360 - 3,360 3,447
Operating Income (Loss) $2,672 ($118) $2,554 $3,401
Operating Cash Flow
Margin 38.5% NM 37.8% 38.2%
Earnings Per Share $0.36 ($0.03) $0.33 $1.01

(dollars in millions,
except per share
data) % Growth
As Adjusted % Growth
Revenue 15% 15%

Operating Expenses
(excluding depreciation
and amortization)
Operating Cash Flow 16% 14%
Depreciation and
Amortization
Operating Income (Loss) 33% 27%
Operating Cash Flow
Margin
Earnings Per Share 206% 181%

(1) Pro forma data is adjusted only for timing of 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. Pro Forma results are
presented as if the acquisitions and dispositions were effective on
January 1, 2005.

(2) Beginning on August 1, 2006, the cable segment includes the operating
results of the cable systems serving Houston, TX as a result of the
expected dissolution of our cable partnership with Time Warner. This
adjustment is reversed in the Corporate, Other and Eliminations
column to reconcile to our consolidated amounts.

(3) Cable Pro Forma adjustments include cable systems serving Houston, TX
prior to August 1, 2006.

(4) Total Pro Forma adjustments include cable systems serving Houston, TX
for all periods.

(5) To be consistent with our management reporting, reclassifications
were made to technology development ventures, programming
headquarters and other.

(6) To be consistent with our management reporting, the 2005
segment amounts have been adjusted as if stock options had been
expensed as of January 1, 2005. For the nine months ended September
30, 2005, the adjustments reducing operating income before
depreciation and amortization by segment were $86 million for Cable,
$3 million for Content and $29 million for Corporate and Other. For
the nine months ended September 30, 2005, the total adjustment of
$118 million is reversed in the Corporate, Other and Eliminations
column to reconcile to our consolidated 2005 amounts.

COMCAST CORPORATION
TABLE 7-C
Reconciliation of Net Income to Adjusted Net Income
(Unaudited)

Three Months Ended
September 30,

2006 2005
(dollars in millions,
except per share data) $ EPS(1) $ EPS(1)
Net Income $1,217 $0.58 $222 $0.10

Adjustments:
Gain on discontinued
operations, net of tax 234 0.11 - -
Gain on Adelphia/Time Warner
transactions, net of tax 435 0.21 - -
Adjusted Net Income (2) $548 $0.26 $222 $0.10

Nine Months Ended
September 30,

2006 2005

$ EPS(1) $ EPS(1)
Net Income $2,143 $1.01 $795 $0.36

Adjustments:
Gain on discontinued
operations, net of tax 234 0.11 - -
Gain on Adelphia/Time Warner
transactions, net of tax 435 0.21 - -
Adjusted Net Income (2) $1,474 $0.69 $795 $0.36

(1) Based on diluted average number of common shares for the
respective periods as presented in Table 1.

(2) Adjusted Net Income excludes a one-time gain, net of tax, on
discontinued operations and a one-time gain, net of tax, related
to the Adelphia/Time Warner transactions.

First Call Analyst:
FCMN Contact:

Source: Comcast Corporation

CONTACT: Investor Contacts: Marlene S. Dooner, +1-215-981-7392, or
Daniel J. Goodwin, +1-215-981-7518; or Press Contacts: D'Arcy Rudnay,
+1-215-981-8582 or Vibha Agrawal, +1-215-981-8410, all of Comcast Corporation

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

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