Comcast Reports First Quarter 2008 Results

Comcast Reports First Quarter 2008 Results

Consolidated Revenue Increased 14%; Pro Forma Growth of 10%

Comcast High-Speed Internet and Comcast Digital Voice Additions Drive Strong Unit Growth

Consolidated Operating Cash Flow Increased 15%; Pro Forma Growth of 12%

Consolidated Operating Income Increased 23%

EPS of $0.24; Adjusted EPS of $0.19 Increased 12%

Repurchased $1.0 Billion or 53 Million of Its Common Shares; Paid $185 Million Dividend to Shareholders on April 30

PHILADELPHIA, May 1 /PRNewswire-FirstCall/ -- Comcast Corporation (NASDAQ:CMCSA)(NASDAQ:CMCSK) today reported results for the quarter ended March 31, 2008. The following table highlights financial results (dollars in millions, except per share amounts):

1st Quarter
Consolidated 2008 2007 Growth
Revenue $8,389 $7,388 14%
Operating Cash Flow $3,174 $2,763 15%
Operating Income $1,555 $1,261 23%
Net Income $732 $837 (13%)
Earnings per Share $0.24 $0.26 (8%)

Free Cash Flow $702 $442 59%

Adjusted Net Income(1) $588 $537 10%
Adjusted Earnings per Share(1) $0.19 $0.17 12%

Pro Forma Revenue(2) $8,389 $7,602 10%
Pro Forma Operating Cash Flow(2) $3,174 $2,845 12%

See notes below.

Brian L. Roberts, Chairman and CEO of Comcast Corporation, said, "Our results for the first quarter mark a solid start to 2008. We delivered healthy growth in revenues, operating cash flow, free cash flow, adjusted EPS and strong unit additions. Our performance demonstrates that our operating strategy is working in an economic and competitive environment that continues to be challenging. We are confident that our outlook for 2008 is achievable and we are on track to deliver on our goal of consistent and profitable growth that builds long term shareholder value. In addition, we invested $1 billion to repurchase nearly 2% of our shares outstanding in the first quarter of 2008, and, on April 30, we made our first payment on our recently announced quarterly dividend to shareholders."

Consolidated Results

Revenue increased 14% in the first quarter of 2008 to $8.4 billion while Operating Cash Flow (as defined in Table 7) increased 15% to $3.2 billion and Operating Income increased 23% to $1.6 billion. This growth was due to strong operating results at Comcast Cable and in our Programming segment as well as the positive impact of cable acquisitions.

On a pro forma basis(2), Consolidated Revenue increased 10% to $8.4 billion in the first quarter of 2008 while Consolidated Operating Cash Flow increased 12% to $3.2 billion.

Net Income in the first quarter of 2008 was $732 million, or $0.24 per share compared to $837 million or $0.26 per share in the prior year. Net income in 2008 and 2007 includes gains from the dissolution of cable partnerships. Excluding these one-time gains in both periods and as reconciled in Table 7-B, Adjusted Net Income for the first quarter of 2008 increased to $588 million, or $0.19 per share, compared to $537 million or $0.17 per share in the first quarter of 2007.

Net Cash Provided by Operating Activities increased to $2.3 billion for the three months ended March 31, 2008 from $2.0 billion in 2007 due primarily to strong operating results.

Free Cash Flow (described further on Table 4) totaled $702 million in the first quarter of 2008 as compared to $442 million in 2007. The increase in Free Cash Flow is due primarily to growth in consolidated Operating Cash Flow along with relatively unchanged capital expenditures at Comcast Cable totaling $1.4 billion.

Pro Forma Cable Segment Results(3)

Revenue increased 10% to $7.9 billion for the first quarter of 2008 as compared to $7.2 billion in the first quarter of 2007. The increase in first quarter revenue reflects price increases for our video services as well as solid unit growth for Comcast High-Speed Internet, Comcast Digital Voice and Comcast Digital Cable with advanced services, offset by modestly lower average revenue per unit on several products due to an increase in customers receiving service as part of a promotional offer or in a new product package.

Operating Cash Flow (as defined in Table 7) grew 9% to $3.1 billion in the first quarter of 2008 from $2.9 billion in the first quarter of 2007. Operating Cash Flow margin was 39.7%, a slight decrease from the 39.9% reported in the first quarter of 2007, reflecting an increase in marketing expenses as well as increased costs as Comcast scales its Business Class services.

Video
-- Basic video subscribers declined 57,000 or 0.2% during the first
quarter
-- Added 494,000 digital cable subscribers during the first quarter -- 65%
or 16.0 million video subscribers have digital service compared to 55%
or 13.7 million one year ago
-- 6.9 million or 43% of digital cable subscribers have advanced services
such as digital video recorders (DVR) and/or high-definition
television service (HDTV) compared to 5.2 million or 38% one year ago

Video revenue increased 5% to $4.7 billion in the first quarter of 2008 from $4.5 billion in 2007. The revenue increase reflects price increases for basic and digital video services, growth in digital video customers, and increased demand for digital features including ON DEMAND, DVR and HDTV, offset in part by an increasing number of customers in promotional offers.

Comcast added 494,000 digital cable customers in the first quarter of 2008 including 310,000 full digital cable and 184,000 digital starter subscribers. During the quarter, 450,000 digital cable customers added advanced services, like DVR and HDTV, to their digital service either by upgrading or as new customers. As of March 31, 2008, 43% or 6.9 million of our digital cable customers receive advanced services, 33% or 5.3 million receive full digital cable, and 24% or 3.8 million are digital starter subscribers.

High-Speed Internet
-- Added 492,000 high-speed Internet subscribers during the first quarter
-- penetration reached 28% or 14.1 million customers

High-speed Internet revenue increased 12% to $1.8 billion in the first quarter of 2008 from $1.6 billion in 2007. The revenue growth reflects a 1.6 million or 13% increase in subscribers from the prior year offset by a 2% decline in average monthly revenue per subscriber to $42.18. The strong subscriber and revenue growth in the first quarter of 2008 benefited from the introduction of additional promotional offers and speed tiers, including Comcast's BLAST and Performance Plus services (8Mbps or higher service) and Comcast's Economy Internet service (768Kbps service).

Phone
-- Added 639,000 Comcast Digital Voice (CDV) customers during the first
quarter - penetration reached 12% or 5.1 million customers

Phone revenue increased 65% to $587 million in the first quarter of 2008 from $356 million in 2007. Reflecting the addition of 2.6 million CDV subscribers in the last twelve months, revenue from CDV service more than doubled to $573 million in the first quarter of 2008 compared to the same period of the prior year. Circuit-switched phone revenue declined $69 million to $14 million in the first quarter of 2008. Comcast has 66,000 circuit-switched customers, and expects to wind down that business by mid-year 2008.

Advertising revenue increased 6% to $344 million in the first quarter of 2008 from $322 million in 2007, due primarily to one additional week in the broadcast advertising calendar and an increase in political advertising including revenue from the U.S. presidential primary elections. Excluding the positive impact from the extra broadcast week and political advertising, advertising revenues decreased 5% from a year ago, reflecting softness in the advertising marketplace, particularly in auto and housing-related categories.

Programming Segment Results

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

The Programming segment reported first quarter 2008 revenue of $363 million, a 20% increase from the $302 million in 2007 reflecting one additional week in the broadcast advertising calendar, higher viewership as well as higher advertising and distribution revenue. Operating Cash Flow increased to $113 million or 76%, from the $65 million in 2007 due to the strong revenue.

Corporate and Other

Corporate and Other includes corporate overhead, Comcast Spectacor, Comcast Interactive Media (CIM), and other operations and eliminations between Comcast's businesses. For the first quarter of 2008, Corporate and Other revenue increased to $110 million from $88 million in the first quarter of 2007 primarily due to the strong performance at CIM from internet advertising and search revenue and the inclusion of Fandango. The Operating Cash Flow loss for the first quarter of 2008 decreased to $81 million compared to a loss of $96 million for the same period in 2007.

Share Repurchases and Dividends

In the first quarter of 2008, Comcast repurchased 53.1 million of its common shares for $1.0 billion, reducing the number of total shares outstanding by nearly 2%. In the twelve months leading up to March 31, 2008, Comcast repurchased 5% of its shares outstanding. As of March 31, 2008, Comcast had approximately $5.9 billion of availability remaining under its share repurchase authorization, which it intends to fully utilize by the end of 2009.

Since the inception of the repurchase program in December 2003, Comcast has invested $11.5 billion in its common stock and related securities, reducing the number of shares outstanding by 16%. These investments include repurchasing $10.1 billion or 489.4 million shares of its common stock and paying $1.4 billion to redeem several debt issues exchangeable into 70.9 million shares of Comcast common stock.

On February 14, 2008, Comcast's Board of Directors declared a $0.0625 quarterly cash dividend on Comcast common stock. The quarterly dividend totaling $185 million was paid on April 30, 2008.

2008 Financial Outlook
For 2008, Comcast reaffirms the following previously issued guidance:

-- Consolidated Revenue and Operating Cash Flow growth of 8% to 10%(2)

-- Consolidated Capital Expenditures as a percent of revenue expected to
decline to approximately 18%

-- Consolidated Free Cash Flow growth of at least 20% from the $2.3
billion reported in 2007

The outlook above does not reflect the impact of any tax law changes including the U.S. Government economic stimulus package or any future sales or acquisitions of businesses or operating assets (or related tax effects).

Notes:
(1) Net income and earnings per share are adjusted for one-time gains,
net of tax, related to the dissolution of the Texas/Kansas City Cable
Partnership in 2007 and the dissolution of the Insight Midwest
Partnership in 2008. Please refer to Table 7-B for a reconciliation
of adjusted net income and earnings per share. Earnings per share
amounts are presented on a diluted basis.

(2) Consolidated pro forma results adjust only for certain acquisitions
and dispositions, including the acquisitions of Comcast SportsNet Bay
Area/Comcast SportsNet New England (June 2007), the cable system
acquired from Patriot Media (August 2007), and the dissolution of the
Insight Midwest Partnership (January 2008). Consolidated pro forma
results are presented as if the transactions noted above were
effective on January 1, 2007. The net impact of these transactions
was to increase the number of basic cable subscribers by 765,000.
Please refer to Table 7-A for a reconciliation of pro forma financial
data.

(3) Cable results are presented on a pro forma basis as described in note
2.

Conference Call Information

Comcast Corporation will host a conference call with the financial community today, May 1, 2008 at 8:30 a.m. Eastern Time (ET). The conference call will be broadcast live on Comcast's Investor Relations website at www.cmcsa.com or www.cmcsk.com.

A recording of the call will be available on the Investor Relations website starting at 12:30 p.m. ET on May 1, 2008. Those parties interested in participating via telephone should dial (800) 263-8495 with the conference ID number 39992756. A telephone replay will begin immediately following the call until Friday, May 2, 2008 at midnight ET. To access the rebroadcast, please dial (800) 642-1687 and enter passcode number 39992756. To automatically receive Comcast financial news by email, please visit www.cmcsa.com or 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 in the U.S. (GAAP). Certain of these measures are considered "non-GAAP financial measures" under the SEC regulations; those rules require the supplemental explanations and reconciliations provided in Table 7 of this release. All percentages are calculated based on actual amounts. Minor differences may exist due to rounding.

About Comcast Corporation

Comcast Corporation (NASDAQ:CMCSA)(NASDAQ:CMCSK) (http://www.comcast.com/) is the nation's leading provider of entertainment, information and communications products and services. With 24.7 million cable customers, 14.1 million high-speed Internet customers, and 5.2 million voice customers, Comcast is principally involved in the development, management and operation of broadband cable systems and in the delivery of programming content.

Comcast's content networks and investments include E! Entertainment Television, Style Network, The Golf Channel, VERSUS, G4, PBS KIDS Sprout, TV One, ten Comcast SportsNet networks and Comcast Interactive Media, which develops and operates Comcast's Internet business. 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 Ended
(in millions, except per share data) March 31,
2008 2007

Revenues $8,389 $7,388

Operating expenses 3,107 2,759
Selling, general and administrative expenses 2,108 1,866
5,215 4,625
Operating cash flow 3,174 2,763

Depreciation expense 1,390 1,225
Amortization expense 229 277
1,619 1,502
Operating income 1,555 1,261

Other income (expense)
Interest expense (621) (568)
Investment income (loss), net 79 174
Equity in net (losses) income of
affiliates, net (35) (21)
Other income (expense) 268 513
(309) 98
Income before income taxes and
minority interest 1,246 1,359

Income tax expense (508) (526)

Income before minority interest 738 833

Minority interest (6) 4

Net income $732 $837

Diluted earnings per common share $0.24 $0.26

Adjusted earnings per common share (1) $0.19 $0.17

Diluted weighted-average number of
common shares 3,017 3,161

(1) Please refer to Table 7-B for a reconciliation of adjusted net income
and earnings per share.

COMCAST CORPORATION
TABLE 2
Condensed Consolidated Balance Sheet
(Unaudited)

(in millions) March 31, December 31,
2008 2007
ASSETS

Current Assets
Cash and cash equivalents $635 $963
Investments 86 98
Accounts receivable, net 1,497 1,645
Other current assets 886 961
Total current assets 3,104 3,667

Investments 5,800 7,963

Property and equipment, net 23,949 23,624

Franchise rights 59,447 58,077

Goodwill 14,867 14,705

Other intangible assets, net 4,690 4,739

Other noncurrent assets, net 967 642

$112,824 $113,417

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
Accounts payable and accrued expenses
related to trade creditors $2,982 $3,336
Accrued expenses and other current
liabilities 3,071 3,121
Current portion of long-term debt 1,350 1,495
Total current liabilities 7,403 7,952

Long-term debt, less current portion 30,009 29,828

Deferred income taxes 27,116 26,880

Other noncurrent liabilities 7,110 7,167

Minority interest 388 250

Stockholders' equity 40,798 41,340
$112,824 $113,417

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

(in millions) Three Months Ended
March 31,
2008 2007

OPERATING ACTIVITIES
Net cash provided by operating activities $2,259 $1,965

FINANCING ACTIVITIES
Proceeds from borrowings 192 3
Retirements and repayments of debt (218) (704)
Repurchases of common stock (1,000) (500)
Issuances of common stock 10 218
Other (28) 4

Net cash provided by (used in)
financing activities (1,044) (979)

INVESTING ACTIVITIES
Capital expenditures (1,431) (1,454)
Cash paid for software and other
intangible assets (126) (118)
Acquisitions, net of cash acquired (29) (9)
Proceeds from sales of investments 49 392
Purchases of investments (26) (21)
Other 20 22

Net cash provided by (used in)
investing activities (1,543) (1,188)

Increase (decrease) in cash and cash
equivalents (328) (202)

Cash and cash equivalents, beginning of period 963 1,239

Cash and cash equivalents, end of period $635 $1,037

TABLE 4
Calculation of Free Cash Flow, and Unlevered Free Cash Flow
(Unaudited) (1)

(in millions) Three Months Ended
March 31,
2008 2007

Net Cash Provided by Operating Activities $2,259 $1,965
Capital Expenditures (1,431) (1,454)
Cash Paid for Capitalized Software (99) (88)
Cash Paid for Other Intangible Assets (27) (30)
Nonoperating and Nonrecurring items,
net of tax:
Payment of Tax on Nonoperating Items - 49
Free Cash Flow 702 442
Cash paid Interest 708 662
Unlevered Free Cash Flow $1,410 $1,104

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

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

(in millions) Corporate
and
Cable Programming(2) Other Total
Three Months Ended March 31, 2008
Revenues $7,916 $363 $110 $8,389
Operating Cash Flow $3,142 $113 ($81) $3,174
Operating Income (Loss) $1,594 $59 ($98) $1,555
Operating Cash Flow Margin 39.7% 31.2% NM 37.8%
Capital Expenditures (3) $1,355 $4 $72 $1,431

Three Months Ended March 31, 2007
Revenues $7,212 $302 $88 $7,602
Operating Cash Flow $2,876 $65 ($96) $2,845
Operating Income (Loss) $1,399 $18 ($111) $1,306
Operating Cash Flow Margin 39.9% 21.3% NM 37.4%
Capital Expenditures (3) $1,480 $4 $7 $1,491

(1) See Non-GAAP and Other Financial Measures in Table 7. Historical
financial data by business segment, in accordance with generally
accepted accounting principles in the United States (GAAP), 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) Programming includes our national networks E! Entertainment Television
and Style Network (E! Networks), The Golf Channel, VERSUS and G4.

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

1Q08 1Q07
Growth
Customer Premise Equipment (CPE) $819 $764
Scalable Infrastructure 59 103
Line Extensions 47 88
Support Capital 54 69
Upgrades (Capacity Expansion) 21 36
Business Services 51 24
1,051 1,084
Maintenance
CPE (Drop Replacements) 58 65
Scalable Infrastructure 103 160
Support Capital 42 60
Upgrades 61 96
264 381

Discretionary 40 15

Total $1,355 $1,480

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 network improvements.
Business Services includes fiber/coax extension, electronics, CPE and
costs to secure new customers.

Management evaluates capital expenditures by categorizing investments into
three groups: Growth, Maintenance and Discretionary. Growth is directly
tied to revenue generation and represents the costs required to secure new
customers, revenue units or additional bandwidth revenues. Maintenance
includes investments that allow the company to maintain its competitive
position and provide a foundation for growth. Discretionary includes
investments that lay the groundwork for future products and services, such
as our investments in interactive advertising, cross-platform product
development or switched digital video.

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

(in millions, except per subscriber Three Months Ended
and per unit data) March 31,
2008 2007
Revenues:
Video (3) $4,706 $4,491
High-speed Internet 1,750 1,569
Phone 587 356
Advertising 344 322
Other (4) 305 268
Franchise fees 224 206
Total Revenues * $7,916 $7,212

Operating Cash Flow $3,142 $2,876
Operating Income $1,594 $1,399
Operating Cash Flow Margin 39.7% 39.9%
Capital Expenditures $1,355 $1,480

* Total Revenues include revenues from Business Services of $120 million
in 1Q08 and $87 million in 1Q07.

1Q08 4Q07 1Q07
Video
Homes Passed (000's) 49,902 49,701 48,977
Basic Subscribers (000's) 24,691 24,748 25,005
Basic Penetration 49.5% 49.8% 51.1%
Quarterly Net Basic Subscriber
Additions (000's) (57) (100) 83

Digital Subscribers (000's) 16,015 15,521 13,665
Digital Penetration 64.9% 62.7% 54.6%
Quarterly Net Digital Subscriber
Additions (000's) 494 530 658
Digital Set-Top Boxes 25,856 24,957 21,121

Monthly Average Video Revenue
per Basic Subscriber $63.46 $61.54 $59.97
Monthly Average Total Revenue
per Basic Subscriber $106.74 $104.29 $96.30

High-Speed Internet
"Available" Homes (000's) 49,548 49,327 48,503
Subscribers (000's) 14,078 13,586 12,432
Penetration of "Available" Homes 28.4% 27.5% 25.6%
Quarterly Net Subscriber
Additions (000's) 492 341 586
Monthly Average Revenue per
Subscriber $42.18 $42.30 $43.08

Phone
Comcast Digital Voice
"Available" Homes (000's) 44,082 43,032 36,069
Subscribers (000's) 5,088 4,449 2,459
Penetration of "Available"
Homes 11.5% 10.3% 6.8%
Quarterly Net Subscriber
Additions (000's) 639 618 587
Monthly Average Digital Voice
Revenue per Subscriber $40.24 $40.46 $42.44

Circuit Switched Phone
"Available" Homes (000's) 5,029 5,026 8,989
Subscribers (000's) 66 176 560
Penetration of "Available"
Homes 1.3% 3.5% 6.2%
Quarterly Net Subscriber
Additions (000's) (110) (128) (93)
Monthly Average Circuit
Switched Phone Revenue per
Subscriber $40.61 $42.41 $45.28

Total Revenue Generating
Units (000's) (5) 59,939 58,480 54,120
Total Quarterly Net
Additions (000's) 1,458 1,261 1,821

(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 Comcast SportsNet Bay
Area and Comcast SportsNet New England acquired on June 30, 2007, the
cable system acquired from Patriot Media Holdings, LLC on August 31,
2007, and the cable systems resulting from the dissolution of the
Insight Midwest Partnership on January 1, 2008. Pro forma results are
presented as if the acquisitions and dispositions were effective on
January 1, 2007. The net impact of these transactions was an increase
of 765,000 basic cable subscribers.

(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) 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 do not result in additional RGUs.

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 and Unlevered Free Cash Flow are additional performance measures used as indicators of our ability to service and repay debt, make investments and return capital to investors, through stock repurchases and dividends. We also adjust certain historical data on a pro forma basis following certain 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 performance measure in 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 in the United States (GAAP), in the business segment footnote of our quarterly and annual financial statements. Therefore, we believe our measure of Operating Cash Flow for our business segments is not a "non-GAAP financial measure" as contemplated by Regulation G adopted by the Securities and Exchange Commission. Consolidated Operating Cash Flow is a non- GAAP financial measure.

Free Cash Flow, which is a non-GAAP financial measure, is defined as "Net Cash Provided by Operating Activities" (as stated in our Consolidated Statement of Cash Flows) reduced by capital expenditures and cash paid for intangible assets; and adjusted for any payments related to certain nonoperating items, net of estimated tax benefits (such as income taxes on investment sales, and nonrecurring payments related to income tax and litigation contingencies of acquired companies). Unlevered Free Cash Flow is Free Cash Flow before cash paid interest. We believe that Free Cash Flow and Unlevered Free Cash Flow are also useful to investors as the basis for comparing our performance and coverage ratios with other companies in our industries, although our measure of Free Cash Flow and Unlevered 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 certain 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 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. We believe our pro forma data is not a non-GAAP financial measure as contemplated by Regulation G.

In certain circumstances we also present "adjusted" data, to exclude certain gains, losses or other charges, net of tax (such as from the sales of investments or dispositions of businesses). This "adjusted" data is a non-GAAP measure. We believe, among other things, that the "adjusted" data may help investors evaluate our ongoing operations and can assist in making meaningful period-over-period comparisons.

Operating Cash Flow, Free Cash Flow and Unlevered 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 and Unlevered Free Cash Flow in Table 4, Pro Forma in Table 7-A and Adjusted Data in Table 7-B.

COMCAST CORPORATION
TABLE 7-A
Reconciliation of GAAP to Pro Forma(1) Financial Data by Business Segment
(Unaudited)

GAAP

(in millions) Corporate,
Other and
Cable Programming Eliminations Total
Three Months Ended March 31, 2008
Revenue $7,916 $363 $110 $8,389

Operating Expenses (excluding
depreciation and amortization) 4,774 250 191 5,215
Operating Cash Flow $3,142 $113 ($81) $3,174
Depreciation and Amortization 1,548 54 17 1,619
Operating Income (Loss) $1,594 $59 ($98) $1,555

Capital Expenditures $1,355 $4 $72 $1,431

Three Months Ended March 31, 2007
Revenue $6,998 $302 $88 $7,388

Operating Expenses (excluding
depreciation and amortization) 4,205 237 183 4,625
Operating Cash Flow $2,793 $65 ($95) $2,763
Depreciation and Amortization 1,440 47 15 1,502
Operating Income (Loss) $1,353 $18 ($110) $1,261

Capital Expenditures $1,443 $4 $7 $1,454

Cable Total

(in millions) Pro Forma Pro Forma Total
Adjustments Pro Forma Adjustments Pro
(1) (2) Cable (1) (2) Forma
Three Months Ended March 31, 2008
Revenue $- $7,916 $- $8,389

Operating Expenses (excluding
depreciation and amortization) - 4,774 - 5,215
Operating Cash Flow $- $3,142 $- $3,174
Depreciation and Amortization - 1,548 - 1,619
Operating Income (Loss) $- $1,594 $- $1,555

Capital Expenditures $- $1,355 $- $1,431

Three Months Ended March 31, 2007
Revenue $214 $7,212 $214 $7,602

Operating Expenses (excluding
depreciation and amortization) 131 4,336 132 4,757
Operating Cash Flow $83 $2,876 $82 $2,845
Depreciation and Amortization 37 1,477 37 1,539
Operating Income (Loss) $46 $1,399 $45 $1,306

Capital Expenditures $37 $1,480 $37 $1,491

(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, 2007. Minor differences may exist due to rounding.

(2) Total Pro Forma adjustments and Cable Pro Forma adjustments for 2007
include the results of Comcast SportsNet Bay Area and Comcast
SportsNet New England, the cable system acquired from Patriot Media
Holdings, LLC and the cable systems resulting from the dissolution of
the Insight Midwest Partnership.

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

Three Months Ended
March 31, 2008 vs. 2007
2008 2007 Growth (%)
(in millions, except
per share data) $ EPS(1) $ EPS(1) $ EPS(1)

Net Income $732 $0.24 $837 $0.26 (13%) (8%)

Adjustments:
Gain related to the
dissolution of the
Texas/Kansas City Cable
Partnership, net of
tax (2) - - (300) (0.09) NM NM
Gain related to the
dissolution of the
Insight Midwest
Partnership, net of
tax (3) (144) (0.05) - - NM NM

Adjusted Net Income $588 $0.19 $537 $0.17 10% 12%

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

(2) 2007 Net Income includes a one-time gain, net of tax, related to the
dissolution of the Texas/Kansas City Cable Partnership.

(3) 2008 Net Income includes a one-time gain, net of tax, related to the
dissolution of the Insight Midwest Partnership.

First Call Analyst:
FCMN Contact:

Source: Comcast Corporation

CONTACT: Investors: Marlene S. Dooner, +1-215-286-7392, or Daniel J.
Goodwin, +1-215-286-7518, or Michael A. Kelman, +1-215-286-3035, or Press:
D'Arcy Rudnay, +1-215-286-8582, or John Demming, +1-215-286-8011, all of
Comcast Corporation

Web site:

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

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