Comcast 2007 Annual Report Download - page 3

Part I
Item 1: Business
We are the largest cable operator in the United States and offer a
variety of entertainment and communications products and ser-
vices. As of December 31, 2007, our cable systems served approx-
imately 24.1 million video subscribers, 13.2 million high-speed
Internet subscribers and 4.6 million phone subscribers and passed
approximately 48.5 million homes in 39 states and the District of
Columbia. We were incorporated under the laws of Pennsylvania in
December 2001. Through our predecessors, we have developed,
managed and operated cable systems since 1963.
We classify our operations in two reportable segments: Cable and
Programming. Our Cable segment, which generates approximately
95% of our consolidated revenues, manages and operates our
cable systems, including video, high-speed Internet and phone
services (“cable services”), as well as our regional sports and news
networks. Our Programming segment consists primarily of our
consolidated national programming networks, including E!, The
Golf Channel, VERSUS, G4 and Style.
Our other business interests include Comcast Spectacor and
Comcast Interactive Media. Comcast Spectacor owns the Phila-
delphia Flyers, the Philadelphia 76ers and two large, multipurpose
arenas in Philadelphia and manages other facilities for sporting events,
concerts and other events. Comcast Interactive Media develops and
operates Comcast’s Internet businesses focused on entertainment,
information and communication, including Comcast.net, Fancast,
thePlatform and Fandango. Comcast Spectacor, Comcast Interactive
Media and all other consolidated businesses not included in our Ca-
ble or Programming segment are included in “Corporate and Other”
activities.
For financial and other information about our segments, refer to
Item 8, Note 15 to our consolidated financial statements included
in this Annual Report on Form 10-K.
Available Information and Web Sites
Our phone number is [phone], and our principal execu-
tive offices are located at 1500 Market Street, Philadelphia, PA
19102-2148. Beginning March 2008, our phone number will be
[phone] and our executive offices will be located at One
Comcast Center, Philadelphia, PA 19103-2838. The public may
read and copy any materials we file with the SEC at the SEC’s
Public Reference Room at 100 F Street, NE, Washington, DC
20549. The public may obtain information on the operation of the
Public Reference Room by calling the SEC at 1-800-SEC-0330.
Our Annual Reports on Form 10-K, Quarterly Reports on Form
10-Q, Current Reports on Form 8-K and any amendments to such
reports filed with or furnished to the SEC under Sections 13(a) or
15(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) are available free of charge on the SEC’s Web
site at www.sec.gov and on our Web site at www.comcast.com
as soon as reasonably practicable after such reports are electroni-
cally filed with the SEC. The information posted on our Web site is
not incorporated into our SEC filings.
General Developments of Our Businesses
During 2007, we continued to focus on our strategy of growth in
subscribers for our products and services. Our Cable business con-
tinued the deployment and marketing of our digital phone service,
high-speed Internet service and additional digital cable services,
such as video on demand, digital video recorder (“DVR”) and high-
definition television (“HDTV”). We also expanded our ownership and
management of regional sports networks and Internet businesses.
The following are the more significant developments to our busi-
nesses in 2007:
• consolidated revenue increased 23.7% to approximately $30.9
billion and consolidated operating income increased 20.8% to
approximately $5.6 billion, both driven by results in our Cable
segment
• Cable segment revenue increased 21.9% to approximately
$29.3 billion and operating income before depreciation and
amortization increased 23.3% to approximately $11.9 billion,
both driven by acquisitions, as well as growth in our digital
cable, high-speed Internet and digital phone services; during
2007, excluding subscribers obtained from acquisitions,
we added approximately 2.5 million digital cable subscribers,
approximately 1.7 million high-speed Internet subscribers and
approximately 2.5 million digital phone subscribers while the
number of basic video subscribers decreased 180,000
• an increase in Cable segment capital expenditures of 41.2% to
approximately $6.0 billion, primarily as a result of (i) the installa-
tion of advanced set-top boxes, modems and other equipment
associated with the increase in subscribers to our digital video,
high-speed Internet and digital phone services; (ii) network
improvements to handle the growth in subscribers and to pro-
vide service improvements and enhancements; (iii) capital
expenditures related to commercial services to small and
medium-sized businesses; and (iv) integration of our newly
acquired cable systems
• acquisitions of (i) the cable system serving Houston, Texas
(approximately 700,000 video subscribers) resulting from the
dissolution of Texas and Kansas City Cable Partners
(the “Houston transaction”), in January 2007 and (ii) the cable
system of Patriot Media serving approximately 81,000 video
subscribers in central New Jersey, in August 2007
1Comcast 2007 Annual Report on Form 10-K