Comcast 2010 Annual Report Download - page 45

Table of Contents
Cable Segment Results of Operations
Year ended December 31 (in millions)
2010
2009
2008
% Change
2009 to 2010
% Change
2008 to 2009
Revenue
Video
$
19,525
$
19,377
$
19,162
0.8
%
1.1
%
High
-
speed Internet
8,566
7,757
7,225
10.4
%
7.4
%
Phone
3,682
3,262
2,649
12.9
%
23.1
%
Advertising
1,818
1,444
1,709
25.9
%
(15.5
)%
Other
1,178
1,079
966
9.1
%
11.7
%
Franchise and other regulatory fees
993
948
911
4.8
%
4.1
%
Total revenue
35,762
33,867
32,622
5.6
%
3.8
%
Operating expenses
14,264
13,522
12,857
5.5
%
5.2
%
Selling, general and administrative expenses
6,937
6,659
6,602
4.2
%
0.8
%
Operating income before depreciation and
amortization
$
14,561
$
13,686
$
13,163
6.4
%
4.0
%
(a)
Reclassifications have been made to the prior years’ amounts to conform to classifications used in 2010.
39
Comcast 2010 Annual Report on Form 10-
K
We believe that this measure is useful to investors because it
is one of the bases for comparing our operating performance
with that of other companies in our industries, although our
measure may not be directly comparable to similar measures
used by other companies. Because we use this metric to
measure 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 to our
consolidated financial statements (see Note 19 to our
consolidated financial statements). This measure should not
be considered a substitute for operating income (loss), net
income (loss) attributable to Comcast Corporation, net cash
provided by operating activities, or other measures of
performance or liquidity we have reported in accordance with
GAAP.
Cable Segment Overview
Our cable systems allow us to deliver video, high-speed
Internet and phone services to our residential and business
customers. The majority of our Cable segment revenue is
generated from subscriptions to these cable services.
Customers are billed
monthly based on the services and features they receive and
the type of equipment they use. Residential customers may
generally discontinue service at any time, while business
customers may only discontinue service in accordance with
the terms of their respective contracts, which typically have 1
to 3 year terms. Our revenue and operating income before
depreciation and amortization increased as a result of
continued demand for our services (including our bundled
and advanced service offerings) and the effects of recent
acquisitions, as well as other factors discussed below.
(a)
(a)
(a)
(a)