Comcast 2012 Annual Report Download - page 59

Table of Contents
Broadcast Television Segment Actual and Pro Forma Results of Operations
Broadcast Television Segment – Revenue
Advertising
Advertising revenue is generated from the sale of advertising time on our broadcast networks, owned local television stations and
related digital media properties. Our advertising revenue is generally based on audience ratings, the value of our viewer
demographics to advertisers, and the number of advertising units we can place in our broadcast networks’
and owned local television
stations’
programming schedules. Advertising revenue is affected by the strength of the national and local advertising markets,
general economic conditions and the success of our programming.
Advertising revenue increased in 2012 primarily due to $1.2 billion of advertising revenue associated with our broadcasts of the 2012
London Olympics and the 2012 Super Bowl. Excluding the impact of these events, advertising revenue increased 9% in 2012
primarily due to an increase in the price and volume of advertising units sold, which included the impact of higher political
advertising. Pro forma combined advertising revenue decreased in 2011 primarily due to $601 million of advertising revenue
recognized in 2010 related to the 2010 Vancouver Olympics. Excluding the impact of the 2010 Vancouver Olympics, pro forma
combined advertising revenue increased slightly in 2011 primarily due to an increase in the price of advertising units sold,
substantially offset by the decline in audience ratings in our primetime schedule.
Content Licensing
Content licensing revenue is generated from the licensing of our owned programming in the United States and internationally,
including to cable and broadcast networks and digital distributors, such as Netflix. The
2012
2011
2010
Actual
Actual Pro Forma
Pro Forma
Combined Pro Forma
(in millions)
Year Ended
December 31
For the Period
January 29
through
December 31
For the Period
January 1
through
January 28
Year Ended
December 31
Year Ended
December 31
% Change
2011 to 2012
% Change
2010 to 2011
Revenue
Advertising
$
5,842
$
3,941
$315
$ 4,256
$ 4,813
37.2
%
(11.6
)%
Content licensing
1,474
1,509
111
1,620
1,315
(9.1
)
23.2
Other
838
485
38
523
760
60.4
(31.2
)
Total revenue
8,154
5,935
464
6,399
6,888
27.4
(7.1
)
Operating costs and expenses
7,785
5,797
479
6,276
6,770
24.0
(7.3
)
Operating income (loss) before
depreciation and amortization
$
369
$
138
$(15) $123 $118
199.2
%
4.7
%
(a)
Actual amounts include the results of operations for the NBCUniversal acquired businesses for the period January 29, 2011 through December 31, 2011.
(b)
Pro forma amounts include the results of operations for the NBCUniversal acquired businesses for the period January 1, 2011 through January 28, 2011 and for the year
ended December 31, 2010. These amounts also include pro forma adjustments as if the NBCUniversal transaction had occurred on January 1, 2010, including the effects of
acquisition accounting and the elimination of operating costs and expenses directly related to the transaction, but do 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 amounts are not necessarily indicative of what the results
would have been had we operated the businesses since January 1, 2010.
(c)
Pro forma combined amounts represent our pro forma results of operations as if the NBCUniversal transaction had occurred on January 1, 2010 but are not necessarily
indicative of what the results would have been had we operated the businesses since January 1, 2010.
Comcast 2012 Annual Report on Form 10
-
K
56
(a) (b) (c) (b)