Overview

We are a leading provider of entertainment, information and communication products and services. On January 28, 2011, we closed the NBCUniversal transaction in which we acquired control of the businesses of NBCUniversal, and on July 1, 2011, we closed the Universal Orlando transaction in which we acquired the remaining 50% equity interest in Universal Orlando that we did not already own. We report our operations as the following five reportable business segments.

Cable Communications

We are one of the nation's leading providers of video, high-speed Internet and voice services to residential and business customers. As of June 30, 2012, our cable systems served 22.1 million video customers, 18.7 million high-speed Internet customers and 9.7 million voice customers and passed more than 52 million homes and businesses in 39 states and the District of Columbia. Our Cable Communications segment generates revenue primarily from subscriptions to our cable services, which we market individually and in packages, and from the sale of advertising. During the six months ended June 30, 2012, our Cable Communications segment generated 65% of our consolidated revenue and more than 80% of our operating income (loss) before depreciation and amortization.

NBCUniversal

NBCUniversal is a leading media and entertainment company that develops, produces and distributes entertainment, news and information, sports and other content for global audiences.

Cable Networks

Our Cable Networks segment consists primarily of our national cable networks, which provide entertainment, news and information, and sports programming, our regional sports and news networks, our international cable networks, our cable television production studio, and our related digital media properties. Our Cable Networks segment generates revenue primarily from the distribution of our cable network programming to multichannel video providers, the sale of advertising and the licensing and sale of our owned programming.

Broadcast Television

Our Broadcast Television segment consists primarily of the NBC and Telemundo broadcast networks, our NBC and Telemundo owned local television stations, our broadcast television production operations, and our related digital media properties. Our Broadcast Television segment generates revenue primarily from the sale of advertising and the licensing and sale of our owned programming.

Filmed Entertainment

Our Filmed Entertainment segment consists of the operations of Universal Pictures, including Focus Features, which produces, acquires, markets and distributes filmed entertainment worldwide in various media formats for theatrical, home entertainment, television and other distribution platforms. We also develop, produce and license stage plays. Our Filmed Entertainment segment generates revenue primarily from the worldwide theatrical release of our owned and acquired films, content licensing and home entertainment.

Theme Parks

Our Theme Parks segment consists primarily of our Universal theme parks in Orlando and Hollywood. We also receive fees related to intellectual property licenses and other services from third parties that own and operate Universal Studios Japan and Universal Studios Singapore. Our Theme Parks segment generates revenue primarily from theme park attendance and per capita spending, as well as from licensing and other fees. Per capita spending includes ticket price and in-park spending on food, beverage and merchandise.

Corporate and Other

Our other business interests primarily include Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center, a large, multipurpose arena in Philadelphia. Comcast Spectacor also owns Global Spectrum, which provides venue management services, and Ovations Food Services, which provides food services for sporting events, concerts and other events.

Consolidated Operating Results



                                     Three Months Ended          Increase/            Six Months Ended           Increase/
                                          June 30                (Decrease)               June 30               (Decrease)
(in millions)                       2012           2011                             2012           2011
Revenue                           $  15,211      $  14,333               6.1 %    $  30,089      $  26,461             13.7 %
Costs and Expenses:
Operating costs and expenses         10,207          9,532               7.1         20,397         17,594             15.9
Depreciation                          1,516          1,478               2.6          3,045          2,964              2.7
Amortization                            409            385               6.5            810            741              9.3
Operating income                      3,079          2,938               4.8          5,837          5,162             13.1
Other income (expense) items,
net                                    (635 )         (557 )            14.1         (1,196 )       (1,146 )            4.4
Income before income taxes            2,444          2,381               2.6          4,641          4,016             15.6
Income tax expense                     (811 )       (1,014 )           (20.1 )       (1,561 )       (1,610 )           (3.0 )
Net income                            1,633          1,367              19.4          3,080          2,406             28.0
Net (income) loss
attributable to
noncontrolling interests               (285 )         (345 )           (17.5 )         (508 )         (441 )           15.3
Net income attributable to
Comcast Corporation               $   1,348      $   1,022              31.9 %    $   2,572      $   1,965             30.8 %

All percentages are calculated based on actual amounts. Minor differences may exist due to rounding.

Percentage changes that are considered not meaningful are denoted with NM.

The comparability of our consolidated results of operations was impacted by the NBCUniversal transaction, which closed on January 28, 2011, and the Universal Orlando transaction, which closed on July 1, 2011. NBCUniversal's and Universal Orlando's results of operations are included in our consolidated financial statements following their respective acquisition dates.

We also incurred transaction costs directly related to the NBCUniversal transaction in 2011. Incremental expenses were primarily related to legal, accounting and valuation services and investment banking fees. In addition, NBCUniversal incurred transaction-related costs associated with severance and other related compensation charges. Total transaction-related expenses incurred during the three and six months ended June 30, 2011 were $6 million and $129 million, respectively.

For a more complete discussion of the NBCUniversal and Universal Orlando transactions, refer to our consolidated financial statements included in our 2011 Annual Report on Form 10-K.

Each of our businesses is subject to seasonal and cyclical variations. Revenue and operating costs and expenses in our Broadcast Television segment are cyclical as a result of our periodic broadcasts of the Olympic Games and Super Bowl games. Because we broadcasted the 2012 Super Bowl in February 2012, during the six months ended June 30, 2012, our advertising revenue increased as a result of increased demand for advertising time and our operating costs and expenses also increased as a result of our production costs and amortization of the related rights fees. We also expect our advertising revenue and our programming and production costs to increase in the third quarter of 2012 due to our broadcast of the 2012 London Olympic Games, and we expect to pay substantially all of the related rights fees in the third quarter of 2012.

Consolidated Revenue

Our Cable Communications segment and the NBCUniversal segments accounted for substantially all of the increases in consolidated revenue for the three and six months ended June 30, 2012. The remaining changes in consolidated revenue related to our other business activities, primarily Comcast Spectacor. Revenue for our Cable Communications and NBCUniversal segments is discussed separately under the heading "Segment Operating Results."

Consolidated Operating Costs and Expenses

Our Cable Communications segment and the NBCUniversal segments accounted for substantially all of the increases in consolidated operating costs and expenses for the three and six months ended June 30, 2012. The remaining changes in consolidated operating costs and expenses related to our other business activities, primarily Comcast Spectacor. Operating costs and expenses for our Cable Communications and NBCUniversal segments are discussed separately under the heading "Segment Operating Results."

Consolidated Depreciation and Amortization

Consolidated depreciation and amortization increased for the three months ended June 30, 2012 primarily due to the impact of consolidating Universal Orlando following the close of the transaction. Consolidated depreciation and amortization increased for the six months ended June 30, 2012 primarily due to the impact of consolidating NBCUniversal and Universal Orlando following the close of each transaction.

Segment Operating Results

Our segment operating results are presented based on how we assess operating performance and internally report financial information. We use operating income
(loss) before depreciation and amortization, excluding impairment charges related to fixed and intangible assets and gains or losses from the sale of assets, if any, as the measure of profit or loss for our operating segments. This measure eliminates the significant level of noncash depreciation and amortization expense that results from the capital-intensive nature of certain of our businesses and from intangible assets recognized in business combinations. Additionally, it is unaffected by our capital structure or investment activities. We use this measure to evaluate our consolidated operating performance and the operating performance of our operating segments and to allocate resources and capital to our operating segments. It is also a significant performance measure in our annual incentive compensation programs. We believe that this measure is useful to investors because it is one of the bases for comparing our operating performance with other companies in our industries, although our measure may not be directly comparable to similar measures used by other companies. Because we use operating income (loss) before depreciation and amortization 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 GAAP, in Note 15 to our condensed consolidated financial statements. This measure should not be considered a substitute for operating income (loss), net income 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 Communications Segment-Results of Operations



                                                            Three Months Ended             Increase/
                                                                 June 30                  (Decrease)
(in millions)                                               2012           2011          $          %
Revenue
Residential:
Video                                                    $    5,079       $ 4,941      $ 138         2.8 %
High-speed Internet                                           2,380         2,186        194         8.9
Voice                                                           889           878         11         1.2
Business services                                               582           435        147        34.2
Advertising                                                     552           512         40         7.6
Other                                                           415           389         26         6.8
Total revenue                                                 9,897         9,341        556         6.0
Operating costs and expenses
Programming                                                   2,109         1,953        156         7.9
Technical labor                                                 579           568         11         1.9
Customer service                                                481           460         21         4.7
Marketing                                                       665           606         59         9.7
Other                                                         1,962         1,868         94         5.2
Total operating costs and expenses                            5,796         5,455        341         6.3
Operating income before depreciation and amortization    $    4,101       $ 3,886      $ 215         5.5 %

                                                            Six Months Ended              Increase/
                                                                June 30                  (Decrease)
(in millions)                                              2012          2011           $           %
Revenue
Residential:
Video                                                    $ 10,048      $  9,832      $   216         2.2 %
High-speed Internet                                         4,703         4,292          411         9.6
Voice                                                       1,767         1,738           29         1.6
Business services                                           1,123           829          294        35.6
Advertising                                                 1,028           967           61         6.3
Other                                                         827           767           60         7.8
Total revenue                                              19,496        18,425        1,071         5.8
Operating costs and expenses
Programming                                                 4,185         3,922          263         6.7
Technical labor                                             1,167         1,161            6         0.5
Customer service                                              975           929           46         5.0
Marketing                                                   1,295         1,170          125        10.7
Other                                                       3,818         3,608          210         5.9
Total operating costs and expenses                         11,440        10,790          650         6.0
Operating income before depreciation and amortization    $  8,056      $  7,635      $   421         5.5 %

                                Customer Metrics



                                       Total Customers                              Net Additional Customers

                                  June 30,        June 30,               Three Months Ended            Six Months Ended
(in thousands)                      2012            2011                                 June 30, 2012
Video customers                      22,118          22,513                             (176 )                      (213 )
High-speed Internet customers        18,738          17,547                              156                         594
Voice customers                       9,664           9,063                              158                         322

Customer data includes residential and business customers.

Cable Communications Segment-Revenue

Our average monthly total revenue per video customer for the three months ended June 30, 2012 increased to $149 from $138 for the three months ended June 30, 2011. Our average monthly total revenue per video customer for the six months ended June 30, 2012 increased to $146 from $136 for the six months ended June 30, 2011. The increases in average monthly total revenue per video customer were primarily due to increases in the number of residential customers receiving multiple services, rate adjustments, higher contributions from business services and declines in the total number of video customers.

Video

Our video revenue increased for the three and six months ended June 30, 2012 compared to the same periods in 2011 primarily due to rate adjustments and additional customers receiving higher levels of video service, which were partially offset by declines in the number of residential video customers. For the three and six months ended June 30, 2012, the number of video customers decreased primarily due to competitive pressures in our service areas. We expect further declines in the number of residential video customers during the remainder of 2012. As of June 30, 2012, 54% of our digital video customers subscribed to at least one of our high-definition television ("HDTV") and digital video recorder ("DVR") services.

High-Speed Internet

Our high-speed Internet revenue increased for the three and six months ended June 30, 2012 compared to the same periods in 2011 primarily due to increases in the number of residential customers, rate adjustments and additional customers receiving higher levels of service.

Voice

Our voice revenue increased slightly for the three and six months ended June 30, 2012 compared to the same periods in 2011 primarily due to increases in the number of residential customers.

Business Services

Our business services revenue increased for the three and six months ended June 30, 2012 compared to the same periods in 2011 primarily due to increases in the number of business customers.

Advertising

Our advertising revenue increased for the three and six months ended June 30, 2012 compared to the same periods in 2011 primarily due to increases in political advertising revenue and improvements in the local and regional advertising markets.

Other

Our other revenue increased for the three and six months ended June 30, 2012 compared to the same periods in 2011 primarily due to increases in franchise and other regulatory fees.

Cable Communications Segment-Operating Costs and Expenses

Programming expenses increased for the three and six months ended June 30, 2012 compared to the same periods in 2011 primarily due to increases in fees charged by programming networks and fees incurred to secure rights for additional programming options for our customers. Technical labor expenses increased slightly for the three months ended June 30, 2012 and remained flat for the six months ended June 30, 2012 compared to the same periods in 2011. Customer service expenses increased for the three and six months ended June 30, 2012 compared to the same periods in 2011 primarily due to increases in labor costs associated with higher levels of customer service activity. Marketing expenses increased for the three and six months ended June 30, 2012 compared to the same periods in 2011 primarily due to increases in the number of sales employees and media spending for residential and business services. Other operating costs and expenses increased for the three and six months ended June 30, 2012 compared to the same periods in 2011 primarily due to an increase in activity related to business services and an increase in franchise and other regulatory fees.

NBCUniversal Segments Overview

The discussion below compares the NBCUniversal segments' actual results for the three and six months ended June 30, 2012 to pro forma combined results for the three and six months ended June 30, 2011. Management believes reviewing our operating results by combining actual and pro forma results for the NBCUniversal segments for 2011 is more useful in identifying trends in, or reaching conclusions regarding, the overall operating performance of these segments for the current period. Our pro forma amounts presented in the tables below include adjustments as if the NBCUniversal and Universal Orlando transactions had occurred on January 1, 2010. Our pro forma data was also adjusted for the effects of acquisition accounting and the elimination of costs and expenses directly related to the transactions but 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 amounts are not necessarily indicative of what our results would have been had we operated the NBCUniversal contributed businesses or Universal Orlando since January 1, 2010, nor of our future results.

The operating results of the NBCUniversal segments for the three and six months ended June 30, 2012 and 2011 are presented in the table below.

                                    2012                                              2011
                                                                                                          Pro Forma
                                   Actual                     Actual                Pro Forma              Combined                    Increase/(Decrease)
                                Three Months               Three Months                                  Three Months
                                    Ended                      Ended              NBCUniversal              Ended
(in millions)                      June 30                  June 30 (a)           Businesses(b)          June 30 (c)                    $                %
Revenue
Cable Networks                  $       2,252              $       2,173        $               -       $        2,173              $      79            3.6  %
Broadcast Television                    1,540                      1,695                        -                1,695                   (155 )          (9.1 )
Filmed Entertainment                    1,231                      1,254                        -                1,254                    (23 )          (1.8 )
Theme Parks                               539                        521                        -                  521                     18             3.4
Headquarters, other and
eliminations                              (58 )                     (464 )                    368                  (96 )                   38            39.2
Total revenue                   $       5,504              $       5,179        $             368       $        5,547                    (43 )          (0.8 )%
Operating Income Before
Depreciation and
Amortization
Cable Networks                  $         788              $         846        $               -       $          846              $     (58 )          (6.8 )%
Broadcast Television                      196                        190                        -                  190                      6             2.7
Filmed Entertainment                      (83 )                       27                        -                   27                   (110 )            NM
Theme Parks                               235                        225                        -                  225                     10             4.2
Headquarters, other and
eliminations                             (154 )                     (287 )                    160                 (127 )                  (27 )         (20.3 )
Total operating income
before depreciation and
amortization                    $         982              $       1,001        $             160       $        1,161              $    (179 )         (15.4 )%




                                       2012                                     2011
                                                                                                  Pro Forma
                                      Actual                Actual             Pro Forma          Combined              Increase/(Decrease)
                                    Six Months            Six Months                             Six Months
                                      Ended                  Ended           NBCUniversal           Ended
(in millions)                        June 30              June 30 (a)        Businesses(b)         June 30               $               %
Revenue
Cable Networks                     $      4,390          $       3,805      $           388      $     4,193          $    197            4.7  %
Broadcast Television                      3,391                  2,583                  464            3,047               344            11.3
Filmed Entertainment                      2,423                  1,876                  353            2,229               194             8.7
Theme Parks                                 951                    796                  115              911                40             4.4
Headquarters, other and
eliminations                               (179 )                 (738 )                544             (194 )              15             7.7
Total revenue                      $     10,976          $       8,322      $         1,864      $    10,186          $    790            7.8  %
Operating Income Before
Depreciation and Amortization
Cable Networks                     $      1,593          $       1,511      $           152      $     1,663          $    (70 )          (4.2 )%
Broadcast Television                        186                    225                  (15 )            210               (24 )         (11.5 )
Filmed Entertainment                        (77 )                 (116 )                 (3 )           (119 )              42            35.8
Theme Parks                                 392                    322                   37              359                33             9.0
Headquarters, other and
eliminations                               (299 )                 (483 )                136             (347 )              48            13.7
Total operating income before
depreciation and amortization      $      1,795          $       1,459      $           307      $     1,766          $     29            1.6  %

(a) Actual amounts include the results of operations of the businesses we contributed to NBCUniversal for the three and six months ended June 30, 2011, as well as the results of operations for the NBCUniversal acquired businesses and Universal Orlando for the period January 29, 2011 through June 30, 2011. Headquarters, other and eliminations includes the elimination of the results of operations for Universal Orlando for the period January 29, 2011 through June 30, 2011 in order to reconcile to our condensed consolidated financial statements because Universal Orlando was recorded as an equity method investment during that period.

(c) Pro forma amounts include the results of operations for the NBCUniversal acquired businesses for the period January 1, 2011 through January 28, 2011 and Universal Orlando for the six months ended June 30, 2011 and other pro forma adjustments that include the effects of acquisition accounting.

. . .