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Last Update: 13-Feb-13 07:43 ET
Comcast shares soar 8% following beat on earnings and NBC GE purchase
Comcast (CMCSA $42.20 +3.23) reported fourth quarter earnings of $0.56 per share, $0.03 better than the Capital IQ consensus of $0.53, while revenues rose 6.0% year/year to $15.94 billion versus the $15.96 bln consensus. OCF +7% to $5.3 bln. "I am really pleased to report strong results for the 4th quarter and the full year of 2012 and delighted that we are able to accelerate the acquisition of General Electric's 49% common equity interest in NBCUniversal while also having the financial strength to return capital to shareholders. To underscore our confidence, we are increasing our dividend by 20% and plan to repurchase $2 billion of our stock this year. Our businesses have real momentum and we continue to benefit from our focus on operational excellence and to leverage all of our content and technology platforms to expand the entertainment choices we offer consumers. Cable's fourth quarter and full year results demonstrate consistent improvement in customer metrics and growth in every product, led by High-Speed Internet. NBCUniversal's results principally highlight the improving performance of our broadcast businesses. Our ongoing investments in programming, technology and new products are driving innovation and supporting this strong performance. Comcast to acquire General Electric’s (GE) 49% common equity ownership interest in NBCUniversal for approx. $16.7 bln (Also, NBCUniversal will purchase from co the properties used by NBCUniversal at 30 Rockefeller Plaza and CNBC's headquarters in Englewood Cliffs, NJ for approximately $1.4 billion. The acquisition accelerates company's divestiture ahead of a redemption period that would have begun in July 2014 and solidifies Comcast's position as a leading media and technology company. The transactions will be funded with $11.4 bln of cash on hand, $4.0 bln of subsidiary senior unsecured notes to be issued to GE, $2.0 bln of borrowings under Comcast and/or subsidiary bank credit facilities and $725 mln of subsidiary preferred stock to be issued to company.
