Question

Analyze Comcast Corporation by segment

Comcast Corporation (CMCSA) is a global media and entertainment company with operations divided into five major segments:

• Cable Communications (XFINITY)
• Cable Networks (USA Network, Syfy, E!, CNBC, others)
• Broadcast Television (NBC)
• Filmed Entertainment (Universal Pictures)
• Theme Parks (Universal)

Revenue, operating income, and depreciation and amortization information for these segments for a recent year are as follows (in millions):

Segment		Revenue		Operating Income		Depreciation and Amortization
Cable Communications		$50,048		$12,439		$7,670
Cable Networks		10,464		2,964		745
Broadcast Television		10,147		1,195		125
Filmed Entertainment		6,360		650		47
Theme Parks		4,946		1,678		512
Total		$81,965		$18,926		$9,099

a. Prepare a vertical analysis of the segment revenues to total revenues. Round to nearest whole percent. Enter amounts in millions.

Segment

Revenue

Revenues as a Percent of Total Revenues

1. Segment		Revenue		Revenues as a Percent of Total Revenues
   Cable Communications		$		%
   Cable Networks
   Broadcast Television
   Filmed Entertainment
   Theme Parks
   Total		$		%

   b. Which segment contributes most to total revenues?

   c. Compute (1) EBITDA and (2) EBITDA as a percent of revenue for each segment. Round to nearest whole percent.

   Segment		Revenue		Operating Income		Depreciation and Amortization		EBITDA		EBITDA as a Percent of Revenue
   Cable Communications		$50,048		$12,439		$7,670		$		%
   Cable Networks		10,464		2,964		745
   Broadcast Television		10,147		1,195		125
   Filmed Entertainment		6,360		650		47
   Theme Parks		4,946		1,678		512
   Total		$81,965		$18,926		$9,099		$

   d. Which segment provides the greatest EBITDA as a percent of revenue?

   e.   have the lowest EBITDA. Management needs to  .

Answer 1