FINANCIAL ANALYSIS OF COMCAST AND TIME WARNER CABLE

„El Clasico”
in media industry
vs

Martyna Zdziebło
Justyna Bąk
Ali EL Shaeri
Emma Qi Yang
Maria Albarracin Ortiz
María Bernabé
Match Referees

AGENDA:
1. Quick facts about both companies
2. Industry description
3. Industry majors players global comparison
4. Products
5. Financial Statements
6. Financial Ratios
7. Du Pont Equation
8. Mix Analysis
9. Capital, Research&Development, Advertising Expenditures
10. Correlation Coefficient
11. Altman Z-score
12. Hot news about Media Industry

Media Industry Media
Communications Sector Communications
CMCSA Market Symbol TWC
$136.43 B Market Capitalization $37.66 B
12/ 31/2013 Fiscal Year End 12/ 31/2013
136 000 Number of Employees 51 600
Philadelphia, Pennsylvania at
One Comcast Center
Headquartes New York City, New York
Team Quick Facts
3.6 x
2.6 x

Foundation
1963
Ralph Roberts
1963
built on a strategy
of mergers and
acquisitions
1990

1963
American Television
and
Communications
(ATC) is founded
1973
• Time Inc. acquires 9% of
ATC
• Warner Communications
forms Warner Cable
1989 1992 2009
Merger of Time Inc. and
Warner Communications
for $14.9 billion
announced, later to
become Time Warner Inc;
ATC and Warner Cable
become Time Warner
Cable, a subsidiary of
Time Warner
TWC separates from Time
Warner Inc:
Time Warner held a total of
300 million shares of Time
Warner Cable common stock
Key milestones of TWC

Team Leaders
Brian L.Roberts Robert D. Marcus

Brian L.Roberts Robert D. Marcus
55 Age 49
Wharton School, University
Pensylvania ‚81
Education Columbia Law School ‚90
CEO, Chairman of the Board,
Director, President
POSITION CEO, Chairman of the Board, Former
COO, Former President
1998 Director 2013
1990 President 2010-2014
2002 CEO 2014
1994 Chairman of the Board 2014
$31 367 254 Total Annual Compensation in 2013 $8 519 154
+7,7 % Compensation changed from 2012 -15,6 %
Control of 33 1/3% of the voting
rights of the Comcast Corporation
Others
Leaders Stats
3.7 x

Business description
Source: NCTA estimated Statistics

Cable Industry to GDP
Cable Industry Infrastructure
Expenditure
Source: BEA.GOV by Industry GDP and Economy.com
Industry in which Comcast and
TWC operate is very
competitive , customer
acquisition is the key to future
growth, and that is why the
industry is also quite capital
intensive.
Trends are
similar!

Industry Price Elasticity Cable Price to CPI
Source: NCTA and NCTA (Average Price for Expanded basic) and BLS for CPI statistics

Delivery of
telecommunications
services
Delivery of
information to the
American consumer
Delivery of
entertainment to
the American
consumer
Industry Functions

10. Rogers Communications Inc.
1. COMCAST CORP.
2. DIRECTV
3. Time Warner Cable Inc.
4. DISH Network Corp.
5. Charter Communications Inc.
6. Cablevision Systems Corp.
7. EchoStar Corp.
8. Shaw Communications Inc.
9. BCE Inc.
In terms of market
share!

BUSINESSESHOUSEHOLDS
INDUSTRY – CUSTOMERS
Cable TV audience: U.S. residents age 12+ who subscribe to either analog or digital cable television
service at home.
QUICK FACTS
1. More than 60% of Americans
subscribe to cable television.
2. Cable television reaches nearly six in
10 adults age 18-49.
3. Cable subscribers closely mirror the
age/gender profile of the average
American.

The estimated Sales Growth Rate for
the future period in the industry is of
3,97%.
INDUSTRY - SIZE
SALES (Revenues)
• $ 202,5 B.
MARKET CAPITALIZATION
• $ 652,6 B.
Total dollar market value of the
shares outstanding of all companies
in the industry
• Growth in Net Income – Last 5 years: 14,16%
• Growth in Revenue – Last 5 years: 3,16%
18 FIRMS
Sources: www.bloomerg.com ,
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/histgr.htm
l

INDUSTRY - MAJOR PLAYERS
In terms of market
share!

INDUSTRY - MAJOR PLAYERS : COMPARISON
COMPANY MARKET SHARE MARKET
CAP.
COMCAST 26,70% $147,411
DIRECTV 20,50% $43,900
Time Warner Cable 14,20% $42,672
DISH Network Corp. 9% $32,056
Charter Communications Inc. 5,30% $20,810
Cablevision Systems Corp. 4,10% $5,054
EchoStar Corp. 2,10% $4,709
Shaw Communications Inc. 2,10% $10,630
BCE Inc. 1,50% $37,206
Rogers Communications Inc. 1,10% $17,673
Having a high market share does not
necessarily have to mean a high
market capitalization, and viceversa
Notice how BCE Inc’s
shares are the fourth
most valued shares even
though its market share
is not very high

C
Financial Data 2013 – Comparison with global competitors
Market Capitalization
Gross Margin %
Revenue
Net Income
$ 27,3 B
2nd among
the
competitors!
$ 22,12 B
The biggest
Revenue!
$ 31,75 B
3rd biggest
Revenue!
2nd biggest
Revenue!
$ 102,56 B
X3,8
$ 64,66 B
X2,0
91,31%
82,34%
53,25%
2nd
biggest
%GM!
4th biggest
%GM!
1st biggest
%GM!
-8,97%
$ 7,14 B
$ 1,95 B
$ 4,61 B
The
biggest NI!
4 th biggest
NI!2nd biggest
NI!
X1,5
The best
company
among the
competitors!
Source: www.wikinvest.com/stock/Comcast_(CMCSA)/Data
3rd among
the
competitors!
$ 27,11 B

Financial Data 2013 – Comparison with global competitors
Free Cash Flow
Total Assets
Goodwill&Intangibles
Total Liabilities
$ 48,27 B
$ 158,81 B
$ 21,91 B
The biggest
Assets!
2nd biggest
Assets!
3rd biggest
Assets!
X3,3
$ 115,62 B
$ 42,53 B
$ 25,99 B
The biggest
Debt!
The biggest
Goodwill&I
ntangibles!
The biggest
FCF!
2nd biggest
Debt!
3rd biggest
Debt!
$ 103,79 B
$ 29,76 B$ 10,79 B
2nd biggest
Goodwill&Intan
gibles!3rd biggest
Goodwill&Inta
ngibles!
3rd biggest FCF!
2nd biggest
FCF!
$ 5,36 B$ 2,54 B
$ 1,33 B
X2,1
X2,7
X3,5
Comcast is a leader in MEDIA
industry – it has the biggest
Revenue, Assets, NI, FCF as well as
Market Cap.
TWC is the second largest cable
company in the U.S.
Other strong competitors are
Direct TV, Discovery
Communications and Virgin
Media.
Source: www.wikinvest.com/stock/Comcast_(CMCSA)/Data

INDUSTRY - MAJOR ACQUISITIONS OR
EVENTS

QUICK FACTS:
• Parties: Comcast and
AT&T Broadband
• July 8, 2001, Comcast
made a proposal to
merge with AT&T’s
Broadband
• $72 Billion Transaction
• 22 million subscribers
• Comcast acquisition of
AT&T doubled the size of
the company making it in
the US larger cable
provider
• Income growth through
leveraging scale with the
addition of new services
The biggest corporate merger of
2001
Nearly
double the
size of its
next-biggest
rival, AOL
Time Warner
Sales growth
117 % !
Net income
growth 1282 %

QUICK FACTS
• Parties: AOL and Time
Warner
• Announced on January 10,
2000
• Oficially filed on February
11, 2000
• $164B deal!!!
• Ownership: 50%-50%? AOL HIGHER CAPITALIZATION
Even though TW
had higher
revenues and far
more assets!!!
51%GROWTH AND
PROFITABILITY
FELL
2002: $99B LOSS!!!
AOL TW’s value fell
$226B to $20B
« BIGGEST MISTAKE
IN CORPORATE
HISTORY »

QUICK FACTS:
GE
• $ 30B deal
• Important dates:
 December 3, 2009
 February 12, 2013
 March 2013
NBC Universal was owned
by GE
CC announces the intention to complete the
acquisition
COMCAST purchases 51% of NBC
ACQUISITION COMPLETED

QUICK FACTS:
Time Warner Cable
• Announced on
February 13, 2014
• $45,2B deal
• Complete acquisition
• 30 million subscribers
• 33% of paid TV
customers in the U.S
• Currently waiting for
permission of the
authorities to complete
the acquisition.
284,9 million shares
Comcast: 22,6 million
+
TWC: 11,2 million
« This transaction is all about
increasing competition and
creating more customer benefit
as a result of gaining additional
scale »
- David Cohen
Comcast Vice-President

QUICK FACTS:
• Parties: AT&T and DIRECTV
• Announced on May 18,
2014
• $48,5B deal
• Aiming to increase AT&T’s
market share in the pay TV
sector
• Access to new markets
• Currently waiting for
permission of the
authorities to complete the
acquisition.
$48,5 B:
 AT&T will pay DIRECTV
shareholders
$95/share in cash and
stock
 Including assumed
debt, the deal amounts
to $67,1B
LATIN AMERICA

Quality of products and services
Triple-Service Bundles
In terms of service, both Comcast & TWC offer similar packages. Comcast’s choices, however, could be streamlined
down to 3 or 4 rather than confusing customers with 5 options.
Internet Service Based on nothing else but Netflix ISP rankings.
HD DVR & Service Because 90 hours of HD is a lot more than 75 hours!
Features Because X1 is way more advanced (if available).
Channels Because it’s too hard to do a direct comparison, and a difference of a few channels shouldn’t the tip the scale.
Customer Service Based on American Customer Satisfaction Index.
Special Offers
However, if TWC wants to be more competitive they should give you the HBO and Cinemax for free for six months rather
than charge $10 per mo.
Prices
Because that Comcast two years plan just seems too long and complicated with 3 variations (and 2 price increases)
throughout the agreement.
TOTAL GOALS
Who is scoring a goal?
Products-Services Why?
0 0
00
0 0
4 1
« Amazing Goals
Comcast !»
Source: www.comcast.com and www.timewarnercable.com

Marketing Strategies
Strategies
Catalogue site
Costumer-friendly
Dynamic pricing
Partnership
Personalized advertising
Building site
Community-focused
Dynamic pricing
Declaration of quality
Investment in others tech
Different approach
De-emphasize the bundle and became more willing to get a
broadband-only customer
Focuse on the bundle of video, Internet, and phone
Target Group
Video, high-speed internet andComcast digital voice customers
Professional Youngsters (Source: Marketing Plan Pro), Upper-
Medium Income Household, and Baby Boomers
Slogan
It's Comcastic! ; Xfinity (Comcast) - The future of awesome Enjoy Better
« BRAVO COMCAST!
More opportunities and
less threats than TWC»

Comparative Income Statement – Horizontal Analysis
(in $ Millions) 2013 2012 $V %V 2013 2012 $V %V
Total Revenue 64 657 62 570 2 087 3,3% 22 120 21 386 734 3,4%
Cost of Revenue 19 670 19 929 -259 -1,3% 6 450 6 137 313 5,1%
Gross Profit 44 987 42 641 2 346 5,5% 15 670 15 249 421 2,8%
Operating Expenses:
Research Development
Selling General and Administrative 23 553 22 664 889 3,9% 7 690 7 425 265 3,6%
Non Recurring 119 115 4 3,5%
Others 7 871 7 798 73 0,9% 3 281 3 264 17 0,5%
Total Operating Expenses 31 424 30 462 962 3,2% 11 090 10 804 286 2,6%
Operating Income or Loss 13 563 12 179 1 384 11,4% 4 580 4 445 135 3,0%
Income from Continuing Operations
Total Other Income/Expenses Net 212 992 -780 -78,6% 11 497 -486 -97,8%
Earnings Before Interest And Taxes 13 689 14 130 -441 -3,1% 4 591 4 942 -351 -7,1%
Interest Expense 2 574 2 521 53 2,1% 1 552 1 606 -54 -3,4%
Income Before Tax 11 115 11 609 -494 -4,3% 3 039 3 336 -297 -8,9%
Income Tax Expense 3 980 3 744 236 6,3% 1 085 1 177 -92 -7,8%
Minority Interest -319 -1 662 1 343 -80,8% -4 4 -100,0%
Net Income From Continuing Ops 6 730 7 162 -432 -6,0% 1 954 2 155 -201 -9,3%
Net Income 6 816 6 203 613 9,9% 1 954 2 155 -201 -9,3%
Preferred Stock And Other Adjustments
Net Income Applicable To Common Shares 6 816 6 203 613 9,9% 1 954 2 155 -201 -9,3%
COMCAST TIME WARNER CABLE
$64 657 $62 570 $21 386$22 120
X 2,9X 2,9
3,4%3,3%
9,9% -9,3%
As NI rose faster
than sales, ROS is
going to rise!
Total Revenue
Net Income Applicable to Common Shares
In 2013 Comcast purchased GE’s 49%
remaining interest in NBCU (for
approximately $16.7 billion). As they own
all of NBCU’s NI, they no longer subtract it
and that’s why their NI rose so hugely!
The biggest $V!
Costs have not changed
enormusly, so they are not the
reason of a huge increase in
the NI!
Increase in Comcast’s Revenue was
primarly due to:
 12.4 mln customers subscribed to at
least one of HDTV or DVR advanced
video services (0,6mln more than in
2012)
 Increase in the number of residential
High-Speed Internet customers, higher
rates from customers receiving higher
levels of service
 Higher prices and an increase in the
volume of advertising units sold
 Strong performance of Despicable Me
2 and Fast and Furious 6
 Higher guest attendance and increase
in per capita spending at the Orlando
and Hollywood Theme Parks
Increase in TWC’s Operating Costs and
Expenses was primarly due to:
 contractual rate increases, carriage of
new networks
 increased headcount and higher
compensation costs per employee
 Higher Selling, general and
administrative expenses - higher
marketing costs (which included the
impact of increased spending due to
temporary blackouts resulting from
programming vendor disputes) and
increased facilities costs
$6 816 $6 203 $1 954 $2 155
Increase in TWC’s Revenue was primarly
due to:
 Price increases and a greater
percentage of subscribers purchasing
higher-priced tiers of video service,
 Growth in average revenue per
subscriber and an increase in high-
speed data subscribers
 Growth in high-speed data and voice
Business Services subscribers, as well
as increases in cell tower backhaul
and Metro Ethernet revenue
 Growth in non-political advertising
revenue (primarily associated with
advertising inventory sold on behalf
of other video distributors (“ad rep
agreements”))
X3,5 X2,9
As NI fell while Sales
increased, ROS is
going to fall!
OVERALL:
Comcast’s NI looks great
(much more better than
TWC’s) but it’s mainly due to
the decrease in Minority
Interest and not the Increase
in Sales!

Comparative One Day Income Statement – Vertical Analysis
(in $ Millions) 2013 % of sales 2012 % of sales 2013 % of sales 2012 % of sales
Total Revenue 180 100,0% 174 100,0% 61 100,0% 59 100,0%
Cost of Revenue 55 30,4% 55 31,9% 18 29,2% 17 28,7%
Gross Profit 125 69,6% 118 68,1% 44 70,8% 42 71,3%
Operating Expenses:
Research Development - - - - - - - -
Selling General and Administrative 65 36,4% 63 36,2% 21 34,8% 21 34,7%
Non Recurring - - - - 0,3 0,5% 0 0,5%
Others 22 12,2% 22 12,5% 9 14,8% 9 15,3%
Total Operating Expenses 87 48,6% 85 48,7% 31 50,1% 30 50,5%
Operating Income or Loss 38 21,0% 34 19,5% 13 20,7% 12 20,8%
Income from Continuing Operations
Total Other Income/Expenses Net 1 0,3% 3 1,6% 0,03 0,0% 1 2,3%
Earnings Before Interest And Taxes 38 21,2% 39 22,6% 13 20,8% 14 23,1%
Interest Expense 7 4,0% 7 4,0% 4 7,0% 4 7,5%
Income Before Tax 31 17,2% 32 18,6% 8 13,7% 9 15,6%
Income Tax Expense 11 6,2% 10 6,0% 3 4,9% 3 5,5%
Minority Interest -1 -0,5% -5 -2,7% 0 0,0% 0 0,0%
Net Income From Continuing Ops 19 10,4% 20 11,4% 5 8,8% 6 10,1%
Net Income 19 10,5% 17 9,9% 5 8,8% 6 10,1%
Preferred Stock And Other Adjustments - - - - - - - -
Net Income Applicable To Common
Shares 19 10,5% 17 9,9% 5 8,8% 6 10,1%
29,2%
70,8%
28,7%
71,3%
31,9%
68,1%
8,8%
30,4%
69,6%
10,5%
48,6% 50,1%
20,7%21,0%
19 5
X 3,8
+1,2%
TWC’s
GM% was
higher!
+3,2%
Comcast
increased its
GM%!
-1,5%
+1,5%
+0,5%
-0,5%
-1,7%
Comcast’s
ROS is higher!
+1,5%
-0,3%
Comcast’s Cost of
Revenue as % of
Total Revenue was
higher than TWC’s!
INCOME STATEMENT:
FOR
COMCAST!!!
TWC’s GM%
decreased!

Quarterly Revenue and Income
+1,6%
25,6%
24,0%
+2,1%
+12,4%
+16,5%
 Revenue and NI were higher in 2Q&3Q of each year –
due to increases in consumer advertising in the spring
and in the period leading up to and including the
holiday season
 3Q12's Revenue and NI were boosted by London
Olympics
 Revenue and NI benefit in even-numbered years from
advertising related to candidates running for political
office
 TWC’s quarterly Revenues were more steady than
Comcast’s,
 3Q2012’s NI was boosted by London Olympics
 3Q2012 benefited from the strong results of the
July 2012 movie "The Dark Knight Rises” (cost
$250 million, brought in nearly $1.1 billion
globally)

(in $Millions) 2013 2013(%) 2012 2012(%) V$ ( V%) 2013 2013(%) 2012 2012(%) V$ (V%)
ASSETS
Cash And Equivalents 1718 1% 10951 7% -9233 16% 525 1% 3304 7% -2779 16%
Short-Term Investments 3573 2% 1464 1% 2109 244% 0 - 150 0% -150 0%
Accounts Receivable 6376 4% 5521 3% 855 115% 954 2% 883 2% 71 108%
OtherCurrent Assets 2408 2% 2055 1% 353 117% 665 1% 540 1% 125 123%
TOTALCURRENTASSETS 14075 9% 19991 12% -5916 70% 2144 4% 4877 10% -2733 44%
Property Plant&Equipmnet, Net 29840 19% 27232 17% 2608 110% 14255 30% 14004 28% 251 102%
Goodwill 27098 17% 26985 16% 113 100% 3196 7% 2889 6% 307 111%
Long-Term Investments 3770 2% 6325 4% -2555 60% 183 0% 382 1% -199 48%
OtherIntangibles 76693 48% 77204 47% -511 99% 27365 57% 27390 55% -25 100%
OtherLong-Term Assets 7337 5% 7234 4% 103 101% 1130 2% 267 1% 863 423%
TOTALASSETS 158813 100% 164971 100% -6158 96% 48273 100% 49809 100% -1536 97%
Comparative Balance Sheet: Assets
3.3 x
3.3 x
4 % 3 %
84 % 84 %
The major type of asset , almost 50 % of Total Assets in both companies
The assets under this
category include mainly:
• Franchise rights;
• Trade names;
• FCC license;
• Patents and other
technology rights;
• Software;
• Customer
relationship;
• Cable franchise
renewal costs and
contractual operating
rights and Other
agreements and rights
Franchise rights
The assets under this
category include
mainly:
• Cable franchise
rights
(the major part of it)
• Customer
relationships
• Cable franchise
renewals access
rights
Intangible assets
consists in 77 % of
Franchise rights.
They come from
agreements with
state and local
authorities that allow
access to homes and
businesses in cable
service areas that
were acquired in
business
combination.
«Strong barrier to
entry to would-be
competitor ! »
To sum up, in both companies inangible
assets in total assets are huge and it is
definitely an area that the firms need to
watch for in the future. Why? While most of
them are indefinite-lived assets that can not
be lost due to amortization, there is the
possibility that the values may be written
down if some of the acquisitions do not work
out in the future, which could be prove
problematic.
In 2013 year Comcast
reported $29.8 B in PP&E
which was 10 % more
than in previous year. The
grow was mainly due to
acquisitions of real estate
properties which resulted
in increase of $2,2 billion
PPE.
In 2013 TWC
reported $14,2 B of
PP&E which
increased only 2 %
comparing to
previous year.To sum up, we can say that
Comcast was expanded on
more.
In 2013 Comcast
reported $27.1B of
goodwill which
accounts for 17% of
assets. This is inline with
the $26.98B that it
reported in goodwill at
the end of 2012.
BUT generally, the big amount
of goodwill in Comcast's assets
is caused mainly by big
acquisitions performed in
previous years (the $10.9B in
goodwill that was acquired in
2011 with the 51% stake in NBC
Universal being purchased for a
total consideration of $24.1B.
Also contributing was the
$982M in goodwill that was
acquired when the company
purchased the remaining 50%
stake in Universal Orlando).
To sum up, goodwill percentages of total
assets in both companies is not very
excessive but in Comcast is much higher
than TWC, so this is also an area that we
need to watch for Comcast.
Goodwill has an accounting value, it has
no economic value. if the acquisition
does produce the value that was
originally expected, then some of that
goodwill might come off of the balance
sheet, which could, in turn lead to the
stock going down.
TWC in 2013
reported $3,2 B
in goodwill
which accounts
7 % of asset. It is
similar to 2012
year.
In 2013 and 2012 Comcast's
receivables, equal to 10 %
and 9% of its revenue,
respectively.
TWC's receivables,
equal to 4 % of its
revenue in both years.
In case of both companies
receivables stated low
percentage of sales so it is
seems to be anything to worry
about here for either of these
two companies.
In both companies Cash And
Equivalents generally stated a
low percentage of sales but this
type of assets declined the
most in both companies.
In 2013 Comcast reported only $5.3 B
in cash and equivalents and short-term
investment. Cash decreased 84 %.
In 2013 Comcast acquired GE’s
remaining 49% common equity
interest in NBCUniversal.
The total consideration for these
transactions consisted of $11.4
billion of cash on hand.
In 2013 TWC reported only
$525 M in cash and equivalents
and short-term investment.
Cash decreased 84 %.
In 201 TWC completed its
acquisition of DukeNet for
$572 milion in cash.

(in $ Millions) 2013 2013 (%) 2012 2012 (%) V$ V (%) 2013 2013 (%) 2012 2012 (%) V$ V (%)
LIABILITIES & EQUITY
Accounts Payable 5 528 3% 5 324 3% 204 104% 565 1% 647 1% -82 87%
Accrued Expenses 7 967 5% 5 931 4% 2 036 134% 1 837 4% 1 805 4% 32 102%
Current Portion Of Long-Term Debt/Capital Lease 3 280 2% 2 376 1% 904 138% 1 767 4% 1 818 4% -51 97%
Other Current Liabilities 1 239 1% 2 232 1% -993 56% 869 2% 872 2% -3 100%
Unearned Revenue, Current 898 1% 851 1% 47 106% 188 0% 183 0% 5 103%
TOTAL CURRENT LIABILITIES 18 912 12% 16 714 10% 2 198 113% 5 226 11% 5 325 11% -99 98%
Long-Term Debt 44 567 28% 38 082 23% 6 485 117% 23 335 48% 25 172 51% -1 837 93%
Deferred Tax Liability Non-Current 31 935 20% 30 110 18% 1 825 106% 12 098 25% 11 280 23% 818 107%
Other Non-Current Liabilities 11 384 7% 13 271 8% -1 887 86% 667 1% 749 2% -82 89%
TOTAL LIABILITIES 106 798 67% 98 177 60% 8 621 109% 41 326 86% 42 526 85% -1 200 97%
Minority Interest 1 321 1% 17 438 11% -16 117 8% 4 0% 4 0% 0 100%
Common Stock 30 0% 31 0% -1 97% 3 0% 3 0% 0 100%
Additional Paid In Capital 38 890 24% 40 547 25% -1 657 96% 6 951 14% 7 576 15% -625 92%
Retained Earnings 19 235 12% 16 280 10% 2 955 118% -55 0% 363 1% -418 -15%
Treasury Stock -7 517 -5% -7 517 -5% 0 100% 0 0% 0 0% 0 -
Comprehensive Income And Other 56 0% 15 0% 41 373% 44 0% -663 -1% 707 -7%
TOTAL EQUITY 50 694 32% 49 356 30% 1 338 103% 6 943 14% 7 279 15% -336 95%
TOTAL LIABILITIES AND EQUITY 158 813 100% 164 971 100% -6 158 96% 48 273 100% 49 809 100% -1 536 97%
Comparative Balance Sheet: Liabilities&Equity
60 %
9 %
67 %
2,7 x
85 %86 %
current assets
decreased 30 %
while the current
liabilities increased
by 13 %
Comcast was capable to meet only
74 % of its short term obligations in
the recent year while in previous
year its current assets were 1,2
times bigger than current liabilities.
Current assets
decreased 56 %
while the current
liabilities declined
by 2 %
TWC was able to meet
only 41 % of short
term obligatoins the
recent year while in
2012 92 %
In both years and in
both companies their
assets were financed
mainly through debt.
While analyzing the debt
structure of the company, it is
revealed that their debt
structures are heavily based on
long term liabilities as
compared to short term. In
Comcast current liabilities
stated 18% and 17 % of Total
Liabilities respectively and in
TWC in both years 13 %.
113 %
117 %
In Comcast the proportion of long term debt
is also increasing with a greater percentage as
compared to current liabilities which
represents that company is heavily depend on
long term debt which is 28% of total assets.
TWC tried to reduce
the proportion of
long- term debt in
financing assets
(declined by 7 % )
but it still was almost
50 % of total assets.
Its huge.
Comcast reported $19,24B of
retained earnings on its most recent
balance sheet, while TWC had a
retained earnings deficit of $55 M on
its balance sheet
Going back to the end of 2009, Comcast had
retained earnings of $10.0B. So, over the last
years, Comcast grew its retained earnings at
a cumulative rate of 92,4 %, which is
impressive.Comcast was growing its net
worth. The more earnings retained, the
faster it grows and increases growth rate for
future earnings.
This deficit is due mostly to the aggressive
share buyback policies being pursued by the
management at TWC.
For the year ended December 31, 2013, the
Company repurchased 24.0 million shares of
TWC common stock for $2.526 billion,
including 0.4 million shares repurchased for
$51 million that settled in January 2014.
.
Minority Interest fell 82 %. In
2013 Comcast acquired GE’s
remaining 49% common equity
interest in NBCUniversal for
approximately $16.7 billion.

Income Statement 5 Year Growth Rate
2010 2011 2012 2013 2014
Revenue 18.868 19.675 21.386 22.120 22.812
Gross Marg. 9.927 10.537 9.942 10.342 5.294
Net income. 1.308 1.665 2.155 1.954 2.031
2010 2011 2012 2013 2014
Revenue 37.937 55.842 62.570 64.657 68.775
Gross Marg. 22.687 35.084 42.641 44.987 47.863
Net income. 3.635 4.160 6.203 6.816 8.380

Balance Sheet 5 Year Growth Rate
6.8
%
-18,24%
A2010 A2011 A2012 A2013 A2014
45.822 48.276 49.809 48.273 48.501
36.612 40.746 42.530 41.330 40.488
9.210 7.530 7.279 6.943 8.013
BALANCE SHEET DATA
Total Assets
Total Debt including current portion
Shareholders´equity
2010 2011 2012 2013 2014
118.534 157.818 164.971 158.813 159.339
74.180 110.544 115.615 108.119 106.628
44.354 47.274 49.356 50.694 52.721
BALANCE SHEET DATA
Total Assets
Total Debt including current portion
Comcast Shareholders´equity

Comparative Cash Flow
(in $ Millions) 2013 2013
Operating Acitivities 14 608 4 864
Net income 6 816 1 954
Depreciation and amortization 7 871 3 281
Change in Accounts Receivable -855 -71
Change in Other Current Assets -353 -125
Change in other LT Assets -103 -863
Change in Accounts Payable 204 -82
Change in Accrued Expenses 2 036 32
Change in other Current Liabilities -993 -3
Change in Unearned Revenue, C 47 5
Change in Deferred Tax Liability NC 1 825 818
Change in Other NC Liabilities -1 887 -82
Investing Activities -9 594 -2 758
Capital expenditures -10 479 -3 532
Change in STI -2 109 150
Change in Goodwill -113 -307
Change in LTI 2 555 199
Change in Other Intangibles 511 25
Change in Comprehensive Income 41 707
Financial Activities -14 247 -4 885
Stock issued -1 0
Dividends paid -3 861 -2 372
Change in Current Portion Of LT Debt 904 -51
LT Debt 6 485 -1 837
Minority Interest -16 117 0
Change in Additional Paid In Capital -1 657 -625
Increase (decrease) in cash and cash equivalents -9 233 -2 779
Operating activities 14 608 4 864
Net Income
Investing Activities
Financial Activities
-2 779-9 233
Increase/Decrease in cash and cash
equivalents
Depreciation and Amortization
Capital expenditures
6 816
7 871 3 281
-9 594
-14 247
-10 479
-2 758
-3 532
1 954
-4 885
-2737Dividends paid -3 861
X3,0
46,7% of OCF
53,9% of OCF
40,2% of OCF
67,5% of OCF
X3,5
X2,9
71,7% of OCF 72,6% of OCF
26,4% of OCF 56,3% of OCF
Change in LT Debt
Change in Current portion of LT Debt 904
6485
-51
-1837
Comcast took
out huge debt!
TWC is
repaying its
debt, but
debt is still
huge!
Minority Interest -625-1 657 X3,3
Comcast acquired GE’s 49%
remaining common equity interest in
NBCU for approximately
$16.7 billion.
TWC completed its
acquisition of
DukeNet for $572
million in cash
(including the
repayment
of debt), net of cash
acquired and
capital leases
assumed.
BOTH COMPANIES HAVE CASH
OUTFLOW!!!

5 year Cash Flow
1963X2,1 X2,5 X2,7 X2,5 X2,7
Comcast’s OCF was
more than 2 times
bigger than TWC’s in
each year.
X2,0 X3,5 X0,4 X2,7 X2,1
Comcast’s Investing
CF was 0,4 – 3,5 times
bigger than TWC’s.
X2,9X2,7X1X221,5X0,4
Comcast’s Financing
CF was 0,4 – 221,5
times bigger than
TWC’s
That’s why Comcast
can buy TWC!
-5 056

5 year Operating Cash Flow – top items
1963
1. Depn& amort
2. Net income
3. Deferred income
taxes
1. Depn& amort
2. Other working
capital
3. Amort. of debt
discount
1. Amort. of debt
discount
2. Other working capital
3. Net income
1. Other working
capital
2. Amort. of debt
discount
3. Depn& amort
1. Net income
2. Depn& amort
3. Other working
capital
1. Net income
2. Depn& amort
3. Deferred income
taxes
1. Depn& amort
2. Net income
3. Deferred income
taxes
1. Depn& amort
2. Net income
3. Deferred income
taxes
1. Depn& amort
2. Net income
3. Deferred income
taxes
1. Depn& amort
2. Net income
3. Other non-cash
items
Depreciation&Amortization,
NI and other working capital
were the biggest drivers of
Comcast’s OCF
Depreciation&Amortization,
NI and deferred income taxes
were the biggest drivers of
TWC’s OCF

5 year Investing Cash Flow - top items
1963
1. Investments in PPE
2. Other inv. activities
3. Purchases of
intangibles
2. Acquisitions, net
2. Purchases of
investments
2. Purchases of
intangibles
2. Other inv. Activities
3. -
3. Sales of intangibles
3. Purchases of
investments
2. Other inv. Activities
3. -
2. Sales/Maturities of
investments
3. Purchases of investments
Investments in
PPE and other
investing activities
were the biggest
drivers of both
companies’ ICF
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
96% 50% 447% 80% 76% 102% 83% 93% 93% 101%
Comcast TWC
Investments in PPE as % of ICF
Both companies were spending
more than 50% of their ICF in each
year on themselves (CAPEX)!

5 year Financing Cash Flow - top items
1. Debt issued
2. Common stock
repurchased
3. Debt repayment
1. Debt issued
2. Common stock
repurchased
3. Debt repayment
1. Common stock
repurchased
2. Debt issued
3. Debt repayment
1. Debt repayment
2. Common stock
repurchased
3. Dividend paid
1. Other financing
activities
2. Debt issued
3. Debt repayment
1. Debt issued
2. Other financing
activities
3. Dividend paid
1. Debt repayment
2. Debt issued
3. Common stock
repurchased
1. Debt repayment
2. Dividend paid
3. Debt issued
1. Debt issued
2. Common stock
repurchased
3. Dividend paid
Debt issued, common
stock repurchased,
debt repayment and
dividend paid were
the biggest drivers of
both companies’ FCF
2013
-5 056
1. Common stock
repurchased
2. Debt repayment
3. Dividend paid
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
1461% 59% 100% 24% 112% 302% 11782% 63% 65% 54%
Comcast TWC
Dividends paid + Common Stock Repurchased as % of FCF
The money which was
returned to shareholders
represented huge share of
both companies’ FCF !
Overall:
As Comcast has huge CAPEX ,its
Depn&Amort is also huge.
Hovewer Comcast does not have
enough cash to finance it, so it is
taking out huge debt (but total
debt is decreasing!)
Overall:
TWC’s CAPEX and Depn&Amort
are also huge, but since 2012
TWC has been repaying more
debt than issuing. However its
debt to asset ratio is still
enormous (86% in 2013). In
2014 its Operating inflow was
high enough to cover financial
and investing outflows.

Revenues by segments in 2007-2013
%ofCableTVrevenuesin
TotalReneue
Drops are consistent with market trends,
the cable TV industry has seen declines in
video subscribers over the last several years
(customer complaint about rising cable
subscription prices what is caused by
rising programming costs)
second major component
In 2011 year the situations changed,
revenues from NBCU, Comcast Content
&Others grew significantly and were second
main part of Comcast’s total revenues . It
happened because in 2011 year Comcast
acquired 51% of NBCUniversal Holdings and
a 49% interest in the Comcast Content
Business.
BUT.. revenues generated
from Broadband still
remained important
« STOP
!!!»
second major component
Revenues from Broadband had nearly
doubled from $6.4 billion in 2007 to $12
billion in 2013 and the segment
accounted for close to 20% to the
company’s overall revenues.
Increased in Broadband’s revenues of
COMCAST and TWC are consistent with
market trends,
The increasing need for speed and connectivity
is driving broadband growth in the U.S
%ofBroadbandrevenuesin
TotalReneue
Comcast's revenues from other segments
were less important in overall revenues , but
they were growing constantly although the
changes were not spectacular .
TWC's revenues from other segments were
less important in overall revenues , but they
were growing constantly although the changes
were not spectacular .
Source: www.trefis.com

EBIDTA by segments in 2007-2013
%oftotalEBIDTAgeneretaedby
CableTVsegmentinbothcompanies
wasfalling(like%ofRevenue)
Growth caused by
the same reason as
growth in revenues

Free Cash Flows by segments in 2007-2013
In Comcast and TWC Cable TV segment
generated the most of the company’s free
cash flow in every year , however this
percentage was falling year by year because
both companies were increasing their capital
expenditures .

5307 5714 6,596
0
5000
10000
2011 2012 2013
Total capital expenditures
2011-2013
2937
3095
3,198
2800
2900
3000
3100
3200
3300
2011 2012 2013
Total capital expenditures
2011-2013
2 x
22,120
64,657
3,198
6,596
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000
CAPEX in Total Revenue in 2013
Total Revenue CAPEX
Capital expenditures in 2011-2013
10% of
sales
14,5%
of sales
Category 20122013/2012 2013 20122013/2012 2013
CFtoCapexratio* 1,818 59% 1,07 1,543 124% 1,910
Capextosalesratio 9% 112% 10% 14,5% 100% 14,5%
Cash flow to Capex
Ratio of TWC also
increased from previous
year so it might indicate
that the TWC is in a
position to grow and
growth is generally
what increases share
price and
shareholder wealth.
TWC takes the
maintenance and
expansion of its capital
infrastructure seriously.

Capital Expenditures 5 year Growth Rate
2010 2011 2012 2013 2014
Gross PPE 28.217 30.920 33.272 35.619 38.552
Acc depr. -14.344 -17.015 -18.530 -20.563 -22.562
Net PPE 13.873 13.905 14.742 15.056 15.990
2010 2011 2012 2013 2014
Gross PPE 56.020 64.087 66.657 72.414 76.363
Acc depr. -32.505 -36.528 -39.425 -42.574 -45.410
Net PPE 23.515 27.559 27.232 29.840 30.953

2013 2012 Change
LIQUIDITY
Current Ratio 0,74 1,20 worse
Quick Ratio 0,74 1,20 worse
TURNOVER
Receivable Turnover 10,14 11,33 worse
Total Asset Turnover 0,41 0,38 better
PROFITABILITY
Return on Sales 10,5% 9,9% better
Return on Assets 4,3% 3,8% better
Return on Equity 13,1% 9,3% better
Gross Margin 69,6% 68,1% better
LEVERAGE
Debt to Assets 67% 60% worse
Debt to Equity 2,05 1,47 worse
TIE (times) 5,32 5,60 worse
Equity Multiplier 3,05 2,47 worse
CASH MANAGEMENT (in days)
Days Sales Outstanding 36 32 worse
Account Payable Days 101 96 better
Cash Conversion Cycle -66 -64 better
MARKET VALUE
Earnings Per Share 2,60 2,32 better
Dividends per Share 0,78 0,65 better
Dividend Yield 1,50% 1,74% constant
Dividend Payout 30,00% 28,02% better
Price to Earnings 19,99 16,10 better
Price to Book Value 2,69 2,03 better
Market Capitalization $136 B $100 B better
Name of Ratio
COMCAST
Individual Ratios in 2012-2013
40 % up
As concerned with the
short term solvency of
Comcast, Current ratio of
the company is
deteriorated
significantly (38 %)
from 2012 to 2013, its
below 1, it means that
he company cannot pay its
current liabilities and
should looked at this with
extreme caution. Quick
ratio is the same because
Comcast does not have
inventory.
Debt to equity ratio of
Comcast in 2012 was high
and in 2013 increased
strongly, about 40 % it is not
a good indication, it
represented that Comcast
was focused on debt
financing . As well as debt to
asset ratio of Comcast's
went up.
Financial leverage based on
its solvency ratios appears
quite high. Debt exceeds
equity by more than 2
times, while almost 70 % of
assets have been financed
by debt.
72 %f of non-
current assets
consists of
intangible
assets (such as
goodwill and
franchise rights
and others)
As a result, In 2013 the ratio
of debt to tangible assets –
calculated as Total
Liabilities/Tangible assets– is
261 %, which means that all
of tangible assets (plant and
equipment, inventories, etc.)
have been financed by
borrowing.
Growing Equity Multiplier
and decreasing TIE ratios
(probably due to increase in
interest expenses due to the
firm’s focus on debt
financing) confirmed that
Comcast was focusing on
debt financing and had a
high amount of leverage.
Generally Comcast had in
both years high negative CCC,
it is great case and it shows
that the company has a big
power in the industry.
Overall its profitability is good,
all ratios increased.
Generally all ratios increased,
market capitalization too,
Comcast can be considered as
a good investment.

2013 2012 Change
LIQUIDITY
Current Ratio 0,41 0,92 worse
Quick Ratio 0,41 0,92 worse
TURNOVER
Total Asset Turnover 0,46 0,31 better
PROFITABILITY
Return on Sales 8,8% 10,1% worse
Return on Assets 4,0% 4,3% worse
Return on Equity 28,1% 29,6% worse
Gross Margin 70,8% 71,3% worse
LEVERAGE
Debt to Assets 86% 85% worse
Debt to Equity 5,95 5,84 worse
TIE (times) 2,96 2,96 constant
Equity Multiplier 6,95 6,84 worse
Days Sales Outstanding 16 15 worse
Account Payable Days 32 38 worse
Cash Conversion Cycle -16 -23 worse
MARKET VALUE
Earnings Per Share 6,76 6,97 worse
Dividends per Share 2,60 2,24 better
Dividend Yield 1,92% 2,30% constant
Dividend Payout 38,46% 32,14% better
Price to Earnings 20,04 13,94 better
Price to Book Value 5,62 4,11 better
Market Capitalization $39 B $30 B better
Name of Ratio
TWC
Individual Ratios in 2012-2013
As concerned with the
short term solvency of
TWC, Current ratio of
the company is
declined
substantialy (55
%) from 2012 to
2013, it is very low
only 0,41, it indicates
strong lack of liquidity
and a risk of
bankruptcy. Quick
ratio is the same
because TWC does not
have inventory.
Debt to equity ratio of
TWC’s in 2012 was very
high and in 2013
increased slightly. It
means that TWC was
highly leveraged and
represented a high risk
for investors. Debt to
asset ratio of TWC was
also very high, TWC
financed in 2013 86 %
of it's assets with debt!
It's a lot.
We have to note
that 66 %f of non-
current assets
consists of
intangible
assets (such as
goodwill and
franchise rights
and others)
As a result, the ratio of
debt to tangible assets
– calculated as Total
Liabilities/Tangible
assets– is 2615%, which
means that all of
tangible assets (plant
and equipment,
inventories, etc.) have
been financed by
borrowing!
Generally TWC had in
both years also
negative CCC, it's
good, the company
could invest cash
received from
customers before
paying suppliers,
however, the
situations worsened
in recent year.
Generally all ratios
increased, except EPS.
EPS decreased but still
was quite high
because EPS for full
year of 2013 benefited
from lower average
common shares
outstanding as a result
of share repurchases
under the Company’s
stock repurchase
program.
Since inception of the
share repurchase
program in November
2010 through
December 31, 2013,
TWC has repurchased
over 25% of its
outstanding shares for
$7.5 billion at an
average price of $82.51
per share
Price to earnings rose
strongly , the market was
willing pay for TWC’s
earnings- more. Each
company would have to
pay more to acquire
TWC.

COMCAST TWC Comcast
2013 2013 TWC
LIQUIDITY 2013
Current Ratio 0,74 0,41 better
Quick Ratio 0,74 0,41 better
TURNOVER
Total Asset Turnover 0,41 0,46 worse
PROFITABILITY
Return on Sales 10,5% 8,8% better
Return on Assets 4,3% 4,0% better
Return on Equity 13,1% 28,1% worse
Gross Margin 69,6% 70,8% worse
LEVERAGE
Debt to Assets 67% 86% better
Debt to Equity 2,05 5,95 better
TIE (times) 5,32 2,96 better
Equity Multiplier 3,05 6,95 better
Days Sales Outstanding 35,50 15,53 worse
Account Payable Days 101,17 31,53 better
Cash Conversion Cycle -65,67 -16,01 better
MARKET VALUE
Earnings Per Share 2,60 6,76 worse
Dividends per Share 0,78 2,60 worse
Dividend Yield 2% 2% constant
Dividend Payout 30% 38% worse
Price to Earnings 19,99 20,04 worse
Price to Book Value 2,69 5,62 worse
Market Capitalization 136 421 39 024 worse
Name of Ratio
Who is scoring a goal?
Comparative Ratios 2013
4 x
2x
2,6x
Current ratio of Comcast
was below 1, it idicates a
weaking liquidity
position, but the situation
is better than TWCs which
had a strong lack of
liquidity.
Score for Comcast.
Generally Comcast's all
leverage ratios looked
better than TWC, which
is much more leverage ,
TWC used more debt to
finance its assets, higher
financial risk.
Scores for Comcast again.
Comcast is scoring again.
It had 4 times more days
than TWC to invest it
before it had to pay its
suppliers. Comcast has a
BIG market power
in the industry.
Genarally, their
profitability was quite
similar, Comcast had
slightly better ROS and
ROA, but the main
difference was in ROE.
TWC had 2 times higher
ROE. Why? Du Pont
equitation will give the
answer.
Generally, Comcast
comparing to TWC looked
worse, but have much
more bigger market
capitalization.
TWC had 2,6 times
bigger EPS and it was
good quality EPS, because
operating cash flow per
share (operating cash flow
divided by the number of
shares used to calculate
EPS) was 16,9 and it was
greater than reported EPS
Score for TWC.

Industry Comparison :Ratio data TTM as of 12/31/2014
www.bloomberg.com
Comcast has ROA below industry
average while TWC higher than
industry average
Comcast and TWC have Return on
Capital higher than industry average.Comcast and TWC have Return on
Eguity below industry average but
TWC return on equity is much more
higer than Comcast's.
Current ratios are below industry
average, both companies should
improve their liquidity position.
Comcast below industry average,
TWC higher level of leverage than
industry average.
Comcast below industry average,
TWC higher than industry average.

Industry Comparison :Ratio data TTM as of 12/31/2014
http://www.bloomberg.com
Revenues of both companies grew
faster than industry market, but
Comcast's revenue increased faster.
Capital expenditures are below
industry but TWC is investing more
to make grower revenues in future.

Du Pont Equation
Du Pont analysis tells us that ROE is affected by three things:
1)Financial leverage, which is measured by the equity multiplier (EM)
2)Assets Efficiency which is measured by total asset turnover (TAT)
3)Profitability, which is measured by profit margin( ROS)

Du Pont Equation
(in $ Millions) 2013 2012 2013 2012
Net Income 6 816 6 203 1 954 2 155
Sales 64 657 62 570 22 120 21 386
Total Assets 158 813 164 971 48 273 49 809
Owners Equity 50 694 49 356 6 943 7 279
EM=TA/OE 3,13 3,34 6,95 6,84
TAT=Sales/TA 0,41 0,38 0,46 0,43
ROS=NI/Sales 10,54% 9,91% 8,83% 10,08%
ROE=EMxTATxROS 13,45% 12,57% 28,14% 29,61%
TWCComcast
Du Pont Equation
2.3 x
2.1 x
ROS is the major component of ratio. It is also similar
in 2013, although Comcasts was higher.
In 2013 for every $100 of Sales, Comcast generated
$10,54 of Net Income, and TWC generated $8,83 of
Net Income.
TWC's ROE comparing to Comcast’s looked amazing
but the key difference follows straight from
leverage, TWC was 2,3 times more leverage. If a
company is taking on way too much debt that is not
good- increase in lease and debt financing leads
towards an increase in interest expenses and
reduced profits.
In 2013 for every $1 of Total Equity, Comcast owned $
3.13 of Assets while TWC owned $6.95 of in Total
Assets! Its 2,3 times more.
Higher Ratio > the more debt is used to finance assets
> Higher Risk !
In 2013 for every $1 of Assets, Comcast generated
$0.41 in Revenue, and TWC generated $0.46 in
Revenue.
It's not a big difference, probably both companies had
similar pricing strategy.

Change % Better/Worse Change % Better/Worse
EM=TA/OE -6% better 2% worse
TAT=Sales/TA 7% better 7% better
ROS=NI/Sales 6% better -12% worse
ROE=EMxTATxROS 7% better -5% worse
100% BETTER 25% BETTER/75% WORSE
Let's talkaboutROE.
ROE component’s variation 2013/2012
Comcast’s ROE
increased.
Comcast improved its
assets utilization and
profitability of sales.
It was good.
In 2013 TWC was
leverage more but
it did not lead to
higher ROE because
profit margin fell
(12 %) and ROE
declined too. It can
cause some
concern.

Leasing Expenditures
Year 1 Years 2-3 Years 4-5 More than 5 Total Year 1 Years 2-3 Years 4-5 More than 5 Total
Capital lease obligations 7 11 5 14 37 49
Operating lease obligations 385 628 458 673 2 144 149 272 191 300 912
Total contractual obligations 15 773 18 794 16 796 55 679 107 042 9 089 13 518 13 980 47 551 84 138
Contractual obligations outstanding as of December 31, 2013 by the period in which the payments are due
no data in the notes
COMCAST TWC
(in $ Millions)
Capital lease obligations
Operating lease obl.
Total contractual obl.
37
2 144
107 042
49
912
84 138
Similar structure of Operating leases –
operating leases due by more than 5 years
have the biggest share
COMCAST TWC
Total Capital lease obligations as % of Total contractual obligations 0,03% 0,06%
Total Operating lease obligations as % of Total contractual obligations 2,00% 1,08%
Total lease obligations as % of Total contractual obligations 2,04% 1,14%
Lease obligations as % of Contractual obligationsObligations outstanding as of December 31, 2013
0,03%
2,00%
2,04%
0,06%
1,08%
1,14%
Overall, Comcast
finances more of its
operations with leasing
than TWC. Both
companies prefer
operating than capital
leasing. TWC uses
Capital leasing more
often than Comcast.
X2,35
X1,27
X0,75
Comcast has
much more
operating leases,
but less capital
leases than TWC!

Advertising Expenditures
Industry *
(in $millions) 2011 2012 2013 2012/2011 2013/2012 2011 2012 2013 2012/2011 2013/2012 2013
AdvertisingExpenditures 4231 4831 4969 14% 3% 635 653 676 2,8% 3,5% 5,3%
Advertisingas a% of Sales 8% 8% 3% 3% 1,9%
Advertisingas a% ofMargin 11% 12% 3% 4% 4,6%
COMCAST TWC5 % more
Both companies spend much more
than industry average percentage

Research&Development Expenditures
99%
1%
R&D employees in 2013
Total number of employees R&B employess
61 %
39 %
R&D employees in 2013
Total number of employees R&B employess
(in$millions) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2005 2006 2007 2008 2009 2010 2011 2012 2013
R&DExpenditures 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
BUY TWC!!
Comcast's and TWC's investments in
R&D have been almost invisible.
Neither company spent enough on it
lasts years to even disclose the figure
in its annual reports
Comcast doesn't want to make that
sort of investment in innovation as
GOOGLE!!!

Segments Sales ∆ in $M ROS ∆ in $ M TOTAL in $ M Sales ∆/Total ROS ∆/Total SALES V% ROS V%
Cable comunication 577 384 961 60% 40% 5,64% 0,97%
Cable Network 143 56 199 72% 28% 5,43% 0,65%
Broadcast Television -37 23 -14 268% -168% -13,17% 0,29%
Filmed Entertainment 25 380 405 6% 94% 5,68% 7,36%
Theme Parks 652 -28 623 105% -5% 7,19% -1,35%
Total 471 1099 1570 30% 70% 3,24% 1,72%
(Revenue in the 2nd year – Revenue in the 1st year) x
(operating margin from 1sr year/ revenue from the 1st
year)
ROS V% x Revenue in the
1st year
($41836-$39604) x ($10811/$41836)
(25,8%-24,9%) x ($39604)
Segments Sales∆in$M ROS ∆in$M TOTALin$M Sales∆/Total ROS∆/Total SALESV% ROSV%
Cable comunication 152 -17 135 113% -13% 3,43% -0,1%
SALES MIX – Cable Communication

ROS increased only by
0,97%, but its $ impact was
huge!
SALES MIX – Cable Communication

DOL, DFL and DTL
4,5% of
sales
Formulas:
DOL
-0,94 -2,07
DFL -3,87 0,42
DTL 3,62 -0,88

STRONG BUY
BUY
HOLD
SELL
STRONG SELL
11 x 1 = 11
11 x 2 = 22
4 x 3 = 12
0 x 4 = 0
0 x 5 = 0
26 45
Current Price: $57,94
45/26 = 1,73
11 x 1 = 11
11 x 2 = 22
3 x 3 = 9
0 x 4 = 0
0 x 5 = 0
25 42
Three-Month-Ago Price: $52,91
42/25 = 1,68
STRONG BUY
BUY
HOLD
SELL
STRONG SELL
4 x 1 = 4
6 x 2 = 12
12 x 3 = 36
1 x 4 = 4
0 x 5 = 0
23 56
Current Price: $154,81
56/23 = 2,43
4 x 1 = 4
5 x 2 = 10
12 x 3 = 36
0 x 4 = 0
0 x 5 = 0
21 50
Three-Month-Ago Price: $153,27
50/21 = 2,38

P/E RATIO
Current Price $57,94
P/E 18,11
P/E Forward 15,79
EPS 2014 = 3,20
EPS 2015 = 3,67
G% =
14,6%
Current Price $154,81
P/E 21,59
P/E Forward 17,47
EPS 2014 = 7,17
EPS 2015 = 8,86
G% = 24%

What will happen to the stock price next year?
Actual Price: $57,94 Actual Price: $154,81
Median Target $66,00 $173,00
High Target $72,00 $198,00
Low target $59,00 $135,00
13,9%
24,3%
3,5%
11,7%
27,9%
(12,8%)
Price is expected to rise by 13,9% and
the worst scenario expected is an
increase of 3,5% so the expectations are
good
Worst expectations than those of CC.
Price is expected to rise by 11,7% and
the worst scenario expected is a
decrease of 12,8%.

CORRELATION COEFFICIENT
Time Warner Cable 0,4080
DIRECTV 0,7730
TWX 0,8710
Disney 0,9248
S&P 0,9599
Very little correlation. This is because
TWC prices are ‘artificially’ set because
of the merger. Comcast sets the prices.
High correlation. Comcast prices move
along with the rest of the market.

Altman Z-score
Z = 1.2T1 + 1.4T2 + 3.3T3 + 0.6T4 + 0.999T5
T1 = Net Working Capital / Total Assets
T2 = Retained Earnings / Total Assets
T3 = Earnings Before Interest and Taxes / Total Assets
T4 = Market Capitalization / Total Liabilities
T5 = Sales/ Total Assets
Zones of Discrimination:
Z > 2.6 -“Safe” Zones
1.11 < Z < 2.6-“Grey” Zones
Z < 1.1 -“Distress” Zones

Altman Z-score
(in $ Millions) 2013 2012 2013 2012
Net Working Capital -4837 3277 -3082 -448
Total Assets 158 813 164 971 48 273 49 809
Retained Earnings 19 235 16 280 -55 363
EBIT 13 689 14 130 4 591 4 942
Market Capitalization 136 421 100 050 39 024 29 935
Total Liabilities 106 798 98 177 41 326 42 526
Sales 64 657 62 570 22 120 21 386
Z-score 1,59 1,43 1,26 1,18
7 %11%

Components:
2013 2012 2013 2012
Z-score in 2013
year while
only one factor
changed
%Change of Z-score
caused by one
component while
others are unchanged
Z-score in 2013
year while
only one factor
changed
%Change of Z-score
caused by one
component while
others are unchanged
Net Working Capital / Total Assets -0,030 0,020 -0,064 -0,010 1,2 1,37 -4,2% 1,11 -5,7%
Retained Earnings / Total Assets 0,121 0,099 -0,001 0,007 1,4 1,47 2,2% 1,17 -0,6%
EBIT / Total Assets 0,086 0,086 0,095 0,099 3,3 1,44 0,1% 1,16 -1,4%
Market Capitalization / Total Liabilities 1,277 1,019 0,944 0,704 0,6 1,59 10,8% 1,32 12,2%
Sales/ Total Assets 0,407 0,379 0,458 0,429 0,999 1,46 1,9% 1,21 2,8%
Z-score 1,59 1,43 1,26 1,18
COMCAST's Z-score drivers TWC's Z-score driversComcast TWC
Weight of
components:
Altman Z-score: Components Analysis
V% V%
Net Working Capital -248% 588%
Total Assets -4% -3%
Retained Earnings 18% -115%
EBIT -3% -7%
Market Capitalization 36% 30%
Total Liabilities 9% -3%
Sales 3% 3%
Market
price per
share went
up 39,1 %
Market price
per share
went up
39,4 %
Main
Driver
« The lowest weight but
the stronger influance on
Z-score while other
componensts are
unchanged»

Market price per
share
Net liquidation per
share LV/MV
2013 51,97 -5 -9%
2012 37,36 0,85 2%
2013 2012
(in $Millions) Coefficient Balance Sheet Bankruptcy Balance Sheet Bankruptcy Coefficient Balance Sheet Bankruptcy Balance Sheet Bankruptcy
Cash And Equivalents 1 1718 1718 10951 10951 1 525 525 3304 3304
Short-Term Investments 0,9 3573 3216 1464 1318 0,9 0 0 150 135
Accounts Receivable 0,75 6376 4782 5521 4141 0,75 954 716 883 662
OtherCurrent Assets 0,7 2408 1686 2055 1439 0,7 665 466 540 378
PROPERTYPLANTANDEQUIPMENT, NET 0,8 29840 23872 27232 21786 0,8 14255 11404 14004 11203
Goodwill 0 27098 0 26985 0 0 3196 0 2889 0
OtherAssets 0,5 11107 5554 13559 6780 0,5 1313 657 649 325
OtherIntangibles 0,7 76693 53685 77204 54043 0,7 27365 19156 27390 19173
TOTALASSETS 158813 94512 164971 100456 48273 32922 49809 35180
Current Liabilities 1 18912 18912 16714 16714 1 5226 5226 5325 5325
NetCash 139901 75600 148257 83742 43047 27696 44484 29855
Long-term liabilities 1 87886 87886 81463 81463 1 36100 36100 37201 36100
Liquidation Value 52015 -12286 66794 2279 6947 -8404 7283 -6245
Common Shares Outsatnding 2625 2625 2678 2678 288 288 308 308
Net liquidation pershare ($) 20 -5 24,94 0,85 24 -29 24 -20
2012 2013
Bankruptcy: Liquidation Value Analysis
The liquidation value of a firm is negative,
he firm's debt exceeds the market value of
assets
The liquidation value of a firm is negative,
he firm's debt exceeds the market value of
assets
Market price per
share
Net liquidation
per share LV/MV
2 013 136 -29 -22%
2 012 97 -20 -21%

Weighted average cost of capital
Z =E/(E+D)*Cost of equity+D/(E+D)*Cost of Debt*(1-Tax Rate)
WACC 7.64 % 7.45%
ROI 10.86% 9.22%
Comcast Corp's weighted
average cost Of capital
is 7.64%. Comcast
Corp's return on invested
capital is 10.86%. Comcast
Corp generates higher
returns on investment than
it costs the company to raise
the capital needed for that
investment. It is earning
excess returns. A firm that
expects to continue
generating positive excess
returns on new investments
in the future will see its
value increase as growth
increases.
Time Warner Cable Inc's
weighted average cost Of
capital is 7.45%. Time
Warner Cable Inc's return on
invested capital is 9.22%.
Time Warner Cable Inc
generates higher returns on
investment than it costs the
company to raise the capital
needed for that investment.
It is earning excess returns.
A firm that expects to
continue generating positive
excess returns on new
investments in the future
will see its value increase as
growth increases.
Generally it t costs more COMCAST than TWC
to raise the capital needed for the investment

What is happening in MEDIA industry now?
HOTRUMORS:Apple Collects 15%of Revenue GeneratedFromHBONOW andOtherApple TVAppsHOTNEWS: Comcast Says It’s Not Talking to Apple About Apple TV, Because Apple Hasn’t AskedHOT NEWS: Watch Out, Comcast: Apple May Soon Launch a Live TV ServiceApple TV isn't aworry for Comcast -yet

Comcast-TWC Merger Called Off
Comcast announced on the 23rd April that
its merger agreement with Time Warner
Cable and its related transactions
agreement with Charter Communications,
Inc. have been terminated. The merger,
which would have made the combined
entity the largest pay-TV operator in the
U.S., had garnered a lot of negative
attention since it was announced in
February of 2014.
FCC Chairman Tom Wheeler issued a
statement on the latest
developments, which made it clear
why he was opposed to the merger.
It was the potential power that the
combined entity would have
yielded in the high speed internet
market that worried him the most.

FINANCIAL ANALYSIS OF COMCAST AND TIME WARNER CABLE

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