Benefits Of Comcast Cable And Nbcuniversal

1747 WordsMar 26, 20177 Pages
Comcast had an exceptional year in 2016. Stock prices reached an all-time high, while revenue, assets, and operating cash flow toppled analysts’ projections. The global media and technology company has two primary businesses: Comcast Cable and NBCUniversal. These two businesses make up the five reportable business segments which are: cable communications, cable networks, broadcast television, filmed entertainment, and theme parks. Below is the revenue, operating income before depreciation and amortization, and operating income of each business segment. For 2016, cable communications represent the greatest proportion of each graph. Comcast cable is one of the nation’s largest providers of video, high-speed internet and voice services to…show more content…
Furthermore, this acquisition explains the currency translation adjustment made in the theme parks segment during 2015 and 2016 to represent current United States dollars. Additionally, another enormous acquisition was in the filmed entertainment segment in 2016. Comcast acquired DreamWorks Animation for $3.8 billion, of which $2.7 bilion was recognized in 2016 (Stelter, 2016). With this acquisition, NBCUniversal CEO Steve Burker said “Dreamworks will help us grow our film, television, theme parks and consumer products businesses for years to come” (Stelter, 2016). Consequently, the entrance into the filmed entertainment and theme parks segment explains the decrease in gross profit percentage from 2014 to 2016 along these business segments. Moreover, Comcast closed a multi-year movie distribution deal with Alibaba to tap into the Chinese Market, which Furious 7 and Jurassic World made almost $630 million in the box office (Krause, 2015). This deal was a move towards distribution of their filmed entertainment segment outside of the United States. Moving forward, cable networks increased $232 million, which is in part to the reclassifications of certain operations and businesses from corporate and other to this segment. Be on the lookout for NBCUniversal’s new $3.3 billion park in Beijing set to open in 2019 (Hertzler, 2014). In conclusion, Comcast’s goodwill is $35,980 million along all lines of
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