Comcast Reports Strong First Quarter Results

Operating Cash Flow Surges 21.9%

Financial Statements

Condensed Consolidated Statement of Operations
Condensed Consolidated Balance Sheet
Pro Forma Financial Data by Business Segment
Pro Forma Other Data by Business Segment

Comcast Corporation today reported results for the three months ended March 31, 1999. The Company's first quarter results treat Comcast Cellular Corporation as a discontinued operation for all periods presented due to the pending sale of Comcast Cellular to SBC Communications, Inc. The Company's first quarter results exclude the results of Jones Intercable, Inc. which was acquired on April 7, 1999.

For the quarter ended March 31, 1999, the Company reported consolidated revenues of $1.374 billion, a 9.5% increase from the $1.254 billion reported in the same period in 1998. Consolidated operating cash flow, a key indicator of the Company's performance, increased 21.9% to $425.1 million from the $348.7 million reported in the same period in 1998. The Company's 1999 results include the results of the Broward County, Florida, Delaware/Maryland and Roseville, California cable systems acquired on March 31, 1998, April 1, 1998 and December 31, 1998, respectively, and exclude the results of the Company's Primestar operations and the operations of Comcast UK Cable which were sold on April 1, 1998 and October 29, 1998, respectively. On a pro forma basis, as if these acquisitions and divestitures were effective on January 1, 1998, the Company's revenues and operating cash flow for the three months ended March 31, 1999 would have increased by 14.2% and 21.2%, respectively, over 1998.

Brian L. Roberts, president of Comcast, said, "This has been an incredible quarter for our Company as we announced or completed transactions that will ultimately expand our cable operation to eight million customers, strengthen our service territories and help us accelerate the delivery of new products and services to our customers."

Mr. Roberts continued, "In addition, operating cash flow growth of 22% for the first quarter demonstrates the continuing strength of our cable, commerce and content operations."

Mr. Roberts added, "It has been exciting to watch the customer acceptance of our new broadband product offerings. Our Comcast Digital Cable and Comcast@Home high speed Internet access services are now available to millions of homes and customer demand continues to exceed our expectations. QVC posted phenomenal results. With 38% growth in operating cash flow, QVC demonstrates once again that it is the leader in electronic retailing."

Cable division revenues for the three months ended March 31, 1999 were $604.8 million, representing an 11.7% increase from the $541.2 million reported for the same period in 1998. Operating cash flow for the quarter was $280.5 million, an increase of 12.5% over the $249.4 million reported for the same period in 1998. On a pro forma basis, as if the Florida, Delaware/Maryland and California acquisitions were effective on January 1, 1998, the cable division's revenues and operating cash flow for the three months ended March 31, 1999 would have increased by 9.3% and 10.1%, respectively, over the same period in 1998. During the first quarter of 1999, the division added over 20,600 basic customers, a twelve-month trailing growth rate of 1.3%. During the first quarter, the cable division continued to expand delivery of its Comcast Digital Cable service, ending the quarter with 129,000 digital cable customers, up nearly 51,000 for the quarter. Today, Comcast has 160,000 digital cable customers and the service is available to more than 60% of the Company's cable customers. The cable division also expanded delivery of Comcast@Home high speed Internet access service, adding more than 20,000 customers during the quarter for a total of nearly 72,000 customers in nine markets.

QVC revenues increased 19.3% to $649.6 million in the first three months of 1999 as compared with the $544.6 million reported in the same period of 1998. Operating cash flow for the quarter was $130.9 million, an increase of 37.6% from the $95.1 million reported in the first quarter of 1998. QVC's results reflect double-digit revenue and operating cash flow growth in each of its businesses in the United States, the United Kingdom and Germany.

The Company's Board of Directors approved a two-for-one stock split in the form of a 100% stock dividend payable on May 5, 1999 to shareholders of record on April 20, 1999. Shareholders received one additional share of Comcast Class A Special Common Stock for every share of Class A Special Common Stock, Class A Common Stock and Class B Common Stock held on the record date. Share and per share data for all periods presented have been adjusted to give effect to the stock dividend.

On a consolidated basis, the Company reported net income for common stockholders of $73.5 million or $0.10 per share for the three months ended March 31, 1999, which includes a loss from discontinued operations of $20.1 million or $0.03 per share. The Company reported a net loss for common stockholders of $86.0 million or $0.12 per share for the three months ended March 31, 1998, which includes a loss from discontinued operations of $9.9 million or $0.01 per share. Income from continuing operations before extraordinary items for the three months ended March 31, 1999 was $101.8 million or $0.13 per share, as compared to a loss from continuing operations of $69.0 million or $0.11 per share for the three months ended March 31, 1998.

This press release may contain forward-looking statements. Readers are cautioned that such forward-looking statements involve risks and uncertainties that could significantly affect actual results from those expressed in any such forward-looking statements. Readers are directed to the note contained on page one of Comcast's Quarterly Report on Form 10-Q for a description of such risks and uncertainties.

Comcast Corporation (www.comcast.com) is principally involved in the development, management and operation of broadband cable networks and the provision of programming content through principal ownership of QVC, Comcast-Spectacor and Comcast SportsNet, a controlling interest in E! Entertainment Television and through other programming investments.

Comcast's Class A Special Common Stock and Class A Common Stock are traded on The Nasdaq Stock Market under the symbols CMCSK and CMCSA, respectively.

COMCAST CORPORATION
Condensed Consolidated Statement of Operations (Unaudited)
(in millions, except per share data)

	Three Months Ended March 31,

	1999	1998

Service Income	$724.4	$709.8
Net Sales from Electronic Retailing	649.6	544.6
	1,374.0	1,254.4

Cost of Goods Sold from Electronic Retailing	390.5	332.4
Operating, Selling, General and Administrative Expenses	558.4	573.3

Operating Cash Flow	425.1	348.7

Depreciation Expense	116.6	117.1
Amortization Expense	121.9	122.2
Interest Expense	111.2	120.4
Investment (Income) Expense	(127.8)	1.6
Equity in Net (Income) Losses of Affiliates	(1.1)	129.5
Gain from Equity Offering of Affiliate		(59.6)
Other Expense (Income)	(0.2)	(2.7)
	220.6	428.5
Income (Loss) Before Income Tax Expense, Minority Interest and Extraordinary Items	204.5	(79.8)

Income Tax Expense	87.4	6.4
Minority Interest Expense (Income)	15.3	(17.2)

Income (Loss) From Continuing Operations Before Extraordinary Items	101.8	(69.0)

Loss From Discontinued Operations	20.1	9.9

Income (Loss) Before Extraordinary Items	81.7	(78.9)

Extraordinary Items	(0.7)

Net Income (Loss)	81.0	(78.9)

Preferred Dividends	(7.5)	(7.1)
Net Income (Loss) for Common Stockholders	$73.5	($86.0)

Basic Earnings (Loss) For Common Stockholders Per Common Share
Income (Loss) From Continuing Operations Before Extraordinary Items	$0.13	($0.11)
Loss From Discontinued Operations	(0.03)	(0.01)
Extraordinary Items
	$.10	$(.12)

Basic Weighted Average Number of Common Shares Outstanding During the Period	741.4	716.2

Diluted Earnings (Loss) For Common Stockholders Per Common Share
Income (Loss) From Continuing Operations Before Extraordinary Item	$0.12	($0.11)
Loss From Discontinued Operations	(0.02)	(0.01)
Extraordinary Items
	$0.10	($0.12)

Diluted Weighted Average Number of Common Shares Outstanding During the Period	814.9	716.2

Common Cash Dividends per Common Share	$0.012	$0.012

COMCAST CORPORATION
Condensed Consolidated Balance Sheet (Unaudited) (in millions)

	March 31, 1999	December 31, 1998
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$1,548.7	$870.7
Investments	4,978.4	3,653.4
Accounts receivable, net	487.8	549.3
Inventories, net	321.4	343.8
Other current assets	202.8	207.1
Total current assets	7,539.1	5,624.3

INVESTMENTS	1,178.5	602.4

PROPERTY AND EQUIPMENT	3,910.6	3,886.7
Accumulated depreciation	(1,427.3)	(1,362.3)
Property and equipment, net	2,483.3	2,524.4

DEFERRED CHARGES	8,305.5	8,214.5
Accumulated amortization	(2,229.5)	(2,148.2)
Deferred charges, net	6,076.0	6,066.3

	$17,276.9	$14,817.4

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses	$1,399.7	$1,600.3
Accrued interest	128.7	73.5
Net liabilities of discontinued operations	188.4	165.2
Deferred income taxes	1,592.1	1,140.1
Current portion of long-term debt	122.0	113.5
Total current liabilities	3,430.9	3,092.6

LONG-TERM DEBT, less current portion	6,168.7	5,464.2

DEFERRED INCOME TAXES	1,697.1	1,500.1

MINORITY INTEREST & OTHER	840.3	834.0

COMMON EQUITY PUT OPTIONS	111.2	111.2

STOCKHOLDERS' EQUITY
5% series A convertible preferred stock	31.9	31.9
5.25% series B convertible preferred stock	547.8	540.7
Class A special common stock	699.5	698.4
Class A common stock	31.5	31.7
Class B common stock	9.4	9.4
Additional capital	2,941.4	2,941.7
Accumulated deficit	(1,416.8)	(1,488.2)
Unrealized gains on marketable securities	2,185.3	1,049.5
Cumulative translation adjustments	(1.3)	0.2
Total stockholders' equity	5,028.7	3,815.3

	$17,276.9	$14,817.4

COMCAST CORPORATION

Pro Forma Financial Data by Business Segment (Unaudited)(1) (2)

(in millions, except margin data)

Cable

Electronic
Retailing

(3)
Other

Total

Three Months Ended March 31, 1999

Revenues

$604.8

$649.6

$119.6

$1,374.0

Operating Cash Flow

$280.5

$130.9

$13.7

$425.1

Operating Cash Flow Margin

46.4%

20.2%

11.5%

30.9%

Capital Expenditures

$105.6

$11.0

$5.8

$122.4

Total Debt (4) (5)

$3,553.6

$671.9

$2,065.2

$6,290.7

Three Months Ended March 31, 1998

Revenues

$553.2

$544.6

$105.2

$1,203.0

Operating Cash Flow

$254.6

$95.1

$1.1

$350.8

Operating Cash Flow Margin

46.0%

17.5%

1.0%

29.2%

Capital Expenditures

$141.6

$19.5

$4.7

$165.8

Total Debt (4) (5)

$3,449.9

$832.5

$732.7

$5,015.1

⁽¹⁾

The Company acquired cable systems in Roseville, California, Delaware/Maryland and Broward County, Florida on December 31, 1998, April 1, 1998 and March 31,1998, respectively. The Company deconsolidated its Primestar operations on April 1, 1998. The Company sold its United Kingdom cable and telecommunications operations (Comcast UK) on October 29, 1998. Pro forma financial data by business segment is presented as if the California, Delaware/Maryland and Florida acquisitions occurred at the beginning of 1998, and exclude the results of the Company's Primestar operations and the operations of Comcast UK for all periods presented. The information presented above is not necessarily indicative of what the results would have been had the Company operated the California, Delaware/Maryland and Florida cable systems since the beginning of 1998. Historical financial data by business segment, as required under generally accepted accounting principles, is available in the Company's Quarterly Report on Form 10-Q.

⁽²⁾

Consolidated results do not include the operations of Comcast Cellular Corporation, a wholly owned subsidiary of the Company, which the Company agreed to sell to SBC Communications, Inc. in January 1999. The results of Comcast Cellular are presented as a discontinued operation in the Company's condensed consolidated financial statements.

⁽³⁾

Other includes Corporate and certain operating businesses, including E! Entertainment and Comcast-Spectacor, and elimination entries related to the segments presented. Other excludes the results of Primestar and Comcast UK for all periods presented.

⁽⁴⁾

Total debt includes both current and long-term portions as reported in the Company's unaudited condensed consolidated balance sheet, excluding Comcast UK debt as of March 31, 1998.

⁽⁵⁾

As of March 31, 1999 and 1998, total cable debt includes $772.0 million and $817.0 million, respectively, of third party indebtedness attributable to the Company's indirect 55% owned subsidiary, Comcast MH Holdings, Inc. (Maclean Hunter). As of March 31, 1999 and 1998, total cable debt also includes $91.3 million and $708.1 million, respectively, of notes payable to affiliates, including accrued interest thereon.


COMCAST CORPORATION
Pro Forma Other Data by Business Segment (Unaudited)

	1Q99	1Q98	Growth
Cable(1)
Homes Passed (000's)	7,452.5	7,327.7	1.7%
Basic Cable Customers (000's)	4,551.6	4,493.6	1.3%
Basic Cable Penetration	61.1%	61.3%	-0.2 pts
Net Subscriber Additions (000's)	20.6	25.4	-18.9 pts
Customer Revenues (in millions)
Recurring(2)	$530.7	$494.7	7.3%
PPV	$16.2	$11.0	47.3%
Advertising	$33.7	$28.7	17.4%
Other (3)	$24.2	$18.8	28.7%
Total Recurring Revenue per Customer	$38.98	$36.83	5.8%
Total Monthly Revenue per Customer	$44.42	$41.19	7.8%

Comcast @Home
"Modem Ready" Homes Passed (000's)	1,925.7	1,074.2	79.3%
Customers (000's)	71.6	16.8	NM
"Modem Ready" Penetration	3.7%	1.6%	2.1 pts
Net Subscriber Additions (000's)	20.1	7.1	NM

Digital Cable
Cable Customers (000's)	129.0	-	NM
Net Subscriber Additions (000's)	51.0	-	NM

QVC
Revenues (in millions)
Base Business(4)	$554.4	$482.1	15.0%
UK	$66.2	$50.5	31.1%
Germany	$20.2	$7.5	NM
Other	$8.8	$4.5	95.6%
Gross Margin
Base Business (4)	39.5%	39.0%	0.5 pts
UK	41.2%	40.1%	1.1 pts
Germany	30.6%	23.9%	6.7 pts
Other	75.3%	50.5%	24.8 pts
Operating Cash Flow (Deficit) (in millions)
Base Business (4)	$124.3	$96.7	28.5%
UK	$9.2	$4.5	NM
Germany	($4.1)	($5.9)	30.5%
Other	$1.5	($0.2)	NM

⁽¹⁾

The Company acquired cable systems in Roseville, California, Delaware/Maryland and Broward County, Florida on December 31, 1998, April 1, 1998 and March 31, 1998, respectively. Pro forma other data by business segment is presented as if these acquisitions occurred at the beginning of 1998. The information presented above is not necessarily indicative of what the results would have been had the Company operated these cable systems since the beginning of 1998.

⁽²⁾

Recurring Cable customer revenues include basic, pay, digital, converter and guide revenues.

⁽³⁾

Other Cable customer revenues include installation revenues, commissions from electronic retailing, revenues from Comcast @Home and other product revenues.

⁽⁴⁾

Base Business includes domestic channel and iQVC.