Comcast (CMCSA) 26 Jan 232022 Q4 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to Comcast's Fourth Quarter and Full Year 2022 Earnings Conference Call. At this time all participants are in listen-only mode. Please note that this conference call is being recorded.

I will now turn the call over to Executive Vice President, Investor Relations, Ms. Marci Ryvicker. Ms. ahead, go Please Ryvicker.

Strong, and also Mike On who Cavanagh Dave Jeff and joined operator, formal will are while available remarks, are morning's for Brian by Dave, Dana Shell Jeff Roberts, and Dana Watson, and welcome, you, Mike this make will everyone. and call also Brian be Thank Jason Armstrong, Q&A.

subject to you to our safe include and remind that Let conference contains forward-looking risks me harbor certain which statements now and uncertainties. Slide X, refer may this you call disclaimer

addition, non-GAAP during the measures our trending this to In financial call, we for financial X-K refer will schedules reconciliations certain non-GAAP GAAP. see of these measures. Please to and

call to turn that, for me With Brian over let his the Roberts comments. Brian?

I'm executed through to our of returned highest and And we year just everyone. really a adjusted increased achieved EBITDA the history. $XX.X Thanks, proud throughout capital recurring activity. robust of We in billion Marci, the team repurchase shareholders consecutive revenue, adjusted dividend, XXth EPS we share for which both record levels our and good how XXXX. company's and our morning, of

experience we best constantly and absolute innovating evolving all this transition particularly We our interaction. broadband initiatives, which us I success collaboratively have to attribute progress, key the did point network incredible accelerating growth Mobile, this showing of also great the talent are work as our all to in so are in but across theme parks. our while investment to we Xfinity at and organization, XXG ensure our who customers Peacock every that with

to taken the which, perform actions when we residential cable, appropriate and continue in XXXX. where our volume quarter for drivers position is we right Comcast identified confirm apart cost At strong efficiencies between with performance rate matter and to the for this I and and and growth Xfinity financial mix start costs combined have that fourth the we so balance to broadband, well what environment successfully no past strong future. both the to and with Mobile our to macro might quarter, plan want have us sheet, in are our striking balance year us we cutting the drive sets also remain bring. investing What do very between business the

on We have intense the to always having comes and absolute products capacity, reliable maintained network. which most an and the focus experiences, best providing efficient highest broadband most down

access footprint our as way is early are evolution the across to DOCSIS entire the symmetrical speeds, unique customers through this Our XXG that pursuing around entire benefit huge will we they all as and for X.X some ecosystem a have built year. multi-gigabit an this to

only it to It's certain to innovate will usage. solidifying capabilities for transition in comes extremely enable tangible than not speed important also the software-based and and be leadership operating what ever for both to demand is faster broadband, increases continued our in is marvelous given virtual us which company provide our a before, to investors position will it the AI with infused great expenses, when benefits capital network as but

fact, In today. of see we this to signs continue

are Our our now month, consuming Gigabit now comprise products our residential XXX gigabytes customers subscribers. customers one-third and broadband-only of on data broadband every Plus nearly of

to to another receive the and homes in businesses to for services. value further more homes In the addition we ability us total customer that the is to that extend do businesses great creating from not networks opportunity our our current base today, and penetrating have our U.S. pass and

the XX.X million maintaining to level million we around CapEx XXXX, we reaching achieved of To in add we that X.X% year. by increased the X accelerate still while in passings intensity end end, expect where are or $XXX,XXX in XXXX, nearly our to we and aiming by XXXX, the same

We disciplined what to to pursue we achieve. and approach, been have only are areas able a have historically return that taking similar profile those we'll a

our integral of commercial is strategy quarter net to and how in to in part overall broadband our example over five started customers. line current penetration another residential additions, Wireless X Only record which was an of we total selling runway continue ahead, of bringing segment, of we existing great are base to wireless This just at of have of business area our playing products lines we're shine. cable, another past X% in customers, where it's we getting us more plenty and offering years. is into an base million just our

you are our position to Verizon, and win convergence. in best WiFi network, overlay When MVNO we with broadband combine in the

not a have does leg a capital-light that network or involve strategy with trade-offs. up We on customer competitors our

a Paradise, Ticket are Puss Nope, number X through with studio in strong have which great resonating. And office fueled also the Peacock our select and first Jurassic, box including all really so MXGAN, releases. great in in NBCUniversal, parks. momentum our seeing Pay-One and by carryover date to film in Bone, we really worldwide success box in Black the had day And momentum office Peacock At quarter Boots, to slate. of all, some NBCUniversal, is window intellectual all into Halloween, a strong our continued Minions, across XXXX, slate, We and property of had terms

than the over double year added subscribers, we more million started. alone. paid million quarter where Peacock fourth ended X And subscribers we with the paying over XX in

Cup, also of events films several League, just Our next-day sporting and mentioned broad-based, exclusive some our originals the by new of success the I fueled World like was NFL, Premier but NBC. broadcast

churn cadence which we more of XX. launches, second the see half experience expect content engagement in our fall to And on we continue positive and trends will in date, based and our subscriber ahead, Looking our follow ARPU. to

at our XXXX. three This the EBITDA past Mark parks. quarter driven Woodburry was attendance first pre us of was since segment, Orlando had a number that It hit had new performance records for pandemic Parks fourth we the led a this business, the by the entire as Hollywood, for year Japan fabulous quarter. CEO highest and EBITDA of and by all levels best surpassed and

in significantly exciting our While we at in seeing demand attendance XXXX, are COVID year. to Park Beijing some the by start impacted was

the returns generated I'm seek extensions. have continue excited our parks. really recently to to Given about we excellent announced to-date, our expand two we ways

audiences and for park First year experience the specifically universal Vegas. near around first younger Las Dallas, designed horror entertainment in

of innovative helped new substantial are IP, had of ways utilize growth while from our both Illumination, our in and parks. These to also our which DreamWorks brand, extending fuel all including

are by to approach a our linear subscriber base. business, Our video we taking managing declines disciplined cost

in global months and number weeks a are to you platform, our see of ahead. will technology and We invest continuing from in us announcements the

we will in our one Flex, voice customer user launch winning U.S. the global Emmy award for interface partners. Glass, the world Xfinity, example, will International XXXX, XX, controlled experience. around same get entertainment For and Every Sky XUMO, at

scale the This developers in enviable programmers, with only managing conversations puts to talent. in not challenges the brings macro and are app when us Europe. operational economic through it distributors, we comes At us but it position efficiencies, also OEMs, Sky,

staying focused best entertainment and to provide customers retention While experiences. on continuing and our intensely connectivity with the

us current And We're at mobile now broadband subscribers. the TV mobile top Sky surpassing had million growing over X.X between we the seeing lines. narrowing are the Sky is number gap Glass In encouraging sitting with some provider one and provider, the million the fastest model. Sky selling three UHD UK, results. Broadband,

performance, capture team that long to have way. of strong path convinced right of our and enable high across we challenges financial consistently many overcome up, the whatever the underscore strategy. scale healthy and shareholders successfully term capital our us balance growth the we talent happen our I'm how Wrapping sheet, company are right to and return record the capabilities our opportunities on along execute

So the Could before for and Chief not promoted and more the be Officer, more call, to team's forward to want Armstrong, I Mike Financial drive recently Cavanagh. handing succeeding our shareholders. create congratulate value leadership over ability to us continue Jason to confident

Mike, over you. to

morning, good And Brian. Thanks, everyone.

like say have of to successor. of it's be to be that And been I hands. just a expert as Comcast I'd with couldn't company last our plus prouder proven CFO that Jason, Jason in pleasure the leadership the Knowing financial serving years. is seven for my and First,

year, it Since hand Jason this quarter CFO call for first the of as until I the handle take Jason over April. early new in to and in will portion over call didn't the CFO

to $XX.X to full and billion to I'll now four consolidated our full X.X% to on quarter for for increased X% for increased the for X% fourth year. begin Slides X.X% quarter, five XXXX the the to and discuss the and $XX.X EBITDA billion financial So decreased billion $X under year. fourth results. just billion Revenue $XXX.X Adjusted

and quarter, severance increased for increase, year results each include booked $XXX million X.X% period. higher expenses totaling which $XXX this The businesses, million, of EBITDA our full the adjusted in the than in the fourth prior is Including year. quarterly X.X%

and as billion COVID. of for full while X.X% as of theme cash $X.X well quarter increased parks, $X.XX post creation to working for $XX.X year. year, absorbing the the EPS XX% for as content to Peacock share Adjusted billion fourth investments fourth generated And increased $X.XX the full and we the in quarter for and flow free normalizes higher capital

$XX.X cable excluding year's higher Cable Now on increased to $XXX improved basis starting margin EBITDA EBITDA billion improved is and severance quarter, by high Slide basis $XXX XX.X%. billion, X.X% to These results include million EBITDA and million XX of X.X% severance EBITDA let's points turn Communications points results last expense, a X.X% six. to cable increased cable year-over-year to XX.X%. which our of $X.X compared record revenue margins to with increased segment to Cable business XXX fourth

resulted strong we Southwest this or to market. severe These in of in Ian Florida, in included which many impact results also serve the the homes Hurricane damage loss

we we XX,XXX the Excluding lost we XX,XXX XXXX we relationships versus added would versus estimate customer the loss have customers have that impacts, the XX,XXX approximately reported. we broadband approximately reported. And hurricane would

XXXX consistent Overall, by in levels new two reflecting which remained below fairly prior our customer offset with connections, lower quarter were of broadband the the levels. customer churn well results quarters, fourth

and higher Now and let's advertising last revenue, business to partially is organic adjusting customer of financials increased the driven Cable in our growth growth revenue and by growth related customer is to wireless revenue. video Broadband quarters when Broadband growth voice increased discuss over revenue year. driven ARPU we've in when ARPU by last strategy. was cable ARPU couple X.X% by broadband base compared and more detail. year. of last our X.X% with some consistent X.X% for credits lower This year-over-year, offset the generated services similar COVID in

consistently focused We more by optimizing customers should broadband adding our provide and to quarter to has growth. attaching The broadband growth the continue on value, services. deliver which more other include experience, higher relationships are to services as well of tiers, this and ARPU capabilities, customer elements rate, as best increased so as

of driver residential growth in primary expect ARPU broadband the our growth continue We will to be XXXX. revenue

Wireless on prior highest year fourth X.X%, the increased lines customer Masergy quarter. million which service quarter revenue which increased fueled by including which mainly growth in at revenue, was this quarter Services acquisition lines period, of as driven beginning the in results number quarter, added both record. is in the closing our in X.X of this any by of XX%, We Business XXX,XXX in net lap of additions the includes for lines. the and revenue the we XXXX,

increases Revenue rate, attach primarily taking and our higher rate rates faster some data driven services. of on was our advanced growth speeds, customers including by products, of

venture those X.X% advertising advertising revenue, decreased joint offset by for our revenue with business. that now part reflecting in offset by at partially increased driven revenue advanced Advertising of advertising XUMO, the local advertising political Charter. revenue X.X%, decline growth Adjusting core our cable of absence items, business, is partially strong our solid by

partially of X.X%, of Video losses. offset XX% driven primarily by revenue increase residential ARPU a implemented XXXX. X.X% year-over-year net And voice rate due growth customer revenue by the reflecting beginning we last, losses, year-over-year declined at to declined customer

again quarter expenses year-over-year and X.X%. which lower higher higher customers increased Turning include offset the costs, $XXX video increased rates. partially expenses, programming expenses, non-programming Non-programming million decline by severance expenses. the higher offset fourth reflecting costs, expenses decreased $XXX to X.X%, million expenses. reflecting X.X%, contractual severance which partially Cable higher in included by Communications in Programming

make an were expenses year, and last levels these growth driven pandemic compared flat technical in severance, to expenses bad increased normalized debt as by Excluding our we support reflecting an increase activity to product return in decline and more pre we and running offset in the were to a customer to business, These marketing business. lower service in and customer in experience. due wireless promotion expenses levels, efficiencies improvements our continue by

severance expansion expense, on EBITDA in to X.X% focus margin by excluding higher efficiency XXXX, XXX basis cost our EBITDA points coupled XX.X%. increased margin growing by Our our on the we margins connectivity high businesses, with controls, increasing focus and operating year growth drove grew and strong full EBITDA and

the our approach higher cost thereafter. believe further quarter, to profitability, the both our this reduction benefits including running and business, XXXX drive efforts and us We margins, that in disciplined to positioned from expand

Now, the Media its seven Peacock, driven XX% Slide with to revenue let's $XXX expense increased $X turn million World by revenue decreased million results, XX%. in Starting nearly excluding billion, NBCUniversal Cup. to billion, $X.X for EBITDA X.X% fourth mainly doubled X.X% quarter, severance revenue to EBITDA of total of including to and decreased Telemundos broadcast severance the to $XXX NBCUniversal. which million, quarter $XXX and increased

decline and linear Cup, healthy as incremental from contribution the Advertising revenue a partially growth by in as advertising, a million an increased World X%, political $XXX advertising. at reflecting of well Peacock strong offset

declined advertising increases growth Peacock well in X.X% distribution driven at networks which subscribers, softening contractual paid subscriber declines. as increased in partially revenue If compared higher revenue as we reflecting to last doubled market, X.X% Cup, the linear offset reflecting advertising overall rates more than by by exclude year, the World at our

$XXX expect World our League we billion. as And Premier our date be line titles, XXXX, at $X.X Media in content, and cost $XXX Cup. and quarter ago. around EBITDA next-day a of the was full provided broadcast year Peacock, such EBITDA of to million modestly the content, $X Pay-One losses with the loss up the NFL year exclusive reflecting EBITDA new to and for loss including day like billion Halloween, releases fourth a million in was Peacock's robust of outlook lineup Peacock we Bravo

previously, and, said we've peak improve. As will Peacock we believe be for XXXX there, losses from steadily

Cup. EBITDA reflecting fourth XX%, the Media in revenue World the decreased fairly higher broadcasting lower the with Excluding despite the associated quarter costs flat and Peacock, expenses

to Looking quarter. the first

Peacock, EBITDA, at be our we costs, excluding Media we on the remain continue managing to linear focused by While expect to impacted underlying networks. pressures line top

Ticket the to XX% driven by increased in up due growth by growth licensing Violent Revenue Studios. of carryover Content content our in television healthy releases, the benefit theatrical as was Boots, windows Theatrical film increased as Puss Ends. to revenue Moving including to of and licensing $X.X and and the acceleration recent Night licensing. driven billion to success in revenue. well Paradise, titles XX% XX% Halloween in

marketing offset expense, higher well timing million quarter, promotion and an for reflecting and slate quarter's by reflecting the programming increased production million $XXX $XXX EBITDA to of the this size the as higher revenue theatrical costs. partially in increase and as the corresponding

XX% restrictions. which increased U.S. at our park to our Beijing, At and impacted on EBITDA for record offset the Theme increased to results quarter. million, partially parks were EBITDA by Parks, $X.X These our our billion, $XXX in by in of XX% fourth growth driven was by level negatively revenue COVID-related Japan while highest

for and both high guest fourth of to EBITDA the At and end Japan strong our rebound delivered the and EBITDA March at U.S. in since year-over-year record demand see Orlando year-over-year and the quarter. growth with parks, Hollywood with lifted we attendance Universal strong were restrictions continued spending capacity delivering continue to up quarter.

were let's to Reported currency but on for Now turn will speak X currency Sky. I translation meaningfully impacted the strengthening due Slide constant to dollar, to by basis. Sky's a results results

compared For billion. revenue the $X.X was last year to relatively at quarter, consistent Sky fourth

growth driven and declines reflecting Direct-to-consumer by wireless to also broadband by revenue Italy. and offset revenue last in year, Germany compared consistent was the U.K. in

in were macroeconomic team's customer additions environment Italy These reflect across the quarter with customer U.K., in wireless driven net added basis, a strong and all and broadband Germany. execution Europe. positive by our XXX,XXX a across three challenging additions and On additions customer we relationships streaming, the territories,

our revenue the the increased the Sky revenue revenue, rest reflecting macro X.X% and content, in licensing lower the driven revenue X.X% by content out of Rounding entertainment driven by timing advertising decreased Cup and World primarily of environment. U.K., the

is severance to $XX EBITDA. million XX% quarter. expense, decreased of compared last to which year's to Turning Sky's $XXX $XX million, including fourth million higher EBITDA

EBITDA which higher reflecting and driven of quarter during businesses four last of Cup. fourth Excluding the timing declined to direct offset by to residential due paused lower and expenses, increase as accommodate compared weeks broadband programming other in our in by sports mobile year, X% network to games the the costs growth mostly were EPL an were programming World costs severance,

incur in which higher played. reflecting are now we costs were the sports and games season will However, remainder is of first the of of XXXX, half higher games number paused as the the extended the

flow cash allocation free with up wrap capital on I'll Slide and Now X.

Parks free Theme higher as post I As content in increased as Peacock normalizes around working well absorbing mentioned investments flow COVID. XXXX, while $XX.X previously, creation and as in generated billion we in capital cash

consolidated year capital intensity billion X.X% At NBCUniversal CapEx total by Cable to $XXX at to or spending a $XX.X by coming to further at total increased capital increased Sky. Cable, at Full increased and our XX.X% $X.X million strengthen offset extend driven XX.X% decrease spending primarily due investment investments partially network. billion and or in with

CapEx levels expect passed over DOCSIS to similar accelerate In about next at XXXX homes million years. we entire around to our stay growth to to XXXX, the X and network continue to intensity to we X.X transition XX%, broadband our few aim as

attractions spending capital Donkey and of like Kong driven parks which around increasing World continued $XXX increased at Super Nintendo CapEx Epic was reflects $X.X Hollywood million $X.X investment NBCUniversal total billion, our Japan. at billion in by and new

serve scale parks around recently XXXX required to Parks announced our of year's Epic higher leverage we continue at plan in in contributes to $X work year, over these investment for expect build billion last in on we extensions $X.X the model as the capital park is Working market opportunity to we a The by billion which of investment develop year enable Theme was increase Universal reflecting already post-COVID XXXX, large nowhere to the to In that growth content rather open CapEx earlier. Epic, as mentioned or last level, near creation. begin extensions but a over $X.X a us future. can to our and Beijing billion ramp increase even and

and the We dividend year ended shareholders, times allocation. billion in total capital share with to at $XX.X including Turning billion to of leverage net payments a $X.X in billion X.X returned repurchases. and $XX

we continue which leverage will expect to strong For current maintain expect I levels, returns. XXXX, at support continued to capital around

the This dividend we to capital XXth shareholders. to balance amount annual we We're businesses organically raising balanced and also share, our long-standing reflects to of announced maintaining capital sheet are increase. allocation share a policy. strong As this by a $X.XX $X.XX consecutive our the morning, in very investing per healthy a committed returning while

us portion for Thanks call. I'll of question-and-answer the this joining Marci, turn back lead will to on the morning. call who it the

Mike. the please. let's open for Thanks, call Operator, Q&A,

Our [Operator go from Doug Instructions] Mitchelson comes question with Credit first Suisse. Please ahead.

to Good you calendar Mike the an well that, and congratulations congratulations thank President, And company I year, and Brian we're to new morning. vision turning the the CFO to updated the on promotion evolving wanted giving on see ask time. And Jason, you. Brian, how since role. for over your by as for a way. Mike, company

that, the of part growth that see company the for well. whether notable As best shift company how competition addresses as convergence broadband media streaming challenges and interested and capital opportunities and connectivity are of would certainly allocation investors cable you

next years? five over how and you has the the evolved And the do three company challenges Thanks. address how to opportunities? So

It's Mike. Doug. Thanks,

if can So maybe he likes. on pile crack, first then Brian I'll and take a

that the think moment. the vision So think where we of about bit it's stand -- at of years, reflection next a how few I a in little requires you

what reflect if So truly results. you XXXX excellent at and really operating look I on are

record to the to into results discipline, EBITDA. record down financial of the in adjusted we organization operating management And and great businesses people deep had, revenues running discipline kudos kind day-to-day. fundamentally produce that's So discipline, the the the

returning a it out little both opportunity which resources things we and in are them. real at zoom balance. so question, our us is in a our us record leverage, those what after X.X at is the allows to of in it what are then you puts When bit, the go opportunity, where position have capital times go good industry do your our we To challenges

as of say I'd in. but call, that so an you the the heard we are organic way you challenges take after that go number opportunities going Obviously, to we're And emerge, we've it investments got recount all we there, XXG. in the can network it the see. on pile and others excellent I'll and currently a usually But we'll are Dave after But path do. those them,

talked downstream end at So that's way DOCSIS rolling is to a symmetrical we've to network year. in in get of the as start a We're going going few have capital-efficient going to years. X.X very out upstream, back this short a us, about, that to

tremendous commitment of WiFi the there put and our as talk I and be So surrounding about heard Flex whether like, it before. that network think is best or amount to network, the have you've services out a to us

about heard the of behind tech platform, going platform single of global the in global here Peacock tech many use can tech You we we all to what single platform. it. in that integrating a Brian the scaled in a in ways. XX to U.K., We're do glass U.S., the mentioned get build

know our You have XUMO with capability that for outside example, to Charter, footprint. of the we that partnership take about

to we've to and it, five the have in continue drive on And along capital-light strategies a we years, the We side, wireless. I how for is we're for think a growth it's of now. way, looking going the that been approach. but Wireless, put business X And Cable the it do a then investment at finally, totality set in it's lines cable great ahead. million

expect I'd driving to to us those keep so along lines. continue say, And

has said, not hand. to Jeff On think strategy else's our going place company. absolutely repeatedly we're somebody side, the is Media we the right for Peacock And

what to money than migrating excellent but And XX from content as NBC as cable networks. in investment less bit And XX some year move paid peak and see ago. so creating We that and an of We on year we year doing. of quite this getting a like there, our we we're universe. to had subs a year in we'll business eyeballs paid plan. have the We spend more a phenomenal keep content that coming subs million a streaming

then a XXXX. And earlier, of build I'll I in park, in 'XX to smaller phenomenal Orlando, got opening levels there leveraging as February. in we'll great said in sort increase Dallas Las this opening And that ahead mention ramping theme Parks, And what's new in product to around our going Epic year then a the in finally, We're Nintendo Vegas. parks. we've in some Hollywood peak be spend we with of of innovation ideas, Nights that opening. with we're that some the have Hard park, Hollywood scale kids-based and theme universe

think So out issues that investment all our different are the out agendas I big these businesses. go that across there are

I agenda an primarily across and we're positioned investment businesses continue in drive organic the growth years think well to ahead. to drive our So

our Obviously, and make inorganic job opportunities it's high. before, said are things think to It's to the we organic them, job that come looking is consider our as against bar are. we I executing sure up. as they very well at and I've But

Brian, So got add? anything you to

why the company. the a person of job. covered of vision a answer the all, for could see right I lot of First That fantastic and the was you're

vision big -- say, to are lens company, you what and going further all even of be pick the two and what just about I'm themes at of and trends. about say, talked just maybe the try two So the zoom to the are think what not out repetitive with

and a the making I'm some reality, happen we convergence sure Dave that are what the happening And will are we journey. the that needs bets to both with likely get for on consumers' longer is questions; as question. broadband, what's -- where in other and streaming to usage vision in that in but to our competitive term, what's into of It's in

we them our initiative able want So give and it. the need that talked if to and really a if and brand ubiquitous rely that demonstrably look but you to it's have and on And investments XXG stats lot you some clearly usage, you widen at something if Thursday think broadband a product to remarks, the you explain resident to lead be the we're in consumers for creates look broadband being the on businesses enjoy making, to just about, of it and and consumers cited Mike have of the about a nature you night NFL and we Amazon, broadband prepared usage. at even if and

to future that less of America that now. today there will way? that be look what more years is in And X, of future? in And going the the what or consumes from like XX of And percentage it

to put whole one the Comcast and have double of in team in at so macro Sky XX trends. lies And capitalize in to ahead. uniquely positioned together be the just want and my addition same -- is working us a what NBCUniversal company kudos that the to we Peacock these changing with in year And on to million-plus And customers goes streaming. paying to

It's the best bargain.

everything finding content, to month, the our original from For content Football incredible are to to that. and you Sunday next-day a Cup cable $X NBC to Night movies all World incredible get consumers

again. to I extremely I organically positioned. continue company, in echo return And I So said, we're we'll we what to hope do the having the to ability sheet capital to really we grow XXXX, think and shareholders. And it those keep did well and and finding strong it I Mike our well that think balance balance,

we’ll Operator, next the Thanks, Doug. question. take

question comes with go next Our ahead. Swinburne Please from Stanley. Morgan Ben

seeing 'XX the ask business outlook, in of you're I also key morning. some you. term. mean want did billion sort I back Good Thank think trends EBITDA in the I NBC both XXXX. of but longer of the about Jeff $X.X to over

business. pressure million probably losses $XX and down Peacock think given the from the will be I just the XX on Media

And But horizon? at the those over NBCUniversal? Do things you the just can climb are given sort here can opportunity investment feeling any of how long-term are sort advertising you reasonable macro EBITDA talk back of what think you all -- you sitting concerns? about levels you about to your today parks like and

flow. one Mike just then on had for I cash And question

help Any on billion You net in for visibility you, you mentioned any there? the that have working both. if XXXX, $X drag 'XX. Thank capital

Jeff. it start Ben, I'll Mike. then to this and hand over is

we So trajectory NBC good growth really feel about going forward.

of content our it movie never great good. year. they you now had has If slate doing The and to going is forward kind have is a quarter studio. -- great off this break are or We're really a businesses down, right better start been than

businesses, Our studios are TV great.

and business, last better slow record parks are great, because talked our content Mike the just business parks bit The well. Trajectory so doing a So to the it's is us. Brian is been business going year. U.S. grow and over that a never should we both doing had year time. little a business, that's in We about for

But we're Nintendo Japan found quarter. fourth had the third grow suffered in kind Beijing, got the in seeing footing the in our fourth there quarter. profitability of which That's to we really on to attraction in -- from going based the quarter in COVID

doing of First even year, this economy there, well of couple with opening with the really weeks is up weather. poor

think I ahead. we're in talked of about as So Mike our And lot about, has parks talked it. and investing Brian business growth a

two businesses great. those are So

given linear the content clear through very we The And Peacock. networks in the that a is very well, right made Peacock. talked where decades, one that as on clear strength Media paying I which that our at went are. segment, we number we to It's has about, led picked it's off being Brian invest this business very for point, model just decision to

going a were grow that made start see to when return investment. -- clear investment. to we've from We've -- the -- we we're going what that we been So on

today to we also that the up happen. growth on -- the conditions, is two did when even more based continue the does going that we better over we to return feel maintain that's or then, of which -- where linear the costs investment going Media forward. confident then really that feel margins. we we And now of And And macro what linear market are. year ago, course, to made think on ad to our maybe a than segment time, I in declines we segment timing are to cut how to how recover,

progress it Peacock. the NBCUniversal, year growth time. investing made the segment we've of growth We think in Media pretty in return So we be I'm wouldn't going a that we was to have didn't to this after ahead the lot confident and particularly segment, over

just -- in capital, a of than ago normalized levels. typical was it be rate caused creation going to level on a we're in in phase we to the year the run then on disruptions said up working higher the the by content that COVID back spiked And to getting

So of back number XXXX. we there. but predict, in past saw expect hard to levels peak are we to I a It's just the ease think off

the Thanks, we’ll next Ben. Operator question. take

with ahead. Moffett go Craig next question comes Our MoffettNathanson. Please from

is congratulations you, Thank you. Jason. on question I The And both of margins. and Mike have to

takes think I As growing I losing raises point most this at it about of segment, think broadband, the raises margins. and Cable the where puts aware are people video margins,

at whatever of think for of rate now about a the larger of sort contributes keep outlook accounting you and those the sort the cable it for for of margins growth wireless a do together margins? business? As it wireless margin to longer-term as growing larger possible pie, how pieces piece in sort of Is fit

Craig, Dave.

portfolio opportunities the have I news of great business lines. good a and is So think we

healthy said, as just solid So a with in drive not real ability to we and strength you broadband have revenue the in broadband way. relationships only

So resi revenue margin. to be will continue broadband, accretive not just I but believe,

opportunity a will business And continue has be. services is been, real long-term to

top good mobile, and you I it's think line a when including look impact, -- margin at slowing down. video So

contributes On it the top margin. line, towards

big expenses. focus of people cost, around ongoing. two like buckets our that the things constant cost, that levels, The we second self-install transactional help drive really lower thing improvements that fixed apps just activity, independently. And the and have then focus And clearly the our the resolve issues the just are activity around experience

singular things, And shows I This so not steady progress moment. all that it's long a think, a that those margin. around period of time been over has

have we still think runway. I So good a

we’re the Operator, question. Craig. ready next Thanks, for

with next BofA comes Please from ahead. question Our go Securities. Jessica Ehrlich

Thank you.

talk plans? of appetite And about about for park your expect is NBCU just on global it Peacock, And losses. breakeven? as sounds to When just you planned more peak be think two in peak Can then we back kind And some what would 'XX, of Thank potential topics parks, on for media Going for? just consolidation? do this margins obviously for kind And you WWE you talk theme look like of I you finally then the said. year Is what talk Mike got that's Mike like finally, can profit said about year you've three sale. can around, There's will you non-organic. U.S. this all wondering and see I'm long-term IP. the spend acquisitions? organic you.

Operator?

is your Please open. continue, line

back. sorry that. about We're Jessica

question? you. me. my hear it Thank was you thought I Did

So I to go to NBCU. wanted just back

will that. I'm planned sounds got it have I clarify spend And Mike for global that if to parks said you plans. in three what U.S. You've just peak just from any like the wondering 'XX, wanted be

talk profit losses. this Mike you And margins growth. about said think sounds about and And like then will and you long-term organic breakeven when Peacock, potential year like you again on peak there? finally, expect inorganic be Can what the it or

WWE it's So I'm IP. wondering or your something year appetite what this see we for just the consolidation? media whether is like is finally acquisitions, Like

again. Thanks. Jeff

the about delay Sorry here.

-- Jeff. So let me this is

So let parks. me start with

to are given invest capital said, parks both the better that Brian of done. that pandemic, our growth. in, Epic. We've excited we're domestically as things investing had we out looking -- internationally. in really a we're want we share. always And great be and and it's ground. we have looks coming But well couldn't business to solid want we've timing always that. to, the pretty deploy And parks, about our took So It's during how we we It to for

not we're younger The it's design successful, a which we're in is concept to confident a be, if less lot investment, world places it Beijing, will a like audience, for a it's in Dallas, concept that or pretty going build which of in work a around we will Orlando theme else. that support could the that park have something full-scale may but support it

we're concept. that -- excited that about So

I'm world. the And Halloween of in which then expanded could around experience about, number different to nights places a really horror excited be the also Vegas,

eye definitely our might towards giant we markets. at with we're all on of a docket. look for having theme be markets So kind domestically different concepts they a big places of expanding park that the won't primary internationally places different number just And for not

I as 'XX of this be we think I Epic, our ramp expect the will down prior be think probably we and as far spending, peak to beginning peak 'XX as spend 'XX year, comparable at And although to opening.

So that's parks. the

about paid we're Peacock, positive as to expected above pay so which where far we are and where we investment, more be right be We're not going off. to our as to was be we could expected subs, as well as far trajectory far.

wouldn't the I We will hit opening, return there. as this delivering investment we we if our peak the see Brian improve over investment said year then Mike alone spend, in or from do And think be making and in the Peacock steadily time.

said, get that it's I answer that and good confident alone in to that, going be to on return my I'm more and As Media that going prior overall a now we're to the segment. just investment

for more business. And so investment is appropriate how business doing more right the made that we're that our based on of choice far, that and that and we I'm confident model

you if want Mike, know, acquisitions. don't I So about talk to

can But discussion, when in in mean, got think the consolidation, go media happens. Jeff invest Yes. it set we'll own to plans I to what comes see I to a Consolidation, pile robust and businesses. back of earlier we've think I our too,

we our would be momentum, we surprises. to that things, our to control, businesses has look we what have bias investing healthy when at be our have operate, know behind to saw no job anything And consider we're we where themselves, So doing, discussions.

like to described? said, have worth going inorganic in to our own ourselves through the opportunity, -- across the discussion. put invest to relative business, real Jeff like it any So we Is the choices we're I it just

acquisition Puss really business. examples. DreamWorks. it's And give steadily bolt-on a is in in Boots, which that acquisition really to the been into about past, And office that off bought two make box at always for Universe, I would Shrek since big acquisitions We the and looking talked back we're the I'll favorable. hit look We just our and entry paying with add that that bolster just now, continues our our

out time. we partner month, which of Jason investment. have is And coming a in we've with MXGAN, this We're Blumhouse invested big investment over a and that our Blum, hit,

questions. we're always So Don't necessarily at bolt-on big industry looking acquisitions. involve consolidation

Operator next we’ll take Jessica. the Thanks, question.

comes Brett Sachs. next ahead. Feldman go Our question with from Please Goldman

thanks taking Yes, the question. for

basically quarter So for pretty your in time, stayed effectively was was later unlikely some conditions. points year, flat really had and sort just trend of subscriber based saw base we on to one fourth market that you of broadband of last so at see going that you period made your It in the results. were change least size,

can taking that you. Or right emerge? get back meaningful tailwinds to regardless the you some some any broadband would year Thank you backdrop? of at you conditions net now? was do accomplish an to more conditions sustainably think hoping a market been improvement you to steps you adds? positive How update. you've of need I do give position the us this market frame begin seeing to you in Are And point

Brett, Dave here.

the on So first our overall your with point broadband. start kind let in and me of environment results pointing towards

hurricane, different has increased of activity, consistent, consistent move the continued net net last clearly, But has couple adds, been impact And the competition. reflecting what's low QX, record excluding broadband churn. with we X,XXX. adds starting the of the of So lower near impact reported the quarters, this been of

So depressed and similar. some this environment reflects non-pay -- the continues current activity. -- seeing to move in very is we're activity strong, the Competition macro normalization Macro be environment still churn. and

a remains subscribers it So add environment right to challenging now.

our revenue, units. and chasing cash driving flow EBITDA in model. record high have as EBITDA successful than rather just and We're However, adjusted XXXX a we margins show, revenue,

our terms was at ARPU holding growth, in look the X.X% line relationships, our you growth on ARPU the of broadband. so but And

ARPU protecting our parameters network, all that in we've growth, within more adding the So value, constantly talked investing we're about.

showing. within base And and mix so -- the is -- the of it results

that you our products. Plus the said, As broadband know, get customers Brian of our Gigabit one-third customers,

So this ago. X% that is years just only three just number

look usage. at you So

towards said, the events I Brian a long-term just streaming, that sporting at need as more look entire think You better whether couple it opportunity, you broadband. go points towards it's

We're ubiquitous invest but So our going from continue, we're think network, focus on that. going our that to network. we to going see, great continue it's situation in I competitive to as said, I to

We and marketplace will competitor. each the segment constantly address

and on being yes, going But so going it's we're a results. we're similar environment, in balance volume. And We're but position focused do to both. I drive to to rate think very

ready Thanks, question. Brett. we’re for the next Operator,

question next Our Rollins with comes Citi. go ahead. from Michael Please

new Mike on morning. to good roles. your and And congrats Jason Thanks,

two if Just could. topics, I

First, cost-cutting can cost the over the XXXX, update years. annual on And us watch about to platform, how and Thanks. on the milestones should savings think an one next actions and opportunity? look the out to if we give maybe of the you progressing you took that's efficiency you XUMO as then exiting some on how that two

about positive this Michael, It's -- of with partners. and Excited Early early. are start start is Dave. XUMO. I'll just discussions the me opportunity. really variety Let a

So we're excited Charter. about the relationship with

you terms And XUMO, come, so along at -- but Mike? keep of way. we'll more but in it's point really posted and I expect the to this early

on the commentary drive On all don't Dave took results we and the really the the the cost the We opportunity on studios and and linear in actions set continued EBITDA parks, outlooks our to into I have just give expanding of growth everything is, guidance, Peacock get business year, versus in and that outlook. I but described Media we Jeff Jeff, growth it's to Media factored including businesses course side. think gave far up the some on for net it call, consider the in margins the dynamics the the side, in growth which again, in cable with given in thus

Thanks, question, next Operator Mike. please.

Phil Our JPMorgan. next go ahead. from from question Cusick Please comes

can. Thanks, guys. I follow-ups, if Two

subsidies Your right think the figure about you broadband further? no state think accelerate going forward? there's do has is Or tone around Does going bead new annually funding footprint forward, -- or that million the $X expansion to efforts and change.

And Thanks very early Is to Mike, you quarter. come? impact on trends on update you Cable December? going expect I in should guys any in severance advertising can the much. if this And $XXX there in Jeff, you more cost What that I in your higher. finally, comments then margins about talk say forward? wonder For do since heard million continue

expansion start, is and about Dave, expectations. footprint the talk me Phil, Let this

pretty So steady progress.

year last You did 'XX, $XXX,XXX; $XXX,XXX. 'XX, at did look

good we do in and accelerate So to 'XX. progress expect in line our And expectations. with

passings. there's around opportunity So an X do to million

clearly we exist. the footprint excited opportunity of Those still also builds residential, still call all the the expansion. about that. And the still that's within We're footprint so growth. and majority And commercial hyper

newer to the the it. we've will pace. be to We're talking edge-outs going lean pick that we're that, rural been we're about, that said think about ones in. Having and well We begin up will The excited doing a early stage very similar as around these historic to after go communities. that in disciplined terms take But going and we're the are of the and going levels grants we do to wins approach, to that. returns we're

whether -- intensity. and target we're think it's of XX% network expansions, we're with right -- the -- the on and Cable around all So being I to 'XX the back we footprint upgrades, CapEx and still what said going

expansion. areas, footprint the path Jeff? very upgrade, to how those elegant and upgrade the about So both of excited we

thanks, Thanks, and Dave, Phil.

bit -- on little I market, course since over shallow. So out it worse the it the year. a bottomed kind of November, ad describe early hasn't calls, really maybe last December. market steadily like prior as the It and around ad the better. And market then, gotten even of feels it in worsened think really I late

macro is like market actually than holding all well economy none they the weak. fire. advertise, in uncertainty. entertainment. feels are back. the the is us feels coming of due and doing do Travel Pharma, really parts to they're of There's mean And that less services, some that think to where are on in headed, know more when not the those just uncertain, is are advertisers tech, market usual. There's really really parts of later businesses well, segments It auto, I financial doing and weakness I

we One think we've which we and fortuitous couple for have I for best a offset data -- than in is is secondly, the our little better made investments to a weakness, I doing So and really us. helping have measurement, think, reasons. we're bit is growth And the it's the big peers linear of who half guess this to going really macro for and like that's saying assuming really I based team, helping. weak on we're knows just to bit. by And year recover. it first and would it stay a me summarize of economy? the the I But ad stabilized But feels then market Peacock's

then, And Mike. Phil,

tactical I benefits, I'll uncertainty voluntary as across have to these obviously, environment, as about which anyway make did well uncertain XXXX, on into just many we on the severance. periodic opportunities more businesses the as times. We've giving -- can XXXX. things took we efficient picking into So we into we we against the as for be do company, situations on basis, macro. sure just what younger looking you a mean we some up heading we're tell offered of just talent select businesses, as as retirement roll We in has all executed of something

behind it's us. So

we’ll Thanks, our take question. Phil. Operator, last

We'll John next our ahead. question Hodulik from with go take Please UBS.

Great. one. look lean On That's then a of couple at into seeing the you video. don't for And Thank Maybe you. expect I penetration. wireless, positive talked sort base mean is selling Dave and but number about questions And the broadband on impact that supporting wireless change? profit business. to on that? as on you continue of broadband just to a do separate you wireless the from really to X% I that in? unlikely pool you the guys think are

about Dave segments. selling business the You talked into also --

opportunity is? different trend losses, terms as they or what into 'XX? we what on then bundles there should that of video that how that anything, any we selling doing And to Thanks. we expect color of Just expected. on were or skinny better Anything sort in just of how look maybe little than lastly, you're

John. Sure,

opportunity So is wireless, and look when itself. up. real at the of as But growth core we a it's you opportunity do, commercially, brought we broadband, residentially surround nice and both actually to in

said, over the amount do, opportunity per had the lines that just you around at we're the look long that's at the about broadband But run. the lines opportunity, the X relationships. of the we million XX And we talking lines other lines. competitors an relationship, relationships, map, crossed Mike include road look business way XX at we it, you when million look and You the million

mobile, This has a Good quarter building, continue. So strong will we been had really momentum. strong quarter. in

different good of runway. gig really a service unlimited, our like leveraging position. and WiFi. We really the buy it's So We the like unlimited then approach, capital-light offerings approach, core best-in-class tiers the

plan positive there continued We the a that. is support to game benefit with results. do broadband mobile to is package really When the see you mobile, broadband. So churn

really marketplace our feisty that. so is wireless. that's -- a competitive to strategy And is leverage core part to -- in continue of do we'll our And

those that offers offering For are device different with well. your will kinds of be there bring own as

getting So balance a going good progress. in it's services business early there about mobile. we towards. just but and that, We're good got -- really And excited is

pre-pandemic the of that continues a churn it's better, is level. on In since front down it's combination side. improve of you attach video video main it end. drivers. one video, churn, just disconnect That at right XX% look on against the less the really -- rate to the combination when XXXX churn, is But And look of at you the the when and broadband now, combination full over and

around of the where we Video sense story segment. We'll video. per marketplace. part market the portfolio. So continue it But important an makes is segment the that's to overall, it

joining our Thanks, John, and thanks, call. everyone, for

conference A participating. available Thank question-and-answer today XX:XX That of on Comcast call. the will Investor Relations Time at be session Eastern today's website. concludes and for call replay you the a.m. starting

disconnect. You all may