Comcast (CMCSA) 27 Jul 232023 Q2 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to Comcast's Second Quarter Earnings Conference Call. At this time all participants are in a 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.

and our operator, earnings quarter call. welcome you, second to XXXX Thank

from Jason be Cavanagh Roberts first Mike You'll hear and Watson join Q&A. and will Armstrong. us for and available Dave Brian Then

forward-looking will risks Harbor this which Investor disclaimer. call accompanying Relations This refer the on which and site, include be call, to two conference can slide I of statements now contains certain presentation Web found uncertainties. also subject to our you our may Safe

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

I'll With the to over turn Mike. that, call

that good Thanks, carefully invest with I'm to structurally second that our and off. morning, innovate pleased is in demonstrate contiguous significant the very lower we focused everyone. while Marci, growth revenue growth, paying businesses efforts quarter and with our areas offer manage again results, which

Total broadband, generated with priority revenue single-digit premium in grew X%, nearly combined EBITDA have our total per streaming now XX% of revenue. studios, growth double-digit business across XX% content margins of theme wireless, and outlined: revenue This and creation represent grew management growth businesses parks, we earnings areas and services, year-over-year, careful and all the sixth growth residential mid share growth.

invest significant the Looking and to growth these organic in growth drive and across we areas, of farther continue our to businesses. future, identify in into continue strong opportunities to to expect portfolio

thoughtful to strategically. both will these are and and have other that lines, our which we also competitors enable the established in very continue business financially meaningfully challenges to We face and businesses contribute about clear-eyed plans

cash to revenue come. approach many growth company the flow years be, is for this free to for, strong driving a of the Importantly, earnings I what to sustained and effect expect future path in total, growth net

drive growth allows invest to Significantly, we our continue core earnings the which among for and strongest dividends while flow capital and growth. through free to share have sheet shareholders returning which competitors, cash us both far excellent will by per substantial to balance buybacks

let quarter. Now, from call highlights few a me the out

first of the while means history, several would investments generated businesses in consistency we there our the diversification the significant And stand reflect the resulting of durability quarterly growth in billion highlight time the of EBITDA. our contributors, out For were profile. over that in quarter three to me and the company's and our I $XX

I X.X%. convergence. growth confident The in first back, we Stepping broadband is ARPU am hand of a winning have

a the the broadband path high-quality with and We upgrade ubiquitous most speeds. are network, provider largest cost-efficient higher to

strong wireless customers. addition, approach, can proposition In and capital-light our in a we compete very value a effectively with for

surrounding aggregation also control which content quarter is our how coverage have ARPU a grow we of of products have with from and industry-leading of XX our Flex aspects long We ranging and capabilities, after able our near-record levels through consistently the low churn history to and quarter. achieve to experience, WiFi and features consistently been platforms,

continue a surround appropriately market market broadband balance remains product is growth and market highly to but exception, as products our to and the rate position segment testament quarter's was X.X% second The competitive, and capabilities. to sustain our have This industry-leading volume ability and invest and no leader. we effectively with a to our will broadband to

such a great Second is for our parks, which story continues us. to be

I new the which helped our new Minion opening Super Horror in in leveraging more as in the drive will Texas, Halloween innovative and Vegas. the announced experience, or theme opening have kid's opened Kong, as couldn't forward the we Japan, And well both both look Orlando, and previously in in to this Universal IP. excited in Hollywood and Universe, of results the Epic owned and attractions, teams quarter. next year, Orlando, consistently be we We XXXX. Japan, World introduced in record be Later at about Our Nintendo park, licensed a Land starting Las summer, Donkey

film Super billion of in particular Mario and the strength is our and the over studios by making office achievement $X.X business. second-highest animated crossed animation film our Bros. in worldwide date, Meledandri. incredible to grossing another Chris ever. is This Third it box Illumination

by franchises like with the invest X also We during Fast the successful launch in latest successful the Fast, installment highlighted quarter. of

to $XXX million Of we acclaim alike. which Oppenheimer, and released course, weekend tremendous critics from this just about gross past moviegoers

bring impactful to Oppenheimer work important with movie powerful and to we to such a proud be couldn't audiences is and an such Christopher globally. movie, Comcast Nolan at

is creative the our and year-to-date. have remain where to enable in innovative strategic filmmakers to partners, two We one very continued which a of in slate, success keys office we office best these box of the number us box invest roster

commitment approach disciplined studio to sheet, broadband All balance focused innovation, to strong function results success differentiation, of a and these to allocation. to accomplishments, leadership, of our and from our team, are leadership capital park

not us will very of And that team. well special confident I and NBCUniversal. ahead. put which changes in through at As on am businesses streamlined more am I make a decisions. economic cycles. and my in in particularly faster note have even of just place, be organization continued our and company, even place the and of have first with some better a the announcing growth direct our been talent, variety ago, so I could leadership look new our invested the with help a ability tremendous durability move And weeks in very also consistently, we organizational invest very with opportunities to extremely received and impressed drivers I with we I bullish This is depth responsibility has quarter a few observed NBCU and for was deliver

array As positions. each businesses, of you know, diverse leading with NBCU a operates market

prolific. right the NFL, watched Big continues year. now, we in Cup to is U.S., that NASCAR, confident am a Premier the film the on by fall, number the organization TV right earlier, starting and We're and total have one TV our the to going huge which sports award-winning one most I parks, be next I addition In also with this and the have referenced and we future. the driver, the portfolio Olympics Cup number Ten audience, studio strategy World up gold, including Paris the on Women's Telemundo, coming League, for and news World

growing. which We produce existing of content business. we In consumer our model through distributed TV ad-supported and driven and launched and million Peacock We paid our paying This far. this further streaming, as with premium subscribers so plan, Peacock the have parks adapted out to set million conversion is Comcast monetize We third subs as going gained started million we're June. was strong results parties, largely content products. very pleased an XX quarter, XX our two the our through and relationships in which theme growth studios, of extension and by subscribers. Peacock to And with paid an second needed, from is that we networks, a in

trends the which advertising. consumer emerge cord-cutting challenges for the as particularly such business I strength environment doubt, dept, facing NBCUniversal, But as as and landscape pressure the financial the and management we value evolves believe uncertain have to creators from competitors, new strategy, that us. long-term at across macro to company. linear firmly technology an winners and we and are continues a Without And sector present

We committed soon great near-term can reaching back deal fair the actors as in challenge are doing the writers possible and remain to get a together. which strikes. to we do content making so Another best, as we what is

to over With Jason. me turn that, it let

by generated leverage adjusted We to level operating and of with a cash billion XX% everyone. driven take capital Parks. morning, at business, good our as had while strong X% at while EBITDA strong quarter. to of I'll adjusted as $X.X & well and X% consolidated slide per growth Platforms earnings billion, $XX.X Mike, to Revenue $X.XX, and returning start free increased billion our by on continued grew results second record And shareholders. four. high-margin $X.X grew Theme to to flow, Thanks, a it, We Connectivity $XX.X Studios through really billion, you share

key the includes Connectivity, making flow support in content Streaming, our Parks, premium including free Residential the studios. cash investments of six Services businesses Broadband, level significant grow Theme and areas; connectivity healthy and in in and growth Wireless, Our to our Business businesses quarter we're our

areas XX% year-over-year, generated nearly half and of with first together, consistent more these than total Taken our grew quarter, the company quarter. in the revenue

to individual Connectivity Now, let's with slide Platforms. turn our business starting five, results, on &

total flat year-over-year basis. Connectivity & As on I was billion. results, at get for Revenue I'll refer into Platforms constant these a to growth $XX.X currency

$X.X connectivity, businesses, while core video, to billion. broadband, revenue in Our declined domestic Business $XX X% and other advertising, Connectivity and domestic wireless, to revenue, billion X% connectivity international over increased Services

in high-margin expansion in Our and strong This XXX focus disciplined strategy while connectivity & details, business Platforms revenue profitability for the into quarter, resulted headwinds secular continues cable I'll businesses businesses high protecting management. in our domestic Diving the improved unpack growth a basis with in growth. on through points first, of basis driving while investing of record reaching points, Connectivity XX.X%. margin cost a in XXX incorporate legacy margins second deeper for to

XX% Services Connectivity revenue increased for be in growth X% ARPU for quarter. second X.X% by wireless, by in while to Connectivity led Business consecutive domestic XX% broadband growth, broadband, and grew very Domestic grew in growth growth X%, strong international, Residential reflecting revenue continued X%. which the

the retaining serve balance goal from said before, network. rate appropriate to have and customers' and protect by our between ARPU demand our is we As constant volume, for more our to

is continue are faster take network for data customers grow. from a higher as nearly homes. increasing, The monthly for for cases average and their see usage average the is customer more gigabytes, speeds continues devices doesn't us Demand XXX increase. to use that broadband is consumption, off network We our Internet and our video to in hanging and better

In from nearly the XX% average is than quarter fact, usage pre-pandemic. the in more this XXXX, comparable

to and leader, our of are of as To our speed transition XXXX. stay customers that megs DOCSIS maintain our quarters is Additionally, three up less less our that broadband That's possible. network position from plans XX% end, than and year delivering best for XXX XX% in the X.X progressing nearly market demand, of ahead We above. so in far to broadband we well. last and plan product than capabilities the now

one-third with than of have few complete and We DOCSIS of mid-split and target at just launch year, the X.X to on halfway commercial through by on XX% in months. our of the this short are footprint, year-end, technology first build are implemented a more

We've homes million with We when and future or businesses and pace businesses are footprint past footprint. and on expanding to year-over-year exceed hard to meet comes our homes to of X our X.X% expansion million, XXXX, work high priority. new remaining it for XX.X goal we also are our at past grown by a

strong quarter continued This year-over-year, by domestic Growth which the million in added in revenue million momentum to higher we wireless service driven in or in XXX,XXX due lines of marked to $X.X seventh the quarter. including consecutive the XX% up than customer was line more XXX,XXX additions. $X lines, revenue, just were total,

by converged taking our growth to customers continue new of XX% We offering, mobile offers new we our the runway have some different Comcast. And a and experiment time. continue we offers of quarter, opportunity domestic big an to for ahead testing residential With with increasing mix and over wireless. will just in customers are in long encouraged we broadband

record significant and Sky accounts the which leverage in International of to $X with international a strength revenue to success. connectivity due and connectivity grow two-thirds of contributed from an have high, wireless the position extend to to both is connectivity for ability which mid-teens the video, which ARPU, a that revenue increase demonstrates this more leadership billion, Broadband, a ago. handsets, level, and tends brand in quarter. customers compared to to revenue, to at to and remainder the growth growth higher The continue benefiting variable a year grew

in other revenue, our stronger mid-market offset due overall to was Business bit seeing by businesses as was as growth strong macro business, lower in similar growth year, increased and dynamics declines a domestic well revenue in a wireline advertising, deceleration connectivity impacted since in reflecting revenue and where which video, markets on voice. Services in Connectivity, losses slight the Finally, macro And reflecting economic finally, we our and declines growth are political customer last by of X%, from enterprise small revenue The in in pressure. environment. in

the EBITDA to total X% ago, points. mix mentioned with expense that expanded $X.X and by basis is high very I strong moment management. a platforms to This in our margin businesses XXX connectivity margin adjusted as driven coupled billion, Connectivity shift increased

connectivity associated which and In with businesses. the directly in expense direct fact was year-over-year, success-based significant every growth line down our except product of costs, are

tacking basis improving our reach and with mix favorable EBITDA basis between points residential on our margin XX.X%, again, XX while improving reach shift, Further business to EBITDA connectivity X% XXX points platform's and residential highlighting to business, grew X% results EBITDA margin grew XX.X%. with

at to turn to on at to Content revenue billion, $X.X studios, $XX.X combines TV parks Content look slide and by by EBITDA let's & Now, Peacock, holistic strong the the Brothers. segment billion, businesses. these our success six. Experiences Mario driven and Experiences managing increased at our fueled Taking Super growth & media to results record networks approach X.X% our closer a matching of increased results, X% and

networks, to reallocating to resources with across offsetting same in dual where Peacock, revenue and our we portfolio. viewership managing our As advertising Peacock, the linear of revenue. distribution of streaming, goal the time, media we revenue, over at At profitability is at the these shifts and some maximizing growing strategy are our are costs declines linear long-term

You in the a results linear Immediate Peacock. at this see our loss revenue, million EBITDA decreased a strong offset quarter EBITDA networks. which stable at Peacock included $XXX media in was our that performance growth XX%,

advertising consistent overall market, X% get which domestic in with quarters, underlying trends offset by softness To Peacock, the strong advertising further over by little reflecting to driven partially into demand. continued strong a increased in prior details, XX% declined growth at

advertising these overall results to in in quarter. expect the third We continue

first and XX%. growth compared Domestic at end distribution year the driven increased landed Peacock X% paid $XX of million million of $XX distribution the scribers quarter. million by a revenue at nearly ago to $XX Peacock

free in we mentioned, June scribers effort began a Peacock an relationship. Comcast to for bundle who transition received to Mike paid As

second-half. bullish our driven our programming date as efforts Peacock further strong conversion quarter some the XXXX, drove We've as both base are in to on balance Peacock subscriber by activity subscriber progress nice made as conversion the of the And well increasing through second growth. continued we

a strong of broadcast on movie, the Bros. day the at coming Nights date Big along next Mario including Ten. Bravo our continued at Sunday And Some of Blumhouse, Five sports in and August movies day up line highlights our Football, Pay-One October. Night from strong for a exclusively Xrd; included first Super including content Peacock end window lineup time, coming Freddy's benefit & with

Turning we franchise of to Studios, business of and a great including tremendous our success the Fast quarter Mario driven the film Super a by had Bros. latest installment

television level. year-over-year deliver Mario by revenue content, million, nearly content theatrical XX% While Parks, lower offset million EBITDA film a increased the growth due timing in $XXX the Theme was led in we the of our fueled our licensing momentum and increased when record at EBITDA. studio in XX% by to growth At studios business of revenue success $XXX

World Hollywood Nintendo Our continued opening park last in quarter. Super momentum from

its The helping positive in attendance and reaction consumer growth, per drove deliver EBITDA cap to history. Hollywood best its strong quarter

both Our experiencing international are post parks nice rebound COVID.

Super level record delivered demand second benefit from park World. to Nintendo of a continues Osaka strong EBITDA it from in as quarter a Our for

attendance most And when park to In momentum date, healthy were last comparisons revenue of due impacted in to in the COVID. our substantially resulting levels compared park levels with relatively largely was our last quarter by in year. year unprecedented underlying was visitation to ahead XXXX profitable closed remains Beijing strong improvement of But was levels. enjoyed Orlando, pre-pandemic XXXX line while its as

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

primarily and capital I quarter drove As meaningful in XX% that our on this parks. higher consistent in the provided which $X.X network last total mentioned generated with driven by we absorbing investments spending, investments this previously, These and free call. CapEx increase a achieved flow billion outlook quarter, cash we in theme our was while

in Experiences XX% primarily network quarter's at CapEx with to transition $XXX well XX.X%, increased by this of Epic DOCSIS parks, Platforms, home driven in accelerate increase investments with At coming U.S. by intensity for CapEx by & to passed Connectivity driven majority increased X.X. to as our & as our CapEx the accounting million, spend. Content

and of billion $X the sheet, Turning worth on to shares capital in quarter. our return repurchased we balance

billion. payments the the with ended total of with capital of in for leverage. dividend second X.X times, We net $X.X our addition, quarter in return totaled quarter target In $X.X line a billion on leverage

turn to let words to over turn before that, me back Brian we With it the few a Marci. call for

with a outstanding am first-half and Jason. team pleased was articulated. for Thanks, year. terrific metrics quarter of really this our all the I just It great the performance the on you've

able recurring growth I would to leverage out you is laid company. the model probably out So, hopefully are to what's that and revenue like faster we a just businesses for generate zoom growing exciting bit. most our the And to entire sustainable which

free convert cash company proud strength we that the our really per team, I the with And accelerates that more and our way balance couldn't the the flow sheet. excited future. of then, of all about share be

Marci, for turn you to So, over it Q&A. let's

Brian. the call let's Thanks, up Operator, open please.

Instructions] you. Stanley. Ben go Please Our [Operator ahead. Swinburne Thank from first comes question from Morgan

headwinds you, fixed on the have converged then to the the the network. the all tailwinds, consistent you around Thank market, competition Question and and you seasonally one again about the good on into maybe you broadband been to look the think that NBC, and maybe you feeling you've Mike when next testing year? are housing, about how in in Dave, customer for know I put you or offers Those return when ability morning. stronger investments the particularly more growth, for back-half together, company when wireless, into broadband,

you on free lasts. could There's particularly the different for impact impact you. a those company, also expected? losses longer lot in be Mike, this business context I'm or should coming for down, then, ways we last your than how about of the improving there's and expectations Thank interested And the should Peacock, depending a around growth. flow it profitability and When how the cash into us, thinking lot But strike of you mentioned put that Peacock continued strikes. where long

Ben, is this Hey, Dave.

Mike. hand Let me broadband, to and over started with it

you number moments. got environment; continue gaming, look where I this over -- start other where network. that's billion WiFi-connected all be in is about And the think in applications, just And to multiple customer engaged devices the devices connected increasing highly usage the and trending we you now streaming, at happening, device happening talking is to a customers thing of our the have peak simultaneous to is going. market And an broadband that up.

from So, very than doing at per And non-video you the are an broadband more results; perspective, gigabytes look overall customers that's just XXX encouraging. month.

then, one business, happened linear, will connected. big fantastic a has reliability, happen, you Night take you the fast sporting And one course, you major with consume And DVR, sports, search way. sports capacity. ways comes, it what And seamlessly our all And in part that key at it multiple of starts of when making slate Peacock area, coverage sports that easy be event, in voice great consumed Messi so streaming that's MLS, and to and in Football, steamed find look just moments just in sports. we Thursday have great streaming, and really want to speeds, platform, that the

So, that you to be need of all broadband up. great able to back

continued wireless I is over a you there, out that's activity. Competition time. still this they're fixed we are seeing But so, in and lower think And environment, And pressing. increased. still brought driver, move great

voluntary no churn the in to remain environment is seeing and when changes below has encouraging. levels, non-paid However, see early, we rational that you but it's pre-pandemic activity; and trending, continued. competitive some any that promotional Both are that

XX% we're on X-gig on in activity beginning our the overall, XXX year. we've activity No and base. X.X gig, plan for new invest starting And mid-split, game we're and activity track deployments point our more. third to customers footprint, going tiers, is megabits that to our going or we've to to our X in XX% a trialing upgrading, And the focused on end the focus the change and all of launched the of at our in are of the going consistently network, our service starting or is environment game on segment of our broadband we're plan. high-end to to So, this customers-plus and leading

to aggressively And to ARPU streaming a XX to and and TV, like growth. even great NOW video which and is that broadband going we're tier this broadband mobile, showcases while So, continue going the we're Peacock. broadband base, leverage is customers, a net mobile, protecting press with of million stable resi new residential partners,

and us question, You activity said, And But in this customer at growth. more we quarters, return over to that your being will certainly report losses. That to in QX we superior lower time, we in do still environment, ARPU flux, growth. in believe, saw subscriber competitive we're normalization. X.X% seeing may some we're to

this certainly back time, of over happen to in there's be But formula time, over that normalization. growth. And QX. going ARPU, some to most we getting is subscriber the confident seasonal Back-to-school will to I'm able focus, and balance

Mike?

so, Dave, Thanks, Ben. morning, good hey,

happen, business, I and if I'd the moment So, what of think Dave for the thinking all setting in obviously company, how we we outstanding year, doing think long-term want innovation and team extend while about to are things a just competitive up are you improve continuing by terms broadband in are think extremely you product, what success segment look particular, that at his back you the for and long-term the the his have the to in protecting short-term. the been and to and all as around in footprint, it, future the add in important our compete pricing Dave the is work of point, add continue team, a to base, here But to I as the first-half which the of that do implications see know, time.

strikes, the I as guilds I'll we soon committed is earlier, to reaching which that repeat are on as said fair with a Going NBC to just on question the your side possible. what deal

worse a involved all work goes just a to around. industry all I'd it'll be. going that, it's It's prolonged really the broadly, obviously for negative the Beyond have it stoppage and impact in longer the

about I the XXXX that it's flow, mean studio free into probably it cash future, so will context cash flow, lower our in the and flipside higher out capital, question bit shift working of in But all company, the little of manageable. quantify the to working a capital XXXX. of your near-term free of nothing and To for

and I As effect an wouldn't and point out others, look of XXXX anything longer you that as year. in particular the second-half beyond, its the could strikes Obviously, or at you and XXXX and into would for affect ourselves be in that Peacock, to the related more have strike look the obviously.

So, it's a level we've playing field. coming. But particular to comment lot the strong content in of on a Peacock second-half, in got

So, that on then top have for the we've coming game. got exclusive which going Big nights. first on an fantastic NFL Ten have back. time, Obviously of wild-card we to Saturday We're is NFL

In from the Nights slates, Bros. franchise. Blumhouse. pointed is at Exorcist, the Wick And related side, Jason Mario Super Five which as shortly, we've then on to Freddy's, Peacock to coming we've originals, got TV coming John including out, got movie Continental, some

content-wise. got the to then that over have in about we good of strength as subscriber that that, not the second-half a the convert I subscribers good quite done a Comcast there'll we've on And that started score. we on which coming think status, halfway work what very through inside paying June we're company to only continuation be of the year in feel we beyond of the So, Peacock,

over will So, remainder that year also of be happening. the the

the what year feel of about you second-half doubling pretty when the the optimistic look and brings, of subs at So, Peacock. about good year-over-year, I'm Peacock

much. so Thanks

Thanks, Ben.

please. Operator, question next

you. Thank

Please Moffett go MoffettNathanson. ahead. is from Craig question coming Next from today

permanence One, Two with at contract. if talk on questions, fully into Verizon some market, question, there's could, wireless raising was the yesterday, there if and Hi. respect in I your not been the the discussion business. least that call some eyebrows some regarding to of calling,

there if wondering that is, relationship of you just was anything that say your in fact, durability confidence irrevocable the an contract? that about I'm So, can that and

about and handset whole customer to you've and a bit if more could expected new with the that operates. on the with handsets really just about views obviously wonder talk lifetime customer I frequently line in given churn? seeing value And acquisitions market you that now second, then the started talk your way you're subsidies subsidize

Craig. is Thanks, Dave. This

wireless So, let the question then. with me start MVNO

approach think have strong cable let way. with And MVNO, is the start a to our our business and one, that continue we me benefit like partner. that material to really towards So, a from feel definitely and day and great really

with And Verizon. so, relationship have a good

we to all And network. perpetual so, key Really access that from that the need we Verizon's continues. is services a have

the it's straightforward, is. So, just that's it way

start then So, me point. in, different the in we go -- with offers. let go me let We into of handset out and subsidy go terms

and a out our increasingly plan; between day. we and And had outright That's we gift cards, consistently premium everyday be that it's that. unlimited, different discounts, can not always not will of higher-end slate there forms. can form in they every come And part of have in we've So, go the It by-the-gig, with great unlimited. free but game we in focus promotions be a promotions. on are device, mobile cases, and and some tiers,

wireless So, we service consistent growth. offering, the really terms stay very been performance focused on of and in of core very strong the in terms

pricing small help just ahead savings I We telecos. going us core and we the in But really like the so the against versus business and telephone customers that things, companies, wireless the XX% savings our have wireless. and XX% think provides we're that like getting long compete runway between with

and WiFi a overlay, said. so, with strong And strong as we great MVNO, broadband, partnering got position a mobile I've got

approach. So, effective. our like core and our approach, we been it's We service offering capital-light like

Thanks, Craig.

question next please? Operator,

Certainly.

from Goldman go Please ahead. Brett Next Feldman from question is Sachs. coming

said Disney question. taking model. to partner are for for, that direct-to-consumer looking them more the a help transition thanks potentially, Yes, they a has ESPN to

Is an opportunity that well. among you broadly you would sports do business sports are become speaking, NBC think you How streaming-centric, more or for a big about You is as businesses maybe Sports platforms? to as a is further have consolidation thinking for? And need something franchise a think partner it really you there mostly need transitioning you. streaming? those Thank

Thanks, Mike. It's Brett.

the been sports issues the swapping you that's that might some as in as read just the imagine, part what's way tax, I given structuring improbable, say businesses be interested space. on shareholders, would minority could I've we very that So, about, of there's in tremendous and -- generally. asked in speculation going And around

inorganic put So, idea the is been that I to what which aside likely that we've anything around about. is ESPN asked there's would in happen particular,

the own I Football, excellent one sports. in so Olympics got business, When in producing we've very I portfolios about people our acclaimed -- sports. WWE, Night group best Ten, EPL, and think year, terms of Bit we've those got Saturday think PGA, of a next NASCAR, of content sports around

makes world, partner it whenever there strong Sky well, we're the includes leagues and lot around known Sports think time, a table to for bring a is a as us I we that. really that to obviously, and And So, obviously. the

us money So, with to it the than that to comes their for time brings for owners create rights when value want around how participants. more discussions table

is we've the really Olympics various very nets. alone sports are NBC do good substantial, growth leverage and through continuing it to the importantly side. nets of I And the our value of And value it using drivers deal of and for has of cable But the we when year, very a inside include doing is we events looked I obviously next really sports. think within streamed that rights it the can a represent at the Peacock, that way in value great in the Peacock, subscriber think subscription, to and mind, job, sporting our that just you in been at tremendous looked reach, Peacock. consumer cable fact good done when is it as we where Peacock of where of one Peacock would a adds are goes broadcast that in has my We the

that's the in game. our continue are sports how that's we be to going think in I sports So, we where evolution see and to

Thank you.

Thank you.

next Thanks, question Brett. Operator, please.

Our Please Philip is next from Morgan. coming question Cusick J.P. from go ahead.

very taking thank been year-over-year, rights And with about, see Orlando share, taking guys, Hi, by you do stretch It you Orlando, Peacock's that agree in your but one right like that forward? do into time? that? Lots dig do the to you. bit think second, and weaker you we think follow-up the have general on next, numbers? you strong and going can Thanks the lead more have little then, you looks you you Hollywood much. or lead talk Brett, can is softer And how sports over just

it said, to partners. sports to I the our business, going should last for -- back we question, with I So, our value ways rights, will we if this are there work likewise always looking all shorter reasons to keep time, add and that see more and to is

goes. involvement NBA the fantastic have, property. sports, a portfolio but if, necessarily obviously That's we to a don't for see our strength given historical at, up. something need would and coming that take like I But look So, will is we We where it's see given, in is the instance. as it,

theme and well Beijing, for the there parks, very record on back is overall. Orlando, pre-pandemic. second we doing record quarters of know, momentum well -- feel good tremendous we In And overall best quarter; have as very profitability. a was you very, up; seen, well -- have parks then think highest in it business the the on to compares I Hollywood about level and a of one opening really we of the portfolio, Nintendo Japan

than We not kind international what was and with be about are are by -- had that attendance, surprised of COVID, We've down coming pre-pandemic about of seeing back that caps we stronger attendance the know, to good at on in so obviously feel lower being said, we of which Orlando. That we you levels are attendance, are still seeing softness you dollar per continues so, levels. the unprecedented softening. in XX% which of overall of better,

of domestic side, back see the to that dynamics dollar about some flipside It's doing that people, and there. the been expect what's lines with cruise the you feel just in And international rebalancing continue. good on travel. We the of it's on We sort going very Orlando.

can And jump you here. Brian, in

the is years that the areas, of down to I and feel parks in bullish that, driver Orlando on recently outside one What's the smaller were in six we the two mentioned We Epic Vegas coming parks, just growth and looking the you of want Dallas. the just in really in know, at the spectacular. Universe, add company we XXXX, it's progress, have parks Jason are ahead.

in looking for growth So, we this area. are

attention results and with about we Mike opportunity Orlando the excited draw have that and pretty that Jason I talked believe. just pretty about, your massive, is are We in the Epic

Thanks, Philip.

Thanks, guys.

please. question next Operator,

Jessica Reif is coming from question BofA ahead. go Ehrlich from Please next Our Securities.

have first in longer-term for to an announced it least pandemic your U.S., the the production in one reminiscent strategy. the opportune of shutdown current restructuring just with like and rethink and near-term, content of entire whole and your at seems I Thanks. you one is maybe content, on time content area, strike, the which kind

dragging years? you about And approach costs what differently still can Jason and in thinking what advertising are on, NBC on you and strength QX? the can you dollars what advertising, to your about talk you content allocated say seeing, that how just upfront there are change coming are? and you you similar is said is So, I how think produce, to where anything And QX then, what where the all just platforms, to at that about you I being are will guess produce, may be that weakness,

in pleased, really have most with in of along Studios. of partners TV my with -- of one couple who our is of NBC; I'm runs Langley, content, Pearlena the them at one So, Donna Igbokwe, elevation we people respected of Hollywood, great Jessica, the leader, who being terms

and our sort on take I really side, that News So, to company a platform we Conde, have. side of and content advantage TV of closely the Lazarus work them Cesar going vertical that's I to think going with is Mark the think giving Telemundo, and

the continue. great we We to I look are we've to produce had that at content, obviously great focused going for already the is creating we going when think I content, but you think much TV ourselves and others, do movie that create be and strategy and on very slates

with great life. great our in not are substantial our to Hollywood can their we have of work content I with our a in position content puts help to ideas can and We elsewhere take for going to leadership that actually though and studios, think the creators but great a we advantage can a to come be all, for creating ourselves, that bring platforms not studios us which amount, in exclusively it's create, all sorts work of talent and

they're of in industry what way work to we and and strategy about the so responsive forth, will and the up. our cost good that's are looking -- the studio set that. buyers, terms of very be and In businesses and But for, the a context I feel

second-half In ad and would stable, this into stabilized that has terms stayed last of think on year. about it uncertainty be Jason's the of back as looking I economic the condition third came outlook year and changing market don't see are, softened looking year, I versus as and are advertising, just we forward. the think, quarter And of the we comments that into

bit. feel with As despite are in portfolio, strength and our from comes about and and levels our the total of last where one out you I know, upfronts, Peacock we lot earlier, platform really quite Peacock, helpful pricing headwinds, Football, things cash that of us a A was Sunday in as think related I good to year, that Ten, around strength particular. alike strong Night those have mentioned our we see roughly Big line all

Thanks, Jessica. question please. Operator, next

Stephen from from comes Kale Wells question Fargo. next Our

is now line live. Your

Thank you.

ARPU increase, margin and I first X.X%, that us coming up-tiering maybe there lower on you quarter, through the in contribution just those where as the on think think go headsets think on connectivity just Internet little you what get at stuff, was play to video international business, but I'm little we are Just guessing international? the is a getting core some wondering what as mobile U.K. cutting side to maybe in play from you can help on the how growth what are the margin the much driver, Thank revenue broadband talked bundles? as about think EBITDA of you. Internet two help international? about a unpack speeds, You strong could from single some or that more And is we your us subs bit, about from customers side, you of really the maybe plus strong, of might do if price be double then, growth contribution faster or is margin should really you kind of connectivity how

Got it.

start ARPU, of you me hit couple and So, points. with on key a let the

that more why First did beginning strong in little year. are off, seen we we X.X%. on, multiple but quarters a not was the are we more different, bit the in rate little And performance we There and of have said that there drivers. early pretty a took the bit

plus And That us third XX%, pyramids. and higher. for one overall are the of is ARPU. definitely that critical XXX said, our gigabit a impacts base, a we think that's I have megabits

that. maybe in included is whole your xFi sure over advance opportunity that, it's do describe included be, unlimited is coverage have is I let the me that's in a making gateway, is think as we an a house security upgrading a but gateway not tier, time, that, as covered. that, great gateway wonderful And included it, understood Complete, to much plan pass you and a in should to one take and base XX% that maybe the with have and is then of what's product called in it our one has sec it's a

have to of is tier, base. xFi great So, we XX% and good a Complete customers, value the

that to bundled factor discount is in. you use bundled that you and all go HSD-only, when And discounts, the things of so, then, there customers the mentioned those

stable and are it's that think healthy a you up, have have this customers time that is group I trend we are and where more, before, Stephen, that balance drivers of stable this and very base growth. helping, that and of using the is I over positive, with ARPU to continues just that the starts are thing, going, market there and So, just multiple and mentioned

level to handsets. to to revenue driven due that of wireless, mid-teen growth two-thirds more and of is by The was international that, from a this quarter-to-quarter just because variable have with growth call, as the and and and the revenue a continues which broadband, year-ago. the us. grow level, XX% customers for comes a to Remaining higher increased in margin. is revenue perspective, the so On this starting And ARPU, margin connectivity, said look impacts great you side, third area compared -- that which at quarter, from at tends Jason

for this to international closer is to I level so, And margins. focus normalizing solid side it XX% think things, maybe right And is level connectivity. growth growth, quarter revenue on for impact more will mobile the a rate. of But

So, as as contributor definite the of towards, I not and Jason international think mobile, and killers mobile. only one this strong just also broadband of part the main broadband said, is the a portfolio, and a but of domestic

Jason?

important present us this category. important as Stephen, Yes, came start out re-segmentation, and for it was to into the this we to think we with how world, an I year the

So, way in reputation sort of into that international taking products they and and connectivity broadband they from international. taking and in like brand coming quarter we Sky video think $X wireless, other have, earned name that and the as about connectivity, the this billion revenue

that I to been the kudos important highlight and to team, the think So, at able it's street. we've that

you. Thank

Thanks, Steve. next question please. Operator,

Our from next Hodulik coming is question UBS. go John ahead. from Please

cable the losses shift but for a especially XX%, the guys. right Jason, number great. of there; of losses is first, a know, couple you kind profitability, of terms issues of like anything profitability would bps, from to tell here, path the you say year you sort impressive obviously I so of gave margin couple about about $X mix And of into broadband still visibility I doing Thanks. given, is sort us you 'XX the side, video, Thanks, further really maybe XXX Maybe think more mean performance on Great. outlook for this how expansion questions And on there? for Peacock? the also anything wireless, in billion then, more be on Peacock beyond side better

Yes, good question. thanks, John;

several connectivity in you look the of consistent track record expansion. and years a fairly have the we last if had mix at think margins on margin I So, business,

to are in core place contributed sort quarter, at as look factors mentioned this historically If business, XX%. of forward. And we legacy over that as margin look have that cable the you we record the

revenue, I being to grow think key of able a that's Mike's to comment about it. margins; able upfront being part grow

as wireless, categories growing not residential growing. are growth on, broadband, of question shift going of way or company, the it's a versus drivers, the three what's specifically is connectivity, sort growth the accretive core about on shifting for there are six when talk your us, sort key to think an business shift drivers the what's sort services, this we whether of mix and we mix So, about across is connectivity

I look for So, of would the same. more

for the I think platforms, are for support categories quarter, every in also second direct and and those and connectivity line revenue talked consecutive down costs, importantly year-over-year, was and the connectivity product costs directly except for the team expense the about. platforms the growth that we

So, same our business. margin outlook of the for of more continued expansion out the in

that you we back-half Peacock, no over the We've pacing that Mike think of for change no into as the so first are you we couple the year, roughly guidance. to And I in on of quarters. think to in see, came guidance $X billion a the are losses, right, said, we year, content to as and incremental as change gave got lot that. of

lot. thanks Great, a

next Operator, please. question John. Thanks,

from Our ISI. Jayant from next coming Evercore is question Vijay

now is live. line Your

morning. Good

be been big So, a state in stating a I of high Thanks. you of future think to of bid really talk footprint? opportunity product talked and that, allocated. in this expansion is priority, being by Jason just driving sort going the terms footprint that have about about, and dollars Can that

this Yes, Dave. is

into Let me jump that.

government state bid So, at subsidy levels. where to and they're are money, we the operate both states, XX and engaged we expected in actively federal

participation at working way bid developed, So, as level. a think it we the I framework all are looking are at good actively and rules in being of

where the So, goals. framework we're on too comment out, right win out. our outcomes But roles, on it But business be with full bidding it's satisfactory in is Or, the consistent potential to us for in rate. early process going where building to participants active edge now we assuming the we'll bid. are

impact 'XX-'XX really even out we to is be a an clears going Jason's will bid activity. before be once and And by kind going up. about, as This are rules the So, come talked to build out any it is more of clarified. the activity bid way

where a actively But aggressively pursuing looking it's out in opportunities meantime, we're it. at the and and edging profitable return

passed, expect build to homes year million a alone. this So, we

aggressive the assuming in will be it, we'll going we So, -- outcome, at participant. and satisfactory considering are But the closely we stay be to meantime.

our Thanks, we question. will Operator, last Vijay. take

Our from last go Jonathan question Chaplin Please coming from is today New ahead. Street.

Thanks, guys.

broadband more bigger the Verizon's wholesale around seems subs on. that bit muted which revenue, pile you been of shift from the the the give versus mentioned are expansion But of quite broadband context, little wondering a give am have competitive am in wireless. more through accurate. context you end if was The when on Just XQ have have in was that ads. into taking of it some offer, has little of suggest over that different much to quarters, drill us There it getting with to pushing front And Jason, net Thank color what impact last are maybe a broadband little and wireless course terms is wireless you I that we how the am detail. can in flattened to on wireless low wondering one business. that's starting on margin you. look more the been seasonality QX historically bit that in you broadband some that? if initiatives bundles? to wondering guys from can Comcast pull if wireless And at you more then, to last just three bit I I your for muted subs. on sorry one gross

David. look -- So, this is

a me wireless. little bit the on start broadband on Let and part

we as and year And base for year this quarter. over stable this XX is saw the million. So, is sequentially

this talked -- we about flagged also last We quarter.

past some year of in lower And did activity that. targeted go overall be same in we from out terms some We in really in would up some offers. of as QX more offers is have had the expected ads The you that on to market. more we we in so down segments time, and over overall multiple a we end. brought macro served, traction This had ads At we expected the muted in that also We the the we experienced move than net lower activity. lower more normal the that net seasonal step combination QX. issues a But QX.

did help. that So,

mobile continue broadband. to aggressively customers. for we'll before package the as new year. this existing And opportunistic absolutely we so, And be I throughout And is your on to wireless, mentioned and with point

extension existing the to really only, things And think great relationship do. a continue we to one to stay time, I customers profitable focused over so, is we've the key HSD of got that mobile way are of and So, that. on that

mobile of to I broadband. the opportunity think much It is as grow attracting new going business the an and this really help customer. well base to as is

So, from it's wind perspective. double a our

Jason?

wireless, on a the trajectory. question they revenue revenue just few the have speak But for thanks economics can't of Verizon things category our different can got I know the speak beyond Jonathan, I and in obviously to their cable. wholesale business. Yes. to

coming their in from fill us good with stream they Verizon. customers. business happy specifically, it. for But traffic it's for are think We think We they ways got What about as revenue yesterday said and to we've a up network.

marketed And wholesale a trying with accommodate that a where have this fairly Verizon to to a is got We network. efficient much as traffic own but to our is we vehicle. outflows, on as also acquisition are just deal broadband then, offload We've there traffic of subscriber. can our lot we own

cash of terms way of to model, in closer I is flow, capital-light in And we think efficient then which all So, acquisition a market. this the the fairly cost, are down we like. sort

leave it there. will I So,

second us call. our you, Jonathan, you Thank quarter for and everyone on thank joining

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

may all You disconnect.