Comcast (CMCSA) 23 Jul 242024 Q2 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to Comcast's Second Quarter Earnings Conference Call. [Operator Instructions] Please note that this conference call is being recorded.

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

and operator, welcome, you, everyone. Thank

on Jason Armstrong us today's call Cavanagh, Mike Roberts, Brian and are Joining Dave Watson.

I which found to accompanying website and include will Slide X call This our certain risks forward-looking contains of you now safe may the and harbor uncertainties. which this can our on call, be also Investor Relations statements conference to refer disclaimer. presentation subject

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

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

you, Thank good everyone. Marci, and morning,

three, to X I from broadband; the it over to and like one, key NBA. Jason, the Before elements on comment quarter: hand parks; I'd two,

broadband, unchanged. that market So this throughout past plan. particularly where for the which intensity in confident essentially quarters the period, felt and broadband in has the our remains seen But competitive several consumers been we've and consistent, is strategy we to remain our price-conscious first for is

are a broadband that by speak balance in the right market volume revenue rate heavily I'll on healthy and We striking between segmentation and to growth relying generating minute. focused on

ARPU grew historical a result, in which the second of was within As our X% X.X%, quarter, range X%. to

remains competitiveness served our and and many lifestyles with value points go-to-market to customers' different create approach the well of maintained us the a fit broadband our playbook. refining core of and extremely for market-leading Providing past, our flexibility the the Despite we've at best million options recent by base has of of years choice customers XX budgets. each products that

the by Internet, which streaming impacted with great no especially our quarter, the products, NOW options are mobile to those simple segment of offerings for contracts with ACP particular launched designed pricing, we program. are this government's suite credit the for or These all-in end incredibly be Of checks. price-conscious and attractive of TV note and high-quality

that majority to price-conscious pleased our we vast relative premium competitor. base our the about position long-term customer offerings While we our market where reality for enhancement more with the fiber, our is of true which products, are great feel to our is segment, the to subscribes

network We investing and the capitalize speeds additional consumption in are technology capacity, trends in-home multi-gig are on WiFi we Internet seeing. to

traffic with of gigabytes with important And quarter, XX% One data subscribers our and we around each monitor month. most And double-digit the our we to a the flowing over more. or residential megabits second consuming per of network. receiving data a speeds of our of customers is households magnitude of X/X faster saw speeds, XXX higher, across growth take metrics XXX year-over-year continue gigabit again, this broadband-only getting or

of with shift These our live traffic trends only strengths to our with play which, for positive today. consumer on accelerate entertainment and the together will XX% streaming, network of accounts sports streaming, to nearly

both the importance products My network. and bundling Mobile our together customers traveling work standpoint. product final Xfinity is value of WiFi experience mobile, seamlessly to XX% from with on our over broadband thought traffic These with the smartphone benefit X financial of

pleased very in where saw again and nicely XXX,XXX were the with are We line up our momentum wireless additions this quarter, above we year-over-year.

mobile excited which awareness overall to the will offers we converged for resulted offers the in multiline introduced and new to attach in as a be Our few are of Olympics, days. better tied some yield just and as well market rates, new just higher the

We by to factors. results our both X/X were down our attribute EBITDA domestic of at lower the a turn compared this last let's in to revenue Parks, to parks. when of and with driven year's record Now where performance, decline number attendance

we magnitude a what pull-forward to appears hadn't is COVID recovery a of now previously be First appreciated.

and out look zoom past it's have think few this at over to business years. how I the trended important

were after reaching resulting to Going in years. XXXX, the beneficiaries of back for both demand substantial and tourism that record early pandemic, results those rebounds contributed Parks in the us clearly a of XXXX to travel and surge in

other tourism, given experienced dollar, surge visitation including international the caused recently, demand, normalize. rates our have cruises options, strength travel and the at to More parks which in own of their

and The advance timing we of Nintendo Florida Super second our investments is is World in of our of attractions, domestic Hollywood the next in creating our new some where factor year's affecting in well. as for light parks attendance at are of opening in Epic headwinds us lapping

for us. year, in We opening Universe as XXXX. view results growth original be couldn't terrific Parks below our the While Parks more long-term we of Epic a still are excited the expectations for the business about

As we've Epic's consumer been about immersive reaction the new X worlds, tremendous. been details has releasing

recently, And Orlando, charts. off been the Epic guest an in center preview traffic opened the foot we Universe have enthusiasm and and

So per cap we longer impact XXXX. the in opens look forward to and incremental visits higher Epic once spending a Universe by attendance, having park meaningful driving

Finally, let the me about talk NBA.

is that between XX-year the to soon, don't matching expect be awarded. be resolution that affect We NBA the ourselves that expectation Our rights and we rights believe of an will announced. deal will the package

which than and the rights existing season season games regular package, current the games begins with regular XXXX-XXXX other under than season, is This NBA partner across partner any NBC XXX Peacock, each more deal. and includes: which more each has media

XX playoffs, season round playoff first double-headers. average night games more of each Monday and games, the be and term post-season regular media have is than national over which will any including of course series on partner for exclusively each year games and second and, platforms approximately will games other national Peacock, national year exclusively on conference deal, the NBA the and For final we X our

the header each each Additional and elements season special NBA NBA annual package select game every season, games NBA Saturday double-header NBA include holiday Game opening,, and the the of Night a on the Telemundo. MLK double All-Star on All-Star NBA and tip-off All-Star season,

spring than season in semifinals regular round WNBA X final WNBA NBC Peacock, and we'll And have across our that excited the X itself, NBA includes of we'll in starting package first each we're WNBA, season conference playoff also series. XX games WNBA more USA. have where, the XXXX, and and games Beyond

we rights will games For all World finally, And will the will video the up the USA Sports WNBA leading and WNBA's be have and and Cup. to partner Sky its the men's NBCUniversal's FIBA category. marketing NBA women's markets. to of Olympics air in basketball, in USA games and Xfinity NBA

explain I'd NBA. Now so to why to excited the partner a take to we're with like moment

also and create that new for that tremendous and culture base with NBA's broadcast into pop opportunities will exclusive beyond reach in the us entertainment diverse First, expands it NBCUniversal's basketball youthful collaborations tap and streaming. brings allow work further to audience programming content appeal. and marketing is across new a fan the will relevant broad, culturally companion that season, This

Tour, includes Sunday, Second, which Premier NBA Monday Peacock. PGA the X-month basketball NFL, League, NBC on for calendar completes night NASCAR, already the traditions Ten World season Olympics, establish our Cup, sports, our and and and Tuesday and Big year-round must-watch will package

subscribers, rest programming; investment uniquely third, Peacock; we and ad by second, to NBA Third, selling by sports, and strong programming by monetizing our in marquee news. ad optimizing and by with able package first, are drive NBA both across multiple entertainment the of growing NBCUniversal value inventory the ways, acquiring sales linear and on with

the sports breadth delivering reach, and decision partnership NFL Much like entire innovation, with longstanding testament and look to decades company our with our we a in with our our the and weight our us of of to content to The to partner and excellence consumers. behind NBA's to Olympics, world-class operational is decades forward our NBA relationships the come. putting the experience for

dating on it the of short we Games kicking the viewers Before Radio. I In and in all company, off over the covered honor we This action, is be to back people as XXXX U.S. to I a to XXth great to moments one want working thought. incredible X,XXX thank the of to the Olympic the hand It stories across XXXX final a just Paris. have when one first will the Jason, Games for our excitement few NBCUniversal's of NBC days, our of to I share Olympic want even country. pride bring and historic broadcaster,

Jason, over you. to

good morning, and Mike, Thanks, everybody.

start our Total revenue billion. X. on consolidated decreased Slide X.X% results to $XX.X I'll with

broadband, studios generated our months. are total Within company at well drivers, Services major results X at over and revenue, past over our rate mid-single-digit XX $XX in growth residential Business Connectivity, wireless, billion Theme including these over content the Parks, revenue grew premium a of half and streaming

If top quarter the in results theatrical quarterly our quarter. revenue of of been as Movie the mind and Bros. results, worldwide second we box history, prior created office, comparison included Studio X films our The most that X one Fast with which had in grossing of exclude Super last a would such, difficult the this and, X total our Keep have successful in at consistent year. Mario XXXX's we year,

was and matters. impacted other tax EBITDA billion Hulu $X by $XX.X billion. last consistent higher-than-usual level flow flow payment quarter Total was associated with and were at was $X.X were and this up cash cash taxes, free impacted cash over Free which stake tax-related billion, by our year's a

payment As minimum a received year. the Hulu floor we of for last you'll at recall, end

EPS over have growth second returned count quarter, over we reduced And X%, the to repurchases. we the capital $X.X last months, of of X%. share to share During our in including contributing shareholders, billion by adjusted billion $X.X XX our

Now through results, on Platforms. let's Slide go our starting X & with business Connectivity

strong was Revenue our and consistent billion, As constant as by on businesses a year-over-year basis. Platforms offset growth usual, Connectivity declines for refer I currency will our in revenue. in Connectivity at video growth was voice $XX.X & to total

domestic revenue Connectivity in comprised and grew X%. international of growth Business XX% Residential wireless grew connectivity. growth Services in growth in X%, Connectivity XX% X% domestic revenue also broadband,

our to increased balance segmentation. In growth ARPU quarter, historical our volume and through continues customer was driven strong rate which growth, by revenue well range, this X.X% team again as domestic broadband, within our effectively

subscriber with environment remains second intensely XXX,XXX combined competitive, seasonality quarter, broadband the subscribers which, when led to traditional The for negative losses. in

all normal and price to migrating this spend been early base different on prepared in ACP June. products customers many Consistent government program our ACP. I to It this, Related action documented in to these for and roll-offs, would approach a the communicating to well ACP promotional minute customer with were of and the that has like ended we for funding proactive levels. quarter, with our the

range of still While this of impact comfortable X% quarter, ARPU growth X% our we in remain ARPU the historical feel to well on remainder an within that we very will bit the a year. for the had

In subscribers, ACP end quarter. the saw we of from this terms minimal impact of

associated Looking expect ahead, the including to ACP-related subscriber in losses activity with nonpay quarter, third we our bulk happen the of churn.

are to we to customers the While the impact, we encouraged response assess full it's too these from with see early date.

competitive of is quarter from and level Outside same as typically the seasonally expect a an tailwinds intensity second. third offset are the of to quarter ACP, we seeing the seasonal stronger compared

to this line X.X was including growth by modest XX% some domestic equipment additions with as year-over-year, in well. XXX,XXX growth service Customer quarter. Turning quarter driven wireless. mainly in reaching lines revenue, revenue increased total, this Revenue million

prior some traction offer. with our compared was pricing line additional the customers as additions in plans of to new currently customer see in well both multiline with lines XX% at broadband terms will in significant success, driven sits the acceleration for buy-one-get-one at to targeted ways account. as we line in residential The opportunities on you selling new early the which ahead wireless several penetration domestic April continued increasing continue And per by capitalize us quarters test us launched see base, well to our as as of

be to and bundling to to continues to the enhance a are value striking we balance drive Wireless us higher. area our profitability in in our one opportunities for and broadband right key in customers, growth delivering exceptional which continuing

the and was rate mid-teens driven both due a over lower revenue X/X reflecting growth. The ARPU but to rate, due a lines and which revenue our grew international remainder in is variability strong sales. to handset wireless, accounts broadband, connectivity additional by International for growth, grew at of which at mainly ARPU

small growth in with in growth Business X% growth mid-market business, revenue and Services even reflects Connectivity enterprise. of faster steady

additional remains SecurityEdge, aggressively targeted Pro rate competing expand best-in-class of are our customers, growth, growing While through we that as like service and WiFi as with driven and products Pro, ARPU competitive, delivering SMB market adoption mobile, opportunities. relationship well products by and revenue Connection our SMB through the by higher

in wide-area increase capabilities and by the services, growth as and level, expanding cybersecurity. mid-market At our the in primarily have revenue our we our managed this to networking and is enterprise space made by build the driven customers, sales in well fueled investments as fulfillment

high with The reflects versus quarter. function lower other domestic the of losses ARPU in declined the coupled last the year, revenue revenue is decline revenue single-digit slower other in voice. and video customer Finally, and growth customer video in a continued our continued wireline losses, mainly

basis businesses, coupled management. Platforms & decline expenses by increased total a margin the with to our X.X%, driven EBITDA shift overall Connectivity mix in points, continued Connectivity with up XX ongoing expense higher-margin reflecting

As here was in increase quarters only in I a is had costs, prior over have the direct product previously that expense think last line noting to are based success and meaningful mentioned the tied businesses. that year is worth which growth and our Connectivity item

XX we investments points and our the sales results quarter, to Residential points to Business nicely basis to space. XX.X%. making And mid-single-digit XXX basis mid-market in further. declined XX%, X.X%, EBITDA EBITDA this scale fulfillment returning out & while are with EBITDA Connectivity enterprise and reflecting margins rebounded Platform's to the Breaking a in growth margin Services rate, increased improving

Now let's Theme XX% and in decreased Experiences million. to Slide turn Revenue to for decreased quarter a EBITDA second year's quarter. on I'll Parks. and further, $XX.X Content X.X% to $X.X record decreased level the XX%, results EBITDA to & XX% Revenue starting compared detail with last declined X. these billion,

was results As early domestic factors: of reflecting second post-COVID, attractions. the highlighted, that with first in driven comparison Super in highly to to compared quarter our record X year. Mike normalization timing our full which combined demand lower decline Nintendo last the the of World X/X year, attendance of drove successful This in parks year, last domestic due largely is quarter to of park's last the Hollywood the opening by

in Universe, which new originally of haven't XXXX in launched anticipation we And a attraction major year. since Orlando we to Epic open in planned VelociCoaster this

Universal by at well in due offset local underlying to the On foreign Beijing partially as Osaka park currency some macroeconomic side, environment. as our continues, at international the growth softness

Parks. more about long-term the To of trajectory bullish reiterate, we be couldn't

to have & in a as and and as fantastic Osaka Donkey experiences a new the Vegas addition Unleashed Las Universal of In Kids and Kong Horror attractions Epic Resort our slate Texas. in Hollywood, coaster horizon. Universe, on the we coming roller in Universal Country well Fast Furious to

Now growth let's XX% subscriber year-over-year growth Peacock. to where our XX with by million. was in base advertising by X% Media, and XX% revenue turn increased up paid distribution, and XX%, X% in EBITDA in X% Peacock driven to the revenue driven grew increase

a fairly basis, we subscribers On steady. sequential held

of call, million. As timing in during content contributed retention on helped the we relief $XXX drive noted subscriber focus our last This was the improvement Peacock lack to expenses, in some earnings also our in year-over-year which of tentpole content the second EBITDA to quarter. quarter new due our and

pressure the half We EBITDA are the our at up we are with outweighed pleased networks. Media making, the first year with the X%, TV for of nearly as progress at the Peacock improvement

in improvement with launches timing some overall driven quarters in continued of degree As growth year-over-year modest the we between year, look EBITDA, the by second the Media entertainment variation of the of marketing. the sports, expect half we to and but

the Sunday Big game Football, the from in exclusive with third which we are Beginning of into incremental including quarter, return have the fall third the as loaded additional Olympics, game Ten. quarter, an Night well will and Brazil NFL Peacock's as content,

quarter. fourth EBITDA Given to growth skewed the be content, the timing this will of

well our Movie Studios, the At tough XX%, successful slate quarter, X. relative EBITDA last Bros. revenue and as Fast a comparison as included timing decreased which year's reflecting Super tremendously film the decreased of both XX% Mario second to and

to we're strong our we the earlier the billion September opening year, We animated November. Wicked Robot X off month, slate of had performance, mark. franchise our in in which to Twisters strong weekend. Despicable to year-over-year movies landing we're and film office history #X Me drive past have a first the Wild excited including to box of and at this And at in start, $X believe will about the Me cross titles, start. weekend terrific is this And upcoming said a better off a the the half weighted back series making Despicable is

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

earlier, As billion in last $X cash includes flow generated we $X.X which increase year's I level. billion a free over in cash mentioned quarter, taxes this

spending compared opening the we scaling in year, of reflecting business investments our capital strengthening our significant the and footprint declined the supporting with network, of continue $X.X our XX% Total as make build last broadband park spending to our ahead support to its Universe such drivers, domestic theme continued streaming further XXXX. billion to our Epic growth expanding and

of capital. to return Turning

billion a $XX since XX% share and balancing a to dividend of X billion investments just returned growth share of we core $X.X strong our reduced providing balance This have around our of program and repurchases protecting count buybacks through total to returned payments X capital quarter, we've buyback shareholders. we a $X.X under shareholders the Notably, shareholders. $X.X billion our returns and the just to by sheet billion. years we combination For includes ago, of strong made and dividends, drivers, business in prudently restarted

Now Brian? over Brian me remarks. some let turn closing it for to

that's Jason as together, competitive just Mike everything landscape just team are innovate. the believe said, because the company Thanks. exceptionally we that and our knows shifts And execute to to results show, dealing to a with and great tie really I what continue and we across how well. have have And

and We with relevancy to anyone. have balance sheet the compete scale,

to plan for X.X XX broadband and million most about passed last doing in the homes by that. what position history, to the our do we're to you in continue company's new we if months, the growth, think ourselves network So we've expanded

about hit advanced park biggest, the this Epic year. next Parks, decades in about finish to with upbeat most the U.S. in theme building term quarter to despite market the are long and We're Universe technologically

you've the organic the well the as us one the into recently, help content like engaging of instead most we across which buy on seen companies, a NBA, have for in to primarily growth globe, And of drive franchises process future. opportunities focused sports coveted will

over let's to it hand Marci With that, your take to questions.

open Operator, Brian. please. Thanks, to we for line the are ready questions,

is Morgan first Swinburne from Stanley. Ben Our Instructions] from question [Operator today coming

for Jason, well. Dave thanks ask wanted Maybe, it's and broadband. team some And Mike, you on like the the detail are that. how contract. to NBA I all about it. comment managing going and Parks broadband, Seems Appreciate and on ACP made the

quarter might want and down bit guys words I be beyond you you it marketing from of end. little how in put QX. that's us. seemed We offset were managing third mouth, XQ. about could that I'm implying revisit the third a your quarter. losses It about you presumably, seasonality. from in an are if like product around the you maybe just view ACP We wondering don't put move the to talked and a behind can can point on but And

ask to that. wanted So about

of Parks, then about get that got for do on turn? the Or ahead at thinking looks end And you on would appreciated. and should year months year-on-year as -- color imagine pacing at this what look any sort ready data, we like more moving Epic? Any you segment year next see, when of least of you through see the you've the be outlook on pressure which into any there is your you can guys I we be

a Dave. in is jump part first. going Ben, I'm this ACP on bit little to the

just important a think little we'll of context, cover QX. it's to outlook bit I So the get of to and view on then and --

us basis. have as enrolled said ACP on postpaid they the customers, with a of before, Most and been are we

country. a that's since comprehensive stay has Internet help private to And in options, So strategy to millions Internet through largest, we've adoption been our program the with Essentials. customers of We've thing And been variety an consistent. connected connected XXXX, starting ACP the I think in important the sector remember. looking most

Internet is have we have, The tiers news ACP and our are to switch eligible Essential that customers our we a that good couple. to

have In their money have help to and monthly bills. addition, and offers this good them we through Mobile, we on transition Xfinity save

Mobile plus customers add the unlimited free who get -- could customer customers tier Essential a for for an ACP can take a of year. And Xfinity Internet year. free a Mobile Xfinity The additional line line

with So and Internet, then Mobile. NOW NOW we started -- just

us material complete that, think so position but And on we nothing the it good I transition. as in puts

Jason the And been many about We've this, spent we've for very promotional spent of similar said, this. decades. proactive, thinking for -- to that as we've ways, lot prepared it's a managed in role activity time

So we're used to that.

a subscriber QX. from minimal said, Jason in viewpoint, the saw On as impact also in ACP a -- we

Looking see the I quarter, churn. nonpay the including getting forward, third we just the nonpay the happen we're to to biggest think, focused beginning the of ACP and of as but be losses It's activity Very going on subscriber-related bulk cycles. expect on impact, we're associated retention. into in the early, nonpay with the side will

seeing in Encouragingly, churn we're not this group. much voluntary

too get nonpay through as won't impact So until the again, quantify, further third our incremental a just quarter. through is goal, the and quickly we'd take to now, we're reserve cycle. it ACP on we're like know we right And to to activity planning in as possible. early But the

we managed normal again, we disconnect And that for a that this So long a post-pay of through. we time. universe the period have manage is process have

our is So that view.

but by will encouraged churn within QX, be it aspect. voluntary at the least think primarily I

Jason?

Yes.

think said it I Dave perfectly.

we've As it over worse, the it's saw quarters. It's second the quarter, intense, what seen you similar stable. the of unpacking remains think and past but I no quarter, think about better environment we to of than third couple in competitive no Ben, sort

So I point. starting think that's the

largely do a tailwinds. Second, we quarter out, headwinds it's second the the seasonal in tailwinds that as third in The we were things quarter. same get become pointed quarter where

impact. an works then will where And ACP there's that, we that against see

is impact we the largely end the we've between quarter third through to of take. then a will said, actions Dave by the and reserve the intention As be seen

seen and are reserves that, in But whether nonpay building voluntary nonpay the or and sure executing that very well thing to we've as far around make we have against. Dave encouraging. trends early said, so it's trends that's churn so And on we're it's

Parks. on Mike it's Ben, And

ahead coming. we've a going more particularly with Brian So hit then other year get think And couldn't start which and finished, is the last we those. coaster, we the long-term attractions the excited looking again, covered I'll Parks in confident earlier the I remarks, -- that I question, the be about trajectory where in of on lot but appreciate is business, and to which Donkey both in to Universe, year, Hollywood Kong as TBD next latter Country look Osaka to timing truly unbelievable. is a of Epic -- and part this on of truly into

But domestic term, causing which that particularly what I in in that the about and was Super Nintendo. of near the the comparison, think X/X pull-forward Hollywood we the drove is attendance COVID timing -- the that, of the challenge attractions, lapping poor that factors talked really

in the year, have it that the fact pushed action. we and Epic COVID so but have opened And a with planned originally lull this in Florida, back to

haven't We started since VelociCoaster a attraction XXXX. new big in

second likely get of Hollywood about result I that, Nights bit though past in and trends up the I So we the even the opening little we're the of until think experiencing excited factors, sometime next are year. as we think Horror continue moving a half lapping, a Epic of to that year the

Ben. Thanks,

coming from Moffett Next MoffettNathanson. Craig question from is

get a sense that ACP, rate nonpays the give more or you've could any on look A of delinquency sort XX what like? of on just XX we if can people I for past due, us you may little days early days Mike, could. bit insight just are so got

much of impact, because there at lower the enrollments the lose were was it have there quarter, able in street, estimate there you been for any new category? presumably, new first and the Do the just certainly in add gross at some adds moving might how ACP their old would have off to category be shut then it address, impact get one. gross not across somebody was but And example, for their in

And simple just -- question. housekeeping just two then one

cable were on Maybe the didn't if the script. cable in us call it, typically margins quarter. it. hear You in what could tell you missed report but I I'm margins I wondering conference the

the I'll let Mike. It's Dave handle Craig. ACP question,

Dave. Craig,

invoices, have X just X So in delinquency from watching through terms there's due that that to anywhere It's nothing a process dates, of rates, we you're on manage we goes it normal based months. us. and

There's and on what helped back closely. to to the try nothing roles point said, to I made that fact for at experience customers that it been I this this at We put and we're proactive. to we And watch than into very stage. Other report by them think packages go we've promotional sense that proactively.

lot work into So we'll of ahead we there's go. nothing more a went but that time, this give of and stage, at as that

QX. the In we impacts wasn't terms adds said, which occur material the little nonpay substantial was And lower will we we impact that on be bit but gross terms what bulk on things just the is in it QX. in a a question of it think of we're in seeing really side, -- terms not to in going of in Connects, that maybe beside saw QX, of

me margin quick. get real let question the Craig,

if the managing looking So was is at the it XXX I so points at wanted looking & way. to the But would say it the unpack quarter. the legacy at you Platforms, that margin in way, margin, really look that cable and way business across to we're Connectivity basis that it, business up way

to really So strong improvement operating XX.X%.

BEAD squeeze I on BEAD Could one side? investment whether in more? and more now about what just see your we the might is right And capital thinking

out. going look we've cases, already is closely. the Nothing This the We're of to the lot that we're to at beyond tied have in we'll to guidelines basis. capital Dave. be would at be is given optimistic suggest a It going to BEAD, looking we're it. and specifics Yes. a state-by-state worked on out for but it point very this intensity

I think with all -- we're optimistic.

Brian machine the done going. is of in we've XX and One the mentioned, that is the the X.X astounding, that really last points months million

on state-by-state going we're a So leaning basis. BEAD forward, in, will be but

from question Jessica of is Next Bank Reif coming America. Ehrlich from

how I more you I a advertising. it have significant there. areas, does programming obviously new NBA, hoping play also expect financial an general clear a maybe it what The you But on spend other the make to price. Peacock question since how elaborate could but getting affect pretty impact at you one role little return will walk through for was NBA deal come as benefit a that there's how and us a benefits does outlined this does are and including positive on -- entertainment?

Netflix as you then about Peacock, And had. of bundle TV, and Stream the Saver, response the part with could Apple talk you've and the maybe

others volume And cetera, what the unique market. the can little overall now the a is et done. on in selling overall, then is -- pricing, about advertising, the Maybe you're just about you bit and relative position had to upfront what seeing talk you've

Sure. Jessica, it's Mike.

it essentially prepared the at makes NBA we'll remarks. we can go stage -- its covered where will and on I that cover NBA think another I that when wanted be Obviously, this the ultimate everything announcements, moment to deeper. So cover can in

But as NBC, that just us audience, do to around the at Peacock looking can NBA, culturally point content NBA generally the across relevant, for a all followed as is we year and is calendar demographics the lot that the premier programming. said, some with are of we out the excellent that widens other

that and reach managing excellent at as existing acquisition to business you the and Peacock the broadcast long the said for plenty exclusive you earlier, to think sport business think of when our a as games as Media and I Peacock. ability term Broadcast have in NBA and drive it, Peacock use, the reach we with like for far one, so the look case business, I unique about when are for So we

very to as than us and a And of viewership us sports But consumer. viewers things about value we've great and great has sports of the talked using in to of what's acquisition a talked source for before significant is of been is Peacock about on how interesting Peacock source sports. we've NBA, before, other

So the out think when excellent we TV to I can a you us what bring about rebalance take an it areas. NBA and you picture to think the zoom piece in from view assets allow and trying we're puzzle other will which do, the is our future, programming excellent to total into -- of that Media as

And sports, content. and is this the NBC some we'll goal few But to a that use of have other this long-term nights to with for a Obviously, spend up other we'll in do is news. versus balance fill acquisition on and entertainment a in lighten content Peacock places. service Peacock

new And audience be to we're on of thousand. so of to to entertainment the very advantage our able the the and are linked content audience closely content what do with going focused drive teams and that now being to NBA to

second And pretty second But from than quarter. heavier in had we step-down of slight then quarter. clearly, quarter only sports load a on a the first the first the advertising, -- so much quarter,

of pretty -- starting the I'd slate great for And so the Friday, market advertising a Peacock. second and And adjusting year up we that, positioned that Olympics very is -- say, with stable. coming the of half NBC to again, content remains well coming elections for the that feel this and

$X for over terms got had -- We pleased In Peacock which volume is we're us the to year well billion over growth for linear upfront in is with year. and price. last of going our basically be volume upfront, nice as what with we in line last again, Total results.

we'd say solid. strength volume got. overall to the we pretty market was that given step the of -- you back, if our upfront We secure moved assets our so And quickly

so success this the SVOD were players, of the we feel we of AVOD in So more given space. many arrival upfront especially the challenging and new in

team report feel and we're forward the moving good the a the but on did quite upfront, like that's job. So

Jessica. Thanks,

question from Our next is UBS. today Hodulik from coming John

and side, Great. bit wireless. little video the better on both Maybe cable a in trends

of what's video there? the to continue? of Do driving any the improvement launch the are brand? On effects it And side, NOW seeing expect the you you

guys you're I at from turned the side? of on then think some the and guys saw ACP losses of But benefiting announced in you prepaid talked XXX,XXX promotion. yesterday, all pricing you wireless, And subscribers. sort Verizon don't do off you some new they've if about And know guys

boosting you I think the with similar point? is companies. the see of the underlying But wireless is growth somehow think something this at you this we'll Or do rest that do growth think ACP sustainable?

Dave. John,

does that said, just rate And So is did last video lower in -- the than help and regard. in video video us this terms that last ones year on with our of tied. video than We a is video, the year, losses broadband, take slightly positioning key for it Jason -- increase as it's and are year. less that

and that the churn positive steady. seen IP, been We've video. been product still helpful. in terms video has it and has TV NOW Reimagining It's early, around of but

we segment, So still the us. broadband. the of think and have, of lot difficult some with right that and fees in video, offer I think an things a very we to position it, I for we but of category for important continue value But and I well terms think,

plans. driven Mobile in success too -- Way targeted new not QX, now in point. in the in April, of a for at adds Mobile the line is pricing. this the pricing on acceleration So terms Launched over while. side, The it Really competitive multiline material early. of NOW by early

scaling, base. it's traction line gotten really as buy-one-get-one the to and it's our well Now as offer

part that is penetration. it's runway wireless strategy such our of key XX% great So got overall an We've ahead. important and

and Business position for Mobile is going, great it's just a getting us.

uniquely across of offers In footprint. our terms of convergence, I in entire think terms positioned we're ubiquitous

as be will mobile Mobile we to offer tie front great with And this Olympics. And will approach and a being have center we able together. broadband, with all the

So with very it. excited

important one in I'll different only happened The that, part ACP Verizon, unpacking it's of thing of think postpaid the a It's is terms dynamic. their customers in versus terms a that just I what other say an group, -- are distinction our the comment, different prepaid.

our going we're so really on NOW -- just getting And yes, products. not

very think but it's a And Excited I good moment, early it's so this about not very stage. that, introducing material it on. and we're at at very,

John. . Thanks,

from Jonathan Chaplin is Street. question from Next New coming

came you on us driving expected. quite ones the more lower there if and wondering color the content quick business. X is. give what's it bit costs I'm little we Connectivity a can They Jason, than a for trend in on guess, And in I sustainable bit how

if half And on up year. of lower CapEx this wondering year. guidance that's back a the far in trending just then picks I'm timing so it the we're little if related, than bit

can if I'm -- of I new recognize of should around deal. said costs give bit I you to NBA not a you the expect Mike, though. we do little loud cost revenues, When -- but you start sort see when wondering what forward-looking, you heard on can of I'm context if it's then, us sure contracts And and the when from timing just -- the clear to on the hit? and having

Why Mike Jonathan. then don't Thanks, costs, hit and I start with NBA. with will CapEx? Dave content

and on Connectivity was, Content guidance where of more we spending talked had & gave, right. then significant year. as where Epic we a Experiences both your So gave initial on which some envelope intensity We've & side, this Platforms the then this; about CapEx, would relief beyond the year final the variability to we is this year. you're the side, question and capital get we the say relative is on I think probably I entered we of

do we We little at of with to million also but passed. that bit homes this the intend obviously plus We're still trending terms we point, envelope said intensity capital a X.X gave. above that comfortable in feel

rate. with and And efficient the would homes comfortable at the still are within I intensity say, really And more existing there feel within some passed doing year. so more timing around equipment capital envelope. purchases that, a aspects

executing I here. think how of is team the a testament that's

Jonathan, Dave.

Every timing but -- a in there just is programming cost RSNs -- things, are the in so there terms contract We also the that's side, of with timing-related partner relationship thing side -- and of Every other So content on well-known different. related. different. is sports things.

won't the I go into specifics. So

But segment at related. increasing and timing of a was on We considerations streaming that point, focus mostly, is end we're video marketplace, the and is key for both broadband the it together, value, every day, important this competitive focusing that on, it and on in that flexibility, combining market at choice. But the we're us, And segment. we linear case-by-case basis.

it's wish the the but Jonathan, it start contract On NBA, I Mike. season. doesn't were until sooner, And XXXX-XXXX

a we that, we begin the to that of around we side NBA. of And XXXX that would would fall the into bear it. see subscriber the it's build the obviously, as acquisition right of So start expense is benefits of when to also,

the a And on long-term -- and to, one than rarely opening when asked, announced, gets value for when there's just be I described, out doesn't -- Brian, all relationships like of Inside the have NBA. the this support think, just perhaps Mike's up very comments this come And all, other along able have that probably at detail it want is to and demonstrate. Mike we'll it's that close -- grabs. anybody. opportunities more content as a we'll It the questions we

the our for we're is the asset is for one putting Media ahead. we'll like existing And growing that advantages our Peacock, way of Mike the like that see together very the access, here NBC business. one Olympics. reach, our with running consumer group and have real the assets the innovation appealing you'll And in the created And some for years of innovation that during and

a allows the seeing way we're lot be behavior. NBC, Peacock, and in more will There viewing of trends it for but that content content on on

ahead. So moment, the in exciting say to it's and think very we'll more weeks a have I

Jonathan. Thanks,

is question Michael Next coming from Sachs. Ng from Goldman

wireless. Services, on I the one just Business have two, one

some are you changing key be aggressively appointment First to as wireless? pursue to SMB? business wondering President about that the or might talk within mid-market following What of the that? of you competitive just on Comcast enterprise. fixed initiatives there at Is or the is Services, Or was I Business terms if in side things it more more seeing Ed's just

large? AI And I Xfinity to potential cycle business wireless, if strong wireless of lean into levers from wondering then Mobile holiday XX, capitalize broadband the strategy this could on this and the given planning wireless to talk to pull marketing on and perspective. you on was you potentially iPhone the just about upgrade back What help smartphones at are the to this a promotional the

it. Thank is you. Got This Dave.

So a couple things. of

Let me start with business.

small in There business you we've the is you competitive is one. that It's in we've that in -- competitive seen. and particular, category, As small -- the business wireless -- it categories. fixed said, certainly but some

that I saw pretty percentage in -- it at Verizon look small fixed of that we the the thing. in we're business wireless or results, -- closely. And high the

share. on we're to for We our competitive playbooks, and constantly are intensely compete going focused

revenue relationship. also on focused But we're per

getting before area and of a into we're adding upgrades, WiFi, small doing product value the business security. in so lot mid-market, And speed,

business. it's us business. for And still revenue made small focus and such And around a small progress opportunity huge terms good of so we've in and in

When coordinate beginning -- than to the there Business will that think, that at top terrific a international in a team in. huge is of And he's at But team opportunities enterprise. market, opportunity. the group there work look and Ed and is it XX% a Services is, that addressable Sky. right you be stepped this we're less overall And unique really we're I Dana you with. and add the with It's chunk on and and billion, $XX mid-market working well of

starting growth So mid-market But and we connectivity point. enterprise. in all and strategies, basis. new going beyond relationship on products in attaching of are seeing into products just That's the managed to relationship adding and nice these a full really more addition our we're relationships

end across have So higher position of customers. a ability an increase Ed is for good we're I a good driving competitive that, and in ARPU we And think growth. base increasing to

We're one, So mobile that good on close with position. And every it the to we're pay side in upgrade, attention we single moment, optimistic. is too. of upgrade --

program that in great place a while. have for mobile now for trade-in we've a We had

upgrade addition moments in the good when that, go of then and we subsidies program. happen, out in we trade-in terms switching provider. of to And then are on in top that And

people and and for good rates, when position we handset have offers -- good it. core great So we have

unique provider, position of switching I we're, a think, being a that. to advantage in So really take

optimism to And most will And showcase broadband, are service along QX, important initiative mobile such do, into the when the the on one the us handset mobile, going upgrade best Olympics the offering. the you opportunity with best unique for look at is Olympics. that be for the programs we'll a of

offer, an Combining in those attractive whatever greatest UI that top of helps you the on that such in you marketplace want. together two is things the find

next when look front for that, the about happens. couple days, but of that excited along broadband in really will mobile be with that and center So

Thanks, Mike.

Our Steven Fargo. final question from Cahall from today is coming Wells

for think mid if of I an DOCSIS at wondering X.X on you when footprint, passings. outlook your with XX% the over just splits reaching you of now updated most you'll have was So be broadband

that you within when about this flow. the capital investment you through on get intensity to update you start C&P and think But could earlier we'll that this, down, see us maybe where overlap benefit just fiber cash you growing year, also laid network coming And as this in architecture out is. free and

seems It I breakeven in half, this at close timing got and the that, to time You in like half think, growing first So to talked coming. about then be you've too. on breakeven on be this a could Media about how interesting. And if thinking really would just next getting year, the second Peacock are NBA you the basis, Peacock? keep on you total better but losses pace, getting know I EBITDA

So just could wondering if yet. we that think about benchmark quite

this Dave. is Steven,

hand the Peacock over Let on and me side. then start it

split mid now. XX% we're So right

in X.X multiple specifics early. terms the No XX% be it's that. so final by DOCSIS markets of rollout the to expect follows, far, And on year-end. We that

on the And a around new along well. these customers and it -- the end. footprint expansions, XX X.X But upgrade of are higher the to programs focus very of the million months, very steady over tracking with it lot well the last moving our where top is tracks really

and of us the virtualizing the And that we're efficient And the of that see, it's avoiding as because ubiquitous, effective node most we we're future speed, remember, helps one parts things have we and is addressing capacity, this, build splits. coverage. that's huge doing network

the biggest our So X/X us double out not and very still higher, digits tailwinds are stopping. are X is XXX there, fact consumption that's that's helping that And it's with megabits of the or to low taking our maybe that is efficient network XX% tracking And the increasing. it's one gig. of customers in

ourselves And so with upgrade we're position putting a great program. in

And have. is, do we me, advantage a great I so think, that, to that

we're fiber, In now terms overbuilt. of of competition, in terms the terms of XX% in

XX%. to will go than that. probably the higher of by expect We that get 'XX, end will It

competing We point. record against have XX at years this of long a track fiber,

of competitor keeping think eye what every compete we and But fiber the fiercely do wireless all keeping track competitor. they're they're that. we're against frankly, our and longer-term of quite on, So fixed building, we doing is, anticipate where

one continues very So When think optimism to and competition. going churn look like voluntary is perform of our our reasons the that I focus with network, well. extreme you And QX, it's into results and combined products of better superior on encouraged. that

out round capital sort think Steven, that that question I was in question. on intensity intensity because a embedded would of I the just capital long-term

the off which that homes look And last is now, lowest, at really towards If intensity and kicking if of, passed, adding one progress that the DOCSIS the XX X.X in X.X. through mentioned, all not envelope, then what good Dave million which within which, doing in the the we're you mid-splits, doing a existing industry. capital months, record as is for us path there,

progress there. good very So

in that As the of, coming that feel you terms lot there and think of future. is very is big DOCSIS the of leading this about next speeds thing upgrade. question in the We comfortable between the for multi-gig the longer context network people a splits network term, X.X, mid ask to symmetrical that,

So next we don't the see thing coming. big

there. million. currently that gate we'd in returns more out, the love XXX,XXX love rate do and to are intensity We've those the should homes area I'd good up do X.X of of because point that. we past to more one we'd We won't If couple capital things The years passed. from to be, accelerated

been the you It's the of but right. really Anyway, Steven, right. think don't is at I've downward strategically Media doing on as leave an interesting would I pursue you share Peacock not the existing path talking us on stand look exercise, since to this and Peacock trend. me Peacock that a I heard it, I'm heard what been and we're business loss on building I've numbers happy to EBITDA, Media that alone.

we what So put to doing on is the confident over are that a that multiple optimize I very we're together, business. Peacock think path around together, operating about Media and business it going years. to thinking I'm us

see said, you I Peacock linear growth would a and year is this as trend offsetting the I the where that's our And in of think some a decline we to forward. expect see carry businesses, in basically

flows. be to and going ebbs There's

once an get to opportunity a almost in is something Brian NBA As like like generation that. said,

year. we'll make our trajectory pause some the might it obviously, for and So adjustments,

assets, but sports board, and take be on in business it behind the to think We the better investing by future. business parcel of it look to our Media as future a what our will and together Peacock idea all that news, and bringing part entertainment, I doing it's we're with Media the

you, thank everybody. So

think I Go line. ahead. it. stole Marci's that's I

quarter earnings concludes Thanks Thanks, call. us. Steve. for joining This our second

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

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