CMCSA - Earnings call transcript Q1 2018

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Operator

Good morning, ladies and gentlemen, and welcome to Comcast's First Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Please note that this call is being recorded. I would now turn the call over to Senior Vice President, Investor Relations, Mr. Jason Armstrong. Mr. ahead, go Please Armstrong.

Jason S. Armstrong

and operator, welcome, you, everyone. Thank

will on Cavanagh, Steve me will formal and this for Brian morning's Mike Roberts, make Dave Steve and Brian are remarks be Burke Mike available Q&A. call and Joining also and Watson. Dave

let may you to me and subject certain include contains forward-looking two, slide you remind uncertainties. refer disclaimer risks Harbor statements, Safe and now this always, number which As our conference call to

measures. refer In of to Please Brian addition, Brian? GAAP. comments. financial this me certain in to schedules non-GAAP reconciliations the for let turn to refer will X-K the to trending we measures and With our that, his Roberts call non-GAAP call, for financial

Brian L. Roberts

in XXXX first growth and Comcast and EBITDA, results, over NBCUniversal. really revenue Jason, healthy all with XX% morning, strength of these of of you, I'm per which cash were flow. good reflect free start across share off proud and earnings We quarter Thank terrific everyone. to a parts

such have led by executing substantial growth a continued a scaled level for margin opportunities of We accretive a with high at segments. our businesses, and each special company collection

for some are what a outlined formal our This and this logical with execution the you we're a cash attempting see X.X strategy take have has pivot with our more of later. on provide already an additional and offer a us excited business next will this can announcement results. peers great job make our proposal think led a successful we further done earlier this to with works morning, we Sky. and model for as consistent more Sky. that in and Mike strategy particularly We in well, year terms similar color content. strengthens distribution NBCUniversal, step announcement of see team with integrating towards The binding We to that our This this, of to today's

with revenue billion to with ahead. Cable, including our business growing results. now $XX X% strong combined, broadband our rate and are me first Starting services annualized businesses, residential run quarter runway nearly turn So now significant let over connectivity a at

nice to continue our and in high-speed making newest to for the space products to product grow focus and through business serving small business mid-size and proposition. steadily superior continuing are Internet we're businesses strides increase We the enterprise segment innovation subscribers take control In total outlook our and to gain services, with and speed, past market homes our and elements on confident as share. also in customers and grow coverage and us enables differentiation continues value attractive in our

almost We them of incredible XXX,XXX experience for our these increase services broadband business grew revenues high-speed customer by we're to new ongoing add by XX,XXX in by business our have an the residential are and Fueled and to business over dedicated XXXX. Cable efforts first year In and day. net quarter, our customers X% track we every customers businesses company full margins Internet XX%. on the efforts, helping more built added services new revenue sales employees with than professionals within organization us X,XXX

growth this EBITDA in and overall path demonstrate. quarter investing expect decline cash results capital connectivity as we intensity position a remains a first While priority, Cable. in strengthen healthy Cable our network for our our a businesses in Altogether, to us to net puts flow on

of is flow, growth years. EBITDA capital is net increase X% XXX,XXX nearly six continue relationships net the spending, customer grew of EBITDA in XX%, margin expansion. fastest cash healthy balanced which Cable with new nearly total less We with which to and additions growth rate

includes to virtual our in overall best finding innovative quarter. We business profitable loss MVPDs the video the remain reacting in video increasing ways the first team for XX,XXX of to landscape. and our of the and focused and on future. which the also capably contributed complete is to deliver see, experience our well changes managing customers. to net This customers most the can positioned Cable presence you ongoing As remains video The competitive

is platform Remote the has pivoted international platform the customers have xFi brings XX that customers. devices. services of joining our home the for dashboard manage We viewing best connectivity added Voice recently Pandora, Netflix as help and apparent. to TV. automation, a for customers' value also Netflix, already integration notifications just and just YouTube, home become be to The we've integrated. a name that linear XX a with quickly not smart Sling that of few whole-home aggregates our commands We launch TV's serves XX content, among used quite programming, WiFi seamless to of recent new this most our partners

company. excited pleased are our so packaging Xfinity source Netflix an market It far. year are about begin the been will Comcast the TV our we Netflix creating entered since We announcement that to launch results relationship our additional revenue with deepen and has with with wireless with we of our recent a Mobile offers, for with

our your lines clearly access together enhance wireless this our offers XXX,XXX with own prices. with attractive like continue by Our are device. quarter with to ended resonating, adding and first customers value bring high-speed offering customer features Internet the We to bundling at to

operating new our efficiencies respective cost the our last of compete wireless enabling the as we with aimed in result collaboration better the both operational announced to addition, continuing week platform Charter, and mobile businesses, quickly more develop scale to we national at companies through partnership In market. getting

we of increased customers improvement metrics proud and well making and with XX% bodes including room future. efforts more first for about the quarter, with consistent, In tools. digitally by by the to from more XX% all-digital benefit through handled we for results reduced calls our agents of us by our Finally, to portion us are with our make interacting interacting ongoing progress continue I'm and only the simpler consistent the year-over-year. these further our

our working evolving high-quality fantastic Park franchises a within sports, event. our XX the Entertainment, such Winter fantastic our ever highest-rated Olympics focus terrific the tremendous the retrans of that average. Networks, with national exceptional of record media for in business special prime highlight it make of the entertainment NBC's was access Broadcast XX we and TV news, are a Is decade. time Turning were $X.X content and quarter, to and our it to businesses. a Filmed delivered underscoring the at continued and very to NBC TV and for the in our businesses at widest easier strong dashboard of NBCUniversal, after We EBITDA over at results broadcast human XX% coverage Games which in in well SportsNet of the entire landscape than positioned The technology generated over This broadcast, collectively first the The advertising. than combined, viewership million Parks. Us XX Cable revenue XX% coverage and over prime our the as in across generated households nights EBITDA the million fueling in to first all a of on the power margin billion in Theme growth, Cable NBC that succeed viewers benefits personalized our together, our following an as also XX% businesses, Olympics Super in $XXX scripted Games. distribution were quarter, higher on footprint trajectory Event company a higher game amazing time strategy Super proud again from Bowl Olympics the extremely I'm CBS, NBC and well organization Notably, as growth results the with of and by NBC's success. a Theme Strategy strength. efforts over all aired the highlighted a was results at series of cable, The high-margin moments time double-digits, ratings Bowl delivered television. TV as think across than nearly averaged increasing by This and leading and for the the laboratory Fox ABC, digital. made future And the prime on over XX and Big

these fifth total one for and incredible in number in the viewers XX big NBC events, finish on the one to of years. year number time is first demo track On the in for consecutive back is

and network We entertainment is At also Jurassic night of this year Kung own in double-digit and one strength have our intellectual a the this come from debuting Parks, Fu celebrating several Orlando ride fastest-growing parade to including more & quarter another And number with cable with there network across Japan spring parks Fast cable USA. MSNBC Volcano in Orlando, Hollywood, that and in Hollywood-themed and our with Minions reflects Japan. growth Furious a property, including leverage films, continued Minion in Park a in Bay exciting Theme Panda World. attractions EBITDA

as communicated, and we we Speaking comparison a of expected Filmed face results. last record to year's Entertainment, tough

We series we that World: to $X looking of continue Jurassic are across focus coming mark. the on in including which theaters brought the quarter franchise are to June. to performance and first pleased with Shades strategy Fifty our Fallen Freed, billion And releases, forward Kingdom

proud new an combined individually similar the each portfolio Sky's strategy even programming of situations, while and ability with have excited Sky, we other the believe offensive as strategic us at Comcast of as in to and new invest our We owning differentiated more impact. I combined fit will culture, Sky through potential we and buying and of capabilities, opportunities will other an formula, of uses position base attractive outlook opportunities. including NBCUniversal, businesses believe that like Sky our announcement capital an through with and is new XX the when million incredibly Comcast per exceed when with to lens it to customers business in opportunities both strengthen Much and a follows a We scale core a in unique love today's and has stronger. make our of is alternative these about We We think ahead against performance outstanding content. back and momentum. look our create deliver stock we attractive we invest focused the company Sky free complementary this truly content and of quarter advantage, are we company-specific that distribution is successful that in position Comcast innovation. markets, team's company. U.S., a timing the Strategically, support criteria. will model on for So timeframe. think ability a growth content great same increased the geographies. enhance Sky financial innovation larger to is strive and further international our this and the with viewing and of stronger ability with I'm against provide A ultimately, for the transaction well reasonable a take NBCUniversal of share, businesses business together technology evaluate arise help capital, capabilities experiences. Financially, in from any to customer When original combined more acquired opportunities and to can flow cash great judged accretion cost as and where

to And off closing, continues let at details. us with to for turn imagined. start NBCUniversal Mike great in whole our team like any So originally this over of than faster me we to year. now it is more The a outlook pace Cable. And that, at grow a

Michael J. Cavanagh

everybody. Thanks, good and morning, Brian,

is The known are offer key plus offer which Let on announcement, offer one a original firm by consistent condition cash £XX.XX February, UK proposal of and X.X share acceptance Sky XX% binding for share. an Takeover our the the me with back start terms in Code. a all-cash providing per as under details Rule our

with the the our Our establish all And statements not board, a to News maintain UK an investment, Sky newspapers. investment consistent to to announcement. controlling a various Sky related been News intention has strengthened acquire to in editorial commitment Rule independent with interest and X.X in pledge UK are any

complete to in approval, will the XX-day terms antitrust which concerns our in review. that kick regulatory for still a I a offer we'll near file process, attached. future, shareholders off EC review Sky In in a all We would so Phase timely position without any manner to be reviews expect of regulatory

is the merits of of let transaction, financially add and strategic terms before. a believe the me what said transaction. to attractive this have In we We financial

Sky essence, merits Sky's head of recurring the history is of synergies and sound New today in investments are million engage a Sky's In is capital count Comcast combined around information we believe exactly benefits on inorganic announcement and a share These a is value $XXX we including opportunities. and accretion us of to the limited as in in through great in across transactions optimizing achieved and estimate with own expected the achieved Quarterly X.X range to combination cash through transaction. savings a in well be ability of optimizing company. operations complementary an are for only impact a opportunities back the To revenue of also even as with cost and we the our potential standalone with free capital. creation. expected. have we mentioned, We alternative a and which All the synergies, the compelling make fit. business, other balanced transaction measures. of believe on buying we've opportunities includes to business, this variety against earn time stock, per timeframe. evaluate based flow of our cost reiterate what combined criteria, more In all makes that a those strategic where strategic studying, of this of Brian position strength strong spent put reasonable This exceed uses evaluation stronger we financially type of context, are a

now results. So our discuss first let's quarter

earnings everyone to Beginning reported results to Adjusted and billion Adjusted to consolidated our $X.X share slide X.X% Bowl. from and Results our respectively. and first X.X% January our newly EBITDA NBCUniversal, quarter. with increased remind as results PyeongChang are let's previously loss $X.X results. the on other EBITDA wireless standard the earnings which launched accounting standard. And related include adopted year-end in billion. the I flow EBITDA Winter of business. to the revenue new broadcast an Revenue we Olympics The we for that of quarter was quarter cash XX.X% $XXX associated healthy on effective Today's call, just First, Cable recognition increased increased growth to want XX.X% free reflect the quarter. that Super of million $XX.X and the on XXXX. X, results for NFL announced finally, review billion, includes XX% the $X.XX per for X, corporate

look contributor business, customer at continues our Internet in Cable for we customers. residential XXX,XXX several residential to high-speed continue in increase as base be Internet net and Now X.X% starting slide our our added nearly Internet to net to X%. by Taking in Communications rate quarter. the business, were billion, together increasing overall XXX,XXX with relationships to growth reflecting for to high-speed grew in largest let's billion adjustments. These to subscriber $X billion driven These high-speed We revenue our X. in earlier, revenue Revenue business of be Internet And growth, a outlook adjustments. increased rate by the high-margin our new $XX.X get million connectivity into details quarter businesses, XX.X net with which results Brian X.X% the quarterly results a Cable in the $X.X increase were the results closer totaled and driven high-speed over and said confident including and services, a reasons. customer for

expanding First, XX% we as data. expand. is households Currently, of this will about high-speed number Americans access broadband the adopt to more to subscribed believe continue market and American Internet only

rate a has Second, our at of a homes footprint new on an to This formation been plant our we increase basis. X.X%. passed extending have footprint in our our home and growing opportunity steady through within by about

of driving product ongoing differentiation. we investment on in market Lastly, share the and are gains back innovation

coverage, we control on improving As in product. continuously our are best-in-class broadband Brian said, focused speed, and

of XXX or second customers In higher. speed, our terms residential of megabits receive of XX% speeds per

footprint and manage capture putting an video residential the difference of advanced same quarter. our the share. further is in revenue customer of while the allows in speeds. time, our WiFi. value our into our best and as video differentiates All increasing net now Cable enables continues compared and flow this highly a the losses business service XX,XXX out home to home, to number a to $X.X The marketplace to to as home, increases compete experience. adapt with the the app With had the way is helps We by declined quarter's gateways connected better devices to powering continue primarily growth. speeds cash xFi At customers in broadband decrease that in in The our choice video, gigabit year last to to us billion translating network, take these offering are We rate competitive the lower market progress preserving strong in rolling net make us and driven improving customer of we additional X.X, in quarter. X.X% EBITDA our Switching increases. WiFi results the their their DOCSIS XX% good well

continue and XX a the at total We is video focused around in believe and an content on to innovation is the high. where market aggregation remained strategy our on best product consumption market all-time video

are In reach relationship. with products segmenting by to our the that the whole-home thinner the product context can other to And still right we into doing offering get addition, we products of this the in serve we think all profitably. that customer packaging managing we right including video segments the market additional are extend

broadband, the EBITDA of experience relationship. While get a bundled relationships, at and and the value security, growing And customers per some and our despite are now the of the contributions, we best products. with can video, broadband including service, is mobile voice, still combination majority of shifting home customer epicenter EBITDA

results we Speaking XXX,XXX lines quarter of this are in the lines, added the having we Brian happy business, early Xfinity customer in XXX,XXX with mentioned, the with ending as seeing Mobile, quarter. are

associated with Xfinity provide business to we drive more strategy our resonating as big opportunity customer seeing million bundling believe We this Mobile the getting Financially, are the $XXX our broadband value launched. is business acquisitions quarter a subscriber incremental reflects momentum the continue first and is of our Cable loss at Mobile base, product new customers. EBITDA in to to costs and ramp the our Xfinity real the operating in and with

the These driver Moving revenue be business customer during delivered We results, driven on relationships grew rollout us we a are quarter which focused customer as to us billion has relationship have and on growth. top to added by our fiber to network driven for X%. All connectivity, to of DOCSIS business results speeds now are continues double-digit helps business XX.X% overall businesses quarter, substantial in enterprise, quarter customer primarily continue and the $X.X investment small push and another room offer our mid-size by Cable with gigabit services, business increasing of to to enabled to number XX,XXX the X.X increase and deeper small, customers. per of services by growth. of in connectivity medium-sized, strong revenue segments, growth, the future our

Cable our Now to and X discuss let's slide margin. turn expenses to

increased XXXX. First compared Cable XX.X%, quarter $X.X Communications of X.X% a of in up EBITDA billion, to XX first margin resulting the quarter to points basis

believe points be year. last could continue margins much compared higher to XX to our as as full-year We basis

over experiencing X.X% cost added by escalators by at by our Programming for per by X% expenses the programming last our a control. offset and X.X% in XXX,XXX the of months, relationship growth relationship growth Non-programming partially this past XX year-over-year and moderated normal this years, results results businesses customer by total X.X% connectivity several the our is video double-digit contracts, in have If we After growth a our of financial renewals, We look we two basis, driven customer quarter's high-margin this per driven our quarter. relationships revenue growth in which EBITDA by increased subscribers. customer expense These were per-customer X%. Cable total relationship on quarter. driven timing growth mainly increased contract translates focus base. on customer loss to into

continues We improve, as service relationships overall. benefit experience quarter from customer cost this to grew we've to by the customer even X% management initiatives investments disciplined declining in XXX,XXX. continue Notably, total as as we expense made customer well

increased Olympics exceptional Now NBCUniversal's XX.X%, to by results the increased slide which generated businesses, $X.X were $X.X broadcasts an at NFL's on billion of billion Winter driven XX.X% the our to part results. advertising of in $X.X Bowl, NBCUniversal's XXXX the revenue of On quarter. which over revenue. and in the TV successful These let's EBITDA move X, revenues to and Super is billion related incremental

big $X.X to results NBCUniversal's XX.X% events, reflect In retrans results fees Parks. at and billion. strong and to networks at increased billion affiliate TV our EBITDA businesses addition growth to healthy increased revenue in these $X.X Cable our and Theme XX%

the Excluding distribution, agreements, reflecting of the revenue revenue. reflecting associated of Winter million pricing content of closures. performance of X.X%, Distribution licensing, partially revenue increased this at and Advertising revenue declines other X.X% offset advertising impressive growth benefit and by renewals partially overall Cable distribution as increased solid as strong the with MSNBC a decline $XXX in by X.X%, continued previous channel quarter, Olympics, our in offset the was subscribers well ratings that impact and of Networks. revenue increased reflecting

of Lastly, deals increased the to content Broadcast agreements. current revenue Television XX.X% content revenue $XXX timing million. to under licensing EBITDA to billion, and $X.X and XX% XX.X% and increased other provided new due increased licensing

retransmission the of primarily revenue. about Excluding X.X%, higher million $XXX of Bowl, revenue Retrans revenue revenue reflecting $XXX XX% and the associated NFL's $XXX million. increased to Winter revenue of broadcast by million generated Olympics increased Super with nearly

stable, the revenue, lower XX.X%, strong history, theatrical In Bowl, its revenue due the results $XXX revenue. by most scatter market declines. million, excluding off in profitable as was and to declined EBITDA down year Olympics of Super size timing were slate. primarily and driven advertising the offset ratings to Film the addition, Coming and XX.X% the Film declined

to higher of quarter. comparison during results quarter, While first was films last a delivered the number the year's Fifty the of third installment Shades strong it in tough

in return biggest we one Fallen on strategy and have franchises opening our our of we Jurassic of said, the with excited to franchise focused remain Kingdom Brian As are second the World: quarter.

spring be timing increased last EBITDA driven expect concentrated the per-capita second new quarter up the break, in still driven strong Finally, XX.X% exclude EBITDA would that earlier. if year. several second XX.X%, higher revenue benefit, growth $XXX Theme the this from we partly increased In of Even of to which These double-digits Brian compared highlighted to benefit last by opening results and by are spending. Parks was to strong, attractions year, quarter, million. we

Now expenditures. CapEx on to intensity and capital decreased decreased Consolidated capital $X Communications, consolidated segment resulting our At of let's billion move X% billion the the to review to for expenditures X first XX.X%. in to quarter. capital X.X% $X.X quarter, in slide Cable

expect For by the intensity continue year, much full as we capital to to be as favorable XXXX relative to basis points. XX

quarter, residential is increase to lower customer the driven extensions investment of related scalable our offsetting by the primarily and capacity in increased network in customer video investments to is and this decrease premise on now to reach customers. spending more business decline to was which infrastructure spending Partially over a For line XX% spending in increase equipment, in XX, deployed residential addresses.

capital decreased premise We the towards video-centric from customer spending. shift to equipment first our to expenditures infrastructure broadband composition At spending capital and of connectivity-driven X.X% quarter away continue million. to expect NBCUniversal, $XXX

mainly XX, this let's at and full However, of And the timing-related our on the cover majority with investment Parks. capital. of slide directed year expect up spending capital return for now increase finishing NBCUniversal, to Theme we is to the

dividends $X of share and We the $X.X last billion reaffirmed XXXX generated over earlier, returned the mentioned I the $X.X shareholders, rate for in billion about which of free increase a billion in we nicely of to This cash the Sky of time quarter. million target minimum XX% first to of an above $X.X in quarter. we billion, As annualized the year. $X in includes This that $XXX repurchases at flow announcement. equates billion,

X.X at EBITDA. leverage we times addition, net In of remained

continuously are while to it's potential us while for create use pursue circumstances our a should that value. Regarding at we acquisitions, a of exchange opportunities anything shares I job always unlikely for would we as think to is medium can levels, Comcast But these there stock transaction. whether change, it's evaluate our

times to at like Our strategically strong allows important sheet balance this. opportunities consider us

will morning. this I underlying our us about conclude joining we for by the saying thanks just strength businesses. fundamentals great So of feel and

that up I'll well strong support results to that, back XXXX. a Jason. quarter first us Our set it and hand With for

Jason S. Armstrong

please. for thanks, Okay, the open call up Mike. Q&A, Regina, let's

Operator

Thank you.

from first Hodulik go comes Our question of UBS. with the ahead. line Please John

John C. Hodulik

that Maybe purchasing $XXX the a evolve color Brian, believe seeing focus with an the thanks. company. just be you're on what in or there reason U.S. on asset here seen market TV in market U.S.? that any be satellite transaction, distribution video in here could similarly as great. the would follow-up, more two, not the said, Is you Europe in to primarily the if video number strategic competition Sky you topic. Thanks. us give increasing is in Okay, to the will a will then you we've And million as synergies, to any details the And

Brian L. Roberts

programming the competitive has have potential think I And points. work Sky over-the-top the the many Thank for they're business, vantage just business, you, competition. really the at and situation, different future you are John. to Also, do television look similarities, but from and have business. creation coming Look, very different terrific content video markets. markets Obviously, dynamic, a

at in business look they so it the posted last the broadband at which Italy. it, they And And they continue in made to look And to announcements week. do so results, quarterly also intend their and we in that looked UK. at they are

content continuing ability a very impressed So are distribution to with that momentum to Mike? have Comcast company the we similar NBCUniversal. at the business, and just looks the

Michael J. Cavanagh

did X.X. we But on it's of that see the expected flagged $XXX we $XXX expense So about the it's categories, when side, we to revenue that same say, John, million million, I'd synergies. $XXX synergies, million of

that's spending in that to content then across too earlier. some power And to on of the strength more the the in things. the of amount those and small the just All elsewhere, about in not to percentage to million think, our we're the together think When so. you revenue companies side, And at is again, ability does. production can side two then such what producing – what or of again expense gets the some Sky $XXX side, we On together third-party million. the businesses scale of NBC said efficiencies about get do the gettable, overall a of the as ability it's confident we add expense the U.S. million represents to you degree and with base originals we're the new $XXX content of that administrative $XXX some two of monetization combined

John C. Hodulik

Okay. Great. guys, Thanks

Jason S. Armstrong

John. you, Thank

please. question, Next

Operator

next Your Moffett the go Please of Craig line with question from MoffettNathanson. comes ahead.

Craig Eder Moffett

I theme with stay the strategic Hi. well. Yeah. I'll mean as

your for that and scale a greater. required interest be guess, of the most that to in the likely and signals reading is much people's much, is next view media my So, I generation Sky Fox

that of is And than business, that And side but that's into platform direct-to-consumer revisit addition to sort concept, global that U.S. is outside real you Sky, studio? First, does scale, the (XX:XX) I then much fits with more larger the hence kind perhaps production a of a require of could right? thoughts wonder of about if how your your footprint? existing the if that a just

Brian L. Roberts

Craig. Okay. thank Well, you,

are perfect. the think us. at back what go look great say didn't what's I is Sky tried all think reading of work to Let over it. from intent, a us articulated, strategic you anybody want the love some that's in buy a we just that's it do other And in it properly want reasons in without question the as around generally, and of Nobody have In because to engage? commentary company been is do have viewing it? and rationale is are divergent to that We reasons time, is better things. we or right, And And we operate not the strategic you M&A years. to is, it disciplined. we happened me But event you that. we this by and as put And not NBCUniversal play. want play and how that. our to are around I core a didn't any who make a has earlier, it And and we to take an than growth track at question my done trajectory saying, as was judgment. XX there And We other right, and that to build what And your choose there to record. the asset That the Mike organization have do look the start you to and end, and for strategy some we at in businesses. this do

the And looking I at question so think a in the of strategy. do again, scale this. international have we don't broadly is and to is think I future, don't

future existing fits not of I have asset integrating you businesses consider, already geographies think Sky's case necessity. which a well a it and to you with or is mix our get in content within distribution. aligned a for that And and scale, will that gives is things we unique optionality and benefit got, strategy is of additional a new the requirement

Jason S. Armstrong

Thanks, Craig.

please. question, Next

Operator

come Reif will from of next Cohen of the Please Your question Jessica Lynch. line America Merrill go with Bank ahead.

Jessica Jean Reif Cohen

in you to two or be approach pending. it's demos or marketplace but how to And in business? changes that of premium Thanks. the video-on-demand? movie know any premium comment is is, the could upfront, year And whether occurs, those Does how view or versus video-on-demand how linear? And sell health secondly, Fox-Disney different deal don't the market? gears the digital combination buyers phone, as the the the I question will targeting I'd maybe just or if a the then you distribution switch or this you potential like what NBCU. with Or Steve change on on

Stephen B. Burke

Okay.

this So Steve. is

presentation. Monday weeks position advertising, the at on But we which eight comes two we years NBCUniversal. our entering or have the amazing upfront in is from ago since the we're strongest are how seven arrived every upfront, it It's year. entering we First is quickly

network over at and ahead of very are very, look the the we a XX% the ratings. Globes. We had high in number nights two you the between Golden in NBC, Bowl, of Olympics television Super If percentage big

scatter a been have strong. three very, very two last strong We And the or for quarters quite has schedule.

too for enter say But we've early quarter in a in years. second stronger The that what the the first quarter to while. I was cards the It's than have the scatter a we many to upfront had we think will position be. strongest quarter have in

that built signs to behaviors home and happens certainly of And there where And can broadcast an and and conclusion I addition, that change pendulum it environment beginning to not say traditional cable brands ad pendulum watch It's there's definitely ad are succeed. the for the coming the whole be but a that can of that coming businesses until to swing reasons a people is trusted in from ads a and to will, end. our an swing people are digital. favor. way linear in we've talked a think advertisers to context, variety between where In in watched be ought back television the

those I So general, for the looking market very the the back reasons, of strength am all to and particular of with forward robust upfront. television, and in in pendulum really a portfolio, our to strength NBC the but coming also

consecutively year year, we ever around results that of our terms the In strong, Film. three for in my record are last quite set in like you plenty best the terms won't to quarter it and because in cash year. of have something But comping be Film, We we against in has opinion. strong going Universals had see year years. This last been And first operating we two the XXX flow the – highest are we as of year, the years. best

We XX. are Jurassic World to looking June on forward

Mia! Mamma back have We sequel. as a coming

of our going animation. at course, stronger. Film to to next our ever, has We on by build is than more year. have bearing Jeff fruit start been our spring now our the of The approach which first control. release been led Grinch And the purchase new and have Shell, Illumination has never And to Animation of with under we end franchises, And business, DreamWorks starting this

business. to well just good their are will believe business, discipline, technology how which the the So happen, beneficial we making, profitable their their Film and and to feel in going windowing approach the for be hard Universal to we very of making movies upside kind And I of proud we're that's when it's team us. occur ever. our allows that's very business, that doing that than Film creative but more about risk-taking, do that say so are to And the and Film to business. the

Jessica Jean Reif Cohen

Thank you.

Jason S. Armstrong

Jessica. Thanks,

please. question, Next

Operator

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

Benjamin Daniel Swinburne

I morning. just have Thank your before, deal taking currency. to To related you, Dave. comment wanted some it's then where are then hearing you so you sort of you take about the taking any you equity or we a I questions. your finance to how off stock good talked sure go that, remind parameters I I of right, back leverage acquisitions? is like can two follow-up around sort put comfortable a kind can would sounds think, make at it Mike, of just today that we're for the And table And is the up moment. to us leverage there? the you far have company Just and through

Michael J. Cavanagh

levels. I to these Sure. in possible I make us of I I add getting in we have guess, personally to variety scenarios, like about subject been I circumstances we a wouldn't really people's don't have mean, see just comment point different earlier at want obviously any to much and since question don't moment. stock that the what is using But to that I said. facts or at the would the minds,

was that really have I been point the earlier, getting. to So I question making a that's response in

the does mean the in something balance terms because to sheet that. it sense, our our where that we try the that strength we than about we leverage if history to do strength value the the wouldn't in we job the idea existing to temporarily where can't a of just balance to out look business, neighborhood go, view what makes for we to we can any Brian the of sheet. is no, take In on increased of be period of wouldn't time. keep advantage the throw leverage back or it of we I said would And be which parameters add our and other would situations the on into ties how we trying like as are balance reasonable sheet if we of consider at earlier top opportunities. always our ever do have back if And being operating necessarily able of bring strength anything, and that it's the we been in follow-through would to intent

Benjamin Daniel Swinburne

any you upgrade doing your differences as Comcast's share Do great. fiber, marked just as business broadband network, the then, sort the a Dave, bit can see flow ability That's over in how deployments DSL just AT&T year? anything this plant the preparing thinking even talk upgrades about on little deploys of how And realize they of more their their that. your business, Verizon's to to markets U-verse are trends time? And fiber? deployment are about their you grow or you business you XG terms and plant more aren't yet, just I'm all later but the for in around announced wondering customers I

David N. Watson

we seeing of the to business. like of the great we We first saw We footprint moving make of how our these you we with really And are normal level is certainly off, I AT&T over. and And through Ben, you new exists. that their happen, Well, go we that is off. more competitive earlier to then there have DSL sort market adjustments cycles. trajectory think go what some Once momentum. broadband adjustments

There's a good there's high-speed And think had new the you with saw the room we share, in all room So how XXX,XXX is result, we more marketplace. of in there terms approach more more here. we as customers. room

and is at passed. how a mean, you on our answer And how look going talk overall speed, we marketplace, to focus you Brian broadband, about market broadband, when So – coverage, terms in when terms about against talked our and I standpoint, the of From growth broadband controlled up connected lower-end much of I about superior in Mike go homes the we think, talking on. devices, compete, how providing is a are consumption working. we

through XX opportunities the waters. our it are win every testing market. and you an opportunity back maybe network to that there's months. the go think and is standpoint, scale has I from capacity So But really to our great We some designed around new increase this XX customers to

just networks equal. all created I And not are that so broadband feel

compete us XG, to to close paying think, a consumption. great I help And attention more designed, with have we're network in We it.

do we to still mobile be could are terms network service. this can different and our It's a it it's applications of – around going good for – question We not a whether feel fixed terms they mobile own of what or to enhance will their testing results a that provider in I it opportunity broadband. what in think can mobile And do. what

to focus, it's around network. our out very So whether whoever, build continue broadband. We're is to or Verizon our focused

But we not We opportunities with to are are going to going XG. test still. stand

just XX We be amount just high to a are at level, look And you more of customers, much continue in using consumption, going overall to they use, capabilities. And think network where is more terms connected top market devices. how XX% at our of that the going. look a or you our they that's just at are tremendous the consumption I connected more devices. it's to And There is going we of consumption, have. enhance

ability And happens at compete. current very but still of confident solution. focus the to XG, we spectrum are looking I'm see our what best to it, provide so is in And with they the in-home the way will use, our current

Benjamin Daniel Swinburne

you. Thank

Jason S. Armstrong

Thank Ben. you,

please. question, Next

Operator

comes of with New the Research. Please line from next go Our ahead. Street Jonathan question Chaplin

Jonathan Chaplin

if us you can wondering I'm bit this in trends quarter. a the little context on give business more Thanks. wireless

they does associated business associated expect have change reported, sort that channel finally, net costs? of really losses So behind when and the the sales the start you you to of getting product? started where then you sort with one-time if how costs? do adds versus accelerating Thanks. as now of the get the with Charter, your of development pace with And how ongoing of that the is $XXX costs that much JV the upgrade profile covering wireless, platform some business And are stores the million the then you cost of

Michael J. Cavanagh

Dave really terms of of close actually about last good a pretty million losses, in We feel guided. I as the what we I'll million So, Mike. line hundred few But pretty hundred with the We But more customers let expenses, I and thus is start had and then Jon, line XXX the far. launch. the acquiring the think, good several of over. XXX,XXX, that year. year. be take ramping to to had $XXX losses about we business. this EBITDA are will in And adds It it's I'll feel (XX:XX)

just to of a the core expenses getting technology like, We started, just also from departments, infrastructure. marketing have cover business departments,

said, we those those once We comment. go when able And some costs Dave get some But benefit Charter our will together. of basis to the get to let scale in terms as in always I'll costs be of we'll a we we deal here, of bearing in with cover where get per-customer and we be from scale. business, on to NPV-positive

David N. Watson

to Well, said, so I Mike as a in early, It on May. think off – launched last really we're start good mobile. is

distribution. And completely them. to By early expand now existing we terms still sell or I in the where providing lot at of choice a to we're stores converted mentioned didn't Gig consumer the how our we working. We kind you of capability response is think launched the just We've add in mobile that. retail and our of have retail of to stores, stores. with Unlimited And the it's

very going well. that's So

now press, think, with We And continue digital very package a just to I good solutions we're solution. other to beginning broadband with options. mobile

of amount we the early, other early alignment like So this a of step. look just, really trajectory On think, I comment, logical how is we one think relatively I the at just that. next but it's Charter, business, the both given and

that. be back-office is critical good thinking having And how the helps on And be business. operations, focused it scale Mike at us you table mentioned, It's answers right potential has think new – to think, Charter it's than to as more a really both really We're partnership. it, this the help. to really a to a the we operational But scale I through I even reduce how so, good it costs. going

bring that So forward. But it's partnership costs, pleased a were this we it's efficient, good real it able to I'm thing. reduces

Jonathan Chaplin

Thanks.

Jason S. Armstrong

Thank you, Jonathan.

Next question, please.

Operator

ahead. of from Jefferies. comes Goldman question go Scott next Please the line with Our

Scott Goldman

probably It doesn't in Thanks. we of of that competition. renewals Wondering maybe you're on but should vMVPD on lot bit how guys. know morning, I have average. competition about secondly, of good this a people targeting like bit video probably or in know Hi, year historical the perhaps Instant be on I effective of programming view it's most I side, has might little major going programming then some TV? you've side expecting. year. seeing how the lower a the guess, a were signaled expense, there, Mike, maybe than of you expense at How early if the the is that than changed just talk a lower all terms XXXX what from effective is think that equation. this And look a just terms there? bit little

Michael J. Cavanagh

I'll It's out. Sure. start Mike.

So costs as down of levels programming the years after couple to we said, to historical expected come this in of we big year renewals.

of I bit deflates regular the subs the some growth historical levels. So below in and of mix land we're escalators. back customer result, base the the said down, in little of as a rate in And earlier, of with shift combined as our that reductions some the a

comment the annual competitive further year, let trends landscape So guidance, year say. come on with We'll probably it's Dave programming just on next of vMVPDs. similar safe I'll to back that's And but see costs. this programming. for on we'll remainder that's the And

David N. Watson

anticipated this approach your the on but in landscape. we towards that marketplace. thus And we no a see as line competitive Well, with it, Instant changing, very our question, segmenting point it's TV, much saw don't

– So on build once customers, folks a you still virtual and and shift in real question win little again, competition the to But opportunity as have see a Instant they to early scale you back. some similar the bit broadband, fundamental of them get on TV. the new a

planning. in – part our part you been landscape this But business. that. when competitive is is with video, overall the gives that of absolutely video our do segment marketplace. value in best-in-class it solution to best lead more broadband. customer shift the And anticipated to the with focus XX we've the our towards And But package, approach competitive so to new We has of our continued connectivity

XX%. look residentially, services at share both it growing the business shift, are drives As There business opportunities. almost at we growth, services

Our I to focus we're a centered This is talk is how And to When you much business package look are is. growing when we broadband. XX%. in going with broadband. we revenue. is we in win, think, billion and on. our generating lead then overall And compete connectivity at opportunity, at $XX we This this It's point the customers, that on sale, in the annualized the very nearly focus complete start package we marketplace. from where

we'll We will I to competing. video, But connectivity continue just the not has how We're – stop going business. going think that see in out. our compete We're be we're focus play going not to towards shifted to and absolutely aggressive. things to

Jason S. Armstrong

Okay. Thanks, Scott.

Next question, please.

Operator

Cusick Please come line Your will of go from next ahead. Phil JPMorgan. question the with

Philip A. Cusick

a you contribution on can the And from customers, are who quarter year own Thank have bring the wireless, any usual? the shift from than second, connectivity. you And Dave, couple ones what Was Thanks. on in your been the and usage in Two follow-up follow-ups. can about of any price pushback device for the increase and if I that broadband was? how mentioned around to this seeing more type launching or spending talk you. this earlier and quarters? effective of you especially there

David N. Watson

that broadband, things. say Phil, I real just in opportunity in price terms terms see is how a there would we reasonably the in you level, not but share, also rates, on So highest of at of

innovate. to is focus Our

on have years the speeds, we up we through did really WiFi, ability XX, as ramped control great xFi app. the Just mesh better focusing with ago, and then

reasonably I to proposition a it and product. do so superior these broadband adds And all up you think when things, you a value really compete then with can where compelling just price

are not So networks broadband all I think created that, equal. again,

in are broadband, providing you can a If solution pricing your better reflect that.

we're reasonably. we can share, So getting price

with that We are approach. comfortable

metrics early. and just any we'll back that. little time to early usage And around But over bring in think of your follow-up to We you so But detail working the it. We wireless, operationally introduced in on the I terms device. own terms into go it's get well. too of like It's it's that. a the

Philip A. Cusick

do Okay. in auction one If mentioned can What's Thanks. interest or millimeter continuing Brian, spectrum work your this this. to maybe on I CBRS next either the auction year XG, later you wave year? on more the

Brian L. Roberts

of will. Dave's Yeah, on news think think complete that, ready on was answer our earlier have any that. I But don't about we XG. When I talk we today we're Thanks. view to pretty

Philip A. Cusick

Thanks, Brian.

Jason S. Armstrong

We'll All right. question. Thanks, Phil. last make this the

Operator

from with the Ryvicker Please will final Our question ahead. of line Marci come Fargo. go Wells

Marci L. Ryvicker

Thanks.

gigabit speeds taking You This mentioned are it you XX%, you secondly, in really, talk think, speeds? the people these on in actually last remarks clearly that prepared JV. still Or about signed how really then, the early? different one agreement than your Can of Charter many the is is year. offering And are clarification homes. you I

So the was I I wrong of announced, prior-year assume there am encompassing? all Or no agreement is whatever that and is renewal there? this,

Brian L. Roberts

on off, it just on gigabit, about getting out. Well, But primarily talk it. early is to we're it rolled first too focused yeah,

So it that's premium main the thing, and position. a in putting

early little a talk customers. to it's So about

Charter... the On

Marci L. Ryvicker

You're offering are clarify want to you just I customers So, it yet? not to just...

Brian L. Roberts

absolutely are. are. we No, We

Marci L. Ryvicker

Okay.

Brian L. Roberts

available and launched It's No. XX%. Yeah.

Marci L. Ryvicker

Okay.

Brian L. Roberts

this that So just and in that's really carry the partnership. is you is still in be to that relationship terms will of about we that Charter, talked May. going the effect forward. for through operational talking the aspect agreement But are And

Marci L. Ryvicker

Okay. very much. Thank you

Brian L. Roberts

And is start collaboration you a that the are forward. for I and XXXX. doing just to as all a off support. a great But Thank we're ourselves I your keep add Charter And informing strong end saying, just goes great Okay. year. to between forward in want looking think you Steve, the team great would job. to I we'll Dave, and that by you

Jason S. Armstrong

you. to Regina, everyone. Okay. Thanks, back

Operator

is There XXXXXXX. company's starting today's at teleconference. will XXX-XXX-XXXX Eastern is XX:XX It will at for the Wednesday, Time. the A XX:XX PM PM will also conference number the X run of Eastern available today's website and This call dial-in today. midnight Time on concludes be Thank May you ID beginning Conference a available be recording call participating. through replay number of The at Eastern time.

disconnect. all may You

Comcast (CMCSA) 25 Apr 182018 Q1 Earnings call transcript