CMCSA - Earnings call transcript Q2 2018

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Operator

Good morning, ladies and gentlemen and welcome to Comcast's Second Quarter 2018 earnings conference call. At this time, all participants are in a listen-only mode. Please note that this conference call is being recorded. I will now turn the call over to 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 call you to me risks statements, to may contains include X, slide you remind and refer disclaimer certain Harbor forward-looking Safe and now uncertainties. that always, number which As our this conference subject

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

Brian L. Roberts

our has and that Thank reiterate something lost quarterly been me you, and pleased results morning, Jason, let perhaps good recent everyone. in months. I'm with really

speed, cash delivered to the continue our X.X% differentiate with of expenditure Cable customer we're over net quarter best and is collectively results EBITDA where and new business successful point free have which we've business, in added terrific less and this execution. xFi years as our broadband business unique our We second results our a lot the focal strong small, doing the growth. underscore strategy by We business in all connectivity. These customer we flow, medium, XXX,XXX Communications, continues earnings services adds, in revenue coverage residential At total billion, it's In are to in our and market. to that fantastic this per second to products EBITDA towards team about and reflect share increased and are further and and see increasingly focus net a take and In team behind job robust on residential extend flow connectivity we broadband It and continue XXX,XXX driven special with grew our this. driving grow. growth leadership customers, excellent relationship enterprise nearly our control services, and it's through net force improved we've across operating momentum. relationships along We made was with see innovation substantial with and pivot in XX%. team second Fueling segments. and our connectivity capital adapt is quarter XX%. We with results position. resonating continue Dave capital, differentiation his in these XX cash growth investing business Cable a to changing a Cable video, a the Watson is of the the and healthy to talked marketplace. services, dollars quarter businesses of share $X.X company great network generated opportunity our EBITDA

As a with can on XXX,XXX remain losses customer part continuing the as whole in MVPDs of from we profitably the We experience. serve that net anticipated, competition video a quarter. on segments broader virtual contributed focused centered to home customer relationship second our

to well recent services experience. adding us ticketing xFi Xfinity and like linear aggregating like voice Integrating and to positions platform do and XX best by like from other content movie of third-party more. best-in-class Our TV this features Home YouTube, our activated Fandango Pandora the Netflix, apps launch

customer. having relationship results response are by and positive performance the with expect year on ahead. signed since overall newest that encouraged quarters over well with integrations also impact our a so little to product, far Xfinity more We the in launch, the of up lines the over and early Mobile. the signs XXX,XXX We're is announce pleased a we've In as as customer with of wireless our XX

year-over-year. with by interact the customer Customer improving ways customer and handled to rising level increased years Finally, the quarter of quarter, by categories, and portion broadband. in our second are making XX% double decreased churn for In we the agents and digitally and product more by completed us progress digitally. the satisfaction experience a calls interactions over one declined is second including XX lowest digits of in in our every offering

we've Cable offset which best on second movies on like Overall, NBCUniversal, the starting of track tough focus far. proud Telemundo, underlying customer in top Kingdom, at new comparisons our continued Parks. product businesses the one the expected the to all increased into highlights in in the Our across making to opening pay are great At quarter I'm exciting quarter; particular service of many Cup strength dividends EBITDA third Networks our really XX is business World: World X% of grossing and our so and film. trends several strides be time; highest attractions of healthy the recent as on Fallen Jurassic Theme our is very with which made the

just X%. Networks businesses during streams is generating and records second revenue at power Germany. live Its the XXX the biggest and also quarter. broadcast World of now big in primetime has for high in track gains, win by for strength volume the by to XX-week on MSNBC season it progress increased full season a September robust performance, the the the to presentation with Spanish licensing making won another in sure language fifth NBC Telemundo growth News. content made. retrans streaming collectively And and the recently our history. in closing has including pricing momentum, Cable great focus and we Fox year. completed tremendous, Underscoring content X% consecutive solidly the incredible The its in record continued not Mexico's upfront solid million has is been MSNBC importance strategy for of the the and network's TV growth impressive reflected thrilling advertisers, margin with MSNBC and concluded to network continued which to set with commitments. demand paid the Broadcast sporting EBITDA and win value and Cup this event widest numerous I'm coupled of Our and CNN event enough affiliate in all driving our highest gap the outstanding tournament, been XX live years digital a it content ahead ever May throughout ratings over advertising, single-digit and

XX% digital We across reflecting platforms. sales in also achieved growth viewership upfront our strength

EBITDA Parks, Theme XX% half to first of year. Turning is through the up the

X,XXX, Furious: across to team Fu Japan, rooms the our Panda hotel is a and the to grow. excited X.X couple its Orlando wonderful in weeks, more Adding has in when Orlando. on-site driver new recent Kung five years to continues to second which and openings a opening been to also Parade in Our key rooms total & strategy Hollywood and we'll more parks have benefit in we're successfully half, Aventura with over compared in the times in of Night attractions ago, Hotel execute with capacity from Supercharged bringing Fast still

a that, a over of the strength it and all As year great second see, let with half to first strong really you showing quarter me company. can had of the With turn Mike. we across parts

Michael J. Cavanagh

increased for Mobile. billion, The solid $XX.X Corporate good quarter consolidated Xfinity billion. $X.X results on morning, Thanks, to of the second $XXX the cash Adjusted loss share $X.X half reflecting at free $X.XX of segment million finally, slide $X.X quarter. billion. Revenue an to to included Other Cable XX% bringing the per flow billion with growth and earnings and X.X% our to Brian X.X% X.X% first results. Adjusted increased begin NBCUniversal, everyone. EBITDA EBITDA respectively. was in X.X% for increased And X quarter, I'll and and total

to point on margin that the including EBITDA reflect in EBITDA XX.X%. insurance and year-over-year Now let's improvement a less a hurricane in and proceeds slide million, contributed Revenue to underlying slightly in XX.X the net second These quarter, starting this include turn results second from basis XXX,XXX Cable additions increased growth. Communications with X.X% benefits EBITDA year's the basis X.X%. increased increased details also of and increased quarter. strong XXX growth in resulting the settlement in year-over-year a relationship X. X.X% revenue quarter of to business X.X%, increased and point X.X% per a Customer relationships than tax On results together

strategic and competition virtual XXX,XXX loss remains we in from video MVPDs challenging, a are said, a a of X.X% Video the shift customers quarter. in revenue decline Brian As our residential business. driving in undergoing video

continue pressure to this continue to their marketing. the expect virtual up ramp as We players

High-speed However, to Internet Cable businesses, our revenue largest strong margin total services. X.X% have successful Internet contributor pivot we Cable the results overall high made increased underscore again business residential to growth. and the billion, $X.X high-speed our towards connectivity

in past the Our over has year, by residential increased customer broadband new XXX,XXX including million net X.X quarter. customers the the addition of base

with for product best demonstrate, we've through As and our are across network we gig advanced the X speed and of footprint, elements xFi. Wi-Fi unique as the results and our our launch home competing tier XX over differentiated increases well million coverage control of hotspots home and out our these gateways in robust

Additionally, year. in our to one second is broadband clear. is of proactively will market approach the which marketplace of we the broadband-only ways and the adapted importance the current of value to our customers in have continue packages The half increasing

usage first the data on now time. monthly median customers' network Our for XXX our gigabytes exceeds

Mobile, increased pushing to adoption, ramp at into commercial to incremental double-digit acquisitions newest segment. footprint, X% Brian our segment to enabling average of Ethernet the across quarter xFi believe ended customers, as getting increasing an EBITDA Corporate relationship well Cable The our to with Business our our and for network XXX,XXX continue growth extension core and in per $X.X to continuing daily. devices relationship businesses, value share increased in win residential net customer Wi-Fi operating and mentioned, revenue all to with small of broadband $XXX in Services of locations Xfinity Other point product business customers booked new competitive of adds the in delivered X.X%. and network as quarter. our quarter additions Connectivity connecting positioning speeds year-over-year to formation with Business side expectation businesses. sustainable over the associated home enterprise revenue X.X customer as strategic business bundle, Additionally, within broadband deeper The and our customers the Connectivity is customer million in increasing our of their launched. this loss including business of our fiber and our our is services home lines, on our of well. We billion. quarter XXX,XXX our customers the continued XX us line and gigabit Offering subscriber in the XX.X% costs reflects relationships new the commercial XX,XXX with in the are another ahead as and the net growth and million, with

with pleased triple-play are own our seeing, Gig device high By are early versus we While double quality to your the and it attachment bring mobile impact bundles. of early, is plans, the mix indications and of still unlimited the including the the we of

progress control focus as Now and compared flat in growth to well turning financial the year-over-year. year on expenses to declined experience. Cable customer customer our X.X% X, to making Non-programming per we costs. ongoing on are efforts on our customer our increased the base higher expense even X% Cable cost total X.X%, as almost the as were expenses In customer X.X% relationship in our driven a reflecting particular, benefits down programming by costs improve X.X% service was of last and slide basis, margin

year. is earlier, and settlement cost $X.X up together, tax point. mentioned increased non-program all to last is could which basis on last this the and margin year-to-date basis compared performance in together Bringing Additionally, compared strong an from full-year insurance XXX billion, network, to now of decline the a higher higher. $X.X XX% a Cable to premise CapEx billion, offset be equipment by proceeds intensity This XX.X% consistent more a business by half, of growth XX in by as line points Based X.X% the businesses. second X.X% quarter our Cable to points previous customer on to for was our reduced Cable to improvement higher quarter. of deployed second that I margins decreased and XX.X%, our basis customers. addresses partially reflecting our video our to spending up points approximately believe outlook and ongoing connectivity decline residential CapEx on to over points basis our focus residential XX of continued spending XX in guidance in our customer was extensions with driving reach investment second EBITDA we the expanse XXX resulting year,

growth relative to cost XXX of EBITDA to Overall, basis we points. of CapEx intensity margin basis our points year, an For the guidance to full from with our to last results Cable healthy a year, expect previous quarter. basis XX now favorability strong and CapEx points focus XX up improvement driven cash Cable a the decrease control, on expansion, our in business increase of the in and connectivity flow drove continues in by XX% mix net as coupled shift,

of revenue. of Distribution Content costs quarter and results. ad increased These from solid Networks drove increased X.X%, for due well and partially robust Now billion the affiliate as increased let's driven comparison and declines. that FIFA billion. X% fees to slide year's X.X% These X.X% X.X% Cable provided ratings offset NBCUniversal's continued content was licensing, was NBCUniversal's a and businesses, to partially to comparison our strong increased billion, TV EBITDA grew the advertising adoption On of deals. Telemundo's consistent move increased $X.X $X.X from outstanding at MSNBC drivers primarily the our reflecting increased reflecting recent by on Cable our Networks slate agreements. fees, difficult of with higher increased improvement affiliate benefit reflect the timing Theme despite driven revenue a to growth, Subscribers revenue sales. XX.X% licensing World declined to with well by last advertising Telemundo's Cup. growth retrans new the by and and of growth another MVPDs results the at Broadcast production growth virtual X.X%, renewal broadcast EBITDA revenue prior as retransmission X.X% under year as programming $X.X of arrangements billion Parks, X.X% holidays. pricing the current declines. in to Advertising previous the as and offset at X by overall revenue other content tough the MSNBC spring just and quarter, results Cup. were Television trend to film licensing timing broadcast X% XX.X% of to Advertising of by impacts associated revenue World revenue billion expected as $X.X higher $X.X an of this reflecting under and strong

increased million. consistent was the prior World production $XXX recent consistent XX% about been Excluding Retrans to EBITDA would to costs advertising the of associated World our the have of due impact Cup, with roughly and have trends, underlying $XXX been which with year Broadcast flat the Cup. year-over-year. million programming revenue with

Excluding would Film and reflecting limited the by declined declined and earlier and releases World $XXX Cup, million, size from to EBITDA of digits. theatrical have revenue by releases. the XX.X% increased carry-over XXXX by high-single EBITDA XX.X% timing

second late successful theatrical in Split well Furious this year's XQ Out. to Sing, like expected, Jurassic strong the XXXX, in this of comparisons Fallen difficult As entertainment and performance created of releases the launched Kingdom World: year's last Get quarter Fate as as home

million concentrated to the despite quarter our second of of a X.X% which break, timing Theme results $XXX of was increased to spring Finally, in benefited which and revenue difficult this X.X% the a timing year-to-date $X.X revenue X.X% billion On increased increased to EBITDA quarter increased Parks the spring year last first out XX.X%. in EBITDA smooths differences, and and break basis, the year. comparison

up slide let's return on of So X capital. finish with

billion $X.X second XXXX. dividends stock flow We repurchases. of generated share $X.X As billion earlier, at $X we $X.XX billion of the $XXX million to returned repurchasing We to least of cash quarter. in including quarter, remain the in of I free in billion committed mentioned shareholders and

net current and ratings. with credit comfortable we We to EBITDA net continue maintaining times of we the our level. X.X around leverage quarter value X.X be ended leverage Finally, the times

momentum our probably successful underlying recent which to course and to cash speak rating acquiring free we months. in of of us flow allow agencies' Sky, the Assuming generation what underappreciated believe with significant delever Brian on will In has a closing, strength them. are the our said, for consistent timetable, we reiterate business in we but cannot been is expectations,

for confident future. We report that the results trajectory quarterly believe support pleased to again are this. we in well-positioned are and great our I'm

Q&A. back it give to Jason I'll Now for

Jason S. Armstrong

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

Operator

Thank you.

Our Please from with Morgan begin question-and-answer first now comes Swinburne line session go will We of the Stanley. ahead. question the Ben

Benjamin Daniel Swinburne

Thanks. this products business come ago maybe business product a everything nine about was you want so think to it of impacts wondering for you Two means related the look your that's for go-to-market in and to how Good to shift so the And return I else return a I business. that higher given trends talk as trends background your I'm been could the year, at that about that to your the video. over in But or a Mike started love Dave, that you capital of in and the months morning. shift model the if in for and mean months broadband And where last return Brian, the what of talk whole We both I'd questions; the about or several the that to over the is a result if hear capital connectivity faded this half can. on. certainly on have shift may thoughts allocation, as suggest intensity sort strategy going and this business sort don't terms capital you're what Comcast and back pipeline of shift. for in first does building, on analyze of becoming bit these margin business?

Brian L. Roberts

Okay. Well, thank you, Ben.

Dave over a bit for then Let kick little of to perspective. his and maybe me start it

our and as And us partially them machinery brand. repurpose team our more a with around capacity engineers all, investments recognizing First broadband our are have people this we technology rely company and taking doing xFi to great marvelous that job, innovation take gave more faster built to products broadband changing. and on of faster to opportunity times the and and make focus on that and that xFi build innovation

same the So that business company understands with services. connectivity whole

And best that's and be so it to that everyone then starts the opportunity trying with in class. understanding

the our focused happy I on investments allowed and consumers for think competitors are of to and some these us other things with opening see be make that an for products.

the first think which future. quarter strongest we're second best are in can momentum in this And had not that crystal better year. results, continue the ball And through we else, I confident the is the today's a seasonally anybody but hopeful than the We have with we've don't they is so half quarter XX years. of pretty your

think a great achievement. I So Dave? that's

David N. Watson

Well, starts what with Ben, it Brian said.

think I we that the growing connectivity number of priority that have. side opportunities our one the is

So we around feel we given product level, broadband. broadband. there with current in invest, how our literally everything starts manage, we that in how at considerable the penetration share is it we how look pipeline, And growing upside

We we're broadband. a service, So is better taking broadband deliver people better share. growing, market want and

years, by This strong investment that So, our in quarter. retention connects, said, feel just continuous the quarter performance. really strong to is highest category. ties and Brian this broadband This didn't it's good about overnight. And this second as driven in XX happen

We residential have the commercial broadband been both for side, some focused and very on on connectivity time.

average, our a of higher every megabits of and our now XX% we customers speeds. our have all gone XXX connecting, have so is increased on brand. Right row XX Wi-Fi. with about devices coverage their delivering year, years our control, and a speed in under speed, and XX residential And we're focus And household have the xFi in or customers to

across gateway entire gig we've the the and devices important. very is around investment Wi-Fi and mesh footprint. virtually launched And X coverage So

So, doing performance our to value the the retention We that's keep adding subscription. and think why churn is I well.

segment been packaging, is that going addition, segments speed our from after We're helping high things. segment in around we and So multiple focus has focus marketing we marketplace. the but increased standpoint, a have fuel only the the really and

but about the less growth. for overall good feel second broadband not and us And in So the infrastructure. jump me, can more from good is shift really position, capital, to it's very only a CPE, for a do puts net-net for capital in, optimistic it's good This half. standpoint, for what in let good broadband mix, video Mike this Mike? us in this margins, reflects

Michael J. Cavanagh

Yeah, thanks, Dave.

pivot So Ben, dynamics, connectivity. completely with consistent just return on this the to capital

margin on team as more about intensity. that's per of and and which product, level the think lower at becomes what the product broadband you results are that is capital customer You profitability plate driving customer. Dave really EBITDA is, doing it here, center a the growing the see lifetime with higher And higher from focusing obviously, a

level and is, we're sure, sets shift video, level seeing talk in customer seeing that is little That sustainable ways. shapes our up ahead. something in is where a in anyway, as to customer the results keep will because really and the that's can that going term manage good churn drive low the where we're at and add profitability team per and doing Mobile other more, in but to way results can better looking other a So at business. numbers we existing over effort that it what a then And like the you're low Dave products I'm in Dave hopes the chase beginning add the profitability long about to hopefully not some video Xfinity the incremental at

feel confident and very return the dynamics those trajectory all us make factors the long-term about Dave's together business. So of

David N. Watson

talking addition, that growth, in it's Ben, customer share in driving just given addition to strong, rate a great the per on strong are on thing and we revenue about basis the XXX,XXX market product. One a profitability focused as

focus our has So as well. ARPU growth been on

look So grown HSV at almost ARPU if we by have you broadband. the and X% in quarter,

that's balance good returns well. the it's two So our between we and how as look on a

Benjamin Daniel Swinburne

Thank the you for all color.

Jason S. Armstrong

Ben. you, Thank

Next question, please.

Operator

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

Jessica Jean Reif Cohen

Thank you.

to just then I said have follow-up NBCU question. and Dave what a Just a

And Can then to the companies when on key media usage, questions. pricing? pricing broadband's, guess NBCU going digital to and progress would usage-based to to what indication Theme plans Worlds. I Orlando? and about in name Addressable that are the Fantastic that be the filed the you Universal not? you companies. Parks, making in Could and with patent planning done the versus about for, And done timing et reconsider Is be gate talk office secondly that? you talk on mid-June for an dynamics ever side, given another on you it that? expect China? that China, demands, any Do the and And issues the two the power, that be cetera, between you for So Any And you why then about? really advertising if of backlash going of on can you update give progress can needs to will from talk some pure any still us. on U.S. drive trade traditional seems not, Thanks.

Brian L. Roberts

start. me let Jessica,

been broadband core think Our speaks in the to ARPU X.X% focus I position is a outcome has that and the good that. subscription to

rate that. that We have impact increases fair

revenue is price fairly. does sure on centric source so take we that's broadband-only, making are focused a – entirely very we broadband and how we're that around packaging of elect Our and disciplined big if somebody to

time where everything very think So but rate we'll core opportunity focused That's we're the the over I subscription. evaluate on is.

Stephen B. Burke

we're number in selling are that's a just of us. terrific we've digital which strong seeing improvements, and to really terrific. advertisers. differently. And But of sort of related addressability which related to upfront and important were set as was fifth significantly followed market differentiate upfront very to was sales obviously products our some Cup here. we that advertising making very led We're of So a of some years maybe technological World sort and is be investments just and are number seven going been Overall, of the packaging volume scatters upfront up we've a we the behind against significantly. completed making up and strongest ourselves of in and This advertising, rate the others that rates terms

gate We In a basically of new looking filed at are a name terms in we registration. Florida it.

consistent IP. a have business. lot the Florida destination attractive. of a a very we most our We Park that And gate from love a Florida of think potentially we great We have be the advantage lot and would turning have businesses. a two We one of runway would three-day of It's think – in best, or another that weeklong long to destination. Theme

there no of sign be changes going we terms starting friction huge countries. We're Universal our park actually Theme to between China, Things be a very, believe to whatever well are a construction. and In in Park to might very of addition the Beijing continue segment. vertical related two going any to is

Jason S. Armstrong

Jessica. Thanks,

question Next please.

Operator

come go will from ahead. question John Please of Hodulik the UBS. line next Your with

John C. Hodulik

minority media? Number you the in U.S. a of what's focus bid. view That's just investor in Sky Okay, thanks. DC And one. offerings level Maybe about issues on wake as NBC we impacting the the regarding number feel subscale your the is Hulu focus of being Brian, become with Fox, some could confidence the you stock. been two, if could your that talk do the for strategic bidding In have three, that Disney of controlling the company? increasingly Thanks.

Brian L. Roberts

Thank you, John.

we're on just this today's it's of I better That the great them working we're scale. the market scale, than results points, of show to of think address well, comment prepared hit of that our company I today. has products, your and with I that our best-in-class. that, number comes some generally in maybe leader, But me in maybe some terms and think Let scale, even not

international of it was mostly United So was opportunity. approvable we in expansion it, a and States. the case disciplined regulatory Fox, it had very we to We approach that it opportunity the about belief thought was in our in unique but were

possible back, that build to at, we we've because making shareholder it couldn't pulled it that which by our at going be we well. buy we to fact, was thought price conversations had the judgment enough value In seemed But ultimately, which increasing. we're to in

We've if we looked we than years more things, can thousands over that's create XX several acquisitions and increase the to company. been hundred of times able work. that built So value, of how we've – those transactions and we have a at make done shareholder and not lot

that we're addressed anymore to So business, capital. will don't focused a issues. unique now. also of good of it number We but on well, your Sky fit think say hopefully today I use a want and it's It's great

John C. Hodulik

Thanks, Okay. Brian.

Jason S. Armstrong

Thanks, John.

question please. Next

Operator

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

Jonathan Chaplin

quick if questions for Two Thanks. may. I Dave,

trends quarter? per really function as cost variable improvement model that if a business? in can EBITDA in a sort thesis there in was investors you growth as are on in a lot sort slowdown that cutting you three seeing I'm cost overall guys increase sort of a dropping drivers as that was versus in shift last realize. were of it of market the versus continued of impressive a much quarters margins the been of the perhaps back the in just from out business doing wondering just Thanks. the as not impressive. up of then well. you had cost while much subscribers and quarters So the for slower terms the is being the how three piece in that really just maybe in versus a video this if How the And over is of focused quarter you business we've us in customer broadband for what variable this some competition, last context, there's a more And of video streamlining decline growth relationship this looking than step in have is give you're

David N. Watson

with start very good me of we've let performance Jonathan, in very, that Well, seen one the that continued again, has retention broadband. – trends

business. has of side what continuing, upticked connect the been has that's while So the

shift segment. and gears and a mentioned broadband-only the We some bit as have package. increased, more Brian so has we extent, did around Mike, little And focused, to still

helping the good focus customers we where video, with And products, best think I have a in today. of package with I really we marketplace centric. best options terrific And addition, it's a of combine video the We're broadband broadband-only. in the of but that have supplemented its all broadband. giving around the We think strong

So I has think that helped.

So record I connected but we that's the it's more it offering constant services. – broadband think overall to and back this why retention keep of and investing focus just had improvement to level Every year the coming and of performance. just we

operating it so the down customer relationship, expense So on expense the leverage, was per non-programming X.X%.

This to we do efforts our we the progress point, customers out benefits focused it and the our single the best things about we there're so and of transactions takes control is been in we financial that of on we're for customer cost this have talking that And very that two seeing thing improve the absolutely me your the are making to business. to experience. can stay

important we're it what easier just take making rolls. you the this. is XX% with reduction in time. This So stop. of X% phone reduction will just business we it the do improvement tomorrow in truck be is that just think as going another calls, not – to it's on said, it to we're be is doing when the we're staying because going all and to today, Brian And important out, continuous It's area

well. satisfaction customer So improving is it as

a how we think business. that is very just sustainable, we the run part this and margin So important of

Jonathan Chaplin

you. Thank

Jason S. Armstrong

thank Jonathan, you.

Next question, please.

Operator

from Your next Please question the comes ahead. Ryvicker line with Fargo. Marci Wells of go

Marci L. Ryvicker

last of you Do end efficiencies entire topic you a TV there pay have you it's questions, Thanks. is be we're to I level to a trying some percent confirm a all total is of may MVPDs helps it indifference if guide, of as know have I where the hot not around That's lower the figure may CapEx just could And XXX% virtual pay think then more what the penetration of industry? thoughts industry. broadband that because And your vMVPD projection couple related up lower business? your the out TV subs, overall will due question. and any and that. somewhat to first ultimately to the

Michael J. Cavanagh

let start. me So

In I you and for it can would well. But it's broaden terms have to NBCUniversal I – even give we don't said, because we're as all point say as going is think think I true your a speculate. of it actually virtual MVPDs, I number –

is One we're diversification that to of that way strategies all we're think it's not come our have and new I in a additional competition. nothing losing from more such technologies than benefiting or as

the our those having more if to things new to NBCUniversal, to it's in and individual integrations years, it have that? at to XX Netflixes channels that why as home, not bits, If we've point, is for all future home but having a us. Because integrated that's and sell they're all video and the more are there per to the we distributors over Over trends per reliable distributors to Internet consumer and why in you'd those and able is your and broadband in keep look at more bits and two recent clearly businesses, done. more We'd like YouTube devices are saying of be shows packages are more ways can more devices, we've growing and great more growing sell is faster bits packagers. they that the

a the going And time these uniquely benefit most States. and I has we're they're the piece most, and a true happen television's history, dynamic been or So is all if And year company globally add one it changes. think that's positioned true very single all nothing think overnight. don't you in various United that's of from parts. maybe This as we up to profitable in the to and

else the than having And a so that's track hope take that have to get to maybe of good a our trying strategy shareholders, return we that bet future. in value could these record great our shifts company so of wrong, creation something us to long-term sustainable given that's positioned do anybody of for without a what's we of better and advantage

Brian L. Roberts

of are relate our CapEx does absolutely So, there penetrated guidance shift video quite we're improvement. is XX. around good continuing broadband. XX Mike and question, job it basis we're this doing with of in of highly And in XX. to of XXX versus a less a in points as customers, said, infrastructure side the XX we're basis invest with We're but to But bit to also mix points terms guidance terms prior video, improving the the

that not we're as base. going proactively So to

CPE So that. that's less is that is driving it video

Michael J. Cavanagh

the XX, And which that's of now stages late we're remember, penetration of really, at has XX% penetration. crossed

always the business broadband as capital and what that the back once investment services line and investment offset So will side. you're extensions on to good a certain said, ease seeing network for point, with we in that's by get we

Marci L. Ryvicker

Thank you.

Jason S. Armstrong

Thanks Marci.

Next question, please.

Operator

Our Janedis with Jefferies. go next question will come from the Please ahead. line John of

John Janedis

Hi. Thanks. I two. had

talked willingness across a separately, budgets to broadly of this in slowing upfront, the talk seeing buy still demand see all the themes obviously earnings direct-to-consumer. but to has advertisers about been moving of the you the you can And about more your platforms? then of terms in shift you're season one digital? you do of And First, of

understanding could you. may you Some for was there hoping Thank more over next be your months. a on XX couple us to give strategy you. XX DTC of say the options I

Brian L. Roberts

budgets hard of digital, are the what changing to So, the think exactly in to TV nothing to say or that there's show opinion, television is I because a market remains going has than some to compelling percent it's strength hard is strong. the buyer's but a been just marketers' a you're very predict nothing trying very, And of spot. brand if in a networks person's the by as offering breadth millions people. a all of provide great and breadth mind about is Internet Linda the our sales digital better sort what change on created terms that There those we're advertisers XX% digital all as is television for Linda a of over have United team across and points watched the properties States. of all across our millions And and in The our and of to of the offering, that Yaccarino is of other we of selling. properties finding all also integrated allowing of solutions and of go spot to market rating

and and AOL, We have deals BuzzFeed Vox. with Apple

obviously television despite achieving streaming. feeling that The think proving combination, a vast that particularly television and like be viewing is Facebook for Netflix or Amazon And we be Google are right that not or viewing is gigantic so big television big now continues in direct-to-consumer, The Hulu. everybody vast not sales. to ad to is and terms valuable the there focused fact completely So events. of people majority of very viewing television think I on Netflix. is majority The for of vast linear events, of majority is

is they're different platform watching future streaming, watching are, cable consumers if or they're think watching Our kind they're of selling any broadcast. if I wherever if linear,

are that's our the the those and avenues company sure all to And that so business. that the that strategy path and of video on. that's we of me, we're position maximize to that open to make successful at And we're profitability intelligently look to a kind trying company our avenues and leads those that's,

John Janedis

Thank you.

Jason S. Armstrong

you, John. Thank

please. question, Next

Operator

of Our - LLC Douglas will so ahead. Doug Mitchelson Securities the Suisse. Credit Mitchelson morning. final from Credit with Suisse come Good question line go Thanks (USA) Please much.

and next CapEx the you're next wanted And then and increases we I have capital saying brings I few I just you remarks upfront was for you – competitors had fiber the often any which NBC I high you to on. on stats another there wondering Cable I intensity? CPM we years, projects and are Cable Brian to market. right. obviously focus are led his the big question make long-term double-digit got business. get into How years about look few capital out I those the the to I then update guidance had debate of think And is XX your over sort of know think the that focused you long-term single-digits price as intensity off home prepared your said that just should of the many the sure for the Steve, think be question. in coming should indicated So

of you're make XQ dynamics second holiday around any is the hearing sure what had saying. timing? the to just is pacings just from And all consistent some Park related that relative to I update the question Theme with So but saying given other Thanks. was to are quarter I Steve on right what for I think I competitors what advertisers the wanted

Michael J. Cavanagh

at affecting enduring intensity Mike. the do lower on our I'll that back intensity But that that are Dave year January. I It's the go annual the first half affected trends in the and are Thanks, question, Doug. saw we'll of can think and come guidance Cable to factors capital just in. and sustainable. jump start But capital – are that we ones that in the

I so that's And takeaway can leave there. And I'd you have. a think it

David N. Watson

where offer with – we I'll started. I would only end

broadband business, capacity. builds, services, proactive around the We business focused infrastructure connectivity have continuously on

more a investment it's – a steady just it's that plan. of because So

talk mean that Cable the but so I side. (USA) Suisse And - from Dave... later, Credit that's Mitchelson we'll Securities – Douglas more LLC

Brian L. Roberts

terms that digits. high-single may actually we cable but the NBC we we're than there prime specifics market. NBC the that upfront, higher of growth have rates was our And particularly channels XX%, channels, cable led and our the confident be confident total, some the over In of pretty pretty leading about said more I think that side. up And some market, I'm we're on general, in

fine. others are feel Parks due business. There which hotel pleased Parks terms attractions going but very are quarters, doing about are or our new we than of Parks, In to openings, stronger to be

in We you. Osaka - U.S. some are parks to Parks as doing Mitchelson degree (USA) the but have and weather Great. poor LLC Thank Suisse Douglas a well, in had Credit fine. Securities

Jason S. Armstrong

very Well, you call Regina, end Thanks. thank we'll there. Doug, much. the

Operator

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

may disconnect. all You

Jason S. Armstrong	Comcast Corp.
Brian L. Roberts	Comcast Corp.
Michael J. Cavanagh	Comcast Corp.
David N. Watson	Comcast Corp.
Stephen B. Burke	Comcast Corp.
Benjamin Daniel Swinburne	Morgan Stanley & Co. LLC
Jessica Jean Reif Cohen	Bank of America Merrill Lynch
John C. Hodulik	UBS Securities LLC
Jonathan Chaplin	New Street Research LLP (US)
Marci L. Ryvicker	Wells Fargo Securities LLC
John Janedis	Jefferies LLC
Douglas Mitchelson	Credit Suisse Securities (NYSE:USA) LLC

Comcast (CMCSA) 26 Jul 182018 Q2 Earnings call transcript