CMCSA - Earnings call transcript Q2 2019

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Operator

Good morning, ladies and gentlemen, and welcome to Comcast's Second Quarter 2019 Earnings Conference Call. [Operator Instructions]. Please note that this conference call is being recorded.

I will now turn the call over to Senior Vice President, Investor Relations and Finance, Mr. Jason Armstrong. Mr. ahead, go Please Armstrong.

Jason Armstrong

and operator, welcome, you, everyone. Thank

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

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

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

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

Brian Roberts

I'm Thanks, our execution our pleased of with quarter continued Jason, everyone. strong successful and strategy. good really results morning, second and the

adjusted businesses significant $X.X increase of of contributing quarter, to of in X.X%. All growth, billion EBITDA the an demonstrated our

generated the cash billion. resulting XX% also year-to-date $X.X All in of increase We $X.XX total in delivered we of billion EPS in an second prior of quarter, year. in quarter, the $X.X the of over a adjusted all, flow free

driver we half retention. Sky the which In lead of we first million key many and year. and customers this we The in and in added revenue in the Cable, be XXX,XXX continues XXX,XXX each generating with per of the markets, most with strong technology. the $XXX valuable world's Across attractive content in with position compete, customer sustained and our market margin to month quarter of new XX relationships growth superior this high all products, geographies

relationships, enabled focal the is network. of by world-class our connectivity customer our U.S., the In point

in to the million the brand additions and generated year of in well in XXth deliver on collectively, principal XXX,XXX X exclusive with In again, are differentiation and, driving our businesses, premium revenue quarter. connectivity over the customers, Sky's is content nearly relationship net additions. consecutive of XX% net Europe, broadband growth Our track

popular and leading the we're have a to the of also sixth At for key company, year the generations across productions a the scale adults Importantly, extremely in across with path number vast library XX new of NBC, and geographies. demographic XX. in one U.S. and are IP content we finish premium to straight on that

develop we're Telemundo, hugely language executing Furious and the with our of the we to at and highly number & Shaw this Sky spinoff original including later acclaimed of one And In successful of second a quarter. return August. look lineup in Film, Fast the debuted Hobbs Spanish which slate And content, primetime. to their in strong strategic the franchise are forward continues approach Chernobyl,

capabilities success, the On content. the our more Studios investment to production double expand back of in this local and Sky launched original we than

and safe breaking XX% shift was to next particularly of digital drove our helped record as we prepare market led scale levels The we historic and is price. video, important end, year. year, year. the which and of upfront volume average video volume for all to the to core We launch Advertising over a close strong. and all advertiser's an popularity over prior marketplace increase streaming this platforms is this screens, NBCUniversal's had billion, content To down sales, digital, similarly was content, embrace ad-supported the to between The on service we XX% that linear unifying environments overall barriers trusted brand and the year. an $X And last premium need portfolio strength. increase record and of once price again, both

opportunities from a uniquely the capture strong the and profit So and we when you relationships, our add to and markets. strength of advertising in capabilities, growth our content scale customer premium position have

and of to want apps to including enjoy streaming years our in better to has almost QX for without most home. the to proven was linear At who That Sky's moves Sky TV approach already ago. popular, launching The the the NOW and viewers X serve out curve, popular be significant a customers the made of incredibly platform platform, evident ahead on in segment, net content durable we've example, consume For in Voice XX a subscription. additions. Cable, streaming broadband offers remote, requiring our traditional Flex new content

leadership we're We service streaming NBCUniversal, earlier believe the year. Finally, the direct-to-consumer assets at businesses, on strength with this our access combined we making and announced great across that our of All a to lower continues. tens cost and all, will of and as special momentum our millions offering. in strong both our operating of truly deliver of entry financial risk we customers, progress execution

better world-class step a great right over at globally. our our to evolve broadband outlook growth, for friend foe. relevant are to highly and as this The platforms approach. video there all while said, driving significant scale now. that years, of believe But altogether. allows scale that we company take momentum in businesses it the married you are ecosystem a rated, those roadmap it our that and always and more leading and felt invest, as And maintaining both add fastest than has you is an continue in to substantial we've Internet been and It's content. got the well even strengths. to us change competition our each when We If businesses plays of We've back, the in

significant year. you one double in the grown X by over we're in our if pick showing we've EPS those the during consistency In business, of stat last close XX XX and years, digits adjusted in fact, other XXth to our transitions years, look pretty just

half Our of the same. second our of continue and more for results outlook robust growth, is and this trend first quarter

you, Over to Mike.

Michael Cavanagh

consolidated I'll on second with begin Slide X our and morning, results. Brian, Thanks, quarter good everyone.

reminder, a As XXXX. acquisition completed fourth we the of Sky in of our quarter

a date, had said X.X% increased as EBITDA results growth adjusted Sky X.X%, X, transaction on reported revenue Our pro the adjusted and while billion On a basis, reported to XX% revenue acquisition that, Sky January increased pro basis, billion. results XXXX. $X.X include EBITDA the forma reflecting three $XX.X XX% businesses. across and if increased to to forma all from increased occurred include Having on

grew mentioned, Brian per billion. cash $X.XX $X.X first billion, $X.X to adjusted was share bringing XX% and the As flow free half earnings total to

Now strength controlling costs, a continue improvements delivered best-in-class to consistent while customer the to our businesses connectivity starting continued in also winning our experience. another growth. customer drive are network, combination very Cable segment and We let's X. success that healthy with results, that making Slide experience profitable on of growth, significant on strong, metrics our in Communications the Cable strides believe quarter turn by customer driven and products of will

over Total billion well quarter the quarter quarter. services Revenue second ARPU. X.X% to million the customer in led steady and by both X.X% in driven and growth relationships increased revenue for in year-over-year business X.X and in higher Cable Internet last $XX.X as customer as relationships XX.X residential XX the services residential to was XXX,XXX customer Overall million, across months. the by net business increased the high-speed additions increase

by Total the consumer viewing respond in continue video declined quarter to we as preferences. to XXX,XXX subscribers change in

growth strategy. will evident in relationships. before, and value play relationship unprofitable important We executing X.X% to customers, growth the success video will our results, business with not improvement customer chase relationship adjusted connectivity-led recent in those Video retaining customer subs. continue continued said to best to residential at approach broadband in strategy we our in drive our an But continue total our of year-over-year role for quarter. lifetime is The on services growing will and EBITDA per drive including our remain connectivity we of record the as Consistent and our disciplined business, monthly second this with in retention trends, broadband Cable.

Our revenue quarter, up the collectively, businesses, in in billion reached these year-over-year. X.X% $X.X

Internet grew solid earlier, X% this residential In I high-speed customer addition ARPU quarter. that to the mentioned additions

Looking healthy balance rate ahead, both a growth. we expect customer to of and continue

still business, Our wireless is net also it's Xfinity impacting progress fine-tuning growth new while we Mobile, adjusted our our standalone at to important and to business new million, already retention, and path the contributor while attracting And operations. another also quarter, to losses $XX positively reflecting firmly on positive in customer second This is Xfinity a customers. added XXX,XXX our economics. Mobile scaling at reduced lines quarterly EBITDA We Cable.

performance in anticipate quarters. will seasonally acquisition financial trend customer-related expenses fourth and improvement expect third continue, While the strong Mobile's of this we we overall in increase Xfinity to

to we continue slightly basis. and as increased cable margin while on see to X.X%, also expenses number total by by cable increased X% now Non-programming on X.X% our per-customer benefit expenses Moving expenses Slide disciplined increasing total we but of of X. controlling serve. the Overall, costs, a customers that improved the to approach

on performance many The of this of to continually ongoing experience Our transactions our drive company the reducing and by customer customer out of the digitizing metrics. unnecessary business. efforts across quarter the its remaining key transactions had best continue to cost many improve record

rate expand digital contact truck and and customer lows as and to messaging rolls record our base. reliability proactive we instance, to hit improve For continue

the continue benefit up Putting renewals. in deliver our on healthy Xfinity increase performance in adjusted and XXX connectivity only rate altogether, side, low strong at X.X% EBITDA of Cable. On expense growth improvement basis enabled expanded to by relatively in which focus programming us X.X% of growth, points on contract management at we the margin this the our the it reflects a timing EBITDA quarter, cost to to XX.X%. Mobile the businesses, ongoing our

XXXX. of slightly basis up compared for improvement of the improvement half XX.X% in and improvement Cable our in full margin second performance XXXX. EBITDA half, increasing in of our prior prior an at is we to year margin for in our to on XXX the points from in to our the now Based increase guidance. basis outlook XXX guidance above points continued first are year, be expect the our We the This

infrastructure the the in extensions lower resulted the other construction in CapEx investments making spending to This Finally, to cable XX% intensity we're timing part capital quarter. of billion, decreased which line in and of and and for network. expenditures quarter scalable due plant X.X% primarily in our second $X.X reflects

contributing That a position at rapid XX basis high broader for enhance to guidance to connectivity, from and stay to improvement the video has in investment of said, in moderated. us compared network, in to adjust of continues while consistent is improve to potentially And expect network deployment if in expect increasing of continue guidance, in our data trends We by to and This expect expectations, evidenced of upgrade in by XXXX. consumption. competitive the as is could as as intensity investment broadband timing now part, will growth in points we the CapEx beyond toward trend total of our which number original improvement This new in attractive CPE are the to year. rate subscribers least well business our enabling XX invest our our the our cable as the points don't we full shift multiyear basis the of we video continue CPE by provide the by this and to driven, XXX decline emerge, plans customers' opportunities CapEx XXXX. intensity in ahead an we with XX.X% that underlying year year full specific our decreasing

cash by in on is The formula CapEx to and strong the shift. total, net a seeing expansion in of cable a drove strong focus business Together, with this quarter cable team's in as and of the growth encouraged continues results first increase In Cable the our half cost we're margin our the customer by flow of XX% year. year. adjusted EBITDA and healthy great first working. relationships half and decrease control, with in We're the consistently total connectivity mix performance at coupled driven the intensity

by to year offset agreements, driven were X.X% across the with clearly results benefits by as NBCUniversal all subscriber higher renewal previous Slide pricing. to Networks to offset Now $X.X X. of and Advertising ratings by with the IP. revenue Cable X% X.X% $X.X NBCUniversal's to power increased of content billion businesses, our increased demonstrating on range. EBITDA billion. Distribution of revenue to ongoing contributions lower increased prior increased premier EBITDA our the and partially let's X.X% move revenue losses in X.X% consistent the X.X%, portfolio was

due X.X% year. and quarter. heavy note year other license third in become the increased the parties licensing content programming second to challenging in would to Finally, the last of our half comparisons considerably level content more licensing We of

and to to Broadcast revenue XX% $XXX EBITDA X.X% billion million. to increased $X.X increased

digits, advertising. the broadcast strong EBITDA year, last retrans Excluding the up up World Telemundo's double revenue mid-single-digits of to growth was Cup in and comparison by FIFA was driven and

revenue million. XX% Retrans to increased $XXX

some double-digit Excluding benefit market the soccer from well with offset increased game quarter. reflecting World as price in more were ratings scatter strong higher NHL advertising Cup, the mid-single-digits a Stanley very lower as than Copa an premiums as Cup price, by America and additional

million. decreased offset this World: Life XX% of this of when revenue XX% Pets The X.X% increased second year a agreements. XX%, the quarter under the to billion, revenue made Revenue reflecting release increased by by while quarter. Kingdom EBITDA of last Secret Theatrical declined Filmed licensing driven X tough the Jurassic $XXX was reflects to in tough Content $X.X content Fallen to comparison Entertainment revenue available partially timing comparison. licensing

revenue Theme by to X.X% and opening Beijing coming nearly $XXX opportunities XXXX Parks with business driven the future spring in soon. and Nintendo increased of the break million. years other to aided we Parks $X.X about our runway solid by spending. of We're and excited opening results EBITDA great timing in come significant X% higher Japan Universal to as in XXXX, These World in vacations a billion increased guest higher were attendance, have

Moving Slide X on now. on Sky results to

growth referring As currency Game double-digit and of Chernobyl. subscribers, earnings I release. January XXX,XXX occurred EBITDA a results Sky will consistent Sky the of breakout Atlantic. results if quarter exclusive relationships. with in Sky was from with on the solid with to revenue on also had basis, were reflected million Sky on the pro customer customer mostly Thrones to additions and strong ending our primarily growth, growth hit, be Sky debut Customer consolidated the quarter. what's in by XX rates Both transaction driven reminder, as streaming from the X, original a a growth and constant contributor significant came added our relationships, forma our XXXX,

Importantly, in are entertainment viewing content. than watch customers to The time and Sky increased spent by investment choosing sports year-over-year our customers Sky more amount more of driven channels XX% Sky programming. by

of intent mix which local change to announced the per back but of in from now mentioned, as a X.X%, performance, billion. the customer. strategy Sky record as the in in to shift revenue Sky growth, Studios our content. of environment on launched the incremental addition our quarter X.X% grew customer. offset revenue investment original increased more to In doubling Brian content production. excellent This reflects As we've with on Direct-to-consumer original $X.X this investment macro partially revenue The difficult in towards in Europe, a per relatively the previously streaming benefiting contributed business, increase includes well decline but average customer rate U.K. ARPU revenue revenue the by amount our subscribers, of at the lower

content $XXX of the in line programming of Sky's original investment XX% including the reflecting acquired and increased Our is our programming, Germany, recently top slate well sports modernization Italy rights to in million, growth. as as exclusive driving wholesaling revenue programming. sports of

termination XX% million. advertising declines amid in by the than in to decreased prior the favorable environment plus a the revenue Finally, Europe, combination increased offset programming to related macro driven the more including year, growth of market, Sky challenging sports ad costs. cost step-up which, comparison to a which quarter our cost rights in revenue X.X% settlement, $XXX in operating together, efficiencies, at and and at by expected Sky EBITDA had contract

Finally, wrapping $X.X the Slide capital in year. in a of cash free quarter the We first up total with flow for $XXX made for allocation. of dividend X on half payments and billion the million

deleveraging. quarter remain the Hulu leverage our in to focused the Should Company. progress are was using commitments. floor continue on deleveraging our to debt. with at good Pro such and proceeds deleveraging embedded ways announced agreements We we our would of monetize end exploring recently in the transaction we make value down pass, to the by second also Comcast forma to The Also efforts net to come Walt We paying meet track accelerate a cash Disney realized anticipate X.Xx.

in are closing, In the results the the and we very throughout our year. pleased of first quarter half with

and believe, intrinsic to total high turn, We a drives shareholder strong continue in significant consistently time, returns. growth generating which, execute we flow, cash at free value over and, level,

So it to Jason to lead that, I'll turn our with back Q&A.

Jason Armstrong

let's questions, Operator, open call please. for Mike. Thanks, Okay. the up

Operator

Instructions]. [Operator

of comes Morgan Ben Your from Swinburne with Stanley. first line the question

Benjamin Swinburne

and/or How this convinced to licensing shows from Netflix opportunity just or do about Jeremy. like of that I'm do spend One, take we've at that And updated streaming or adds in around we down of content is continuing two business around to for their over company just down move have for dilution outlook hear the building Maybe whatever talk relative market Dave to to the at -- the obviously, think strategy. thoughts saw who continued the the you about I questions. wants it, spend, drive this you when you're of product formulating XG then still gains on? that broadband there's streaming maybe last arriving Brian NBC. is lot Steve for growth seen like the loss you going investment The but We've sort Office second a market NBC to can think of there. in know Do Chernobyl to about love on someday the come? sort you the particularly think the and years, seen I'd broadband a of and programming curious, terms Are or cost pipeline the of well. road? you really net you worth least the couple NBC, level can your you you if of the media expect on. it deliver about doubling service your you're incremental seems maturing, I road? focused is, every so or And share plans, upside think

David Watson

Dave. Ben, this is

in investment consistent the steady, a with starts everything network. broadband, in So

Internet we'll most whether high-bandwidth and TV. So to continue supporting efficient deliver it's applications, way effective of delivering the the I -- think to gaming we are

built those for applications. network is Our

ubiquitous We're we really match throughout XXX% footprint, do in continue strong of we our have way to stay to now will where record, And years. One big to X available. times, on. to continue track have capacity. that XX and our X comes we'll speeds. network XX So focused that down areas We going it is a have gig we

on going we're So focused to that. continuously very

WiFi critical is the for all different home the in just devices.

the best think, the gateway, marketplace. in I our gateway So is

over and We the improved. the continuously is brought easy make marketplace. that time, it. have make optimize into coverage it they're sure It's to have And we automatically through to pods easy install so And to app able then, being we the that proactively optimized pods.

not is is the network, customers get and least devices over and, but do we we last do this And manage do attached control, security. with time, to applications how we help increasingly, how how help

of together. So up all brand come kind xFi add to of the which kind is things all of of those xFi. things these in

look you And said, looking at. Brian performance, this we're the at is XXth year as the

For XXXX, over customers, revenue. strong gains we'll X balancing million add share we're broadband net and with

I we're growing, value. this, is helping So good delivering the accretive, ARPU think growth. and it's as EBITDA is do we growing. revenue margin Broadband it's The so

So This start innovation. a solid think this broadband overall, pipeline we is have for with we category. I --

Brian Roberts

question, we'll with Flex. and have the want about to, add, we the to see this then thing we The team in? want great customer, in this some value-add video pivot Because we you think think that would -- to Dave we ways. relationship that, to second description latest keep nutshell, is that I has more a is the is can thorough Jeremy other weigh got second easy of consuming relationship simple off a a there. by consuming referring leads and very made in our to in and complete, but answer I great only that's his talk I team into want broadband. And ideas subscribing show right other And ahead, the make to and video, by execution deepen months sure and to strategy and questions, to the that your Steve, product But broadband really

Stephen Burke

announcing streaming launch. as details we We're our at more planning on So we're to get hard plans. closer on work the

the to launch service April. is next goal Our

platform into really We that We're the we the have have service financial than very well platform versus very anything we that at XXX innovative other coming foundation. the in believe, working believe has into market people in very worked of way and, attractive NOW Europe different aspects streaming. so We market has a as TV over using on present. get the is ways the to else

to on the the of of because, to us to The is according one volume, all and of being tent X% the was obviously, show our tied pole NBC number And The Netflix. on on Office as NBC. is It's Office see The was we Nielsen, show a Office important DNA programs which, of one platform. about Netflix's that

So to more we'll have talk about.

ideas launch, want get and we very competitive have believe close but plans some about Office don't and really optimistic think streaming we're until reasons, I that are we've share very at for innovative The we those our pleased this got to to to point. right

Brian Roberts

about Studios bit, a made he talk about little Jeremy, and, maybe Chernobyl. wouldn't you Sky the question if the to mind there, strategy

Jeremy Darroch

Sure, Brian.

we're So remember, Europe, buying as market the whole. a a your particularly couple for first in Ben. on of content things, just It's point,

use can over the efficiently, very content service we of streaming So either a DTT service. our

one be much of it's from revenue streaming lower, much, brand, the reasons, as to basis NOW our is cost TV, So well. our lower tends whilst

incremental can we of do we more apply can were Steve of on company. more across efficiently it as effect that basis. an described, that So thinking the the it's course, And -- the technology, with

the of Game of shot Europe. difficult a essentially over one of stories to did well actors. sort European going our is never be develop before. extremely And terms great is seen And that we've Studios, on big It in that because, course, me originated subject, the It's surprise really stories there's European think was a at of lot Sky I of also scale had is focus a Game In but Chernobyl, actually, of to to I particularly Chernobyl of few this Thrones no European us powerful own think, a really, European content. here. both content for and last Thrones opportunity decades.

to Studios. for getting that to European. there's be we'll It the it we very spot drive that programming Sky as different but that acquired of that be will well So the essentially do now into because us use be the around and world, I very, complement will will from think will real vehicle all a are

really with our us. program -- And acquired So own of of programming content fits we'll thesis. some more it originated as with of displace the very course, well our investment of part

Operator

The with of next question Craig from the Moffett comes MoffettNathanson. line

Craig Moffett

Two questions, I if could.

First, as climbed I to any second, -- competitors, are your other I'm margins wondering long-term almost guidance, high think strategically, can of can could -- than want sort if will, two puts just Brian, own you simply know then video hesitant about as and NBC talk you pressure for let give video there to at industry. and go companies some on differences XX% that, mix? but of the video-light strategies being how you go coexist? the the comfortably if to have can are cable those customers Comcast the you in between And think video kind and you real those of NBC, as about just they strategy if you just that

David Watson

Dave. is this Craig,

are These to strategy. this, you're consistent per on I So customer and -- continue with to will consistent in and margin. growth, nothing we to been that margin. main let me gets net regards think EBITDA right, the is relationship the going start fundamentals relationship we've customer very with change long-term focus to give let relationship. guidance. cash focus, margin And I areas, we flow think our But start total on me don't The impact per that that

focusing services, that both and connectivity of all and -- both it impacts margin margin which on are those the So and are businesses, by business accretive. starts residential

part. first the that's So

of the and Second customer business, as experience digital and Mike fundamentals taking part, transactions, are unnecessary so of focus out these the will this quarter, earlier, ton I customer in lot experience, but are the think the unnecessary and around impacting noise improving that the beyond. just experience around continue a mentioned focus the a

sales, terms -- as connectivity the do stay have half the runway product of we political And comp of sales politically in I new introductions the So could of picks a like I margin balance cycles, and focused year, of advertising. lot the second have that impact and/or expect had tough just activity, up. you'll in a mean, bit certain with on little improvement the think there's mobile year the we businesses. you

overall, in couple the a are solid of fundamentals, terms rock I be could approach go But of there'll margin. our that think, things quarter-to-quarter. towards So from

give anything don't fundamentals. the year, really very so this And feel beyond but about good

Brian Roberts

On dynamic our the pretty there -- in changes such we look, is a been -- is We've Steve's or thing, another. why segment this will one we consistent. We pretty other subscriber company. then be cable been building and services. that selling We're streaming think that streaming own some vocal of nets to from see losses. service. We're benefiting will pressure lot on a content Comcast/NBCUniversal

we Parks tremendously. the And quarter. have Cable Broadcast from we results this business, have Broadband that division grew. And -- why seen Our and that's a but business at nets great benefits

-- do. choose over one having and us production to create allow the that's and where more global that's we will world, if all what So to footprint it sell

for leaders we've as really on we that I advantage we've what growth between positioned is We've said see to ideas, our and see time margin But this for about there the great positive to products the that may it's slightly company living have really anticipated. Steve which our And So of part and strategies accordingly. a side. support again. and we ecosystem and have in of shifted seen, division just much the all yielded future. some I on this be And time another, or make it managed different of change that the pretty talking emphasis. years take other as opening, was through it of with the my of many uniqueness think that company we're that and one And the we've

Operator

Your comes America next Jessica from question Merrill Ehrlich of with Reif line the Bank of Lynch.

Jessica Reif Ehrlich

like I face in Steve When Mike an more onslaught onslaught bit ratings, strong upfront also can Parks. this market, coming you own that talk Jeremy. but And advertising a little and of really AVOD the in non-advertising of have kind Steve, questions opportunities Theme a begin talked especially service? when about -- for direct-to-consumer is do streaming you in there supported your sell of then NBCU about threw to services? you've lower

the if give And to to question, Warner expect Jeremy, up on do or And of that, maybe is money seeing the in Or -- color seen you keep U.S. -- just platform? like for see -- up plan part programming? all think that on that. just will your to your So going pullback will it And U.S. do but us secondary some expect how of you focus we're guess, like, in programs there a and you for yes, originals? Ben's I on you much -- programmings the maybe for as do own follow from others? market we've doubling and a on is Disney free

Stephen Burke

So we record a had upfront.

of was upfront. channels company the For we've together the the We're does years, at else selling television and first our all And years, sell robust. been last the advertising business, upfront. in particularly seven more much, been seven anyone last year country. the This we've that the for we pretty leading than

up Our XX%. volume was

variety advertising. digital-native the companies NBC up find that companies, is X%. measure Maybe are a they're maybe of our are the and And is effective. those advertising Peloton very was up ratings. that the the are so exist putting I businesses, saw are impact they now television interesting television that some can from close of to businesses that was our very, on pricing companies, the that on businesses the because XX.X%. pressure those ironically, think things upfront that. we about businesses But interestingly, Internet. category And average most biggest advertising data-oriented, primetime XX%, FAANG of streaming businesses, And basically drove

So billion that from when And good over didn't that's well year $X shape. came is this advertising X digital-native X years advertise ago. or in happens what companies market literally an

advertisers. a have new economy need We you need were to You and good some both. enough then fortunate

sales surpassed digital also have digital billion. on platforms, -- products, our Our ad sales $X ad digital our

selling to opposed all-screen television. So you've to of got linear kind an market the approach as just

healthy very optimistic the very, the that's channels. is So and future reason about of and we're of broadcast the part advertising why cable still market very

Brian Roberts

Jeremy?

Jeremy Darroch

missed -- of sorry if terms sorry. In I Yes, it.

in question for a to typically, develop Sky. we TV of I to remain you And be most companies seems Europe. who a DXC customers. anybody first that the to was mentioned think business the question, it Just going we're your all to land, -- in a the hole, Pay fantastic have partner people else really when mean, ask I themselves where be or the terms they're is wants to on going or

people the relationship us would continue hope be So with many, I help that have, relationship, we to work to historic be to our we'll with able many that them successful. and

However, options as our lots would lots we develop on of -- expect, of business. you we deliver

Sky original the double So our else. in predicated amount anybody investment programming Studio We'll of really we isn't have. on

capacity the to to. quickly that. if we from seeing have We so results want take that further great We're

there just it is And was So own the viewing is what secondary original a it -- than ago. quarter, programs a more year Sky's this market. was double

well. it in We selling to retailers. We're market other are it monetizing either

So And we've in to cable content sell in example, got like content something year-on-year. relationships revenues businesses our customers. our Europe the their with all sales to XX% of are telcos, the terms for up

options see lot just to of think good how So to a we've commercial and I negotiations have pan got us, we'll available out.

Stephen Burke

question, Parks, to part was back looping Jessica. Just which of your

of lot lot the remain Orlando. We We We're rooms. business. We'll obviously, of we're And investing in investing to in in investment we're bullish and things love on state we the a very the of with opportunity well continue business doing. other total our business Parks be Florida. continue Beijing. of NBCUniversal's now about X/X animated think movie very parks. to think And and flow. there's domestic our more down it's hotel it operating that built fits We talking cash about a in And

Operator

Your next Goldman Feldman of Brett is Sachs. question line the from with

Brett Feldman

to like As becomes driven, connectivity margin also profile as continue as well. certainly to the And going your Cable improving likely CapEx is it the alluded improving. to, profile increasingly keep business seems is Mike

greater that that business' been in so probably And to maybe ability you that, be back what to it going has the than that the delever in past, future implies get could natural is is and the on might term it implies recurring leverage than over long just But pre-Sky seen. really, a I capital more that profile a your think basis, excess creating to we've that, quicker. business be bit

allocation. really it's a question capital So about

of leverage where As about how you opportunities return Particularly, talking allocation were to you how profile, versus that do program do a back course opportunity think the priorities growth the about call? pre-Sky capital reinvesting repurchase to your to this balance over get you some go? you the share of in

Michael Cavanagh

Mike. It's Brett. Thanks,

the long generation for of businesses of outlook agree that and Broadband the imply cash business. kind So -- the I connectivity with for Great term. profile profile of the what the totally flow

the And it, in in we'll and way it investing owning so Dave that described. we love keep

terms right priorities, on In is -- one now. number of priority delevering

with back the XX And Sky doing deal. said our agencies, to the within so rating rating line of get months we'd in we've

say far we've track to so progress made, nicely that. And obviously, I that. we're accomplish good would on thus on And

do steadily have back increasing north to a sure But -- of of will back so, returning we getting very we a we'll row Sky, or to balance the we billion of $X.X future, cash we invest in this year which future in did I where On while we dividend, as years the what buybacks, through where talk ample other XX the ourselves our to there. fundamental dividend, would. need to be from prior maintain get we strong in to, but to likely with principle, billion, the making of together that side principles to likely and our the said healthy first is sheet, existing about shareholders say, businesses would $X

Operator

of Hodulik UBS. the is question with next Your from John line

John Hodulik

It basis there's you landscape? your seems global that like up -- Comcast the U.S. going on that, changes, lot at name follow-up there's wireless to going on is list. And as industry. changes a in top Brian, for update or the a for on potentially in the whenever the Maybe could on Great. a us give Okay. telecom of media the sale a view obviously, M&A of on asset an the then

on Given the eventually in you the business, the connectivity wireless assets do the need Cable in U.S.? here focus to increased market in see the own

Brian Roberts

us market focused play it. for and of and by -- with you was we Sky drove Sky very pretty have We're to being began What excited front what make right decision. then and a in appetite being Thanks. our put the in in pushes on

this with there's not point basis. So anything I not that see at have pleased a that on that the we're company doesn't big-scale

just and is quickly number historic our Mike three return number what focus. its about to priority our referred second, as sheet two as the And levels number possible one, to balance to

we're so execute And well, I to did. the quarter, which, year trying half think, this first

operating and point strategic customers. closer got a now been really, It's we're think, wireless, broadband best not suite a I to your great first it's a volume around our customers, value company. to we're for And Xfinity business. million products several years, Team, the the pleased real drag we've focus how really and getting beginning it's economically, where, with that And believe. and question, of to wireless us with to we're in Mobile, scale X.X have offering contributor. I it's the a

we that with always we a suite why would of pretty fits know customers. don't to things but I So it have change, we're we the product satisfied And and products offer great could direction. change

Operator

question is Philip from Your of the line JPMorgan. Cusick with next

Philip Cusick

up if XQ, following what quarter, curious half reason on see economics. think that on tough to out think, Mike and to broadband, seen path the but wouldn't last Dave, How And years second, to the Broadband scale up in there Mike, so you then the you momentum follow-ups. a that. comments about cable think on had year-over-year out with a to Any broadband better two those made years? also be standalone follow comp few broadband pointed you've consistent than your customers? from as guess, about second comment, far on churn I'm wireless, can competition. just you I prior benefit those needed in in few I earlier similar And I the getting was that on through do

David Watson

So it's Dave.

it's specific commercial. -- momentum broadband continue of on things, and to residential certainly, focus is approach give side longer-terms So guidance. to But both most connectivity on our -- the and don't we

gaining -- we're we're doing we're So share. think We're I adding both. --

financial good balance a start -- And we have with in broadband. terms performance of really We it are revenue. does

approach with standalone with very other much to products, we'll packaging a our broadband, that. starts So do with broadband and continue being XX,

record Our -- we churn in broadband. have

good good do, think, We continue to value. job a delivering I

continue of going back everything said is help us earlier to So around I in the to the pipeline product year. half the

we're broadband broadband. to around momentum over QX is this net going at, is in momentum, So and But we another -- and always we like as solid that million to opportunities this our adds really have have we're I looking there. year, X -- back said, school other is

Michael Cavanagh

on exactly Mike. very just it's We strong another Yes, see add year. I'll in broadband, right.

ever. the had couple second thereabouts. Second half in to years when tough or half will last basically the comp we've first a quarter put the --in fact, of best half, you last had first year's But line with it's together,

feel about broadband outlook so of good year And remainder very the I in adds.

to what beginning question, described in were Dave their space broadband. mobile overlapping with wireless reduction in by pleased see quite On with the -- just the we churn caused benefit

with on pleased there. going So quite what's

in adds a basis, very on taking million but look the quarterly quarter, net now, In of we're fact, at in lines opportunity of entire in market. in a you our about X.X portion available to XXX the footprint, wireless of terms this meaningful recent adds terms the it

we the So at. we're scale like

as In the to we track most Dave importantly, terms We the in of single-digits to economics, million the quarter on loss improved exists from the time. pointed of substantially of year. in this have take our the $XX-or-so for penetration to high do last has achieve and we it mid- of But But both broadband business into reasons that. little Brian a It'll to bit on the just momentum neutrality out. economics. like get base we're the need

Operator

Mitchelson of Suisse. Your Doug with next the from Crédit line question comes

Douglas Mitchelson

questions. Two

with for OTT service, do for many Steve, to versus satisfied customer one concept that launching? new as keeps library a on details stands obviously, service. explore want believes like more key activations, not service. The value and of you're embrace that glue out. is view services, Do the that originals for driver of the that the a originals you that exclusive too First, the are new OTT the content of you driver library understanding But Netflix Office, I these you provide do drives a originals while to programming want subscriber the

Stephen Burke

Well, than Netflix. it when of programming. I something all, believe, different our of be And Netflix's expect like is vast Netflix all majority do was very think I first XX% service our acquired. of acquired volume, acquired I programming The is to started, volume. today,

announced we And that libraries originals. that have of expect a actually We own. we're I we vast some of majority the But be are of money A.P. the on spending tied another the beginning have would to currently consumption we -- originals we've And that year are number Bio. doing another in would acquired.

Douglas Mitchelson

basis. but when or you're evenly for more an Cable at on I difficult you it, And pace few that look as it programming to are to lumpy curve, out they're be lower for change Okay, helpful negotiations to Comcast and might spread not where growth? you the Dave, your AT&T's cost they you look does renewals cost bend And expectations want share appreciate cost that whether when the programming the would that. know growth, say, of annual attempting programming years

David Watson

Well, Doug, we haven't guidance, you in know, as -- longer-term programming. give don't we

in -- We as activity activity. said have -- deal less where -- certainly cycle that this year, year, these last we are there's that

programming increases. So we'll lower into be

on-demand having flexibility of we that very we us combine of a different new and applications. think that different ways. we strategic but in DVR we that, said I -- this think, couple So do have as One, best live, approach XX, the environment I are XX. gives

-- giving And get just to so simply unprecedented we're us, with relationships what want. as for options we they them relationships important approach consumers

that very deal for -- a us aggressively be really at But important platform will We'll approach we look continue are it. we future. XX, to and single look we every we will the will engagement. up will data, at offer in So XX

Operator

with Your line Jayant next ISI. question Vijay comes the of from Evercore

Vijay Jayant

There's broadband only is This company's to broadly and/or speeds have be the broadband companies broadband opportunities of build-out and for given there phone just is to you about, Germany, real incumbent a the Comcast with new probably Obviously, with some in partnerships get for connectivity. of the a drive talk network. subscribers that reseller speeds in Can you're potential given U.K. opportunities Jeremy. footprint? faster your partners DNA on faster opportunity

Jeremy Darroch

-- example, customer a Sky only think of faster Look, actually, is of from our taking view, now up speeds. that's the trading business U.K., to our already for point Yes. are About half in already and I customers Fibre.

a think, So consistent in which nothing sort markets the access good of higher-speed I trend of but dramatic We that happening trend, broadband on the can in in back we compete. Europe there's we get to grow.

this to our Our partnering sort with of premises good Fiber a fiber of get-go. that us launch in helpful the Italy, from later year just with actually year, a which the to will next gives next year, start start is be with example of them contract particularly probably being flexibility Open a

our a is position think So good I today one.

delivered see in prerequisite can position business strong number markets. that And then a but grow. all can, will, we to network providers to, we'll And it's to for where will big build in us to I I be those think think with constrain if can open in in closely us. we work residential new build. very more in two we Italy. for we don't it's U.K., the don't You a going the continuing similar It become we've of market. And that, to We'll us the course, success

Operator

from Marci comes with Wolfe the line Research. last of Ryvicker Your question

Marci Ryvicker

the get the clarity message, video strategy. a all we I think still but on we're think little of trying I connectivity understand bit to

to Number investing comments of in are And you Doug's confirm the but following the all answer then would think want be questions yes, far, this. call product? to I the And on of just so you still from sort related that. to one, X video So as if up the you video, still you're cost going leave, increases the you down? have a you to affiliate indifferent this programming to fight fight increases customer, carriage they or because if sense, if the contracts on they the pass you're, keep leave deemphasizing renew to become and in fee question,

David Watson

Dave. Marci,

marketing focus focus. XX. focus video that perspective, but connectivity, -- and is marketing about to talked -- are a the an platform From segments in think a best So the want a to there product is our important that break is we're profitable, ways. in there's element that had also down One, two video you I there's we packaging

approach best-in-class So leveraging get segmentation we'll and the you with to continue XX combination our emphasize towards broadband, so of the X.

chase not end. to we're So going low

just XX, going video lot actually, quarter. our those end. continue quarter, that churn to lower of emphasis second we last segments. You to look relatively after into -- at market on was overall, It's the stable will a But last are year's less

perspective, and product We've in are XX. be will invest we Hulu about a up We're From investing applications. talked next. will adding

gives go in kind Flex. Flex that as opportunity integrates, the the come that is we're is what way, segment terms excited an NBC. another want. applications, solution are more -- of after about to we of year excited a Brian customers talking, mentioned, an we're The on XX at to a And others of extension in more an elegant data. the that streamer about with next lot and There's

for you you you get So content want use can that can the those to your apps. voice,

video. to sense But to where come on on makes we will it more that. So invest continue

Brian Roberts

think It robust pretty don't David. anything just we morning, And add. to add a of discussion would it I a first half I was Thank you. this Well, answer, year. good I think I Okay. had that was have good so the a

Jason Armstrong

everyone, Okay. We'll there. Thank end joining morning. the for us call you, this

Operator

A time. on number this XX:XX:XX questions XX:XX is a Eastern Eastern at dial-in conference will starting today. be number will run the will Eastern call standard XXXXXXX. also further through ID The today's XXX-XXX-XXXX, standard Thursday, It available There call is p.m. time at standard the website at time. midnight no have at be p.m. company's conference X of of beginning available time. and the replay recording We August

you teleconference. does conclude This for today's participating. Thank

disconnect. all may You

Comcast (CMCSA) 25 Jul 192019 Q2 Earnings call transcript