CMCSA - Earnings call transcript Q1 2020

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Operator

Ladies and gentlemen, thank you for standing by. Good morning and welcome to the Comcast First Quarter 2020 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 conference over to Senior Vice President, Investor Relations, Ms. Ryvicker. Marci ahead. go Please

Marci Ryvicker

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

Brian Cavanagh, Roberts, Shell are me Joining Mike Darroch. and Dave Jeremy Jeff Watson,

how Given to a on businesses COVID-XX. bit the are time customers than as slightly we call. we possible their all and much more these as prepared color and in update this visibility remarks Brian spend our of you as our well morning’s changed through will Mike usual extraordinary times, provide of on format managing as employees have and

We many will then use the can. time remaining to analyst answer as as question we

to Before Safe risks you Harbor we this and to our remind I which subject you that contains include refer certain begin, disclaimer. may conference uncertainties. Slide I call X statements forward-looking

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

over that, call With Roberts. turn Brian? I the to Brian

Brian Roberts

Marci of everyone. you, our good morning all to front to to go us disease. echo at would impacted this I truly behalf the thousands on our terrible everyone These of out by and the extraordinary hearts has Comcast, And heroes like been on of Thank times. who lines. thanks are

for organization. our being teams customers and today Society and our NBCUniversal a is across for believe our and be of our our Comcast best lot and lifetime company, I I Sky leadership before couldn’t and employees in making challenged our tough, like decisions never of more fair, Cable, proud

to created businesses the immune lives. a strain and dynamic. people exception. uncertainty Every reminded role for unprecedented and amount Comcast and financial few of no globe. of company this our back employees, our important played be business that around are the will in services the different this is truly when tremendous our COVID-XX believe I look we resilience at of is we strength the our and of has time customers’

continued momentum the adds like April as in sales which like must then duress, its television production, we and first We have and film parks years quarter had businesses broadband, shelter net be which substantial in because place. under theme businesses as well have best and in XX will we

this we call, we quarter information give the our a as some sense as during today’s is we will principles we using our for of important are have important discuss On and can the company pandemic forward. most to future. share move provide do thing help guiding first to can run the performance perhaps decisions our and we the you much But business about made

across virus required our quickly in and First, is it gave made instantaneously how how saw It almost China of be perspective our to Italy people? to had globe decisions change urgency us the global us sense then as We this are helped to of as we hear. to us you the get and supporting Europe, immensely ahead in asset, will real has procedures crisis. this important and most that a and

our protect employees, on The especially needed was we frontlines. thing do the first to

we’ve So, been remotely call and Sky working to for Comcast Comcast our and and center thousands our weeks. a vital keep Most our safe. and employees at ability our to news, we the work-from-home a of those connectivity, matter customers representatives that network NBCUniversal At taken environment. to them of safety working of to managing same ensuring in precautions moved and many customers Cable, has of have time, across tens shift thousands in maintain impressive days Sky successfully

sure and before. serving customers center ever call their from XX% over not I’m fact, employees achieved In U.S. that’s now homes, of been our are

the of doing XX the since feat. days for crisis, now been week have second about an this We extraordinary

during when need. instrumental are use increase xFi been Usage customer of seeing have XX XXX%. app our clear of has satisfaction investment we up of point time digital in I and XX% crisis, multiyear they a activate prepared Our our service. our work digital and of up is digital is this tools to for the our and us their teams. It’s our Xfinity of be digital in also Assistant that Internet Use this AI AI-powered prouder cannot tools

support to For differentiated our impacted, employees ourselves who closed or by because in been bridge severely committing moment. operations million this we’ve are direct work not to able help $XXX have

shown Our engaged during we most to in them employees what want this the do and support crisis. they the us among have can to are country, that we

or at principle In and starts Internet. the to our is Our facing pay. need going customers face the not our informed, all agreed they when voice second failure quickly to for economic to hardship. a customers Keep to FCC’s us Committing stay serve Connected we and Pledge Americans service Internet COVID-XX, with for that of ensure and in Xfinity innovate to guiding touch, services are further time This we continue disconnecting engaged customers to continue most.

working to Through months customers they entertained that giving during free are unlimited and data Americans increasing customers permanently service. Internet have hotspots extra services need two the also our ensure difficult world-class low all the keep this, cost new offering and Xfinity to informed of productive, our of our WiFi charge and is internet overtime all network providing this We capacity the essentials and public access company service, speed time. of free Essentials by for opening no

of from happening Tour, content Fast red homes. X down, along XX prominently we News, in Minions movies, Italy, us of look pull our of one in’ incredible Inside coronavirus to remote. home, what’s at customers’ theaters we hit Flex several our we zone, swiftly just XX. At virus-related year documentary, can Trolls example as boxes, both and investigative on working your to regions redated in bringing hardest strong give and taped U.S., World Sky and with and voice XX/X the production In next by an you quickly of And informed. to into saying a hospitals up an It’s other viewers is which theatrical seamlessly including the to responded the keep slate Coronavirus: NBCUniversal shut riveting inside countries. moved to the Sky’s featured

may a While Xfinity plan, this to our there streaming better time customers. for have certainly free wasn’t been launch Peacock, not our ad supported product,

is monthly only And track spent X nationally I still internal on to time weeks, been users it’s we’re Now our in Peacock but you can tell viewing. what on ahead forecast already and of launch pacing active July. in we’re

we using nor an shape not we we don’t step this of to the balanced to through will do global are recovery moment through are navigate we and back efforts the Moving know stronger know successfully looking to worst economic crisis, thinking are emerge costs. our while even still. be our future, when the Company-wide, with organizational at third the and simultaneously sitting to our about principle, we how structure but

To grateful Financial that to of who Chief Officer, the the partner Cavanagh, JPMorgan end, entire I teams endure stronger financial am virtually where CFO. successfully practices, worst global real-time my meet best their leadership Mike calls crisis we Mike have as ‘XX/XX I across helped than lead collectively making organization. frequently, ever as sharing the emerged our and decisions and with our in and

we not of leaders quickly our across changed pace strategy can as emerge our each are so and Our has businesses. that but industry reprioritized tactics being

strong in the by balance market, We sit of our us liquidity, have sheet enhanced also over accessing with and better even currently $XX already position. debt billion we putting an

you the of issues this on this point, some important to on many of At I specific touch want to call.

is First broadband.

most Our operating stress-tested days. well on with we tests network is diagnostic incredibly speed and XXX,XXX

our know, cable XX% of primarily consolidated connectivity by EBITDA, our our you comprises As driven roughly business businesses.

broadband. to with we in newly had kits, drop-and-go our have people’s to access customers strategy have as While continue we success connect we tremendous we which our are limited and easy shelter especially with implemented self-install homes for place,

data In XX fact, additions quarter in had free and any first customers our we that’s year-over-year. high-speed XX% XXX,XXX, excluding of Internet best up Essentials years net

have us home. enough allow a done work in job network learn many and at a maintaining and wonderful Our of to creating flexible to so engineers

shift interested, seen read can in to and performance traffic. some well. network our an stats. use about amazing exceedingly more in to XX% website network corporate have a our Yet, with you to unprecedented perform our go And are We you network continues upstream increase if

it ago. The and as fact, had years just what fathom planned. every we in to continue investments single tough off will anywhere and we invest is have the In we would been network world, in five in virus struck happened our paying to year making better this and have if network always our than almost innovate are products broadband

I want to theme on parks. touch Second,

detail. losses, parks remain closed, theme in our Mike today, of which will substantial As operating resulting

is and Japan our from believe But open and I extremely no They love our enjoy we likely delayed Nintendo gate doubt also barriers pent-up They in these businesses. few fourth historically for We do, have Super is construction XX when months We original and World Orlando, are parks have resilient the one high entry. theme a profitable, of expectation. will the growing reopen, there our of they that last fastest past been to benefit will demand. years. strong to

we in while And is reopen, costs appropriate safe I that the infrastructure the way right so technology have to be heartened we am our what China, steps laser-focused protocols, Beijing. when are building to we consumers. are while in near-term seeing when on team parks control magnificent park in that a feel taking the know do place Our putting we where that don’t talented been by in parks and and U.S., remaining will

the we China As of in occurred right Chinese the around case all know, New first COVID Year.

construction of went that holiday, that we a into Going number as bore. result going zero. workers to virus, soon But had full the XX,XXX

protocols at a XX-year more with veteran, started. of reports this over arc on time head in part different, in Mike of he place. we maybe in XX,XXX safe that Hightower, I a construction expect living many even on our parks was pleased we who amazingly the open virus group shows with is working XXXX. be announce workers today, I’m to And a crisis. As it perhaps construction now have Beijing the we and of of back site, to budget than but Beijing. recently before environment have the spoke

they across do, timing impacts what on excitement back, before, We with and financial are My have which do and there’s creating so the be world fans. bound come is resonate stories even not postponed or significant best. globe, may these will regardless to when enthusiasm sports teams and been results topic Bringing that believe to absolutely much whether than third as more the sports, to forecasts. sports stadiums our filled which is

already are postponement pausing be customers their event, many practicing, business games we sports has been that as resume in sports I many as European with optimistic Given of teams reason they early material so play many the how subscriptions. as back the to programming Europe, works have and hoped have a May.

work parts even are company, is ever is Perhaps positioned Great of our consumption products with across this our overall us to while of be us evolving. than conversations Fourth, given content and Peacock disruptive as how innovation we as the rest constructively light find to back. such has well world the video Sky. our reminds content how valuable bright shined and Flex technology much diversification broadband, of solutions change such more just partners bring the to and the it to crisis our a this we disrupts. playbook together world-class sports will uses in in and on while streaming And allows NBCUniversal have is strength

be healthy strong to prepared throughout that Ralph’s both for In best-in-class best this of creating for a vibrant, good all complementary times are very balance company us I years bad, portfolio while to long-term means who, and need optimistic sense my the a like and views in II, of about anything. deep And most sheet, built I’ve XX and lived having DNA a to the relevant ago, at in assets, belief my requires and be known, the an worst together particularly and Ralph, him talent man moment’s instilled at think times. the for to of work scale this in attract the care able some father, team really matters, of value and truly pivot global all Great Pulling and leadership was a Ralph always which to that World he take through events people entrepreneurial, same your Depression Comcast, notice. difficult ever the time, shareholders. of War good

to continue are our path really find a operate We we hard day. safe while working to customers serve and back every

now take Mike? you circumstances, under Mike financial I first through results, our will were feel quite these quarter which strong.

Mike Cavanagh

having on you these sentiments Brian’s everyone. terrible well difficult to COVID-XX impact echo times. Thanks, I and of Brian I wish society, and first good all on want very morning in is the sincerely

the results impacted in review the I’ll us our only effects quarter. of COVID-XX of XXXX quarter toward which the first Now end

to on but where As are try that current rapidly be as to I for offer said environment, a commentary. the I it questions do please the at informative and in result, get as you best will commentary circumstances will possible understand in have conditions some possible caveated That making but offer changing this highly our anything businesses, impossible to know my I many us.

Beginning decreased on results, per cash EBITDA to Adjusted to X the $X.X to quarter with Slide share our X.X% decreased flow adjusted in earnings X.X% billion. generated revenue billion consolidated Free was $X.X $X.XX. and decreased billion. X.X% $XX.X

results in which were generally offset NBCUniversal more and by than cable, quarter Sky. First strong financials reflected

begin Cable the segment consolidated on results the Communications level, let’s with and unpack I Now at will X. Slide business

year-over-year cable X.X% We billion. additions less XX% to revenue to $XX.X quarter customers additions increase and quarter, continue in increased generated customer $X.X first customers customer XX% growth quarterly excluding Internet increased customer increase additions receive strength the net The increased billion and XXX,XXX ARPU additions driven and XXX,XXX billion, free X.X%. net residential business getting X% in following with reflect high-margin the the For who of XX had churn we XXX,XXX customer EBITDA EBITDA a $X.X driven the years Essentials billion. revenue relationship have the connectivity Internet revenue High-speed services by $X Together, business and broadband increased and businesses. best net year-over-year a Business by strong revenue to XX% to Internet high-risk record. quarterly X.X% services grew capital $X on these and high-speed quarter, record relationship and to billion, adds our X.X% net generated and lowest on to nonpayment. per increased marks X.X%. best services first

$X.X million. to at driven the growth very us quarter. video, of the subscriber in Advertising by totaled flat our revenue significant $XXX in quarter increase both loss the was X.X video Turning billion ARPU video was year with contributor losses the and million million, by XX% which quarter adjustment offset revenue total at was subscriber to in bringing at additional ARPU revenue increased Wireless X.X% believe We rate healthy the XXX,XXX. to lines. to XXX,XXX of the beginning lines a $XXX residential the flat

political, advertising core Excluding down X.X%. was

first COVID-XX quarter increased increased primarily employee an in COVID increase including the Communications $XXX increased expenses driven in Cable in reserve expenses, expense, quarter, non-programming to due debt by bad about to XX. Turning customer-facing increases X.X% expenses, X.X% which part the to which XX% to and due million pay

partly support reached quarter, extensions by increase EBITDA in offset down in infrastructure. margins the Cable X.X%, basis were decreased scalable Declines points and points Cable Communications line XX.X%, across improvement. of X.X% For capital, XX year-over-year. expenditures the CapEx reflecting CPE, X.X%, by resulting capital grew X.X% of and quarter intensity in year-over-year basis XXX an

the Residential net we earlier on the Cable quarter caveat in So are Communications experiencing adds to on of data now in reminder currently high-speed a with the second what will are June changing rapidly start which a I environment. The off extended XX. to proactive residential April. modestly COVID-XX, is Pledge, expected growth we our data Americans solid Keep rate revenue our to due high-speed Connected specifically to recently ease response in to touch off

a growth some moderate business second effect the as important while more customers base low from pressures service data remain others We remote requesting to affecting to lockdowns expect economic their higher-tiered often COVID-XX see levels customer which all net high-speed service fashion, business for to having are service services makes revenue resulting the them. paused quarter, the of in with during year-over-year they single-digit our open, Internet

the were video earlier a as so we the don’t our net and second similar increase the net see begin period as which year. On XXX,XXX that losses side, losses quarter our the year-over-year beginning-of-year changing and losses began during rate the the of preferences advertising at as higher I still video of end stress. quarter, cable video quarter, and see economic in reflection changing to first first mentioned a down same in trends significantly be were we than XXX,XXX, we could advertising number expect last increase We likely customer in our quarter. the impact quarter, well to net second COVID-XX second the of consumer

our anticipated a continue to half outlook of result renewals. and programming expect Turning for for second as margins, expenses increases in of we programming the costs, XXXX to

We programming continue and with overall discipline, viewership and to and sports other programming approach return, expect a we engagement. eventually high renewals to driving of level

we a more elevated time operating expect expenses, costs, levels for frontline for be in XX bear of ongoing of expense declines expenses expected employees; discipline. continue cable COVID-related cost slowdown our of aspects by all expansion. non-programming together, are expense. specifically Taking to we basis outlook to points For full of to offset debt up year bad our than both wage related Such to increases period margin EBITDA meet of our to this activity margin year-over-year original and to in expect some business and

expect CPE, driven and in approximately line of our by in year also for an declines intensity XX We extensions points support to network outlook meet investment year-over-year CapEx increase capital. improvement, offset by full basis

billion reflecting a turn directly closures to as at flat of EBITDA results was expected, $X.X as billion. was X. to down which was comparison, park $X.X theater theme billion Now Slide revenue NBCUniversal’s from was $X.X X.X% film to I’ll and Networks well resulting Revenue down COVID-XX. XX.X% impact challenging on and and X% declined the EBITDA to Cable billion, $X.X

SVOD by renewals, programming lack XX% the businesses, resulting a revenue up X.X%. our due healthy to digital from expected from revenue in strong, and of accelerated declined X.X%, While other Advertising combined of was the with certain to subscriber losses. contribution distribution declined content addition licensing deliverables revenue timing

impacted as Turning to change an content to the strong related broadcast XX% together, strong licensing of to was at how revenue networks retrans resulting end businesses sports while amortized. of to quarter industry well quarter as up as accounting growth benefit a the both the content in first the revenue television result was and first $XXX $X.X billion driven due of is advertising this of broadcast, by were postponement results and cable X.X% Advertising revenue up million the to Taking was the flat. COVID-XX. from EBITDA at

materially quarter due advertising shape from as continued the well it Looking COVID-XX revenue the of recovery sports to will the ahead, first from we of weaken as anticipate as the postponement reopens shutdowns. economic

Somewhat offsetting we given the period games advertising be declines the sports during quarter will amortize lower amortization the those in rights which in rights second air.

Summer have to moved you in announced, already Games been As we this we loss XXXX the and Olympic for no expect that remind delay. financial XXXX,

we losses, As a Olympics accelerated timing, full in distribution revenue to result percentages this change subscriber expect segment the in now to low decline year. of Cable addition Network the single-digit in for

a in revenue Train to billion, proactively challenging to declined theatrical closings. moved EBITDA to comparisons by response to declined we and service. $X.X Dragon to How the $XXX Film The on-demand shutdowns, XX% In Your XX.X% to partly due exhibitor million and immediately aggravated Grinch, these video further to our first by by premium films quarter and

a determine very we’re the film on with approach our of distribution and While PVOD are we title-by-title basis. particular will unique the circumstances pleased success, future each

the and as anticipate as as result most to quarters second film anticipated of next of we well forward, our particularly feature Fast substantially, XXXX. Minions third two the installment and EBITDA a two, moving decline revenue in Furious highly and Looking films, to

closures, Resort Studios Orlando our quarter At declined point, Japan closures we Universal February to of XX on Hollywood their would not loss in aggravated expect part and reopen. the you the an which the the the parks EBITDA second do COVID-XX, softness Studios million Universal and impact to to were we closed of they remain park will $XX the in March are quarter to know of in at subsequently EBITDA entirety theme maximizing continues by when closed, of on this help understand parks To XX, incur million $XXX a on balancing to March develop. declined all XX, all roughly COVID-XX. is million discipline the effort part prior business, in a long-term and XX% result with near-term parks to of Japan to of the The financial quarter. was parks of Universal on lingering direct this dynamic is revenue and XX% this Theme as situation value first due $XXX team the parks

very the pause is confident Epic the early business We the we decided Nonetheless, Orlando’s have term. while Universe fourth this gate will or construction healthy of long work challenges which COVID-XX the to Japan, focus we stages while remain generate immediate parks returns to in Beijing, that over schedule for on at stage full on later and open Universal this final Nintendo that open remains of XXXX. expected presents, year; Super to continue force in which World

Now, results let’s Sky X. on move to on Slide

referring As our Sky’s consistent growth I release. be a earnings on reminder, rates constant-currency to reflected with what’s a will basis, in

the legislation in XXXX, the also to weakness, overall due quarter to quarter. was Sky UK declined which as XX% started the gambling Advertising by we to $X.X revenue was related has postponement X.X% lap of primary first Italy, second exacerbated the EBITDA the COVID-XX, direct-to-consumer throughout the sporting million. revenue the impact the to For the decreased billion COVID-XX from advertisements content in This $XXX and results in a half postponement as resulted XX.X% revenue. of to driver events change to XX.X% by which of in continuation third in decline well unfavorable in market and quarter. in impact our many of decline decreased and which our markets, revenue X.X% Sky expect

associated control are us if during risk payments light disconnects Given separately, that been the sports sports-related shutdown revenue sports packages of sold that turning return. attrition, back has stream allow when to fact and Sports which their keeps customer approach presents our our a customer In challenge, in of the complete this Sky unaddressed. the the mitigates pause subscription of unique sports on significant and with revenue risk this time, of customers to of

the the anticipate, do different for out to of across country look although sports complete will of most at markets. sports current year, each reports times Sky major that we their we the coming return seasons, As to different rest based on

terms the in residential, and remainder revenue the third when revenue, results cost decline hence are very sports In sports financial with we well our to roughly the the pause combined expect the played impacting headwinds impact, in XX% commercial of second deferral third to wholesale pressures for third Sky and to amortization due quarters, the combined. quarter of environment, quarters the season year-over-year. revenue as split the it predict significant commentary second market, economic sensitive difficult we quarters on Between the proportion between in two advertising games the and quarters to second the and of the due as play the to rights of each since is is into face of the current EBITDA

significant While the later approach in and confidence is Sports seasons due impact back business when return our their will for that sports year, to unfortunate, snap Sky to us as well. the on of new shutdown the sports gives Sky the retention customer

expect Sky but in Italy, Sky’s their COVID-XX given in agenda, of in which investment execution complete due and Q some still we acceleration cause of launch them delays very the course healthy returns. terms XXXX includes broadband In to will

a million we should its and the of an over business therefore, to long-term us to sports to XX and as a be and, return enable to on Sky in place to Fortunately, shelter to on brands feels firmly believe is so paying return customers the per with Sky impact us schedule Sky $XX trajectory on leading month. end capitalize sports products growth. COVID-XX strong normalized to And its global finite. of

across quarter capital, on cash quarter, well driven total free the $XXX allocation. by up was flow first software NBCU billion businesses, $X.X anticipate to in a anticipate Wrapping in in Free we and of Slide $X.X an last delays capital declines resulting which includes full Sky roughly the declines in sports billion increase flow line million for decreased as in cash our as dividends. intangibles, from all cable. content decline X.X% now at programming, modest offset paid we X in and We CapEx with and with capital to with and year-over-year Consolidated year. the working by year, be production and and

EBITDA ratio have significant NBCU pressure of leverage at the businesses our affected until and We to returned Sky expect on ramped the those and back COVID-XX disruption portions from up.

As a share longer in XXXX. result, expect no resume repurchases we to

Finally, to shareholders our allocation maintaining capital strong committed repurchases. sheet, to strong capital and we commitment recurring remain approach for growth investing a returning a of long-standing share return our balance organically dividend eventual balanced an to through to and

very couldn’t that, have with who joined I’ll the So She her team. we have onboard. turn welcome more and Marci to at to to are it back lucky I Comcast a interesting time, it’s that clear

Marci Ryvicker

up for open Q&A, please. let’s call Thanks Mike. the Carmen,

Operator

line Instructions] Your first your go Please Swinburne question. [Operator question with Stanley. from with of come you. Thank Morgan will the Benjamin ahead

Benjamin Swinburne

structural thinking But business is the to controversy the make terms business as lot lines And out invest step so how times, the Curious hear you thoughts World structural into post-COVID what of some in Realizing this about I’m changes morning. second, theatrical then, of from you’re your a your sort of one Thanks, changes are the the could getting on in sort to in come without that to questions. pretty and businesses. just term? across morning. Trolls thank you this Tour, if film opportunities good around for a along company? in you and out experiment, business you or how talk the I’d from temporary. to longer-term address of interested managing on you a Be this the love about changes take opportunities the that there. maybe of your models, seem expect the all and Thanks test these color back of unprecedented Two priorities for you company, of of conclusions speak, of world And are the you sort of longer how curious numbers because the Obviously, stuff you interesting. to your film lot. day-to-day what seeing you new

Brian Roberts

Okay. this is Well, Brian.

colleagues and Let to off some me those pass with to my help of begin questions.

I think phases. this we’re sort priorities the that whole pandemic long-term the in of at looking are company of

how great operating the I your remarks. and service, give said things First phase opening employees, is of you in stay customers my some do protect

the into I office, think is us, question some now, And third is depends phase on bit out. you’re normalcy. into getting you some of back pans a is of a the side." on that all of headed, we’re second we’re lot is your where getting probably maybe to and "other the hoping that how kind what where the really second ahead And going form right phase then form of see

I the Jeff, we the on And revenue a sharpened and opportunities, answer? advantage that think don’t with the where business? taking film maybe talk focus of crack Starting why our can take Why at with priorities structures, disruptions you reexamine then in it’s each innovation businesses. of broadband for start you don’t and have me, whether our about cost Dave. we

Dave Watson

Thanks, Brian.

our work them I’d structural even certainly a of taking start going opportunities handful think home. from center the in broadband-related forward. with But there amazing So of that before team I getting agents think things the did when XX% about that, there work are you and to call

there we going in has that the figure right We’ll or to to be whether quickly know. out But not don’t being a forward. that at benefit effectively. that very and out able structural figure stays level, balance So

lot about, think, And very most and certainly, tools, a as and support, the process the map think going the game be this nice there My and enhanced provide kit, think Brian forward. capability. the map talked Account had I already around with I leave to sustainable. strong capability, think self-install but drop-and-go provided, digital we these SIK a our road that telephonic been xFi, Assistant, I we’ve broadband be during I period, from product the investing going benefits that and uptick We a those have strong are we’ll are chat a capability, road of chat but Xfinity standpoint, will things changers it between

Brian Roberts

I in, of with on you’ve at this you your But lot welcome both in view pop question. forever, us a these it to of tremendous maybe you with unique film obviously, Jeff, specifically, come But been call, circumstances. and life want calls. listened to broader Before, the under

Jeff Shell

Yes.

you I longer echo, hello for couldn’t in honor to I’ve everybody. in out of a just positioned. we been long I a it’s of think, this, we Brian, time be Brian an come will you, this. term, And the better as thank company what just said. So, businesses, and and been and run our lot

this of here So to to and I’m happy happy be part team. be

assume people on central business film I how is to PVOD So and be not to the change question that is the it’s the But which they change. we of decade business, the the our seen. someday consumed business, expect in again element the is going the last realistic question, big the business spent that whether not their to part going of all is and change and movies isn’t a made that are we’re chunk of at like the to Ben, film their home, going no or to majority there’s theatrical flip and of movies, movies side how parts business be to to this being going not, it like

are go, them films, current Do We hard to those going ready theaters open money number choice. to again? you worked we mentioned, streaming. unprecedented invested movies back we’re Fast as in to We that in, We to on the very we time had and a we them that had or had really be when sell Trolls move a with that did Minions. a So of delay think and environment. a a including lot and were we of

bunch of the have other interesting. really consumers It something done and The with We to how offering. complementary offering. kept do us going it The out going going replacement, that it’s part them around. model? of on couldn’t as would I provided the mentioned, some where takes of we something. pleased home, executed. working gave Some and an just consumers some kind how a are be team, product the a needed have preserve long with money theaters, to and expect that of they And a also was question this, In all, running that that. her have and Or competitors to see it’s not new numbers, ability And what more but going And for And Langley And at our nature when expect PVOD we’re PVOD going try are it how to five-year-olds of particularly we be to first come us. our I is way, of is would proud they if we’re to say with good on element, to is you that. desperately be that make something employees. takes seven-year-olds you of. up to couldn’t movies? a we be that be premium would that I came And going I of be that of return the that’s I part be Donna to we to and will

Marci Ryvicker

Carmen, please. Ben. next question Thanks,

Operator

with the Your sorry, moment. the you she like to Reif sure line the with Would Bank of question? queue. I’m Securities. one next Please from to just of Not go happened next the Jessica America question disappeared ahead. from go what queue, is

Marci Ryvicker

please. Yes,

Operator

Mitchelson Suisse. Doug question with be will next Your from Credit

Doug Mitchelson

regional I Investors networks you on to sports questions Thank you air. are when question the sports be sports the have of do first pay so on networks understood. I they think would much. the you a particular sports. networks And pay and have whether in have leagues to on sports, guess not whether lot well have

question approved MVNO terms, And to which a understood. a auctions partner, all, how you extent around company efforts Sprint see and cost based Sprint have decisions viable networks. Olympics are to this the area, then investor with this Comcast? know the make year. increased I’m closing T-Mo is early trying any DISH on I of focus wireless MVNO another and your I there’s up, using To and coming commentary different I C-band have but has on were if you starting subject its relative improve offered. whether for decisions crisis on actually, getting it wondering is customers feels what impacted at Verizon your are from Thank sort this on the MVNO wireless some are to to build on could strategy out, that? important like CBRS very and or crisis obviously sensitive you. these importance has bar is of think internally sports wireless an capital those during also Obviously, So the already national

Brian Roberts

sports, let there’s contracts you depending the synced the complicated. the as even ecosystem more all on Well, On the playoffs, of Doug. same. individual. all which start, versus U.S. one national, nature connection on it part me you’re in very based the or They’re season all said, way not international, a regional, in, or necessarily the obviously And gets to of

all current U.S. the or disrupted. starting what the at focus answers think we’re moment season world, work playing, And think, I be questions trying with future happens said, to in these going are I a of got encouraging each including that ultimately, the The decide our to they’re the So movement over the I of one to just they to is various seeing leagues, if leagues the as our where, some to reside. have

top U.S. mind. does in can so clarification, get than It differently able we And our the We then of if much that works very think customers. to to Europe it I it’s give we are in

the don’t spent have hope about quickly on is happen. of being anything to don’t safely, particularly going but talk main get and focus any that that in I we remarks, the So information wireless? and that’s to effort else I’m that back on But sports Dave, why you hopeful maybe lot more gave an we awful but there’s and that add know our to to

Dave Watson

of sports. to churn we see in major with it through Device, between yes, business. around launches, Even on the this that period, our approach. current Own this wireless, a to the like Doug, in I we impact real little focused be we’ve been but the be Bring On moment, continue there’ll we all wireless of think device covered bit well new trajectory broadband you that retail continue areas on pleased Your

one opportunities, to current relationship, have. the As that we and/or like spectrum our we relationship,

it And in of ways new at to staring be to the regards but going making to over nothing improvements always are time, very report. spectrum, We’re good. to fundamentals

very We opportunistic to will the to third be sense and scale, where feel makes it comfortable we objective if at Overall, our business. with is profitable going. be we’re

Marci Ryvicker

Doug. Thanks,

please. Next question

Operator

Reif with of go Jessica we ahead. And Bank Securities. America have Please

Jessica Reif

Hi.

operator Sorry, I think the disconnected me.

on. back are I NBCU something Sky sports. on and asked. but know sports, there’s And still for was So paying I But apologize question I nothing if this came obviously, on with

current color start elements rollout the great you give in change are on the for come And round? thinking get mean up, direct-to-consumer seem I the I’m a for you like much haven’t have service this three in they said first just seeing? if environment, perfect businesses, you for right-sized you On So targeted you. what be your Thank are in about are a seen you forward. home. why so going how you but on And not affects costs does film, will etcetera? seems just place on you weeks. we many of all the as missed what I maybe us this parks, said theme contracts How position Can And it Peacock, plans? advertising, Do not wondering was next it going return? this, like the environment to businesses sure given everyone’s you for the opportunity. TV, NBCU feel what’s and I’m finally,

Brian Roberts

So the did about bit. let talk back me to sports call. a Jessica, little welcome We

is, approach. think, people have subscription, to Jeremy there Sports but approach. intelligent it, So Sky think aren’t finished. And general, a a are I separate And subscription, to about why familiar comment don’t let Jeremy’s very talk seeing when questions it’s Jeff costs and business different a in we’re me ask is And let the is me which with we that. your ask I which ask that paused since those what take Jeremy then Peacock and on two for

Jeremy Darroch

Yes. Brian. Thanks,

have So as we’ve of Brian customers, stepped We sports sports. and broadly paused sports subscriptions. customers’ into many unbundled said, our

the means level an now. we That, for we’ve minimis. sensible that very de cancellations the sports thought environment of way had manage away essentially sports a course, is season’s was in So of gone that where to in

season resumes. So we us when that customers to think back bring positions well sports the

of firstly, but everybody’s to of interest. do covers That pretty sports rights talking I In how are in which much the get we moment. at negotiations terms we holders, things, with sports is a think range everybody back,

to with environment working can so with create over back rights that the come safe holders, So come talked summer, governments we back. come as about. Mike assumption around sports to sports start can we’re a is The does do what that

on that the start value our that sports mean, value to value, of terms against doesn’t a and because with disciplined in bid way. the I then and renegotiations need the that see, we we approach we is And in future my change principle new contracts,

sports advantages cycle One shorter average think The perhaps of the four years. sold I typically, about the are we’re is be will way cycles. Europe on in that, three,

us give So that opportunity. the does

thinking get, by While we’ll the we the a view different we reset think in of there’s all form due that’s about that take at time and but way, in we’ll required course. that particularly of value to reflect we’re see the some different a we terms and moment, obviously,

Brian Roberts

take Jeff, why Peacock? you don’t

Jeff Shell

Yes.

then go costs. to in. jump take me let me Jessica, Let and Peacock

it’s early, So on Jessica. very Peacock,

out when in weeks and three The weeks with so amount out things on any two, they’re on But said, the go using I’m weeks it platform. right the not person nationally how we so I about best very, is it’s launching early but that of learn get product goals each Comcast we with technically; time so encouraging, people as the even one, results, reticent were roll product. to are couple in, can it very particularly of first a spending our in, conclusions. some make or three We’re twofold: the

and with lot more is originally than are of a so launch news. our We time because much very a on our have but there people they’re deep we didn’t originals great very, have which a we splashy COVID lot that offering. is spending We anticipated, getting product on there had of

pull why marathon, sprint. in earlier? not not launch it So a We’re it up and a

is the ad-supported We not and right to gain trying the July. product service. have we before make value an to subscribers. And we not want sure don’t we in see We’re we’re launch

strategy on and more kind is term. it’s very measured this long we’re and the I it Peacock. right of encouraged on strategy optimistic So our for a think And part, even

is we’re question we’re On environment and sized given the no, probably costs pretty addressing costs about aggressively. headed, answer is on the the that right whether where

to are come business. we’re next trying be of we address as like business that right business just obviously a even lot shift different going company a can of cut significant adjust can We’re and the But in over and see a in in now. base. and businesses And cost certainly, back and of park address kinds of across we’re is out comes business and way on have costs we’re there’s business the our is One theme further though, off think like cost the months, our way, look our has there to than that seeing thoughtful within flex our couple but shut time adjustments we’ll And trying different our there do I we’re structural businesses. where and declines, make pretty to business deeper both to this we our of costs, some our and a we at amount a base elsewhere cost There, we point. have down significant weeks we this spending different we longer our short-term what if then goes our revenue a base. where

product the launch service. we that July. before want right not we sure we’re haven’t to the gain in see ad-supported don’t We’re is trying We not value subscribers. to make we And

is our a So measured of in strategy kind partner. this

it’s encouraged is headed, the on Long On Peacock, very for where addressing term. we’re whether the and right and and think probably it. answer costs we’re is costs, the question rightsized we’re pretty on more strategy that optimistic I environment even given no, about aggressively. the

down business, businesses going thoughtful amount businesses. longer our of couple significant declines. are right revenue like see this at shut to though, some business, we have than obviously flex and we’re back elsewhere a be Theme of within of goes structural one and point. can has and address businesses, now There, to and we then come cut trying and there’s the park where where kinds the have costs, even further in and seeing we different to short-term but costs business if our up, just There both We’re a our we’re our deeper

cost And is think company, way our look out a of I different comes we this shift what do can in like and we way a we’re a address different trying to that in a our base our that adjustments business. time lot make we’ll next months, business across cost certainly, as adjust pretty and we’re of but there significant the spending cost base. our weeks on our over we base,

Marci Ryvicker

will take next Thanks, Jessica. Carmen question. we the

Operator

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

Craig Moffett

an on One, services side about share seeing distribution I think of been occupancy the be more that the if are are you the to of what Is on the feeling. reopen the to think, in strategy, shifts in same lot of to likely experiencing brand. grow you the Hi, just to perhaps parks, that you just to transition that a continued? that is to are one I you. questions, your business crisis? with business, build accelerate attendance could can give can profitable? And for be that sort small/medium of given of the in question strength will, order you and we has breakeven a we simpler that those business part the of to to cable thank the try if try given have Two exposure technical segment? what they’re here And the when to respect the to I the traditional in Europe there always for in idea lifeboat, the in how And Have of may. And rate business? way theme business would if then be now squeeze offset just actually, us enough lockdowns that particular you or Sky segment should platform pressure you if OTT that businesses business, that

Brian Roberts

parts of Okay. That company. has all touched the on

want, if business and we Dave, services, you don’t take Jeremy. and start go or over to And the parks we’ll with you maybe, question, on then SMB you, why Mike, So Jeff?

Dave Watson

Brian. is it, no accounts, are as have paused been is so is of their a you Got Mike what this In an uptick, that there issue. right an we increase increase. SMB number of noted declining. where rate the earlier, now Craig, we has where businesses experiencing is primarily, question, an there mentioned But

that, that. overall, referenced, we’re or And a penetration. it’s very the to so around as not stay focused There in go will impact XX% huge still we we’re But so you sure you but to some challenger number counter, clients our with it’s with on take working as into QX. SMB, be for

So upside. there and very there’s SMB of the penetration still good, fundamentals are

We’re during And of amount it. still business connect going go to period. are getting we after even a this fair

And other getting folks. are to our So We’ve some and we’re doing People redeploy it. communities had were now that demand responses. in team’s on working out driving in effective ways. it’s

So we’ll stay on that.

over But the it diversified business. turn since I most plus before enterprise business materially have last with off still of SMB, over that part decade is, point and launching, our I last the we midsized definitely now. primary started think to we

of the right us So the are these future. will penetration most important really where upside be now, That’s segments for in is.

this through Stemper, moment, We are clients. getting them, to a want Bill to have with work operations a team, proud we on with multiple a certainly partner handle So business it. really this We’ll of our business moved for but local small scenarios. the services planning lot at that of be our dime them great

there am that coming happens. for so when optimistic I and we’ll And them be out of it,

Jeremy Darroch

me to Thanks. Sky complement form of to mix. frustrating as it to bigger start year, a Craig. back that at it very our strength bow, Jeremy into going streaming because services is on a hard OTT, we’ll all the our of The push do of going as It well But us, of we really the been here will had the take answer another jumping this yes, step in. our for But part year, was main crisis. if which you like. services. you reminds of platform. well. priority Q, of can string It’s our things the of But a the in as one slightly our had know, slightly

to to Q customers Sky good these all Italy. over with already of providing in environment. alternatives this directly We’re provide get in and fiber ways And us different

Mike Cavanagh

anyway. Seasonally operating something most seasonal And through full Mike your on of well for of short the It’s are, which year, the Craig. lastly, it’s below question, year, the typical. levels, well parks capacity we’re typical at part

of ramp lower guess so other priority on typical, another change lower breaking and closed. then long-term in return certainly for But just we because versus in quarter, of million be than be shape sort to safe, pretty flex longer, have get think And typical, low staying and we’re our closed. the levels I I the the parks and so to below rate at be make Jeff second parks be closed we’ll going to better do parks for are will XX% on attendance, that if going the side as is But the when gave were more would and attendance open of even for that the capacity we’re push well not quarter ability loss and And as up, end average. to closed said, if point we the things be we to full that, which I versus at attendance. would $XXX number they’re there’s if if are to of

Marci Ryvicker

Craig. Thanks,

Next please. question

Operator

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

Philip Cusick

differences the I the the some guys. to Thanks. and of of puts to of this take And still advantage come and next door I buying or know the last? from at cash consider cash versus can Thanks. levels timing keeping de-levering but if your market Number of one, buying is understand you disruption priority? distressed between going at especially year is assets is NBC. taking top through there lot takes flow you Hey think low out then Comcast here amortization, would things to pride second, in stock opportunities. leverage year, not a

Mike Cavanagh

It’s I’ll Mike, take So that. Phil.

where we’ve in just in host said, that businesses. of full businesses all Epic with of Universe. down XXXX of which the expect be, some be on paused our in for slowed sort So reasons, X%, across like would we of modestly year spend, And down, be some natural XXXX the across first for to will takes puts got down getting versus things the things getting terms as the declines all naturally we’re X.X% I I and total cash, quarter think capital

event, total the to etcetera. an tell any until of the back see And the in quarter and that the working it. in unpredictability we’d cable flat payroll extra We’ll in business we’ll in We increases for as now. the be on toughest said, lots sitting this the we’re quarter period. XXXX, the capital, is company, And really do in that expect paid we’re political first here got roughly that’s ads fourth that it’s best that commentary modestly year. I until So don’t down capital get full there on can volatility the But year. to then one my was for of predict,

payment offsets then slowdown little by slowdown and and on working will businesses sports. a of and in why So that film consumer just in expected one. cable, a the declines and production caused of at year-over-year NBCU TV impact which little typically that is caveat capital bit But bit Sky, in be in is up and I’d

be those could to it’s on numbers over ratio with the the rating then the we conversations takes. agency. But As important to to continues top leverage of various etc., a are the That get puts us commitments gave to the with Olympics, And the course we that those like leverage sports-related we back and year. partners especially priority. continue change ratio,

in from we’re I of COVID that on particularly be delayed the getting to EBITDA comes parks. because going related there think to pressure obviously

we So businesses, things inorganic time it said, will pretty to a lots take sort opportunity of existing bar never opportunities for would back Brian of wouldn’t And at be focus we’ve the priority be got be say I ramp high. and look And our that two. but those will up. are our think would that taking as I number in

Brian Roberts

the would to I the parks only are sports about add last timetable, definitely position. is Again, wonderful part, businesses focus that got. we we’re just feel get we I Yes. think reopen know that our We back. as going we’ve a in going and know is to

those I a And think that’s relationships. and are people homes, business. And safe. and I relationships home develop spending in the pretty at great return change hit. being more of pretty deepen majority products their watching company a people’s broadband time are not homes going these and temporary So I opportunity And sports, that’s quickly and in quickly. being to look to And and think, the to who a is that’s great to new then going

think would looked like talked with like We as on as our going be to a our hand, we are it, don’t positions focused we company. improving we’ve anybody. team, We at as and trade So we I here from

Marci Ryvicker

Thanks, last we for question. Phil. have And one time

Operator

the ahead. will with line of The Hodulik John question go Please UBS. from last come

John Hodulik

Okay, great.

penetration seeing the And were what I wiring about high-speed America gains environment? the the it on Or customers, you little you numbers without is wireless-only think for whether year gains given and now secular related some the given and great trends connectivity? are a to think could bit strength of then in connect data of revenue obviously, more on But the talk play work-from-home for sub guys are outbreak side you there given about seeing strength comments the up in expect some high-speed how can guidance of follow-through some need share ease out you latest previously up Can subs. of talk to or and free you’re the see even sort those guidance self-installation? the guys data, terms the of on Following the and gave the side. you sort demand some you course the trends video the on through you sort of sub

Brian Roberts

shift that been his very really both and can various we’ve over in help think emphasis focus Dave COVID, it’s saw think xFi consumer And was have think terrific. the I side, this control are the and I the this Dave, whether We our really we’ve of brand we start. for of was really, before coming all and itself. our a we I’ll broadband, things customers’ had So on perception. But network. pleased, I put stands happening investing marketing a from has side a a superior coverage, and service on product, innovating speed, in team, behaviors. we’re and seen I there in that. think, you it, momentum and product We’ve and think And lot been

country the looks that slope the huge shifts think could to that in at of so regard put the wouldn’t this terms You have temper recovery. team’s. we of the then to level? there’s why some face and a as in don’t I be and know in And outlook we that But just continued focus, of better having what and economic the than be focus don’t Dave in economic

more don’t So little Dave, that? about why you a talk

Dave Watson

our with we’re the be broadband this investing, as mission with our content and really the forward. speed, it, top that so great is, control comes has great Brian streaming road been John, to now Brian. of all continues and really to and coverage has that and our addition on all hits Thanks, hit And been redefine it. top have product a Brian what said, map Flex of we priority, It’s priority going it.

So reliable can as the and the moment, coverage network uptick the in moment, data this stand important home, going as it’s to going this this network that all consistently can that be in invested with consumption built the up have well handle to forward. and we robust, devices WiFi in

the improve and broadband-only still, comes the comes the service, with And service. for focused continue Peacock video High it’s engagement included not Flex. this is segment. with levels content, Peacock to great addition a with already. Jeff And of broadband comes mentioned So This that our to Flex going I broadband and our we’re of introducing mentioned to in we’re broadband. with standing value but

right continue now this broadbands opportunity. a activity business there better That’s share main So proven that’s that we’ll and move but DSL. take just have new from are primary continue still big but There’s from folks, sources out we share nevers, need compete to never right your and even environment, lower some to. people of point, and product of suppressing we have we you the even that’s out share of there. in it a And to now, activity, for competitors. the source of many lot There some is a John, broadband

you staying And You xFi it. had think I we’re them mentioned about think what are experience they need with mobile-only. I is, once broadband. People optimistic finding

churn, that go So record forward. right now attract for we with can along think historic broadband I we’re proving as business we new

the we that QX, have, good momentum reserve that connects proven there’s QX are we appropriate It’s maintain material that that There’s Internet to very number. but think took through we not things the we’ve as took going took feel and at is XXX,XXX have it. that we can Essentials But debt how look bad that drive that in mentioned, churn. I going in start. projections. It’s Mike quarter. So and out we’ll for the we the we a to think fundamentals impossible say play out we out April, And no in you we forward, solid

of about the the So we momentum go I’m optimistic rest into as our year.

John Hodulik

guys. Thanks Great.

Marci Ryvicker

John. Thanks,

quarter So please you safe. joining this that us for all Thank call. concludes first morning, stay earnings our XXXX and

Brian Roberts

Thanks, everybody.

Operator

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

may You now disconnect.

Comcast (CMCSA) 30 Apr 202020 Q1 Earnings call transcript