CMCSA - Earnings call transcript Q4 2020

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Operator

Good morning, ladies and gentlemen, and welcome to Comcast Fourth Quarter and Full Year 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 call over to Senior Vice President, Investor Relations, Ms. Marci Ryvicker. Ryvicker. Miss ahead, go Please

Marci Ryvicker

Thank you, everyone. and welcome operator

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

our to this Let may conference refer contains include slide certain and uncertainties. Disclaimer, forward-looking X, to now Harbor remind subject risks call and me which statements, you Safe you that

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

Brian Roberts

fourth a look to about this Thanks Marci and of good glimpse once of morning on our results giving we forward quarter everyone. and you pandemic. we’re of Really focused what out excited come and proud

performance and in the EBITDA that by decade. recent results of any Cable year most flow highlighted are best a grew These quarter fourth cash XX%. net of which was the Our XX% over and over by by

with also being We news on even share Park closed. which good reached Beijing, excluding to segment breakeven our have Hollywood

to just of past quarter. dedicated now Clearly, Peacock XX coordination Our streaming tough by to employees. this execution and and levels and return made the premium testament the pre-COVID decisions leadership drives ad-supported team our service revenue our its And customer has million six sign-ups encouragingly has by launch. within excellent months nationwide base strong our essentially company

and and net strengthening service of But unparalleled growth balance short for investment grade invest hitting drove rose a This of company and ever, record were the challenging the ensuring nothing and number our year and relationships. broadband they one generated just was year's with penetration only than for results customers continuing innovative of long-term our there us additions to year, growth. records. success. internet million the remains with XXX,XXX to Looking Cable High to X.X uncertain the XX periods of reaching most can on sheet ever relationship year, of highest that more occasion, relied for We back products providing us net of speed over bringing million, churn. opportunity quarter, XXXX customer whole employees, protection the the for that our full exceptional, Yet and our we customer XX% total any low of X footprint, remember. additions of plenty future million safety fourth

towards way to well remotely work we of operate our moved Flex for payment the for and growth our also of cash Broadband all we This has while to the and continued and increasing proactively managing delivered of for free. we home, reliable which network, customers. has enhance we're And XXXX. and our cornerstone flow display. speeds, gone many rethink all our care XX% what been growth internet from we've We EBITDA the households, market outstanding by program that broadband plans offering on essentials our is full robust, us keeping and made flexible customers service years low-income We've protected, have pandemic Immediately, powered forced our nearly leaning network. do, connected, of and X% struggling leading most, informed to permanently. competitive people position, reps providing this investments Peacock of so entertained model embracing of by expanding

adoption such further we self-help our Assistant, Xfinity addition, digital In as promoted which XXxX. are of tools available

this connecting way. of thirds to services our now expanded And also our our self-installation eligibility. are We two over customers

while delivering take our all have to costs which we the experience awareness, better our enables We enhance to to communications offer, a are business, marketing for us working with and hard out customers. efforts of

in X.X by calls relationships. adding rolls all over fact, million, XX more XX while months, and by the truck customer handled net In million, new agent reduced than we've past X.X million

extremely the the costs overall even Our they is investments only But more have they to efforts so great Flex, exciting free, grow offered seamlessly to are all making successful. of been we're business. is connect for services what's example streaming to customers can our to love. broadband reduce which The that the

fourth a streaming win Xfinity Cable quarter fully in the apps nice in with strong resulting of really just a roadmap. additions, HBO our be we mobile with and our Mobile core operations from half customer sequential Flex Disney significant the into we XX, as came sales major have channels. adding number and States. a continue us carrying to We of improvement our integrate the the changes first us along We're this year, near will enable our of recently profitably. we've with and that Flex future MVNO really added will to agreement excited Max, off customers and Verizon in many of offerings just acquire Within we'll XXXX more of more for be all for United Plus expanded range has improve have hopes. on we parts more reprioritized been top as high

more model is faster even came said ahead. years and one right opportunity us MVNO we the back the capital-light from expected. beginning, the As led we an strategic in services for than Business has wireless

had began. net All-in-all, look highest customers added XXXX than forward XX% beyond. an the XXXX quarter, of seen in a we and $XX and commercial approximately total a pandemic billion the new share we've This to generated market saw strong fantastic growth of we revenue XX,XXX With X.X%, very our less footprint, addressable and runway. since we Cable of plenty

premium of to reorganization drive are year position the we carriage of had the a with exceeding opportunities. both and League, a the our Momentum putting meant significant sets of is structure long-term we which naturally Film, which watching an service, mega took an as Modern week, Family targets. addition Broadcast began NFL Card and and now to exceptional own moment Networks as revenue earlier Not hit premium and by the notable of the decision Peacock March. movies from having combined Wild on as NBCUniversal, us breath finished businesses, coming in of efficiencies sporting other, month, success. enter of in more agreements of accelerated Cable has were of offers incremental impact ad content appeals of in Peacock number renewed consumer this demand us. AVOD on our XXXX. And game. the the we close but X. example, Peacock and streaming right value, via we with and with theaters on up changes free. this and and is any an be Peacock cost followed most has move our unbeatable strength, While studios, of Office the it this for every hybrid unlike a release direct-to-consumer a other has start, users, light make Television us to events programs Yellowstone, a of will In along profitable are internal Office, Universal all global number the to valuable advantage a video viewers management partners, at next our has driving WWE many to We which for only forced like which a operations and has to Saved that and platform pandemic exclusively our further distribution Rec, on even Premier load Parks Golf had our latest be is these finding and The other This proven Bell, about such demographic, to for much in announced titles the that by when January just original

to parks, pleased able and X limited and franchise While of the direct such forward when into can the Orlando our we we to enjoy release closed at while capacity World, the running how distribution But staff quickly were successful most lean either COVID Minions which or safety will our theme Osaka of of look what the and hybrid guests. theatrical impact has we with reopen I'm Fast and a for were ensuring bulk the XXXX. on films had as Jurassic become we model. many next

provide We amazing continue an entertainment experience. to

responding back Orlando, a essentially gives near-term the in our recent which about cases, steadily most market, by can results. in parks our the pre-COVID customers attendance quarter, optimistic the fourth confirmed flat a We with strong setbacks conviction we We added of experience be even fourth but was COVID bringing had business. experience reach very some guests long-term financial may Sky up as and more essentially especially of what increased this us new most pick in for this trajectory will Our What I'm revenue, sustainable quarter. encouraging in every recovery. The our in levels. generated fourth are we customer said from when and quarter we recent our theme special base that net XXXX. as saw ever same the to momentum

of Sky While strategic continue progress recent Q XXXX the Studios of the all we continue in poised the Prime Disney to fourth video. our to reaffirming Sky initiatives, surpassed integrates and really has increase We're streaming, to which pleased Sky success is additions our Amazon viewership on with in Discovery commitment expanding and XX% meaningful the make and during with original to XX% channels our and Originals, of on creating contributed UK, which Plus, Sky Plus Entertainment penetration programming. quarter

and new, the work creating model. around. this this EBITDA of the the major year reset out. of lockdowns wave we're of a as should next result years, to cost disruption, again operating related confidence benefits of the are from We second recent rights several XXXX will once start savings recedes. also first plan from and infections the lockdown and on we the forward protocols to leaner recently as that pattern the similar laid across procedures half contracts double to a COVID over time look we're really sports when still that Jeremy latest implementing While We've same And Europe see

met of executive to as On of that, accomplished joined our all Consumer Cable drive and XXXX. Services is She in ability change. Head back with positive him top want wonderful inspire a thank an business offers also for leadership Many since hopefully and a and she the international to it’s Europe. now who near XX over on brand Dana team Strong, his this the He call a that's now for thrilled as partnership world-class I'm strong, unique and Sky have for I and exceptional integrated. acquisition. Dana Jeremy, well-run fully with she have Sky. you for with has business XXXX of a world. for of CEO in entire lot since experience been his Comcast of has promise of half of the over of Speaking established transform, taken years of

toward of While will in Board this which of most in we’re This is the year. back Directors our half business be than the the the of back second challenged we will been our to an the is due the growth. our announced shares really of is putting half the of have first encouraged our vaccine XXth step also by more COVID, first repurchasing increase it year. impacted on shared strain promise this the which pleased dividend that parts path return that most I'm the of our recent to by in optimism now morning expectation consecutive

a fast parts with not I'm a you. respond company all decision truly to is positioned our just and year XXXX Comcast, well. proud difficult imagined of had shows ago execution, what Mike, any environment was to and well Sky what how have we succeed. of cooperation over remarkably enabled making this NBCUniversal quarter us and to accomplished and of this through manage time, our While fourth

Mike Cavanagh

morning Thanks Brian good everyone. and

ahead. Now on XXXX fourth current make possible conditions I’ll on some and year and results review comments where our quarter the

billion Peacock X.X% for $X.X Adjusted Let’s slides to for a results. the the XX% $XXX its and quarter and world. the severance post includes other $XXX charges related charges XX% billion fourth and EBITDA and full our the as includes Revenue COVID four year these million for and declined five year. took declined actions and to $XXX.X full in with also segment the in full the corporate our COVID $XX.X we to position fourth to fourth consolidated begin success quarter, launch year. The year. businesses restructuring were billion for to X.X% on for quarter and $XX.X million for billion for

$XXX while generated $XXX XXXX, For losses approached EBITDA Peacock revenue million. of million over

quarter share We declined billion. to for and XXXX EBITDA continue for XX% for per the for that total combined and XX% expect Peacock $X.XX losses to XXXX the year. earnings to roughly Adjusted will $X $X.XX

$XX.X reflecting in flow due capital and benefit for pandemic. cash decline the to free billion full the working from EBITDA Finally, was in the the and part expenditures capital quarter reduction and in the year billion in $X.X the

starting Now to Communications X. review our with on business segments, slide Cable

Cable while For fourth EBITDA led increased XX% Communications increased grew XX%. the and capital EBITDA quarter, revenue X.X% adjusted

the the year high-speed and XX% this fourth year record were year-over-year million high-speed X up total for priority and the customers lines XX% For net additions new posted internet X.X growth businesses. us by the additions of the customer a customer primarily X.X% strategic added revenue full by revenue Wireless bringing highlights business acceleration XX% XX,XXX small accelerate by XX% in we million driver year X.X internet the with to in of in net residential new have Other quarter Wireless lines of XXX,XXX million quarter. back the services customer grew full end. with actions XXX,XXX additions primary is for the relationships These net grew new include year. we revenue our driven services quarter driven business XXX,XXX growth fourth we taken. wireless. and and quarter, in in where increase improvement Business on net and revenue should a both for at and several

agreement. First, our MVNO we’ve Verizon expanded

retail mobile all our nice operations of in are and opened. we’ve we’re a Second, into refined and seeing which sales activated now channels we our lift integrated and our fully fully third, core marketing stores our

implemented rates doubled we quarter. advertising Video, almost which declines revenue increased by higher in more a XX% And last or in subscriber generated the with X.X%, in loss XXXX. beginning net the XXXX cycle of XXX,XXX X.X% offset in than declined customers For what presidential excluding year-over-year including political, election this revenue

of Programming for annual escalators renewals due Turning expenses started primarily Communications in promotion slightly reflecting that to and product agreements. fourth contract and cycle with higher support and XXXX offset up X.X%, expenses existing increased to number through to X.X% quarter. activity despite customer top-line partially customer full the increased expenses political XX% in record the year, drive higher X.X%. customer EBITDA Non-programming spend to which the this Cable X.X% with per expenses, our advertising associated and growth. expenses by quarter declined Non-programming were grew the costs, Communications by decreased service lower Cable and impacted in relationship and that the expenses resulting marketing technical the were XX.X% growth improvement X.X%, combined basis capital CapEx with of XXX expenditures points in Cable margins reaching XX.X%. excluding intensity in decreased adjustments of year. RSN results earlier quarter advertising,

enhance was increased partially customer spending support capital investment on on ongoing For of by X.X% exclusive equipment our year-over-year XX%, spending XXX premise in usage. on to full lower to of CapEx infrastructure, and year an of offset of year, capital improvement which scalable higher support the data network expenditures by intensity driven and driven record lowest the by resulting full RSN points declined our basis adjustments, our capacity

have speed to environment, very additions be the and remain internet Turning to a for we place healthy pieces in XXXX all customer current year. strong the high

many that view We against also more exceptional was also strong for have performance. of remember very our that, accounts. And XXXX, benchmark which we to year XXXX was us because to which as appropriate a on

year, beginning current losses expect resulting experienced sub renewal we’d we the video, to XXXX. to to implemented programming drive cycle video the of in from half we this at rates the the higher levels of video first Turning our back

subscribers, now to Our only free a chase who strategy is Flex do offer as streaming option. unprofitable centered not can prefer those We we entertainment on video video profitability. for

X.X% our to remain on exceed first XXXX, the the we expect Looking we to focused with for better Cable full just comparisons businesses half. reported as driving Communications connectivity revenue the we growth year, year-over-year in

moderate of and which levels normalize We digit a the in margins growth work discipline and expense to profitability, ability growth program trends capital low-single quarter, improve digit renewals are higher our remain we expected similar the at expect growth support as connectivity, programming is through expand fourth accelerate expense in operating customer thereafter. to XXXX. high-single With increase our wireless investment, standalone expenses roll to increase on should carriage level expense the as and consistent levels, confident XXXX. XXXX we we to as to on at Non-programming and focused programming and expect to our growth XXXX in with thereafter. profitability in achieve both relationships business, we at CapEx The intensity, in XXXX increase coupled in

Now let's to turn for NBCUniversal. Slide X

delay down billion carriage Networks to reflecting fourth decline by distribution decreased in quarter, the NBA Cable compared related quarter XX% fourth the other billion. year and had EBITDA XX% which X.X% renewals, revenue the to combined ago, in revenue flat of of improvement negative decreased the benefit XX% amortization a licensing was sequential XX% EBITDA sports year-over-year. while with in and was declined the content a to of NBCUniversal advertising and modest while absence to of The revenue to our shift $X.X NHL the X.X% revenue, subscriber driven $X.X a a losses. which on For quarter, grew the revenue, rights impact seasons the was out start

and delayed, expenses in were related number production events were the lower XXXX. the costs lower current Fewer related sports pushing $XXX distribution in a advertising amortization driven and of impacts by earlier the and COVID. For as X%, and rights Networks Seasons the sporting million increased year, year, revenue, of year-over-year. XXXX Cable well EBITDA shortened programming primarily events contributed full of seasons to to as

carriage renewals. successful XXXX, a So, of revenue healthy expect looking distribution we as recent result to growth

and to higher would Networks a double-digit low decline year. in also currently advertising but also increase programming a events Cable expect costs, We significant EBITDA this equating in result sporting significantly sports in to related revenue, production which compared XXXX, more

a consent decline streaming partially the related, year. to advertising platforms including and Cable fees. licensing by Broadcast revenue at XX% of timing the Peacock more and X.X% increases due revenue, decline Networks both Turning nine were content of heavily in The Broadcast, decreased declines to in double-digit quarter, revenue fourth offset as months first quarter sales the licensing, in were XX% content to concentrated retransmission a in in another

being due by in last licensing, and EBITDA. had resulting was our a COVID-XX content Broadcast comparison deal in to of a the for $XXX or We XX% significant million to of at ratings, revenue somewhat was offset Theatrical This due by operating library Filmed record lower production in XX% partly capacity. season. quarter. partially by in stations. costs, reflecting also at offset limited X.X% of $XXX The delay XX% were to EBITDA a driven and levels delayed revenues advertising the fourth difficult launch decline local decline theaters Entertainment to the in either ball political operating due to fourth revenue declined revenue closed year's our to increased lower The decline lower in million a advertising quarter. declined

by the $XXX Studios Results of reflect Universal from increased release million evidenced While and X fluid Orlando to pre-opening capacity, Beijing X, Universal in push a to franchise and our Expenses we're with Baby million. such the by our but remains recent driven maximize September. while million at XXXX, of of fewer XXXX number films $XX limited also debut as situation remains quarter an to $XX costs. releases and to the Parks theaters, significantly In operating in closed. as result our lower due results still PVOD. Resort of EBITDA loss content These revenue were hope value, to Hollywood XX%, include Japan, licensing back Theme we Universal COVID-XX. decision March FastX was adjusting place a as of Minions Boss

also Japan, For Nintendo caused to to restrictions COVID XXXX, World. increased which keep tends be mind also that we quarter new light impact us terms in in have Super opening seasonally the in attendance. given first an And of delay the of expect

our $XXX One are million way with pleased we last highlight, quarter with first we as the Peacock. to open half impact the remains item this I'd set NBCUniversal we of costs to in We ramping television for one Cable segment to the Broadcast combine University be changing a starting this businesses, first like largest will XXXX Networks year. to Beijing along pre-opening report that in and into being of with summer,

X to was revenue, reflecting currency direct-to-consumer I'll which by constant let's lockdowns for on X.X% fourth mostly segment, additional speak slide Now Sky, in billion, for pubs challenged related by decline basis. clubs and the to X.X% or declined during COVID hospitality a quarter. Sky our quarter $X.X the driven turn revenue which to a

in flat hospitality, with Excluding the solid low-single-digit direct-to-consumer year-over-year growth UK. was revenue essentially

a Somewhat we decline monetize revenue direct-to-consumer in revenue original in offsetting with the XX% programming. content increase our as

quarter, as grew mobile revenue the helped by result total additions been to of May, programming, performance delayed driven our essentially COVID-XX, strong our broadband streaming and channels of U.K. strategic a net UK. as Sky the products U.K. levels events Sky our very initiatives by have by a outperformed number to X.X% fourth in Sky to costs such that pre-COVID back a growth uptake advertising rights in as us markets, added impacted the marketing sports of also amortization in related Sky in challenge the customers Sky higher as and entertainment was related mobile sporting as a higher the $XXX well of product expense customer spend seen market as items, as incremental While shift bringing in new new in was launch Italy. of broadband a in such advertising investments quarter strong promote last the Q, XXX,XXX relationships in business. healthy million the EBITDA with We've in all to

we pandemic. due in we the the XXXX of halves, as under levels COVID increase to would recent restrictions the pressure a of related is the half beginning ahead, two tale extreme characterize Looking first at experienced to the

Sky’s experiencing now as and quarter pubs and the year-over-year. advertising, revenue we the are in government mandating With well outlets, first weakness decline clubs, expect slightly and we as retail of to hospitality many closure

half Consolidated expect launch to we broadband growth rights’ related the capital we’ll later also on major from in structure. from capital, amortization We to first as resulting postponed from X.X% XXXX increase non-sports software dividends $XX.X includes second be more impact see sporting billion us the related which to both through to will right with sports be being an to higher the elevated quarter. cash CapEx flow full to efficient when XXXX shareholders In expenses while an from and compared grow costs, year in XXXX up tailwinds with flow as a for events SMB working recovery the cash quarter. XXXX, our hospitality wrap $XX.X to mobile and for half in UK, sports capital intangibles, lifted restrictions revenue in XXXX. improved I'll the in slide well COVID. year, these the EBITDA and as business of resets latest generated Italy U.K. by the the decreased paid this we and operating $X.X and in quick an advertising In reflecting $XXX broadband and total allocation in $X.X a We and in billion billion, second our acceleration free billion as once million of and expect are decline free X.

Olympics is XXXX of investment, related the more to increase to broadcast to will relative we remain tax drag capital increase anticipate comparison, while Looking will in the working total our relatively and due deferrals. XXXX, the saw appropriate capital we the to which content the one-time an in reversal COVID of flat XXXX, levels, levels

of shareholders. investing capital organic our priorities, growth Turning has allocation, a always been a capital in several profitable and important to balance returning maintaining balance sheet, to strategy strong

progress First, billion XXXX end $XXX balance great post billion reducing the of end our we've from on the the sheet, $XX XXXX. Sky at debt of a acquisition net made to at

strong our such grow including we Parks where initiatives we continued Sky Q investment in growth in investments on organic earnings CapEx other investment on to and see Broadband as and focused long-term our in Flex, Xfinity of the Broadband and Mobile, Second, remain the power Italy. businesses behind return investment Peacock, company,

returning through proven dividends and to committed a we buybacks, are we shareholders Third, to record. capital track have and

significantly years have dividend row excess our time CAGR of that over same XX increased XX% a in We in the period. at S&P a

In to of back share a XXXX, return we we to able our shareholders. acquisitions. demonstrated to ample the our returning we capital and NBCUniversal stock, Sky reduced our will have practice history between of by believe having buying count historical nearly addition, XX% be In

again stock. are by to and back per $X are we dividend planning our share We return raising a the buying $X.XX a share, to to

As start tax in the to will timing up in while XXXX. potential pace end magnitude activity to half year the ramping pandemic policy. year, which Brian continue of subject we in by reach leverage hope mentioned, most related to buyback gradually our and and is hitting currently The our changes be this implications specific improvement levels target our businesses impacted we of the by to levels, intended back to to historical towards our expect

joining this thanks handle morning. Marci to back So, call I'll Q&A. for us to And on now hand the it

Marci Ryvicker

questions for Thanks, Mike. Regina, call let's please. open the

Operator

Thank you.

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

Ben Swinburne

Thank Jeff Brian, for on I Good and One NBC. guess, Dave and morning. you. for then on one Cable,

obviously, really and know guys talked about year's specific particularly as benchmark operate mean, think for you how COVID-specific I the we drivers at So demand transpired customer broadband XXXX, longer year the at was you that versus performance year. of how in But the in you some on strong increased business. in And what as metrics XXXX the I about are durable? last in think things curious, are do What the when the and term, product, of your terms of terms beyond the the you you for look to side. guys their also last different look metrics. XX million And active by us then laid when for I million elevation for sort XX ahead versus But Jeff, think are of the prior the everyone. to know realized accounts business? Can initial pandemic? you're Thanks, signups nicely as and on today you accounts this the you outlook I that reframe to trajectory. is kind inactive CEO, I of just durability like revenues Peacock become out, Peacock that it with material might NBC of of seems kind opportunity I ’XX.

Dave Watson

is Well, I'll side. on this the off Dave. Ben, kick Cable

strength the momentum Broadband, it think well COVID. for point the the we've I had great There's us, been category and in before Broadband fundamentals that of many very think taking if the point now sources for the towards board competitively, consistent real in we we been fundamentals the market geographic starts across with serve all competitors. quarters and and I main share. where and sources, wireless, are And we're have growing wired, other is for with DSL the And the us. market, starts it the telco over with country

the I you way truly think, year is think as got they're million 'XX said, the that the full the we And and control, an I redefine in churn. streaming. And really while customer well right look best to think do the the category on because performance. front you is Brian at network in we've consistently speed, compete service, that coverage, see We ubiquitous. Fundamentals We I at of exceptional So, from X extraordinary. it additions, invested in end, when forward, overall year deliver the results. looking best now 'XX that net the low in And going marketplace.

more Mike growth. the seeing what a the next towards look add encouraged really strong said, were But think right home, those We're as in think year. all of I I the I do from moment. there's home, from a think as so, up time, there things, think schooling home and is we're year, I period -- you gates. do that's organic just a we as But short that went continue. to it healthy you everybody fundamentals unique lot folks working But And start XXXX of to points out a have

We have upside. strongly. penetration that we growth believe There's opportunities

I year, strong think 'XX the way. by was very a too

right to basis. at on I go-forward think the best a one that benchmark look the as is

Operator

of will Ehrlich Jessica America. next Our line with question come from of Reif the Bank

Dave Watson

Hey Ben.

usage with Mike loops this a is every the today that on And going then use are we hours about Peacock have service. up our quarter over that we versus number saw then that we of of XX million into significantly one the signups all People actively metrics we So, it which sign we anticipated metrics, the they primarily an up reached per of business. Brian drive obviously and And we is amount week. user what talked and the advertising. AVOD

we are just people are over nationally six only, very based very amount We they But up, this are small launched beginning we business. months and the on Comcast time expected. business so over has interested months at model, the the adapted ago of are that it. in the nine we’re have signing advertisers business right very And we ago, are what this model of confident using on buying just

business continue on at is growth steady reframe this much focus performance anything give this to have lot but forward. we're a point, model the is us to and that revenue. this I just to for optionality advertising So, very we drive expected, going think don’t promising and the we now us better that But than going

Ben Swinburne

Thank you.

Marci Ryvicker

Thanks, please. next Regina, Ben. question,

Operator

next Ehrlich Please ahead. is Bank of from with of go Reif Jessica Our the America. question line

Jessica Ehrlich

questions. I Thank two have you. also

like, NBCU. additional eventually of And Can timeframe think will will revenue, side, new I is within Verizon the I you'll see talk mentioned Brian, the of of for of you it Cable and the you be in think services? view up, mentioned be benefits the Networks, Thank MVNO all will as well? that, in deal. about timeframe What's First, of kind the show on the And what all the you Where long-term the that that on it be Cable of you. restructuring? several at the benefits Peacock? where

Brian Roberts

start? want you to Jeff,

Jeff Shell

Brian. Hi, Jessica. Yes, thanks,

as view, whole. business obviously, television a we our So,

view business. says, a The of business, to going see we purpose as report of to you're Mike real was lot And the us how next quarter. cost out we starting as which whole grow one really we're whole. redo it allow business in And definitely and the took the starting while our restructuring As future run television of the numbers. to to it in a

such, selling and part as future. are Broadcast, we're one advertisers of that And Cable as streams of in the I two Peacock. the and subscription advertising its looking near So, it business, obviously programming as they're the business, to the EBITDA the Networks And But such. at still as change big Cable biggest we're don't platform it a business, we're driver. to revenue anytime one expect

profitability time between allow think and to And like But the harder it looking the want us business. Dave, I over on to time. really restructuring so, of that's wireless? and going grow take to distinguish harder the it rest it'll we're business you to one that the because think be we us Networks to as and of over Cable television that allows our run business at

Dave Watson

Yeah. Hi, Jessica.

that Brian is pleased of been capital with working aspect of that glad things the we've mentioned, improved really one work important future. light great in for us, MVNO. going a we So, the is think relationship approach the partnership and had is we to Verizon,

that us a as really to what we're doing, of certainly push competitive. think range will I So, keep towards already point enable offers starting a amplify us very

and continue switching we're for we're grab back and continues to But a optimistic particular, retention. the will and you for business second pleased up We about very broadband space. In well have we what perform overall, do. it very mobile share mobile been to just the and

digital, every it's reopen have. we mode, going safety all that on you channel, new single focusing retail channel accelerating the nice a a after to mentioned mobile. a and really And centers, single so, We like, we're be things it, protocols while growth in sales name this doing time. we're in enhancement last mobile. there And that we're forward, MVNO we sales every other step safe really of committed are whether And lot will

in Leading we're mobile mobile. leading with NPI, a packaging, literally XG Samsung, cases much into broadband. very to we're moment So, that Apple, We'll it's also new featuring whether XG. when some in with lead in and product, there's use participate we

overall, I think I overarching the point that country's just to And also think have it access good think plan about Verizon. placed. would feel we I I runway. towards one, our the we're So, we well with best network,

talked we so, And that. about

outside also infrastructure is be uniquely I could we've And And layer, area. key go leveraging a the home, continue to the Verizon being to in time, too not great the spectrum I we're able own leverage really we've which in network it think things already thing areas, add public think just which after we that acquired. are we third and usage over then to improving wireless provided Wi-Fi. -- supplement targeted experience, the might a use we're our the always -- high dense

us. these unique towards think point all a I So, for opportunity particularly factors

Jessica Ehrlich

Thank you.

Marci Ryvicker

you, please. next Regina, Thank Jessica. question,

Operator

Your question with the comes from go ahead. Suisse. Doug next Please line Mitchelson of Credit

Doug Mitchelson

Thanks to and where likelihood offerings of the as so the new with thoughts changes business the And just and much. more that? on you MVNO? any now Peacock the to MVNO, potential spot, you not a can the but address part you of the clarification of result new you. can as of can benefit wireless the perhaps customers any can Olympics range and improve that the If you on service? And when offerings Brian, could wireless, customers follow-up I operations? the said customers you address put the what its on that your to rest And are new before you then, but Thank to or on

Brian Roberts

think beginning on think I is the wireless this I Well, question, the the year. of

But offerings to what said, the in were this breakeven said, tuned. if of think including right. the We're But and part stay And was terms profitability. have that the elements report follow-up churn as today and are of to piece our So, and reducing we'll we some Dave so more to I on in wanted what just to get bundle, it's also we is year, convey think parts think important us driving goes it's I have momentum, going these year we to businesses. that a on. but place, strategic Dave early in as and toward just --

would it I Doug? the to Or say more will don't specific, happen? Olympics So, about question And you more what, follow. be if mind, bit is a

Doug Mitchelson

guess taken I sorry, Peacock as a businesses it think year. there know, your whether as Peacock usage drive Olympics you've it’s and and excited happen. sort about And last or as marketing something Yes, step vehicle driving Brian. had you in and how out forward I not there's using And do of awareness for of to in you of were a will Peacock? the about initial important concern was some terms success, Olympics some

Brian Roberts

year, and going that echo what be had Peacock moment. for the want Olympics without Yeah. how I said, even to Understood. that to was Well, really with Jeff big first of all, this the fast exceeded pleased has hoped launch we

start than giving everyone doing that think is an would So, an I that that, and team job better best have the I think outstanding to perhaps. the even us want

us great the gives that So expectations for future. just

here this Olympics will that. sitting think our be So, I that's I be there today, excited I in at believe in Olympics. about we're it'll best and time. hope And intelligence

over may wherever host seven in in world I it and spectators world have Premier later the and think another from it seen the we country the happen, ways, limited be as Olympics committee. Beijing, the spectators, all doesn't in to or League be Japan months If in can July. be done to in coming take event, host sporting events That'll up so. of with place or many no NFL, a the others variety we've

safely do an know so Olympics, moment globally very and that don't we're would you which to add Jeff, come that for together the the world us all I successfully to So, unprecedented. television through, but find anything which been a be believe have they'll is and a and to post for event what is to want back hopeful we've amazing way

hopeful we're So, optimistic. and super

Doug Mitchelson

you. Thank

Jeff Shell

Yeah, I guess…

Marci Ryvicker

ahead, go Jeff. Yeah,

Brian Roberts

ahead. Go

Jeff Shell

what to add just to Brian I going said. No, was

continue are pace. coming that I think are advertisers and also to Olympics optimistic the

to even advertisers said, as kind where ago when would I buy. call earnings were we in has ago, be were year thought Olympics gap a last over a grown think jumped we further up we that the of I year

COVID to of and anything that confident can advertisers this but with we're are happen to know world. in don't happen, going pretty is kind happen, jumping in We Olympics and So, agreeing Brian’s sentiments. going what's

Doug Mitchelson

Thank you.

Marci Ryvicker

ready Regina, the question. we're now Thanks. next for

Operator

ahead. next Your go Morgan. comes a line of JP from Cusick question Phil with Please

Phil Cusick

Mike any months trailing Hi, margins but EBITDA Thanks level. X.X And Can look at giving test still direction you that's Cable not not to on versus I and us a guiding all of remind target comments intensity, commentary. to intensity we what against can why you're XX despite times us and for is? improvements level And moving your versus think guys. for numbers, the Should Thanks. confirm buyback year previous I years? for that 'XX you margins, give the XXXX sort pieces. assume on year-end Thank capital this guide reported buybacks? then you. capital the

Mike Cavanagh

Mike Phil, Sure and, it's Dave the do second first. -- I'll one

for on the you renewals, gave in well and the set XXXX improve the of reported when together as And activities of which of towards business in plenty in the profitability. wireless think horizon including color ability intensity for [Indiscernible] the your towards business as about and driving terms division to a we confident long-term I versus in focus in comments and year all I really But the XXXX is locking our thereafter, factors, the just Cable up capital the programming and ahead. profitability, terms our is long-term not is I expenses, think comments beyond that, of numbers look Dave expand those at earlier margins just and to I mean, think are just increase question. business that, come in connectivity, that

all you calling coming think plan and long-term gives looking is the out intensity utility broad outlook I the together to focus of that capital those can capital give and backdrop numbers, those connectivity allows that pieces. margins all us So, things with which and on the on out expenses we're innovation ahead. lens that quite giving efficiency improving combined through side, judge you frankly you than that less But of confident specific

add I to there? know Dave, anything -- have you don't of terms In if

Dave Watson

in transactions building profitable going way And and talked we way, to I a about not capital healthy a the Mike Yes, relationships really taking lot managing of with like expenses extreme Brian's transition, talked intensity starts a that's we're doing. just that focus after out. focus of margin think video connectivity, customer this us improvements, in about, stop, going around

think with things Our what that kits, these and dealing are self-install environment. I beyond digital go are this in focus that'll we're very durable,

the continue in learned a to I ton. think way. we'll operate we a And unique business

of think you going quarters that drive tools. two-thirds that activities completed I of transactions all digital today transactions non-programming the cost. are things those We're SIK, to being of then towards capable connects kinds or our those digital the of just three way, and through continue So, amount our to that on look focus

And so, we'll stay focused on all of that.

Mike Cavanagh

a elaborating the just gather capital bit. team about capital much then, all a the on balance lean the for get these and Brian know businesses we on Anyone in and and balance into investments really into be I from covered expand buybacks, to been And but very I -- listening growth. the today. continue returns for where opportunity businesses complete it balance return. make we hope the that earlier would, obviously, I'll strong, to I think historical organic to our while comments with very which which growth our desire to And just investments think you leaning across mean, then see as talking in I to our back I call doing that allocation, we've even back is get making sheet healthy

return know, the element You to we return and well. but year to while we've dividend, it's of buybacks XXth the being increased want in turned off for the a as that portion

billion We've debt gotten balance the $XXX where after with to billion pleased down net we're said, I as So, sheet Sky. from $XX is.

wait up ramp XX on outpacing vaccinations, it's back, out probably going and you see to buyback fourth billion plan and confidence I our basis we're of closed that called get even in other through breaking the to that to And XX to that, that virus, it at trailing at much a just degree times. we full were can evidence the run COVID call get businesses of To to just the point keep us by We'll XX return snap of people high definition when we'd we as that take beginnings fully to we constraints, that a that Hollywood with $X X.X even to as Beijing level, moment. half back pre and -- and of to the hence to travel second XXXX. the with expect historical it your happen in EBITDA levels. the gives we're see our the hope this year, cost, month expect in or and as going it months. that until the capacity end operating months for stay of Parks the point, to quarter, inside on there the seeing start a to We'll around actually rather Just impacted get historical it begin the side that to for than

Marci Ryvicker

Regina, Thank question, you, next Phil. please.

Operator

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

Craig Moffett

Yes, I two if hi, could. questions,

than you talked what the a you Brian, about could enthusiasm get questions bit about it how case pleased more now First, certainly from Flex clients We become. are lot had with little Flex. been of for a our with

with And into that or for on So, agreement? for product you your and grow are about the the offload, amount now might thinking you period how CBRS the wonder spectrum from that then the in a of expect or out traffic to widely expectations what testing platform? to us and that hopes just aggregator little talk wonder even MVNO about that update be a product able offload much widely could we're expand cells with do if small might just whether that's is what distributed respect on national you Flex traffic global any a you you're could wireless, you CBRS markets as your Flex? could now quiet of I you distributed an and bit And if

Brian Roberts

you one there's free to to about to moment, know don't second about if that? the I wireless take if at anything add want you and but why this and don't feel Dave, first CBRS. talk

Dave Watson

Well, have… we Craig,

Brian Roberts

start that's do and fine can want I both. follow And if you so, you on can Flex, to we

Dave Watson

bit, great me surrounding with broadband way their And it's the CBRS. it's But working, we on another package that drive strategy that let well, touch working current into and of that yes, Flex, outcomes. very products retention broadband, with well. first go Craig just better a Okay, it starting one little going then with

we for Pleased sure. streaming quarter, apps, the all So, later apps great it soon voice everything. so will experience target to have we've to performance excellent Peacock launched, and be including with with give tons and Disney. the Max and segment apps other just about on of the the All that the this customer HBO

And opportunity think that But our for it targeted. really is is I next we're working do the today aspect a that's of and and We platform of you that helped one split's you drive think developing company we participate advertising. long-term more mentioned, us. that all able and phase is as innovation I can that on being this I we know get. for in turning focus called think the to the have drive, revenue piece XUMO, app that

Right opportunities then and think stack do it on, scale. we're going you And common building talked of whether great a But Sky, whether now, internationally these smart this which at. the about footprint, which we're so, working that are scale software TVs, but have plans with it's a we it's includes look but have, leveraging you we already solution. things we've unique as software it's really within think device beyond or And that can we'll a to that. that our working I build together,

Brian Roberts

me embodied strategy inside is think let with of I add that that the and sec, then whole Hang articulation flex. broadband for to aggregation just the on streaming, company's and

success and Flex seeing us programmers due the for approaching very Broadband other for do what partially with early can them. platform the So, seeing both Peacock's to much do and can we're XX content and Peacock success platform platform are to with the Flex this their customers. And

on other scale the the was looking the answer question. and platform about, So, wireless be this to to this bundle way? things throughout Dave about taken that think that that what advantage at are can opportunities ability we'll And that's year. Same led have of just to -- talking sort talk more I what are us in of and

future we're of up what investments some of I success. our think made some early and the we've opportunities set with for

client’s your Dave. And some the is company. service We'll going, for on more share improve. going has I I well. I'm created that product to So, the as the I we very a done to have continue But Keep think encouraged that team as updates along. go Flex think enthusiasm, great

Dave Watson

targeted is are the I wireless and and CBRS high around in the usage only we other think at of on Brian the plans areas Craig would looking and working and point dense on be, use nothing spectrum traffic, how development This lot offload so? experience now. focus the really terrific we more how to a effort, could of So, this but is right on a in comment be multiyear it at doing point.

Craig Moffett

Thank you both.

Marci Ryvicker

you, please. Thank next question Regina, Craig.

Operator

comes question with ahead. from Please of Goldman Feldman line next Your go the Brett Sachs.

Brett Feldman

don't Phil's actually Thanks. And I'm if question. up you just on mind, to going follow

strategic Mike, But to ramping long-term your sort would of So quite responding the were longer you've and $X excess billion level on question turns. think you de-lever buyback you historical were M&A get to sort program. that to target towards of into I back a back at historical to buybacks, you liquidity X.X year your redeploy tended pace, remain continue I you up talked when about of you that about if Historically, of leverage think term, until probably rapidly. the actually his to if

flexibility, sufficiently suited And whether your you. current of medium asset operating think is preserving meet long-term that targets? so, the you portfolio powder type dry the to of do of to importance Thank versus is, well how long-term about your question

Mike Cavanagh

we Sure, advances But streaming things described, good enabled that think how have, three that aggregation. Brian how the together, chime fit are and of Brian is pillars I that broadband, Sky obviously we NBC, the with collection feel they can very together in about in. businesses and Cable

company. repeat have. what and So, that those gaps But, portfolio very any the I at a always think don't pleased many proof I are that doubt we'll don't any in won't too see we M&A, strategic of are we there's we points look of but as

just number it today. we about get with get there. as suggest from inside deliver. talk folks the I we when discuss Brian, that we'll would that we'll X.X to we'll options want that But to that's mean, I it anything wouldn't add? we have there, and we So, else stage, you But stand and get where beyond times. we

Brian Roberts

two add other things. just I Yeah, would

roadmap really beyond. I we can a see, we healthy the us important a think in believe are that to the with point change we feel impaired getting and moment the vaccinations full businesses today progress, it's obviously to recovery with an having we things businesses for and can that and hope

back important really getting to. that Mike as so, balance And I described in I with earlier, have think get certainly us something to is wanted really

also And up was is XX mix a to the only year be we've businesses. and that. said the wonderful to broadband-centric of had we'd proved Second, company last XX% we've to growth that being really with exception model. like years NBCUniversal of Hopefully successful

well but businesses a But really So, the we the mix with work majority being can has expect great in growth us. having all company businesses for having of together. our broadband worked centric

ahead That's got, this at we've get where with we've and announcement the of to and today priority expectations, scale, here world then see we're focus got right main and it's we execution got on So, path I was momentum. our in -- the we in company of get the go the very this continue that and our great and are to think direction to go on later a pleased hopefully, the the a year.

today. So important step

Brett Feldman

Thank you.

Marci Ryvicker

you, question. time one for Regina, we Brett. last Thank have

Operator

Hodulik from final ahead. of will line with John Our the go come Please question UBS.

John Hodulik

any is backdrop of Two expect we deal? just or And have neutrality WWE Can following I And regulatory give resonating any concern content will a up And sports the subs? for sense the on as you as engagement first for and color maybe how ones, on quick the Maybe ARPU on upon that thoughts should us new thanks. emerge on Jeff pay rights Peacock. follow-up or net Great, think. is more Thanks. spending what then a will for platform there evolve? policy Brian, you goal?

Brian Roberts

to Jeff you want go first?

Jeff Shell

Yeah, and John. thanks Brian

let start with So, the office. it's me obviously,

we've the office almost have very how So doing. a of with we pleased it's as for January it had now the Xst, office, month,

Netflix customers of other are think among usage was importantly are we lots Office our who we're happening are seeing actually amongst customers. The the on is, higher watching comedies. Our And that than usage more people Peacock what's watching

and Rec, Parks driving really really driving it’s So Brooklyn XX others. amongst

of things how worked came also really to So, it about has our percentage there's or talked kind then Premier watching in quarters for EPL ecosystem Yellowstone greater how We've League like surprise us, turn them, a and other of an of them was viewers that. previous those in comedy. and much and

seems of to in be version has will now which will, that behind be of of worked. paywall to that So, we have we a We WWE working free can of there's believe, events of on of of people is the a an us, were only service ecosystem on can where that will Peacock, it thousands advertising. the our Premium kind view, things. put not different us XXX drive certainly get big but can behind cross of programming whole people a And an And promote we USA remember, allows a here, enhance at our the like then kind investment monetize pay WWE, linear world were brand we Peacock. for into the that per hours networks. one, Office to paywall The really number and WWE because property that perfect broadcast used

one and a clients of as cross perfectly and solution, platform, promoting of into kind operating one our this the fits calls selling whole so, Linda it. And model business as advertising

leverage I drive sports, So, model and the to comedy, think advertising of so the success our here businesses of working, think that we've really I far. stories and existing is certainly constructed kind linear two

Brian Roberts

be the administration we'll this conversation about government. having know, I And new Okay.

in -- the light we raise and view more down paid not with consumers worked managed regimes. successfully the we've have me is the content let that unbelievably different administrations, to. to case classification long-standing broadband And invest wasn't and that different with principles COVID. around our that we're Clinton throttle regulatory and during asked new. different to we to And going work well obviously strongly regulatory investors allowed and and since the felt say, But just think the really don't perspectives that were do providers universally with but the to quickly anything believe some discriminate, globe, created benefited. So, company broadband and services. We've there's how other I has And any And around reduces touch for the dividends regulation President block, risk neutrality business. committed of never

available there's if moment, like and to I just And and Dana Strong certainly this weeks. taken introducing a for didn't perhaps place that just a words. more last by want talk in group Dana way codify Sky a this to about to the a that's introducing this to pass with call so, next congratulating way consistent Dana Starting to end the Sky detail, just few couple issue a be say but would a to call, moment without over who's just great here you find with you, to possibility. permanent will

Dana Strong

everyone. have It's say Brian. great opportunity Thanks much, hello to the to so to quick

for pass to couldn't had Brian I talk forward past the just great Brian me, knew mentioned ahead UK, having Brian I that Sky. spent I I'm worked weeks the opportunities this an that in let exciting now, about for as Europe, again say Looking admiration in extremely up. few When before. as have, future Because as me Maybe called opportunity I've mentioned. briefly quarters confident in was having Sky always long for the

and leading those to its excited years, has that and organization, competing have assets many an more I Sky an brands. team. partnering Sky iconic of incredible unique across just market this Jeremy couldn't in a next I I'm I about in amazing breadth fantastic chapter. And say that be And built appreciate Sometimes position position Sky with truly think holds the in to the

talking forward So look to Brian, to more you. calls future it about back in and

Brian Roberts

a be going it Jeremy, But for and as guiding do of both me, here year great you of anything know through up you us Marci, team. you'll you are you as have the this And rest well. be to else? thank Thank wraps I That well.

Marci Ryvicker

We and like to on quarter healthy earnings call. everyone thank you safe. stay us joining XXXX year just fourth our full hope I for and

Brian Roberts

Thanks everybody.

Operator

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

all may disconnect. You

Comcast (CMCSA) 28 Jan 212020 Q4 Earnings call transcript