Q1 2024 Comcast Corp Earnings Call

April 25, 2024

Operator: Good morning, ladies and gentlemen, and welcome to Comcast's first quarter earnings conference call. At this time, all participants are in a listen-only mode.

Good morning, ladies and gentlemen, and welcome to Comcast first quarter earnings Conference call. At this time all participants are in a listen only mode. Please note that this conference call is being recorded.

Operator: Please note this conference call is being recorded. I'll now turn the call over to Executive Vice President, Investment Relations, Ms. Marci Ryvicker. Please go ahead, Ms. Ryvicker.

Speaker Change: I'll now turn the call over to executive Vice President of Investor Relations Ms. Martie right Baker. Please go ahead Ms Wright Baker.

Marci Ryvicker: Thank you, Operator, and welcome, everyone. Joining us on today's call are Brian Roberts, Mike Cavanagh, Jason Armstrong, and Dave Watson. I will now refer you to Slide 2 of the presentation accompanying this call, which can also be found on our Investor Relations website and which contains our Safe Harbor disclaimer. This conference call may include forward-looking statements subject to certain risks and uncertainties. In addition, during this call, we will refer to certain non-GAAP financial measures. Please see our 8K and trending schedule issued earlier this morning for the reconciliations of these non-GAAP financial measures to GAAP. With that, I'll turn the call over to Mike. Thanks, Marci. And good morning, everyone.

Speaker Change: Thank you operator, and welcome everyone joining us on today's call are Brian Roberts, Mike Cavanagh, Jason Armstrong and Dave Watson I will now refer you to slide two of the presentation accompanying this call, which can also be found on our Investor Relations website, which contains our safe Harbor disclaimer. This conference call.

It may include forward looking statements subject to certain risks and uncertainties. In addition, during this call we will refer to certain non-GAAP financial measures. Please see our 8-K and trending schedules issued earlier. This morning for the reconciliations of these non-GAAP financial measures to GAAP with that I'll turn the call over to Mike.

Michael J. Cavanagh: Thanks, Marcy and good morning, everyone across the company our team is managing extremely well in a highly competitive and evolving marketplace.

Michael J. Cavanagh: Across the company, our team is managing extremely well in a highly competitive and evolving market. We have a clear vision for how we are going to compete now and into the future, combined with a sharp focus on execution. Equally important, our disciplined capital allocation strategy, coupled with our strong balance sheet, puts us in an enviable position relative to our peers to invest organically and aggressively in our sixth scaled and diverse growth business, namely Residential Broadband, Wireless, Business Services, Theme Parks, Studios, and Streaming. These businesses comprise more than 55% of the company's total revenue today, and that proportion will only grow over time.

Michael J. Cavanagh: We have a clear vision for how we're going to compete now and into the future combined with a sharp focus on execution.

Michael J. Cavanagh: Equally important our disciplined capital allocation strategy, coupled with our strong balance sheet puts us in an enviable position relative to our peers to invest organically and aggressively and our sixth scaled and diverse growth businesses, namely residential broadband wireless business services.

Michael J. Cavanagh: Theme Parks studios and streaming these.

These businesses comprise more than 55% of the company's total revenue today and that proportion will only grow over time.

Michael J. Cavanagh: In the first quarter, these businesses generated a high single-digit increase in revenue on a trailing 12-month basis, and when combined with our substantial share repurchase activity, enabled us to deliver double-digit adjusted EPS growth as well as significant growth in free cash flow per share. In fact, since 2018, we have grown adjusted EPS over 50% and free cash flow per share nearly 25%. Now, for some of the highlights of the first quarter, I'll start with broadband. The broadband market remains extremely competitive, particularly within the market for more price-conscious consumers. We continue to be intensely focused on segmentation, providing customers with options that meet both their lifestyle and their budget.

Michael J. Cavanagh: In the first quarter. These businesses generated a high single digit increase in revenue on a trailing 12 month basis.

Michael J. Cavanagh: And when combined with our substantial share repurchase activity.

Michael J. Cavanagh: Enabled us to deliver double digit adjusted EPS growth as well as significant growth in free cash flow per share.

Michael J. Cavanagh: In fact since 2018, we grew adjusted EPS over 50% and free cash flow per share nearly 25%.

Michael J. Cavanagh: Now for some of the highlights of the first quarter I will start with broadband.

Michael J. Cavanagh: The broadband market remains extremely competitive, particularly within the market for more price conscious consumers. We continue to be intensely focused on segmentation, providing customers with options that meet both their lifestyle and budget.

Michael J. Cavanagh: Importantly, we are striking the right balance between ARPU and subscribers, which is clearly reflected in our first quarter results, where, despite modest subscriber losses, ARPU grew by over four percent, driving mid-single-digit growth in residential broadband revenue to over $6.5 billion. We continue to see extremely encouraging broadband consumption trends across our base of 32 million customers. Usage on our network rose double digits year over year, with broadband-only households consuming over 700 gigabytes of data each month, and our broadband customers continue to value faster speeds. Today, over 70% of our residential subscribers receive speeds of 500 megabits per second or higher, and around one-third are getting a gig or more.

Michael J. Cavanagh: Importantly, we are striking the right balance between <unk> and subscribers, which is clearly reflected in our first quarter results, where despite modest subscriber losses ARPA grew over 4% driving mid single digit growth in residential broadband revenue to over $6 5 billion.

Michael J. Cavanagh: We continue to see extremely encouraging broadband consumption trends across our base of 32 million customers.

Michael J. Cavanagh: Usage on our network rose double digits year over year with broadband only households, consuming over 700 gigabytes of data each month.

Michael J. Cavanagh: And our broadband customers continue to value faster speeds today over 70% of our residential subscribers receive speeds of 500, megabits per second or higher and around one third are getting a gig or more.

Michael J. Cavanagh: We believe that consumers' expectations for their broadband experience, in terms of speed, reliability, security, and performance, will only increase over time. It is extremely important to us that our network upgrades stay well ahead of this demand. Our deployment of mid-splits doubled year over year and now covers 40% of the footprint.

Michael J. Cavanagh: We believe the consumers' expectations for their broadband experience in terms of speed reliability security and performance will only increase over time.

Michael J. Cavanagh: It is extremely important to us that our network upgrades stay well ahead of this demand our deployment of mid splits doubled year over year and now reached 40% of the footprint.

Michael J. Cavanagh: The investments we are making to increase capacity and incorporate multi-gigabit symmetrical speeds everywhere we offer service put us in a great position to capitalize on these very favorable consumer trends and, when combined with our rapid footprint expansion, set us up to gain market share and return to broadband subscriber growth over time. Turning to wireless, we increased our domestic customer lines by 21% year-over-year to nearly 7 million, yet with wireless penetration of our residential broadband customer base still only 11%, we have plenty of room to grow.

Michael J. Cavanagh: The investments, we are making to increase capacity and incorporate multi gigabit symmetrical speeds everywhere, we offer service put us in a great position to capitalize on these very favorable consumer trends and when combined with our rapid footprint expansion set us up to gain market share and returned to broadband subscriber growth.

Michael J. Cavanagh: Overtime.

Michael J. Cavanagh: Turning to wireless we increased our domestic customer lines by 21% year over year to nearly 7 million yet with wireless penetration of our residential broadband customer base still only 11% we have plenty of room to grow we continue to see the benefit of bundling broadband and mobile which decrease.

Michael J. Cavanagh: We continue to see the benefit of bundling broadband and mobile, which decreases churn and improves customer lifetime value. Our customers also benefit by being connected to our Wi-Fi network, which is the largest in the nation. In fact, 90% of all Xfinity mobile traffic is delivered over Wi-Fi, not cellular, and we are constantly adding new features to further differentiate the experience.

Michael J. Cavanagh: As churn and improves customer lifetime value.

Michael J. Cavanagh: Our customers also benefit by being connected to our Wi Fi network, which is the largest in the nation. In fact, 90% of all <unk> mobile traffic is delivered over Wifi not cellular and we are constantly adding new features to further differentiate the experience. The most recent example is our introduction of Wi Fi.

Michael J. Cavanagh: The most recent example is our introduction of Wi-Fi Boost, which enables any Xfinity mobile customer to experience speeds of up to a gig whenever they connect to our 23 million hotspots at no additional cost. Across our connectivity and platforms business, we're focused on profitably serving each segment of the market, from our premium and traditional customers who want fully featured products to more price-driven consumers. With regard to the latter, we are now introducing a new brand and product portfolio targeting the prepaid market that delivers high-quality, low-cost internet, mobile, and streaming TV products with simple, all-in pricing.

Michael J. Cavanagh: Boost which enables any xfinity mobile customer to experience speeds of up to a gig whenever they connect to our 23 million hotspots at no additional cost.

Michael J. Cavanagh: Across our connectivity and platforms business, we're focused on profitably serving each segment of the market from our premium and traditional customers who aren't fully featured products to more price driven consumers.

Michael J. Cavanagh: With regard to the ladder, we are introducing now a new brand and product portfolio targeting the prepaid market that delivers high quality low cost internet mobile and streaming television products with simple all in pricing.

Michael J. Cavanagh: Now, the internet and mobile will be particularly helpful to those Americans impacted by the end of ACP, bringing them another option for affordable, reliable connectivity and supplementing our Internet Essentials Program, which we offer to eligible households as part of our longstanding commitment to help close the digital divide in America.

Michael J. Cavanagh: Now Internet and mobile will be particularly helpful to those Americans impacted by the end of ACP, bringing them another option for affordable reliable connectivity and supplementing our Internet Essentials program, which we offer to eligible households, as part of our long standing commitment to help close the digital divide.

Michael J. Cavanagh: In America.

Michael J. Cavanagh: Turning to content and experiences, let's start with PARC. We continue to see strong underlying demand in both Hollywood and Japan, where healthy attendance and per-cap levels were once again driven by the success of Super Nintendo World. Building on our momentum, later this year, we're opening our newest Nintendo-themed land, Donkey Kong Country, which will increase the size of Super Nintendo World in Japan by 70%.

Michael J. Cavanagh: Turning to content and experiences let's start with parks.

Michael J. Cavanagh: We continued to see strong underlying demand in both Hollywood and Japan were healthy attendance and per cap levels were once again driven by the success of Super Nintendo World.

Michael J. Cavanagh: Building on our momentum later this year, we're opening our newest Nintendo themed land Donkey Kong country, which will increase the size of Super Nintendo World in Japan by 70%.

Michael J. Cavanagh: Switching gears to Orlando, we started to feel some pressure on attendance levels late in the first quarter, which tends to occur in tandem with the ebbs and flows of new attractions in the market. Right now, we happen to be lapping the multi-year surge in attendance from our opening of new attractions in previous periods, but we remain confident about our longer-term growth opportunities, especially as we look ahead to next year with the opening of Epic Universe. With three new hotels and five immersive worlds, featuring more than 50 attractions, entertainment, dining, and shopping experiences, it will be the most technologically advanced park in the world.

Michael J. Cavanagh: Our longer term growth opportunities, especially as we look ahead to next year with the opening of epic universe with three new hotels, and five immersive worlds featuring more than 50 attractions entertainment dining and shopping experiences it will be the most technologically advanced park in the world together with our.

Michael J. Cavanagh: Together with our three current gates in Orlando, EPIC will enable us to offer a full week's vacation experience to even more guests. Moving to studios, we're incredibly proud of our film team and our recent ranking as the number one global studio by Worldwide Box Office and winner of eight Academy Awards, including Best Picture for Christopher Nolan's Oppenheimer. On the back of our fantastic performance in 2023, the power of our studios continued this quarter with the theatrical release of Kung Fu Panda 4, which has grossed over $480 million in worldwide box office to date.

Michael J. Cavanagh: Three current gates in Orlando epic will enable us to offer a full week's vacation experience to even more guests.

Michael J. Cavanagh: Moving to studios, we're incredibly proud of our film team and our recent ranking as the number one global studio by worldwide box office and winner of eight Academy Awards, including Best Picture for Christopher Nolan Oppenheimer.

Michael J. Cavanagh: On the back of our fantastic performance in 2023, the power of our studios continued this quarter with the theatrical release of Kung Fu Panda, four which has grossed over $480 million in worldwide box office to date, and we have an exciting slate still ahead for the third year in a row where release more.

Michael J. Cavanagh: And we have an exciting slate still ahead. For the third year in a row, we'll release more movies than any other major studio, with The Fall Guy, an action thriller starring Ryan Gosling and Emily Blunt coming this May. Despicable Me 4, Illumination's newest installment of this heist-grossing animated franchise, as well as our adaptation of Twisters, both debuting in July, and Wicked, one of the most highly anticipated movies of 2024, coming in November.

Michael J. Cavanagh: <unk> than any other major studio with the fall Guy an action thriller starring Ryan Gosling and Emily Blunt coming this may Despicable me for illuminations newest installment of this highest grossing animated franchise as well as our adaptation of twisters, both to viewing in July and Wicked one.

Michael J. Cavanagh: Most highly anticipated movies of 2024 coming in November.

Michael J. Cavanagh: Finally, in media, we are successfully managing the segment as one business across linear and streaming. By providing the tens of millions of traditional pay TV subscribers as well as streamers with choice in how they engage with us, we continue to generate a significant audience for our programming, including big events like the Olympics, Sunday Night Football, and Big Ten, and top entertainment shows like Saturday Night Live and Law & Order.

Michael J. Cavanagh: Finally in media, we are successfully managing the segment as one business across linear and streaming by providing the tens of millions of traditional pay TV subscribers as well as streamers with choice in how they engage with US we continue to generate significant audience for our programming big events like the Olympics Sunday night.

Michael J. Cavanagh: Football Big 10 top entertainment shows like Saturday Night live and law and order with strong consumer demand for our content, we are well positioned to evolve with the changing market.

Michael J. Cavanagh: Our exclusively streamed NFL wildcard game was a big success this past quarter. We added and then retained even more new Peacock subscribers than we expected. Overall, people are staying with us to engage in a broad range of content, spending 90% of their time on the platform viewing non-sports programming. This includes scripted shows like Ted and reality shows like The Traitor, both of which ranked within Nielsen's Streaming Top 10, and our award-winning collection of films, like Oppenheimer, which premiered exclusively on Peacock in February and was the most-watched film across all streaming in its first seven days on the platform.

Michael J. Cavanagh: Our exclusively streamed NFL wild card game was a big success. This past quarter, we added and then retained even more new peacock subscribers than we expected overall people are staying with us to engage in a broad range of content spending 90% of their time on the platform viewing non sports <unk>.

Michael J. Cavanagh: <unk> this.

Michael J. Cavanagh: This includes scripted shows like Ted and reality shows like the traders both of which ranked within Nielsen streaming top 10, and our award winning collection of films like Oppenheimer, which premiered exclusively on Peacock in February and was the most watched film across all streaming in its first seven days on the platform.

Michael J. Cavanagh: Clearly, Peacock has been on a great trajectory since our launch four years ago, with 34 million paid subscribers, having grown 12 million year over year, and at a $10 RRP. Looking ahead, our content offering provides such a great value proposition that we should have some real pricing power over time. Of course, sports also play an important role in our media business, and that's especially true this year. Following the Kentucky Derby in May, we'll have the Paris Olympics for 17 nights this summer.

Michael J. Cavanagh: Clearly peacock has been on a great trajectory since our launch four years ago. We're at 34 million paid subscribers, having grown $12 million year over year and at a $10 ARPA.

Michael J. Cavanagh: Looking ahead, our content offering provides such a great value proposition that we should have some real pricing power over time.

Michael J. Cavanagh: Of course sports also play an important role in our media business and that's especially true. This year. Following the Kentucky Derby in May we will have the Paris Olympics for 17 nights. This summer with more programming hours on the NBC broadcast network than any previous Olympics and over 5000 hours of live coverage on Peacock.

Michael J. Cavanagh: With more programming hours on the NBC broadcast network than any previous Olympics and over 5,000 hours of live coverage on Peacock, the games are on track to generate the most advertising revenue in history with $1.2 billion in ad sales commitment. Right after the Olympics, we have the return of football, with Big Ten, Sunday Night Football, and the NFL's first ever Friday night opening game from Sao Paulo, streaming exclusively on Peacock. So, wrapping up, I'm really proud of the work that our teams across the company are doing. Together, we're executing at the highest level and positioning ourselves for growth in a challenging and dynamic market. So Jason, it's over to you.

Michael J. Cavanagh: The games are on track to generate the most advertising revenue in history with $1 $2 billion in AD sales commitments.

Michael J. Cavanagh: Right. After the Olympics, we have the return of football with Big 10 Sunday Night football and the NFL first ever Friday night opening game from Sao Paulo streaming exclusively on Peacock, So wrapping up im really proud of the work that our teams across the company are doing together, we're executing at the highest less.

Michael J. Cavanagh: <unk> and positioning ourselves for growth in a challenging and dynamic marketplace. So Jason over to you.

Jason S. Armstrong: Thanks, Mike and good morning, everyone I'll start with our consolidated results on slide four total revenue increased 1% to $30 1 billion and within this our six major growth drivers generated nearly $17 billion in revenue well over half of total company revenue and once again has shown steady and consistent growth at a high single.

Jason S. Armstrong: Thanks, Mike, and good morning, everyone. I'll start with our consolidated results on slide four. Total revenue increased 1% to $30.1 billion, and within this, our six major growth drivers generated nearly $17 billion in revenue, well over half of total company revenue, and once again, have shown steady and consistent growth at a high single-digit rate over the past 12 months. While EBITDA was in line with the prior year's level at $9.4 billion, we generated a high level of free cash flow this quarter at $4.5 billion, and we returned $ And over the last 12 months, we have reduced our share count by nearly 6%, contributing to our adjusted EPS growth in the quarter of 14%.

Michael J. Cavanagh: <unk> digit rate over the past 12 months.

Michael J. Cavanagh: While EBITDA was in line with prior year's level at $9 4 billion, we generated a high level of free cash flow. This quarter at $4 5 billion and we returned $3 6 billion of capital to shareholders, including $2 4 billion in share repurchases and over the last 12 months, we have reduced our share count by nearly 6% contributing to our <unk>.

Michael J. Cavanagh: Adjusted EPS growth in the quarter of 14%.

Michael J. Cavanagh: Now, let's go through our business results starting on slide five with connectivity and platforms note that our largest foreign exchange exposure is to the British pound, which was up 4% year over year. So as usual in order to highlight the underlying performance of the connectivity and platform business I will refer to year over year growth on a constant currency basis.

Michael J. Cavanagh: Revenue for total connectivity and platforms was flat at 23 billion.

Jason S. Armstrong: Now let's go through our business results, starting on slide five, with connectivity and platform. Note that our largest foreign exchange exposure is to the British Pound, which was up 4% year-over-year. So, as usual, in order to highlight the underlying performance of the connectivity and platforms business, I will refer to year-over-year growth on a constant currency basis. Revenue for total connectivity and platforms was flat at $20.3 billion, reflecting strong growth in connectivity revenues offset mainly by declines in video revenue.

Michael J. Cavanagh: Reflecting strong growth in connectivity revenues offset mainly by declines in video revenue residential connectivity revenue grew 7% driven by 4% growth in domestic broadband 13% growth in domestic wireless and 19% growth in international connectivity, while business services connectivity revenue grew five.

Michael J. Cavanagh: Percent.

Michael J. Cavanagh: In domestic broadband our revenue growth was driven by very strong <unk>, which increased four 2% and came in a bit above our historical range.

Michael J. Cavanagh: Our team is doing an excellent job of customer segmentation, while balancing rate and volume and we are encouraged by the positive consumer behavior trends, we see in our base of 32 million customers bandwidth requirements and engagement are increasing at a rapid clip while the vast majority of our customers are now on speeds of 500 megabits or higher.

Jason S. Armstrong: Residential connectivity revenue grew 7%, driven by 4% growth in domestic broadband, 13% growth in domestic wireless, and 19% growth in international connectivity, while business services connectivity revenue grew 5%. For domestic broadband, our revenue growth was driven by very strong ARPU, which increased 4.2% and came in a bit above our historical range. Our team is doing an excellent job of customer segmentation while balancing rate and volume, and we are encouraged by the positive consumer behavior trends we see in our base of 32 million customers.

Michael J. Cavanagh: And adopting advanced tiers of service like XY complete at a higher rate.

Michael J. Cavanagh: But as Mike mentioned it continues to be a very competitive environment and we lost 65000 subscribers in the first quarter. Following the loss of 34000 subscribers in the fourth quarter of 2023.

Michael J. Cavanagh: As we sit here right now we do not see this trend improving in the near term, we expect churn could be elevated given the end of ACP, which is only fully funded through April and partially funded through may we remain in constant communication with our ACP customers and will continue to be diligent in helping this customer segment stay connected through various options.

Jason S. Armstrong: Bandwidth requirements and engagement are increasing at a rapid clip, while the vast majority of our customers are now on speeds of 500 megabits or higher and adopting advanced tiers of service like XFLAT complete at a higher rate. But, as Mike mentioned, it continues to be a very competitive environment. And we lost 65,000 subscribers in the first quarter, following the loss of 34,000 subscribers in the fourth quarter of 2023. As we sit here right now, we do not see this trend improving in the near term.

Michael J. Cavanagh: Whether that's our successful Internet essentials program or our new prepaid now offerings as Mike described in.

Michael J. Cavanagh: In addition, I want to remind you that the second quarter also tends to experience seasonal headwinds while.

Michael J. Cavanagh: While it is a competitive market, especially for the price driven segment. We will continue to compete aggressively yet and are financially balanced way and expect to drive healthy broadband revenue growth through growth in <unk>, which we expect to remain well within our historical range of 3% to 4% growth even as we manage through the ACP transition.

Michael J. Cavanagh: Turning to domestic wireless revenue growth of 13% was due to higher service revenue driven by a 21% year over year increase in our customer lines ending the quarter at $6 9 million in total, including the 289000 lines. We just added in the quarter.

Jason S. Armstrong: We expect churn could be elevated given the end of ACP, which is only fully funded through April and partially funded through May. We remain in constant communication with our ACP customers and will continue to be diligent in helping this customer segment stay connected through various options, whether that's our successful Internet Essentials program or our new prepaid now offerings, as Mike described. In addition, I want to remind you that the second quarter also tends to experience seasonal headwinds.

Michael J. Cavanagh: We are consistently in the marketplace testing new offers including some recent new pricing plans targeted at a multiline customers the new now mobile product as well as our buy one get one line offer.

Michael J. Cavanagh: We continue to see significant opportunity in wireless to increase the penetration of our domestic residential broadband customer base, which currently sits at 11% and to sell additional lines per account.

Michael J. Cavanagh: International connectivity revenue reflects strong growth in broadband revenue driven by solid <unk> growth as well as growth in wireless due to additional customer lines and also higher <unk>.

Jason S. Armstrong: Well, it's a competitive market, especially for the price-driven segment. We will continue to compete aggressively, yet in a financially balanced way, and expect to drive healthy broadband revenue growth through growth in our..., which we expect to remain well within our historical range of 3-4% growth even as we manage through the ACP transition. Turning to domestic wireless, revenue growth of 13% was due to higher service revenue, driven by a 21% year-over-year increase in our customer lines, ending the quarter at $6.9 million in total, including the 289,000 lines we just added in the quarter. We are consistently in the marketplace testing new offers, including some recent new pricing plans targeted at multi-line customers, the new Now Mobile product, as well as our Buy One, Get One line-off.

Michael J. Cavanagh: For business services connectivity, we generated 5% revenue growth driven by higher <unk> and small business and broader growth in both customers and additional solutions for mid market and enterprise.

Michael J. Cavanagh: The SMB market has gotten more competitive, but we will aggressively defend our position and similar to this quarter, we will grow revenue by increasing <unk> driven by higher adoption of additional products like mobile security edge connection pro and Wi Fi pro and through targeted rate opportunities. Meanwhile, our momentum continues to build in.

Michael J. Cavanagh: Mid market and enterprise as our expanding capabilities and managed services wide area networking and cyber security have led to increasing customer wins and the expansion of existing relationships. The.

Michael J. Cavanagh: The strong growth in our connectivity businesses was offset by a decline in video and other revenue.

Michael J. Cavanagh: The decline in our video revenue was driven by continued customer losses and slower domestic ARPA growth versus last year and the lower other revenue reflects continued customer losses and wireline voice.

Michael J. Cavanagh: As I mentioned earlier connectivity and platforms total EBITDA increased one 3% with margin up 50 basis points, reflecting a decline in overall expenses driven by the mix shift to our high margin connectivity businesses combined with a continued focus on expense management, while margins for our domestic legacy cable business.

Jason S. Armstrong: We continue to see significant opportunities in wireless to increase the penetration of our domestic residential broadband customer base, which currently sits at 11%, and to sell additional lines per account. International connectivity revenue reflects strong growth in broadband revenue driven by solid ARPU growth, as well as growth in wireless due to additional customer lines and also higher ARPU. For business services connectivity, we generated 5% revenue growth driven by higher ARPU in small business and broader growth in both customers and additional solutions for mid-market and enterprise.

Michael J. Cavanagh: <unk> improved even more our international business was impacted by a reclassification of some expense from capitalized software to operating expenses, creating a tough comparison to last year, we will see a similar trend until we start to lap. This change at the end of this year.

Michael J. Cavanagh: Note that absent this change EBITDA growth in the first quarter would have been about a point higher and our margin improvement would have been about 50 basis points higher.

Michael J. Cavanagh: While this change increased our operating expenses. This quarter, there was an offsetting decline in connectivity and platforms capital, resulting in a neutral impact on net cash flow, which was up 5% this quarter.

Jason S. Armstrong: The SMB market has become more competitive, but we'll aggressively defend our position, and similar to this quarter, we'll grow revenue by increasing ARPU, driven by higher adoption of additional products like Mobile, Security Edge, Connection Pro, and Wi-Fi Pro and through targeted rate opportunities. Meanwhile, our momentum continues to build in mid-market and enterprise, as our expanding capabilities in managed services, wide area networking, and cybersecurity have led to increasing customer wins and the expansion of existing relationships.

Michael J. Cavanagh: Breaking out our connectivity and platforms EBITDA results further residential EBITDA grew one 1% with margins improving 60 basis points to 38, 3%.

Michael J. Cavanagh: And business services EBITDA growth was lower than our typical mid single digit level at two 6% with margins declining 160 basis points to 56, 7%. These.

Michael J. Cavanagh: These results include significant investments in the enterprise space, including in sales and fulfillment that we are making to drive future revenue growth business services generate well over $5 billion in annual EBITDA, which is margin accretive and we expect it to continue to be a material contributor to overall connectivity and platforms growth this year and over.

Jason S. Armstrong: The strong growth in our connectivity businesses was offset by a decline in video and other revenue. The decline in our video revenue was driven by continued customer losses and slower domestic ARPU growth versus last year, and the lower other revenue reflects continued customer losses in wireline voice.

Michael J. Cavanagh: The longer term.

Michael J. Cavanagh: Now, let's turn to content and experiences on slide six overall revenue increased 1% to $10 4 billion and EBITDA decreased 7% to $1 5 billion let's.

Jason S. Armstrong: As I mentioned earlier, Connectivity and Platform's total EBITDA increased 1.3% with a margin of 50 basis points, reflecting a decline in overall expenses driven by the mixed shift to our high-margin connectivity businesses combined with a continued focus on expense management. While margins for our domestic legacy cable business improved even more, our international business was impacted by a reclassification of some expenses from capitalized software to operating expenses, creating a tough comparison to last year. We will see a similar trend until we start to notice this change at the end of this year.

Michael J. Cavanagh: Let's take a closer look at the details.

Michael J. Cavanagh: Starting with theme parks revenue increased 2%, while EBITDA decreased 4% for the quarter. These results.

Michael J. Cavanagh: <unk> reflect the negative impact of currency as the Japanese yen is at a 34 year low against the dollar.

Michael J. Cavanagh: Adjusting the results to exclude the impact of foreign currency Parks' revenue would have increased 5% and EBITDA would have been flat compared to last year's first quarter.

Michael J. Cavanagh: We had strong underlying growth at our park in Osaka, which continues to benefit from demand for Super Nintendo World. We're also seeing growth in Hollywood. Despite lapping the opening of Super Nintendo World in that park during the quarter.

Michael J. Cavanagh: <unk> results were relatively flat in what is typically a seasonally light quarter and Orlando results were below last year, but still roughly in line with pre pandemic levels. We are seeing some pullback from the unprecedented attendance we realized immediately after the pandemic, which we believe is driven by the timing of new attraction openings and some increased comp.

Jason S. Armstrong: I'll note that absent this change, EBITDA growth in the first quarter would have been about a point higher, and our margin improvement would have been about 50 basis points higher. While this change increased our operating expenses this quarter, there was an offsetting decline in connectivity and platform capital, resulting in a neutral impact on net cash flow, which was up 5% this quarter. Breaking out our connectivity and platforms EBITDA results further, Residential EBITDA grew 1.1%, with margins improving 60 basis points to 38.3%, and Business Services EBITDA growth was lower than our typical mid-single-digit level at 2.6%, with margins declining 160 basis points to 56.7%.

Michael J. Cavanagh: Petition from other entertainment venues, notably cruises.

Michael J. Cavanagh: At media, which includes our TV networks, and Peacock revenue increased 4% as peacock strong growth of 54% more than offset a low single digit decline at our linear networks.

Michael J. Cavanagh: Distribution revenue growth of 7% was driven by Peacock with subscription revenue growth of 68% powered by the 55% year over year increase in our paid subscriber base to $34 million, including 3 million net adds in the first quarter.

Michael J. Cavanagh: We are really pleased with peacocks trajectory, we started the year with an incredibly successful NFL wild card game, which resulted in a nice lift to paid subs, but even more important is how our broad content offering enabled strong consumer acquisition retention and engagement.

Jason S. Armstrong: These results include significant investments in the enterprise space, including in sales and fulfillment that we are making to drive future revenue growth. Business Services generates well over $5 billion in annual EBITDA, which is margin accretive, and we expect it to continue to be a material contributor to overall connectivity and platform growth this year and over the longer term. Now, let's turn to content and experiences on slide six. Overall, revenue increased 1% to $10.4 billion, and EBITDA decreased 7% to $1.5 billion.

Michael J. Cavanagh: We've had success across a broad range of content during the quarter, including films moving into our pay one window like Oppenheimer. The most watched pay one film and peacocks history, and the holdovers as well as successful original is including Apple's never fall, Ted and the second season of the traders.

Michael J. Cavanagh: Looking ahead, we will continue to be focused on retention, particularly in the second quarter as we look forward to the second half of the year, we would have a substantial amount of acquisition oriented content lined up.

Jason S. Armstrong: Let's take a closer look at the details. Starting with theme parks, revenue increased 2%, while EBITDA decreased 4% for the quarter. These results reflect the negative impact of currency, as the Japanese yen is at a 34-year low against the dollar.

Michael J. Cavanagh: This is consistent with <unk> historical trends and this year is expected to be driven by the Olympics. This summer and the NFL and Big 10, returning in the fall. In addition to the steady stream of films landing on our pay one window as well as upcoming originals.

Michael J. Cavanagh: Finally, domestic advertising revenue was flat in the quarter, reflecting a stable overall market with strong advertising growth at Peacock offset by lower advertising revenue at our linear networks.

Jason S. Armstrong: Adjusting the results to exclude the impact of foreign currency, Park's revenue would have increased 5%, and Iwata would have been flat compared to last year's first quarter. We had strong underlying growth at our park in Osaka, which continues to benefit from demand for Super Nintendo World. We're also seeing growth in Hollywood, despite lapping the opening of Super Nintendo World in that park during the quarter. Beijing results were relatively flat in what is typically a seasonally light quarter, and Orlando results were below last year, but still roughly in line with pre-pandemic levels.

Michael J. Cavanagh: Media EBITDA decreased 6%, reflecting the revenue pressure on our linear networks, partially offset by continued year over year improvement in Peacock EBITDA losses, even with the addition of the wildcard rights costs and.

Michael J. Cavanagh: And we expect to see on average even better year over year improvement for Peacock in the coming quarters.

Michael J. Cavanagh: At studios the revenue decline of 7% reflects lower content licensing, which was impacted by the timing of deliverables related to our film licensing business, which was partially offset by a modest increase in theatrical revenue driven by the strong performance of Kung Fu Panda four at the box office this quarter studios.

Jason S. Armstrong: We are seeing some pullback from the unprecedented attendance we realized immediately after the pandemic, which we believe is driven by the timing of new attraction openings and some increased competition from other entertainment venues, notably cruises. At Media, which includes our TV networks and Peacock, revenue increased 4% as Peacock's strong growth of 54% more than offset a low single-digit decline at our linear network. Distribution revenue growth of 7% was driven by Peacock, with subscription revenue growth of 68%, powered by the 55% year-over-year increase in our paid subscriber base to 34 million, including 3 million net ads in the first quarter. We are really pleased with Peacock's trajectory.

Michael J. Cavanagh: EBITDA declined 12%, reflecting the difficult comparison to last year's film slate, including the highly successful carryover title plus in boots last wish and the timing of licensing deals that film.

Speaker Change: Now I'll wrap up with free cash flow and capital allocation on slide seven.

Speaker Change: As I mentioned previously we generated $4 5 billion and free cash flow this quarter and we achieved this even with the significant investments we continue to make to support our growth drivers specifically, our $3 3 billion in total capital spending this quarter incorporates our efforts in expanding our footprint and further strengthening our domestic broadband network scale.

Speaker Change: <unk>, our streaming business and supporting the continued build of our epic Universe theme Park ahead of its 2025 openings.

Speaker Change: And working capital was $940 million drag for the quarter, a significant improvement over last year, a lot of which is timing related.

Jason S. Armstrong: We started the year with an incredibly successful NFL wildcard game, which resulted in a nice lift in paid subscribers. But even more important was how our broad content offering enabled strong consumer acquisition, retention, and engagement. We've had success across a broad range of content during the quarter, including films moving into our pay-one window like Oppenheimer, the most watched pay-one film in Peacock's history, and The Holdovers, as well as successful originals including Apple's Never Fall, Ted, and the second season of The Traitor. Looking ahead, we'll continue to be focused on retention, particularly in the second quarter.

Speaker Change: Turning to return of capital for the quarter. We returned a total of $3 6 billion to shareholders an increase of 13% year over year. This includes share repurchases of $2 4 billion and dividend payments of $1 2 billion.

Speaker Change: Putting it all together in the last 12 months, we've returned over $16 billion in capital to shareholders between share repurchases and dividends, reducing our share count by nearly 6% at the same time, we invested nearly $17 billion back into our businesses in the form of capital and working capital carefully and consistently balancing.

Speaker Change: <unk> in our businesses for growth returning significant capital to shareholders and doing so with a very strong balance sheet, which facilitates this consistency through a variety of operating environments.

Jason S. Armstrong: As we look forward to the second half of the year, we will have a substantial amount of acquisition-oriented content lined up. This is consistent with Peacock's historical trends, and this year is expected to be driven by the Olympics this summer and the NFL and Big Ten returning in the fall, in addition to the steady stream of films landing on our pay-one window, as well as originals. Finally, domestic advertising revenue was flat in the quarter, reflecting a stable overall market with strong advertising growth at Peacock, offset by lower advertising revenue at our linear network. Media EBITDA decreased 6%, reflecting revenue pressure on our linear networks, partially offset by continued year-over-year improvement in PCOC EBITDA losses, even with the addition of the wildcard rights.

Speaker Change: Now, let me turn it over to Marcy for Q&A.

Marcy: Thanks, Jason operator, let's open up the call for Q&A. Please.

Marcy: Thank you we will now begin the question and answer session.

Marcy: If you have a question. Please press Star then the number one on your Touchtone phone.

Marcy: If you wish to be removed from the queue. Please press star and the number two.

Marcy: If youre using a speakerphone you may need to pick up the handset first before pressing the numbers. Once again, if there are any questions Press Star then the number one on your Touchtone phone.

Marcy: Our first question today is coming from Ben Swinburne from Morgan Stanley. Your line is now live.

Benjamin Daniel Swinburne: Thanks, Good morning.

Benjamin Daniel Swinburne: Two questions maybe for Dave on the cable side could you talk maybe bigger picture about customer segmentation, particularly some of the new efforts around prepaid and then now brand.

Benjamin Daniel Swinburne: As well as some of the speed boost you've done and just how you think about that impacting the business over time, and then if you're willing to give us a little more on how you are able to deliver ARPA growth.

Jason S. Armstrong: And we expect to see, on average, even better year-over-year improvement for Peacock in the coming quarters. At studios, the revenue decline of 7% reflects lower content licensing, which was impacted by the timing of deliverables related to our film licensing, which was partially offset by a modest increase in theatrical revenue driven by the strong performance of Kung Fu Panda 4 at the box office this quarter. Studio's EBITDA declined 12%, reflecting the difficult comparison to last year's film slate, including the highly successful carryover title, Puss in Boots: Last Wish, and the timing of licensing deals at film.

David N. Watson: Within the historical range through the CP transition just given obviously the subsidy is going away.

Speaker Change: And then I think for Jason.

David N. Watson: We expect EBITDA growth this year free cash flow growth. This year, you guys had a nice free cash flow first quarter.

Jason S. Armstrong: I guess I would've expected buybacks to grow as well year on year and as you point out on that last slide.

Jason S. Armstrong: Trailing 12 months 11, 5 billion, two and a half in the first quarter. So it looks like it's slowing a bit. So I was wondering if you could comment if there's anything that's changed.

Jason S. Armstrong: The capital allocation leverage math that we should be thinking about with Comcast this year. Thanks.

Speaker Change: Thanks, everyone.

Speaker Change: Hey, Ben Dave So, let me start with segmentation and a little bit more context on now so stepping back our segmentation strategy is really key starts with.

Jason S. Armstrong: Now I'll wrap up with free cash flow and capital allocation on slide seven. As I mentioned previously, we generated $4.5 billion in free cash flow this quarter, and we achieved this even with the significant investments we continue to make to support our growth drivers. Specifically, our $3.3 billion in total capital spending this quarter incorporates our efforts in expanding our footprint and further strengthening our domestic broadband network, scaling our streaming business, and supporting the continued build of our Epic Universe Theme Park ahead of its 2025 opening.

David N. Watson: At the beginning point always for us is premium and traditional broadband customers.

Jason S. Armstrong: Focus there and invested in terms of better network better products around providing a better service for the premium segment.

Jason S. Armstrong: We have consistently competed for.

Jason S. Armstrong: All segments and as we break it down.

Jason S. Armstrong: The.

Jason S. Armstrong: Focused where we think the main point is where broadband is going.

Jason S. Armstrong: Broadband is going is the engagement and so our focus is to continue to deliver multi gig symmetrical and build towards that point.

Jason S. Armstrong: And working capital was a $940 million drag for the quarter, a significant improvement over last year, a lot of which is timing-related. Turning to return of capital, for the quarter, we returned a total of $3.6 billion to shareholders, an increase of 13% year over year. This included share repurchases of $2.4 billion and dividend payments of $1.2 billion.

Jason S. Armstrong: And do this for <unk>.

Jason S. Armstrong: Alrighty of Internet options so.

Jason S. Armstrong: Are the <unk>.

Jason S. Armstrong: Proof is in the pudding in terms of segmentation in that 70% of our Hs Hs the only customers receive speeds of 500 megabits per second or higher than a third of our customers <unk> customers received gig plus.

Jason S. Armstrong: Never has been one size fits all start there and the focus of premium but there is currently a lot of activity at the low end of the market.

Marci Ryvicker: Putting it all together, in the last 12 months, we've returned over $16 billion in capital to shareholders between share repurchases and dividends, reducing our share count by nearly 6%. At the same time, we invested nearly $17 billion back into our businesses in the form of capital and working capital, carefully and consistently balancing reinvesting in our businesses for growth, returning significant capital to shareholders, and doing so with a very strong balance sheet, which facilitates this consistency through a variety of operating environments.

Jason S. Armstrong: And we've not been as competitive in this space, we've had great products.

Jason S. Armstrong: And several options, but we in the prepaid area in particular, we believe there is an opportunity to improve our effectiveness there and so thus now and now there are three components of now one is prepaid broadband which by the way we've had.

Jason S. Armstrong: Prepaid broadband for some time, we've just approved upon the value proposition there.

Marci Ryvicker: Now, I will turn it over to Marci for Q&A. Thanks, Jason. Operator, let's open up the call for Q&A, please. Thank you. We will now begin the question and answer session. If you have a question, please press star, then the number one on your touchtone phone. If you wish to be removed from the queue, please press star and the number 2. And if you're using a speakerphone, you may need to pick up the handset first before pressing the number.

Jason S. Armstrong: So, it's our new prepaid broadband.

Jason S. Armstrong: The update and then second we have prepaid now mobile which is new and then we feel that it's positioned for an alternative to fixed wireless and that just a lot of activity. There. The focus there is no credit checks it's easy.

Jason S. Armstrong: No contract and on an everyday price point, so not a lot of movement in terms of just a competitive value based price point so.

Operator: Again, if there are any questions, press star, then number one on your touchtone phone. Our first question today is coming from Ben Swinburne from Morgan Stanley. Your line is now live. Thanks. Good morning.

Speaker Change: Yes, it did.

Jason S. Armstrong: Time, we're doing now is obviously there is a good alternative to ACP and where that goes so.

Jason S. Armstrong: Early to talk about any progress, but we're real pleased with the positioning of the product.

Jason S. Armstrong: For the income constrained segment of the market.

Benjamin Daniel Swinburne: Two questions, maybe for Dave on the cable side, could you talk a little bit about the bigger picture about customer segmentation, particularly some of the new efforts around prepaid and the Now brand, as well as some of the speed boosts you've done and just how you think about that impacting the business over time? And then if you're willing to give us a little more on how you are able to deliver ARPU growth. You know, within the historical range through this ACP transition, just given, obviously, these subsidies are going away.

Jason S. Armstrong: We've had now TV for some time and traction there so it's a standalone product suite.

Speaker Change: Very good about that.

Speaker Change: On <unk>, yes.

Speaker Change: This is a strength that we've had we've been balancing.

Speaker Change: <unk> growth.

Jason S. Armstrong: Long with which share volume for a very long time, so feel good about this quarter came in very strong at four 2% a bit above the historical 3% to 4% range. It's a very competitive marketplace to say the least and we're just striking the right balance we think in <unk>.

Jason S. Armstrong: Volume and rate.

David N. Watson: And then I think for Jason, you know, we expect EBITDA growth this year, free cash flow growth this year, and you guys had a nice free cash flow first quarter. I guess I would have expected buybacks to grow as well year on year. And as you point out on that last slide, you know, trailing 12 months, 11 and a half billion, two and a half in the first quarter. So it looks like it's slowing down a bit. So just wondering if there's anything that's changed on sort of the capital allocation leverage math that we should be thinking about with Comcast this year. Thanks, everyone. Hey Ben, Dave.

Jason S. Armstrong: Our approach is reasonable rate increase.

Jason S. Armstrong: The teams have managed this well.

Jason S. Armstrong: Leading to rate yield results that exceeded our expectations a bit but also it goes back to the first point, we're segmenting the marketplace.

Jason S. Armstrong: And tailoring product approaches that meet each specific segment. So starts at the high end that I've talked about and very focused there and the results that I've talked about so that's the starting point, but when you look at our long standing approach to pricing and packaging.

Jason S. Armstrong: We're going to compete for every segment and it's really focused though where the market's going and making sure that in the long run as the overall usage goes up and to me that that is the main point you have double digit increases in terms of overall broadband consumption.

David N. Watson: So let me start with segmentation and a little bit more context. So stepping back, you know, our segmentation strategy is really key. It starts with the beginning point for us always being premium and traditional broadband customers. We've focused there and invested in terms of better networks, better products around providing a better service for the premium segment. And we have, though, consistently competed for all segments.

Jason S. Armstrong: You have lots of customers a lot of interest in our high end of our portfolio and strength and a ubiquitous reliable great network that can stand up for every segment.

Jason S. Armstrong: But power through every application that is there so I think that.

Jason S. Armstrong: For us pleased with <unk> and I think we can muscle through this ACP thing and feel good about.

Jason S. Armstrong: The guidance that we've been giving that 3% to 4% historical range. This is Brian I just wanted to just underscore that last point that Dave was making as you look with a longer lens, which I hope the company tries to do.

David N. Watson: And as we break it down, you know, we've focused on where we think the main point is where broadband is going. And where broadband is going is in the engagement. And so our focus is to continue to deliver multi-gigabit symmetrical and build towards that point. And we're not as competitive in this space. We've had great products, you know, and several options, but we, in the prepaid area, in particular, believe there is an opportunity to improve our effectiveness there. And so, thus, now, and now there are three components of now.

Brian L. Roberts: We just even yesterday, we're looking at our technology roadmap internally and seeing some demonstrations of innovation, it's inspiring and exciting.

Jason S. Armstrong: To think about what broadband will actually help you do in the next five to 10 years as a consumer and as a business.

Jason S. Armstrong: And it's kind of in some levels unimaginable.

Jason S. Armstrong: A lot of discussion about AI, but so much happening.

Jason S. Armstrong: In the entertainment sector sports sector.

Jason S. Armstrong: And also in the health care sector, and then things were not even talking about and so our strategy is pretty simple we put having now now strategy to help consumers with a super easy on you.

David N. Watson: One is prepaid broadband, which, by the way, we've had prepaid broadband for some time, but we've just approved the value proposition there. So, it's our new prepaid broadband update. And second, we have prepaid now mobile, which is new, and we feel that it's positioned for an alternative to fixed wireless, and there is just a lot of activity there. The focus there is no credit checks.

Jason S. Armstrong: It's all there.

Jason S. Armstrong: In the prepaid market.

Jason S. Armstrong: But the main strategy has always been to have the superior product in the market with fantastic service and constant innovation and do it in a capital way, where our investment is consistent and within the guidelines that we've previously talked about all that's happening and we're making great inroads on that end.

David N. Watson: It's easy. It's got no contract, and it's at an everyday price point. So, not a lot of movement in terms of just a competitive value-based price point. So, at the time, you know, we're doing now, obviously, this is a good alternative to ACP, and where that goes, so early to talk about any progress, but we're really pleased with the positioning of the Now product for the income-constrained segment of the market. We've had Now TV for some time now, and we have traction there. So, it's a standalone product suite. I feel very good about that. Unknown Attendee on ARPU

Jason S. Armstrong: If I had to pick one number this quarter that excites me it was a double digit.

Jason S. Armstrong: Growth of bits per home, which is showing that usage for whatever it is gaming.

Jason S. Armstrong: The multi screens.

Jason S. Armstrong: Ever and then the actual high definition, becoming even higher definition overtime with the quality of the picture so.

Jason S. Armstrong: Hopefully all of that is useful and we're pretty pleased with how the team is executing Jason yeah, great. Thanks, So just to round that out then.

Jason S. Armstrong: You think your question specifically on <unk> and how do you go through the Ace ACP cycle and have confidence in ARPA growth I think all of these points relevant and valid number one we continue to see usage grow at a rapid rate. So the value that the consumer is getting is higher let's say tailwind in general for ARPA growth I think number two is segmentation that Dave has talked about we see a lot of competition.

David N. Watson: You know, this is a strength that we've had. We've been balancing ARPU growth along with share volume for a very long time. So, I feel good about this quarter, which came in very strong at 4.2%, a bit above the historical 3 to 4% range.

Jason S. Armstrong: In a certain segment of our base the value conscious segment of our base, but segmentation allows you to keep that from seeping into other segments of the base and the team has done a nice job executing their final thing I'd point out is as we said ACP customers who've got above a $1 4 million in our base that will need to manage through this as very similar though if you think about how this business is wired.

David N. Watson: You know, it's a very competitive marketplace, to say the least, and we're just striking the right balance, we think, in volume and rate. And our approach is, you know, reasonable rate increases. The teams have managed this well, leading to rate yield results that have exceeded our expectations a bit. But also, it goes back to the first point.

Jason S. Armstrong: Dave and his team its promotional roll offs. This is something we are dealing with every single quarter. How do you navigate a base of customers, it's on promotion and roll them into new rate plans and keep them as customers. So this is very much what the cable business is wired to do on buybacks Ben I would go back over the last few years, we've had a very consistent.

David N. Watson: You know, we're segmenting the marketplace and tailoring product approaches that meet each, you know, specific segment. So, it starts with the high end that I've talked about, and it's very focused there, and the results that I've talked about. So, that's the starting point.

Jason S. Armstrong: Capital allocation strategy, starting with reinvesting in our business layered into protecting the balance sheet, we really like our current credit rating and have committed to.

Jason S. Armstrong: Metrics that are associated with the credit rating as <unk> seen and as you as you pointed out very strong free cash flow last year in expectation for similar this year as you mentioned allows for substantial share repurchase activity. So since we restarted the buyback in 2021, we bought back over 15% of our share count. If you look at the last year, we bought back over six.

David N. Watson: You have double-digit increases in terms of overall broadband consumption. You have lots of customers, a lot of interest in the high end of our portfolio, and strength in a ubiquitous, reliable, great network that can stand up for every segment but power through every application that is there. So, I think, you know, for us, we're pleased with ARPU, and I think we can, you know, muscle through this ACP thing and feel good about the guidance that we've been giving, that three to four percent historical range. This is Brian.

Jason S. Armstrong: Our share count so both very strong metrics I would point out at the tail end of last year, we were pretty clear in the third quarter that we were going to accelerate the buyback anticipating minimum floor Hulu proceeds which came in at the very end of last year and that's an advance of more full proceeds for full value. This year, but we do get a minimum floor.

Jason S. Armstrong: Last year, and hence accelerated the buyback in <unk> and <unk> to $3 5 billion.

Speaker Change: And I'll just come in on the back of the question about any changes in how we think about capital allocation I think Jason and team.

Speaker Change: Carrying on a phenomenal tradition I've been here now close to 10 years and I think the.

Brian L. Roberts: I just want to underline that last point that Dave was making. As you look with a longer lens, which I hope the company tries to do, you know, we and we just even yesterday, we're looking at our technology roadmap internally and seeing some demonstrations of innovation. It's inspiring and exciting to think about what broadband will actually help you do in the next five, 10 years as a consumer and as a business.

Speaker Change: The idea of <unk>.

Jason S. Armstrong: Taking our well generated capital across our businesses and first and foremost investing them back in the business with a very long term view of what the future can be.

Jason S. Armstrong: As expected return, whether that's the parks business, whether that's the broadband network, whether that's streaming.

Jason S. Armstrong: Whether it's just brought innovation I think it's in our DNA at this place to try to figure out ways to invest wisely for the future while at the same time, maintaining a very strong balance sheet and we like the way the balance sheet is set up when you go through these long.

Brian L. Roberts: And it's kind of, on some levels, unimaginable, you know, a lot of discussion about AI, but so much happening, you know, in the entertainment sector, the sports sector, and also in the healthcare sector, and then things we're not even talking about.

Jason S. Armstrong: Long arcs of change across industries with disruption. It allows you to sleep better at night, knowing the strength the balance sheet, we have and allows us to continue making those earlier investments and then so to do those two things together with the very substantial interest on the part of the management team and the fact that we've done.

Brian L. Roberts: And so our strategy is pretty simple. We put this now strategy in place to help consumers with a super easy on, you know, it's all there, in a prepaid market. But the main strategy has always been to have the superior product in the market with fantastic service and constant innovation, and do it in a capital way where our investment is consistent and within the guidelines that we've previously talked about. All that's happening, and we're making great inroads on that, and if I had to pick one number this quarter that excites me, it would be the double-digit growth of bits per home, which is, you know, So hopefully, all that's useful, and we're pretty pleased with how the team's executing. Jason?

Jason S. Armstrong: It just get lots of capital returned to shareholders.

Jason S. Armstrong: Not many companies are inclined to manage those three priorities.

Jason S. Armstrong: As much as we are and I can commit that thats, where our head is as we look forward to the next 10 years ahead.

Speaker Change: Thanks, Eric.

Speaker Change: Operator, we're ready for the next question.

Speaker Change: Thank you. Your next question is coming from Craig Moffett from Oppenheimer. Your line is now live.

Craig Eder Moffett: Hi, two questions about broadband if I could.

Craig Eder Moffett: Firstly.

Craig Eder Moffett: You talked about how your broadband business sorry, your wireless business is helping broadband churn I wonder if you could just talk a little bit more about that.

Craig Eder Moffett: How you how first can you put some numbers around the churn reduction that you see when you when a customer bundled broadband and wireless together, but.

Craig Eder Moffett: More importantly, how do you think about wireless.

Craig Eder Moffett: Is it a standalone business to you or is it really in service of broadband churn and then I Wonder if you could maybe I was just.

Jason S. Armstrong: Yeah, great. And just, finally, I think your question specifically on, you know, ARPU and how you go through the ACP cycle and have confidence in ARPU growth. I think all these points are relevant and valid. You know, number one, we continue to see usage grow at a rapid rate, so the value that the consumer is getting is higher. That's a tailwind, in general, for ARPU growth. I think number two is the segmentation that Dave talked about.

Craig Eder Moffett: I missed it but Jason I think you mentioned the margins for the domestic cable only business, but I think I may have missed the number I wonder if you could just repeat that for us. Thanks.

Speaker Change: Hey, correct, Dave Let me start with wireless and then hand it over to Jason.

Speaker Change: And folks, but let me.

Jason S. Armstrong: Wireless is an absolute integral part of our overall strategy and specifically to your question. We've always thought the main value for us wireless is connected with broadband.

Jason S. Armstrong: We see a lot of competition in a certain segment of our base, the value-conscious segment of our base, but segmentation allows you to keep that from seeping into other segments of the base, and the team's done a nice job executing there. The final thing I'd point out is, as we said, ACP customers have got about 1.4 million in our base that we'll need to manage through. This is very similar, though, to if you think about how this business is wired, Dave and his team, its promotional roll-offs.

Jason S. Armstrong: And that adds surrounds broadband with value.

Speaker Change: I think we don't give specifics on exactly the.

Speaker Change: The churn benefits.

Speaker Change: Benefits, but we do see it.

Speaker Change: And whether it's acquisition oriented connected to broadband whether it's base management upgrading whether it's retention wireless plays a role in all of those so it's a key growth opportunity.

Jason S. Armstrong: This is something we're dealing with every single quarter: how do you navigate a base of customers that are on promotion and roll them into new rate plans and, you know, keep them as customers? So this is very much what the cable business is wired to do. Metrics that are associated with the credit rating, as you've seen, and as you point out, very strong free cash flow last year and an expectation for, you know, similar this year, as you mentioned, allow for substantial share repurchase activity.

Speaker Change: But it's also it's a product where our marginal economics are strong. So it's good to have that but it's the way we go to market, it's connected to broadband and it's connected to packaging. So.

Speaker Change: It's performing well, we like our consistency in the marketplace.

Speaker Change: And love the fact that we have a good runway ahead.

Speaker Change: Only about 11% penetrated now 7 million lines, and so really like the opportunity in front of us and.

Jason S. Armstrong: So since we restarted the buyback in 2021, we have bought back over 15% of our share count. If you look at last year, we bought back over 6% of our share count. So both very strong metrics. I would point out at the tail end of last year that we were pretty clear in the third quarter that we were going to accelerate the buyback, anticipating minimum floor HULU proceeds, which came in at the very end of last year. That's in advance of more full proceeds for full value this year. But we did get a minimum floor payment last year and hence accelerated the buyback in 3Q and 4Q to $3.5 billion. Thanks, everyone.

Speaker Change: For us we have constantly been evolving our approach towards wireless and how we connect it with broadband and how we use it so we have.

Speaker Change: For example, new pricing plans, our new mobile plants that are really targeting multiline customers excited about that the new mobile product in the segmentation, we've already talked about that in the prepaid area and for that segment we've had.

Speaker Change: <unk> get one program for the base. So almost every single segment and then just announced Wi Fi boost for our mobile customers being able to open up the public.

Speaker Change: The Wi Fi hotspots and open it up as fast as devices can go and leveraging Wi Fi complement to mobile. So I think we've demonstrated that we were in this business. We love this business and it's but it is definitely the core part of our strategy is how it impacts broadband over the long run.

Michael J. Cavanagh: Thanks, Mike. And I'll just come in on the back of the question about any changes in how we think about capital allocation. I think Jason and the team, you know, are carrying on a phenomenal tradition. I've been here now for close to 10 years.

Jason S. Armstrong: Jason Yes.

Jason S. Armstrong: So on margins, we said overall connectivity and platforms.

Jason S. Armstrong: Margins were up 50 basis points and said domestic was an even greater increase the domestic was up 70 basis points year over year sort of continuing the formula of a mix shift in our business to higher margin businesses, our connectivity businesses are growing faster than our <unk>.

Michael J. Cavanagh: And I think the idea of taking our well-generated capital across our businesses and, first and foremost, investing it back into the business with a very long-term view of what the future can be, where there's an expected return, whether that's the parks business, whether that's the broadband network, whether that's streaming, whether it's just broad innovation. I think it's in our DNA at this place to try to figure out ways to invest wisely for the future while, at the same time, maintaining a very strong balance sheet.

Jason S. Armstrong: Our.

Jason S. Armstrong: Non gross video businesses, so thats a margin favorable trade off for us as we've said historically and then operating efficiencies in the business I think we gave a stat last call that I'd reiterate we've taken 50% of our truck rolls out of the system in the last six years, we've taken 40% of customer interactions out of the system in the last six years. So a lot of good progress on <unk>.

Michael J. Cavanagh: And we like the way the balance sheet is set up. When you go through these long, you know, long arcs of change across industries with disruption, it allows you to sleep better at night knowing the strength of the balance sheet we have and allows us to continue making those earlier investments. And then, to do those two things together with the very substantial interest on the part of the management team and, you know, the fact that we've done it to just get lots of capital returned to shareholders, not many companies are inclined to manage those three priorities as much as we are. And I can commit that that's where our head is as we look forward to the next 10 years. Operator, we're ready for the next question. Thank you.

Jason S. Armstrong: Efficiency, but Craig the domestic margins up 70 basis points.

Craig Eder Moffett: Got it that helps thank you.

Speaker Change: Thanks, Craig Operator next question. Please certainly the next question is coming from Jessica Reif Ehrlich from Bank of America Securities. Your line is now live.

Speaker Change: Thank you.

Speaker Change: I have a question on NBC U.

Speaker Change: And also on Comcast cable on the theme parks, which is clearly one of your growth pillars.

Speaker Change: Can you give us the investment levels you expect over the next five years.

Speaker Change: Obviously capex will be in there so it'd be a little elevated but you've got the new parks and we're also investing in the existing parks and how different is the return on invested capital for the theme parks versus your other businesses.

Operator: Next question is coming from Craig Moffett from Moffett, Nathanson, Utah. Hi, two questions about broadband. First, you talked about how your broadband business, or sorry, your wireless business, is helping broadband churn. I wonder if you could just talk a little bit more about that. How can you, first, can you put some numbers around the churn reduction that you see when you bundle broadband and wireless together?

Speaker Change: And then one more on NBC you are there other areas NBC, you should or Youre thinking about investing in like video games and then on cable Comcast cable just a question on the programming expense of programming contracts, presumably you have.

Speaker Change: I think you've always had them.

Speaker Change: Should we think about the impact on Comcast cable programming expenses.

Speaker Change: Some major programming contracts come up with other distributors. Thank you.

Speaker Change: Yeah.

Speaker Change: Hey, Jessica it's Mike So on parks as we've said this is a year in 2024, where capex in parks and at NBC Universal overall will sustain it at the level. It was in 'twenty three so remain elevated in 25, when we open.

Operator: But, but more importantly, how do you think about wireless? Is it a standalone business to you, or is it really in service of broadband churn? And then I wonder if you could, maybe I was just, I missed it.

Michael J. Cavanagh: It will begin to step down and then after that it will return to a more normal level with adjustments for.

Speaker Change: The Hollywood horror nights in the queue.

Speaker Change: Kids Park.

Speaker Change: Frisco, Texas that we've talked about but those as we've said are not of the same size and scale as a large park like epic so, but we do have a bigger footprint of parks than we did say five years ago. So you are right part of the.

Craig Eder Moffett: But Jason, I think you mentioned the margins for the domestic cable-only business, but I think I may have missed the number. I wonder if you could just repeat that for us? Thanks. Hey, Craig, Dave, let me start with wireless and then hand it over to Jason and the folks. But let me tell you, wireless is an absolutely integral part of our overall strategy. And specifically to your question, we've always thought, you know, the main value for us wireless is connected to broadband and that it adds, it surrounds broadband with value. It, I think, you know, we don't give specifics on exactly the, you know, the turn benefits, but we do see it.

Speaker Change: Part of the capital equation for parks is to continue to invest in new attractions within existing parks. So again once we get to 'twenty six youll see us easing easing into a new steady state that does include continued.

Speaker Change: Experimentation with some of our alternative content concepts and then certainly we hope over the longer term to come up with some.

Speaker Change: <unk> for bigger deployments of capital, but that's what we have.

Speaker Change: In the in our plans as we sit here right now, but we love the business and to the question of returns. We think the returns are very strong.

Speaker Change: We take a careful look at that every time, we're green lighting, New park and I think we like the stability of the long term nature of the return it's us and one other great companies that are world leaders in that level of park experience.

David N. Watson: And whether it's acquisition oriented, connected to broadband, whether it's base management, upgrading, or retention, wireless plays a role in all of those. So it's a key growth opportunity. So almost every single segment, and then we just announced the Wi-Fi boost for our mobile customers being able to open up, you know, the public, the Wi-Fi hotspots and open them up as fast as devices can go, and leveraging Wi-Fi complements mobile. So I think we've demonstrated that we're in this business, and we love this business. And it's, but it is definitely the core part of our strategy is how it impacts broadband over the long run. Hey Craig.

Speaker Change: The response to our parks has been phenomenal coming out of Covid.

Speaker Change: And so we see that being.

Speaker Change: Place live entertainment at the at the level, we're talking about being just a strong pillar of the media and entertainment side of the company for a long time ahead.

Speaker Change: And then in terms of.

Speaker Change: Other areas I think the success that we've had across parks and experiences.

Speaker Change: R R.

Speaker Change: Lead us plenty of opportunities to think about gaming.

Jason S. Armstrong: So, on margins, we said overall connectivity and platforms margins were up 50 basis points and said domestic was an even greater increase. Domestic was up 70 basis points year over year, sort of continuing the formula of a mix shift in our business to higher margin businesses. Our connectivity businesses have grown faster than our non-growth video businesses. So, that's a margin-friendly trade-off for us, as we've said historically. And then operating efficiencies in the business. I think we gave a stat on last call that I'd reiterate.

Speaker Change: Are there other areas around live entertainment that go around and cross between our businesses. So we experiment with things and we look and it's our job to see if there are great opportunities to do that but nothing to report today.

Speaker Change: Hey, Jessica Dave just so your question on renewals in our point of view.

Jessica: Yes look there is.

Jessica: From our view there is not a single approach towards we handle on a case by case basis.

Jessica: When you step back for a second though we evaluate each one.

Speaker Change: Three primary areas one the overall cost.

Jessica: <unk> to the content flexibility that's required in a very fast changing environment and the overall consumer value.

Jason S. Armstrong: We've taken 50% of our truck rolls out of the system in the last six years. We've taken 40% of customer interactions out of the system in the last six years. So, a lot of good progress on expense efficiency. But, Craig, the domestic margin was up 70 basis points. God, does that help?

Jessica: So we're going to look at this the significant transition that has been going on will continue to go on between linear.

Jessica: And streaming and so that is something that we think we can play.

Jessica: A unique role in in terms of win win opportunities between the content providers and distribution and for US we have a unique platform.

Jason S. Armstrong: Thank you. Thanks, Craig. Operator, next question, please. Certainly. Our next question is coming from Jessica Rieferlich from Bank of America Security. Your line is now live. Excuse me.

Jessica: That is positioned well to be able to do handle everything that video can handle linear channels on demand DVR and streaming we've been doing streaming packaging on the platform. So some period of time, so we can build bridges.

Jessica Reif Cohen: Thank you. I have a question about NBCU and also about Comcast Cable and about the theme park.

Michael J. Cavanagh: Clearly, one of your growth areas. Can you give us the investment levels you expect over the next five years? Basically, EPIC will be in there, so it will be a little elevated. But you have other new parks and you're also.

Jessica: As these things come up and but our goal consistently has been to find win win opportunities.

Jessica: As we examine each and every specific renewal but.

Jessica: That's how we will evaluate each one.

Jessica: Thanks, Jessica operator, we're ready for the next question. Please our next question is coming from John Hodulik from UBS. Your line is now live.

Michael J. Cavanagh: What's different is the return on invested capital. And then one more on NBCU, are there other areas NBCU should, or you're thinking about investing in? Like video, and then on cable, on Comcast cable. Question on your programming expense or programming contracts. Presumably, you have MSN. Unknown Speaker 0, cable program, come up with another.

John Christopher Hodulik: Great Good morning, guys.

John Christopher Hodulik: If I could maybe maybe first for Jason just finishing up on ACP.

John Christopher Hodulik: Given the strong start you guys had to the year and the strong.

John Christopher Hodulik: Do you guys think that you can keep.

John Christopher Hodulik: Domestic cable EBITDA flat to up for.

John Christopher Hodulik: For the year, even with ACP dunaway.

Michael J. Cavanagh: Hey, Jessica, it's Mike. So on parks, as we've said, this is a year in 2024 where CAPEX in parks and at NBC Universal overall will sustain at the level it was in 23. So remain elevated in 25. When we open EPIC, it will begin to step down. And then after that, it will return to a more normal level with adjustments for that. That's what we have in our plans, as we sit here right now. But we love the business. And to the question of returns, we think the returns are very strong. We take a careful look at that every time we're green lighting, you know, a new park.

Speaker Change: And then maybe for Dave.

Speaker Change: The wireless companies are definitely talking about sort of a bigger game on fixed wireless in the business market. I think you guys had some sort of strong comments in the prepared remarks about the business market, but are you starting to see some some increasing competition at the low end.

John Christopher Hodulik: Because this looks warehouse thanks.

Speaker Change: Yes, John Let me, let me hit domestic.

Speaker Change: Cable EBITDA <unk> EBITDA over the course of the year. So I think as you mentioned, it's competitive market, we've got ACP coming our way at the same time. The balance you know think about broadband specifically the balance between rate and volume we've seen.

Speaker Change: A little bit of pressure on volume, but for 2% ARPA growth in the quarter and outlook for we continue to stay at a 3% to 4%.

Michael J. Cavanagh: And I think we like the stability of the long-term nature of the return. It's us and, you know, one other great company that are world leaders in that level of park experience. The response to our parks has been phenomenal, you know, coming out of COVID.

Speaker Change: During the year. So we still think there's tailwind for broadband revenue growth. We had three 9%. This quarter, we're growing business services, we're growing wireless and we're offsetting video and other revenue declines, but at the total level. That's a margin accretive mix shift I'd go back to what I've said before on some of the expense initiatives across the company and being very disciplined.

David N. Watson: And so we see that being a place for live entertainment at the level we're talking about being just a strong pillar of the media and entertainment side of the company for a long time ahead. And then in terms of, you know, other areas, I think the success that we've had across parks and experiences leads us to plenty of opportunities to think about gaming and other areas around live entertainment that go around and cross between our businesses.

Speaker Change: Supply taking volumes out of the system and that providing a tailwind as well so without giving specific guidance for EBITDA growth I would give you the components and our confidence in them.

Speaker Change: Hey, John Dave So just a follow on to Jason's point in terms of ACP remember I think a really important point, we've been segmenting the marketplace and.

David N. Watson: So we experiment with things, and we look, and it's our job to see if there are great opportunities to do that, but we have nothing to report today. Hey, Jessica, Dave, just so your question on renewals and our point of view. Yeah, look, it there's from our point of view, there's not a single approach toward, you know, we handle it on a case by case basis.

John Christopher Hodulik: I think we've had the industry leading platform.

John Christopher Hodulik: In terms of Internet essentials for a very long time, so a decade plus so we are.

John Christopher Hodulik: Familiar with segmentation.

John Christopher Hodulik: This area.

John Christopher Hodulik: And we're very familiar in terms of promo roles and bigger in moments like this so.

John Christopher Hodulik: Because of that in particular, the <unk> point that's.

David N. Watson: When you step back for a second, though, we evaluate each one in three primary areas. One is the overall cost relative to the content, the flexibility that's required in a very fast-changing environment, and the overall consumer value. And so, you know, and we're going to look at this significant transition that has been going on, will continue to go on between linear and streaming, and so that is, you know, something that we think we can play a unique role in, in terms of win-win opportunities between content providers and distribution.

John Christopher Hodulik: Thats connected to it is we feel pretty good about the historical range of 3% to 4% so.

John Christopher Hodulik: But we've had a.

John Christopher Hodulik: Long standing approach towards this on your question around business services. There is no question John that we have.

John Christopher Hodulik: SMB market is.

John Christopher Hodulik: Become a bit more competitive and fixed wireless as a part of that so.

John Christopher Hodulik: They are you've seen it in the results we now have three.

John Christopher Hodulik: <unk> fixed wireless competitors that are in it when you have that much all at once.

John Christopher Hodulik: There is some impact so we're seeing it in SMB.

David N. Watson: And for us, we have a unique platform that is positioned well to be able to do everything that, you know, video can handle, linear channels, on-demand, DVR, and streaming. We've been doing streaming packaging on the platform for some time now. So, we can build bridges as these things come up, but our goal consistently has been to find win-win opportunities as we examine each and every specific renewal. And that's how we'll evaluate each one. Thanks, Jessica.

John Christopher Hodulik: <unk> to SMB.

John Christopher Hodulik: But our game plan consistently has been to focus on both the share and the overall.

John Christopher Hodulik: The rate and we have a great slate of products, we have multiple segments within business services mid market and enterprise that offset a lot of this and great product road maps that have but really important point as you feel competitive pressure I think.

Operator: Operator, we're ready for the next question, please. Our next question is coming from John Hodulik from UBS. Your line is now live. Great. Good morning, guys. Two, if I could, maybe first for Jason, just finishing up on ACP.

John Christopher Hodulik: Important to keep in mind uniquely to SMB that reliability and ubiquity of our products and business services is really key here for businesses 24, 7% Theyre always on it has to work I think over time, we will continue to.

John Christopher Hodulik: Given the strong start you guys had this year and the strong ARPU, do you guys think that you can keep domestic cable EBITDA flat to up for the year, even with ACP going away at first? I mean, maybe for Dave, the wireless companies are definitely talking a sort of bigger game on fixed wireless in the business market. And then you guys had some sort of strong comments and prepared remarks about the business market. But are you starting to see some increasing competition leak in at the low end because of fixed wireless? Thanks.

John Christopher Hodulik: <unk> that point, and we're not going to chase things down to zero in terms of discounting we're going to offer better products and surround those products with features that make sense since for business customers, but we will make sure that customers know the reliability and ubiquity of what we do is unique and different in fixed.

John Christopher Hodulik: Wireless just Brian.

John Christopher Hodulik: Just again, just as we talked about in the residential market.

John Christopher Hodulik: The long term opportunity, where we're only just getting started is that large enterprise and medium sized business and as you think about cyber security and other.

Jason S. Armstrong: Yeah, John, let me hit domestic, or cabling, but C&P over the course of the year. So I think, as you mentioned, it's a competitive market, we've got ACP coming our way at the same time, the balance, you know, think about broadband, specifically the balance between rate and volume. We've seen, you know, obviously, a little bit of pressure on volume, but 4.2% ARPU growth in the quarter, an outlook for, you know, we continue to stay at three to 4% during the year.

John Christopher Hodulik: Data rely ability and just consumption behavior of businesses and thank you for your own businesses.

John Christopher Hodulik: And where that might lead to the use of.

John Christopher Hodulik: New tools and video and everything else.

John Christopher Hodulik: You want to have the best network and once again, we have a really exciting team and roadmap on that front. So again were battling.

John Christopher Hodulik: The reality in one segment with great opportunity and others in long term love our our situation.

Speaker Change: Thank you operator next question please.

John Christopher Hodulik: Certainly our next question is coming from Steven Cahall from Wells Fargo. Your line is now live.

Jason S. Armstrong: So we still think there are tailwinds for broadband revenue growth; we had 3.9%. This quarter, we're growing business services, we're growing wireless, and you know, we're offsetting video and other revenue declines. But at the total level, that's a margin-accretive mix shift.

Steven Lee Cahall: Thank you.

Steven Lee Cahall: Maybe first just on broadband trends I think you've been pursuing a line extension strategy for at least 18 months and that will continue so is it correct to assume that your gross adds on broadband are starting to pick up just as you add more passing in the market and if thats true can you give us any color on within the D. Activations.

Jason S. Armstrong: I'd go back to what I said before, on some of the expense initiatives across the company and being very disciplined, taking volumes out of the system, and that providing a tailwind as well. So without giving specific guidance for EBITDA growth, I would give you the components of our competition. Thank you, John, and Dave.

Steven Lee Cahall: Where they are headed I think you've always said that fiber as the bigger competitive threat.

Steven Lee Cahall: So does that kind of help us understand what's going on between gross adds and net adds and then separately on Peacock you talked about retaining subs between some of your big marquee sporting events and you've got a lot of great film on Peacock as well I'm wondering what your tolerances for original content and original content spend and how we think about original <unk>.

David N. Watson: So, just a follow-on to Jason's point in terms of ACP. Remember, I think a really important point: we've been, you know, segmenting the marketplace, and we – I think we've had the industry-leading platform in terms of Internet Essentials for a very long time, so, you know, a decade-plus. So, we are, you know, familiar with the segmentation in this area, and we're very familiar in terms of promo rolls and bigger moments like this.

John Christopher Hodulik: Maybe vis vis long term breakeven goal. Thank you.

John Christopher Hodulik: Stephen This is Dave let me start with footprint.

John Christopher Hodulik: Then go to competition views. So let me in terms of overall footprint expansion. The vast majority of our new passing each quarter are fill ins within our existing footprint. The balance of the growth is mostly from our organic edge outs into adjacent areas and so.

David N. Watson: So, I – because of that, you know, in particular the ARPU point that's connected to it, we feel, you know, pretty good about the historical range of 3 to 4 percent. So – but we've had a long-standing approach to this. On your question around business services, there's no question, John, that we in the SMB market have become, you know, a bit more competitive, and fixed wireless is a part of that. So, they are, and we've seen it in the results.

John Christopher Hodulik: Some government subsidized builds representing a much smaller, albeit increasing portion so it's really the kind of three different.

John Christopher Hodulik: The components of it that we're looking at and so.

John Christopher Hodulik: It's still early and but we're very disciplined we evaluate the risk adjusted returns of each one of these network builds on a case by case basis.

David N. Watson: We now have, you know, three fixed wireless competitors that are in it. When you have that much all at once, there's some impact. So, we're seeing it in SMB. It's unique to SMB.

John Christopher Hodulik: Generally, though the edge outs is that will increase.

John Christopher Hodulik: They are adjacent sometimes located in between geographic markets that we currently serve.

David N. Watson: But, you know, our game plan consistently has been to focus on both the share and the overall rate, and we have a great slate of products. We have multiple segments within business services, mid-market, and enterprise that offset a lot of this, and great product roadmaps that have. But, you know, a really important point, as you feel competitive pressure, I think it's important to keep in mind, uniquely to SMB, that the reliability and ubiquity of our products and business services is really key here. For businesses, they get it 24-7. They're always on.

John Christopher Hodulik: So.

John Christopher Hodulik: Looking ahead, we expect these edge out projects to continue to contribute to the future growth.

John Christopher Hodulik: And our total passengers and we don't give to your question those specific numbers on this I can tell you that we're going to reach very healthy penetration levels in a few years on these edge out projects. So.

John Christopher Hodulik: The ramp ups happen pretty quickly and we're pleased with the returns, though so pretty disciplined.

John Christopher Hodulik: Process, we look on the returns and then as you shift towards the competition.

Speaker Change: The environment, let me back up and just overall.

Speaker Change: It's a very intense competitive environment that is very consistent the last several years and so it picked up a bit and when you have again three.

Brian L. Roberts: It has to work. I think over time, you know, we will continue to press that point. And, you know, we're not going to chase things down to zero in terms of discounting. We're going to offer better products and surround those products with features that make sense for business customers. But we will make sure that customers, you know, know the reliability and ubiquity of what we do is unique and different from fixed wireless.

Speaker Change: Fixed wireless competitors coming in pretty much at the same time and you have.

Speaker Change: <unk>.

Speaker Change: The fiber level about half of our footprint now has fiber competition of some form in it.

Speaker Change: It's an intense competitive environment, but.

Speaker Change: No.

Speaker Change: We have adjusted we've been going up against fiber competition now for over 15 years.

Speaker Change: And it is.

Speaker Change: We've had made adjustments, we've done I think very well and going toe to toe.

Brian L. Roberts: And just, Brian, just again, just as we talked about in the residential market, the long-term opportunity where we're only just getting started is that large enterprise and medium-sized data reliability and just consumption behavior of businesses. Think of your own businesses and where that might lead and the use of new tools and video and everything else. You want to have the best network.

Speaker Change: Exactly as Brian laid out that our long term game plan is to focus on a better network ubiquitous network better products surround it with the full portfolio of better products.

Speaker Change: And and not chase units just for the sake of it and we've had moments going up against fiber, where they've gone way down market they've become rational.

Operator: And once again, we have a really exciting team and roadmap on that front. So again, we're battling the reality in one segment with great opportunity and others and long-term love for our situation. Operator, next question please. Certainly, our next question is coming from Steven Cahall from Wells Fargo. Your line is now live. Thank you.

Speaker Change: We've had different cycles, and so I think we've made adjustments.

Speaker Change: And we have proven that we more than hold our own in that footprint. What we're seeing now is kind of an intense more intense competitive focus around the lower end of the market and that's why we're segmenting Thats why were doing what were doing never losing sight, though that we're going to have a better product.

Steven Lee Cahall: Maybe first, just on broadband trends, I think you've been pursuing a line extension strategy for at least 18 months, and that'll continue. So is it correct to assume that your gross ads on broadband are starting to pick up just as you add more passings in the market? And if that's true, can you give us any color on where the deactivations are headed?

Speaker Change: Anybody in the marketplace the better network.

Speaker Change: And backing it up with better devices that can eventually as we get to multi gig symmetrical and thats. The key every single application Ubiquitously delivered.

Speaker Change: That's our focus so.

Speaker Change: It's tough competitive environment, but I think we have a unique differentiated approach.

David N. Watson: I think you've always said that you view fiber as the bigger competitive threat. And so does that kind help us understand what's going on between gross ads and net ads? And then separately on Peacock, you talked about retaining subs between some of your big marquee sporting events, and you've got a lot of great films on Peacock as well. I'm wondering what your tolerance is for original content and original content spend, and how we think about originals on Peacock, maybe vis-a-vis a long-term breakeven goal. Thank you. Thank you, Steven. This is Dave.

Speaker Change: And so on Peacock I mean, we're very pleased as we speak both dish and I said earlier with a quarter, where we ended at $33 5 million subs three and a half years. In we are we are at a place now where we really are seeing traction in our approach to.

Speaker Change: Providing a service for consumers that is a combination of both entertainment and sports and how those two go together very much a reflection as we said from the beginning of our a mirror image of what we see is our strengths at NBC Universal.

Speaker Change: Self and so when you look at this quarter in particular, you end up with a.

Speaker Change: Start with a wildcard game that brought in a tremendous number of subs ahead of where we expected it to be.

Michael J. Cavanagh: Let me start with footprint and then go to competition views. So let me – in terms of overall footprint expansion, you know, the vast majority of our new customers each quarter are fill-ins within our existing footprint. The balance of the growth is mostly, you know, from our organic edge-outs into adjacent areas. And so with, you know, some government-subsidized bills representing a much smaller, albeit increasing, portion.

Speaker Change: And then retention that was ahead of where we expected it to be.

Speaker Change: And so that's obviously, great and the power of sports to bring audiences together and we will stay committed because of our strength in sports, but when you really reflect on what then happened in the weeks that followed our viewing was the record highs across all parts of our non sports portfolio and in fact in the quarter, we launched our.

Speaker Change: Biggest original Ted to the greatest success of any of the original we've ever launched and traders to our reality series on Peacock.

David N. Watson: So it's really the – there are kind of three different components of it that we're looking at. And so, you know, it's still early, and – but, you know, we are very disciplined. We evaluate the risk, you know, adjusted returns of each, you know, one of these network builds on a case-by-case basis.

Speaker Change: Both of those were in the Nielsen top 10 streaming in the earlier part of the year. So I think we see the two <unk>.

Speaker Change: So the portfolio enter playing well with each other and obviously the strength of our movie studio, which we talked about earlier with Oppenheimer and holdovers.

David N. Watson: And generally, though, the edge-outs, as that will increase, they're adjacent, sometimes located in between geographic markets that we currently serve. So, you know, looking ahead, we expect these edge-out projects to continue to contribute to the future growth in our total pass rates. And we don't give, to your question, those specific numbers on this.

Speaker Change: And now coming up in future quarters Kung Fu Panda four that is another great source of strength into our portfolio. So I think you could expect to see us having a very.

Speaker Change: Broad approach to its sports its originals. It's next airing of NBC content, It's our library and its our pay one movies all of those things going into a service that we think is one of the best values in streaming.

David N. Watson: I can tell you that, you know, we're going to reach very healthy penetration levels in a few years on these edge-out projects. So the ramp-ups happen pretty quickly, and we're pleased with the returns, though. A pretty disciplined process.

Speaker Change: A very distinct place over time and the streaming marketplace for consumers and when you look ahead from where we started the year.

David N. Watson: We looked at the returns. And then, as you shift, you know, towards the competition, you know, the environment – let me back up and just – it's overall – it's a very intense competitive environment that has been very consistent over the last, you know, several years. And so it picked up a bit. And when you have, again, three fixed wireless competitors coming in pretty much at the same time, and you have the fiber level – about half of our footprint now has fiber competition of some form. And it's an intense competitive environment.

Speaker Change: We are now in continuing to focus hard on retaining the growth in subs, we had second quarter will be a little lighter in terms of the cadence of our content, but when you look to the middle of the year. We've got Olympics right. After that we've got the return of NFL Big 10.

David N. Watson: Our exclusive NFL game in Sao Paulo, Brazil, along with the tremendous movie slate fall Guy Twisters frequently for in addition to <unk>.

Speaker Change: <unk> had before and so we feel great about what we're doing and the progress, we're making and it's very consistent with the the way we have.

Speaker Change: Described peacock as.

David N. Watson: But, you know, we have adjusted. We've been going up against fiber competition now for over 15 years. And it is – we've made adjustments. We've done, I think, very well in going toe-to-toe for the – exactly as Brian laid it out, that our long-term game plan is to focus on a better network, a ubiquitous network, better products, surround it with the full portfolio of better products, and not chase units just for the sake of it. And we've had moments going up against fiber where they've gone way down in the market. They've become rational. We've had different cycles.

Speaker Change: Taking advantage of what makes us great at NBC universal to begin with and taking our existing strengths and assets into a digital future. So that's.

Speaker Change: And it's one of our six big growth drivers, so glad to get a chance to comment on it. Thank you.

Speaker Change: Thanks, Steve Operator, we have time for one last question.

Speaker Change: Thank you. Our final question today is coming from Jonathan Chaplin from New Street. Your line is ally.

David N. Watson: Thanks.

Speaker Change: One for Dave and one for Jason and Dave taking a step back from the sort of the increased competitive intensity, you're seeing in the broadband market.

Jonathan Chaplin: Love your perspective on how the overall market is trending as we tally up what the adds in the quarter it looks like.

Sort of trending to somewhere around half of what we normally see for the industry in the first quarter everybody's adds are down.

David N. Watson: And so I think we've made adjustments. And we have, you know, proven that we more than hold our own in that footprint. What we're seeing now is kind of a more intense competitive focus around the lower end of the market. And that's why we're segmenting. That's why we're doing what we're doing.

Speaker Change: I'm wondering if you've got any thoughts as to what might be driving that and then Jason on the segmentation strategy.

Speaker Change: Yes.

Jason S. Armstrong: Hit the low end of the market with some with some offers loss last year, and then pulled back because you're worried about cannibalization I'm wondering how you sort of structured differently.

David N. Watson: Never losing sight, though, that we're going to have a better product than anybody in the marketplace, the better network, and backing it up with better devices that can, eventually, as we get to multi-gig symmetrical – and that's the key. Every single application ubiquitously delivered, that's our focus. So it's, you know, it's a tough competitive environment, but I think we have a unique, differentiated approach

David N. Watson: And.

David N. Watson: Seeing that that cannibalization impact thank you.

Speaker Change: Hey, Jonathan Dave Let me start with the broadband.

David N. Watson: In its entirety the whole market in our viewpoint.

David N. Watson: Let me begin with the broadband market as a whole is still growing.

David N. Watson: Maybe at a slower pace than it was last year and the year before but there's still going to be a pretty healthy amount of net adds in 2024 and likely beyond the right way, though in addition to that I think you got everything we've talked about before it the right way, we think to look about it is it's holding.

Michael J. Cavanagh: And so on Peacock, I mean, we're very pleased, as both Jason and I said earlier, with the quarter where we ended up with 33.5 million subscribers. Three and a half years in, we are at a place now where we really are seeing traction in our approach to providing a service for consumers that is a combination of both entertainment and sports and how those two go together. Very much a reflection, as we said from the beginning, of a mirror image of what we see as our strengths at NBC Universal itself.

Michael J. Cavanagh: Our own growing relationships responsibly, but it's also where the market is going and how broadband is being used and that as we've talked about in the utility of the broadband product itself is only going up so when you look at the health of the entire category. It's the relationships, but it's also the overall.

Michael J. Cavanagh: Wal usage and consumption and for US <unk> seen usage is up double digits broadband only subs using over 700 gigabytes of data a month over 70% of our subscriber base is on speed tiers.

Michael J. Cavanagh: And so when you look at this quarter in particular, you end up with a start with a wild card game that brought in a tremendous number of subscribers ahead of where we expected it to be, and then retention that was ahead of where we expected it to be. And so that's obviously great, and the power of sports to bring audiences together and keep them committed because of our strength in sports.

Michael J. Cavanagh: Megs or more nearly a third of our customers are on a gig those are great trends for us over the long term.

Michael J. Cavanagh: And it gives us the.

Michael J. Cavanagh: Great confidence as we are investing continuing to invest in a better network and a better customer experience as Brian has said so.

Michael J. Cavanagh: But when you really reflect on what then happened in the weeks that followed, our viewing was at record highs across all parts of our non-sports portfolio, and, in fact, in the quarter, we launched our biggest original, TED, to the greatest success of any of the originals we've ever launched, and Traders 2, our reality series on Peacock, both of those were in the Nielsen Top 10 streaming in the earlier part of the year. So I think we see the two, you know, the parts of the portfolio interplaying well with each other, and obviously, the strength of our movie studio, which we talked about earlier with Oppenheimer and Holdovers, and now coming up in future quarters, Kung Fu Panda 4, that is another great source of strength in our portfolio.

Michael J. Cavanagh: When you look at things I think it's clearly competitive as we've talked about one other factor that enters into it in some cases in certain segments. There is some.

Michael J. Cavanagh: People that revert back to mobile only that that can happen. So there's a variety of factors that could enter into it but overall as a category and as a growth opportunity quite optimistic about broadband.

Michael J. Cavanagh: Hey, Jonathan Let me, let me start on segmentation and Dave probably wants to chime in as well so on now and I think what's interesting and exciting about it is it's a dedicated to a flanker brand strategy. We've had prepaid offers in the past sort of wedged into our existing portfolio. This is a more.

Michael J. Cavanagh: Dedicated and branded strategy around it that by the way that the branding around this has worked very well in our UK market for Sky, It's actually where the brand name came from.

Michael J. Cavanagh: So I think you can expect to see us having a very broad approach to its sports, its originals, its next day airing of NBC content, its library, and its pay-per-view movies, all those things going into a service that we think is one of the best values in streaming and a very distinct place over time in the streaming marketplace for consumers. And when you look ahead from where we started the year, we are now in, and continue to focus hard on retaining the growth and subscribers we had.

Michael J. Cavanagh: And so we expect this to have some residents I would point out the if you look at where it's sort of targeted we've got 100 Meg offer for $30. It's inclusive of taxes fees and equipment, we've got a $45 offering thats 200, megs and inclusive inclusive as well very competitive versus fixed wireless right that is in the.

Michael J. Cavanagh: The second quarter will be a little lighter in terms of the cadence of our content, but when you look to the middle of the year, we've got the Olympics. Right after that, we've got the return of NFL, Big Ten, and our exclusive NFL game in Sao Paulo, Brazil, along with the tremendous movie slate, Fall Guy, Twisters, Despicably Four, in addition to Kung Fu Panda 4.

Michael J. Cavanagh: In this range, maybe slightly higher without the same reliability and ubiquity, but we have.

Speaker Change: Yes, just adding onto that Jonathan but again, we've been doing.

Michael J. Cavanagh: Prepaid broadband for a while years and.

Michael J. Cavanagh: Just that we needed to refresh it needed to update it and put it in a more competitive position there.

Michael J. Cavanagh: And so we feel great about what we're doing and the progress we're making, and it's very consistent with the way we've described Peacock as taking advantage of what makes us great at NBC Universal to begin with and taking our existing strengths and assets into a digital future. So that's, and it's one of our six big growth drivers. So glad to get a chance to comment on it. Thanks, Steve. Operator, we have time for one last question. Thank you.

Michael J. Cavanagh: Prepaid mobile is new.

Michael J. Cavanagh: And now TV is relatively new but its a segmented approach and if you think about it it's all in pricing, it's very simple it's really easy.

Michael J. Cavanagh: There is no contract no credit checks customers can sign up pause cancel online anytime it's a very straightforward.

Michael J. Cavanagh: But future light product as we keep our focus on the high end.

Michael J. Cavanagh: Terms of fully featured things will continue to do that but this just gives US a brand gives us a product suite to be able to clearly and defined segmentation in a way that we can manage through.

Operator: Our final question today is coming from Jonathan Chaplin from New Street. Your line is now live. Thanks.

Jonathan Chaplin: Dave, taking a step back from the sort of increased competitive intensity you're seeing in the broadband market, I would love your perspectives on how the overall market is trending. As we tally up all the ads in the quarter, it looks like we're sort of trending to somewhere around half of what we normally see for the industry in the first quarter. Everybody's ads are down.

Jonathan Chaplin: Thanks, Jonathan and we want to thank everyone on the call for joining us this morning.

Speaker Change: Thank you that concludes the question and answer session and today's conference call. A replay of the call will be available starting at 11 30, a M. Eastern time today on Comcast Investor Relations website. Thank you for participating you may all disconnect.

David N. Watson: And I'm wondering if you've got any thoughts as to what might be driving that. And then, Jason, on the segmentation strategy, you hit the low end of the market with some offers last year and then pulled back because you were worried about cannibalization. I'm wondering how you've structured yourself now differently so you don't end up seeing that cannibalization impact. Hey, Jonathan, Dave, let me start with broadband in its entirety, the whole market, and a viewpoint.

David N. Watson: So let me begin by saying, you know, the broadband market as a whole is still growing, maybe at a slower pace than it was last year and the year before, but there's still going to be a pretty healthy amount of net ads in 2024 and likely beyond. The right way, though, in addition to that, I think you have everything we've talked about before; the right way we think to look at it is it's, you know, holding our own growing relationships responsibly, but it's also where the market is going and how broadband is being used.

David N. Watson: And that, as we've talked about, the utility of the broadband product itself is only going up. So when you look at the health of the entire category, it's the relationships, but it's also the overall usage and consumption.

David N. Watson: And for us, you've seen usage go up double digits, broadband only subscribers using over 700 gigabytes of data a month, over 70% of our subscriber base is on speed tiers of, you know, 50 megs or more, and nearly a third of our customers are on a gig. Those are great trends for us over the long term and, you know, gives us great confidence as we're investing in and continue to invest in a better network and a better customer experience, as Brian has said.

David N. Watson: So, you know, when you look at things, I think it's clearly competitive, as we've talked about. One other factor that enters into it: in some cases, in certain segments, you know, there are some people that revert back to mobile only. That can happen.

David N. Watson: [music].

David N. Watson: So there's a variety of factors that can enter into it. But overall, as a category and as a growth opportunity, you know, I'm quite optimistic about broadband. Hey, Jonathan, let me start on segmentation, and Dave probably wants to chime in as well.

Jason S. Armstrong: So now, I think what's interesting and exciting about it is it's a dedicated sort of flanker brand strategy. We've had prepaid offers in the past sort of wedged into our existing portfolio. This is a more dedicated and branded strategy around it. By the way, the branding around this has worked very well in our UK market for Sky. It's actually where the brand name came from.

Jason S. Armstrong: And so we expect this to have some resonance. I would point out, if you look at where it's sort of targeted, we've got a 100-meg offer for $30. It's inclusive of taxes, fees, and equipment.

Jason S. Armstrong: We've got a $45 offering that's 200 megs and is inclusive as well. Very competitive versus fixed wireless, right, that is in this range, maybe slightly higher, without the same reliability and ubiquity that we have. Yeah, just adding on to that, Jonathan, but again, we've been doing prepaid broadband for a while, for years, and we needed to refresh it, needed to update it, and put it in a more competitive position. The prepaid mobile is new, and now TV is relatively new, but it's a segmented approach, and if you think about, you know, it's all in the price, it's very simple, it's really easy, there are no contracts, no credit checks, customers can sign up, pause, and cancel online anytime. It's a very straightforward, but, you know, a feature-light product. As we keep This just gives us a brand, gives us a product suite to be able to clearly define segmentation in a way that we can manage.

David N. Watson: Thanks, Jonathan, and we want to thank everyone on the call for joining us this morning. That concludes the question and answer session and today's conference call. A replay of the call will be available starting at 11: 30 a.m. Eastern Time today on Comcast Investor Relations' website.

Operator: Thank you for participating. You may all disconnect. ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music, ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Good morning, ladies and gentlemen, and welcome to Comcast's first quarter earnings conference call. At this time, all participants are in a listen-only mode.

Marci Ryvicker: Please note this conference call is being recorded. I'll now turn the call over to Executive Vice President, Investment Relations, Ms. Marci Ryvicker. Please go ahead, Ms. Ryvicker.

Michael J. Cavanagh: Thank you, Operator, and welcome, everyone. Joining us on today's call are Brian Roberts, Mike Cavanagh, Jason Armstrong, and Dave Watson. I will now refer you to Slide 2 of the presentation accompanying this call, which can also be found on our Investor Relations website and which contains our Safe Harbor disclaimer. This conference call may include forward-looking statements subject to certain risks and uncertainties. In addition, during this call, we will refer to certain non-GAAP financial measures. Please see our 8K and trending schedule issued earlier this morning for the reconciliations of these non-GAAP financial measures to GAAP. With that, I'll turn the call over to Mike. Thanks, Marci. And good morning, everyone.

Michael J. Cavanagh: [music].

Michael J. Cavanagh: The investments we are making to increase capacity and incorporate multi-gigabit symmetrical speeds everywhere we offer service put us in a great position to capitalize on these very favorable consumer trends, and when combined with our rapid footprint expansion, set us up to gain market share and return to broadband subscriber growth over time. Turning to wireless, we increased our domestic customer lines by 21% year-over-year to nearly 7 million.

Michael J. Cavanagh: Yet with wireless penetration in our residential broadband customer base still only 11%, we have plenty of room to grow. We continue to see the benefit of bundling broadband and mobile, which decreases churn and improves customer lifetime value. Our customers also benefit by being connected to our Wi-Fi network, which is the largest in the nation. In fact, 90% of all Xfinity mobile traffic is delivered over Wi-Fi, not cell phone, and we are constantly adding new features to further differentiate the experience.

Speaker Change: Good morning, ladies and gentlemen, and welcome to Comcast first quarter earnings Conference call. At this time, all participants are in a listen only mode.

Michael J. Cavanagh: Now, the Internet and mobile will be particularly helpful to those Americans impacted by the end of ACP, bringing them another option for affordable, reliable connectivity and supplementing our Internet Essentials Program, which we offer to eligible households as part of our longstanding commitment to help close the digital divide in America.

Michael J. Cavanagh: Please note that this conference call is being recorded.

Michael J. Cavanagh: Now turn the call over to executive Vice President Investor Relations Ms. Martie <unk>. Please go ahead Ms. Rebecca.

Michael J. Cavanagh: <unk> may include forward looking statements subject to certain risks and uncertainties. In addition, during this call we will refer to certain non-GAAP financial measures. Please see our 8-K and trending schedules issued earlier. This morning for the reconciliations of these non-GAAP financial measures to GAAP with that I'll turn the call over to Mike.

Speaker Change: Thanks, Marcy and good morning, everyone across the company our team is managing extremely well in a highly competitive and evolving marketplace.

Michael J. Cavanagh: We have a clear vision for how we're going to compete now and into the future combined with a sharp focus on execution.

Michael J. Cavanagh: Equally important our disciplined capital allocation strategy, coupled with our strong balance sheet puts us in an enviable position relative to our peers to invest organically and aggressively in our six scaled and diverse growth businesses, namely residential broadband wireless business services.

Michael J. Cavanagh: Theme Parks studios and streaming.

Michael J. Cavanagh: These businesses comprise more than 55% of the company's total revenue today and that proportion will only grow over time.

Michael J. Cavanagh: Together with our three current gates in Orlando, EPIC will enable us to offer a full week's vacation experience to even more guests. Moving to studios, we're incredibly proud of our film team and our recent ranking as the number one global studio by worldwide box office and winner of eight Academy Awards, including Best Picture for Christopher Nolan's Oppenheimer. On the back of our fantastic performance in 2023, the power of our studios continued this quarter with the theatrical release of Kung Fu Panda 4, which has grossed over $480 million in worldwide box office to date.

Michael J. Cavanagh: In the first quarter. These businesses generated a high single digit increase in revenue on a trailing 12 month basis.

Michael J. Cavanagh: And when combined with our substantial share repurchase activity enabled us to deliver double digit adjusted EPS growth.

Michael J. Cavanagh: As well as significant growth in free cash flow per share.

Michael J. Cavanagh: In fact since 2018, we grew adjusted EPS over 50% and free cash flow per share nearly 25%.

Michael J. Cavanagh: Now for some of the highlights of the first quarter I'll start with broadband.

Michael J. Cavanagh: The broadband market remains extremely competitive, particularly within the market for more price conscious consumers, we continue to be intensely focused on segmentation.

Michael J. Cavanagh: <unk> customers with options that meet both their lifestyle and budget.

Michael J. Cavanagh: Fortunately, we are striking the right balance between <unk> and subscribers, which is clearly reflected in our first quarter results, where despite modest subscriber losses ARPA grew over 4% driving mid single digit growth in our residential broadband revenue to over $6 $5 billion.

Michael J. Cavanagh: Finally, in media, we are successfully managing the segment as one business across linear and streaming. By providing the tens of millions of traditional pay TV subscribers, as well as streamers, with choice in how they engage with us, we continue to generate a significant audience for our programming, including big events like the Olympics, Sunday Night Football, and Big Ten, and top entertainment shows like Saturday Night Live and Law & Order.

Michael J. Cavanagh: We continue to see extremely encouraging broadband consumption trends across our base of 32 million customers.

Michael J. Cavanagh: Usage on our network rose double digits year over year with broadband only households, consuming over 700 gigabytes of data each month.

Michael J. Cavanagh: Our exclusively streamed NFL wildcard game was a big success this past quarter. We added and then retained even more new Peacock subscribers than we expected. Overall, people are staying with us to engage in a broad range of content, spending 90% of their time on the platform viewing non-sports programs. This includes scripted shows like Ted and reality shows like The Traitor, both of which ranked within Nielsen's Streaming Top 10, and our award-winning collection of films, like Oppenheimer, which premiered exclusively on Peacock in February and was the most-watched film across all streaming in its first seven days on the platform.

Michael J. Cavanagh: We believe the consumers' expectations for their broadband experience in terms of speed reliability security and performance will only increase over time.

Michael J. Cavanagh: Clearly, Peacock has been on a great trajectory since our launch four years ago, with 34 million paid subscribers, having grown 12 million year over year, and at a $10 RPI. Looking ahead, our content offering provides such a great value proposition that we should have some real pricing power over time. Of course, sports also play an important role in our media business, and that's especially true this year. Following the Kentucky Derby in May, we'll have the Paris Olympics for 17 nights this summer.

Michael J. Cavanagh: Overtime.

Michael J. Cavanagh: Turning to wireless we increased our domestic customer lines by 21% year over year to nearly $7 million, yet with wireless penetration of our residential broadband customer base still only 11% we have plenty of room to grow we continue to see the benefit of bundling broadband and mobile which decrease.

Michael J. Cavanagh: With more programming hours on the NBC broadcast network than any previous Olympics and over 5,000 hours of live coverage on Peacock, the games are on track to generate the most advertising revenue in history, with $1.2 billion in ad sales commitment. Right after the Olympics, we have the return of football, with Big Ten, Sunday Night Football, and the NFL's first ever Friday night opening game from Sao Paulo, streaming exclusively on Peacock. So, wrapping up, I'm really proud of the work that our teams across the company are doing. Together, we're executing at the highest level and positioning ourselves for growth in a challenging and dynamic marketplace. So Jason, it's over to you.

Speaker Change: As churn and improves customer lifetime value.

Speaker Change: Our customers also benefit by being connected to our Wi Fi network, which is the largest in the nation. In fact, 90% of all Xfinity mobile traffic is delivered over Wi Fi not cellular and we are constantly adding new features to further differentiate the experience. The most recent example is our introduction of Wi Fi.

Speaker Change: Boost which enables any xfinity mobile customer to experience speeds of up to a gig whenever they connect to our 23 million hotspots at no additional cost.

Jason: Across our connectivity and platforms business, we're focused on profitably serving each segment of the market from our premium and traditional customers, who want fully featured products to more price driven consumers.

Speaker Change: With regard to the latter we're introducing now a new brand and product portfolio targeting the prepaid market.

Jason S. Armstrong: It delivers high quality low cost internet mobile and streaming television products with simple all in pricing now.

Speaker Change: Now Internet and mobile will be particularly helpful to those Americans impacted by the end of ACP, bringing them another option for affordable reliable connectivity and supplementing our Internet Essentials program, which we offer to eligible households, as part of our long standing commitment to help close the digital <unk>.

Speaker Change: In America.

Speaker Change: Turning to content and experiences let's start with parks.

Speaker Change: We continued to see strong underlying demand in both Hollywood and Japan were healthy attendance and per cap levels were once again driven by the success of Super Nintendo World.

Jason S. Armstrong: Building on our momentum later this year, we're opening our newest Nintendo themed land Donkey Kong country, which will increase the size of Super Nintendo World in Japan by 70%.

Jason S. Armstrong: Switching gears to Orlando, we started to feel some pressure on attendance levels late in the first quarter, which tends to occur in tandem with the ebbs and flows of new attractions in the market right now we happen to be lapping the multiyear surge in attendance from our opening of new attractions in prior periods, but we remain confident about.

Jason S. Armstrong: Now let's go through our business results, starting on slide five with connectivity and platform. Note that our largest foreign exchange exposure is to the British pound, which was up 4% year-over-year. So, as usual, in order to highlight the underlying performance of the connectivity and platforms business, I will refer to year-over-year growth on a constant currency basis. Revenue for total connectivity and platforms was flat at $20.3 billion, reflecting strong growth in connectivity revenues offset mainly by declines in video revenue.

Jason S. Armstrong: Our longer term growth opportunities, especially as we look ahead to next year with the opening of epic universe.

Jason S. Armstrong: With three new hotels, and five immersive worlds featuring more than 50 attractions entertainment dining and shopping experiences it will be the most technologically advanced park in the world together with our three current gates in Orlando Epic will enable us to offer a full week's vacation experience to even more guests.

Jason S. Armstrong: Moving to studios, we're incredibly proud of our film team and our recent ranking as the number one global studio by worldwide box office and winner of eight Academy Awards, including Best Picture for Christopher Nolan Oppenheimer.

Jason S. Armstrong: On the back of our fantastic performance in 2023, the power of our studios continued this quarter with the theatrical release of Kung Fu Panda, four which has grossed over $480 million in worldwide box office to date, and we have an exciting slate still ahead for the third year in a row, where release more and more.

Jason S. Armstrong: <unk> than any other major studio with the fall Guy an action thriller starring Ryan Gosling and Emily Blunt coming this may Despicable me for illuminations newest installment of this highest grossing animated franchise as well as our adaptation of twisters, both to viewing in July and Wicked one.

Jason S. Armstrong: Bandwidth requirements and engagement are increasing at a rapid clip, while the vast majority of our customers are now on speeds of 500 megabits or higher and are adopting advanced tiers of service, like X5 Complete, at a higher rate. But, as Mike mentioned, it continues to be a very competitive environment. And we lost 65,000 subscribers in the first quarter, following the loss of 34,000 subscribers in the fourth quarter of 2023. As we sit here right now, we do not see this trend improving in the near term. We expect churn could be elevated given the end of ACP, which is only fully funded through April and partially funded through May.

Jason S. Armstrong: Most highly anticipated movies of 2024 coming in November.

Jason S. Armstrong: Finally in media, we are successfully managing the segment as one business across linear and streaming by providing the tens of millions of traditional pay TV subscribers as well as streamers with choice in how they engage with US we continue to generate significant audience for our programming big events like the Olympics Sunday night.

Jason S. Armstrong: Football Big 10 top entertainment shows like Saturday Night live and law and order with strong consumer demand for our content, we are well positioned to evolve with the changing market.

Jason S. Armstrong: Our exclusively streamed NFL wild card game was a big success. This past quarter, we added and then retained even more new peacock subscribers than we expected overall people are staying with us to engage in a broad range of content spending 90% of their time on the platform viewing non sports.

Jason S. Armstrong: We remain in constant communication with our ACP customers and will continue to be diligent in helping this customer segment stay connected through various options, whether that's our successful Internet Essentials program or our new prepaid now offerings, as Mike described. In addition, I want to remind you that the second quarter also tends to experience seasonal headwinds. Well, it's a competitive market, especially for the price-driven segment. We will continue to compete aggressively, yet in a financially balanced way, and expect to drive healthy broadband revenue growth through growth in ARPU, which we expect to remain well within our historical range of 3% to 4% growth, even as we manage through the ACP transition.

Jason S. Armstrong: <unk> this.

Jason S. Armstrong: This includes scripted shows like Ted and reality shows like the traders both of which ranked within Nielsen streaming top 10, and our award winning collection of films like Oppenheimer, which premiered exclusively on Peacock in February and was the most watched film across all streaming in its first seven days on the platform.

Jason S. Armstrong: Clearly peacock has been on a great trajectory since our launch four years ago. We're at 34 million paid subscribers, having grown $12 million year over year and at a $10 ARPA.

Jason S. Armstrong: Looking ahead, our content offering provides such a great value proposition that we should have some real pricing power over time.

Jason S. Armstrong: Of course sports also play an important role in our media business and that's especially true. This year. Following the Kentucky Derby in May we will have the Paris Olympics for 17 nights. This summer with more programming hours on the NBC broadcast network than any previous Olympics and over 5000 hours of live coverage on Peacock.

Jason S. Armstrong: Turning to domestic wireless, revenue growth of 13% was due to higher service revenue driven by a 21% year-over-year increase in our customer lines, ending the quarter at $6.9 million in total, including the 289,000 lines we just added in the quarter. We are consistently in the marketplace, testing new offers, including some recent new pricing plans targeted at multi-line customers, the new Now mobile product, as well as our buy one, get one line off.

Jason S. Armstrong: The games are on track to generate the most advertising revenue in history with $1 $2 billion in AD sales commitments.

Speaker Change: Right. After the Olympics, we have the return of football with Big 10 Sunday Night football and the NFL <unk> first ever Friday night opening game from Sao Paulo streaming exclusively on Peacock, So wrapping up I'm really proud of the work that our teams across the company are doing together, we're executing at the highest less.

Jason S. Armstrong: <unk> and positioning ourselves for growth in a challenging and dynamic marketplace. So Jason over to you.

Jason S. Armstrong: <unk> digit rate over the past 12 months.

Jason S. Armstrong: While EBITDA was in line with prior year's level at $9 4 billion, we generated a high level of free cash flow. This quarter at $4 5 billion and we returned $3 6 billion of capital to shareholders, including $2 4 billion in share repurchases and over the last 12 months, we have reduced our share count by nearly 6% contributing to our.

Jason S. Armstrong: The S&B market has become more competitive, but we'll aggressively defend our position, and similar to this quarter, we'll grow revenue by increasing ARPU, driven by higher adoption of additional products like Mobile, Security Edge, Connection Pro, and Wi-Fi Pro and through targeted rate opportunities. Meanwhile, our momentum continues to build in mid-market and enterprise, as our expanding capabilities in managed services, wide-area networking, and cybersecurity have led to increasing customer wins and the expansion of existing relationships. The strong growth in our connectivity businesses was offset by a decline in video and other revenue. The decline in our video revenue was driven by continued customer losses and slower domestic ARPU growth versus last year.

Jason S. Armstrong: Adjusted EPS growth in the quarter, a 14% now let's go through our business results starting on slide five with connectivity and platforms.

Jason S. Armstrong: Note that our largest foreign exchange exposure is to the British pound, which was up 4% year over year. So as usual in order to highlight the underlying performance of the connectivity and platform business I will refer to year over year growth on a constant currency basis revenue.

Jason S. Armstrong: Revenue for total connectivity and platforms was flat at 23 billion, reflecting strong growth in connectivity revenues offset mainly by declines in video revenue residential connectivity revenue grew 7% driven by 4% growth in domestic broadband 13% growth in domestic wireless and 19%.

Jason S. Armstrong: And the lower other revenue reflects continued customer losses in wireline voice. As I mentioned earlier, Connectivity and Platform's total EBITDA increased 1.3%, with a margin of 50 basis points, reflecting a decline in overall expenses driven by the mixed shift to our high-margin connectivity businesses combined with a continued focus on expense management. While margins for our domestic legacy cable business improved even more, our international business was impacted by a reclassification of some expenses from capitalized software to operating expenses, creating a tough comparison to last year. We will see a similar trend until we start to lap this change at the end of this year.

Jason S. Armstrong: <unk> and international connectivity, while business services connectivity revenue grew 5%.

Jason S. Armstrong: In domestic broadband our revenue growth was driven by very strong ARPA, which increased four 2% and came in a bit above our historical range.

Jason S. Armstrong: Our team is doing an excellent job of customer segmentation, while balancing rate and volume and we are encouraged by the positive consumer behavior trends, we see in our base of 32 million customers bandwidth requirements and engagement are increasing at a rapid clip while the vast majority of our customers are now on speeds of 500 megabits or higher.

Jason S. Armstrong: And adopting advanced tiers of service like XY complete at a higher rate.

Jason S. Armstrong: I'll note that absent this change, EBITDA growth in the first quarter would have been about a point higher, and our margin improvement would have been about 50 basis points higher. While this change increased our operating expenses this quarter, there was an offsetting decline in connectivity and platform capital, resulting in a neutral impact on net cash flow, which was up 5% this quarter. Breaking out our connectivity and platforms EBITDA results further, residential EBITDA grew 1.1%, with margins improving 60 basis points to 38.3%, and Business Services EBITDA growth was lower than our typical mid-single-digit level at 2.6%, with margins declining 160 basis points to 56.7%.

Jason S. Armstrong: But as Mike mentioned it continues to be a very competitive environment and we lost 65000 subscribers in the first quarter. Following the loss of 34000 subscribers in the fourth quarter of 2023.

Jason S. Armstrong: As we sit here right now we do not see this trend improving in the near term, we expect churn could be elevated given the end of ACP, which is only fully funded through April and partially funded through may we remain in constant communication with our ACP customers and will continue to be diligent in helping this customer segment stay connected through various options.

Jason S. Armstrong: Whether that's our successful Internet essentials program or our new prepaid now offerings as Mike described in.

Jason S. Armstrong: In addition, I want to remind you that the second quarter also tends to experience seasonal headwinds wallets.

Jason S. Armstrong: These results include significant investments in the enterprise space, including in sales and fulfillment, that we are making to drive future revenue growth. Business Services generates well over $5 billion in annual EBITDA, which is margin accretive, and we expect it to continue to be a material contributor to overall connectivity and platforms growth this year and over the longer term. Now, let's turn to content and experiences on slide six. Overall, revenue increased 1% to $10.4 billion, and EBITDA decreased 7% to $1.5 billion.

Jason S. Armstrong: While it is a competitive market, especially for the price driven segment. We will continue to compete aggressively yet and are financially balanced way and expect to drive healthy broadband revenue growth through growth in <unk>, which we expect to remain well within our historical range of 3% to 4% growth even as we manage through the ACP transition.

Jason S. Armstrong: Turning to domestic wireless revenue growth of 13% was due to higher service revenue driven by a 21% year over year increase in our customer lines ending the quarter at $6 9 million in total, including the 289000 lines. We just added in the quarter.

Jason S. Armstrong: We are consistently in the marketplace testing new offers including some recent new pricing plans targeted multiline customers, the new now mobile product as well as our buy one get one line offer.

Jason S. Armstrong: We continue to see significant opportunity in wireless to increase the penetration of our domestic residential broadband customer base, which currently sits at 11% and to sell additional lines per account.

Jason S. Armstrong: International connectivity revenue reflects strong growth in broadband revenue driven by solid <unk> growth as well as growth in wireless due to additional customer lines and also higher RPM.

Jason S. Armstrong: For business services connectivity, we generated 5% revenue growth driven by higher <unk> and small business and broader growth in both customers and additional solutions for mid market and enterprise.

Jason S. Armstrong: The SMB market has gotten more competitive, but we will aggressively defend our position and similar to this quarter, we will grow revenue by increasing <unk> driven by higher adoption of additional products like mobile security edge connection pro and Wi Fi pro and through targeted rate opportunities. Meanwhile, our momentum continues to build in.

Jason S. Armstrong: We are seeing some pullback from the unprecedented attendance we realized immediately after the pandemic, which we believe is driven by the timing of new attraction openings and some increased competition from other entertainment venues, notably cruises. At Media, which includes our TV networks and Peacock, revenue increased 4% as Peacock's strong growth of 54% more than offset a low single-digit decline at our linear network. Distribution revenue growth of 7% was driven by Peacock, with subscription revenue growth of 68%, powered by a 55% year-over-year increase in our paid subscriber base to 34 million, including 3 million net ads in the first quarter. We are really pleased with Peacock's trajectory.

Jason S. Armstrong: Mid market and enterprise as our expanding capabilities and managed services wide area networking and cyber security have led to increasing customer wins and the expansion of existing relationships. The.

Jason S. Armstrong: The strong growth in our connectivity businesses was offset by a decline in video and other revenue the decline in our video revenue was driven by continued customer losses and slower domestic ARPA growth versus last year and the lower other revenue reflects continued customer losses in wireline voice.

Jason S. Armstrong: As I mentioned earlier connectivity and platforms total EBITDA increased one 3% with margin up 50 basis points, reflecting a decline in overall expenses driven by the mix shift to our high margin connectivity businesses combined with a continued focus on expense management.

Jason S. Armstrong: We started the year with an incredibly successful NFL wild card game, which resulted in a nice lift in paid subscribers, but even more important was how our broad content offering enabled strong consumer acquisition, retention, and engagement. We've had success across a broad range of content during the quarter, including films moving into our pay-one window like Oppenheimer, the most-watched pay-one film in Peacock's history, and The Holdovers, as well as successful originals including Apple's Never Fall, Ted, and the second season of The Traitor. Looking ahead, we'll continue to be focused on retention, particularly in the second quarter.

Jason S. Armstrong: While margins for our domestic legacy cable business improved even more our international business was impacted by a reclassification of some expense from capitalized software to operating expenses, creating a tough comparison to last year, we will see a similar trend until we start to lap. This change at the end of this year I'll note that absent this change <unk>.

Jason S. Armstrong: EBITDA growth in the first quarter would have been about a point higher and our margin improvement would have been about 50 basis points higher.

Jason S. Armstrong: While this change increased our operating expenses. This quarter, there was an offsetting decline in connectivity and platforms capital, resulting in a neutral impact on net cash flow, which was up 5% this quarter.

Jason S. Armstrong: As we look forward to the second half of the year, we will have a substantial amount of acquisition-oriented content lined up. This is consistent with Peacock's historical trends, and this year is expected to be driven by the Olympics this summer and the NFL and Big Ten returning in the fall, in addition to the steady stream of films landing on our pay-per-view window, as well as originals. Finally, domestic advertising revenue was flat in the quarter, reflecting a stable overall market with strong advertising growth at Peacock, offset by lower advertising revenue at our linear network.

Jason S. Armstrong: Breaking out our connectivity and platforms EBITDA results further residential EBITDA grew one 1% with margins improving 60 basis points to 38, 3%.

Jason S. Armstrong: And business services EBITDA growth was lower than our typical mid single digit level at two 6% with margins declining 160 basis points to 56, 7%. These.

Jason S. Armstrong: Media EBITDA decreased 6%, reflecting revenue pressure on our linear networks, partially offset by continued year-over-year improvement in PCOC EBITDA losses, even with the addition of the wildcard rights. And we expect to see, on average, even better year-over-year improvement for Peacock in the coming quarters. At studios, the revenue decline of 7% reflects lower content licensing, which was impacted by the timing of deliverables related to our film licensing business, which was partially offset by a modest increase in theatrical revenue driven by the strong performance of Kung Fu Panda 4 at the box office this quarter. Studio's EBITDA declined 12%, reflecting the difficult comparison to last year's film slate, including the highly successful carryover title, Puss in Boots: Last Wish, and the timing of licensing deals at film.

Jason S. Armstrong: These results include significant investments in the enterprise space, including in sales and fulfillment that we are making to drive future revenue growth business services generate well over $5 billion in annual EBITDA, which is margin accretive and we expect it to continue to be a material contributor to overall connectivity and platforms growth this year and over.

Jason S. Armstrong: The longer term.

Jason S. Armstrong: Now, let's turn to content and experiences on slide six overall revenue increased 1% to $10 4 billion and EBITDA decreased 7% to $1 5 billion let's.

Speaker Change: Let's take a closer look at the details.

Jason S. Armstrong: Starting with theme parks revenue increased 2%, while EBITDA decreased 4% for the quarter. These results.

Jason S. Armstrong: <unk> reflect the negative impact of currency as the Japanese yen is at a 34 year low against the dollar.

Jason S. Armstrong: Adjusting the results to exclude the impact of foreign currency Parks' revenue would have increased 5% and EBITDA would have been flat compared to last year's first quarter.

Jason S. Armstrong: Now I'll wrap up with free cash flow and capital allocation on slide 7. As I mentioned previously, we generated $4.5 billion in free cash flow this quarter, and we achieved this even with the significant investments we continue to make to support our growth drivers. Specifically, our $3.3 billion in total capital spending this quarter incorporates our efforts in expanding our footprint and further strengthening our domestic broadband network, scaling our streaming business, and supporting the continued build of our Epic Universe theme park ahead of its 2025 opening.

Jason S. Armstrong: We had strong underlying growth at our park in Osaka, which continues to benefit from demand for Super Nintendo World. We're also seeing growth in Hollywood. Despite lapping the opening of Super Nintendo World in that park during the quarter.

Jason S. Armstrong: <unk> results were relatively flat in what is typically a seasonally light quarter and Orlando results were below last year, but still roughly in line with pre pandemic levels. We are seeing some pullback from the unprecedented attendance we realized immediately after the pandemic, which we believe is driven by the timing of new attraction openings and some increased comp.

Jason S. Armstrong: Petition from other entertainment venues, notably cruises.

Jason S. Armstrong: And working capital was a $940 million drag for the quarter, a significant improvement over last year, a lot of which is timing-related. Turning to return of capital. For the quarter, we returned a total of $3.6 billion to shareholders, an increase of 13% year-over-year.

Jason S. Armstrong: At media, which includes our TV networks, and Peacock revenue increased 4% as peacock strong growth of 54% more than offset a low single digit decline at our linear networks.

Jason S. Armstrong: Distribution revenue growth of 7% was driven by Peacock with subscription revenue growth of 68% powered by the 55% year over year increase in our paid subscriber base to $34 million, including 3 million net adds in the first quarter.

Jason S. Armstrong: This includes share repurchases of $2.4 billion and dividend payments of $1.2 billion. Putting it all together, in the last 12 months, we've returned over $16 billion in capital to shareholders between share repurchases and dividends, reducing our share count by nearly 6%. At the same time, we invested nearly $17 billion back into our businesses in the form of capital and working capital, carefully and consistently balancing reinvesting in our businesses for growth, returning significant capital to shareholders, and doing so with a very strong balance sheet, which facilitates this consistency through a variety of operating environments.

Jason S. Armstrong: We are really pleased with peacocks trajectory, we started the year with an incredibly successful NFL wild card game, which resulted in a nice lift to paid subs, but even more important with how our broad content offering enabled strong consumer acquisition retention and engagement.

Jason S. Armstrong: We've had success across a broad range of content during the quarter, including films moving into our pay one window like Oppenheimer. The most watched pay one film and peacocks history, and the holdovers as well as successful original is including Apple's never fall, Ted and the second season of the traders.

Jason S. Armstrong: Now, I will turn it over to Marci for Q&A. Thanks, Jason. Operator, let's open up the call for Q&A, please. Thank you. We will now begin the question and answer session. If you have a question, please press star, then the number one on your touchtone phone. If you wish to be removed from the queue, please press star and the number 2. If you're using a speakerphone, you may need to pick up the handset first before pressing the number.

Speaker Change: Looking ahead, we will continue to be focused on retention, particularly in the second quarter as we look forward to the second half of the year, we would have a substantial amount of acquisition oriented content lined up.

Marci Ryvicker: This is consistent with <unk> historical trends and this year is expected to be driven by the Olympics. This summer and the NFL and Big 10, returning in the fall. In addition to the steady stream of films landing on our pay one window as well as upcoming originals.

Marci Ryvicker: Again, if there are any questions, press star, then number one on your touchtone phone. Our first question today is coming from Ben Swinburne from Morgan Stanley. Your line is now live. Thanks. Good morning.

Marci Ryvicker: Finally, domestic advertising revenue was flat in the quarter, reflecting a stable overall market with strong advertising growth at Peacock offset by lower advertising revenue at our linear networks.

Benjamin Daniel Swinburne: Two questions, maybe for Dave on the cable side, could you talk maybe a little bit bigger picture about customer segmentation, particularly some of the new efforts around prepaid and the Now brand, as well as some of the speed boosts you've done and just how you think about that impacting the business over time, and then if you're willing to give us a little more on how you are able to deliver ARPU growth. You know, within the historical range through this ACP transition, just given, obviously, these subsidies are going away.

Benjamin Daniel Swinburne: Media EBITDA decreased 6%, reflecting the revenue pressure on our linear networks, partially offset by continued year over year improvement in Peacock EBITDA losses, even with the addition of the wildcard rights costs and.

Benjamin Daniel Swinburne: And we expect to see on average even better year over year improvement for Peacock in the coming quarters.

Benjamin Daniel Swinburne: At studios the revenue decline of 7% reflects lower content licensing, which was impacted by the timing of deliverables related to our film licensing business, which was partially offset by a modest increase in theatrical revenue driven by the strong performance of Kung Fu Panda four at the box office this quarter studios.

Benjamin Daniel Swinburne: And then I think for Jason, you know, we expect EBITDA growth this year, and free cash flow growth this year. You guys had a nice free cash flow first quarter. I guess I would have expected buybacks to grow as well year on year. And as you point out on that last slide, you know, trailing 12 months, 11 and a half billion, two and a half in the first quarter. So it looks like it's slowing down a bit. So I'm just wondering if there's anything that's changed on sort of the capital allocation leverage math that we should be thinking about with Comcast this year. Thanks, everyone. Hey, Ben, Dave.

Benjamin Daniel Swinburne: EBITDA declined 12%, reflecting the difficult comparison to last year's film slate, including the highly successful carryover title plus in boots last wish and the timing of licensing deals that film.

Benjamin Daniel Swinburne: Now I'll wrap up with free cash flow and capital allocation on slide seven.

David N. Watson: So let me start with segmentation and give you a little bit more context. So stepping back, you know, our segmentation strategy is really key. Starts with, though, the beginning point for us is always premium and traditional broadband customers. We've, you know, focused there and invested in terms of better networks, better products around providing a better service for the premium segment. We have, though, consistently competed for, you know, all segments.

David N. Watson: Our streaming business and supporting the continued build of our epic Universe theme Park ahead of its 2025 opening.

David N. Watson: And working capital was 940 million dollar drag for the quarter, a significant improvement over last year, a lot of which is timing related.

David N. Watson: Turning to return of capital for the quarter. We returned a total of $3 6 billion to shareholders an increase of 13% year over year. This includes share repurchases of $2 4 billion and dividend payments of $1 2 billion.

David N. Watson: And as we break it down, you know, we've focused on where we think the main point is where broadband is going. And where broadband is going is in the engagement. And so our focus is to continue to deliver multi-gigabit symmetrical and build towards that point. And we do this for a variety of Internet options. So, and the proof is in the pudding in terms of segmentation, in that 70% of our HSD-only customers receive speeds of 500 megabits per second or higher. In a third of our customers, Resi customers receive gig plus. So it never has been one size fits all.

David N. Watson: Putting it all together in the last 12 months, we've returned over $16 billion in capital to shareholders between share repurchases and dividends, reducing our share count by nearly 6% at the same time, we invested nearly $17 billion back into our businesses in the form of capital and working capital carefully and consistently balancing.

David N. Watson: <unk> in our businesses for growth returning significant capital to shareholders and doing so with a very strong balance sheet, which facilitates this consistency through a variety of operating environments.

David N. Watson: There's a start there and the focus on premium, but there's currently a lot of activity at the low end of the market. And we've not been as competitive in this space. We have had great products, you know, and several options, but we, in the prepaid area in particular, believe there is an opportunity to improve our effectiveness there. And so, thus, now, and now, there are three components of now.

David N. Watson: Now, let me turn it over to Marcy for Q&A.

Speaker Change: Thanks, Jason operator, let's open up the call for Q&A. Please.

Speaker Change: Thank you we will now begin the question and answer session.

David N. Watson: If you have a question. Please press Star then the number 100 touchtone phone.

David N. Watson: If you wish to be removed from the queue. Please press star and the number two.

David N. Watson: If youre using a speakerphone you may need to pick up the handset first before pressing the numbers. Once again, if there are any questions Press Star then the number one on your Touchtone phone.

David N. Watson: Our first question today is coming from Ben Swinburne from Morgan Stanley. Your line is now live.

Speaker Change: Thanks, Good morning.

David N. Watson: Two questions maybe for Dave on the cable side could you talk maybe bigger picture about customer segmentation, particularly some of the new efforts around prepaid and then now brand as.

David N. Watson: As well as some of the speed boost you've done and just how you think about that impacting the business over time, and then if you're willing to give us a little more on how you are able to deliver ARPA growth.

David N. Watson: The historical range through this a CP transition just given obviously the subsidy is going away.

David N. Watson: And then I think for Jason we expect EBITDA growth. This year free cash flow growth. This year, you guys had a nice free cash flow first quarter I.

Speaker Change: I guess I would've expected buybacks to grow as well year on year and as you point out on that last slide.

David N. Watson: I feel very good about that. Unknown Attendee, You know, this is a strength that we've had. We've been balancing ARPU growth along with share volume for a very long time. So, I feel good about this quarter, which came in very strong at 4.2%, a bit above the historical 3 to 4% range. You know, it's a very competitive marketplace, to say the least, and we're just striking the right balance, we think, in volume and rate.

Speaker Change: Trailing 12 months 11, 5 billion, two and a half in the first quarter. So it looks like it is slowing a bit. So I was wondering if you could comment if there's anything that's changed.

Speaker Change: The capital allocation leverage math that we should be thinking about with Comcast this year. Thanks.

Speaker Change: Thanks, everyone.

Speaker Change: Hey, Ben Dave So, let me start with segmentation and a little bit more context on now so stepping back our segmentation strategy is really key starts with though the beginning point always for us is premium and traditional broadband customers.

David N. Watson:

David N. Watson: And our approach is, you know, a reasonable rate increase. The teams have managed this well, leading to rate yield results that have exceeded our expectations a bit. But also, it goes back to the first point, you know; we're segmenting the marketplace and tailoring product approaches that meet each, you know, specific segment. So, it starts with the high end that I've talked about, and it's very focused there, and the results that I've talked about. So, that's the starting point.

David N. Watson: The focus there and invested in terms of better network better products around providing a better service for the premium segment.

David N. Watson: We have consistently competed for all segments and as we break it down.

David N. Watson: We've.

David N. Watson: Focused where we think the main point is where broadband is going.

David N. Watson: Broadband is going is the engagement and so our focus is to continue to deliver multi gig symmetrical and build towards that point.

David N. Watson: But when you look at our longstanding approach to pricing and packaging, you know, we're going to compete for every segment. And it's really focused, though, on where the market is going and making sure that in the long run, as overall usage goes up, and to me, that is the main point. You have double-digit increases in terms of overall broadband consumption. You have lots of customers, a lot of interest in the high end of our portfolio, and strength in a ubiquitous, reliable, great network that can stand up for every segment but power through every application that is there.

David N. Watson: So and do this for a variety of internet options. So.

David N. Watson: Art and the proof is in the pudding in terms of segmentation in that 70% of our HST.

David N. Watson: The only customers receive speeds of 500, megabits per second or higher than a third of our customers <unk> customers received gig plus so it never has been one size fits all start there and the focus of premium but there is currently a lot of activity at the low end of the market.

David N. Watson: And we've not been as competitive in this space, we've had great products.

David N. Watson: And several options, but we in the prepaid area in particular, we believe there is an opportunity to improve our effectiveness there and so thus now and now there are three components of now one is prepaid broadband which by the way we've had.

David N. Watson: So, I think that, you know, for us, we're pleased with ARPU, and I think we can, you know, muscle through this ACP thing and feel good about the guidance that we've been giving, that 3 to 4 percent historical range. This is Brian.

Speaker Change: <unk> had prepaid broadband for some time, we've just approved upon the value proposition there.

Brian: So, it's our new prepaid broadband.

Brian: <unk> update and second we have prepaid now mobile which is new and then we feel that it's positioned for an alternative to fixed wireless and that just a lot of activity there and the focus there is no credit checks it's easy.

Brian L. Roberts: I just want to just underscore that last point that Dave was making. As you look with a longer lens, which I hope the company tries to do, there's... You know, we and we just even yesterday were looking at our technology roadmap internally and seeing some demonstrations of innovation. It's inspiring and exciting to think about what broadband will actually help you do in the next five, 10 years as a consumer and as a business.

Brian L. Roberts: It's a no contract.

Brian L. Roberts: And on an everyday price point, so not a lot of movement in terms of just a competitive value based price point so.

Brian L. Roberts: Yes.

Brian L. Roberts: Time, we're doing now is obviously this is a good alternative to ACP and where that goes so.

Brian L. Roberts: Early to talk about any progress, but we're real pleased with the positioning of the of the now product.

Brian L. Roberts: For the income constrained segment of the market.

Brian L. Roberts: We've had now TV for some time and traction there so it's a standalone product suite.

Brian L. Roberts: Very good about that.

Brian L. Roberts: On <unk>, yes.

Brian L. Roberts: Yes.

Brian L. Roberts: This is a strength that we've had we've been balancing.

Brian L. Roberts: ARPA growth, along with which share volume for a very long time. So feel good about this quarter came in very strong at four 2% a bit above the historical 3% to 4% range.

Jason: A very competitive marketplace to say, the least and we're just striking the right balance we think in volume and rate.

Jason: Our approach is reasonable rate increase.

Jason: The teams have managed this well.

Speaker Change: Leading to rate yield results that exceeded our expectations a bit but also it goes back to the first point you know, we're segmenting the marketplace and tailoring product approaches that meet each specific segment. So starts with the high end that I've talked about and very focused there and the results that I've talked.

Jason: About so that's the that's the starting point.

Jason: But when you look at the our longstanding approach to pricing and packaging.

Jason: We're going to compete for every segment and it's really focused though where the market's going and making sure that in the long run.

Speaker Change: The overall usage goes up and to me that that is the main point you have double digit increases in terms of overall broadband consumption.

Jason S. Armstrong: Yeah, great. And just, you think your question's specifically about, you know, ARPU and how do you go through the ACP cycle and have confidence in ARPU growth. I think all these points are relevant and valid. Number one, we continue to see usage grow at a rapid rate, so the value that the consumer's getting is higher. That's a tailwind, in general, for ARPU growth. I think number two is the segmentation that Dave talked about.

Jason: You have lots of customers a lot of interest in our high end of our portfolio and strength and a ubiquitous reliable great network that can stand up for every segment.

Jason S. Armstrong: But power through every application that is there so that I think.

Jason S. Armstrong: For US you know pleased with <unk> and I think we can muscle through this ACP thing and feel good about the guidance that we've been giving that 3% to 4% historical range. This is Brian I just wanted to just underscore that last point that Dave was making as you look.

Jason S. Armstrong: We see a lot of competition in a certain segment of our base, the value-conscious segment of our base, but segmentation allows you to keep that from seeping into other segments of the base. So that's a nice job you did executing there. The final thing I'd point out is, as we said, ACP customers have got about 1.4 million in our base that we'll need to manage through. This is very similar, though, to, if you think about how this business is wired, Dave and his team, it's promotional roll-offs. This is something we deal with every single quarter.

Jason S. Armstrong: With a longer lens, which I hoped the company tries to do there as well.

Jason S. Armstrong: And we just even yesterday, we're looking at our technology roadmap internally and seeing some demonstrations of innovation, it's inspiring and exciting.

Jason S. Armstrong: To think about what broadband will actually help you do in the next five to 10 years as a consumer and as a business and it's kind of in some levels unimaginable.

Jason S. Armstrong: Lot of discussion about AI, but so much happening.

Jason S. Armstrong: And in the entertainment sector sports sector.

Jason S. Armstrong: How do you navigate a base of customers that are on promotion and roll them into new rate plans and, you know, keep them as customers? So this is very much what the cable business is wired to do. Metrics that are associated with the credit rating, as you've seen, and as you point out, very strong free cash flow last year and an expectation for, you know, similar this year, as you mentioned, allow for substantial share repurchase activity.

Jason S. Armstrong: And also in the health care sector, and then things were not even talking about and so our strategy is pretty simple we put having now this now strategy to help consumers with a super easy on you.

Jason S. Armstrong: It's all there.

Jason S. Armstrong: And a prepaid market.

Jason S. Armstrong: The main strategy has always been to have the superior product in the market with fantastic service and constant innovation and do it in a capital way, where our investment is consistent and within the guidelines that we've previously talked about all that's happening and we're making great inroads on that end.

Jason S. Armstrong: So since we restarted the buyback in 2021, we've bought back over 15% of our share count. If you look at the last year, we bought back over 6% of our share count. So both very strong metrics. I would point out at the tail end of last year that we were pretty clear in the third quarter that we were going to accelerate the buyback, anticipating minimum floor HULU proceeds, which came in at the very end of last year.

Jason S. Armstrong: I had to pick one number this quarter that excites me it was the double digit.

Jason S. Armstrong: Growth of bits per home, which is showing that usage for whatever it is gaming.

Jason S. Armstrong: Multi streams.

Jason S. Armstrong: And then the actual high definition, becoming even higher definition overtime with the quality of the pictures. So.

Jason S. Armstrong: Hopefully all of that's useful and <unk>.

Jason S. Armstrong: Pretty pleased with how the teams executing Jason yeah, great. Thanks, So just to round that out then just how you think your question specifically on <unk> and how do you go through the Ace ACP cycle and have confidence in <unk> growth I think all of these points relevant and valid number one we continue to see usage grow at a rapid rate. So the value of the consumer is getting is higher that's a tailwind.

Jason S. Armstrong: That's in advance of more full proceeds for full value this year, but we did get a minimum floor payment last year, and hence accelerated the buyback in 3Q and 4Q to $3.5 billion. I'll just come in on the back of the question about any changes in how we think about capital allocation. I think Jason and the team are carrying on a phenomenal tradition. I've been here now for close to 10 years.

Jason S. Armstrong: In general for ARPA growth I think number two is segmentation that Dave has talked about we see a lot of competition in a certain segment of our base the value conscious segment of our basement segmentation allows you to keep that from seeping into other segments of the base and the team's done a nice job executing their final thing I would point out is as we said ACP customers, who kind of up a $1 4 million and our.

Michael J. Cavanagh: And I think the idea of taking our well-generated capital across our businesses and first and foremost investing it back into the business with a very long-term view of what the future can be, where there's an expected return, whether that's the parks business, whether that's the broadband network, whether that's streaming, whether it's just broad innovation. I think it's in our DNA at this place to try to figure out ways to invest wisely for the future while at the same time maintaining a very strong balance sheet.

Michael J. Cavanagh: Base that will need to manage through this as very similar though to if you think about how this business is wire, Dave and his team its promotional roll offs. This is something we're dealing with every single quarter. How do you navigate our base of customers, it's on promotion and roll them into new rate plans and keep them as customers. So this is very much what the cable business is wired to do.

Michael J. Cavanagh: On buyback spend I would go back over the last few years, we've had a very consistent capital allocation strategy, starting with reinvesting in our business layered into protecting the balance sheet, we really like our current credit rating and have committed to.

Michael J. Cavanagh: And we like the way the balance sheet is set up. When you go through these long arcs of change across industries with disruption, it allows you to sleep better at night knowing the strength of the balance sheet we have and allows us to continue making those earlier investments. And then, to do those two things together with the very substantial interest on the part of the management team and, you know, the fact that we've done it to just get lots of capital return to shareholders, not many companies are inclined to manage those three priorities as much as we are. And I can commit that that's where our head is as we look forward to the next 10 years. Thanks, everyone.

Michael J. Cavanagh: Metrics that are associated with the credit rating as <unk> seen and as you as you point out very strong free cash flow last year in expectation for similar this year as you mentioned allows for substantial share repurchase activity. So since we restarted the buyback in 2021, we bought back over 15% of our share count. If you look at the last year, we bought back over six.

Michael J. Cavanagh: Our share count so both very strong metrics I would point out the tail end of last year, we were pretty clear in the third quarter that we were going to accelerate the buyback anticipating minimum floor Hulu proceeds which came in at the very end of last year and Thats in advance of more full proceeds for full value. This year, but we do get a minimum floor.

Operator: Thanks Ben. Operator, we're ready for the next question. Thank you. The next question is coming from Craig Moffett from Moffett-Nathanson, North Carolina. Hi, two questions about broadband, if I could.

Craig Eder Moffett: Last year, and hence accelerated the buyback in <unk> and <unk> to $3 5 billion.

Craig Eder Moffett: First, you talked about how your broadband business, or, sorry, your wireless business, is helping broadband churn. I wonder if you could just talk a little bit more about that. How you, how, first, can you put some numbers around the churn reduction that you see when you bundle broadband and wireless together? But, but more importantly, how do you think about wireless? Is it a standalone business to you, or is it really in service of broadband churn? And then I wonder if you could, maybe I was just, I missed it.

Craig Eder Moffett: And Dan I'll, just chime in on the back of the question about any changes in how we think about capital allocation I think Jason and team.

Craig Eder Moffett: Carrying on a phenomenal tradition I've been here now close to 10 years and I think the the idea of.

Craig Eder Moffett: Taking our well generated capital across our businesses and first and foremost and investing them back in the business with a very long term view of what the future can be.

Craig Eder Moffett: There is expected return whether that's the parks business, whether that's the broadband network, whether that's streaming.

Craig Eder Moffett: Whether it's just brought innovation I think it's in our DNA at this place to try to figure out ways to invest wisely for the future while at the same time, maintaining a very strong balance sheet and we like the way the balance sheet is set up when you go through these long.

Craig Eder Moffett: Long arcs of change across industries with disruption. It allows you to sleep better at night, knowing the strength the balance sheet, we have and allows us to continue making those earlier investments and then so to do those two things together with the very substantial interest on the part of the management team and the fact that we've done.

Craig Eder Moffett: Done it to just get lots of capital returned to shareholders.

Craig Eder Moffett: Not many companies are inclined to manage those three priorities.

Craig Eder Moffett: As much as we are and I can commit that thats, where our head is as we look forward to the next 10 years ahead.

Speaker Change: Thanks, Ben operator.

Speaker Change: Operator, we're ready for the next question.

Craig Eder Moffett: Thank you next question is coming from Craig Moffett from Oppenheimer. Your line is now live.

Speaker Change: Hi, two questions about broadband if I could.

David N. Watson: Firstly.

David N. Watson: You talked about how.

David N. Watson: Your broadband business sorry, your wireless business is helping broadband churn I wonder if you could just talk a little bit more about that.

David N. Watson: How you how first can you put some numbers around the churn reduction that you see when you when a customer bundled broadband and wireless together, but but more importantly, how do you think about wireless.

David N. Watson: Is it a standalone business to you or is it really in service of broadband churn.

David N. Watson: So I think we've demonstrated that we're in this business, we love this business, and it's, but it is definitely the core part of our strategy as to how it impacts broadband over the long run. Yeah, hey, Craig.

Speaker Change: And then I Wonder if you could maybe I was just.

Speaker Change: I missed it but Jason I think you mentioned the.

Craig: Margins for the domestic cable only business, but I think I may have missed the number I wonder if you could just repeat that for us. Thanks.

Jason S. Armstrong: So on margins, we said overall connectivity and platforms margins were up 50 basis points, and said domestic was an even greater increase. So domestic was up 70 basis points, year over year, sort of continuing the formula of a mixed shift in our business, higher-margin businesses, our connectivity businesses are growing faster than our, you know, non-growth video businesses. So that's a margin favorable trade-off for us, as we've said historically, and operating efficiencies in the business.

Speaker Change: Hey, Craig Dave Let me start with wireless and then hand it over to Jason.

Speaker Change: Folks, but let me.

Jason S. Armstrong: Wireless is an absolute integral part of our overall strategy and specifically to your question, we've always thought the.

Jason S. Armstrong: Main value for us wireless is connected with broadband and that it adds surrounds broadband with value.

Jason S. Armstrong: I think we don't give specifics on exactly the.

Jason S. Armstrong: The churn.

Jason S. Armstrong: Benefits, but we do see it.

Jason S. Armstrong: I think we gave a stat last call that I'd reiterate, you know, we've taken 50% of our truck rolls out of the system in the last six years, and we've taken 40% of customer interactions out of the system in the last six years. So a lot of good progress on expense efficiency, but Craig, the domestic margins are up 70 basis points. Thanks, Craig. Operator, next question, please.

Jason S. Armstrong: And whether it's acquisition oriented connected to broadband whether it's base management upgrading whether it's retention wireless plays a role in all of those so it's a key growth opportunity.

Jason S. Armstrong: But it's also it's a product where our marginal economics are strong.

Jason S. Armstrong: It's good to have that but it's the way we go to market, it's connected to broadband and it's connected to packaging. So.

Operator: Certainly. Our next question is coming from Jessica Rieferlich from Bank of America Security. Your line is now live. Excuse me.

Jason S. Armstrong: It's performing well, we like our consistency in the marketplace.

Jessica Reif Cohen: And loved the fact that we have a good runway ahead.

Jessica Reif Cohen: Only about 11% penetrated now 7 million lines, and so really like the opportunity in front of us and.

Jessica Reif Cohen: Thank you. I have a question on NBCU and also on Comcast Cable. Clearly, one of your growth areas.

Michael J. Cavanagh: Can you give us the investment levels you expect over the next five years? Basically, EPIC will be in there, so it will be a little elevated. But you have other new parks, and you're also. What's different is the return on invested capital. And then one more on NBCU, are there other areas NBCU should or you're thinking about investing in, like video, and then on cable, on Comcast cable? Question on your programming expense or programming contracts. Presumably, you have MSN.

Jessica Reif Cohen: For us we've constantly been evolving our approach towards wireless and how we connect it with broadband and how we use it so we have there.

Michael J. Cavanagh: For example, new pricing plans, our new mobile plants that are really targeting multiline customers excited about that the new mobile product in the segmentation, we've already talked about that in the prepaid area and for that segment we've had.

Michael J. Cavanagh: One get one program for the base. So almost every single segment and then just announced Wi Fi boost for our mobile customers being able to open up the public the Wi Fi hotspots and open it up as fast as devices can go and leveraging Wi Fi complement to mobile so I think we've demonstrated that.

Michael J. Cavanagh: What should we think about? cable program. Hey, Jessica, it's Mike.

Michael J. Cavanagh: So on parks, as we've said, this is an year in 2024 where CAPEX in parks and at NBC Universal overall will sustain at the level it was in 23, so it will remain elevated. On 25th, when we open EPIC, it will begin to step down, and then after that, it will return to a more normal level with adjustments for the Hollywood Horror Nights and the Kids Park in Plano, Frisco, Texas that we've talked about. But those, as we've said, are not of the same size and scale as a large park like EPIC.

Michael J. Cavanagh: We're in this business, we love this business and it's but it is definitely the core part of our strategy is how it impacts broadband over the long run.

Michael J. Cavanagh: Jason.

Speaker Change: Hey, Craig So on margins, we said overall connectivity and platforms margins were up 50 basis points.

Michael J. Cavanagh: Said domestic was an even greater increase of domestic was up 70 basis points year over year sort of continuing the formula of a mix shift in our business to higher margin businesses, our connectivity businesses are growing faster than our or not.

Michael J. Cavanagh: But we do have a bigger footprint of parks than we did, say, five years ago. So you're right, part of the capital equation for parks is to continue to invest in new attractions within existing parks. So again, once we get to 26, you'll see us easing into a new steady state that does include continued experimentation with some of our alternative concepts. And then, certainly, we hope over the longer term to come up with some ideas for bigger deployments of capital, but that's what we have in our plans as we sit here right now. But we love the business, and when it comes to the question of returns, we think the returns are very strong. We take a careful look at that every time we're opening a new park.

Michael J. Cavanagh: Gross video businesses, so thats a margin favorable trade off for us as we've said historically and then operating efficiencies in the business I think we gave a stat last call that I'd reiterate we've taken 50% of our truck rolls out of the system in the last six years, we've taken 40% of customer interactions out of the system in the last six years. So a lot of good progress on expenses.

Michael J. Cavanagh: Fisher said, Hey, Craig the domestic margin was up 70 basis points.

Speaker Change: Got it that helps thank you.

Speaker Change: Thanks, Craig Operator next question. Please certainly the next question is coming from Jessica Reif Ehrlich from Bank of America Securities. Your line is now live.

Michael J. Cavanagh: And I think we like the stability of the long-term nature of the return. It's us and one other great company that are world leaders in that level of park experience. The response to our parks has been phenomenal coming out of COVID.

Speaker Change: Thank you.

Speaker Change: I have a question on N B C U.

Michael J. Cavanagh: Also on Comcast cable Onda.

Michael J. Cavanagh: Theme parks, which is clearly one of your growth pillars.

Speaker Change: Can you give us the investment levels you expect over the next five years.

Michael J. Cavanagh: And so we see that being a place where people live. And then, in terms of, you know, other areas, I think the success that we've had across parks and experiences is, you know, leading us to plenty of opportunities to think about gaming and other areas around live entertainment that go around and cross between our businesses. So we experiment with things, and we look, and it's our job to see if there are great opportunities to do that, but we have nothing to report today.

Michael J. Cavanagh: Obviously epic will be in there so it would be a little elevated but you've got the new parks and we're also investing in the existing parks and how different is the return on invested capital for the theme parks versus your other businesses.

Michael J. Cavanagh: Then one more on NBC you are there other areas NBC, you should or Youre thinking about investing in like video games and then on cable unconscious cable or just a question on your programming expensive programming contracts, presumably you have in that sense I think you've always had them how should we think about the impact on comp.

Michael J. Cavanagh: Hey, Jessica, Dave, just so your question on renewals and our point of view. Yeah, look, it there's from our point of view, there's not a single approach towards renewal, we handle it on a case by case basis.

Michael J. Cavanagh: Cable programming expenses.

Speaker Change: It's a major programming contracts come up with other distributors. Thank you.

Michael J. Cavanagh: Hey, Jessica it's Mike So on parks as we've said this is a year in 2024, where capex in parks and at NBC Universal overall will sustain it.

David N. Watson: At the level it was in 'twenty three so remain elevated.

David N. Watson: 25, when we open epic it will begin to step down and then after that it will return to a more normal level with adjustments for.

David N. Watson: The Hollywood horror nights and the kids.

David N. Watson: Kids Park.

David N. Watson: Frisco, Texas that we've talked about but those as we've said are not of the same size and scale as a large park like epic so, but we do have a bigger footprint of parks than we did say five years ago. So you are right part of the.

David N. Watson: Part of the capital equation for parks is to continue to invest in new attractions within existing parks. So again once we get to 'twenty six youll see us easing easing into a new steady state that does include continued.

David N. Watson: Experimentation with some of our alternative content concepts and then certainly we hope over the longer term to come up with some ideas for bigger deployments of capital, but that's what we have.

David N. Watson: And in the in our plans as we sit here right now, but we love the business and to the question of returns. We think the returns are very strong.

David N. Watson: We take a careful look at that every time, we're green lighting, New park and I think we like the stability of the long term nature of the return it's us and you know one other great companies that are world leaders in that level of park experience.

David N. Watson: The response to our parks has been phenomenal coming out of Covid.

David N. Watson: And so we see that being a place live entertainment at the at the level, we're talking about being just a strong pillar of the media and entertainment side of the company for a long time ahead.

Operator: Operator, we're ready for the next question, please. Our next question is coming from John Hodulik from UBS. Your line is now live. Very good morning, guys. Two, if I could, maybe first for Jason, just finishing up on ACP.

John Christopher Hodulik: And then in terms of other areas I think the success that we've had across parks and experiences.

John Christopher Hodulik: R R.

John Christopher Hodulik: Lead us plenty of opportunities to think about gaming.

John Christopher Hodulik: Are there other areas around live entertainment that go around and cross between our businesses. So we experiment with things and we look and it's our job to see if there are great opportunities to do that but nothing to report today.

John Christopher Hodulik: Given the strong start you guys had this year and the strong ARPU, do you guys think that you can keep domestic cable EBITDA flat to up for the year, even with ACP going away at first? And maybe for Dave, the wireless companies are definitely talking a sort of bigger game on fixed wireless in the business market. And you guys have some sort of strong comments and prepared remarks about the business market. But are you starting to see some increasing competition leak in at the low end because of fixed wireless? Thanks.

Speaker Change: Hey, Jessica Dave just so your question on renewals in our point of view.

Speaker Change: Yeah look there is.

John Christopher Hodulik: From our view there is not a single approach towards how we handle on a case by case basis.

Speaker Change: When you step back for a second though we evaluate each one.

Dave: And then three primary areas one the overall cost down.

Jason S. Armstrong: Relative to the content.

Jason S. Armstrong: Flexibility that's required in a very fast changing environment and the overall consumer value and so we're going to look at this this significant transition that has been going on will continue to go on between linear and streaming and so that is something.

Jason S. Armstrong: That we think we can play a unique role in in terms of win win opportunities between the content providers and distribution and for US we have a unique platform.

Jason S. Armstrong: That is positioned well to be able to do handle everything that video can handle linear channels on demand DVR and streaming we've been doing streaming packaging on the platform. So some period of time, so we can build bridges.

Jason S. Armstrong: As these things come up and but our goal consistently has been defined win win opportunities.

Speaker Change: As we examine each and every specific renewal but.

Jason S. Armstrong: That's how we will evaluate each one.

Jason S. Armstrong: Thanks, Jessica operator, we're ready for the next question. Please our next question is coming from John Hodulik from UBS. Your line is now live.

Jason S. Armstrong: I'd go back to, you know, what I said before, on some of the expense initiatives across the company and being very disciplined, taking volumes out of the system, and that providing a tailwind as well. So without giving specific guidance for EBITDA growth, I would give you the components of our competition. Thank you, John, and Dave.

John: Great Good morning, guys.

Speaker Change: Two if I could maybe maybe first for Jason just finishing up on ACP.

Speaker Change: Given the strong start you guys had to the year and the strong RP do you guys think that you can keep.

Jason S. Armstrong: Domestic cable EBITDA flat to up for.

Jason S. Armstrong: For the year, even with ACP Dunaway, that's first and then maybe for Dave.

Jason S. Armstrong: The wireless companies are definitely talking about sort of a bigger game on fixed wireless in the business market. I think you guys had some sort of strong comments in the prepared remarks about the business market, but are you starting to see some some increasing competition at the low end.

David N. Watson: So, just a follow-on to Jason's point in terms of ACP, remember, I think a really important point: we've been, you know, segmenting the marketplace, and we – I think we've had the industry-leading platform in terms of Internet Essentials for a very long time, so, you know, a decade-plus. So, we are, you know, familiar with the segmentation in this area, and we're very familiar in terms of promo rolls and bigger moments like this. So, I – because of that, you know, in particular the ARPU point that's connected to it, we feel, you know, pretty good about the historical range of 3 to 4 percent.

David N. Watson: Because it's fixed wireless.

Speaker Change: Yes, John Let me, let me hit domestic.

David N. Watson: Cable EBITDA CMP EBITDA over the course of the year. So I think as you mentioned, it's competitive market, we've got ACP coming our way at the same time.

David N. Watson: The balance you know think about broadband specifically the balance between rate and volume we've seen.

David N. Watson: A little bit of pressure on volume, but for 2% <unk> growth in the quarter and outlook for we continue to state of 3% to 4%.

David N. Watson: During the year. So we still think there's tailwind for broadband revenue growth. We had three 9%. This quarter, we're growing business services, we're growing wireless and we're offsetting video and other revenue declines, but at the total level. That's a margin accretive mix shift I'd go back to what I've said before on some of the expense initiatives across the company and being very disciplined.

David N. Watson: So – but we've had a long-standing approach toward this. On your question around business services, there's no question, John, that the SMB market has become, you know, a bit more competitive, and fixed wireless is a part of that. So, they are, and we've seen it in the results.

David N. Watson: Supply taking volumes out of the system and that providing a tailwind as well so without giving specific guidance for EBITDA growth I would give you the components and our confidence in them.

David N. Watson: We now have, you know, three fixed wireless competitors that are in it. When you have that much all at once, there's some impact. So, we're seeing it in SMB. It's unique to SMB.

Speaker Change: Hey, John Dave So just a follow on to Jason's point in terms of ACP remember I think a really important point, we've been segmenting the marketplace and.

David N. Watson: I think we've had the industry leading platform.

David N. Watson: In terms of Internet essentials for a very long time. So you know a decade plus so we are.

David N. Watson: Familiar with the segmentation.

David N. Watson: This area.

David N. Watson: And we're very familiar in terms of promo roles and bigger moments like this so.

David N. Watson: Because of that in particular, the <unk> point that's.

David N. Watson: Thats connected to it is we feel pretty good about the historical range of 3% to 4% so.

David N. Watson: But we've had a.

David N. Watson: Long standing approach towards this on your question around business services. There is no question John that we have.

David N. Watson: The SMB market is.

David N. Watson: Become a bit more competitive and fixed wireless as a part of that so.

David N. Watson: They are you've seen it in the results we now have three.

David N. Watson: <unk> fixed wireless competitors that are in it when do you have that much all at once.

David N. Watson: There is some impact so we're seeing it in SMB.

David N. Watson: <unk> to SMB.

David N. Watson: But our game plan consistently has been to focus on both.

David N. Watson: It has to work. I think over time, you know, we will continue to press that point. And, you know, we're not going to chase things down to zero in terms of discounting. We're going to offer better products and surround those products with features that make sense for business customers. But we will make sure that customers, you know, know the reliability and ubiquity of what we do is unique and different from fixed wireless.

David N. Watson: Sure.

David N. Watson: And the overall.

David N. Watson: The rate and we have a great slate of products, we have multiple segments within business services mid market and enterprise that offset a lot of this and great product road maps that have but really important point as you feel competitive pressure I think is important to keep in mind.

David N. Watson: Uniquely to SMB that reliability and ubiquity of our products and business services is really key here for businesses. They get $24 seven theyre always on it has to work I think over time, we will continue to press that point.

David N. Watson: And just, Brian, just again, just as we talked about in the residential market, the long-term data reliability and just consumption behavior of businesses. Think of your own businesses and where that might lead and the use of, you know, new tools and video and everything else. You want to have the best network. And once again, we have a really exciting team and roadmap on that front. So again, we're battling the reality in one segment with great opportunity and others and long-term love in our situation. Thanks, John. Operator, next question, please.

David N. Watson: And we're not going to chase things down to zero in terms of discounting we're going to offer better products and surround those products with features that make sense sense for business customers, but we will make sure that customers know that reliability and ubiquity of what we do is unique and different and fixed wireless and just.

David N. Watson: Ryan.

David N. Watson: Just again, just as we talked about in the residential market.

David N. Watson: Long term opportunity, where we're only just getting started is that large enterprise and medium size business and as you think about cyber security and <unk>.

David N. Watson: Other data reliability, and just consumption behavior of businesses and thank you for your own businesses.

Operator: Certainly, our next question is coming from Steven Cahall from Wells Fargo. Your line is now live. Thank you. Maybe first, just on broadband trends, I think you've been pursuing a line extension strategy for at least 18 months, and that'll continue. So is it correct to assume that your gross ads on broadband are starting to pick up just as you add more passings in the market? And if that's true, can you give us any color on where the deactivations are headed?

Speaker Change: And where that might lead to the use of <unk>.

Operator: New tools and video and everything else.

Speaker Change: You want to have the best network and once again, we have a really exciting team and roadmap on that front. So again were battling.

Operator: The reality in one segment with great opportunity and others in long term love our our situation.

Speaker Change: Thank you operator next question please.

Operator: Certainly our next question is coming from Steven Cahall from Wells Fargo. Your line is now live.

Speaker Change: Thank you.

Steven Lee Cahall: I think you've always said that you view fiber as the bigger competitive threat. And so does that kind help us understand what's going on between gross ads and net ads? And then separately on Peacock, you talked about retaining subs between some of your big marquee sporting events, and you've got a lot of great films on Peacock as well. I'm wondering what your tolerance is for original content and original content spend, and how we think about originals on Peacock, maybe vis-a-vis a long-term breakeven goal. Thank you. Thank you, Steven. This is Dave.

Steven Lee Cahall: Where theyre headed I think you've always said that fiber as the bigger competitive threat.

David N. Watson: Let me start with footprint and then go to competition views. So let me – in terms of overall footprint expansion, you know, the vast majority of our new customers each quarter are fill-ins within our existing footprint. The balance of the growth is mostly, you know, from our organic edge-outs into adjacent areas. And so with, you know, some government-subsidized bills representing a much smaller, albeit increasing, portion.

David N. Watson: Cock, maybe vis vis long term breakeven goal. Thank you.

David N. Watson: Hey, Stephen This is Dave let me start with footprint.

David N. Watson: Then go to competition views. So let me in terms of overall footprint expansion. The vast majority of our new passing as each quarter are fill ins within our existing footprint. The balance of the growth is mostly from our organic edge outs into adjacent areas and so.

David N. Watson: Some government subsidized builds representing a much smaller, albeit increasing portion. So it's really the there are kind of three different components of it that we're looking at and.

David N. Watson: So it's really the – there are kind of three different components of it that we're looking at. And so, you know, it's still early, and we are very disciplined. We evaluate the risk, you know, adjusted returns of each, you know, one of these network builds on a case-by-case basis.

David N. Watson: So.

David N. Watson: It's still early and but we're very disciplined we evaluate the risk adjusted returns of each one of these network builds on a case by case basis and generally though the edge outs is that will increase there.

David N. Watson: They are adjacent sometimes located in between geographic markets that we currently serve so looking ahead, we expect these edge out projects to continue to contribute to the future growth.

David N. Watson: Total passengers and we don't give to your question those specific numbers on this I can tell you that we're going to reach very healthy penetration levels in a few years on these edge out.

David N. Watson: Projects so.

David N. Watson: The ramp ups happen pretty quickly and we're pleased with the returns, though so pretty.

David N. Watson: Disciplined process, we looked on the returns and then as you shift towards the competition.

David N. Watson: We look at the returns. And then, as you shift, you know, towards the competition, you know, the environment – let me back up and just – it's overall – it's a very intense competitive environment that has been very consistent over the last, you know, several years. And so it picked up a bit. And when you have, again, three fixed wireless competitors coming in pretty much at the same time, and you have the fiber level, about half of our footprint now has fiber competition of some form in it, it's an intense competitive environment. But, you know, we have adjusted.

David N. Watson: The environment, let me back up and just overall, it's a very intense competitive environment that is very consistent the last several years and so it picked up a bit and when you have again three.

David N. Watson: Fixed wireless competitors coming in pretty much at the same time and you have.

David N. Watson: <unk>.

David N. Watson: The fiber level about half of our footprint now has <unk>.

David N. Watson: Fiber competition of some form in it.

David N. Watson: It's an intense competitive environment, but.

David N. Watson: We have adjusted we've been going up against fiber competition now for over 15 years.

David N. Watson: We've been going up against fiber competition now for over 15 years, and it is – we've made adjustments. We've done, I think, very well in going toe-to-toe for the – exactly as Brian laid it out, that our long-term game plan is to focus on a better network, a ubiquitous network, better products, surround it with the full portfolio of better products, and not chase units just for the sake of it. And we've had moments going up against fiber where they've gone way down market, they've become rational. We've had different cycles.

David N. Watson: And it is.

David N. Watson: <unk> made adjustments, we've done I think very well and going toe to toe.

David N. Watson: Exactly as Brian laid out that our long term game plan is to focus on a better network ubiquitous network better products surround it with the full portfolio of better products.

David N. Watson: And not chase units just for the sake of it and we've had moments going up against fiber, where they've gone way down market.

David N. Watson: Some rational.

David N. Watson: We've had different cycles, and so I think we've made adjustments and we have proven that we more than hold our own in that footprint. What we're seeing now is kind of an intense more intense competitive focus around the lower end of the market and that's why we're segmenting thats why.

David N. Watson: And so I think we've made adjustments, and we have, you know, proven that we more than hold our own in that footprint. What we're seeing now is kind of an intense – more intense competitive focus around the lower end of the market, and that's why we're segmenting, that's why we're doing what we're doing, never losing sight, though, that we're going to have a better product than anybody in the marketplace, the better network, and backing it up with better devices that can, eventually, as we get to multi-gig symmetrical, So it's, you know, it's a tough competitive environment, but I think we have a unique, differentiated approach.

David N. Watson: Why we're doing what we're doing never losing sight, though that we're going to have a better product than anybody in the marketplace the better network.

David N. Watson: And backing it up with better devices that can eventually as we get to multi gig symmetrical and thats. The key every single application Ubiquitously delivered.

David N. Watson: That's our focus so.

David N. Watson: It's it's tough competitive environment, but I think we have a unique differentiated approach.

David N. Watson: And so on Peacock, I mean, we're very pleased, as both Jason and I said earlier, with the quarter where we ended up with 33.5 million subscribers. Three and a half years in, we are at a place now where we really are seeing traction in our approach to providing a service for consumers that is a combination of both entertainment and sports and how those two go together. Very much a reflection, as we said from the beginning, of a mirror image of what we see as our strengths at NBC Universal itself.

David N. Watson: And so on Peacock I mean, we're very pleased as both dish and I said earlier with a quarter, where we ended at $33 5 million subs was three five years and we are we are at a place now where we really are seeing traction in our approach to.

David N. Watson: Providing a service for consumers that is a combination of both entertainment and sports and how those two go together very much a reflection as we said from the beginning of our a mirror image of what we see is our strengths at NBC Universal.

David N. Watson: And so when you look at this quarter in particular, you end up with a start with a wild card game that brought in a tremendous number of subscribers ahead of where we expected it to be, and then retention that was ahead of where we expected it to be.

David N. Watson: Self and so when you look at this quarter in particular, you end up with a.

David N. Watson: Start with a wildcard game that brought in a tremendous number of subs ahead of where we expected it to be.

David N. Watson: And then retention that was ahead of where we expected it to be and.

Michael J. Cavanagh: And so that's obviously great, and the power of sports to bring audiences together and will stay committed because of our strength in sports. But when you really reflect on what then happened in the weeks that followed, our viewing was at record highs across all parts of our non-sports portfolio, and, in fact, in the quarter, we launched our biggest original, TED, to the greatest success of any of the originals we've ever launched. And Traders 2, our reality series on Peacock, both of those were in the Nielsen Top Ten streaming in the earlier part of the year.

David N. Watson: And so that's obviously, great and the power of sports to bring audiences together and we will stay committed because of our strength in sports, but when you really reflect on what then happened in the weeks that followed our viewing was the record highs across all parts of our non sports portfolio and in fact in the quarter, we launched our.

Michael J. Cavanagh: Biggest original Ted to the greatest success of any of the originally we've ever launched and traders to our reality series on Peacock.

Michael J. Cavanagh: <unk> of those were in the Nielsen top 10 streaming in the earlier part of the year. So I think we see the two.

Michael J. Cavanagh: So I think we see the two, you know, the parts of the portfolio interplaying well with each other, and obviously the strength of our movie studio, which we talked about earlier, with Oppenheimer and Holdovers, and now coming up in future quarters, Kung Fu Panda 4. That is another great source of strength in our portfolio. So I think you can expect to see us having a very broad approach to its sports, its originals, its next day airing of NBC content, its library, and its pay-per-view movies.

Michael J. Cavanagh: The parts of the portfolio enter playing well with each other and obviously the strength of our movie studio, which we talked about earlier with Oppenheimer and holdovers.

Michael J. Cavanagh: And now coming up in future quarters.

Michael J. Cavanagh: <unk> afore that is another great source of strength into our portfolio. So I think you could expect to see us having a very.

Michael J. Cavanagh: Broad approach to its sports its originals. It's next day airing of NBC content, It's our library and its our pay one movies all of those things going into a service that we think is one of the best values in streaming and a very distinct place over time and the streaming marketplace for consumers and when you look ahead from.

Michael J. Cavanagh: All those things go into a service that we think is one of the best values in streaming and a very distinct place in the streaming marketplace for consumers. And when you look ahead from where we started the year, we are now in, continuing to focus hard on retaining the growth and subscribers we had. The second quarter will be a little lighter in terms of the cadence of our content, but when you look to the middle of the year, we've got the Olympics.

Michael J. Cavanagh: Where we started the year.

Michael J. Cavanagh: Now in continuing to focus hard on retaining the growth in subs, we had second quarter will be a little lighter in terms of the cadence of our content, but when you look to the middle of the year, We've got Olympics.

Michael J. Cavanagh: Right after that, we've got the return of NFL, Big Ten, and our exclusive NFL game in Sao Paulo, Brazil, along with the tremendous movie slate Fall Guy Twisters, Despicable Me 4, in addition to Kung Fu Panda 4.

Michael J. Cavanagh: Right. After that we've got the return of NFL Big 10, and our exclusive NFL game in Sao Paulo, Brazil, along with the tremendous movie Slate Fall Guide Twisters frequently for in addition to comb through fan Kung Fu Panda, four and so we feel great about what we're doing and the progress, we're making and it's very consistent with.

Jonathan Chaplin: The the way we've described peacock as.

Jonathan Chaplin: Taking advantage of what makes us great at NBC universal to begin with and taking our existing strengths and assets into a digital future. So that's.

Jonathan Chaplin: And it's one of our six big growth drivers, so glad to get a chance to comment on it. Thank you.

Jonathan Chaplin: Thanks, Steve Operator, we have time for one last question.

Michael J. Cavanagh: Thank you. Our final question today is coming from Jonathan Chaplin from New Street. Your line is that right.

Michael J. Cavanagh: Thanks.

Jonathan Chaplin: One for Dave and one for Jason and Dave.

Jonathan Chaplin: Can you step back from the sort of the increased competitive intensity, you're seeing in the broadband market.

Jonathan Chaplin: Love your perspective on how the overall market is trending as we tally up what the adds in the quarter it looks like.

Jonathan Chaplin: Sort of trending to somewhere around half of what we normally see for the industry in the first quarter everybody's adds are down.

David N. Watson: And I'm wondering if you've got any thoughts as to what might be driving that. And then, Jason, on the segmentation strategy, hit the low end of the market with some offers last year and then pulled back because you were worried about cannibalization. I'm wondering how the now you've sort of structured now differently so you don't end up seeing that cannibalization impact. Thank you.

Jonathan Chaplin: And I'm wondering if you've got any thoughts as to what might be driving that and then Jason on the segmentation strategy.

David N. Watson: You.

David N. Watson: Hit the low end of the market with some with some offers loss last year and then pulled back because you were worried about cannibalization I'm wondering how the now you're sort of structured differently. So you don't end up seeing that that cannibalization impact. Thank you.

David N. Watson: Hey, Jonathan, Dave, let me start with broadband in its entirety, the whole market, and a viewpoint. So let me begin with, you know, the broadband market as a whole is still growing, maybe at a slower pace than it was last year and the year before, but there's still going to be a pretty healthy amount of net ads in 2024 and likely beyond. The right way, though, in addition to that, I think you have everything we've talked about before; the right way we think to look at it is it's, you know, holding our own growing relationships responsibly, but it's also where the market is going and how broadband is being used.

David N. Watson: Yeah.

Jason: Hey, Jonathan Dave Let me start with the broadband.

David N. Watson: In its entirety the whole market in our viewpoint. So let me begin with the broadband market as a whole is still growing.

David N. Watson: Maybe at a slower pace than it was last year and the year before but there is still going to be a pretty healthy amount of net adds in 2024 and likely beyond the right way, though in addition to that I think you got it everything we've talked about before it the right way, we think to look about it is it's.

David N. Watson: Their own growing relationships responsibly, but it's also where the market is going and how broadband is being used and that as we've talked about the utility of the broadband product itself is only going up so when you look at the health of the entire category. It's the relationships, but it's also the <unk>.

David N. Watson: Overall usage and consumption and for US <unk> seen usage is up double digits broadband only subs using over 700 gigabytes of data a month over 70% of our subscriber base is on speed tiers of 50, megs or more nearly a third of our customers are on a gig those are great trends for us over the long term and.

David N. Watson: And for us, you've seen usage go up double digits, broadband-only subscribers using over 700 gigabytes of data a month, over 70% of our subscriber base is on speed tiers of, you know, 50 megs or more, and nearly a third of our customers are on a gig. Those are great trends for us over the long term and, you know, gives us great confidence as we're investing in and continue to invest in a better network and a better customer experience, as Brian has said.

David N. Watson: It gives us the.

David N. Watson: Great confidence as we are investing continuing to invest in a better network and a better customer experience as Brian has said so.

David N. Watson: When you look at things I think it's clearly competitive as we've talked about one other factor that enters into it in some cases in certain segments. There is some.

David N. Watson: People that revert back to mobile only that that can happen.

David N. Watson: So there's a variety of factors that can enter into it. But overall, as a category and as a growth opportunity, I'm quite optimistic about broadband. Hey, Jonathan, let me start on segmentation, and Dave probably wants to chime in as well. So, for now, I think what's interesting and exciting about it is it's a dedicated sort of flanker brand strategy. We've had prepaid offers in the past sort of wedged into our existing portfolio, but this is a more dedicated and branded strategy around it. By the way, the branding around this has worked very well in our UK market for Sky. That's actually where the brand name came from.

David N. Watson: Theres a variety of factors that could enter into it but overall as a category and as a growth opportunity quite optimistic about broadband.

David N. Watson: Hey, Jonathan Let me, let me start on segmentation and Dave probably wants to chime in as well so on now and I think what's interesting and exciting about it is it's a.

David N. Watson: A dedicated to a flanker brand strategy. We've had prepaid offers in the past sort of wedged into our existing portfolio. This is a more dedicated and branded strategy around it that by the way that the branding around this has worked very well and our U K market for Sky, It's actually where the brand name came from.

Jason S. Armstrong: And, you know, so we expect this to have some resonance. I would point out that, if you look at where it's sort of targeted, we've got a 100-meg offer for $30. It's inclusive of taxes, fees, and equipment. We've got a $45 offering that's 200 megs and is inclusive as well. Very competitive versus fixed wireless, right, that is in this range, maybe slightly higher, without the same reliability and ubiquity that we have.

Speaker Change: So we expect this to have some residents I would point out the if you look at where it's sort of targeted we've got 100 Meg offer for $30. It's inclusive of taxes fees and equipment, we've got a $45 offering thats 200, megs and inclusive inclusive as well very competitive versus fixed wireless right that is in the.

Jason S. Armstrong: In this range, maybe slightly higher without the same reliability and ubiquity, what we have.

Jason S. Armstrong: Yeah, just adding on to that, Jonathan, but, you know, again, we've been doing prepaid broadband for a while, years, and it's just, we needed to refresh it, needed to update it and put it in a more competitive position. You know, prepaid mobile is new, and Now TV is relatively new, but it's a segmented approach, and if you think about, you know, it's an all It's very simple, it's really easy, there are no contracts, no credit checks, and customers can sign up, pause, and cancel online anytime.

Speaker Change: Yes, just adding onto that.

Jason S. Armstrong: Jonathan but again, we've been doing.

Jason S. Armstrong: Prepaid broadband for a while years and.

Jason S. Armstrong: We needed to refresh it needed to update it and put it in a more competitive position the prepaid mobile is new.

Jason S. Armstrong: And now Tvs relatively new but its a segmented approach and if you think about it it's all in pricing, it's very simple it's really easy.

Jason S. Armstrong: No contracts and no credit checks customers can sign up pause cancel online anytime it's a very straightforward.

Jason S. Armstrong: It's a very straightforward product, but, you know, future light products. As we keep our focus on the high end in terms of fully featured things, we'll continue to do that. But this just gives us a brand, gives us a product suite to be able to clearly define segmentation in a way that we can manage through.

Jason S. Armstrong: Future light product as we keep our focus on the high end in terms of fully featured things will continue to do that but this just gives US a brand gives us a product suite to be able to clearly and define segmentation in a way that we can manage through.

Speaker Change: Thanks, Jonathan and we want to thank everyone on the call for joining us this morning.

David N. Watson: Thank you that concludes the question and answer session and today's conference call. A replay of the call will be available starting at 11 30, a M. Eastern time today on Comcast Investor Relations website. Thank you for participating you may all disconnect.

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