Q2 2024 Comcast Corp Earnings Call

Good morning, ladies and gentlemen, and welcome to Comcast's second 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: At this time, all participants are in a listen-only mode. Please note that this conference call is being recorded. I will now turn the call over to Executive Vice President, Investor Relations, Ms. Marci Ryvicker. Please go ahead, Ms. Ryvicker.

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. Thank you, Marci, and good morning, everyone.

Mike: <unk> 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 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: Before I hand it over to Jason, I'd like to comment on three key elements from the quarter. One, broadband. Two, parks.

Mike: Thank you Marcy and good morning, everyone.

Mike: Before I hand, it over to Jason I'd like to comment on three key elements from the quarter, one broadband to parks and three D. N V. A.

Michael J. Cavanagh: And three, the NBA. So first, broadband, where the competitive intensity that we've seen for the past several quarters and which is particularly felt in the market for price-conscious consumers remains essentially unchanged. But throughout this period, our broadband strategy has been consistent, and we remain confident in our plan. We are focused on generating healthy broadband revenue growth by striking the right balance between rate and volume and relying heavily on market segmentation, which I'll speak to in a minute. As a result, in the second quarter, our food grew 3.6%, which was within our historical range of 3 to 4%.

Jason: So first is broadband where the competitive intensity that we've seen for the past several quarters, and which is particularly felt in the market for price conscious consumers remains essentially unchanged.

But throughout this period, our broadband strategy has been consistent and we remain confident in our plan.

Jason: We are focused on generating healthy broadband revenue growth by striking the right balance between rate and volume and relying heavily on market segmentation that will speak to in a minute.

Jason: As a result in the second quarter ARPA grew three 6%, which was within our historical range of 3% to 4%.

Michael J. Cavanagh: Despite the competitiveness of the recent past, we've maintained a market-leading base of 32 million broadband customers by refining our go-to-market approach to create options that fit each of our customers' lifestyles and budgets. Providing the best products with flexibility and choice at different value points has served us extremely well for many years and remains the core of our playbook. Of particular note this quarter, we launched our suite of NOW products, which are high-quality internet, mobile, and streaming TV offerings designed to be incredibly simple with attractive all-in pricing with no contracts or credit checks. These are great options for the price-conscious segment and especially for those impacted by the end of the government's ACP program.

Jason: Despite the competitiveness of the recent past we've maintained our market leading base of 32 million broadband customers by refining our go to market approach to create options that fit each of our customers lifestyles and budgets, providing the best products with flexibility and choice at different value points.

Jason: <unk> has served us extremely well for many years and remains the core of our playbook.

Jason: Of particular note this quarter, we launched our suite of now products, which are high quality Internet mobile and streaming T V offerings designed to be incredibly simple with attractive all in pricing with no contracts or credit checks. These.

These are great options for the price conscious segment, and especially for those impacted by the end of the government's ACP program.

Michael J. Cavanagh: While we are pleased with our enhancements to our offerings for the price-conscious segment, the reality is that the vast majority of our customer base subscribes to more premium products where we feel great about our market position relative to fiber, which is our true long-term competitor. We are investing in additional network capacity, multi-gig speeds, and in-home Wi-Fi technology to capitalize on the internet consumption trends we are seeing. One of the most important metrics we monitor is the magnitude of data traffic flowing across our network.

Jason: While we are pleased with our enhancements to our offerings for the price conscious segment. The reality is that the vast majority of our customer base subscribes to more premium products, where we feel great about our market position relative to fiber, which is our true long term competitor.

Jason: We are investing in additional network capacity multi gig speeds and in home Wi Fi technology to capitalize on the Internet consumption trends. We are seeing one of the most important metrics. We monitor is the magnitude of data traffic flowing across our network and again, we saw double digit.

Michael J. Cavanagh: Again, we saw double-digit year-over-year growth this quarter, with broadband-only households consuming over 700 gigabytes of data each month. And our customers continue to demand faster speeds, with around 70% of our residential subscribers receiving speeds of 500 megabits per second or higher, and one-third getting a gigabit or more.

Jason: Year over year growth this quarter with broadband only households, consuming over 700 gigabytes of data each month.

Jason: And our customers continue to take faster speeds with around 70% of our residential subscribers receiving speeds of 500, megabits per second or higher and one third getting a gigabit or more.

Michael J. Cavanagh: These positive consumer trends play to our strengths and will only accelerate with the shift of live sports to streaming, which, together with Entertainment on Streaming, accounts for nearly 70% of our network traffic today. My final thought on broadband is the importance of bundling with mobile. With 90% of Xfinity mobile smartphone traffic traveling over our Wi-Fi network, these two products work seamlessly together to benefit our customers from both a product experience and financial value standpoint.

Jason: These positive consumer trends play to our strengths and will only accelerate with the shift of live sports to streaming.

Jason: Which together with entertainment on streaming accounts for nearly 70% of our network traffic today.

Jason: My final thought on broadband is the importance of bundling with mobile with 90% of Xfinity mobile smartphone traffic traveling over our Wi Fi network. These two products work seamlessly together to benefit our customers from both the products experience and financial value standpoint.

Michael J. Cavanagh: We are very pleased with the momentum we saw in wireless this quarter, where our line additions were again above 300,000 and nicely up year over year. Our new converged offers resulted in better overall yield and awareness, as well as higher multi-line attach rates, and we are excited for some of the new mobile offers tied to the Olympics, which will be introduced to the market in just a few days. Now let's turn to Parks, where our results were down in both revenue and EBITDA when compared to last year's record performance, with two-thirds of the decline driven by lower attendance at our domestic parks.

Jason: We are very pleased with the momentum we saw in wireless this quarter, where our line additions were again above 300000 nicely up year over year.

Jason: Our new converged offers resulted in better overall yield and awareness as well as higher multiline attach rates and we are excited for some of the new mobile offers tied to the Olympics, which will be introduced to the market in just a few days.

Speaker Change: Now, let's turn to parks, where our results were down in both revenue and EBITDA when compared to last year's record performance with two thirds of the decline driven by lower attendance at our domestic parks.

Michael J. Cavanagh: We attribute this to a number of factors. First, there now appears to be a COVID recovery pull forward of a magnitude we hadn't previously appreciated. I think it's important to zoom out and look at how this business has trended over the past few years. Going back to 2022 and 2023, theme parks were clearly the early beneficiaries of substantial rebounds in tourism and travel after the pandemic, resulting in a surge in demand that contributed to us reaching record results for both of those years. More recently, other travel options, including cruises and international tourism, given the strength of the dollar, have experienced their own surge in demand, which has caused visitation rates at our parks to normalize.

Speaker Change: We attribute this to a number of factors.

Michael J. Cavanagh: The second factor affecting attendance at our domestic parks is the timing of our investments in new attractions, where we are light in Florida in advance of next year's opening of Epic and our lapping of Super Nintendo World in Hollywood is creating some headwinds for us as well. While the park's results are below our original expectations for the year, we still view parks as a terrific long-term growth business for us. We couldn't be more excited about the opening of Epic Universe in 2025.

Speaker Change: First is what now appears to be a COVID-19 recovery pull forward of a magnitude we hadn't previously appreciated.

Speaker Change: I think it's important to zoom out and look at how this business has trended over the past few years going back to 2022, and 2023 parks, where clearly the early beneficiaries of substantial rebounds in tourism and travel after the pandemic, resulting in a surge in demand that contributed to us reaching.

Speaker Change: Record results for both of those years.

Speaker Change: More recently other travel options, including cruises and international tourism, given the strength of the dollar have experienced their own surge in demand, which caused visitation rates at our parks to normalize.

Speaker Change: The second factor affecting attendance at our domestic parks is the timing of our investments in new attractions, where we are light in Florida in advance of next year's opening of epic and our lapping of Super Nintendo World in Hollywood is creating some headwinds for us as well.

Speaker Change: While the parks results are below our original expectations for the year, we still view parks as a terrific long term growth business for us.

Speaker Change: We couldnt be more excited about the opening of epic universe in 2025.

Michael J. Cavanagh: As we've been releasing new details about EPIC's five immersive worlds, the consumer reaction has been tremendous. And recently, we opened an Epic Universe Preview Center in Orlando, and the foot traffic and guest enthusiasm have been off the charts. So we look forward to Epic Universe having a meaningful impact by driving incremental attendance, longer visits, and higher per-cap spending once the park opens in 2025. Finally, let me talk about the NBA. Our expectation is that an 11-year rights deal between ourselves and the NBA will be announced soon. We don't believe that the resolution of matching rights will affect the package that we expect to be awarded.

Speaker Change: As we've been releasing new details about epic's five immersive worlds the consumer reaction has been tremendous.

Speaker Change: And recently, we opened an epic universe preview center in Orlando and the foot traffic and guest enthusiasm had been off the charts.

Speaker Change: So we look forward to epic universe, having a meaningful impact by driving incremental attendance longer visits and higher per cap spending once the park opens in 2025.

Speaker Change: Finally, let me talk about the NBA.

Speaker Change: Our expectation is that soon an 11 year rights deal between ourselves and the NDA will be announced.

Speaker Change: We don't believe that the resolution of matching rates will affect the package that we expect to be awarded.

Michael J. Cavanagh: This package, which begins with the 2025-2026 season, includes 100 NBA games each regular season across NBC and Peacock, which is more than any other media partner and more regular season games than each existing partner has under the current rights. For the playoffs, we will have first and second round games each year exclusively on our national platforms and six NBA conference final series over the course of the term of the deal, which is more playoff games on average each year than any other media And exclusively for Peacock, there will be approximately 50 national regular season and postseason games, including national Monday night games and doubleheaders.

Speaker Change: This package, which begins with the $2025 2026th season includes.

Speaker Change: 100, NBA games, each regular season across NBC, and Peacock, which is more than any other media partner and more regular season games than each existing partner has under the current rights deal.

Speaker Change: Play offs, we will have first and second round games each year exclusively on our national platforms.

Speaker Change: Six NBA conference final series over the course of the term of the deal which is more playoff games on average each year than any other media partner.

Speaker Change: And exclusively for Peacock will be approximately 50 national regular season, and post season games, including National Monday Night games and Doubleheaders additional elements of the NBA package include the annual NBA, All Star game, and all Star Saturday night each season.

Michael J. Cavanagh: Additional elements of the NBA package include the annual NBA All-Star Game and All-Star Saturday night each season, the season-opening NBA tip-off doubleheader each season, a special doubleheader on the MLK holiday, and select NBA games and every NBA All-Star game on Telemundo.

Speaker Change: The season opening NBA tip off double header each season, a special double header on MLK holiday and select NBA games and every NBA all star game on Telemundo.

Michael J. Cavanagh: Beyond the NBA itself, we're excited that our package includes WNBA, where starting in the spring of 2026, we'll have more than 50 WNBA regular season and first round playoff games each season across Peacock, NBC, and USA. And we'll also have games in seven WNBA Conference Semifinals and three WNBA Final Series. For USA Basketball, will have the rights to USA men's and women's games leading up to the Olympics and FIBA World Cup, Sky Sports will air all of NBCUniversal's NBA and WNBA games in its markets.

Speaker Change: Beyond the NBA itself. We're excited that our package includes WNBA, we're starting in the spring of 2026, we'll have more than 15 WNBA regular season in first round playoff games each season across Peacock NBC in USA.

Speaker Change: And we will also have games in seven WNBA conference semifinals, and three WNBA final series.

Speaker Change: For USA basketball, well have the rights to USA mens and womens games, leading up to the Olympics and FIFA World Cup Sky Sports will air all of NBC, Universal's NBA and WNBA games in its markets and finally, Xfinity will be the NBA and WNBA.

Michael J. Cavanagh: And finally, Xfinity will be the NBA and WNBA's marketing partner in the video category. Now, I'd like to take a moment to explain why we're so excited to partner with the NBA. First, it brings in a broad, diverse, and youthful audience that is culturally relevant and further expands NBCUniversal's tremendous reach across broadcast and streaming. This new fan base will also allow us to create new entertainment content that will work beyond the basketball season with exciting opportunities for companion programming and marketing collaborations that tap into the NBA's pop culture appeal.

Speaker Change: <unk> marketing partner in the video category.

Michael J. Cavanagh: Second, the nine-month basketball season completes our year-round calendar for sports, which already includes the NFL, Olympics, Premier League, NASCAR, PGA Tour, Big Ten, and World Cup, and our NBA package will establish much-watched Sunday, Monday, and Tuesday night traditions on NBC and Peacock.

Speaker Change: Now I'd like to take a moment to explain why we're so excited to partner with the NBA first it brings in a broad diverse and youthful audience that is culturally relevant and further expands NBC universal's tremendous reach across broadcast and streaming.

Speaker Change: This new fan base will also allow us to create new entertainment content that will work beyond the basketball season with exciting opportunities for companion programming and marketing collaborations that tap into the Nba's pop culture appeal.

Speaker Change: Second the nine months basketball season completes our year round calendar for sports, which already includes the NFL Olympics Premier League NASCAR PGA Tour, Big 10, and World Cup and our NDA package will establish much watch Sunday Monday and Tuesday.

Speaker Change: Knight traditions on NBC in Peacock.

Michael J. Cavanagh: Third, we are uniquely able to drive strong value with the NBA in multiple ways. First, by growing ad sales by selling an NBA ad inventory package with the rest of our marquee programming. Second, by acquiring and monetizing subscribers both on Linear and Peacock, and third, by optimizing NBCUniversal programming investment across sports, entertainment, and news. The NBA's decision to partner with us is a testament to our breadth and reach, our operational excellence in sports and innovation, and our decades of experience delivering world-class content to consumers.

Speaker Change: Third we are uniquely able to drive strong value with the NDA in multiple ways.

Speaker Change: First by growing AD sales by selling NBA AD inventory package with the rest of our marquee programming.

Speaker Change: Second by acquiring and monetizing subscribers, both on linear and Peacock and third by optimizing NBC Universal programming investment across sports Entertainment and news.

Speaker Change: The NBA is decision to partner with US is a testament to our breadth and reach our operational excellence and sports and innovation and our decades of experience delivering world class content to consumers.

Michael J. Cavanagh: Much like our longstanding relationships with the NFL and the Olympics, we look forward to putting the weight of our entire company behind our partnership with the NBA for decades to come. Before I hand this over to Jason, I want to share one final thought. In just a few short days, we have the honor of kicking off the 2024 Olympic Games in Paris. This will be NBCUniversal's 18th Olympic Games as a U.S. broadcaster, dating back to 1936, when we first covered the historic event on NBC radio.

Speaker Change: Much like our longstanding relationships with the NFL and the Olympics, we look forward to putting the weight of our entire company behind our partnership with the NBA for decades to come.

Speaker Change: Before I hand, it over to Jason I want to share one final thought and just a few short days, we have the honor of kicking off the 2024 Olympic games in Paris.

Jason: This will be NBC, Universal's, 18th Olympic games, as a U S broadcaster dating back to $19 36, when we first covered the historic events on NBC radio it.

Jason S. Armstrong: It is one of the great moments of pride for our company, and I want to thank the 3,000 people working to bring all of the action, excitement, and incredible stories to our viewers across the country. Jason, over to you. Thanks, Mike. And good morning, everybody. I'll start with our consolidated results on slide three. Total revenue decreased 2.7% to $29.7 billion.

Jason: It is one of the great moments of pride for our company and I want to thank the 3000 people working to bring all of the action excitement and incredible stories to our viewers across the country Jason over to you.

Jason S. Armstrong: Within these results are six major growth drivers, including residential broadband, wireless, business services connectivity, theme parks, streaming, and premium content at our studios. These generated over $16 billion in revenue, well over half of our total company revenue, and grew at a mid-single-digit rate over the past 12 months. Keep in mind that in the second quarter of last year, we had one of our most successful quarterly theatrical results in our history, which included two of 2023's top five grossing films at the worldwide box office, the Super Mario Brothers movie and Fast X, and as such, this quarter is difficult to compare. If we exclude our studio results, total revenue would have been consistent with the prior year. Total EBITDA was consistent at $10.2 billion, and free cash flow was $1.3 billion.

Jason: Thanks, Mike and good morning, everybody I'll start with our consolidated results on slide three.

Jason: Total revenue decreased two 7% to $29 7 billion within these results our six major growth drivers, including residential broadband wireless business services connectivity theme parks streaming and premium content at our studios generated over $16 billion in revenue well over half of our toll.

Jason: Company revenue and grew at a mid single digit rate over the past 12 months keep in mind that in the second quarter of last year. We had one of our most successful quarterly theatrical results in our history, which included two of 2020 Three's top five grossing films at the worldwide box office of Super Mario Brothers movie and fast X and as such.

Jason: <unk> created a difficult comparison this quarter if.

Jason: If we exclude our studio results total revenue would have been consistent with the prior year.

Joe: Total EBITDA was consistent at $10 2 billion and free cash flow was $1 3 billion free cash flow was impacted this quarter by higher than usual cash taxes, which were up $2 billion over last year's level and were impacted by a tax payment associated with our Hulu stake and other tax related matters as Joe.

Jason S. Armstrong: Free cash flow was impacted this quarter by higher-than-usual cash taxes, which were up $2 billion over last year's level, and were impacted by a tax payment associated with our HULU stake and other tax-related matters. As you'll recall, we received a minimum floor payment for Hulu at the end of last year. During the second quarter, we returned $3.4 billion of capital to shareholders, including $2.2 billion in share rate purchases. And over the last 12 months, we have reduced our share count by over 6%, contributing to our adjusted EPS growth of 7%.

Joe: Recall, we received a minimum floor payment for Hulu at the end of last year.

Joe: During the second quarter, we returned $3 4 billion of capital to shareholders, including $2 2 billion in share repurchases and over the last 12 months, we have reduced our share count by over 6% contributing to our adjusted EPS growth of 7%.

Jason S. Armstrong: Now let's go through our business results, starting on slide four with connectivity and platform. As usual, I will refer to our year-over-year growth on a constant currency basis. Revenue for total connectivity and platforms was consistent at $20.2 billion, as strong growth in our connectivity businesses was offset by declines in video and voice revenue. Residential connectivity revenue grew 6%, comprised of 3% growth in domestic broadband, 17% growth in domestic wireless, and 14% growth in international connectivity. Business services connectivity revenue also grew 6%.

Joe: Now, let's go through our business results, starting on slide four with connectivity and platforms.

Joe: As usual I will refer to are year over year growth on a constant currency basis.

Joe: Revenue for total connectivity and platforms was consistent at $20 2 billion as strong growth in our connectivity businesses was offset by declines in video and voice revenue.

Joe: Residential connectivity revenue grew 6% comprised of 3% growth in domestic broadband 17% growth in domestic wireless and 14% growth in international connectivity.

Joe: Services connectivity revenue also grew 6%.

Jason S. Armstrong: In domestic broadband, our revenue growth was again driven by strong ARPU growth, which increased 3.6% this quarter, well within our historical range as our team continues to effectively balance rate and volume through customer segmentation. The environment for broadband subscribers remains intensely competitive, which when combined with traditional negative seasonality in the second quarter led to one hundred and twenty thousand subscriber losses. Related to this, I would like to spend a minute on the ACP. It has been well documented that the government ended all funding for the ACP program in June.

Joe: In domestic broadband our revenue growth was again driven by strong <unk> growth, which increased three 6% this quarter well within our historical range as our team continues to effectively balanced rate and volume through customer segmentation the.

Joe: The environment for broadband subscribers remains intensely competitive, which when combined with traditional negative seasonality in the second quarter led to 120000 subscriber losses.

Joe: Related to this I would like to spend a minute on ACP.

Joe: It has been well documented that the government ended all funding for the ACP program in June consistent with our approach to normal promotional roll offs, we were proactive and prepare for this action early in the quarter communicating with our ACP customer base and migrating many of these customers to different products and price levels.

Jason S. Armstrong: Consistent with our approach to normal promotional roll-offs, we were proactive and prepared for this action early in the quarter, communicating with our ACP customer base and migrating many of these customers to different products and price levels. While this had a bit of an impact on ARPU in the quarter, we still feel very comfortable that we will remain well within our historical 3 to 4 percent ARPU growth range for the remainder of the year. In terms of subscribers, we saw minimal impact from the end of ACP this quarter.

Joe: While this had a bit of an impact on <unk> in the quarter, we still feel very comfortable that we will remain well within our historical 3% to 4% ARPA growth range for the remainder of the year.

Speaker Change: In terms of subscribers, we saw minimal impact from the end of ACP This quarter.

Jason S. Armstrong: Looking ahead, we expect the bulk of our ACP-related subscriber activity to happen in the third quarter, including losses associated with non-pay churn. However, it's too early to assess the full impact. We are encouraged by the response we have seen from these customers to date. Outside of ACP, we are seeing the same level of competitive intensity and expect an offset from seasonal tailwinds as the third quarter is typically a seasonally stronger quarter compared to the second.

Speaker Change: Looking ahead, we expect the bulk of our ACP related subscriber activity to happen in the third quarter, including losses associated with non pay churn.

Speaker Change: While it's too early to assess the full impact we are encouraged with the response, we see from these customers to date.

Speaker Change: Outside of ACP, we are seeing the same level of competitive intensity and expect an offset from seasonal tailwind as the third quarter is typically a seasonally stronger quarter compared to the second.

Jason S. Armstrong: Turning to domestic wireless, revenue growth was mainly driven by service revenue, with some modest growth in equipment revenue this quarter as well. Customer lines increased 20% year-over-year, reaching 7.2 million in total, including 322,000 line additions this quarter.

Speaker Change: Turning to domestic wireless revenue growth was mainly driven by service revenue with some modest growth in equipment revenue this quarter as well customer lines increased 20% year over year, reaching $7 2 million in total, including 322000 line additions this quarter.

Jason S. Armstrong: The acceleration in line additions compared to the prior several quarters was driven by some early success with new pricing plans launched in April targeted at multi-line customers, as well as continued traction with our buy one, get one line offer. And you will see us continue to test new ways to capitalize on the significant opportunities we see ahead for us in wireless in terms of both increasing the penetration of our domestic residential broadband customer base, which currently sits at 12%, as well as selling additional lines per account.

Speaker Change: The acceleration in line additions compared to the prior several quarters was driven by some early success with new pricing plans launched in April targeted multiline customers as well as continued traction with our buy one get one line offer and you will see us continue to test new ways to capitalize on the significant opportunities. We see ahead for us and.

Speaker Change: Wireless in terms of both increasing the penetration of our domestic residential broadband customer base, which currently sits at 12% as well as selling additional lines per account.

Jason S. Armstrong: Wireless continues to be a key growth area for us, and one in which we are striking the right balance in delivering exceptional value to our customers, bundling to enhance our opportunities in broadband, and continuing to drive profitability higher. International connectivity revenue was mainly driven by broadband, which accounts for over two-thirds of our international revenue and grew at a mid-teens rate, reflecting strong RPCs. The remainder is wireless, which grew due to both additional lines and ARPU growth, but at a lower rate due to the variability in hand.

Speaker Change: Wireless continues to be a key growth area for us and one in which we are striking the right balance and delivering exceptional value to our customers bundling to enhance our opportunities in broadband and continuing to drive profitability higher.

Speaker Change: International connectivity revenue was mainly driven by broadband which accounts for over two thirds of our international revenue and grew at a mid teens rate, reflecting strong ARPA growth.

Speaker Change: The remainder is wireless which grew due to both additional lines and ARPA growth, but at a lower rate due to the variability enhanced set sales.

Jason S. Armstrong: Business services connectivity revenue growth of 6% reflects steady growth in small business with even faster growth in mid-market and enterprise. While the SMB market remains competitive, we are competing aggressively by delivering best-in-class products and services and growing revenue through ARPU growth, driven by higher adoption of additional products that expand our relationship with our SMB customers, like mobile, SecurityEdge, ConnectionPro, and Wi-Fi Pro, as well as through targeted rate operations. At the mid-market and enterprise level, our revenue growth is primarily fueled by an increase in our customers.

Business services connectivity revenue growth of 6% reflects steady growth in small business with even faster growth in mid market and enterprise, while the SMB market remains competitive we are competing aggressively by delivering best in class products and services and growing revenue through ARPA growth driven by higher adoption.

Speaker Change: Of additional products that expand our relationship with our SMB customers like mobile security edge connection pro and Wi Fi pro as well as through targeted rate opportunities.

Speaker Change: At the mid market and enterprise level, our revenue growth is primarily fueled by the increase in our customers driven by the investments. We have made in this space to build sales and fulfillment as well as expanding our capabilities in managed services wide area networking and cyber security.

Jason S. Armstrong: This is driven by the investments we have made in this space to build sales and fulfillment, as well as expand our capabilities in managed services, wide area networking, and cybersecurity. Finally, video and other revenue declined in the quarter.

Speaker Change: Finally video and other revenue declined in the quarter. The high single digit decline in our video revenue is a function of continued customer losses, coupled with slower domestic ARPA growth versus last year and the lower other revenue mainly reflects the continued customer losses and wireline voice.

Jason S. Armstrong: The high single-digit decline in our video revenue is a function of continued customer losses coupled with slower domestic ARPU growth versus last year, and the lower other revenue mainly reflects continued customer losses in wireline voice. Connectivity and Platforms total EBITDA increased 1.6%, with margin up 90%. Reflecting a decline in overall expenses driven by the continued mix shift to our higher-margin connectivity business, coupled with ongoing expense management. As I have previously mentioned in prior quarters, and think it is worth noting here, the only expense line item that had a meaningful increase over last year was direct product costs, which are success-based and tied to growth in our connectivity budget.

Speaker Change: Connectivity and platforms total EBITDA increased one 6% with margin up 90 basis points, reflecting a decline in overall expenses driven by the continued mix shift to our higher margin connectivity businesses, coupled with ongoing expense management.

Speaker Change: As I previously mentioned in prior quarters and think is worth noting here is that the only expense line item that had a meaningful increase over last year with direct product costs, which are success based and tied to growth in our connectivity businesses.

Jason S. Armstrong: Breaking out our connectivity and platforms evithou results further, residentially, but increased 1.1%, with margins improving 100 basis points to 39.9%. Marketing Business Services EBITDA growth rebounded nicely this quarter, returning to a mid-single-digit rate, while margin declined 70 basis points to 57 percent, reflecting the investments in sales and fulfillment we are making to scale in the mid-market and enterprise sectors. Now, let's turn to content and experiences on slide five. Revenue decreased 7.5% to $10.1 billion, and EBITDA decreased 11% to $1.9 billion. I'll detail these results further, starting with Theme Park. Revenue decreased 11% and EBITDA declined 24% in the quarter compared to last year's record level for the second quarter.

Reza: Breaking out our connectivity and platforms EBITDA results further reza.

Reza: Residential EBITDA increased one 1% with margins improving 100 basis points to 39, 9%.

Reza: And business services EBITDA growth rebounded nicely this quarter returning to a mid single digit rate, while margin declined 70 basis points to 57%, reflecting the investments in sales and fulfillment, we are making to scale in the mid market and enterprise space.

Jason S. Armstrong: As Mike highlighted, two-thirds of the decline was driven by our domestic parks due to lower attendance compared to last year, largely reflecting two factors: normalization and demand post-COVID combined with the timing of our domestic attractions. This is the first full quarter comparison to the highly successful opening of Super Nintendo World in Hollywood early last year, which drove that park's record results in the second quarter of last year. And we haven't launched a major new attraction in Orlando since VelociCoaster in 2021, in anticipation of Epic Universe, which we originally planned to open this year.

Reza: Now, let's turn to content and experiences on slide five.

Reza: Revenue decreased seven 5% to $10 1 billion and EBITDA decreased 11% to $1 9 billion.

Speaker Change: I'll detail. These results further starting with theme parks revenue decreased 11% and EBITDA declined 24% in the quarter compared to last year's record level for our second quarter.

Speaker Change: As Mike highlighted two thirds of the decline was driven by our domestic parks due to lower attendance compared to last year, largely reflecting two factors normalization in demand post COVID-19 combined with the timing of our domestic attractions.

Reza: This is the first full quarter comparison to the highly successful opening of Super Nintendo World in Hollywood early last year, which drove that parks record results in the second quarter of last year, and we haven't launched a major new attraction in Orlando since philosophy coaster in 2021 in anticipation of epic universe, which we originally.

Reza: We planned to open this year on the international side underlying growth at our park in Osaka continues partially offset by foreign currency as well as some softness at universal Beijing due to the local macroeconomic environment.

Jason S. Armstrong: On the international side, underlying growth at our park in Osaka continues, partially offset by foreign currency, as well as some softness at Universal Beijing due to the local macroeconomic environment. To reiterate, we couldn't be more bullish about the long-term trajectory of PARC. In addition to Epic Universe, we have a fantastic slate of new attractions and experiences on the horizon, including Donkey Kong Country in Osaka and a Fast and Furious roller coaster in Hollywood, as well as Universal Horror Unleashed in Las Vegas and our Universal Kids Resort coming to Texas.

Reza: To reiterate we couldnt be more bullish about the long term trajectory of parks.

Reza: In addition to epic Universe, we had a fantastic slate of new attractions and experiences on the horizon Donkey Kong country in Osaka, and a fast and furious roller coaster in Hollywood as well as the Universal horror unleashed in Las Vegas, and our Universal Kids resort coming to Texas.

Jason S. Armstrong: Now let's turn to media, where revenue increased 2% and EBITDA was up 9%, driven by PQ. Peacock revenue grew to 28%, with 9% growth in advertising and 61% growth in distribution, driven by a 38% year-over-year increase in our paid subscriber base to 33 million. On a sequential basis, we held subscribers fairly steady. As we noted during our last earnings call, our focus in the second quarter was on subscriber retention due to the lack of new tentpole content in the quarter. This timing and content also contributed to some relief in our expenses, which helped drive a year-over-year Peacock EBITDA improvement of $300 million.

Reza: Now, let's turn to media, where revenue increased 2% and EBITDA was up 9% driven by Peacock.

Speaker Change: <unk> revenue grew 28% with 9% growth in advertising and 61% growth in distribution driven by the 38% year over year increase in our paid subscriber base to $33 million on a sequential basis, we held subscribers fairly steady.

Speaker Change: As we noted during our last earnings call our focus in the second quarter was on subscriber retention due to the lack of new tentpole content in the quarter. This timing and content also contributed to some relief in our expenses, which helped drive year over year Peacock EBITDA improvement of $300 million. We are pleased with the progress we're making.

Jason S. Armstrong: We are pleased with the progress we are making, with media EBITDA for the first half of the year up nearly 3% as the improvement at Peacock outweighed the pressure at our TV network. As we look to the second half of the year, we expect continued modest growth in overall media EBITDA, but with some variation in the degree of year-over-year improvement between the quarters, driven by the timing of sports, entertainment launches, and marketing.

Speaker Change: With media EBITDA for the first half of the year up nearly 3% as the improvement at Peacock outweighed the pressure at our television networks.

Speaker Change: As we look to the second half of the year. We expect continued modest growth in overall media EBITDA, but with some variation in the degree of year over year improvement between the quarters driven by the timing of sports entertainment launches and marketing.

Jason S. Armstrong: Beginning in the third quarter, we are loaded with incremental content, including the Olympics, Sunday Night Football, which will have an additional game fall into the third quarter, as well as Peacock's exclusive NFL game from Brazil, and the return of Big Ten. Given the timing of this content, EBITDA growth will be skewed to the fourth quarter. At studios, revenue decreased 27%, and EBITDA decreased 51%, reflecting both the timing of our film slate and a tough comparison relative to last year's second quarter, which included the tremendously successful Super Mario Bros., as well as the slow.

Speaker Change: Beginning in the third quarter, we are loaded with incremental content, including the Olympics Sunday night football, which will have an additional game fall into the third quarter as well as peacocks exclusive NFL game from Brazil, and the return of Big 10, given the timing of this content EBITDA growth will be skewed to the fourth quarter.

Speaker Change: At studios revenue decreased 27% and EBITDA decreased 51%, reflecting both the timing of our film slate and a tough comparison relative to last year's second quarter, which included a tremendously successful Super Mario Brothers movie as well as fast Act.

Jason S. Armstrong: We have said our film slate is weighted to the back half of the year, which we believe will drive better year-over-year performance. And we're off to a strong start. Despicable Me 4 had a terrific opening weekend earlier this month, making the Despicable Me series of movies the first animated franchise in history to cross the $5 billion mark.

Speaker Change: We have set our film slate is weighted to the back half of the year, which we believe will drive better year over year performance and we're off to a strong start despicable me four had a terrific opening weekend earlier this month, making the Despicable me series of movies. The first animated franchise in history to cross the $5 billion, Mark and Twisters is off to a.

Jason S. Armstrong: And Twisters is off to a strong start, landing at number one at the box office this past weekend. And we're excited about our upcoming titles, including Wild Robot in September and Wicked in November. I'll wrap up with free cash flow and capital allocation on slide 6. As I mentioned earlier, we generated $1.3 billion in free cash flow this quarter, which included a $2 billion increase in cash taxes over last year's level. Total capital spending declined 10% compared to last year, with the $3.4 billion in spending reflecting the significant investments we continue to make to support our growth drivers, such as 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 opening in Turning to return of capital, for the quarter, we returned a total of $3.4 billion to shareholders.

Speaker Change: Strong start landing at number one at the box office. This past weekend and we're excited about our upcoming titles, including Wild robot in September and Wicked in November.

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

Speaker Change: As I mentioned earlier, we generated $1 3 billion in free cash flow this quarter, which includes a $2 billion increase in cash taxes over last year's level.

Speaker Change: Total capital spending declined 10% compared to last year with the $3 4 billion in spending reflecting the significant investments we continue to make to support our growth drivers such as expanding our footprint and further strengthening our domestic broadband network scaling our streaming business and supporting the continued build of our epic universe theme.

Speaker Change: Park ahead of its opening in 2025.

Jason S. Armstrong: This includes share repurchases of $2.2 billion and dividend payments of $1.2 billion. Notably, since we restarted our buyback program just three years ago, we have reduced our share count by 16% and returned just under $50 billion to shareholders through a combination of buybacks and dividends. Prudently balancing investments we've made in the business around our six core growth drivers, protecting a strong balance sheet and providing strong capital returns to shareholders. Now, I will turn it over to Brian for some closing remarks. Okay, Brian?

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

Speaker Change: Notably since we restarted our buyback program just three years ago, we have reduced our share count by 16% and returned just under $50 billion to shareholders through a combination of buybacks and dividends prudently balancing investments we've made in the business around our six core growth drivers protecting our strong balance sheet and providing.

Speaker Change: Strong capital returns to shareholders now.

Speaker Change: Now, let me turn it over to Brian for some closing remarks, Brian.

Brian L. Roberts: And just to tie everything together, as Mike and Jason have just said, and as our results continue to show, I really believe we are dealing with the competitive landscape shifts exceptionally well. And that's because we have a great team across the company that knows how to execute and innovate. We have the scale, balance sheet, and relevancy to compete with anyone.

Brian: Thanks, Jim.

Brian: To tie everything together, what Mike and Jason have just said and as our results continue to show I really believe we are dealing with the competitive landscape shifts exceptionally well and thats because we have a great team across the company that knows how to execute and innovate we have the scale balance sheet and relevancy to compete with anyone.

Marci Ryvicker: So if you think about what we're doing to position ourselves for growth, we've expanded our broadband network by 1.2 million new homes passed in the last 12 months, the most in the company's history, and we plan to continue to do that. We're upbeat about the long term in parks, despite this quarter, and are about to finish building the biggest, most technologically advanced theme park to hit the U.S. market in decades with Epic Universe next year.

Speaker Change: So if you think about what we're doing to position ourselves for growth. We've expanded our broadband network by one 2 million new homes passed in the last 12 months. The most in the company's history and we plan to continue to do that.

Speaker Change: We're upbeat about the long term in parks. Despite this quarter and are about to finish building. The biggest most technologically advanced theme park to hit the U S market in decades with epic Universe next year.

Marci Ryvicker: And as you've seen recently, instead of engaging in a process to buy content companies, we have focused primarily on organic opportunities like the NBA, one of the most coveted sports franchises across the globe, which will help drive growth for us well into the future. With that, let's hand it over to Marci to take your questions. Thanks, Brian.

Speaker Change: And as you've seen recently instead of engaging in a process to buy content companies.

Speaker Change: We are focused primarily on organic opportunities like the MBA one of the most coveted sports franchises across the globe, which will help drive growth for us well into the future.

Speaker Change: With that let's hand, it over to Marcy to take your questions. Thanks, Brian Operator, we are ready to open the line for questions. Please.

Operator: Operator, we are ready to open the line for questions. Thank you. We'll now begin the question and answer session. If you have a question, please press star and the number one on your touchtone phone. If you wish to be removed from the queue, please press star and then number 2. If you are using a speakerphone, you may need to pick up your handset first before pressing the number.

Speaker Change: Thank you well now begin the question and answer session. If you have a question. Please press star and the number one on your Touchtone phone.

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

If youre using a speakerphone you may need to pick up your handset first before pressing the numbers.

Operator: Once again, if there are any questions, please press star, then the number one on your touchtone phone. Our first question today is coming from Ben Swinburne from Morgan Stanley. Your line is not live. Thank you. Good morning.

Speaker Change: And if there are any questions. Please press star then the number one on your Touchtone phone.

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

Benjamin Daniel Swinburne: And Mike, thanks for all the detail on the NBA contract. I appreciate that. I want to ask about parks and broadband.

Benjamin Daniel Swinburne: Thank you good morning, and Mike Thanks for all the detail on the NBA contract appreciate that I wanted to ask about parks and and broad bed.

Benjamin Daniel Swinburne: Maybe, Jason, on broadband, you made some comments about ACP and how Dave and the team are managing. It seems like it's going well. It seemed like you were implying third quarter losses might be down from Q2.

Jason: Maybe Jason on broadband you made some comments about ACP at how David and the team are managing it seems like it's going well.

Speaker Change: It seemed like you were implying third quarter losses might be down from Q2, I don't want to put words in your mouth, but you talked about an offset around seasonality I was wondering if maybe you could revisit that in a little bit about how you guys are managing it from a product and marketing point of view in the third quarter and presumably thats the and we can move on beyond <unk>, we can put ACP behind us. So I wanted to ask about that.

Benjamin Daniel Swinburne: I don't want to put words in your mouth, but you talked about an offset around seasonality. I just wondered if maybe you could revisit that and a little bit about how you guys are managing it from a product and marketing point of view in the third quarter. And presumably, that's the end.

Benjamin Daniel Swinburne: We can move on beyond 3Q. We can put the ACP behind us. So, I wanted to ask about that. You know, in parks, thank you for all the color.

Speaker Change: And then.

Speaker Change: On parks. Thank you for all the color.

Benjamin Daniel Swinburne: When you guys look at your pacing data, you know, which I imagine you've got months ahead of you that you can see, is there any, do you see any turn, or should we be thinking about year-on-year pressure on this segment, you know, moving at least through the end of the year and into next year as we get ready for EPIC? Any more color on sort of what the outlook looks like would be appreciated. Thanks.

Speaker Change: When you guys look at your pacing data.

Speaker Change: <unk> got months ahead of you that you can see is there any do you see any turn or should we be thinking about year on year pressure on this segment you know moving at least through the end of the year and into next year as we get ready for epic any more color on sort of what the outlook looks like would be appreciate it. Thanks so much.

David N. Watson: Hey, Ben, this is Dave. I'm going to jump in a little bit on the ACP part first. So, you know, on, yeah, I think it's important to just cover a little bit of context. And then we'll get to the outlook and view for Q3. You know, most of the enrolled ACP customers, as we said before, have been with us, and they're on a post-paid basis. So I think that's an important thing to remember.

Speaker Change: Hey, Ben this is Dave I'm going to jump in a little bit on the ACP part first so.

Dave: I think it's important just to cover a little bit of context, and then we'll get to the outlook and view of Q3.

Speaker Change: Most of the enrolled ACP customers as we've said before have been with us and.

Speaker Change: They're on a postpaid basis. So I think that's an important thing to remember in our strategy has been consistent we've been looking to help the ACP customers stay connected through a variety of options.

David N. Watson: And our strategy has been consistent. We've been looking to help ACP customers stay connected through a variety of options, you know, starting with Internet Essential. And, you know, since 2011, we've connected millions in the largest, most comprehensive private sector Internet adoption program in the country. The good news is that our ACP customers are eligible to switch to our Internet Essentials tiers that we have; we have a couple. In addition, you know, we have Xenity Mobile, and we have good offers through this transition to help them save money on their monthly bills. The Internet Essential customer, the plus tier, customers could take a free line of Xfinity Mobile for a year, and ACP customers who add Xfinity Mobile can get an additional free unlimited line for a year.

Speaker Change: Starting with Internet essential and since 2011, we've connected millions and the largest most comprehensive private sector Internet adoption program in the country. The good news is that our ACP customers are eligible to switch to our internet essential tiers that we have and we have a couple.

Speaker Change: In addition, we have Xfinity mobile and we have good offers.

Speaker Change: Through this transition.

Speaker Change: And to help them save money on their monthly bills, the internet essential customer plus tier customers could take a free line of Xfinity mobile for year, and ACP customers, who add Xfinity mobile can get an additional free unlimited line for year.

David N. Watson: So, and then we just started with the internet, now mobile, and so nothing material on that, but I think it puts us in a good position as we complete the transition. We've spent, as Jason said, a lot of time thinking about this, been very proactive, and prepared for this, and in many ways, it's similar to the promotional role activity that we've managed for decades. So we're used to that.

Speaker Change: And then we just started with now Internet now mobile and so nothing nothing material on that but I think it puts us in good position as we complete the transition. We've spent as Jason said, we've spent a lot of time thinking about this been very proactive prepared for this and in many ways. It's <unk>.

Speaker Change: <unk> to the promotional roll activity that we manage for decades.

Speaker Change: So we're used to that.

David N. Watson: On the, you know, from a subscriber viewpoint, also, as Jason said, we saw a minimal impact in ACP and Q2. Looking forward, we expect the bulk of the ACP subscriber-related activity to happen in the third quarter, including losses associated with non-paid terms, very focused on retention. It's early, but the biggest impact I think we're going to see will be on the non-pay side. And as we're just getting into the beginning of the non-pay cycles, encouragingly, we're not seeing much voluntary churn in this group.

Speaker Change: On the you know from a subscriber viewpoint also as Jason said, we saw a minimal impact and ACP in Q2.

Speaker Change: Looking forward, we expect the bulk of the ACP subscriber related activity that happened in the third quarter, including losses associated with non pay churn.

Speaker Change: Very focused on retention, it's early but the biggest impact I think we're going to see will be in the non pay side and as we're just getting into the beginning of the non pay cycles encouragingly.

Speaker Change: Not seeing much voluntary churn in this group so our goal we'd like to get through the ACP impact as quickly as possible and right now we're planning to take a reserve on incremental non pay activity in the third quarter, but again it is too early to quantify and we just won't know until we're further.

David N. Watson: So our goal is to get through the ACP impact as quickly as possible. Right now, we're planning to take a reserve on incremental non-pay activity in the third quarter. But again, it is too early to quantify, and we just won't know until we're further through the cycle.

Speaker Change: Through the cycle. So we have a normal disconnect process that we've managed for a long period of time and again. This is the postpaid universe that we have managed through so.

David N. Watson: So we have a normal, you know, disconnect process that we've managed for a long period of time. And again, this is the, you know, post-pay universe that we have managed through. So that is our view. I think it will be primarily within Q3, but encouraged by at least the voluntary churn aspect. Yeah, I think Dave said it perfectly.

Speaker Change: That is our view I think it will be primarily within Q3.

Speaker Change: But encouraged by at least the voluntary churn aspect Jason.

Jason: Yes, I think Dave said it perfectly as you think about third quarter, Ben I think unpacking, it and similar to what we saw in the second quarter the competitive environment remains intense, but it's stable, it's sort of no worse no better than we've seen over the past couple of quarters I think that's the starting point and second as we pointed out it's a quarter, where we do get seasonal tailwind is the same thing.

Jason S. Armstrong: As you think about the third quarter, Ben, I think, you know, unpacking it, and similar to what we saw in the second quarter, the competitive environment remains intense, but it's stable; it's sort of no worse, no better than we've seen over the past couple of quarters, so I think that's the starting point. Second, as we pointed out, it's a quarter where we do get seasonal tailwinds; the same things that were headwinds in the second quarter largely become tailwinds in the third quarter, and then there's ACP that works against that, so we will see an impact.

Speaker Change: There were headwinds in the second quarter largely become tailwind in the third quarter.

Speaker Change: And then Theres ACP that works against that where we will see an impact as Dave said the intention is to be largely through the impact by the end of the third quarter between actions. We've seen and then a reserve we will take and so thats. The thing we have to make sure we're executing very well against but as Dave said the early trends on that whether it's voluntary churn or trends, we've seen so far and nonpaying building non.

Jason S. Armstrong: As Dave said, the intention is to be largely through the impact by the end of the third quarter between actions we've seen and then a reserve we will take, and so that's the thing we have to make sure we're executing very well against, but as Dave said, the early trends on that, whether it's voluntary turn or trends we've seen so far in non-pay and building non-pay and reserves around that are encouraging. Ben, it's Mike on parks.

<unk> reserves around that are encouraging.

Michael J. Cavanagh: So to, you know, hit on that again and appreciate the question. I think we covered a lot in the earlier remarks, but I'll start where Brian last finished, which is that we couldn't be more excited about and confident in the long-term trajectory of the parks business, particularly as we look ahead to next year with Epic Universe, which is truly looking truly unbelievable. And then other attractions coming, Hollywood, Hollywood's going to get a coaster, and Donkey Kong Country into Osaka in the latter part of this year, timing TBD on both of those.

Speaker Change: Great and then Ben it's Mike on Park, so to hit on that again and I. Appreciate the question I think we covered a lot in the.

Mike: The earlier remarks, but I'll I'll start where Brian last finished switches, we couldnt be more excited about and confident in the long term trajectory of the parks business, particularly as we look ahead to next year with epic universe, which is truly looking truly unbelievable and then other attractions coming Hollywood Hollywood is going to get a.

Mike: Coaster and.

Michael J. Cavanagh: But in the near term, I think that the domestic attendance challenge that was what drove two-thirds of the poor comparison, the factors causing that, which is really the COVID pull forward that we talked about, and the timing of attractions, particularly in Hollywood, Lapping, Super Nintendo, and in Florida, the fact that we originally planned to have Epic open this year, but COVID pushed it back, and so we have a lull in the So as a result of that, I think the factors, even though we're excited about Hollywood Horror Nights in the second half of the year and a little bit of moving past Lapping, I think that the trends that we are experiencing will likely continue till we get to Epic opening up sometime next year. Thank you, guys. Thanks, Ben.

Donkey Kong country into Osaka in the latter part of this year timing TBD on both of those but in the near term I think that the domestic attendance challenge that was what drove two thirds of the poor comparison, the factors, causing that which is really the COVID-19 pull forward that we talked about.

Mike: And the timing of attractions, particularly in Hollywood lapping Super Nintendo.

Mike: And then in Florida. The fact that we originally planned to have.

Mike: Epic opened this year, but with Covid pushed it back and so have a lull in the action. We haven't started the new big attraction since block velocity coaster in 2020. One so as a result of that I think the factors, even though we're excited about Hollywood horror nights in the second half of the year and a little bit of moving past lapping I think the trends that we are experiencing.

Mike: Likely continue until we get to.

Mike: Until we get to epic opening up sometime next year.

Speaker Change: Thank you guys. Thanks Ben.

Speaker Change: Operator next question please.

Operator: Certainly. The next question is coming from Craig Moffett from Moffett & Nathans, and your line is now live. Hi. Thank you. Good morning.

Speaker Change: Certainly our next question is coming from Craig Moffett from <unk> Nathan Your line is now live.

Craig Eder Moffett: A little bit more on ACP, if I could. Mike, could you just give us any early insight you've got on the delinquency rate for people that are 30 days or 60 days past due, just so we can sort of get a sense of what non-pays may look like? And then presumably there was some impact, certainly there was in the first quarter, of just lower gross ads in the category because new enrollments were shut off, and somebody moving across the street, for example, would lose it at their old address but not be able to get it at their new one.

Craig Eder Moffett: Hi, Thank you good morning.

Speaker Change: A little bit more on ACP, if I could.

Mike: Mike could you just give us any early insight you've got on the delinquency rate for people that are 30 days or 60 days past due just so we can sort of get a sense of what non pays may look like and then presumably there was some impact certainly there was in the first quarter.

Speaker Change: Of just lower gross adds in the category because new enrollments were shut off and.

Speaker Change: Somebody moving across the Street for example would lose it that theyre all the address but not be able to get it at their new one do you have any estimate for how much ACP impact there might have been in.

Craig Eder Moffett: Do you have any estimate for how much ACP impact there might have been in the gross ad category? And then just one simple housekeeping question: you typically report cable margins on the conference call in the script, but I didn't hear it.

Speaker Change: In the.

Speaker Change: The gross AD category and.

Speaker Change: And then just one.

Simple housekeeping question, you typically report cable margins.

Speaker Change: On the conference call in the script I didn't hear it maybe I missed it but I'm wondering if you could.

Speaker Change: Tell us what cable margins were in the quarter.

Craig Eder Moffett: Maybe I missed it, but I'm wondering if you could tell us what cable margins were in the quarter. I'll let Dave handle the ACP question, Craig. Hey, Craig, Dave. So in terms of delinquency rates, you know, there's nothing you're watching.

Speaker Change: I'll, let Dave handle the ACP question, Greg its Mike.

David N. Watson: It's just we have a normal process that we manage through, you know, based on due dates and voices. And it goes, you know, anywhere from two to three months. There's nothing at this point to report on at this stage, but we watch it closely. Other than to go back to what I said, we've been very proactive. And I think we're helped by experience and promotion roles. And the fact that we try to put customers into packages that make sense for them proactively. So there's a lot of work that went into that, you know, ahead of time, but nothing at this stage.

Dave: Hey, Craig Dave So.

Terms of delinquency rates.

Speaker Change: There is nothing you are watching is just we have a normal process that.

Speaker Change: We managed through based on due dates and voices and it goes anywhere from two to three months.

Speaker Change: Nothing at this point to report on it at this stage, we watch it closely other than to go back to what I said been very proactive and I think we're helped by.

Speaker Change: Experience in promotional rolls and the fact that we tried to put customers into packages that made sense for them proactively. So there's a lot of work that went into that.

David N. Watson: And we'll give more as we go. In terms of the question, in terms of lower gross advertising impacts on connects, it was not material that we saw in Q2. So maybe just a little bit in terms of things that we said, but it wasn't a substantial impact in Q2. And we think the bulk of what we're seeing is really going to be on the non-pay side, which will occur in Q3. Hey, Craig, let me hit the margin question real quick.

Speaker Change: Ahead of time, but nothing at this stage and we'll give more as we go.

Speaker Change: In terms of the question in terms of lower gross adds impacts on connects it was not material that we saw in Q2, you said, maybe just a little bit in terms of things that we said, but yes.

Speaker Change: Wasn't a substantial impact in Q2, and we think the bulk of what we're seeing.

Speaker Change: Is really going to be on the non pay side, which will occur in Q3.

Jason S. Armstrong: So yeah, I would say the way we're looking at the business is really across connectivity and platforms. So, looking at it that way, and managing the business that way. But to unpack it, legacy cable margin, if you wanted to look at it that way, the margin was up 110 basis points in the quarter, so really strong operating improvement to 48.4%. Thanks. Could I squeeze in one more thing about what I think is right now about bead and whether we might see more capital investment on the bead side? Yeah, this is Dave.

Speaker Change: Thanks, Greg Let me hit the margin question real quick so yeah, I would say the way we're looking at the business is really across connectivity and platforms. So looking at it that way and managing the business that way, but to unpack. It legacy cable margin. If you wanted to look at it that way the margin was up 110 basis points in the quarter, So really strong.

Speaker Change: Operating improvement to 48, 4%.

Speaker Change: Okay. Thanks can I squeeze in one more.

Speaker Change: Thinking is right now about speed and whether we might see.

Speaker Change: More capital investment in the <unk> side.

David N. Watson: Yo, Bede. We're looking at it very closely. It is going to be worked out on a state-by-state basis. We're optimistic, you know, in a lot of cases, but we'll have to look for the guidelines and the specifics, you know, tied to them. Nothing at this point would suggest we're going to be beyond, you know, the capital intensity that we've already given out. I think we're optimistic. One of the points that Brian mentioned, you know, the 1.2 million that we've done in the last 12 months is astounding, and the machine is really going. So we're leaning in, going for it, but, you know, Bede will be on a state-by-state basis.

Dave: Yes. This is Dave.

Dave: B, we're looking at it.

Speaker Change: Very closely.

Speaker Change: It is going to be worked out on a state by state basis.

Speaker Change: We're optimistic.

Speaker Change: A lot of cases, but we'll have to look for the the guidelines and the specifics.

Speaker Change: Tied to it.

Nothing at this point with suggests we're going to be beyond the capital intensity that we've already given out I think with all that we're optimistic.

Speaker Change: One of the points that Brian mentioned.

Brian: One 2 million that we've done in the last 12 months is astounding.

Brian: The machine is really going so we're leaning and going for it.

Speaker Change: <unk> will be on a state by state basis.

Operator: Operator, we are now ready for the next question. The next question is coming from Jessica Rieferlich from Bank of America. Your line is now live. I was hoping that you could walk us through how you do.

Speaker Change: Operator, we are now ready for the next question.

Jessica Reif Cohen: Positive Financial, and maybe elaborate a little more on what role Peacock will play in other areas, including general entertainment. And then, as part of Peacock, maybe you could talk about things like the stream saver, the bundle, Netflix, and Apple TV. The up front is now done, maybe you can talk a little bit about... unique selling positions you've had relative to others and what the volume is overall, pricing, et cetera, just what you're seeing overall. Sure. Hey Jessica, it's Mike.

Speaker Change: Certainly the next question is coming from Jessica Reif Ehrlich from Bank of America. Your line is ally.

Speaker Change: Thank you.

Speaker Change: And that'd be a question and and also one on advertising.

Speaker Change:

Speaker Change: Benefits.

Speaker Change: Pretty obvious it's getting the MBA, but it does come at a significant price.

Speaker Change: I'm, just hoping you could walk us through how you expect to make a positive financial return.

Speaker Change: And maybe elaborate a little more on what volt Peacock will play.

Speaker Change: Clear benefit there.

Speaker Change: How does it affect how does this new deal in pet programming spend for other areas, including General Entertainment.

Speaker Change: And then as part of pickup maybe you could talk about like the the stream savor the bundle with.

Speaker Change: Netflix and Apple TV and the response, you've had and then on advertising.

Speaker Change: The upfront is now done maybe you can talk about it a little bit about the <unk>.

Speaker Change: A unique selling position you've had relative to others.

Speaker Change: The volume is overall pricing.

Speaker Change: Pricing et cetera, just what youre seeing in the overall market.

Michael J. Cavanagh: So I think I've essentially covered everything that I wanted to cover and can cover at this stage in the NBA in the prepared remarks. Obviously, when the NBA makes its ultimate announcements, that'll be another moment where we can go deeper. But just to the point generally, we are looking at the NBA, as we all said, as some of the premier content that is culturally relevant, excellent audience, widens out the calendar year for us across Peacock and NBC, and can do a lot with the demographics that follow the NBA around other programming.

Speaker Change: Sure Hey, Jessica it's Mike So I think essentially covered everything that I wanted to cover and can cover at this stage an NDA in the prepared remarks, obviously when the NBA mix its ultimate announcements will.

Speaker Change: That'll be another moment, where we can go deeper but just to the point to point generally is that we are looking at the NBA as we all said as some of the premier content that is culturally relevant excellent audience widens out the calendar year for us across <unk>.

Speaker Change: <unk> and NBC.

Speaker Change: Can do a lot with the demographics.

Speaker Change: Following the NBA around other programming. So when you think about the business case for it when you look at the long term and as we are managing the media business broadcast and Peacock as one I think the unique reach that we have an ability for a sport like the NBA to reach so far with our existing <unk>.

Michael J. Cavanagh: So when you think about the business case for it, when you look at the long term and as we are managing the media business broadcast and Peacock as one, I think the unique reach that we have and the ability for a sport like the NBA to reach so far with our existing broadcast business and use, as I said earlier, plenty of exclusive games for Peacock to drive excellent acquisition for Peacock. And we've talked about it before using the NBA.

Speaker Change: Broadcast business and use as I said earlier plenty of exclusive games for Peacock to drive excellent acquisition in Peacock and we've talked about before using NBA and as we've talked about before sports has been a great source of acquisition for us and Peacock and a great source of value to the consumer.

Michael J. Cavanagh: And as we've talked about before, sports has been a great source of acquisition for us in Peacock and a great source of value to the consumer. But what's very interesting to us is how significant the viewership is of sports viewers on Peacock for things other than sports. So when you take a zoom out and think about the total picture of what we're trying to do, which is to bring our excellent TV media assets into the future, I think we view the NBA as an excellent piece in that puzzle. And it will allow us to rebalance programming from other areas. Obviously, we'll fill a few nights on NBC with this content versus other content.

Speaker Change: What's very interesting to us is how significant the viewership is of sports viewers on peacock of things other than sports. So when you take a zoom out and think about the total picture of what we're trying to do which is to bring our excellent TV media assets into the future I think.

Speaker Change: We view the MBA as a <unk>.

Speaker Change: Excellent piece in that puzzle and it will allow us to rebalance programming from.

Speaker Change: From other areas, obviously, we will fill a few nights on on NBC with this content versus other content and you will use this to do acquisition spend and Peacock and lighten up in some other places, but the long term goal for Peacock is to have a service that is a balance.

Michael J. Cavanagh: And we'll use this to do acquisition spend in Peacock and lighten up in some other places. But the long-term goal for Peacock is to have a service that is a balance of sports, entertainment, and news. And so our content teams are now very focused on that new audience and what we're going to be able to do to drive entertainment content with the advantage of being linked closely to the NBA and to the audience that follows it.

Speaker Change: <unk> of Sports Entertainment news and so our content teams are.

Speaker Change: Now very focused on that new audience, and what we're going to be able to do to drive entertainment content.

Speaker Change: With the advantage of being linked closely to the NBA and the audience the 1000.

Michael J. Cavanagh: And then on advertising, so second quarter, pretty, you know, only a slight step down from the first quarter, but clearly, we had a much heavier load of sports in the first quarter than the second quarter. And so, adjusting for that, I'd say again that the advertising market remains pretty stable.

Speaker Change: And then on.

Speaker Change: On advertising.

So second quarter pretty.

Speaker Change: It's only a slight step down from the first quarter, but clearly we had a much heavier load of sports in the first quarter than the second quarter and so that adjusting for that I'd say again that the advertising market remains pretty stable.

Michael J. Cavanagh: We feel very well positioned for the second half of the year with the Olympics coming up, you know, starting this Friday, elections, and a great slate of content coming to NBC and Peacock. In terms of the upfront, we're pleased with our results. Total volume for us is going to be basically in line, you know, with last year as is linear price.

Speaker Change: We feel very well positioned for the second half of the year with the Olympics coming up starting this Friday.

Speaker Change: Elections, and a great slate of content coming to NBC in Peacock.

In terms of the upfront we're pleased with our results total volume for us is going to be basically in line.

Speaker Change: With last year as is linear price.

Michael J. Cavanagh: We got well over a billion dollars in upfront volume for Peacock again, and nice growth over what we had last year. And so, if you step back, we'd say the overall upfront market was pretty solid. We moved quickly given our, you know, strength of our assets to, you know, secure the volume that we got. So we feel we were a success in this more challenging upfront given the arrival of so many new players, especially in the AVOD and SVOD space. So that's the report on the upfronts, but we're moving forward and feel like the team did quite a good job. Thanks, Jessica.

Speaker Change: We got more well over $1 billion in upfront volume for Peacock, again, which and nice growth over what we had last year and so if you step back we'd say the overall upfront market was pretty solid we moved quickly given our strength of our assets too.

Speaker Change: Secure the volume that we got so we feel we were success in this in this more challenging upfront given the arrival of so many of the new players, especially in the.

Speaker Change: <unk> space. So that's that's the report on the Upfronts, but we're moving forward and feel like the team did quite a good job.

Thanks, Jessica Operator next question please.

Operator: Operator, next question, please. Our next question today is coming from John Hodulik from UBS. Your line is now live. Great, thanks.

Jonathan Chaplin: Our next question today is coming from Jonathan <unk> from UBS. Your line is now live.

John Christopher Hodulik: Maybe on the cable side, a little bit better trends in both video and wireless. On the video side, you know, what's driving the improvement there? Do you expect it to continue?

Jonathan: Great. Thanks.

Speaker Change: Maybe on the cable side little bit better trends in both video and wireless.

Speaker Change: On the video side whats driving the improvement there do you expect it to continue and are you seeing any effects of the launch of the <unk> brand and then in wireless you guys talked about some new pricing and promotion.

Speaker Change: You guys think youre benefiting at all from some of the ACP losses on the prepaid side. If you guys saw yesterday, Verizon and I think they sort of turned off 400000 subscribers I think what we'll see something similar with the rest of the wireless companies, but do you think this underlying growth is sustainable or do you think that ACP is somehow boosting the.

John Christopher Hodulik: And are you seeing any effects of the launch of the Now brand? And then, in wireless, you guys talked about some new pricing and promotion, but do you guys think you're benefiting at all from some of the ACP losses on the prepaid side? I don't know if you guys saw yesterday, but Verizon and now they sort of turned off 400,000 subscribers. I think we'll see something similar with the rest of the wireless companies. But do you think this underlying growth is sustainable? Or do you think that ACP is somehow, you know, boosting the growth at the Hey, John, Dave.

Speaker Change: Growth at this point thanks.

David N. Watson: So, in terms of, you know, video, as Jason said, you know, our video losses are lower than the ones, you know, last year, this tide, we did take a slightly lower rate increase this year than last year. And the key for us in video is just positioning video with broadband, and that, you know, video does help in that regard. We've seen positive churn in terms of video, reimagining video around the now TV product and IP, and that has been steady. It's still early, but it has been helpful.

Dave: Hey, John Dave So.

Speaker Change: In terms of video.

Jason: As Jason said.

Speaker Change: It's a R.

Jason: Our video losses are lower.

Jason: Then the ones.

Speaker Change: Last year at this time, we did take a slightly less.

Speaker Change: The rate increase in this year than last year and the key for US in video is just positioning.

Speaker Change: <unk> with broadband.

Speaker Change: And that video does help.

Speaker Change: In that regard we've seen positive churn in terms of video re imagining video around the now TV product and IP and that has been steady it's still early.

David N. Watson: So, video, I think, for the right segment, we offer a lot of value. And, you know, we continue to position it, I think, very well with broadband. But, you know, difficult and still in terms of some of the fees and things that we have, but I think an important category for us.

Speaker Change: But it has been helpful.

Speaker Change: So video I think for the right segment, we offer a lot of value.

Speaker Change: And we continue to position and I think very well with broadband but difficult.

Speaker Change: And still.

Speaker Change: In terms of some of the.

Speaker Change: The fees and things that we have.

Speaker Change: But I think an important category for us.

David N. Watson: So, in terms of the mobile side, now mobile is not material at this point, way too early. The acceleration in line ads over Q1, driven by the early success of the new pricing plans, really competitive now in multi-line pricing, launched in April, targeted for a while, now it's scaling, and it's really gotten traction, as well as the buy one, get one line offer to our base. So wireless is such an important part of our overall strategy, and key that it's 12% penetration, we've got a great runway ahead, business mobile is just getting going, and it's a great position for us in terms of convergence, I think we're uniquely positioned in terms of ubiquitous offers across our entire footprint, and mobile will be front and center as we approach the Olympics, and we will have a great offer with broadband, with mobile, being able to tie all this together, so very excited with it.

Speaker Change: In.

Speaker Change: In terms of the mobile side.

Speaker Change: Now mobile is not material at this point way too early.

Speaker Change: The acceleration in line adds over Q1 driven by.

Speaker Change: The early success of the new pricing plans really competitive now in multiline pricing launched in April.

Speaker Change: <unk> targeted for a while now it's scaling and.

Speaker Change: It has really gotten traction as well as the buy one get one line offer to our base. So wireless is such an important part of our overall strategy and key that it's 12% penetration. We've got great runway ahead business mobile is just getting going.

Speaker Change: And it's.

Speaker Change: It's a great position for us and can terms of convergence I think we're uniquely positioned in terms of ubiquitous offers across our entire footprint.

Speaker Change: And <unk>.

Speaker Change: Mobile will be front and center as we approach the Olympics and we will have a great offer with broadband with mobile being able to tie all this together so very excited with it the comment just one other part in terms of the what happened in terms of horizons.

David N. Watson: The comment, just one other part, in terms of what happened in terms of Horizons, unpacking that, the only thing I'll say is, I think it's an important distinction that our ACP customers are post-paid versus they're prepaid; it's a different group, a different dynamic, and so not really, yeah, we're just getting going on our now products, and so it's very, very early on, Thanks, John.

Speaker Change: Unpacking that.

Speaker Change: The only thing I'll say is I think that's an important distinction.

Speaker Change: Our.

Speaker Change: Customers are postpaid.

Speaker Change: Versus their prepaid it's a different group of different dynamic and so.

Speaker Change: Not really yeah, we're just getting going on are now products and so it's very very early on and excited about that and I think we're introducing it at a very good moment, but it's not material at this stage.

John: Thanks, John Operator, we're ready for the next question.

Operator: Operator, we're ready for the next question. Certainly. The next question is coming from Jonathan Chaplin from Newstreet. Your line is now live. Thanks, guys.

Speaker Change: Certainly next question is coming from Jonathan Chaplin from New Street. Your line is now live.

Jonathan Chaplin: I guess for Jason, two quick ones on... content costs in the connectivity business came in quite a bit lower than we expected. And I'm wondering if you can give us a little bit more color on what's driving the trend there and how sustainable it is. And then we're trending a little bit lower than guidance on CAPEX so far this year. I'm wondering if that's just timing-related, if it picks up in the back half of the year.

Jonathan Chaplin: Thanks, guys I guess for Jason two quick ones on.

Content costs.

Speaker Change: Connectivity business, they came in quite a bit lower than we expected and.

Jonathan Chaplin: I'm wondering if you can give us a little bit more color.

Speaker Change: On what's driving the trend there and how sustainable it is and then we're trending a little bit lower than guidance on capex. So far this year.

Speaker Change: Wondering if that's just tightening related if it picks up.

Speaker Change: In the back half of the year, and then Mike I am not sure if you.

Jonathan Chaplin: And then, Mike, I'm not sure if you've said what you can about the NBA deal. I'm wondering if you can just give us a little bit of context around the timing of costs and revenues, though, when – I recognize it's forward-looking, but when should we expect to see the costs from the new contract start to hit? Thanks, Jonathan.

Mike: I heard you loud and clear on having sort of said what you can.

Speaker Change: On the NBA deal Im wondering if you can just give us a little bit of context around the timing of costs.

Speaker Change: AD revenues, though when I recognize it's forward looking bit when do when should we expect to see the cost from the new contracts start to start to hit thank you.

Jason S. Armstrong: Why don't I start with CapEx; Dave will hit content costs, and then Mike will talk about MBA. So, on CapEx, you're right; we've had some variability this year. I would say, you know, relative to the initial guidance we gave both on the content and experiences side, where we talked about, you know, this is the final significant year of EPIC spending, and then we get relief beyond this. And then on the connectivity and platform side, which I think is probably where more your question was, we gave a capital intensity envelope as we entered the year.

Speaker Change: Thanks, Jonathan why don't I start with Capex, Dave will hit content costs.

Speaker Change: And then Mike with NBA, so on Capex, you're right. We've had some variability this year I would say relative to the initial guidance we gave both on the.

Speaker Change: Content experience aside where we talked about this is the final significant year of FX spending and then we get relief beyond this and then on the connectivity and platform side, which I think is probably where more of your question was we gave a capital intensity envelope as we entered the year. We also said intend to do $1 1 million plus in terms of homes passed were obviously.

Jason S. Armstrong: We also said, you know, we intend to do 1.1 million plus in terms of homes passed. We're obviously trending a little bit above that at this point, but we still feel comfortable with the capital intensity envelope that we gave. And so, there are some timing aspects around equipment purchases within the year, I would say, still feel comfortable with the existing capital intensity envelope. And within that, doing more and more homes passed at a really efficient rate, you know, I think that's a testament to how the team's executing. Jonathan, Dave.

Speaker Change: Trending a little bit above that at this point, but still feel comfortable with the capital intensity envelope that we gave and so there are some timing aspects around equipment purchases within the year I would say still feel comfortable with the existing capital intensity envelope and within that doing more and more homes passed at a really efficient right I think thats a testament to the team's executing here.

Jason S. Armstrong: So just on the content cost side of things, that's also timing related. We, that are, you know, in the sports side, well known, you know, thing in terms of RSNs. And there are other timing-related things; every contract with a programming partner is different, every relationship is different.

Speaker Change: Hey, John Jonathan Dave So just on the content cost side of things. So thats also timing related.

Speaker Change: <unk>.

John Christopher Hodulik: On the sports side, well known thing in terms of <unk>.

John Christopher Hodulik: But there are other timing related things every contract.

With a programming partner is different every relationship is different so I won't go into the specifics, but it is key that we focus on for us flexibility increasing market choice.

David N. Watson: So, you know, I won't go into the specifics, but it is key that we focus on, you know, for us, flexibility, increasing market choice, we segment the marketplace, you know, both video and broadband, and together. And that is important that we're competitive in every segment. And at the end of the day, we're focusing on value, you know, combining linear streaming considerations on a case by case basis, but mostly, at this point, it's timing-related. Jonathan, it's Mike on NBA.

John Christopher Hodulik: Segment, the marketplace, both video and broadband in together and that is important that we're competitive in every segment.

John Christopher Hodulik: At the end of the day, we're focusing on value.

John Christopher Hodulik: Combining linear streaming considerations on a case by case basis, but mostly at this point it is timing related.

Michael J. Cavanagh: You know, I wish it were sooner, but the contract doesn't start till the 2025-2026 season. So it's the fall of 2025 that we would start to bear the expense of the right side of it. And obviously, that is also when we would begin to see the benefits of subscriber acquisition around the NBA. And this is Brian, just want to, close out, perhaps, Mike's opening comments on the NBA. You know, opportunities like this come along very rarely when there's a... Long-term Relationships, Up for Grabs.

John Christopher Hodulik: And Jonathan it's Mike on NBA I wish it was sooner but.

Jonathan Chaplin: The contract doesn't start until the 2025 2026th season. So its fall of 2025 that we would start to bear the expense of.

Jonathan Chaplin: Of the right side of it and obviously that is also as we build into that.

Jonathan Chaplin: When we would.

Jonathan Chaplin: Begin to see the benefits of subscriber acquisition around the India and this is Bryan just want to just close out perhaps.

Bryan: Mike's opening comments on the MBA.

Bryan: It doesn't opportunities like this come along very rarely when there is a.

Brian L. Roberts: Inside, and we'll have, you know, when it gets all announced, the detail that Mike described, we probably have more content than anybody. And it's all, I think, at a value that we'll be able to, as one of the other questions asked, support and demonstrate. And one of our real advantages here is the way we're running the media business. And Mike created one group with our existing assets like NBC and our growing assets like Peacock.

Bryan: Long term relationships up for grabs.

Bryan: Inside and we will have.

Bryan: It gets all announced the detail that Mike described we have probably more content than anybody and it's all I think at a value that we will be able to just.

Speaker Change: One of the other questions asked support and demonstrate.

Bryan: And one of our real advantages here is the way, we're running the media business and Mike created one group with.

Speaker Change: Our existing assets like NBC, and our growing asset like Peacock and putting that together is very appealing.

Brian L. Roberts: And putting that together is very appealing for the reach, for the consumer access, for the innovation that we'll have in the years ahead, and you'll see some of that innovation during the Olympics. There'll be a lot of content on NBC, but way more content on Peacock, and it allows for the trends that we're seeing in viewing behavior. So it's a very exciting moment, and I think we'll have more to say in the weeks ahead. Thanks, Jonathan.

Bryan: For the reach for the consumer access for the innovation that we'll have in the years ahead and Youll see some of that innovation. During the Olympics there'll be a lot of content on NBC, but way more content on Peacock and it allows for.

The trends that we're seeing in viewing behavior. So it's a very exciting moment.

Bryan: And I think we'll have more to say in the weeks ahead.

Speaker Change: Thanks, Jonathan Operator next question please.

Operator: Operator, next question, please. Certainly. The next question is coming from Michael Ng from Goldman Sachs. Your line is now live. Hey, good morning.

Michael J. Cavanagh: Certainly next question is coming from Michael <unk> from Goldman Sachs. Your line is now live.

Michael Ng: Thank you for the question. I just have two: one on business services and one on wireless. First, on business services, I was just wondering if you could talk about some of the key initiatives or things that might be changing at Comcast Business following Ed's appointment as president to more aggressively pursue the mid-market or enterprise. What are you seeing in terms of the competitive side within SMB? Is it just fixed wireless, or is there more to that?

Michael J. Cavanagh: Hey, good morning. Thank you for the question I just have two one on business services and one on wireless.

Michael J. Cavanagh: First on business services I was just wondering if you could talk about.

Speaker Change: Some of the key initiatives or things that might be changing a comcast business. Following ed's appointment as president to more aggressively pursue the mid market or enterprise.

Speaker Change: What are you seeing in terms of the competitive side within SMB is it just fixed wireless or is there more to that.

Michael Ng: And then, on wireless, given the strong potential upgrade cycle on the back of AI smartphones and the iPhone 16, I was just wondering if you'd talk about the Xfinity mobile strategy to capitalize on this from a promotional marketing perspective. You know, what levers are you planning to pull this holiday to potentially lean into wireless to help the broadband business and wireless at large? Thanks. Got it. Thank you. This is Dave.

Speaker Change #100: And then on wireless given the strong potential upgrade cycle in the back of AI smartphones in the iPhone <unk> I was just wondering if you could talk about the Xfinity mobile strategy.

Speaker Change: Capitalizing on this from a promotional and marketing perspective.

Speaker Change: What levers are you planning to pull this holiday to potentially lean into wireless to help the broadband business in wireless.

Speaker Change #101: At large.

David N. Watson: So, a couple of things. Let me start with business. You know, as you said, it is competitive in the small business category. It's competitive in every category, but in particular, the small business one. There certainly is some fixed wireless that we've seen.

Dave: Got it. Thank you. This is Dave So a couple of things, let me start with business.

Speaker Change: Yes, it was.

Speaker Change: It is competitive in the small business category competitive in every category, but.

Speaker Change: And in particular, the small business one there is certainly some fixed wireless.

Speaker Change: That we've that we've seen.

David N. Watson: I saw it in the Verizon results, you know, a pretty high percentage of fixed wireless customers that are in the small business thing, and we look at that closely. We are intensely focused on our competitive playbooks, and we're going to constantly compete for share, but we're also focused on revenue per relationship, and so in the small business area, you know, before getting into the mid-market, we're doing a lot of product upgrades, you know, adding value and speed, Wi-Fi, security, and so we've made good progress and revenue focus on small business, and it's such a huge It's a terrific team in the business services group that he's working with, and there really is, I think, a unique opportunity.

Speaker Change #102: <unk> saw it in the Verizon results.

Speaker Change: Pretty.

Speaker Change: High percentage the fixed wireless that are in the small business thing and where we look at that closely we are intensely.

Speaker Change: Focus on our competitive Playbooks and we're going to constantly compete for sure. But we're also focused on revenue per relationship and so in the small business area.

Speaker Change: Before getting into the mid market, we're doing a lot of product upgrades.

Speaker Change: Adding value and speed Wifi security and so.

Speaker Change: <unk> made good progress and revenue focus around in small business and it's such a huge opportunity for us.

Speaker Change: Still in <unk>.

Speaker Change #103: Terms of small business, but it Ed is step right in and it's a terrific team and the business services group.

Speaker Change #104: That he is working with and there really is I think a unique opportunity. When you look at the overall addressable market of 60 billion less than 20% there and a huge chunk of this will be mid market and enterprise and worked and you add on top of that international opportunity.

David N. Watson: When you look at the overall addressable market of $60 billion, less than 20% is there, and a huge chunk of this will be mid-market and enterprise, and you add on top of that international opportunities that we're beginning to coordinate and work well with Dana and the team at Sky. So, you know, we really are seeing nice growth in the mid-market and enterprise. That's the starting point, but in addition to, like, all of our strategies, we're adding more products and attaching new products to these relationships and going beyond just connectivity to a full managed relationship basis.

Speaker Change #104: Is that where we are beginning to coordinate and work well with Dane and the team at Sky.

Speaker Change #104: So we really are seeing nice relationship growth and mid market and enterprise. That's the starting point, but in addition to all of our strategies, we're adding more products and attaching new products on these relationships and going beyond just connectivity into a full.

Speaker Change #104: <unk> managed relationship basis, So Ed is driving that.

David N. Watson: So Ed is driving that, and we're in a good competitive position for growth, and I think we have a good ability to increase ARPU across an increasing higher-end base of customers. So on the mobile side of upgrade, you know, it is every single upgrade moment, pay close attention to that one, too, and we're optimistic. We're in a good position. We have a great trade-in program for mobile that we've had in place now for a while.

Ed: We're in a good competitive position for growth and I think we have a good ability to increase <unk>.

Ed: Across an increasing higher end base of customers. So.

Ed: On the mobile side of upgrade.

Ed: It is every single upgrade moment pay close attention to that one too and we're optimistic.

Ed: Good position, we have a great trade in program for mobile that we've had in place now for a while.

David N. Watson: And then, in addition to that, we go in and out in terms of subsidies on top of that trade-in program, and then when good upgrade moments happen, we are the switching provider. So when people upgrade, we have great core rates, and we have good handset offers, and a good position for it. So being a switching provider, I think we are in a unique position to really take advantage of that. And when you look at things going into, you know, the optimism for Q3, one of the most important programs that we will do, along with the handset upgrade initiative on mobile, will be the Olympics.

Ed: And then in addition to that we go in and out in terms of subsidies on top of that trade in program and then when good upgrade moments happen. We are switching provider. So when people we have great core rates and we have good handset offers in good position for it so.

Ed: Being a switching provider.

Ed: We are.

Ed: <unk> unique position to really take advantage of that and when you look at things going into the optimism for Q3.

Ed: One of the most important programs that we'll do along with the handset upgrade initiative on mobile will be the Olympics and the Olympics are such a unique opportunity for us to showcase the best broadband the best mobile service offering combining those two things together in such an attractive offer.

David N. Watson: And the Olympics are such a unique opportunity for us to showcase the best broadband, and the best mobile service offering, combining those two things together in such an attractive offer. And on top of that, there is the greatest user interface in the marketplace that helps you find whatever you want.

Ed: On top of that is the greatest UI in the marketplace that helps you find whatever you want so really excited about that look for that in the next couple of days, but mobile will be front and center along with broadband when that happens.

David N. Watson: So, really excited about that. Look for that in the next couple of days, but mobile will be front and center along with broadband when that happens. Great. Thanks, Dave.

Dave So: Thanks, Dave.

Operator: Operator, we have time for one last question. Sure. Our final question today is coming from Steven Cahall from Wells Fargo. Your line is now live. Thanks.

Speaker Change #107: Operator, we have time for one last question.

Speaker Change #108: Certainly our final question today is coming from Stephen call from Wells Fargo. Your line is now live.

Steven Lee Cahall: So with mid splits now reaching over 40 percent of the footprint, I was just wondering if you have an updated outlook on when you think you'll be at DOCSIS 4 for most of your broadband passes. And maybe within this, you could just update us on where fiber overlap is. But also, as you get through this network investment architecture that you laid out earlier this year, when you think about the capital intensity and CNP coming down, and we'll start to see that benefit in growing free cash flow. So timing on that, I think, would be really interesting. And then how are you thinking about getting to just break even on Peacock?

Speaker Change #108: Thanks.

Steven Lee Cahall: And with mid spud now reaching over 40% of the footprint I was just wondering if you have an updated on.

Speaker Change #110: Outlook on when do you think youll be DOCSIS four for most of your broadband pass things and maybe within that if you could just update us on where fiber overlap is but also as you get through this network investment architecture that you laid out earlier. This year. When you think about the capital intensity and CMP coming down and we will.

Speaker Change #111: Start to see that benefit in growing free cash flow. So timing on that I think would be really interesting and then how are you thinking about getting to breakeven on Peacock you talked about media EBITDA on a total basis growing in the first half and in the second half two it seems like if the peacock losses keep getting better at this pace you could be close to breakeven.

Steven Lee Cahall: You talked about media EBITDA on a total basis growing in the first half and in the second half, too. It seems like if the Peacock losses keep getting better at this pace, you could be close to breaking even this time next year. But I know you've got NDA coming. So just wondering if we could think about that benchmark quite yet. Thank you.

Speaker Change #112: At this time next year, but I know you've got NBA coming so I was just wondering if we could think about that benchmark quite yet. Thank you.

Speaker Change #111: Yes.

David N. Watson: This is Dave. Let me start, and then hand it over on the Peacock side. So we're 42% mid-split right now. We expect to be 50% by year-end. And the DOCSIS 4.0 that follows in multiple markets, so far, it's early. You know specifics in terms of, you know, the final rollout on that.

Speaker Change #111: Hey, Stephen This is Dave let me start and then.

Dave So: Hand, it over on the Peacock side. So we're 42% mid split right now and we expect to be 50% by year end.

Speaker Change #113: The DOCSIS four dato that follows multiple markets. So far it's early you know specifics in terms of the final rollout on that but it really is tracking very well on top of the.

David N. Watson: But, you know, it really is tracking very well on top of a lot of new footprint expansions, the 1.2 million over the last 12 months, with these upgrade programs moving along very well. And it tracks to where the customers are and our steady focus around the higher end. And, you know, one of the things that we see, you know, we have the most effective and efficient build that's ubiquitous, that addresses speed, capacity, and coverage.

Speaker Change #113: A lot of new footprint expansion too.

Speaker Change #113: $2 million over the last 12 months with this upgrade program is moving along very well and it tracks to where the customers are and our steady focus around the higher end and one of the things that drive that.

Speaker Change #113: That we see.

Speaker Change #113: We have the most effective and efficient build.

Speaker Change #113: That's ubiquitous that is addressing speed capacity coverage and it helps us as we're doing this remember we're virtualized <unk> huge parts of the network and avoiding future nodes splits. So it's very efficient and helping us with the 70% of our customers are 500, megabits or higher a third are taking a guess.

David N. Watson: And it helps us because as we're doing this, remember, we're virtualizing huge parts of the network and avoiding future node splits. So it's very efficient in helping us, you know, with the 70% of our customers are at 500 megabits or higher, a third are taking a gig. And it's tracking to maybe one of the biggest tailwinds that is out there.

Speaker Change #113: And it's tracking to maybe one of the biggest tailwind that is out there and thats. The fact that our network consumption is still low double digits, increasing and that's not stopping and so we're putting ourselves in position with a great upgrade program.

David N. Watson: And that's the fact that our network consumption is still low double digits increasing, and that's not stopping. And so we're putting ourselves in a position with a great upgrade program. And so that, you know, to me, is, you know, I think a great advantage that we do have. In terms of competition, in terms of fiber, you know, we're now, you know, 50% in terms of the overbuilt. We expect by the end of 25, that number will get to 60%, and we'll probably go higher than that.

Speaker Change #113: And so that to me is.

Speaker Change #113: I think a great advantage that we do have in terms of competition in terms of fiber.

Speaker Change #113: We're now 50% in terms of the overbuilt, we expect by the end of 'twenty five that will get to 60% will probably go higher than that we have a long track record track record of competing against fiber 20 years at this point.

David N. Watson: We have a long track record of competing against fiber, 20 years at this point. So we do think fiber is, quite frankly, the longer-term competitor, keeping our eye on, competing, you know, fiercely against fixed wireless and every competitor. But, you know, we anticipate where they're building, what they're doing, and keeping track of all of that.

Speaker Change #113: No.

Speaker Change #113: We do think fiber is quite frankly, the longer term competitor keeping our eye on.

Speaker Change #113: Compete fiercely against fixed wireless and every competitor, but we anticipate where theyre building, what theyre doing and keeping track of all of that so like our results and encouraged when you look going into Q3, one of the reasons of optimism is that voluntary.

Jason S. Armstrong: So, like our results and encouraged, you know, when you look going into Q3, one of the reasons for optimism is that voluntary, you know, turn that continues to perform very well. And I think it's our superior network combined with better products and extreme focus on competition. Hey, Steven, I would just round that out on the capital intensity question because I think embedded in that was sort of a long-term capital intensity question.

Speaker Change #113: Turn that continues to perform very well and I think that's our superior network combined with better products and extreme focus on competition.

Stephen: Hey, Stephen I would just round that out on the capital intensity question, because I think embedded in that was sort of a long term capital intensity question. If you look at what we're doing now the path towards mid splits, which as Dave mentioned really good progress there that kicking off DOCSIS 4.0, and then adding $1 2 million homes passed which is a record for us in the last 12 months and doing that all within.

Jason S. Armstrong: If you look at what we're doing now, you know, the path towards mid-splits, which, as Dave mentioned, really good progress there, that kicking off DOCSIS 4.0, and then adding 1.2 million homes passed, which is a record for us in the last 12 months, and doing that all within the existing capital intensity envelope, which is one of, if not the lowest in the industry. So, very good progress there. As you think about the longer term, a lot of people ask this question in the context of, "Is there the next big thing coming in terms of the network upgrade?" We feel very comfortable between mid-splits and DOCSIS 4.0, which leads to multi-gigabit symmetrical speeds, that that is the network for the future. So, we don't see the next big thing coming.

Speaker Change #115: Through the existing capital intensity envelope, which is one of if not the lowest in the industry. So very good progress there as you think about longer term a lot of people ask this question in the context of is there. The next big thing coming in terms of the network upgrade we feel very comfortable between mid splits and DOCSIS four O that leading to multi gig symmetrical speeds.

Speaker Change #115: That that is the network for the future. So we don't see the next big thing coming but one area that I'd point out we'd love to do more homes passed we have accelerated the rate from 800000 in the past couple of years up to currently $1 $2 million, we won't gate capital intensity because of that if those if those are good returns and things we should be doing wed love to do more there.

Jason S. Armstrong: The one area that I'd point out is that we'd love to do more homes passed. You know, we've accelerated the rate from 800,000 in the past couple years up to, you know, currently 1.2 million. We won't gate capital intensity because of that.

Speaker Change #115: This is Steven on Peacock and media EBITDA I think you said.

Steven: You heard US right anyway, you heard me right Ive been talking since I've been doing this that I don't really look at Peacock Standalone I mean, it's an interesting exercise and I'm happy to share the numbers of what the.

Speaker Change #115: The losses on Peacock as we're building it.

Speaker Change #115: But strategically to not pursue that path would leave the existing media business on a downward trend. So I think we are thinking about it over multiple years.

Speaker Change #115: Yes.

Speaker Change #115: Very confidence that what we're doing around peacock in the media business together operating together.

Speaker Change #115: Is going to put us on a path to optum.

Speaker Change #122: Optimize that business and as you said I think this is a year a year, where we see the growth in peacock offsetting the decline in some of our linear businesses and that's basically a trend I would expect to see carry forward there.

Speaker Change #115: It's going to be ebbs and flows as Brian said.

Speaker Change #116: So unlike NBA is.

Speaker Change #118: Once in a generation almost to get an opportunity like that so obviously, we'll make some adjustments and it might.

Speaker Change #117: Pause or trajectory of the year, we ticket onboard, but I think it's part and parcel of the idea that we're bringing the media business to a better future by investing behind Peacock and doing it together with all our assets Entertainment sports and news as what our media business, we will look to be in the future.

Speaker Change #116: <unk>.

Speaker Change #120: So thank you everybody I think that's it.

Speaker Change #119: I still Marshalls line.

Marshall: Thanks, Steve that concludes our second quarter earnings call. Thanks for joining us.

Speaker Change #121: Thank you that does conclude today's question and answer session and today's conference call.

Speaker Change #124: 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.

Speaker Change #124: Yeah.

Speaker Change #124: [music].

Michael J. Cavanagh: If those are good returns and things we should be doing, we'd love to do more there. Steven, on Peacock and media EBITDA, I think you heard us right, anyway, you heard me right. I've been talking since I started doing this that I don't really look at Peacock stand-alone.

Michael J. Cavanagh: I mean, it's an interesting exercise, and I'm happy to share the numbers of what the loss is on Peacock as we're building it. But strategically, to not pursue that path would leave the existing media business on a downward trend. I think we're thinking about it for multiple years. I'm very confident that what we're doing around Peacock and the media business together, operating together, is going to put us on a path to optimize that business.

Speaker Change #126: Good morning, ladies and gentlemen, and welcome to Comcast's second quarter earnings Conference call. At this time all participants are in a listen only mode. Please note. This conference call is being recorded.

Speaker Change #127: Now I'll turn the call over to executive Vice President of Investor Relations Ms. Martina by Victor. Please go ahead Ms. Rebecca.

Michael J. Cavanagh: And as you said, I think this is a year where we see growth in Peacock offsetting the decline in some of our linear businesses, and that's basically a trend I would expect to see carry forward. There's going to be ebbs and flows, as Brian said. Something like NBA is once in a generation, almost, to get an opportunity like that.

Speaker Change #128: 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.

Mike: 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 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: So obviously, we'll make some adjustments, and it might pause our trajectory the year we take it on board, but I think it's part and parcel of the idea that we're bringing the media business to a better future by investing behind Peacock. So thank you, everybody. I think that's it. I stole Marci's line.

Mike: Thank you Marcy and good morning, everyone.

Marci Ryvicker: Go ahead. Thanks, Steve. This concludes our second quarter earnings call. Thanks for joining us. Thank you. That does conclude today's 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. ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? [inaudible] Good morning, ladies and gentlemen, and welcome to Comcast's second quarter earnings conference call. At this time, all participants are in a listen-only mode.

Mike: Before I hand, it over to Jason I'd like to comment on three key elements from the quarter.

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

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. Thank you, Marci, and good morning, everyone.

Mike: One broadband to parks and three the NBA.

Michael J. Cavanagh: Before I hand it over to Jason, I'd like to comment on three key elements from the quarter. One, broadband, two, parks, and three, the NBA. So first, broadband, where the competitive intensity that we've seen for the past several quarters, and which is particularly felt in the market for price-conscious consumers, remains essentially unchanged. But throughout this period, our broadband strategy has been consistent, and we remain confident in our plan. We are focused on generating healthy broadband revenue growth by striking the right balance between rate and volume and relying heavily on market segmentation that I'll speak to in a minute. As a result, in the second quarter, our food revenue grew 3.6%, which was within our historical range of 3 to 4%.

Jason: So first is broadband where the competitive intensity that we've seen for the past several quarters, and which is particularly felt in the market for price conscious consumers remains essentially unchanged.

Jason: But throughout this period, our broadband strategy has been consistent and we remain confident in our plan.

Jason: We are focused on generating healthy broadband revenue growth by striking the right balance between rate and volume and relying heavily on market segmentation that will speak to in a minute.

Jason: As a result in the second quarter ARPA grew three 6%, which was within our historical range of 3% to 4%.

Michael J. Cavanagh: Despite the competitiveness of the recent past, we've maintained a market-leading base of 32 million broadband customers by refining our go-to-market approach to create options that fit each of our customers' lifestyles and budgets. Providing the best products with flexibility and choice at different value points has served us extremely well for many years and remains the core of our playbook. Of particular note this quarter, we launched our suite of NOW products, which are high-quality internet, mobile, and streaming TV offerings designed to be incredibly simple with attractive all-in pricing with no contracts or credit checks. These are great options for the price-conscious segment and especially for those impacted by the end of the government's ACP program.

Jason: Despite the competitiveness of the recent past we've maintained our market leading base of 32 million broadband customers by refining our go to market approach to create options that fit each of our customers lifestyles and budgets providing the.

Jason: The best products with flexibility and choice at different value points has served us extremely well for many years and remains the core of our playbook.

Jason: Of particular note this quarter, we launched our suite of now products, which are high quality Internet mobile and streaming T V offerings designed to be incredibly simple with attractive all in pricing with no contracts or credit checks.

Jason: These are great options for the price conscious segment, and especially for those impacted by the end of the government's ACP program.

Michael J. Cavanagh: While we are pleased with our enhancements to our offerings for the price-conscious segment, the reality is that the vast majority of our customer base subscribes to more premium products where we feel great about our market position relative to fiber, which is our true long-term competitor. We are investing in additional network capacity, multi-gig speeds, and in-home Wi-Fi technology to capitalize on the internet consumption trends we are seeing. One of the most important metrics we monitor is the magnitude of data traffic flowing across our network.

Jason: While we are pleased with our enhancements to our offerings for the price conscious segment. The reality is that the vast majority of our customer base subscribes to more premium products, where we feel great about our market position relative to fiber, which is our true long term competitor.

Jason: We are investing in additional network capacity multi gig speeds and in home Wi Fi technology to capitalize on the internet consumption trends we are seeing.

Jason: One of the most important metrics. We monitor is the magnitude of data traffic flowing across our network and again, we saw double digit year over year growth this quarter with broadband only households, consuming over 700 gigabytes of data each month.

Michael J. Cavanagh: Again, we saw double-digit year-over-year growth this quarter, with broadband-only households consuming over 700 gigabytes of data each month. And our customers continue to demand faster speeds, with around 70% of our residential subscribers receiving speeds of 500 megabits per second or higher, and one-third getting a gigabit or more.

Jason: And our customers continue to take faster speeds with around 70% of our residential subscribers receiving speeds of 500, megabits per second or higher and one third getting a gigabit or more.

Michael J. Cavanagh: These positive consumer trends play to our strengths and will only accelerate with the shift of live sports to streaming, which, together with Entertainment on Streaming, accounts for nearly 70% of our network traffic today. My final thought on broadband is the importance of bundling with mobile. With 90% of Xfinity mobile smartphone traffic traveling over our Wi-Fi network, these two products work seamlessly together to benefit our customers from both a product experience and financial value standpoint.

Jason: These positive consumer trends play to our strengths and will only accelerate with the shift of live sports to streaming.

Jason: Which together with entertainment on streaming accounts for nearly 70% of our network traffic today.

Jason: My final thought on broadband is the importance of bundling with mobile with 90% of Xfinity mobile smartphone traffic traveling over our Wi Fi network. These two products work seamlessly together to benefit our customers from both the products experience and financial value standpoint.

Michael J. Cavanagh: We are very pleased with the momentum we saw in wireless this quarter, where our line additions were again above 300,000 and nicely up year over year. Our new converged offers resulted in better overall yield and awareness, as well as higher multi-line attach rates, and we are excited for some of the new mobile offers tied to the Olympics, which will be introduced to the market in just a few days. Now let's turn to parks, where our results were down in both revenue and EBITDA when compared to last year's record performance, with two-thirds of the decline driven by lower attendance at our domestic parks.

We are very pleased with the momentum we saw in wireless this quarter. We're aligned editions were again above 300000 and nicely up year over year.

Jason: Our new converged offers resulted in better overall yield and awareness as well as higher multiline attach rates and we are excited for some of the new mobile offers to tied to the Olympics, which will be introduced to the market in just a few days.

Speaker Change #129: Now, let's turn to parks, where our results were down in both revenue and EBITDA when compared to last year's record performance with two thirds of the decline driven by lower attendance at our domestic parks.

Michael J. Cavanagh: We attribute this to a number of factors. First, there now appears to be a COVID recovery pull forward of a magnitude we hadn't previously appreciated. I think it's important to zoom out and look at how this business has trended over the past few years. Going back to 2022 and 2023, theme parks were clearly the early beneficiaries of substantial rebounds in tourism and travel after the pandemic, resulting in a surge in demand that contributed to us reaching record results for both of those years. More recently, other travel options, including cruises and international tourism, given the strength of the dollar, have experienced their own surge in demand, which has caused visitation rates at our parks to normalize.

Speaker Change #129: We attribute this to a number of factors.

Speaker Change #129: First is what now appears to be a COVID-19 recovery pull forward of a magnitude we hadn't previously appreciated.

Speaker Change #129: I think it's important to zoom out and look at how this business has trended over the past few years.

Speaker Change #129: Going back to 2022, and 2023 parks, where clearly the early beneficiaries of substantial rebounds in tourism and travel after the pandemic, resulting in a surge in demand that contributed to us reaching record results for both of those years.

Speaker Change #129: More recently other travel options, including cruises and international tourism, given the strength of the dollar have experienced their own surge in demand, which caused visitation rates at our parks to normalize.

Michael J. Cavanagh: The second factor affecting attendance at our domestic parks is the timing of our investments in new attractions, where we are light in Florida in advance of next year's opening of Epic and our lapping of Super Nintendo World in Hollywood is creating some headwinds for us as well. While the park's results are below our original expectations for the year, we still view parks as a terrific long-term growth business for us. We couldn't be more excited about the opening of Epic Universe in 2025.

Speaker Change #129: The second factor affecting attendance at our domestic parks is the timing of our investments in new attractions, where we are light in Florida in advance of next year's opening of epic and our lapping of Super Nintendo World in Hollywood is creating some headwinds for us as well.

Speaker Change #129: While the parks results are below our original expectations for the year, we still view parks as a terrific long term growth business for us.

Speaker Change #129: We couldnt be more excited about the opening of epic universe in 2025.

Michael J. Cavanagh: As we've been releasing new details about EPIC's five immersive worlds, the consumer reaction has been tremendous. And recently, we opened an Epic Universe Preview Center in Orlando, and the foot traffic and guest enthusiasm have been off the charts. So we look forward to Epic Universe having a meaningful impact by driving incremental attendance, longer visits, and higher per-cap spending once the park opens in 2025. Finally, let me talk about the NBA. Our expectation is that an 11-year rights deal between ourselves and the NBA will be announced soon. We don't believe that the resolution of matching rights will affect the package that we expect to be awarded.

Speaker Change #129: As we've been releasing new details about epic's five immersive worlds the consumer reaction has been tremendous and recently, we opened an epic universe preview center in Orlando and the foot traffic and guest enthusiasm had been off the charts.

Speaker Change #129: So we look forward to epic universe, having a meaningful impact by driving incremental attendance longer visits and higher per cap spending once the park opens in 2025.

Speaker Change #130: Finally, let me talk about the NBA.

Our expectation is that soon an 11 year rights deal between ourselves and the NBA will be announced.

Speaker Change #130: We don't believe that the resolution of matching rates will affect the package that we expect to be awarded.

Michael J. Cavanagh: This package, which begins with the 2025-2026 season, includes 100 NBA games each regular season across NBC and Peacock, which is more than any other media partner and more regular season games than each existing partner has under the current rights. For playoffs, we will have first and second round games each year exclusively on our national platforms and six NBA conference final series over the course of the term of the deal, which is more playoff games on average each year than any other media partner.

Speaker Change #130: This package, which begins with the 2025 2026th season includes.

Speaker Change #130: 100, NBA games, each regular season across NBC, Peacock, which is more than any other media partner and more regular season games than each existing partner has under the current rights deal.

Speaker Change #130: For playoffs will have first and second round games each year exclusively on our national platforms and six NBA Conference final series over the course of the term of the deal which is more playoff games on average each year than any other media partner.

Michael J. Cavanagh: And exclusively for Peacock, there will be approximately 50 national regular season and postseason games, including national Monday night games and doubleheaders. Additional elements of the NBA package include the annual NBA All-Star Game and All-Star Saturday night each season, the season-opening NBA tip-off doubleheader each season, a special doubleheader on the MLK holiday, and select NBA games and every NBA All-Star game on Telemundo. Beyond the NBA itself, we're excited that our package includes WNBA, where starting in the spring of 2026, we'll have more than 50 WNBA regular season and first round playoff games each season across Peacock, NBC, and USA, and we'll also have games in 7 WNBA Conference Semifinals and 3 WNBA Final Series. For USA Basketball, will have the rights to USA men's and women's games leading up to the Olympics and FIBA World Cup, Sky Sports will air all of NBCUniversal's NBA and WNBA games in its markets.

Speaker Change #130: And exclusively for Peacock will be approximately 50 national regular season, and post season games, including National Monday Night games and Doubleheaders.

<unk> elements of the NBA package include the annual NBA, All Star game, and all Star Saturday night each season.

Speaker Change #131: The season opening NBA tip off double header each season especial double header on MLK holiday and select NBA games and every NBA all star game on Telemundo.

Speaker Change #131: Beyond the NBA itself. We're excited that our package includes WNBA, we're starting in the spring of 2026, we'll have more than 15 WNBA regular season in first round playoff games each season across Peacock NBC in USA.

Speaker Change #131: We will also have games in seven WNBA conference semifinals, and three WNBA final series.

Speaker Change #131: For USA basketball, well have the rights to USA mens and womens games, leading up to the Olympics and FIFA World Cup skies.

Speaker Change #132: Sky Sports will air all of NBC, Universal's, NBA and WNBA games in its markets and finally, Xfinity will be the NBA and WNBA marketing partner in the video category.

Michael J. Cavanagh: And finally, Xfinity will be the NBA and WNBA's marketing partner in the video category. Now, I'd like to take a moment to explain why we're so excited to partner with the NBA. First, it brings in a broad, diverse, and youthful audience that is culturally relevant and further expands NBCUniversal's tremendous reach across broadcast and streaming. This new fan base will also allow us to create new entertainment content that will work beyond the basketball season with exciting opportunities for companion programming and marketing collaborations that tap into the NBA's pop culture appeal.

Speaker Change #133: Now I'd like to take a moment to explain why we're so excited to partner with the NBA first it brings in a broad diverse and youthful audience that is culturally relevant and further expands NBC universal's tremendous reach across broadcast and streaming.

Speaker Change #133: This new fan base will also allow us to create new entertainment content that will work beyond the basketball season with exciting opportunities for companion programming and marketing collaborations that tap into the Nba's pop culture appeal.

Michael J. Cavanagh: Second, the nine-month basketball season completes our year-round calendar for sports, which already includes the NFL, Olympics, Premier League, NASCAR, PGA Tour, Big Ten, and World Cup, and our NBA package will establish much-watched Sunday, Monday, and Tuesday night traditions on NBC and Peacock.

Speaker Change #133: Second the nine months basketball season completes our year round calendar for sports, which already includes the NFL Olympics Premier League NASCAR PGA Tour, Big 10, and World Cup and our NBA package will establish much watch Sunday Monday and Tuesday.

Speaker Change #133: Traditions on NBC in Peacock.

Michael J. Cavanagh: Third, we are uniquely able to drive strong value with the NBA in multiple ways. First, by growing ad sales by selling an NBA ad inventory package with the rest of our marquee programming. Second, by acquiring and monetizing subscribers both on Linear and Peacock, and third, by optimizing NBCUniversal programming investment across sports, entertainment, and news. The NBA's decision to partner with us is a testament to our breadth and reach, our operational excellence in sports and innovation, and our decades of experience delivering world-class content to consumers.

Speaker Change #133: Third we are uniquely able to drive strong value with the NDA in multiple ways.

Speaker Change #133: First by growing AD sales by selling an NBA AD inventory package with the rest of our marquee programming.

Speaker Change #133: Second by acquiring and monetizing subscribers, both on linear and Peacock and third by optimizing NBC Universal programming investment across sports Entertainment and news.

Speaker Change #133: The NBA is decision to partner with US is a testament to our breadth and reach our operational excellence and sports and innovation and our decades of experience delivering world class content to consumers.

Michael J. Cavanagh: Much like our longstanding relationships with the NFL and the Olympics, we look forward to putting the weight of our entire company behind our partnership with the NBA for decades to come. Before I hand this over to Jason, I want to share one final thought. In just a few short days, we have the honor of kicking off the 2024 Olympic Games in Paris. This will be NBCUniversal's 18th Olympic Games as a U.S. broadcaster, dating back to 1936, when we first covered the historic event on NBC radio.

Speaker Change #133: Much like our long standing relationships with the NFL and the Olympics, we look forward to putting the weight of our entire company behind our partnership with the NBA for decades to come.

Speaker Change #135: Before I hand, it over to Jason I want to share one final thought and just a few short days, we have the honor of kicking off the 2024 Olympic games in Paris.

Jason: This will be NBC, Universal's, 18th Olympic games, as a U S broadcaster dating back to $19 36, when we first covered the historic event on NBC radio.

Michael J. Cavanagh: It is one of the great moments of pride for our company, and I want to thank the 3,000 people working to bring all of the action, excitement, and incredible stories to our viewers across the country. Jason, over to you. Thanks, Mike. And good morning, everybody. I'll start with our consolidated results on slide three. Total revenue decreased 2.7% to $29.7 billion.

Speaker Change #133: It is one of the great moments of pride for our company and I want to thank the 3000 people working to bring all of the action excitement and incredible stories to our viewers across the country Jason over to you.

Jason: Thanks, Mike and good morning, everybody I'll start with our consolidated results on slide three.

Jason: Total revenue decreased two 7% to $29 7 billion within these results our six major growth drivers, including residential broadband wireless business services connectivity theme parks streaming and premium content at our studios generated over $16 billion in revenue well over half of our toe.

Jason S. Armstrong: Within these results, our six major growth drivers, including residential broadband, wireless, business services connectivity, theme parks, streaming, and premium content at our studios, generated over $16 billion in revenue, well over half of our total company revenue, and grew at a mid-single-digit rate over the past 12 months. Keep in mind that in the second quarter of last year, we had one of our most successful quarterly theatrical results in our history, which included two of 2023's top five grossing films at the worldwide box office, the Super Mario Brothers movie and Fast X, and as such, this quarter is difficult to compare. If we exclude our studio results, total revenue would have been consistent with the prior year. Total EBITDA was consistent at $10.2 billion, and free cash flow was $1.3 billion.

Speaker Change #134: It'll company revenue and grew at a mid single digit rate over the past 12 months keep in mind that in the second quarter of last year. We had one of our most successful quarterly theatrical results in our history, which included two of 2020 Three's top five grossing films at the worldwide box office of Super Mario Brothers movie and fast X and as such.

Speaker Change #134: <unk> created a difficult comparison this quarter.

Speaker Change #134: We exclude our studio results total revenue would have been consistent with the prior year.

Speaker Change #134: Total EBITDA was consistent at $10 2 billion and free cash flow was $1 3 billion free cash flow was impacted this quarter by higher than usual cash taxes, which were up $2 billion over last year's level and were impacted by a tax payment associated with our Hulu stake and other tax related matters.

Jason S. Armstrong: Free cash flow was impacted this quarter by higher-than-usual cash taxes, which were up $2 billion over last year's level, and were impacted by a tax payment associated with our HULU stake and other tax-related matters. As you'll recall, we received a minimum floor payment for Hulu at the end of last year. During the second quarter, we returned $3.4 billion of capital to shareholders, including $2.2 billion in share rate purchases. And over the last 12 months, we have reduced our share count by over 6%, contributing to our adjusted EPS growth of 7%.

Speaker Change #134: As Youll recall, we received a minimum floor payment for Hulu at the end of last year.

Speaker Change #134: During the second quarter, we returned $3 4 billion of capital to shareholders, including $2 2 billion in share repurchases and over the last 12 months, we have reduced our share count by over 6% contributing to our adjusted EPS growth of 7%.

Jason S. Armstrong: Now let's go through our business results, starting on slide four, with connectivity and platform. As usual, I will refer to our year-over-year growth on a constant currency basis. Revenue for total connectivity and platforms was consistent at $20.2 billion, as strong growth in our connectivity businesses was offset by declines in video and voice revenue. Residential connectivity revenue grew 6%, comprised of 3% growth in domestic broadband, 17% growth in domestic wireless, and 14% growth in international connectivity.

Speaker Change #136: Now, let's go through our business results starting on slide four with connectivity and platforms as usual I will refer to are year over year growth on a constant currency basis.

Jason S. Armstrong: Business services connectivity revenue also grew 6%. In domestic broadband, our revenue growth was again driven by strong ARPU growth, which increased 3.6% this quarter, well within our historical range as our team continues to effectively balance rate and volume through customer segmentation. The environment for broadband subscribers remains intensely competitive, which when combined with traditional negative seasonality in the second quarter led to 120,000 subscriber losses. Related to this, I would like to spend a minute on ACP. It has been well documented that the government ended all funding for the ACP program in June.

Speaker Change #134: Revenue for total connectivity and platforms was consistent at $20 2 billion as strong growth in our connectivity businesses was offset by declines in video and voice revenue residential connectivity revenue grew 6% comprised of 3% growth in domestic broadband 17% growth in domestic wireless and <unk>.

Speaker Change #134: 10% growth in international connectivity.

Speaker Change #134: Business services connectivity revenue also grew 6%.

Speaker Change #134: In domestic broadband our revenue growth was again driven by strong ARPA growth, which increased three 6% this quarter well within our historical range as our team continues to effectively balance rate and volume through customer segmentation.

Speaker Change #134: The environment for broadband subscribers remains intensely competitive, which when combined with traditional negative seasonality in the second quarter led to 120000 subscriber losses.

Speaker Change #134: Related to this I would like to spend a minute on ACP.

Speaker Change #134: It has been well documented that the government ended all funding for the ACP program in June consistent with our approach to normal promotional roll offs, we were proactive and prepare for this action early in the quarter communicating with our ACP customer base and migrating many of these customers to different products and price levels.

Jason S. Armstrong: Consistent with our approach to normal promotional roll-offs, we were proactive and prepared for this action early in the quarter, communicating with our ACP customer base and migrating many of these customers to different products and price levels. While this had a bit of an impact on ARPU in the quarter, we still feel very comfortable that we will remain well within our historical 3 to 4 percent ARPU growth range for the remainder of the year. In terms of subscribers, we saw minimal impact from the end of ACP this quarter.

Speaker Change #134: While this had a bit of an impact on <unk> in the quarter, we still feel very comfortable that we will remain well within our historical 3% to 4% <unk> growth range for the remainder of the year.

Speaker Change #137: In terms of subscribers, we saw minimal impact from the end of ACP This quarter.

Jason S. Armstrong: Looking ahead, we expect the bulk of our ACP-related subscriber activity to happen in the third quarter, including losses associated with non-pay churn. However, it's too early to assess the full impact. We are encouraged by the response we have seen from these customers to date. Outside of ACP, we are seeing the same level of competitive intensity and expect an offset from seasonal tailwinds as the third quarter is typically a seasonally stronger quarter compared to the second.

Speaker Change #137: Looking ahead, we expect the bulk of our ACP related subscriber activity to happen in the third quarter, including losses associated with non pay churn.

Speaker Change #137: While it's too early to assess the full impact we are encouraged with the response, we see from these customers to date.

Speaker Change #137: Outside of ACP, we are seeing the same level of competitive intensity and expect an offset from seasonal tailwind as the third quarter is typically a seasonally stronger quarter compared to the second.

Jason S. Armstrong: Turning to domestic wireless, revenue growth was mainly driven by service revenue, with some modest growth in equipment revenue this quarter as well. Customer lines increased 20% year-over-year, reaching $7.2 million in total, including 322,000 line additions this quarter.

Speaker Change #137: Turning to domestic wireless revenue growth was mainly driven by service revenue with some modest growth in equipment revenue this quarter as well customer lines increased 20% year over year, reaching $7 2 million in total, including 322000 line additions this quarter.

Jason S. Armstrong: The acceleration in line additions compared to the prior several quarters was driven by some early success with new pricing plans launched in April targeted at multi-line customers, as well as continued traction with our buy one, get one line offer. And you will see us continue to test new ways to capitalize on the significant opportunities we see ahead for us in wireless in terms of both increasing the penetration of our domestic residential broadband customer base, which currently sits at 12%, as well as selling additional lines per account.

Speaker Change #137: The acceleration in line additions compared to the prior several quarters was driven by some early success with new pricing plans launched in April targeted multiline customers as well as continued traction with our buy one get one line offer and you will see us continue to test new ways to capitalize on the significant opportunities. We see ahead for us in <unk>.

Speaker Change #137: Wireless in terms of both increasing the penetration of our domestic residential broadband customer base, which currently sits at 12% as well as selling additional lines per account.

Jason S. Armstrong: Wireless continues to be a key growth area for us, and one in which we are striking the right balance in delivering exceptional value to our customers, bundling to enhance our opportunities in broadband, and continuing to drive profitability higher. International connectivity revenue was mainly driven by broadband, which accounts for over two-thirds of our international revenue, and grew at a mid-teens rate, reflecting strong ARPA-V. The remainder is wireless, which grew due to both additional lines and ARPU growth, but at a lower rate due to the variability in hand.

Speaker Change #137: Wireless continues to be a key growth area for us and one in which we are striking the right balance and delivering exceptional value to our customers bundling to enhance our opportunities in broadband and continuing to drive profitability higher.

Speaker Change #137: International connectivity revenue was mainly driven by broadband which accounts for over two thirds of our international revenue and grew at a mid teens rate, reflecting strong ARPA growth.

Speaker Change #137: The remainder is wireless which grew due to both additional lines and ARPA growth, but at a lower rate due to the variability in handset sales.

Jason S. Armstrong: Business services connectivity revenue growth of 6% reflects steady growth in small business with even faster growth in mid-market and enterprise. While the S&B market remains competitive, we are competing aggressively by delivering best-in-class products and services and growing revenue through ARPU growth, driven by higher adoption of additional products that expand our relationship with our S&B customers, like mobile, SecurityEdge, ConnectionPro, and Wi-Fi Pro, as well as through targeted rate At the mid-market and enterprise level, our revenue growth is primarily fueled by the increase in our customers, driven by the investments we have made in this space to build sales and fulfillment as well as expand our capabilities and managed services, wide area networking, and cyber security. Finally, video and other revenue declined in the quarter.

Speaker Change #137: Business services connectivity revenue growth of 6% reflects steady growth in small business with even faster growth in mid market and enterprise, while the SMB market remains competitive we are competing aggressively by delivering best in class products and services and growing revenue through <unk> growth driven by higher adoption of addition.

Speaker Change #137: Products that expand our relationship with our SMB customers like mobile security edge connection pro and Wi Fi pro as well as through targeted rate opportunities.

Speaker Change #137: At the mid market and enterprise level, our revenue growth is primarily fueled by the increase in our customers driven by the investments. We have made in this space to build sales and fulfillment as well as expanding our capabilities in managed services wide area networking and cyber security.

Speaker Change #138: Finally video and other revenue declined in the quarter. The high single digit decline in our video revenue is a function of continued customer losses, coupled with slower domestic ARPA growth versus last year and the lower other revenue mainly reflects the continued customer losses in wireline voice.

Jason S. Armstrong: The high single-digit decline in our video revenue is a function of continued customer losses coupled with slower domestic ARPU growth versus last year. And the lower other revenue mainly reflects continued customer losses in wireline voice. Connectivity and Platforms total EBITDA increased 1.6%, with margin up 90%, reflecting a decline in overall expenses driven by the continued mix shift to our higher-margin connectivity business, coupled with ongoing expense management. As I have previously mentioned in prior quarters, and think it is worth noting here, the only expense line item that had a meaningful increase over last year was direct product costs, which are success-based and tied to growth in our connectivity business.

Speaker Change #138: Connectivity and platforms total EBITDA increased one 6% with margin up 90 basis points, reflecting a decline in overall expenses driven by the continued mix shift to our higher margin connectivity businesses, coupled with ongoing expense management.

Speaker Change #138: As I have previously mentioned in prior quarters and think is worth noting here is that the only expense line item that had a meaningful increase over last year with direct product costs, which are success based and tied to growth in our connectivity businesses.

Jason S. Armstrong: Breaking out our connectivity and platforms EBITDA results further, residentially, the increase was 1.1%, with margins improving 100 basis points to 39.9%. Margin Business Services EBITDA growth rebounded nicely this quarter, returning to a mid-single-digit rate, while margin declined 70 basis points to 57 percent, reflecting the investments in sales and fulfillment we are making to scale in the mid-market and enterprise sectors. Now, let's turn to content and experiences on slide five. Revenue decreased 7.5% to $10.1 billion, and EBITDA decreased 11% to $1.9 billion. I'll detail these results further, starting with theme park. Revenue decreased 11% and EBITDA declined 24% in the quarter compared to last year's record level for the second quarter.

Speaker Change #138: Breaking out our connectivity and platforms EBITDA results further.

Speaker Change #138: Residential EBITDA increased one 1% with margins improving 100 basis points to 39, 9%.

Speaker Change #138: And business services EBITDA growth rebounded nicely this quarter returning to a mid single digit rate, while margin declined 70 basis points to 57%, reflecting the investments in sales and fulfillment, we are making to scale in the midmarket and enterprise space.

Jason S. Armstrong: As Mike highlighted, two-thirds of the decline was driven by our domestic parks due to lower attendance compared to last year, largely reflecting two factors: normalization and demand post-COVID combined with the timing of our domestic attractions. This is the first full quarter comparison to the highly successful opening of Super Nintendo World in Hollywood early last year, which drove that park's record results in the second quarter of last year. And we haven't launched a major new attraction in Orlando since Velocicoaster in 2021 in anticipation of Epic Universe, which we originally planned to open this year.

Speaker Change #138: Now, let's turn to content and experiences on slide five.

Speaker Change #138: Revenue decreased seven 5% to $10 1 billion and EBITDA decreased 11% to $1 9 billion.

Speaker Change #139: I'll detail. These results further starting with theme parks revenue decreased 11% and EBITDA declined 24% in the quarter compared to last year's record level for our second quarter.

Speaker Change #139: As Mike highlighted two thirds of the decline was driven by our domestic parks due to lower attendance compared to last year, largely reflecting two factors normalization in demand post COVID-19 combined with the timing of our domestic attractions.

Speaker Change #139: This is the first full quarter comparison to the highly successful opening of Super Nintendo World in Hollywood early last year, which drove that parks record results in the second quarter of last year, and we haven't launched a major new attraction in Orlando since Valasek coaster in 2021 in anticipation of epic universe, which we originally.

Speaker Change #139: We planned to open this year on the international side underlying growth at our park in Osaka continues partially offset by foreign currency as well as some softness at universal Beijing due to the local macroeconomic environment.

Jason S. Armstrong: On the international side, underlying growth at our park in Osaka continues, partially offset by foreign currency, as well as some softness at Universal Beijing due to the local macroeconomic environment. To reiterate, we couldn't be more bullish about the long-term trajectory of PARC. In addition to Epic Universe, we have a fantastic slate of new attractions and experiences on the horizon. Donkey Kong Country in Osaka, and a Fast and Furious roller coaster in Hollywood, as well as Universal Horror Unleashed in Las Vegas and our Universal Kids Resort coming to Texas.

Speaker Change #139: To reiterate we couldnt be more bullish about the long term trajectory of parks.

Speaker Change #139: In addition to epic Universe, we had a fantastic slate of new attractions and experiences on the horizon Donkey Kong country in Osaka, and a fast and furious rollercoaster in Hollywood as well as the Universal horror unleashed in Las Vegas, and our Universal Kids resort coming to Texas.

Jason S. Armstrong: Now let's turn to media, where revenue increased 2% and EBITDA was up 9%, driven by PQ. Peacock revenue grew to 28%, with 9% growth in advertising and 61% growth in distribution, driven by a 38% year-over-year increase in our paid subscriber base to 33 million. On a sequential basis, we held subscribers fairly steady. As we noted during our last earnings call, our focus in the second quarter was on subscriber retention due to the lack of new tentpole content in the quarter. This timing and content also contributed to some relief in our expenses, which helped drive a year-over-year Peacock EBITDA improvement of $300 million.

Speaker Change #139: Now, let's turn to media, where revenue increased 2% and EBITDA was up 9% driven by Peacock.

Speaker Change #140: <unk> revenue grew 28% with 9% growth in advertising and 61% growth in distribution driven by the 38% year over year increase in our paid subscriber base to $33 million on a sequential basis, we held subscribers fairly steady as.

Speaker Change #140: As we noted during our last earnings call our focus in the second quarter was on subscriber retention due to the lack of new tentpole content in the quarter. This timing and content also contributed to some relief in our expenses, which helped drive year over year Peacock EBITDA improvement of $300 million. We are pleased with the progress we're making.

Jason S. Armstrong: We are pleased with the progress we are making, with media EBITDA for the first half of the year up nearly 3% as the improvement at Peacock outweighed the pressure at our TV network. As we look to the second half of the year, we expect continued, modest growth in overall media EBITDA, but with some variation in the degree of year-over-year improvement between the quarters, driven by the timing of sports, entertainment launches, and marketing.

Speaker Change #139: With media EBITDA for the first half of the year up nearly 3% as the improvement at Peacock outweighed the pressure at our television networks.

Speaker Change #139: As we look to the second half of the year. We expect continued modest growth in overall media EBITDA, but with some variation in the degree of year over year improvement between the quarters driven by the timing of sports entertainment launches and marketing.

Jason S. Armstrong: Beginning in the third quarter, we are loaded with incremental content, including the Olympics, Sunday Night Football, which will have an additional game fall into the third quarter, as well as Peacock's exclusive NFL game from Brazil, and the return of Big Ten. Given the timing of this content, EBITDA growth will be skewed to the fourth quarter. At studios, revenue decreased 27%, and EBITDA decreased 51%, reflecting both the timing of our film slate and a tough comparison relative to last year's second quarter, which included the tremendously successful Super Mario Bros., as well as FASTA.

Jason S. Armstrong: We have said our film slate is weighted to the back half of the year, which we believe will drive better year-over-year performance. And we're off to a strong start. Despicable Me 4 had a terrific opening weekend earlier this month, making the Despicable Me series of movies the first animated franchise in history to cross the $5 billion mark.

Jason S. Armstrong: And Twisters is off to a strong start, landing at number one at the box office this past weekend. And we're excited about our upcoming titles, including Wild Robot in September and Wicked in November. I'll wrap up with free cash flow and capital allocation on slide 6. As I mentioned earlier, we generated $1.3 billion in free cash flow this quarter, which included a $2 billion increase in cash taxes over last year's level. Total capital spending declined 10% compared to last year, with the $3.4 billion in spending reflecting the significant investments we continue to make to support our growth drivers, such as 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 opening in Turning to return of capital, for the quarter, we returned a total of $3.4 billion to shareholders.

Jason S. Armstrong: This includes share repurchases of $2.2 billion and dividend payments of $1.2 billion. Notably, since we restarted our buyback program just three years ago, we have reduced our share count by 16% and returned just under $50 billion to shareholders through a combination of buybacks and dividends. Prudently balancing the investments we've made in the business around our six core growth drivers, protecting a strong balance sheet, and providing strong capital returns to shareholders. Now, I'll turn it over to Brian for some closing remarks. Thanks.

Brian L. Roberts: And just to tie everything together, what Mike and Jason have just said, and as our results continue to show, I really believe we are dealing with the competitive landscape shifts exceptionally well. And that's because we have a great team across the company that knows how to execute and innovate. We have the scale, balance sheet, and relevancy to compete with anyone. So, if you think about what we're doing to position ourselves for growth, we've expanded our broadband network by 1.2 million new homes passed in the last 12 months, the most in the company's history, and we plan to continue to do that.

Brian L. Roberts: We're upbeat about the long term in parks, despite this quarter, and are about to finish building the biggest, most technologically advanced theme park to hit the U.S. market in decades with Epic Universe next year. And as you've seen recently, instead of engaging in a process to buy content companies, we have focused primarily on organic opportunities like the NBA, one of the most coveted sports franchises across the globe, which will help drive growth for us well into the future.

Brian L. Roberts: With that, let's hand it over to Marci to take your question. Thanks, Brian. Operator, we are ready to open the line for questions, please. Thank you. We'll now begin the question and answer session. If you have a question, please press star and the number one on your touchtone phone. If you wish to be removed from the queue, please press star and then number 2. If you are using a speakerphone, you may need to pick up your handset first before pressing the number.

Operator: Once again, if there are any questions, please press star, then the number one on your touchtone phone. Our first question today is coming from Ben Swinburne from Morgan Stanley. Your line is not live. Thank you. Good morning.

Benjamin Daniel Swinburne: And Mike, thanks for all the detail on the NBA contract. I appreciate that. I want to ask about parks and broadband.

Benjamin Daniel Swinburne: Maybe, Jason, on broadband, you made some comments about ACP and how Dave and the team are managing. It seems like it's going well. It seemed like you were implying third quarter losses might be down from Q2.

Benjamin Daniel Swinburne: I don't want to put words in your mouth, but you talked about an offset around seasonality. I just wondered if maybe you could revisit that and a little bit about how you guys are managing it from a product and marketing point of view in the third quarter. And presumably, that's the end. We can move on beyond 3Q. We can put the ACP behind us. So, I wanted to ask about that. You know, in parks. Thank you for all the color.

Benjamin Daniel Swinburne: When you guys look at your pacing data, you know, which I imagine you've got months ahead of you that you can see, is there any, do you see any turn, or should we be thinking about year-on-year pressure on this segment, you know, moving at least through the end of the year into next year as we get ready for EPIC? Any more color on sort of what the outlook looks like would be appreciated. Thanks.

David N. Watson: Hey, Ben, this is Dave. I'm going to jump in a little bit on the ACP part first. So, you know, on, yeah, I think it's important to just cover a little bit of context. And then we'll get to the outlook and view for Q3. You know, most of the enrolled ACP customers, as we said before, have been with us, and they're on a post-paid basis. So I think that's an important thing to remember.

David N. Watson: And our strategy has been consistent. We've been looking to help ACP customers stay connected through a variety of options, you know, starting with Internet Essential. And, you know, since 2011, we've connected millions in the largest, most comprehensive private sector Internet adoption program in the country. The good news is that our ACP customers are eligible to switch to our Internet Essentials tiers that we have; we have a couple. In addition, you know, we have Xenity Mobile, and we have good offers through this transition to help them save money on their monthly bills. The Internet Essential customer, the plus tier, customers could take a free line of Xfinity Mobile for a year, and ACP customers who add Xfinity Mobile can get an additional free unlimited line for a year.

David N. Watson: So, and then we just started with the internet, now mobile, and so nothing material on that, but I think it puts us in a good position as we complete the transition. We've spent, as Jason said, a lot of time thinking about this, been very proactive, and prepared for this, and in many ways, it's similar to the promotional role activity that we've managed for decades. So we're used to that.

David N. Watson: On the, you know, from a subscriber viewpoint, also, as Jason said, we saw a minimal impact in ACP and Q2. Looking forward, we expect the bulk of the ACP subscriber-related activity to happen in the third quarter, including losses associated with non-paid turns, very focused on retention. It's early, but the biggest impact I think we're going to see will be on the non-pay side. And as we're just getting into the beginning of the non-pay cycles, encouragingly, we're not seeing much voluntary churn in this group.

David N. Watson: So our goal is to get through the ACP impact as quickly as possible. Right now, we're planning to take a reserve on incremental non-pay activity in the third quarter. But again, it is too early to quantify, and we just won't know until we're further through the cycle.

David N. Watson: So we have a normal, you know, disconnect process that we've managed for a long period of time. And again, this is the, you know, post-pay universe that we have managed through. So that is our view. I think it will be primarily within Q3, but encouraged by at least the voluntary churn aspect. Yeah, I think Dave said it perfectly.

Jason S. Armstrong: As you think about the third quarter, Ben, I think, you know, unpacking it, and similar to what we saw in the second quarter, the competitive environment remains intense, but it's stable; it's sort of no worse, no better than we've seen over the past couple of quarters, so I think that's the starting point. Second, as we pointed out, it's a quarter where we do get seasonal tailwinds; the same things that were headwinds in the second quarter largely become tailwinds in the third quarter, and then there's ACP that works against that, so we will see an impact.

Jason S. Armstrong: As Dave said, the intention is to be largely through the impact by the end of the third quarter between actions we've seen and then a reserve we will take, and so that's the thing we have to make sure we're executing very well against, but as Dave said, the early trends on that, whether it's voluntary turn or trends we've seen so far in non-pay and building non-pay and reserves around that are encouraging. Ben, it's Mike on parks.

Michael J. Cavanagh: So to, you know, hit on that again and appreciate the question. I think we covered a lot in the earlier remarks, but I'll start where Brian last finished, which is that we couldn't be more excited about and confident in the long-term trajectory of the parks business, particularly as we look ahead to next year with Epic Universe, which is truly looking truly unbelievable. And then other attractions coming, Hollywood, Hollywood's going to get a coaster, and Donkey Kong Country into Osaka in the latter part of this year, timing TBD on both of those.

Michael J. Cavanagh: But in the near term, I think that the domestic attendance challenge that was what drove two-thirds of the poor comparison, the factors causing that, which is really the COVID pull forward that we talked about, and the timing of attractions, particularly in Hollywood, Lapping, Super Nintendo, and in Florida, the fact that we originally planned to have Epic open this year, but COVID pushed it back, and so we have a lull in the So as a result of that, I think the factors, even though we're excited about Hollywood Horror Nights in the second half of the year and a little bit of moving past Lapping, I think the trends that we are experiencing will likely continue till we get to Epic opening up sometime next year. Thank you, guys. Thanks, Ben.

Operator: Certainly. The next question is coming from Craig Moffett from Moffett & Nathans, and your line is now live. Hi. Thank you. Good morning.

Craig Eder Moffett: A little bit more on ACP, if I could. Mike, could you just give us any early insight you've got on the delinquency rate for people that are 30 days or 60 days past due, just so we can sort of get a sense of what non-pays may look like? And then presumably there was some impact, certainly there was in the first quarter, of just lower gross ads in the category because new enrollments were shut off, and somebody moving across the street, for example, would lose it at their old address but not be able to get it at their new one.

Craig Eder Moffett: Do you have any estimate for how much ACP impact there might have been in the gross ad category? And then just one simple housekeeping question: you typically report cable margins on the conference call in the script, but I didn't hear it.

Craig Eder Moffett: Maybe I missed it, but I'm wondering if you could tell us what cable margins were in the quarter. I'll let Dave handle the ACP question, Craig. Hey, Craig, Dave. So in terms of delinquency rates, you know, there's nothing you're watching.

David N. Watson: It's just we have a normal process that we manage through, you know, based on due dates and voices. And it goes, you know, anywhere from two to three months. There's nothing at this point to report on at this stage, but we watch it closely. Other than to go back to what I said, we've been very proactive. And I think we're helped by experience and promotion roles. And the fact that we try to put customers into packages that make sense for them proactively.

David N. Watson: So there's a lot of work that went into that, you know, ahead of time, but nothing at this stage. And we'll give more as we go. In terms of the question, in terms of lower gross advertising impacts on connects, it was not material that we saw in Q2.

David N. Watson: So maybe just a little bit in terms of things that we said, but it wasn't a substantial impact in Q2. And we think the bulk of what we're seeing is really going to be on the non-pay side, which will occur in Q3. Hey, Craig, let me hit the margin question real quick.

Jason S. Armstrong: So yeah, I would say the way we're looking at the business is really across connectivity and platforms. So, looking at it that way, and managing the business that way. But to unpack it, legacy cable margin, if you wanted to look at it that way, the margin was up 110 basis points in the quarter, so really strong operating improvement to 48.4%. Thanks. Could I squeeze in one more thing about what I think is right now about bead and whether we might see more capital investment on the bead side? Yeah, this is Dave.

David N. Watson: You know, Bede, we're looking at it very closely. It is going to be worked out on a state by state basis. We're optimistic, you know, in a lot of cases, but we'll have to look for the guidelines and the specifics, you know, tied to them. Nothing at this point would suggest we're going to be beyond, you know, the capital intensity that we've already given out. I think we're all optimistic.

David N. Watson: We're, you know, one of the points that Brian mentioned, you know, the 1.2 million that we've done in the last 12 months is astounding. And the machine is really going. So we're leaning in, going for it. But, you know, Bede will be on a state by state basis.

Operator: Operator, we are now ready for the next question. The next question is coming from Jessica Rieferlich from Bank of America. Your line is now live. I was hoping that you could walk us through how you do.

Jessica Reif Cohen: Positive Financial, and maybe elaborate a little more on what role Peacock will play in other areas, including general entertainment. And then, as part of Peacock, maybe you could talk about, like, the stream saver, the bundle, Netflix, and Apple TV. [inaudible] The upfront is now done, maybe you can talk a little bit about... Unique selling positions you've had relative to others and what the volume is overall, pricing, et cetera, just what you're seeing overall. Sure. Hey Jessica, it's Mike.

Michael J. Cavanagh: So I think I've essentially covered everything that I wanted to cover and can cover at this stage in the NBA in the prepared remarks. Obviously, when the NBA makes its ultimate announcements, that'll be another moment where we can go deeper. But just to the point generally, we are looking at the NBA, as we all said, as some of the premier content that is culturally relevant, excellent audience, widens out the calendar year for us across Peacock and NBC, and can do a lot with the demographics that follow the NBA around other programming.

Michael J. Cavanagh: So when you think about the business case for it, when you look at the long term and as we are managing the media business, broadcast, and Peacock as one, I think the unique reach that we have and the ability for a sport like the NBA to reach so far with our existing broadcast business and use, as I said earlier, plenty of exclusive games for Peacock to drive excellent acquisition for Peacock. And we've talked about it before using the NBA.

Michael J. Cavanagh: And as we've talked about before, sports has been a great source of acquisition for us in Peacock and a great source of value to the consumer. But what's very interesting to us is how significant the viewership is of sports viewers on Peacock for things other than sports. So when you take a zoom out and think about the total picture of what we're trying to do, which is to bring our excellent TV media assets into the future, I think we view the NBA as an excellent piece in that puzzle, and it will allow us to rebalance programming from other areas. Obviously, we'll fill a few nights on NBC with this content versus other content.

Michael J. Cavanagh: And we'll use this to do acquisition spend in Peacock and lighten up in some other places. But the long-term goal for Peacock is to have a service that is a balance of sports, entertainment, and news. And so our content teams are now very focused on that new audience and what we're going to be able to do to drive entertainment content with the advantage of being linked closely to the NBA and to the audience that follows it. And then on advertising, so second quarter was pretty, you know, only a slight step down from the first quarter, but clearly we had a much heavier load of sports in the first quarter than the second.

Michael J. Cavanagh: And so, you know, adjusting for that, I'd say again that the advertising market remains pretty stable. We feel very well positioned for the second half of the year with the Olympics coming up, starting this Friday, elections, and a great slate of content coming to NBC and Peacock. In terms of the upfront, we're pleased with our results. Total volume for us is going to be basically in line, you know, with last year as is linear price.

Michael J. Cavanagh: We got well over a billion dollars in upfront volume for Peacock again, and nice growth over what we had last year. And so, if you step back, we'd say the overall upfront market was pretty solid. We moved quickly given our, you know, strength of our assets to, you know, secure the volume that we got. So we feel we were a success in this more challenging upfront given the arrival of so many new players, especially in the AVOD and SVOD space. So that's the report on the upfronts, but we're moving forward and feel like the team did quite a good job. Thanks, Jessica.

Operator: Operator, next question, please. Our next question today is coming from John Hodulik from UBS. Your line is now live. Great, thanks.

John Christopher Hodulik: Maybe on the cable side, a little bit better trends in both video and wireless. On the video side, you know, what's driving the improvement there? Do you expect it to continue? And are you seeing any effects of the launch of the Now brand?

John Christopher Hodulik: And then in wireless, you guys talked about some new pricing and promotion, but do you guys think you're benefiting at all from some of the ACP losses on the prepaid side? I don't know if you guys saw yesterday, but Verizon and Apple sort of turned off 400,000 subscribers. I think we'll see something similar with the rest of the wireless companies. But do you think this underlying growth is sustainable? Or do you think that ACP is somehow, you know, boosting the growth at Hey John, Dave? So, in terms of video, as Jason said, our video losses are lower than the ones last year, this tide. We did take a slightly lower rate increase this year than last year.

David N. Watson: And the key for us in video is just positioning video with broadband, and that, you know, video does help in that regard. We've seen positive churn in terms of video, reimagining video around the Now TV product and IP. And that has been steady. It's still early, but it has been helpful. So, video, I think for the right segment, we offer a lot of value, and we continue to, you know, position it, I think, very well with broadband. But, you know, difficult and still in terms of some of the fees and things that we have, but I think an important category for us.

David N. Watson: The acceleration in line ads over Q1, driven by the early success of the new pricing plans, really competitive now in multi-line pricing, launched in April, targeted for a while, now it's scaling, and it's really gotten traction, as well as the buy one, get one line offer to our base. So wireless is such an important part of our overall strategy, and key that it's 12% penetration, we've got a great runway ahead, business mobile is just getting going, and it's a great position for us in terms of convergence, I think we're uniquely positioned in terms of ubiquitous offers across our entire footprint, and mobile will be front and center as we approach the Olympics, and we will have a great offer with broadband, with mobile, being able to tie all this together, so very excited with it.

David N. Watson: The comment, just one other part, in terms of what happened in terms of Verizon's unpacking, the only thing I'll say is, I think it's an important distinction, that our ACP customers are post-paid versus they're prepaid. It's a different group, a different dynamic, and so not really. We're just getting going on our Now products, and so it's very, very early on, excited about Thanks, John.

Operator: Operator, we're ready for the next question. Certainly. The next question is coming from Jonathan Chaplin from Newstreet. Your line is now live.

Jonathan Chaplin: Thanks guys. I guess for Jason, two quick ones on content costs in the connectivity business. They came in quite a bit lower than we expected. And I'm wondering if you can give us a little bit more color on what's driving the trend there and how sustainable it is. And then we're trending a little bit lower than guidance on CAPEX so far this year. I'm wondering if that's just timing-related if it picks up in the back half of the year.

Jonathan Chaplin: And then, Mike, I'm not sure if you've said what you can about the NBA deal. I'm wondering if you can just give us a little bit of context around the timing of costs and revenues, though, when – I recognize it's forward-looking, but when should we expect to see the costs from the new contract start to hit? Thank you. Thanks, Jonathan.

Jason S. Armstrong: Why don't I start with CapEx; Dave will hit content costs, and then Mike will talk about MBA. So, on CapEx, you're right; we've had some variability this year. I would say, you know, relative to the initial guidance we gave both on the content and experiences side, where we talked about, you know, this is the final significant year of EPIC spending, and then we get relief beyond this, and then on the connectivity and platform side, which I think is probably where more your question was, we gave a capital intensity envelope as we entered the year.

Jason S. Armstrong: We also said, you know, we intend to do 1.1 million plus in terms of homes passed. We're obviously trending a little bit above that at this point, but we still feel comfortable with the capital intensity envelope that we gave.

Jason S. Armstrong: And so, there are some timing aspects around equipment purchases within the year, I would say, still feel comfortable with the existing capital intensity envelope. And within that, doing more and more homes passed at a really efficient rate, you know, I think that's a testament to how the team's executing. Hey John, Jonathan, Dave.

David N. Watson: So just on the content cost side of things, that's also timing related. We, you know, in the sports side, a well-known thing in terms of RSNs, but there are other timing-related things. Every contract with a programming partner is different. Every relationship is different.

David N. Watson: So, you know, I won't go into the specifics, but it is key that we focus on, you know, for us, flexibility, increasing market choice. We segment the marketplace, you know, both video and broadband, and together. And that it is important that we're competitive in every segment. And at the end of the day, we're focusing on value, you know, combining linear streaming considerations on a case-by-case basis. But mostly at this point, it is timing-related. And Jonathan, it's Mike on NBA.

Michael J. Cavanagh: You know, I wish it were sooner, but the contract doesn't start till the 2025-2026 season. So it's the fall of 2025 that we would start to bear the expense of the right side of it. And obviously, that is also when we would begin to see the benefits of subscriber acquisition around the NBA. And this is Brian just wanting to, close out perhaps Mike's opening comments on the NBA, you know, doesn't opportunities like this come along very rarely when there's a... Long-term relationships, Up for Grabs.

Brian L. Roberts: Inside, and we'll have, you know, when it gets all announced, the detail that Mike described, we probably have more content than anybody. And it's all, I think, at a value that we'll be able to, as one of the other questions asked, support and demonstrate. And one of our real advantages here is the way we're running the media business. And Mike created one group with our existing assets like NBC and our growing assets like Peacock.

Brian L. Roberts: And putting that together is very appealing for the reach, for the consumer access, for the innovation that we'll have in the years ahead, and you'll see some of that innovation during the Olympics. There'll be a lot of content on NBC, but way more content on Peacock, and it allows for the trends that we're seeing in viewing behavior. So it's a very exciting moment, and I think we'll have more to say in the weeks ahead. Thanks, Jonathan.

Operator: Operator, next question, please. Certainly. The next question is coming from Michael Ng from Goldman Sachs. Your line is now live. Hey, good morning.

Michael Ng: Thank you for the question. I just have two: one on business services and one on wireless. First, on business services, I was just wondering if you could talk about some of the key initiatives or things that might be changing at Comcast Business following Ed's appointment as president to more aggressively pursue the mid-market or enterprise. What are you seeing in terms of the competitive side within SMB? Is it just fixed wireless, or is there more to that?

Michael Ng: And then, on wireless, given the strong potential upgrade cycle on the back of AI smartphones and the iPhone 16, I was just wondering if you'd talk about the Xfinity mobile strategy to capitalize on this from a promotional marketing perspective. You know, what levers are you planning to pull this holiday to potentially lean into wireless to help the broadband business and wireless at large? Thanks. Got it. Thank you. This is Dave.

David N. Watson: So, a couple of things. Let me start with business. You know, as you said, it is competitive in the small business category, competitive in every category, but in particular, the small business one. There certainly is some fixed wireless that we've seen.

David N. Watson: I saw it in the Verizon results, you know, a pretty high percentage of fixed wireless customers that are in the small business thing. And we look at that closely. We are intensely focused on our competitive playbooks, and we're going to constantly compete for share, but we're also focused on revenue per relationship. And so, in the small business area, you know, before getting into the mid-market, we're doing a lot of product upgrades, you know, adding value and speed, Wi-Fi, security.

David N. Watson: And so, you know, we've made good progress and revenue focus around small business. And it's such a, you know, huge opportunity for us and still in terms of small business. But Ed has stepped right in.

David N. Watson: It's a terrific team in the business services group that he's working with, and there really is, I think, a unique opportunity. When you look at the overall addressable market of $60 billion, less than 20% is there, and a huge chunk of this will be mid-market and enterprise. And on top of that, we have international opportunities that we're beginning to coordinate and work well with Dane and the team at Sky. So, you know, we really are seeing nice relationship growth in mid-market and enterprise.

David N. Watson: That's the starting point. But in addition to, like, all of our strategies, we're adding more products and attaching new products to these relationships and going beyond just connectivity into a full managed relationship basis. So Ed is driving that.

David N. Watson: And we're in a good competitive position for growth. And I think we have a good ability to increase ARPU across an increasing higher-end base of customers. So on the mobile side of upgrade, you know, it is every single upgrade moment. Pay close attention to that one too.

David N. Watson: And we're optimistic. We're in a good position. We have a great trade-in program for mobile that we've had in place now for a while.

David N. Watson: And then, in addition to that, we go in and out in terms of subsidies on top of that trade-in program, and then when good upgrade moments happen, we are the switching provider. So when people upgrade, we have great core rates, and we have good handset offers, and a good position for it. So being a switching provider, I think we are in a unique position to really take advantage of that. And when you look at things going into, you know, the optimism for Q3, one of the most important programs that we will do, along with the handset upgrade initiative on mobile, will be the Olympics.

David N. Watson: And the Olympics are such a unique opportunity for us to showcase the best broadband, and the best mobile service offering, combining those two things together in such an attractive offer, and on top of that, we have the greatest user interface in the marketplace that helps you find whatever you want. So, really excited about that. Look for that in the next couple of days, but mobile will be front and center along with broadband when that happens. Thanks, Mike.

Operator: Operator, we have time for one last question. Sure. Our final question today is coming from Steven Cahall from Wells Fargo. Your line is now live. Thanks.

Steven Lee Cahall: So with mid splits now reaching over 40% of the footprint, I was just wondering if you have an updated outlook on when you think you'll be at DOCSIS IV for most of your broadband traffic. And maybe within that, you could just update us on where fiber overlap is, but also as you get through this network investment architecture that you laid out earlier this year, when you think about the capital intensity and CNP coming down, and we'll start to see that benefit in growing free cash flow. So timing on that, I think would be really interesting.

Steven Lee Cahall: And then how are you thinking about getting to just break even on Peacock? You talked about Mediibida growing on a total basis in the first half and in the second half too. It seems like if the Peacock losses keep getting better at this pace, you could be close to breaking even this time next year, but I know you've got the NBA coming. So just wondering if we could think about that benchmark quite yet. Thank you. Hey Steven. This is Dave.

David N. Watson: Let me start, and then I'll hand it over on the Peacock side. So we're 42% mid-split right now. We expect to be 50% by year-end. And the DOCSIS 4.0 that follows in multiple markets, you know, so far, it's early. You know specifics in terms of, you know, the final rollout on that. But, you know, it really is tracking very well on top of a lot of new footprint expansions, $1.2 million over the last 12 months, with these upgrade programs moving along very well. And it tracks to where the customers are and our steady focus on the higher end.

David N. Watson: And, you know, one of the things that we see is that we have the most effective and efficient build that's ubiquitous, which is addressing speed, capacity, and coverage. And it helps us because as we're doing this, remember, we're virtualizing huge parts of the network and avoiding future node splits. So it's very efficient in helping us, you know, with 70% of our customers are at 500 megabits or higher, a third are taking a gig. And it's tracking to maybe one of the biggest tailwinds that is out there.

David N. Watson: And that's the fact that our network consumption is still low double digits increasing, and that's not stopping. And so we're putting ourselves in a position with a great upgrade program. And so that, you know, to me, is, you know, I think a great advantage that we do have. In terms of competition, in terms of fiber, you know, we're now, you know, 50% in terms of the overbuilt. We expect by the end of 25, that number will get to 60%, and we'll probably go higher than that.

David N. Watson: We have a long track record of competing against fiber, 20 years at this point. So we do think fiber is, quite frankly, the longer-term competitor, keeping our eye on, competing, you know, fiercely against fixed wireless and every competitor. But, you know, we anticipate where they're building, what they're doing, and keeping track of all of that.

Jason S. Armstrong: So, like our results and encouraged, you know, when you look going into Q3, one of the reasons for optimism is that voluntary, you know, turn that continues to perform very well. And I think it's our superior network combined with better products and extreme focus on competition. Hey, Steven, I would just round that out on the capital intensity question because I think embedded in that was sort of a long-term capital intensity question.

Jason S. Armstrong: If you look at what we're doing now, you know, the path towards mid-splits, which, as Dave mentioned, really good progress there, that kicking off DOCSIS 4.0, and then adding 1.2 million homes passed, which is a record for us in the last 12 months, and doing that all within the existing capital intensity envelope, which is one of, if not the lowest, in the industry. So, very good progress there. As you think about the longer term, a lot of people ask this question in the context of is the next big thing coming in terms of network upgrade.

Jason S. Armstrong: We feel very comfortable between mid-splits and DOCSIS 4.0, that is leading to multi-gigabit symmetrical speeds, that is the network for the future. So, we don't see the next big thing coming. The one area that I'd point out is that we'd love to get more homes passed. You know, we've accelerated the rate from 800,000 in the past couple years up to, you know, currently 1.2 million. We won't gate capital intensity because of that.

Jason S. Armstrong: If those are good returns and things we should be doing, we'd love to do more there. Steven, on Peacock and media EBITDA, I think you heard us right. Anyway, you heard me right. I've been saying since I started this that I don't really look at Peacock stand-alone. I mean, it's an interesting exercise, and I'm happy to share the numbers of what the loss is on Peacock as we're building it. But strategically, not to pursue that path would leave the existing media business on a downward trend.

Michael J. Cavanagh: I think we're thinking about it for multiple years. I'm very confident that what we're doing around Peacock and the media business together, operating together, is going to put us on a path to optimize that business. And as you said, I think this is a year where we see growth in Peacock offsetting the decline in some of our linear businesses, and that's basically a trend I would expect to see carry forward. There's going to be ebbs and flows, as Brian said. Something like the NBA is once in a generation to get an opportunity like that.

Michael J. Cavanagh: So obviously, we'll make some adjustments, and it might pause our trajectory for the year we take it on board, but I think it's part and parcel of the idea that we're bringing the media business to a better future by investing behind Peacock. So thank you, everybody. I think that's it. I stole Marci's line.

Marci Ryvicker: Go ahead. Thanks, Steve. This concludes our second quarter earnings call. Thanks for joining us. Thank you. That does conclude today's 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.