Q2 2025 Comcast Corp Earnings Call

We recorded.

I will now turn the call over to executive Vice President of Investor Relations. Mr. <unk>. Please go ahead Ms <unk>.

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

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

With that I'll turn the call over to Mike.

Good morning, everyone and thanks for joining us.

I hand, it to Jason I want to talk about three things that are particularly significant this quarter related to several of the strategic priorities of the company.

Operator: Good morning, ladies and gentlemen. 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. I will now turn the call over to Executive Vice President, Invest Relations, Ms. Marci Ryvicker. Please go ahead, Ms. Ryvicker.

First is our broadband business, where we continue to rollout our new go to market strategy in a highly competitive environment.

Second is our theme parks, where we successfully opened epic universe in Orlando and one of the largest and most ambitious projects in our history.

Good morning ladies and gentlemen, welcome to Comcast's second quarter earnings conference call. At this time, all participants are going to listen only mode. Please note this conference call is being recorded.

I will now turn the call over to Executive Vice President and best relations Miss Sparky right bigger, please go ahead Miss ryber.

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 two 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.

And third is our media segment, where our extraordinary mix of live events sports and entertainment across NBC and Peacock led to a record breaking upfront as we continue to execute on our strategy of running NBC, Universal's linear and streaming assets as one holistic media business.

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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.

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So let me start with broadband we've.

This conference call may include forward-looking statements subject to certain risks and uncertainties.

We've taken a hard look at what it takes to compete and win and we start with great confidence that our products and network our marketplace leaders that.

In addition, during this call, we will refer to certain non-gaap Financial measures. Please see our 8K and trend

That includes our AI powered entertainment OS.

schedule issued earlier this morning for the reconciliations of these non-gaap Financial measures to Gap.

From the call over to Mike.

Most intelligent Wi Fi network in the country and a mobile service delivering the fastest speeds in our footprint.

Mike Cavanagh: Good morning, everyone, and thanks for joining us. Before I hand it to Jason, I want to talk about three things that are particularly significant this quarter related to several of the strategic priorities of the company. First is our broadband business, where we continue to roll out our new go-to-market strategy in a highly competitive environment. Second is our theme parks, where we successfully opened Epic Universe in Orlando, one of the largest and most ambitious projects in our history. And third is our media segment, where our extraordinary mix of live events, sports, and entertainment across NBC and Peacock led to a record-breaking upfront as we continue to execute on our strategy of running NBC Universal's linear and streaming assets as one holistic media business. So let me start with broadband.

Good morning everyone and thanks for joining us.

We're proud that we've reenergized a culture that drives innovation, one that continues to set our products and services apart.

Before I hand it to Jason, I want to talk about 3, things that are particularly significant this quarter related to several of the Strategic priorities of the company.

Building on that foundation, we took several important steps this quarter to strengthen our position.

First is our Broadband business where we would continue to roll out our new, go to market strategy, and a highly competitive environment.

Our goal for all of the actions we've taken is to build a loyal customer base that churns less and values our services more by one delivering simple predictable and transparent pricing and to making it easier than ever to do business with us.

Second is our theme parks where we have successfully opened epic Universe in Orlando, 1 of the largest and most ambitious projects in our history.

Specifically, we've realigned our pricing strategy around seven main elements.

First we've moved from local offers to a consistent national pricing structure.

And third is our media segment where our extraordinary mix of Live Events sports and entertainment across NBC and peacock led to a record-breaking upfront as we continue to execute on our strategy of running. NBC, Universal's linear and streaming assets as 1 holistic media business.

Second we simplified our broadband offering with four flagship speed tiers.

Mike Cavanagh: We've taken a hard look at what it takes to compete and win, and we start with great confidence that our products and network are marketplace leaders. That includes our AI-powered entertainment OS, the most intelligent Wi-Fi network in the country, and a mobile service delivering the fastest speeds in our footprint. We're proud that we've re-energized a culture that drives innovation, one that continues to set our products and services apart. Building on that foundation, we took several important steps this quarter to strengthen our position. Our goal for all the actions we've taken is to build a loyal customer base that churns less and values our services more by, one, delivering simple, predictable, and transparent pricing, and, two, making it easier than ever to do business with us. Specifically, we've realigned our pricing strategy around seven main elements.

So, let me start with broadband.

Third everything is included.

All packages come with unlimited data and our advanced gateways, which deliver the fastest most reliable Wi Fi experience.

We've taken a hard look at what it takes to compete and win, and we start with great confidence that our products and network are Marketplace leaders.

That includes our AI powered entertainment OS.

Table the connection of hundreds of devices.

Provide low lag internet for gaming and streaming.

The most intelligent Wi-Fi network in the country and a mobile service, delivering the fastest speeds in our footprint.

Feature advanced Wi Fi controls and cyber security protection.

Fourth we've lowered everyday pricing.

we're proud that we've re-energized, a culture that drives Innovation, 1 that continues to set our products and services apart

Fifth we introduced both one year and five year price guarantees without contracts to give customers more choice and certainty.

Building on that Foundation. We took several important steps this quarter to strengthen our position.

Sixth we are including a free Xfinity mobile line for one year for all new and existing customers.

And finally, we introduced our premium unlimited mobile plan, which includes four K ultra HD streaming expanded mobile hotspot usage and device upgrades.

Our goal for all the actions we've taken is to build a loyal, customer base that, churns less and values our services more by 1 delivery, simple predictable, and transparent pricing and 2, making it easier than ever to do business with us.

But in addition to pricing changes, we focused on making it easier to do business with us.

Mike Cavanagh: First, we've moved from local offers to a consistent national pricing structure. Second, we simplified our broadband offering with four flagship speed tiers. Third, everything is included. All packages come with unlimited data and our advanced gateways, which deliver the fastest, most reliable Wi-Fi experience, enable the connection of hundreds of devices, provide low-lag internet for gaming and streaming, and feature advanced Wi-Fi controls and cybersecurity protection. Fourth, we've lowered everyday pricing. Fifth, we introduced both one-year and five-year price guarantees without contracts to give customers more choice and certainty. Sixth, we're including a free Xfinity mobile line for one year for all new and existing customers. And finally, we introduced our premium unlimited mobile plan, which includes 4K Ultra HD streaming, expanded mobile hotspot usage, and device upgrades. But in addition to pricing changes, we focused on making it easier to do business with us.

We are incredibly focused on reducing friction across all of our channels.

First, we've moved from a local office to a consistent national pricing structure.

Dot com phone chat in our App, and making every customer interaction and excellent and personalized experience.

Second, we simplified our Broadband offering with 4 Flagship speed tiers.

Third, everything is included.

For instance, we recently improved our digital by flow by removing five steps, making the purchase process faster and easier, which has already driven more than a 20% improvement in purchase conversion rates.

all packages come with unlimited data and our Advanced gateways, which deliver the fastest most reliable Wi-Fi experience

and enable the connection of hundreds of devices.

We also recently upgraded the operating system that manages our customer interactions to Google's AI platform, which will significantly improve our digital experience and Ralph customers quickly to the support they need providing our teams with full visibility into each customer interaction.

Provide low lag, internet for gaming and streaming and feature Advanced Wi-Fi, controls and cyber security protection.

Forth. We've lowered everyday pricing.

Fifth. We introduced both 1 year and 5 year price guarantees without contracts to give customers more choice and certainty.

Together. These changes we are making in pricing transparency and ease of doing business are starting to drive the results in customer behavior, we are aiming for.

6th we're including a free Xfinity mobile line for 1 year for all new and existing customers.

Customers are responding to the simplicity and power of these changes with roughly half of our eligible new customer connects choosing our five year price guarantee this quarter.

And finally, we introduced our premium unlimited mobile plan, which includes 4K Ultra HD streaming, expanded Mobile Hotspot usage and device upgrades.

We also posted a 20% increase in the percentage of new customers, taking gig plus speeds.

Mike Cavanagh: We are incredibly focused on reducing friction across all of our channels: dot com, phone, chat, and our app, and making every customer interaction an excellent and personalized experience. For instance, we recently improved our digital buy flow by removing five steps, making the purchase process faster and easier, which has already driven more than a 20% improvement in purchase conversion rates. We also recently upgraded the operating system that manages our customer interactions to Google's AI platform, which will significantly improve our digital experience and route customers quickly to the support they need, providing our teams with full visibility into each customer interaction. Together, these changes we are making in pricing transparency and ease of doing business are starting to drive the results and customer behavior we are aiming for.

But in addition to pricing changes we focused on making it easier to do business with us.

Which lifted our overall speed tier mix and helped drive higher connect <unk>.

We are incredibly focused on reducing friction across all of our channels.

And we're also seeing stabilization in voluntary churn and overall connect activity in broadband.

Dot com, phone chat and our app and making every customer interaction and excellent and personalized experience.

Momentum is building in wireless as well.

Our free line offer and solid uptake in our new premium unlimited plans helped drive our best quarter ever with 378000, new lines added, bringing Xfinity mobile to 14% penetration of our residential broadband base and still leaving us with plenty of room to run.

For instance, we recently improved our digital by Flow by removing 5 Steps, making the purchase process faster and easier, which is already driven more than a 20% Improvement in purchase conversion rates.

Before really broadband I want to highlight a recent deal on the Comcast business side that strengthens our go to market approach for that customer base.

We also recently upgraded the operating system that manages our customer interactions to Google's AI platform, which will significantly improve our digital experience and Route customers quickly to the support. They need, providing our teams with full visibility into each customer interaction.

Just last week, we announced our new <unk> agreement with T mobile in partnership with charter.

Together. These changes we are making in pricing transparency and ease of doing business are starting to drive the results and customer behavior. We are aiming for.

Mike Cavanagh: Customers are responding to the simplicity and power of these changes, with roughly half of our eligible new customer connects choosing our five-year price guarantee this quarter. We also posted a 20% increase in the percentage of new customers taking Gig Plus speeds, which lifted our overall speed tier mix and helped drive higher Connect ARPU. And we're also seeing stabilization in voluntary churn and overall Connect activity in broadband. Momentum is building in wireless as well. Our free line offer and solid uptake in our new premium unlimited plans help drive our best quarter ever, with 378,000 new lines added, bringing Xfinity Mobile to 14% penetration of our residential broadband base and still leaving us with plenty of room to run. Before we leave broadband, I want to highlight a recent deal on the Comcast business side that strengthens our go-to-market approach for that customer base.

This new agreement pairs are industry, leading broadband and Wi Fi with T. Mobile's <unk> network to expand our mobile product offered a business customers as a fully integrated solution we.

customers are responding to the Simplicity and power of these changes with roughly half of our eligible, new customer connects, choosing our 5-year, price guarantee this quarter

We are pleased to work with T mobile in this initiative and continue to value our strong partnership with Verizon.

We also posted a 20% increase in the percentage of new customers taking gig plus speeds.

So the net of this is while it's still early days, we like what we're seeing in our broadband business, giving us confidence in the changes we've made and what's still ahead.

Which lifted our overall speed. Tier mix and helped Drive higher connect rpu.

And we're also seeing stabilization and voluntary churn, and overall connect activity and broadband.

We're executing on our connectivity strategy that fully plays to our strengths and broadband Wi Fi and convergence leveraging the largest gig speed broadband and mobile converged footprint in the country that serves both residential and business customer segments and a best in class in home experience through our advanced.

Line offer and solid uptake in our new premium unlimited plans. Help Drive our best quarter ever with 378,000. New lines added

<unk> Wi Fi gateway with our go to market strategy in place and execution, improving we are well positioned to lead in convergence.

Bringing Xfinity mobile to 14% penetration of our residential Broadband base and still leaving us with plenty of room to run.

Turning to parks, we are extremely proud of the successful opening of epic universe in May.

On the Comcast Business side, that strengthens our go-to-market approach for that customer base.

Mike Cavanagh: Just last week, we announced a new MVNO agreement with T-Mobile in partnership with Charter. This new agreement pairs our industry-leading broadband and Wi-Fi with T-Mobile's 5G network to expand our mobile product offer to business customers as a fully integrated solution. We are pleased to work with T-Mobile in this initiative and continue to value our strong partnership with Verizon. So the net of this is, while it's still early days, we like what we are seeing in our broadband business, giving us confidence in the changes we've made and what's still ahead. We're executing on a connectivity strategy that fully plays to our strengths in broadband, Wi-Fi, and convergence, leveraging the largest gig speed broadband and mobile converged footprint in the country that serves both residential and business customer segments, and a best-in-class in-home experience through our advanced Xfinity Wi-Fi gateway.

We're pleased with the early results as epic is already driving higher per cap spending and attendance across the entirety of universal Orlando resort with strong food and merchandise sales and minimal impact on attendance at Universal Studios, Florida and islands of adventure.

This last week, we announced a new MV, no agreement. With T-Mobile in partnership with Charter.

This new agreement pairs our industry-leading broadband and Wi-Fi with T-Mobile's 5G. Network to expand our mobile product offer to business customers as a fully integrated solution.

Epic is the most technologically advanced park, we've ever built and we are getting high praise for the innovative attractions immersive environments, three new onsite hotels, and our strong food and merchandise offering.

We are pleased to work with T-Mobile in this initiative and continue to value our strong partnership with Verizon.

As expected our near term focus is on expanding ride throughput to reduce early attendance constraints.

So, the net of this is, while it's still early days, we like what we are seeing in our Broadband business, giving us confidence in the changes we've made and what's still ahead.

Epic is trending in line with our expectations and well on its way to transforming universal Orlando into a true weeklong destination.

Beyond Orlando, we're executing against a strong pipeline of new opportunities to serve more guests universal horror unleashed opens in Las Vegas next month, and we are developing a second year round her experience in Chicago tapping into one of the country's top tourist markets.

We're executing on a connectivity strategy that fully plays to our strengths and Broadband Wi-Fi, and convergence leveraging. The largest gig speed broadband and mobile. Converged footprint in the country that serves both residential and business customer segments.

Mike Cavanagh: With our go-to-market strategy in place and execution improving, we're well positioned to lead in convergence. Turning to parks, we are extremely proud of the successful opening of Epic Universe in May. We're pleased with the early results as Epic is already driving higher per-cap spending and attendance across the entirety of Universal Orlando Resort, with strong food and merchandise sales and minimal impact on attendance at Universal Studios Florida and Islands of Adventure. Epic is the most technologically advanced park we've ever built, and we are getting high praise for the innovative attractions, immersive environments, three new on-site hotels, and our strong food and merchandise offering. As expected, our near-term focus is on expanding ride throughput to reduce early attendance constraints. Epic is trending in line with our expectations and well on its way to transforming Universal Orlando into a true week-long destination.

And a best-in-class in-home experience through our Advanced Xfinity Wi-Fi. Gateway.

With our go to market strategy in place and execution improving we're. Well positioned to lead in convergence.

In addition in Texas are Universal Kids resort is moving towards a 2026 opening and we're continuing the planning process for our new park outside of London slated to open in 2031.

Turning to Parks. We are extremely proud of the successful opening of Epic Universe in May.

These projects reflect our long term strategy to expand reach enter new markets and broaden the appeal of our parks portfolio.

Turning to media are world class combination of entertainment content and live sports and events continues to drive results across NBC in Peacock.

We just closed our most successful upfront ever with record total sales and our largest sports commitments to date.

Epic is the most technologically advanced Park we've ever built and we are getting high, praise for the Innovative attractions, immersive environments 3, new on-site hotels, and our strong food, and merchandise offering.

As expected, our near-term focus is on expanding ride throughput to reduce early attendance constraints.

<unk> was a standout up more than 20% year over year and representing over a third of NBC Universal's total volume.

Our upfront results reflect our unparalleled 2026 lineup of Tentpole events, starting with the Milan Cortina Olympics Super Bowl <unk> and the NBA All star game in February.

Thick is trending in line with our expectations and Well on its way to transforming Universal Orlando into a true weak line. Destination

Mike Cavanagh: Beyond Orlando, we're executing against a strong pipeline of new opportunities to serve more guests. Universal Horror Unleashed opens in Las Vegas next month, and we're developing a second year-round horror experience in Chicago, tapping into one of the country's top tourist markets. In addition, in Texas, our Universal Kids Resort is moving towards a 2026 opening, and we're continuing the planning process for our new park outside of London, slated to open in 2031. These projects reflect our long-term strategy to expand reach, enter new markets, and broaden the appeal of our park's portfolio. Turning to media, our world-class combination of entertainment content and live sports and events continues to drive results across NBC and Peacock. We just closed our most successful upfront ever, with record total sales and our largest sports commitments to date.

Beyond Orlando, we're executing against a strong pipeline of new opportunities to serve more guests.

FIFA World Cup on Telemundo in June and the elections and Bravo Con in November along with our robust slate of entertainment and sports content throughout the year.

Universal horror Unleashed opens in Las Vegas next month. And we're developing a second year round horror experience in Chicago tapping into 1 of the country's top tourist markets.

We also expect to build on the momentum we are seeing in our entertainment content.

In addition, in Texas, our Universal kids Resort is moving towards a 2026 opening.

Love Island, USA, which appears exclusively on Peacock was the top streaming reality series for the entirety of its season seven run.

And we're continuing the planning process for our new park outside of London, slated to open in 2031.

It attracted a significant number of first time subscribers and importantly, two thirds of those new paying customers went on to engage with additional content driving a lift in overall consumption across the platform.

These projects, reflect our long-term strategy to expand reach, enter, new markets and broaden the appeal of our Parks portfolio.

Turning to Media our world-class combination of entertainment, content and live sports and events continues to drive results, NBC and peacock.

<unk> continues to differentiate itself with one of the most robust live sports offerings of any streamer and that position will only strengthen with the addition of NBA coverage. This fall.

Mike Cavanagh: Peacock was a standout of more than 20% year over year and representing over a third of NBC Universal's total volume. Our upfront results reflect our unparalleled 2026 lineup of tentpole events, starting with the Milan Cortina Olympics, Super Bowl 60, and the NBA All-Star Game in February, the FIFA World Cup on Telemundo in June, and the elections and BravoCon in November, along with a robust slate of entertainment and sports content throughout the year. We also expect to build on the momentum we are seeing in our entertainment content. Love Island USA, which appeared exclusively on Peacock, was the top streaming reality series for the entirety of its season seven run. It attracted a significant number of first-time subscribers, and importantly, two-thirds of those new paying customers went on to engage with additional content, driving a lift in overall consumption across the platform.

We just closed our most successful upfront, ever with record total sales, and our largest Sports commitments to date.

In fact in 2026 Peacock will stream more live sports hours than any other streaming entertainment service.

Peacock was a standout of more than 20% year-over-year and representing over a third of NBC Universal's total volume.

Add to that <unk> films from our top performing studios original series.

Next day, NBC and Bravo content news and a full entertainment library and Peacock continues to deliver significant value.

Our upfront results, reflect our unparalleled 2026 lineup of tentpole events. Starting with the Milan Cortina Olympics, Super Bowl, 60, and the NBA All-Star Game in February.

To better reflect this premium content, we recently announced a $3 price increase rolling out in July for new subscribers and in late August for existing ones. The.

The FIFA World Cup on Telemo in June, along with the elections and BravoCon in November, alongside a robust slate of entertainment and sports content throughout the year.

We also expect to build on the momentum. We are seeing in our entertainment content.

Love Island.

The impact of this price increase combined with the strong upfront results I just discussed helped position us in the fourth quarter as we launched the NBA and take on higher sports programming expenses, particularly in the first year of the NBA contract when we absorbed the full impact of adding these new rights.

USA.

Appeared exclusively on peacock.

Reality series for the entirety of its season 7 run.

So to wrap up across the company, we're executing with focus simplifying how we operate and leaning into areas, where we have real competitive advantages and we're doing it while maintaining a strong balance sheet and returning meaningful capital to shareholders.

It attracted a significant number of first-time subscribers and importantly, 2/3. Of those new paying customers went on to engage with additional content driving a lift in overall consumption across the platform.

Mike Cavanagh: Peacock continues to differentiate itself with one of the most robust live sports offerings of any streamer, and that position will only strengthen with the addition of NBA coverage this fall. In fact, in 2026, Peacock will stream more live sports hours than any other streaming entertainment service. Add to that pay-one films from our top-performing studios, original series, next-day NBC and Bravo content, news, and a full entertainment library, and Peacock continues to deliver significant value. To better reflect this premium content, we recently announced a $3 price increase rolling out in July for new subscribers and in late August for existing ones.

Peacock continues to differentiate itself with 1 of the most robust live sports offerings of any streamer and that position will only strengthen with the addition of NBA coverage this fall.

We feel great about the momentum we're building and confident in our ability to create long term value with that I'll turn it over to Jason.

In fact in 2026 peacock will stream more live sports hours than any other streaming entertainment service.

Thanks, Mike and good morning, everyone. Let me start with a high level overview of our consolidated results before getting into more detail on our businesses.

Consolidated revenue increased 2% benefiting from our core six growth drivers three of which are organized under connectivity, including broadband wireless and business services and three of which are in content and experiences, including parks streaming and studios.

Add to that pay 1 films from our top performing Studios, original series next day, NBC and Bravo content new, and a full entertainment library and peacock continues to deliver significant value.

Collectively these businesses represent nearly 60% of our total revenue and grew at a high single digit rate this quarter.

Mike Cavanagh: The impact of this price increase, combined with the strong upfront results I just discussed, helped position us in the fourth quarter as we launch the NBA and take on higher sports programming expenses, particularly in the first year of the NBA contract when we absorbed the full impact of adding these new rights. So to wrap up, across the company, we're executing with focus, simplifying how we operate, and leaning into areas where we have real competitive advantages. And we're doing it while maintaining a strong balance sheet and returning meaningful capital to shareholders. We feel great about the momentum we're building and confident in our ability to create long-term value. With that, I'll turn it over to Jason.

To better reflect this premium content. We recently announced the $3 price increase rolling out in July for new subscribers and in the late August for existing ones.

As you fast forward a couple of years between continued investment in sustaining strong growth in these businesses and actions we are taking on other areas, including our announced spinoff of our linear cable networks and <unk> and our recently announced sale of another one of our businesses our exposure to these growth areas will be closer to 70% of our total revenue.

The impact of this price increase combined with the strong upfront results. I just discussed help position Us in the fourth quarter as we launched the NBA and take on higher sports program expenses. Particularly in the first year of the NBA contract when we absorb the full impact of adding these new rights,

so, to wrap up across

Which is fundamental to our path to re accelerating total company revenue growth.

EBITDA grew 1% this quarter adjusted EPS grew 3% to $1 25, and we generated $4 5 billion of free cash flow, while returning $2 9 billion to shareholders, including $1 7 billion in share repurchases.

The company, we're executing with Focus, simplifying, how we operate and leaning into areas where we have real competitive advantages and we're doing it while maintaining a strong balance sheet and we're returning meaningful Capital to shareholders.

We feel great about the momentum, we're building and confident, in our ability to create long-term value.

With that, I'll turn it over to Jason.

Jason Armstrong: Thanks, Mike, and good morning, everyone. Let me start with a high-level overview of our consolidated results before getting into more detail on our businesses. Consolidated revenue increased 2%, benefiting from our core six growth drivers, three of which are organized under connectivity, including broadband, wireless, and business services, and three of which are in content and experiences, including parks, streaming, and studios. Collectively, these businesses represent nearly 60% of our total revenue and grew at a high single-digit rate this quarter.

Now turning to our businesses, starting with connectivity and platforms.

Beginning with broadband the competitive environment remains intense as we had previewed and when combined with the typical negative seasonality in the second quarter resulted in 226000 subscriber losses.

Thanks, Mike and good morning everyone. Let me start with a high-level overview of our Consolidated results before getting into more detail on our businesses.

Consolidated Revenue increased 2%, benefiting from our core 6. Growth drivers, 3 of which are organized under connectivity, including Broadband, Wireless and business services.

But as Mike described we are encouraged by the early reaction to our new go to market initiatives as we started to see some early signs of stabilization in both connect activity and voluntary churn.

and 3 of which are in content and experiences including Parks streaming and Studios,

Jason Armstrong: As you fast forward a couple of years, between continued investment in sustaining strong growth in these businesses and actions we are taking on other areas, including our announced spin-off of our linear cable networks into Berson and a recently announced sale of another one of our businesses, our exposure to these growth areas will be closer to 70% of our total revenue, which is fundamental to our path to re-accelerating total company revenue growth. EBITDA grew 1% this quarter, adjusted EPS grew 3% to $1.25, and we generated 4.5 billion of free cash flow while returning 2.9 billion to shareholders, including 1.7 billion in share repurchases. Now turning to our businesses, starting with connectivity and platforms. Beginning with broadband, the competitive environment remains intense, as we had previewed, and when combined with the typical negative seasonality in the second quarter, resulted in 226,000 subscriber losses.

Collectively. These businesses represent, nearly 60% of our total revenue and grew at a high single-digit rate this quarter

Notably during the quarter, we saw roughly half of our eligible new customer connects select our five year price guarantee.

As you fast forward, a couple of years between continued investment in sustaining strong growth in these businesses.

<unk> to pay more upfront for longer term consistency.

In addition, we've seen a 20% increase in the share of new connects choosing our premium gig plus speeds.

This contributed to broadband <unk> growth in the quarter of three 5%.

Looking ahead, we continue to expect healthy broadband <unk> growth over the balance of the year, although the rollout of our new everyday pricing structure at the end of the second quarter is expected to moderate <unk> growth in the near term as we began transitioning customers to more consistent and predictable pricing. This includes the continued offer of a pretty wireless line.

Our announced spin-off of our linear cable networks into Versen, and a recently announced sale of another one of our businesses, will bring our exposure to these growth areas closer to 70% of our total revenue. This is fundamental to our path to re-accelerate total company revenue growth.

even doc grew 1%. This quarter adjusted, EPS grew 3% to 125 and we generated 4.5 billion of free cash flow while returning 2.9 billion to shareholders including 1.7 billion in Cherry purchases

For the year to both new and existing broadband customers.

Now, turning to our businesses, starting with connectivity and platforms.

Convergence revenue sustained healthy growth as well up three 7% in the quarter supported by high teens growth in wireless revenue.

Fueled by the strength of our Xfinity mobile product and compelling go to market initiatives, including a promotion offering a free mobile line and our recently introduced premium unlimited plan, we accelerated net line additions to 378000 in the quarter, a new high watermark for wireless net additions for our company.

Jason Armstrong: But as Mike described, we are encouraged by the early reaction to our new go-to-market initiatives, as we started to see some early signs of stabilization in both Connect activity and voluntary churn. Notably, during the quarter, we saw roughly half of our eligible new customer connects select our five-year price guarantee, opting to pay more upfront for longer-term consistency. In addition, we've seen a 20% increase in the share of new connects choosing our premium Gig Plus speeds. This contributed to broadband ARPU growth in the quarter of 3.5%. Looking ahead, we continue to expect healthy broadband ARPU growth over the balance of the year, although the rollout of our new everyday pricing structure at the end of the second quarter is expected to moderate ARPU growth in the near term as we begin transitioning customers to more consistent and predictable pricing.

Beginning with Broadband, the competitive environment remains intense as we had previewed. And when combined, with the typical negative seasonality in the second quarter resulted in 226,000 subscriber losses,

Is Mike described. We are encouraged by the early reaction to our new, go to market initiatives.

we started to see some early signs of stabilization in both connect activity and

voluntary turn.

Our wireless lines have now reached $8 5 million and penetration of 14% of our residential broadband customer base a rate that demonstrates both our success in entrenching our product as a competitive offering in the wireless industry, but also that highlights the tremendous runway we have ahead.

Notably, during the quarter, we saw roughly half of our eligible. New customer connects select our 5-year price guarantee.

Opting to pay more Upfront for longer term consistency.

in addition we've seen a 20% increase in the share of new connects, choosing our premium gig plus speeds

So we're pleased with the results in the quarter and expect continued acceleration in the pace of net additions in the coming quarters.

Contributed to broadband RPG growth in the quarter of 3.5%.

Turning to business services revenue increased 6% and EBITDA grew nearly 5% are.

Our results. This quarter include the acquisition of <unk>, which closed in early April.

Looking ahead, we continue to expect healthy Broadband RPG growth over the balance of the year. Although the roll out of our new everyday, pricing structure, at the end of the second quarter is expected to moderate our PUK growth in the near term as we begin transitioning. Customers to

Jason Armstrong: This includes the continued offer of a free wireless line for a year to both new and existing broadband customers. Convergence revenue sustained healthy growth as well, up 3.7% in the quarter, supported by high-teens growth in wireless revenue. Fueled by the strength of our Xfinity Mobile product and compelling go-to-market initiatives, including our promotion offering a free mobile line and our recently introduced premium unlimited plan, we accelerated net line additions to 378,000 in the quarter, a new high-water mark for wireless net additions for our company. Our wireless lines have now reached 8.5 million and penetration of 14% of our residential broadband customer base, a rate that demonstrates both our success in entrenching our product as a competitive offering in the wireless industry, but also that highlights the tremendous runway we have ahead.

<unk> contributed a few hundred basis points to revenue growth and about 100 basis points to EBITDA growth and we expect a similar positive impact for the next few quarters until we anniversary. This deal next year.

More assistance and predictable pricing.

This includes the continued offer of a free wireless line for a year to both new and existing Broadband customers.

Our strong performance continues to reflect the same framework, we've seen for the last several quarters, including solid growth in SMB and even stronger growth at our enterprise solutions business at.

Convergence Revenue, sustained Healthy Growth as well. Up 3.7% in the quarter supported by High Teens growth in Wireless Revenue.

At SMB, despite increased competitive intensity, we continue to generate healthy revenue growth by driving higher adoption of our suite of advanced services, including cyber security and Comcast business mobile.

By the strength of our Xfinity, mobile product and compelling go to market initiatives, including our promotion offering a free mobile line. And our recently introduced premium unlimited plan, we accelerated netline additions to 378,000 in the quarter. A new high water mark for wireless net additions, for our company.

In our enterprise solutions business, we continue to see strong momentum. This growing segment of our customer base has more complex needs ranging from cyber security to multilocation connectivity and a value integrated solutions and service reliability. These are areas, where we continue to invest and lead connectivity.

Our Wireless lines have now reached 8.5 million and penetration of 14% of our residential Broadband, customer base.

Jason Armstrong: So we're pleased with the results in the quarter and expect continued acceleration in the pace of net additions in the coming quarters. Turning to business services, revenue increased 6% and EBITDA grew nearly 5%. Our results this quarter include the acquisition of NITEL, which closed in early April. NITEL contributed a few hundred basis points to revenue growth and about 100 basis points to EBITDA growth, and we expect a similar positive impact for the next few quarters until we anniversary this deal next year. Our strong performance continues to reflect the same framework we've seen for the last several quarters, including solid growth in SMB and even stronger growth at our enterprise solutions business. At SMB, despite increased competitive intensity, we continue to generate healthy revenue growth by driving higher adoption of our suite of advanced services, including cybersecurity and Comcast Business Mobile.

A rate that demonstrates, both our success and entrenching our product as a competitive offering in the wireless industry, but also that highlights the tremendous Runway. We have ahead.

Connectivity remains the core of our business and we continue to see a meaningful shift in advanced solutions three years ago for every dollar of connectivity sold we sold 20 of advanced solutions today that figure has grown to approximately 50.

So we're pleased with the results in the quarter and expect continued acceleration in the pace of net additions in the coming.

Turning to Business Services Revenue, increased 6%, and Evita grew nearly 5%.

our results, this quarter include the acquisition of nitel which closed in early April,

Underscoring the increasing value, we're delivering to customers and reinforcing our competitive position.

Nitel contributed, a few hundred basis points to revenue growth.

100 basis points to Eva dog growth.

Putting all of this together EBITDA was flat in the quarter consistent with comments, we made last quarter that our new go to market strategy would impact our ability to grow EBITDA. This year, we still believe that to be true as our investment in our operational pivot will ramp over the remaining quarters of 2025.

And we expect a similar positive impact for the next few quarters until we anniversary this deal next year.

Our strong performance continues to reflect the same framework we've seen for the last several quarters, including solid growth in SMB and even stronger. Growth at our Enterprise Solutions business.

On the other side of this these actions will position us well for long term convergence revenue growth with a more durable customer base on market based rate plans with long term price stability and a discounted wireless offering with broader exposure across our base, giving us a large revenue and profit pool to unlock overtime.

Jason Armstrong: In our enterprise solutions business, we continue to see strong momentum. This growing segment of our customer base has more complex needs, ranging from cybersecurity to multi-location connectivity, and they value integrated solutions and service reliability. These are areas where we continue to invest and lead. Connectivity remains the core of our business, and we continue to see a meaningful shift in advanced solutions. Three years ago, for every dollar of connectivity sold, we sold 20 cents of advanced solutions. Today, that figure has grown to approximately 50 cents, underscoring the increasing value we're delivering to customers and reinforcing our competitive position. Putting all of this together, EBITDA was flat in the quarter, consistent with comments we made last quarter that our new go-to-market strategy would impact our ability to grow EBITDA this year.

At SMB despite increased competitive intensity. We continue to generate healthy Revenue growth by driving higher adoption of our suite of advanced services, including cyber security, and Comcast business mobile.

In our Enterprise Solutions business. We continue to see strong momentum.

And content and experiences there are several key items I'd like to highlight.

At parks revenue increased 19% this quarter driven by the successful opening of epic universe on May 20 <unk>.

This growing segment of our customer base, has more complex needs ranging from cyber security to multi-location connectivity, and they value Integrated Solutions and service reliability. These are areas where we continue to invest and Lead.

While EBITA growth was limited to 4% due to soft opening costs at the New Park.

As Mike mentioned, we're really happy with the consumer response, and we're pleased with how epic is contributing to the overall universal Orlando guest experience and performance.

We expect epic to continue to scale over the course of the year with higher attendance and per caps as well as significantly improved operating leverage.

Connectivity Remains the core of our business and we continue to see a meaningful shift in advanced Solutions, 3 years ago, for every dollar of connectivity sold. We sold 20 cents of advanced Solutions today that figure has grown to approximately 50 cents, underscoring the increasing value, we're delivering to customers and reinforcing our competitive position.

Putting all of this together.

Evita with flat in the quarter, can

More broadly performance at our international Parks remains strong. However, we do continue to experience pressure in Hollywood and we think it will be a couple more quarters until we lap that.

Jason Armstrong: We still believe that to be true, as our investment in our operational pivot will ramp over the remaining quarters of 2025. On the other side of this, these actions will position us well for long-term convergence revenue growth with a more durable customer base on market-based rate plans with long-term price stability and a discounted wireless offering with broader exposure across our base, giving us a large revenue and profit pool to unlock over time. In content and experiences, there are several key items I'd like to highlight. At parks, revenue increased 19% this quarter, driven by the successful opening of Epic Universe on May 22nd, while EBITDA growth was limited to 4% due to soft opening costs at the new park. As Mike mentioned, we're really happy with the consumer response, and we're pleased with how Epic is contributing to the overall Universal Orlando guest experience and performance.

since we made last quarter that our new go to market strategy, would impact our ability to grow. We bit the out this year.

Turning to studios, we saw strong performance from the successful theatrical launch of how to train your Dragon on June 13th.

We still believe that to be true as our investment, in our operational, pivot will ramp over the remaining quarters of 2025.

Which has grossed over $600 million in worldwide box office year to date driving this franchise passed the $2 billion Mark.

This success was followed by the July 2nd opening of Jurassic World Rebirth, which is the seventh installment of our $6 billion franchise and has already surpassed $700 million in worldwide box office this month while.

In content and experiences, there are several key items. I'd like to highlight

While the benefit of Jurassic theatrical performance, where land in the third quarter the investment to launch two of our three tentpole releases back to back impacted our second quarter results and profitability.

In addition to Jurassic, we look forward to several more releases in the third quarter, including the bad guys to nobody to Downton Abbey, the Grand finale him and Gabby stall house the movie in.

Parks revenue increased 19% this quarter, driven by the successful opening of Epic Universe on May 22nd. Meanwhile, IBAA growth was limited to 4% due to soft opening costs at the new park.

Jason Armstrong: We expect Epic to continue to scale over the course of the year with higher attendance and per caps, as well as significantly improved operating leverage. More broadly, performance at our international parks remains strong. However, we do continue to experience pressure in Hollywood, and we think it will be a couple more quarters until we lap that. Turning to studios, we saw strong performance from the successful theatrical launch of How to Train Your Dragon on June 13th, which has grossed over 600 million in worldwide box office year to date, driving this franchise past the $2 billion mark. This success was followed by the July 2nd opening of Jurassic World Rebirth, which is the seventh installment of our $6 billion franchise and has already surpassed 700 million in worldwide box office this month.

As Mike mentioned, we're really happy with the consumer response, and we're pleased with how Epic is contributing to the overall Universal Orlando guest experience and performance.

In media total advertising revenue was down 7% in part due to the volume and timing of sports content as well as tough political comparisons.

We expect epic to continue to scale over the course of the year with higher attendance and per caps, as well as significantly improved. Operating Leverage

Excluding this advertising was down low single digits as a reminder for US the second quarter has historically lacked tentpole sports. So we've been more susceptible to fluctuations and general Entertainment ratings, we look forward to that changing next year with the launch of the MBA looking.

Broadly performance at our International Parks remains strong. However, we do continue to experience pressure in Hollywood and we think it will be a couple more quarters until we lap that

Turning the studios, we saw a strong performance from the successful theatrical launch of How to Train Your Dragon on June 13th.

Looking ahead to the third quarter, we will have a tough comparison to the very successful Paris Olympics, but feel well positioned over the next year, given our strong lineup of content.

Which is grossed over 600 million in worldwide box office here to date driving this franchise past the 2 billion dollar mark.

Including the MBA premiering in the fourth quarter and the Winter Olympics and Super Bowl in the first quarter of 2026, all of which contributed to record upfront results that Mike highlighted earlier.

Success was followed by the July 2nd opening of Jurassic world rebirth, which is the seventh installment of our 6 billion dollar franchise and has already surpassed 700 million in worldwide box office.

Jason Armstrong: While the benefit of Jurassic's theatrical performance will land in the third quarter, the investment to launch two of our three tentpole releases back to back impacted our second quarter results and profitability. In addition to Jurassic, we look forward to several more releases in the third quarter, including The Bad Guys 2, Nobody 2, Downton Abbey: The Grand Finale, Him, and Gabby's Dollhouse: The Movie. In media, total advertising revenue was down 7%, in part due to the volume and timing of sports content, as well as tough political comparisons. Excluding this, advertising was down low single digits. As a reminder, for us, the second quarter has historically lacked tentpole sports, so we've been more susceptible to fluctuations in general entertainment ratings. We look forward to that changing next year with the launch of the NBA.

Our overall media results. This quarter were driven by the continued meaningful progress we are making in our pivot to streaming peacock delivered double digit revenue growth and a nearly $250 million year over year improvement in EBITDA losses, which landed a $100 million this quarter.

Well, the benefit of Jurassic theatrical performance were land in the third quarter, the investment to launch 2 of our 3 tent pole, releases back-to-back impacted our second quarter results in profitability.

Despite second quarter being a seasonally light sports quarter, we held paid subscribers steady at $41 million driven in part by the wildly popular new season of Love Island USA.

In addition to Jurassic, we look forward to several more releases. In the third quarter, including the bad guys 2, nobody 2 down to Abby the grand finale, him and Gabby's dollhouse the movie.

Before wrapping up on capital allocation, let me start by spending a minute on the impact of the corporate tax provisions in the recently enacted tax legislation the.

In media, total advertising Revenue was down 7% in part due to the volume and timing of sports content, as well as tough political comparisons.

The legislation restores 100% bonus depreciation reinstating full expensing for property acquired and placed in service. After January 19th of this year and restores immediate deductibility for domestic R&D expenses.

Excluding this advertising was down low single digits, as a reminder for us. The second quarter has historically lacked 10 pole Sports. So we've been more susceptible to fluctuations in general entertainment ratings,

Jason Armstrong: Looking ahead to the third quarter, we will have a tough comparison to the very successful Paris Olympics, but feel well positioned over the next year, given our strong lineup of content, including the NBA premiering in the fourth quarter and the winter Olympics and Super Bowl in the first quarter of 2026, all of which contributed to record upfront results that Mike highlighted earlier. Our overall media results this quarter were driven by the continued meaningful progress we are making in our pivot to streaming. Peacock delivered double-digit revenue growth and a nearly $250 million year-over-year improvement in EBITDA losses, which landed at $100 million this quarter. Despite the second quarter being a seasonally light sports quarter, we held paid subscribers steady at 41 million, driven in part by the wildly popular new season of Love Island USA.

We look forward to that, changing next year with the launch of the MBA.

So how does this impact us we are a leader in U S infrastructure investment, we're a leader in domestic content production and we're a leader in the domestic experiences category. In fact, we have the nation's largest broadband network and are extending our network by adding $1 2 million passengers a year.

Looking ahead to the third quarter, we will have a tough comparison to the very successful Paris Olympics. But feel well, positioned over the next year. Given our strong lineup of content, including the MBA premiering in the fourth quarter and the

winner Olympics and Super Bowl in the first quarter of 2026, all of which contributed to record upfront results that Mike highlighted earlier.

We've just debuted the largest and most sophisticated theme park built in the U S. In decades, we are leaders in entertainment programming and production with our film studio consistently ranked number one or number two in worldwide box office.

Our overall media results. This quarter were driven by the continued meaningful progress. We were making in our pivot to streaming.

And we are number two in domestic sports programming and the home to many of the top sports in the U S. Like the NFL The Olympics, the World Cup Golf and will soon add the MBA.

Peacock delivered, double-digit, Revenue growth, and a nearly 250 million year-over-year Improvement in Evita losses, which landed a hundred million dollars. This quarter

As a result of all of that there are several things in the legislation that benefit us and we estimate on average roughly $1 billion in annual cash tax benefit for the next several years with much of the benefit relating to infrastructure investments.

Quarter being a seasonally light Sports quarter. We held paid subscribers steady at 41 million driven in part by the wildly popular new season of Love Island, USA.

Jason Armstrong: Before wrapping up on capital allocation, let me start by spending a minute on the impact of the corporate tax provisions in the recently enacted tax legislation. The legislation restores 100% bonus depreciation, reinstating full expensing for property acquired and placed in service after January 19th of this year, and restores immediate deductibility for domestic R&D expenses. So how does this impact us? We are a leader in US infrastructure investment, we're a leader in domestic content production, and we're a leader in the domestic experiences category. In fact, we have the nation's largest broadband network and are extending our network by adding 1.2 million passings a year. We've just debuted the largest and most sophisticated theme park built in the US in decades.

Before wrapping up on Capital allocation, let me start by spending a minute on the impact of the corporate tax Provisions in the recently, enacted tax legislation.

In broadband we said for some time now that we expect and the vast majority of our domestic footprint there will effectively be to multi gig symmetrical wires running into the home and that's exactly what we've been preparing for by further strengthening and extending our network and innovating to differentiate the in home Wi Fi experience we deliver.

The legislation restores 100% bonus, depreciation reinstating, full, expensing for property Acquired and placed in service. After January, 19th of this year and restores immediate deductibility for domestic R&D expenses.

The change in tax legislation provides a tailwind to that strategy and further supports our U S investment benefiting the company our customers and the communities we serve all across the country.

So how does this impact us? We are a leader in US infrastructure investment we're a leader in domestic content production and we're a leader in the domestic experiences category. In fact we have the nation's largest Broadband Network and our extending our Network by adding 1.2 million passing a year.

So our expectation is that this legislation helps fuel the capital allocation formula that's been successful for us which starts with reinvesting in our businesses prioritizing a strong balance sheet and strong returns of capital to our shareholders through dividends and share buybacks, we've been shrinking our share count by mid single digits on an annual basis.

Jason Armstrong: We are leaders in entertainment programming and production, with our film studio consistently ranked number one or number two in worldwide box office, and we are number two in domestic sports programming and the home to many of the top sports in the US, like the NFL, the Olympics, the World Cup, golf, and we'll soon add the NBA. As a result of all of that, there are several things in the legislation that benefit us, and we estimate on average roughly $1 billion in annual cash tax benefit for the next several years, with much of the benefit relating to infrastructure investments.

We've just debuted the largest and most sophisticated theme park built in the US in decades. We are leaders in entertainment, programming and production with our Film Studio. Consistently ranked number 1 or number 2 in worldwide box office.

<unk> for the past several years and we expect to continue to do that as part of our robust and balanced capital allocation framework.

And we are number 2 in domestic Sports Programming and the home to many of the top sports in the US. Like the NFL, the Olympics, the World Cup golf.

Soon, add the MBA.

With that let me turn it back over to Marcy.

As a result of all of that, there are several things in the legislation that benefit us.

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

Thank you well now begin the question and answer session. If you have a question. Please press star and the number one under Touchtone phone.

Jason Armstrong: In broadband, we've said for some time now that we expect in the vast majority of our domestic footprint, there will effectively be two multi-gig symmetrical wires running into the home, and that's exactly what we've been preparing for by further strengthening and extending our network and innovating to differentiate the in-home Wi-Fi experience we deliver. The change in tax legislation provides a tailwind to that strategy and further supports our US investment, benefiting the company, our customers, and the communities we serve all across the country. So our expectation is that this legislation helps fuel the capital allocation formula that's been successful for us, which starts with reinvesting in our businesses, prioritizing a strong balance sheet, and strong returns of capital to our shareholders through dividends and share buybacks.

And we estimate on average roughly, a billion dollars in annual cash, tax benefit for the next several years, with much of the benefit relating to infrastructure Investments,

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

If you're using a speakerphone you may need to pick up the handset first before pressing the numbers. Once again that's already questions. Please press Star then the number one on your Touchtone phone.

In Broadband, we've set for some time. Now that we expect in the vast majority of our domestic footprint. There will effectively be 2, multigig, symmetrical wires running into the home. And that's exactly what we've been preparing for.

Our first question today is coming from Michael Rollins from Citibank. Your line is now live.

My further strengthening and extending our Network and innovating to differentiate the in-home Wi-Fi experience we deliver.

Thanks, and good morning first on broadband you mentioned the early reaction that you've seen from the adjustments to your go to market curious if you'd give some more details.

the change in tax legislation provides a Tailwind of that strategy, and

Further supports our U.S. investment benefiting the company.

Communities we serve all across the country.

On that on the competitive landscape and how that influences the pace over which you would expect.

so, our expectation is that this legislation helps fuel, the capital allocation formula that's been

Great.

Quarterly broadband performance going forward.

Hey, Mike This is Dave so.

Jason Armstrong: We've been shrinking our share count by mid-single digits on an annual basis for the past several years, and we expect to continue to do that as part of a robust and balanced capital allocation framework. With that, let me turn it back over to Marci.

our businesses prioritizing, a strong balance sheet, and strong returns of capital, to our shareholders, through dividends and share BuyBacks.

<unk> with the competitive landscape.

It remains intense as we've noted.

Fixed wireless remains very active in the marketplace fiber competitors continue to build more passing so that that certainly hasnt changed in terms of the landscape.

Shrinking our share count by mid single digits on an annual basis for the past several years, and we expect to continue to do that as part of a robust and balanced Capital, allocation framework.

Let me turn it back over to Marcy.

Marci Ryvicker: Thanks, Jason. Operator, let's open the call for Q&A, please.

Operator: 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 touch tone phone. If you wish to be removed from the queue, please press star and the number two. If you're using a speaker phone, you may need to pick up the headset first before pressing the numbers. Once again, if there are any questions, please press star to the number one on your touch tone phone. Our first question today is coming from Michael Rollins from Citibank. Your line is now live.

Thanks Jason operator, let's open the call for Q&A, please.

From our perspective.

We want to make these changes that will help our competitive position leverage our strengths but changed.

Thank you. We'll now begin the question and answer session. If you have a question, please press star and the number 1 on your touchtone phone.

If you wish to be removed from the queue, please press star on the number 2.

The experience side of things.

To address some of the pain points that we've talked about so.

While it remains intense the changes.

If you're using a speaker phone, you may need to pick up the handset. First before pressing the numbers, once the unit is already questions. Please press star to the number 1 on your touchtone phone.

Changes are tremendous sense of urgency around getting to the other side.

Our first question today is coming from Michael Rollins from City Bank. Your line is now live

Michael Rollins: Thanks, and good morning. First, on broadband, you mentioned the early reaction that you've seen from the adjustments to your go-to-market. Curious if you could give some more details, you know, on that, on the competitive landscape and how that influences the pace over which you'd expect to improve quarterly broadband performance going forward.

Around whether it's all in pricing.

Whether with the leveraging the gateway included unlimited the free mobile line, that's part of it the lowering everyday pricing the five year price guarantee that's key and all of the customer experience changes those things are underway.

Thanks and good morning. Uh, first on broadband, you mentioned the early reaction that you've seen from the adjustments to your go to market curious. If you could give some more details you know on that on the competitive landscape and how that influences the pace over, which you'd expect to improve quarterly Broadband, performance going forward.

Dave Watson: Hey, Mike. This is Dave. So, you know, starting with the competitive landscape, it remains intense, as we've noted. The fixed wireless, you know, remains very active in the marketplace. Fiber competitors continue to build more passings. So that certainly hasn't changed in terms of the landscape. You know, from our perspective, we want to make these changes that will help our competitive position, leverage our strengths, but change the experience side of things to address some of the pain points that we've talked about. So while it remains intense, the changes, what doesn't change is our tremendous sense of urgency around getting to the other side, around whether it's all-in pricing, whether with leveraging the gateway included unlimited, the free mobile line as part of it, the lowering everyday pricing, the five-year price guarantee that's key, and all the customer experience changes.

We're real early to comment in terms of any impact at this point.

Other than to say as Jason brought up that the early connect activity very encouraging you have of the eligible.

New customer connects selected the five year price guarantee.

We saw a 20% increase in the share of new connects choosing the premium gig speeds. So.

Hey Mike. Uh, this is Dave, so, you know, starting with the competitive landscape. Uh, it remains intense, as we've noted, the fixed Wireless, you know, remains very active in the marketplace fiber competitors continue to build more passing. So that, that certainly uh, hasn't changed in terms of the landscape.

Like the early results, but we're moving with the with a lot of speed.

And like the early results.

It's Mike I'll, just jump in and Echo.

You know, from our perspective, the, the we want to make these changes that will help our competitive position. Leverage our strengths

And.

Kudos to Dave.

Steve and team.

Urgency with which they're going after.

The competitive environment is really strong and impressive so thanks to the team for that but I think that to answer your question as well all of the tools of the go to market changes that I went through the seven of them plus the various attack on any element of customer friction in the experience of engaging with us whether that's through via <unk>.

Changed the the the experience side of things uh to to address some of the pain points that that we've talked about. So um while it remains intense, the the the changes what doesn't change is our tremendous sense of urgency around getting to the other side.

<unk>, our dotcom channels or sales channels or otherwise.

There's a lot going on and I think all of that is in the market. So as we engage with customers whether they're at a promo roll moment or a new customer coming in the door or just a normal customer interaction I think theres a lot of all of the all the things we talked about our <unk>.

Dave Watson: Those things are underway, you know, real early to comment in terms of any impact at this point, other than to say, as Jason brought up, that, you know, the early Connect activity, very encouraging. Half of the eligible new customer connects selected the five-year price guarantee, and we saw a 20% increase in the share of new connects choosing the premium gig speed. So like the early results, but we're moving with a lot of speed and like the early results.

At work and I think it's a mode of continuous improvement throughout the business when new things pop up we're gonna be doing new things to address the.

Uh around whether it's all-in pricing. Uh, whether the with the leveraging, the Gateway included on limited, the free mobile line. As part of it, the lowering everyday pricing, the 5-year price guarantee that's key and and all the customer experience changes. Those things are are underway. Um, you know, real early to comment in terms of any impact at this point. Uh, other than to say that as Jason brought up that, you know, the early, you know, connect activity, very encouraging, you have

Competitive situation with a view that obviously there is a hugely important business and I think the goal of it all is to position the broadband customer base or really the connectivity customer base in a way that we've got a very loyal.

Brian Roberts: I just might, I'll just jump in and echo, you know, and kudos to Dave and Steve and team. The urgency with which they're, you know, going after the competitive environment is really strong and impressive. So thanks to that team for that. But I think to answer your question as well, all the tools of the go-to-market changes that I went through, the seven of them, plus the various attack on any element of customer friction in the experience of engaging with us, whether that's through VRUs or dot com channels or sales channels or otherwise, there's a lot going on. And I think all that is in the market.

Satisfied value.

<unk> the value of our products with greater stickiness lower churn.

Exposed to our mobile product, which we think drives a lot of value.

And I think that's going to set us up well for the long the long term competitive dynamics that Jason described just a moment ago of having two lines to into each home in the marketplace over the long term. So I think bringing great products, great service and a great network to bear on all of that wrapped and all the things that David.

Steve are doing is the plan of attack.

Brian Roberts: So as we engage with customers, whether they're at a promo roll moment or a new customer coming in the door or just a normal customer interaction, I think there's a lot of all the things we talked about are at work, and I think it's a mode of continuous improvement throughout the business. When new things pop up, we're going to be doing new things to address the competitive situation with a view that obviously this is a hugely important business, and I think the goal of it all is to position the broadband customer base or really the connectivity customer base in a way that we've got a very loyal, satisfied, valued, you know, experiencing the value of our products with greater stickiness, lower churn, and exposed to our mobile product, which we think drives a lot of value.

Thanks, Mike.

1 of the eligible. Uh, new customer connects selected the 5-year price guarantee and we saw a 20% increase in the share of new connects. Choosing the premium gig speed, so like the early results, but we're moving with the with a lot of speed. Um, and uh, like the early results, Mike, it's Mike. I'll just, uh, jump in and Echo. Uh, you know, and, uh, kudos to Dave and Steve and team, uh, the urgency with which they're, you know, going after uh, the competitive environment is is really strong and impressive. So thanks that team for that. But I think to answer your question as well, all the tools of the go to market changes that I went through the 7th of them plus the various, uh, attack on any element of customer friction in the experience of engaging with us, whether that's through vruce or.com channels or sales channels or otherwise. Uh, there there's a lot going on and I think all that is in the market. Uh, so as we engage with customers whether

Operator, we will take our next question please.

The next question is coming from Craig Moffett from Moffett Nathanson. Your line is now live.

Alright. Thank you, let me stay with broadband if I could.

Charter called out involuntary disconnects, there is non pay disconnects as.

As one of the headwinds I wonder if youre seeing any of the same thing, which I suspect would would point to some continuation of of the market impact of discontinuing. The ACP program and then if I think about project Genesis and where you are with your network upgrades have you seen any <unk>.

Whether they're at a promo role moment, or a new customer, coming in the door, or just a normal customer interaction. I think there's a lot of all the all the things we talked about are, uh, at work. And I think it's it's a mode of continuous Improvement throughout the business. Uh, when new things pop up, we're going to be doing new things to address the uh the competitive situation with the view that obviously this is a hugely important business and I think the uh the goal of it all is to position the Broadband customer

Material differences in the way you are competing in project Genesis markets, where you finished versus where youre not finished yet what kind of market impact is that having.

Brian Roberts: And I think that's going to set us up well for the long-term competitive dynamics that Jason described just a moment ago of having two lines into each home in the marketplace over the long term. So I think bringing great products, great service, and a great network to bear on all that, wrapped in all the things that Dave and Steve are doing, is the plan of attack.

Hey, Craig this is Dave so non PE from our perspective, we've seen a slight uptick.

At this point balanced by Jason and Mike said that both.

And going into Q2 relative to Q1 on connects in voluntary churn, we saw stabilization, but it was a slight uptick of non pay but not <unk>.

Great products, great service uh and a great network uh to bear on all. That wrapped in all the things that David and Steve are doing is the is the plan of attack.

Michael Rollins: Thanks.

Marci Ryvicker: Thanks, Mike. Operator, we'll take our next question, please.

Thanks Mike.

Operator: Thank you. Next question is coming from Craig Moffett from Moffett Newton Center. Line is now live.

<unk> so on Genesis.

Operator will take our next question. Please, thank you. Next question, is coming from Craig muffin from Muffet needs in your line is now live.

Michael Rollins: Hi, thank you. Let me stay with broadband if I could. Charter called out involuntary disconnects, those non-pay disconnects, as one of the headwinds. I wonder if you're seeing any of the same thing, which I suspect would point to some continuation of the market impact of discontinuing the ACP program. And then if I think about Project Genesis and where you are with your network upgrades, have you seen any material differences in the way you're competing in Project Genesis markets where you're finished versus where you're not finished yet? What kind of market impact is that having?

The great part as Mike talked about the network and you have to.

Hi, thank you. Um let me stay with Broadband if I could um

To put in perspective, we have invested pretty consistently over a long period of time mid splits and other things that put us in a great position today, we have gig plus speeds everywhere and so our ability to compete on a for all segments were in a really good position to do that.

And.

So in terms of the upgrades. We're on track we're ahead of plan actually and.

And we are motoring very quickly on the next phase, which is going to the DOCSIS four dot O. So we're in good shape.

Charter called out involuntary, disconnects. Uh, there's non-pay disconnects as, um, as 1 of the headwinds. I wonder if you're seeing any of the same thing, um, which I suspect would would point to some continuation of, uh, of the market impact of of discontinuing the ACP program. And then, if I think about project Genesis and where you are with your network upgrades, have you seen any material differences in the way you're competing in Project, Genesis markets where you're finished versus um, where you're not finished yet? What kind of Market impact is that having

We're competing with the strength of the network and one addition, I would add to our when we talk about our network.

Dave Watson: Hey, Craig. This is Dave. So non-pay, you know, from our perspective, we've seen a slight uptick at this point, balanced by, as Jason and Mike said, that both, you know, going into Q2 relative to Q1 on connects and voluntary churn, we saw stabilization. But it was a slight uptick in non-pay, but not material. So on Genesis, you know, the great part, you know, as Mike talked about the network, you have to put in perspective, we have invested pretty consistently over a long period of time, mid-splits and other things that put us in a great position. I mean, today, we have Gig Plus speeds everywhere. And so, you know, our ability to compete for all segments, we're in a really good position to do that. And so in terms of the upgrades, we're on track. We're ahead of plan, actually.

Huge part of our point of differentiation is Wi Fi that you have to include Wi Fi in it and our definition of great Wi Fi Wi Fi that matches the capability of your network. So great coverage, great speeds and intelligence that can manage just lots of devices. So.

Hey Craig, this is Dave. Uh, so none pay, you know, from our perspective, we've seen this slide uptick um at this point balance by as Jason and Mike said that both uh you know, and going into Q2 relative to q1 on connects and voluntary trying. We saw a stabilization but there was a slide uptick on non-pay but not um, material.

Overall, when you step back I think our network position is very strong.

And Craig.

And I squeeze in one more if I take our next question. Please.

Thank you. Our next question is coming from Michael <unk> from Goldman Sachs. Your line is now live.

Hey, good morning. Thanks for the question I just have two on broadband <unk>.

First on pricing I was just wondering if you could talk a little bit about this concept of everyday everyday pricing as a potential drag to ARPA growth.

How many of your broadband customers are are on pricing that are above those headline.

Dave Watson: And we are motoring, you know, very quickly on the next phase, which is going to the, you know, DOCSIS 4.0. So we're in good shape. We're competing with the strength of the network. And, you know, one addition I would add to our, when we talk about our network, a huge part of our point of differentiation is Wi-Fi, that you have to include Wi-Fi in it. And our definition of great Wi-Fi is the Wi-Fi that matches the capability of your network. So great coverage, great speeds, and intelligence that can manage just lots of devices. So overall, when you step back, I think our network position is very strong.

Everyday price rates today, I'm, just trying to understand how long these <unk> headwinds may persist.

And then second I was just wondering if you could.

Talk about whether we're back to seasonal on domestic broadband net adds could we see improving net.

Net additions next quarter, just given back to school. Thank you.

Hey, Michael so.

A everyday pricing our focus is to.

So um on Genesis you know the the the great part you know is Mike talked about the the network and you have to put in perspective we have invested pretty consistently over a long period of time, mid splits and other things that put us in a great position. I mean today we have gig plus speeds everywhere and so you know, our ability to compete on for all segments, um, we're in a really good position to do that. And and so, in terms of the upgrades, we're on track, we're ahead of plan, actually. And uh, the and we are motoring, you know, very quickly on the next phase which is going to the you know, doctors Ford auto so we're in good shape. Um we're competing with the the the strength of the network and you know, 1 Edition. I would add to our when we talk about our network of a huge part of our point of differentiation is Wi-Fi,

Get rolling in the early stage part of this in terms of impact as connection we've talked about the connect early stage results, that's pretty encouraging half of the eligible customers are taking it but we won't be bashful in terms of making available to the existing base.

That you you have to include Wi-Fi in it and our definition of great Wi-Fi is the Wi-Fi that matches the capability of your network. So great coverage, great speeds, and intelligence that can manage just lots of devices. So,

You step back? I think our network position is very strong.

Michael Rollins: And could I squeeze in one more?

and,

Marci Ryvicker: Yes, please take our next question, please.

Can I squeeze in?

The right packages that make sense for them. So we won't give detail in terms of.

Operator: Thank you. Our next question is coming from Michael Lang from Goldman Sachs. Your line is now live.

Thank you. Our next question is coming from Michael Lang from Goldman Sachs. Your line is now live.

Ben Swinburne: Hey, good morning. Thanks for the question. I just have two on broadband. First, on pricing, I was just wondering if you could talk a little bit about this concept of everyday pricing as a potential drag to ARPU growth. You know, how many of your broadband customers are on pricing that are above those headline everyday price rates today? I'm just trying to understand how long these ARPU headwinds may persist. And then second, I was just wondering if you could talk about whether we're back to seasonal on domestic broadband net adds. Could we see improving net additions next quarter, just given back to school? Thank you.

The level of customers at this point, but we're going to be very disciplined.

With a lot of purpose around making sure whether its base management or in retention that all of our packages will be made available to them. So we will be pretty aggressive and I think we like when we put people into as Mike said.

The more we put into these longer term packages again, if they are willing to pay a little bit up but more upfront and to have that stability. That's good news for us and to have all the capability of the products and with an eye towards churn improvement.

Hey, good morning. Uh, thanks for the question. I just have, I have 2 on broadband, um, first on on pricing, I was just wondering if you could talk a little bit about this concept of everyday everyday pricing as a potential drag to rpu growth. Um, you know how many of your Broadband customers are are are on pricing that are above those headlines. Uh, every day price rates today, I just trying to understand how long these are who headwinds may persist and then second I I was just wondering if you could um talk about whether we're back to seasonal on domestic Broadband net ads. Um could we see improving? Uh net additions next quarter, just giving back to school. Thank you.

So.

Dave Watson: Hey, Michael. So in terms of everyday pricing, you know, our focus is to, you know, get rolling in the early stage part of this. And in terms of impact is connects, and we've talked about the connect early stage results, you know, that's pretty encouraging half of the eligible customers are taking it. But we won't be bashful in terms of making available to the existing base the right packages that make sense for them. So we won't give detail in terms of, you know, the level of customers at this point, but we're going to be very disciplined, you know, with a lot of purpose around making sure whether it's base management or in retention that all of our packages will be made available to them. So we'll be pretty aggressive.

It's going to be an aggressive broad based plant connects base management and retention and full use of these new go to market tactics.

On the seasonal trends I think theres been a steady <unk>.

Movement towards more seasonal activity that we've seen over time.

So yes, there is.

Q3 is always a pretty big back to school period, and we are as always aggressively positioned to go after that.

And there are seasonal trends that happened just happened in Q2 that we talked about but I think theres movement towards.

Hey Michael. So um, terms of everyday pricing, you know, our our focus is to, you know get rolling and the early stage part of this and in terms of impact is connect, and we've talked about the Kinect early stage results, you know, that pretty encouraging half of the eligible. Uh, customers are are taking it, but we won't be bashful in terms of making it available to the existing base. Um, The Right Packages that make sense for them. So we won't give detail in terms of, you know, the the level of customers at this point.

More predictable seasonal trends that we had previously seen.

Hey, Michael it's Jason just to round out the <unk> question. So as we said in the upfront remarks, three 5% growth. This quarter, we expect it to moderate in the next couple of quarters as we migrate more customers onto new pricing with the goal being it takes several quarters to do this but if you fast forward a year or two years out we've got a.

Dave Watson: And I think we like when we put people into, as Mike said, you know, the more we put into these longer-term packages, again, if they are willing to pay a little bit more upfront and to have that stability, that's good news for us, and to have all the capability of the products and with an eye towards churn improvement. So it's going to be an aggressive broad-based plan, connects, base management, and retention, and full use of these new go-to-market tactics. On the seasonal trends, I think there's been a steady movement towards, you know, more seasonal activity that we have seen over time. So yes, this is a Q3 is always a pretty big back-to-school period, and we are, as always, aggressively positioned to go after that.

Substantial portion of our base migrated on the new packaging.

We gave a guide that said, we still expected heart healthy <unk> growth in this timeframe, but moderated a little bit from where we are right now.

But we're going to be very disciplined, you know, with a lot of purpose around making sure whether it's base management or in retention that all of our packages will be made available, uh, to them. So, uh, we'll be pretty aggressive. And I think we, we, like, when we put people into, as Mike said, you know, the more we put into these longer term packages again, if they're, they are willing to pay a little bit up, more upfront and to have that stability, that's good news for us and to have all the capability of the products and with an eye towards turn Improvement.

Thanks, Mike Operator next question please.

Thank you next question is coming from Ben Swinburne from Morgan Stanley. Your line is now live.

Space Management and retention and full use of these new uh go to market tactics.

Good morning.

Jason you called out three 7% I think convergence revenue growth, which is a nice way to kind of cut through all the GAAP allocations.

On the seasonal Trends, I think there's been a steady movement towards, you know, more seasonal, activity that we we have seen over time.

When you look at the business in the back half should we expect any movement up or down in that when you sort of think about the volume improvements in mobile.

Dave Watson: And there are seasonal trends that happened, just happened in Q2 that we talked about, but I think there's movements towards more predictable seasonal trends that we had previously seen.

Set by your <unk> commentary.

Theres also curious if you had a cash tax number or help for 2025.

Given all the changes that would be helpful. And then for Mike just on Peacock, you've got a lot going on in that business, you're going to have a lot of revenue coming in with that price increase in the upfront.

Ben Swinburne: Yeah, hey, Michael, it's Jason. Just to round out the ARPU question. So as we said in the upfront remarks, you know, 3.5% growth this quarter, we expect it to moderate in the next couple of quarters as we migrate, you know, more customers onto new pricing, with the goal being it takes several quarters to do this, but if you fast forward, you know, a year or two years out, we've got a substantial portion of our base migrated onto new packaging. We gave a guide that said we still expected healthy ARPU growth in this timeframe, but moderated a little bit from where we are right now.

So yes, this is a Q3 is always a pretty big back to school period. And we are as always aggressively positioned to go after that. And uh, there are seasonal trends that happen just happened in Q2 that we talked about. But uh, I think there's movements towards uh, more predictable, seasonal trends that we had previously seen.

But also the NDA just can you talk a little bit about how you see the rest of the year playing out for that business just as we think about all those moving pieces. Thanks a lot.

Yeah.

Several questions there Ben let me start with cash taxes. So we said $1 billion a year on average for the next several years as a result of the substantial domestic infrastructure investments. We make are exactly the type of company that has benefits because of the type of investments we're making.

And hey, Michael it's Jason just to round up the uh, the arpu. Uh, question. So as we said in The Upfront remarks, you know, 3 and a half percent growth, this quarter we expected to moderate in the next couple quarters. We migrated, you know, more customers on to new pricing with the goal being you take several quarters to do this, but if you fast forward, you know, a year or 2 years out. We've got a substantial you know, portion of our base migrated on a new packaging. Um we gave a guy that said, we still expect it healthy arpu, growth in this time frame, but moderated a little bit from where we are.

I would look for that to be roughly that number in 2025, not something we're going to kind of continue to guide on but as you look to set expectations for 2025, that's probably about the right number on convergence revenue, maybe I'll tag team with Dave a little bit, but as you look at this quarter three 7% growth I think what we're setting ourselves up for if you again, if you fast food.

Marci Ryvicker: Thanks, Mike. Operator, next question, please.

Operator: Thank you. Next question is coming from Ben Swinburne from Morgan Stanley. Your line is now live.

Thank you. Next question is coming from Ben swinburne from Morgan Stanley. Your line is now live.

Ben Swinburne: Good morning. Jason, you called out 3.7%, I think, convergence revenue growth, which is a nice way to kind of cut through all the GAAP allocations. When you look at the business in the back half, should we expect any movement up or down in that when you sort of think about the volume improvements in mobile offset by your ARPU commentary? I was also curious if you had a cash tax number or help for 2025, given all the changes, that would be helpful. And then for Mike, just on Peacock, you've got a lot going on in that business. You're going to have a lot of revenue coming in with that price increase and the upfront, but also the NBA.

Good morning. Um,

Where it is a base that's repackaged on.

On the broadband side on a base of wireless business, that's larger than it otherwise would be because we are exposed our product to more and more customers and have the ability to grow off of this when customers roll off the free line either customers. We've got a lot of whom we necessarily wouldn't have attracted under legacy pricing and packaging and now we have the opportunity to attract expose them to our product.

And then price them.

A year from now when we roll off so a real opportunity there in the interim I think youre going to see a little bit of pressure on the convergence revenue metric as we said <unk> comes under moderate ARPA growth moderates a little bit in the next couple of quarters in wireless we have got a portion of our base that's coming in on free line, which moderates that metric as well, but all in the process of setting.

Ben Swinburne: Just can you talk a little bit about how you see the rest of the year playing out for that business, just as we think about all those moving pieces? Thanks a lot. Several questions there, Ben. Let me start with cash taxes. So we set a billion dollars a year on average for the next several years as a result of substantial domestic infrastructure investments we make. We're exactly the type of company that's benefits because of the type of investments we're making. I'd look for that to be, you know, roughly that number in 2025. Not something we're going to kind of continue to guide on, but as you look to set expectations for 2025, that's probably about the right number.

Jason, you called out 3.7%. I think convergence Revenue growth which is a nice way to kind of cut through all the Gap allocations. Um, when you look at the business in the back half, should we expect any movement up or down in that when you sort of, think about the volume improvements in Mobile offset by your RPO commentary? Um, it was Al curious if you had a cash tax number or help for 2025, um, given all the changes, uh, that would be helpful and and then for Mike just on peacock, you got a lot going on in that business, you're going to have a lot of Revenue coming in with that price increase and The Upfront, but also the NBA. Just can you talk a little bit about how you see the rest of the year playing out for that business. Just as we think about all those moving pieces. Thanks a lot.

<unk> up for the one year two year, Mark where we can reaccelerate.

This is Bryan I just wanted to.

Just on the cash tax point, just use it as an opportunity just to say that.

Any policy that encourages American investment really lines up extremely well with everything we've done since the founding the company so for decades, we've been investing.

Ben Swinburne: On convergence revenue, maybe I'll tag team with Dave a little bit, but as you look at this quarter, 3.7% growth, I think what we're setting ourselves up for, if you, you know, again, if you fast forward, is a base that's repackaged, you know, on the broadband side and then a base of a wireless business that's larger than it otherwise would be because we've exposed our product to more and more customers and have the ability to grow off of this when customers roll off the free line. These are customers a lot of whom we necessarily wouldn't have attracted under legacy pricing and packaging, and now we have the opportunity to attract, expose them to our product, and then price them, you know, in a year from now when we roll off. So a real opportunity there.

Mostly here in America building the biggest broadband network opening theme parks high skilled workforce and we believe where technology is headed especially.

Uh, several questions there been let me start with um, cash taxes. So we set a billion dollars a year on average for the next several years. As a result of substantial domestic infrastructure Investments. We make for exactly the type of company that benefits because of the type of Investments we're making. Um, I'd look for that to be, you know, roughly that number in 2025. Um, not something we're going to kind of continue to guide on, but as you look to set expectations for 2025, that's probably about the right number, um, on convergence Revenue. Maybe I'll tag team with, with Dave, a little bit, but as you look at this quarter 3.7% growth, I think what we're setting ourselves up for, if you, you know, again, if you fast forward is a, a base that's repackaged, uh, you know, on the Broadband side and then a

Especially with AI and.

All of the different connectivity uses to reshape our society in everything we do that we are in a great position to continue to lead and invest in the nations broadband fiber internet infrastructure as we always have done so I think.

Ben Swinburne: In the interim, you know, I think you're going to see a little bit of pressure on the convergence revenue metric. As we said, ARPU comes under, you know, ARPU growth moderates a little bit in the next couple of quarters. And wireless, we've got a, you know, portion of our base that's coming in on free line, which moderates that metric as well, but all in the process of setting ourselves up for the one-year, two-year mark where we can reaccelerate.

It leads to the cash tax question.

We are going to be able to take advantage of that policy in a way that's great for our customers.

Okay. Thanks, Ben it's Mike So we do have a lot going on in Peacock and NBC. So let me just step back and kind of cover some ground here. So.

Dave Watson: This is Brian. I just want to, just on the cash tax point, just use it as an opportunity just to say that, you know, any policy that encourages American investment really lines up extremely well with everything we've done since the founding of the company. So for decades, we've been investing mostly here in America, building the biggest broadband network, opening theme parks, high-skilled workforce, and we believe where technology's headed, especially with AI and all the different connectivity uses to reshape our society and everything we do, that we are in a great position to continue to lead and invest in the nation's broadband fiber internet infrastructure as we always have done. So I think it leads to the cash tax question that we are going to be able to take advantage of that policy in a way that's great for our customers.

Base of Wireless business, that's larger than it. Otherwise would be because we've exposed our product to more and more customers and have the ability to grow off of this. When customers roll off the free line, these are customers. We a lot of whom we necessarily wouldn't have attracted under Legacy pricing and packaging. And now we have the opportunity to attract, expose them to our product and then, uh, price them, uh, you know, in, in a year from now, when we roll off. So a real opportunity there in the interim, you know, I think you're going to see a little bit of pressure on the conversions Revenue metric as we said our poo, uh, comes under, you know, moderate our food growth, moderates, a little bit in the next couple quarters and wireless. We've got a, you know, portion of our base that's coming in on free line, which moderates that metric as well. But all in, in the process of setting ourselves up for the 1 year, 2 year mark where we can re accelerate

Really happy with what the team has been doing when you tick NBC and needless to say, we will get to parks at some point, but really great things going on the parks business with studio business has been a top top of the class performer. So alongside that is really our media businesses, where obviously, there's a lot of challenges.

And the ecosystem, but.

this is Brian. I just want to um just want to cash tax point. Just use it as an opportunity just to say that um you know, any policy that encourages American Investment really lines up, extremely well with everything we've done since the founding of the company. So for decades, we've been investing,

But we took on the challenge and opportunity of creating a streaming service in Peacock and I'm proud to say that we see very strong continued momentum there second quarter. We saw our revenues again up nicely into the double digits, 18% as Jason mentioned, the $250 million year over year improvement in EBITDA to a loss.

mostly here in America building, the biggest Broadband Network opening theme parks,

High-skilled Workforce and we believe where technology is headed.

Uh, especially with AI and the all the different connectivity uses to reshape our society and everything we do.

<unk> 100 billion.

But it's really when you look ahead now a couple of quarters down the road. After the <unk> spin will then have a media business made up of NBC broadcast Bravo Telemundo.

Well as Peacock that really are completely symbiotic leveraging the strengths of the entertainment business, which is both scripted.

That we are in a great position to continue to lead and invest in the nation's Broadband, fiber internet infrastructure. As we always have done. So I think um, it leads to the the cash tax question that we are going to be able to take advantage of that.

Policy in a way that's great for our customers.

Brian Roberts: Okay, thanks. Ben, it's Mike. So we do have a lot going on in Peacock and NBC. So let me just step back and kind of cover some ground here. So really happy with what the team has been doing. When you take NBC and, you know, needless to say, we'll get to parks at some point, but really great things going on in the parks business. The studio business has been a, you know, top-of-the-class performer. So alongside that is really our media businesses where obviously there's a lot of challenges in the ecosystem. But we took on the challenge and opportunity of creating a streaming service in Peacock, and I'm proud to say that we see very strong continued momentum there. Second quarter, we saw revenues again up nicely into the double digits, 18%.

And reality entertainment.

As well as sports and news.

And in addition, obviously our pay one movies, so that new NBC media segment, I think is really strategically well positioned to continue to compete.

Compete on the back of.

Great, uh, things going on in the Parks business.

We have our 100th anniversary of NBC next year, it's a business that's been around a long long time has an unbelievable amount of advantages.

So having a strategy for the future that is going to serve customers in a digital way through peacock that wasn't the case, a mere four or five years ago I'm really glad we've got the business set up the way its setup. So when you look now ahead to what's coming from the moment, where we're now launching into bringing the <unk>.

Brian Roberts: As Jason mentioned, a 250 million year-over-year improvement in EBITDA to a loss of 100 million. But it's really, when you look ahead now a couple of quarters down the road, after the Versant spin, we'll then have a media business made up of NBC Broadcast, Bravo, Telemundo, as well as Peacock that really are completely symbiotic, leveraging the strengths of the entertainment business, which is both scripted and reality entertainment, as well as sports and news. And in addition, obviously, our pay-one movies. So that new NBC media segment, I think, is really strategically well positioned to continue to compete on the back of, you know, we're going to have our 100th anniversary of NBC next year. It's a business that's been around a long, long time, has an unbelievable amount of advantages.

Back to NBC, which everyone here is extremely excited about and I think the people at D&B as well because lots of great ideas for that but that will start in the fall and go obviously heavily into the first half of next year.

It'll be the positives needless to say, our it's going to give us a full year of sports programming. So the point, Jason made earlier about the <unk>.

<unk> of sports in our second quarter won't be it won't be the case next year and obviously its a sport that is hugely culturally relevant so theres lots of thinking going on in our entertainment side of how to build things beyond sports around the new audience. So we've talked about all the reasons, we like the NBA so much before but it.

The studio business has been a, you know, top top of the class performer. So alongside that is really our media businesses where obviously there's a lot of challenges in the ecosystem. Uh, but we took on the challenge and opportunity of creating a streaming service in peacock and I'm proud to say that, uh, we seek very strong continued momentum. Their second quarter, we saw revenues again up nicely into the double digits 18%, as Jason mentioned at 250, uh, million euro a year Improvement in ebitda to a a loss of 100 million. Uh, but it's really when you look ahead. Now, a couple of quarters down the road after the verse and spin will then have a media business made up of NBC broadcast Bravo, Telmo? Uh, as well as peacock that really, uh, are completely symbiotic leveraging. The strengths of the entertainment business, which is both scripted, uh, and, uh, reality entertainment, uh, as well as, uh, Sports and

The big investment so when.

In this first season will take a full year.

Years' worth of costs amortization related to the business and that largely starts in the first quarter I'll make a note that we will do our accounting for that where we are going to be essentially straight lining the 11 year contract, whereas our cash costs are substantially lower in the early years bizarre.

Brian Roberts: So having a strategy for the future that is going to serve customers in a digital way through Peacock that wasn't the case a mere four or five years ago, I'm really glad we've got the business set up the way it's set up. So when you look now ahead to what's coming from the moment where we're now launching into bringing the NBA back to NBC, which everyone here is extremely excited about, and I think the people at the NBA as well, there's lots of great ideas for that. But that'll start in the fall and go obviously heavily into the first half of next year. It'll be, you know, the positives, needless to say, are it's going to give us a full year of sports programming. So the point Jason made earlier about the dearth of sports in our second quarter won't be the case next year.

News. Uh, and in addition, obviously our pay 1 movies. So that new NBC media segment I think is really strategically well, positioned to continue to uh compete on the back of you know, we're going to have our 100th anniversary of NBC next year. It's a business that's been around a long. Long time has an unbelievable amount of advantages. Uh, so having a strategy for the future that is going to serve uh, customers in a digital way.

Peacock that wasn't the case a mere 4 or 5 years ago. Uh, I'm really glad, we've got the business set up the way it's set up.

We will have a big working capital benefit that will be calling out in the first couple of years of the contract, but put that to the side.

On the revenue side Thats the cost on the revenue side, obviously, we're taking a big price increase that was in effect already for new Peacock subscribers and we will be in effect for existing at the end of August. So thats, one element I talked to in the earlier remarks about the incredibly strong sports upfront.

So I think a big piece of that is having the NBA and there so thats delivered strongly and over time, we'll have.

Brian Roberts: And obviously, it's a sport that is hugely culturally relevant. So there's lots of thinking going on in our entertainment side of how to build things beyond sports around the new audience. So we've talked about all the reasons we like the NBA so much before, but it's a big investment. So when in this first season, we'll take a full year's worth of cost amortization related to the business, and that largely starts in the first quarter. I'll make a note that, you know, we'll do our accounting for that where, you know, we are going to be essentially straightlining the 11-year contract, whereas our cash costs are substantially lower in the early years. So we'll have a big working capital benefit that I'll be calling out in the first couple of years of the contract. But put that to the side.

The next few years will have the opportunity to drive Peacock subscribers higher as you know we.

We leverage <unk>.

And other content and the continuation of consumer trends moving from the linear ecosystem to the streaming ecosystem continues we will have our various distribution deals over several years call. It three years or so a reset and capture more revenues on that side and over multiple years, we will have the chance to.

So when you look now ahead to the, what's coming, uh, from the moment where we're now launching into bringing the NBA back to, uh, NBC, which everyone here is extremely excited about. And I think the people at the NBA as well, because lots of great ideas for that. Uh, but that'll start in the fall and go obviously heavily into the first half of next year. Um, it'll be it'll deposit positives needless to say, or it's going to give us a full year of Sports Programming. So the point Jason made earlier about the, the, uh, dir of sports in our second quarter won't be uh, won't be the case next year. And obviously it's a sport that is hugely culturally relevant. So there's lots of thinking going on in our entertainment side of how to build, uh, things Beyond Sports around the new audience. So we've talked about all the reasons we like the NBA so much before. Uh, but it's a big investment. So when the in this first season we'll take a full uh, Year's worth of cost amortization related to

Rebalance.

Various programming commitments.

Commitments for Peacock and NBC at large so that's the dynamics I won't give you any particular second half forecast, but as you look through the next year. We're on boarding all of that and I look forward to when we're here in a year from now with one season under our belt and lapping that year I think the business.

Uh, the business and that largely starts in the first quarter, uh I'll make a note that you know we'll do our accounting for that where you know, we are going to be essentially straight lining the 11-year contract, whereas our cash costs are substantially lower in the early years. So our our uh we'll have a a big working capital benefit that I'll be calling out in the first couple of years.

Brian Roberts: You know, on the revenue side, that's the cost. On the revenue side, obviously, we're taking a big price increase that, you know, was in effect already for new Peacock subscribers and will be in effect for existing at the end of August. So that's one element. I talked in the earlier remarks about the incredibly strong sports upfront. So I think a big piece of that is having the NBA in there. So that's delivered strongly. And over time, we'll have, you know, in the next few years, we'll have the opportunity to drive Peacock subscribers higher as, you know, we, you know, leverage NBA and other content and the continuation of consumer trends moving from the linear ecosystem to the streaming ecosystem continues. We'll have our various distribution deals over several years, call it three or so, reset and capture more revenues on that side.

Immediate NBC is set up for.

To be well positioned for growth from their post <unk> and post NBA and with the scaled Peacock that it now is and I think the last point is it's also a set of properties and assets that is going to be extremely attractive to the consumer and very well designed to participate in any of the possible re bundling of and <unk>.

Aggregate of streaming services. So I think the team has accomplished a whole lot on in these media businesses over the last few years, we're proud of the work that everybody at NBC has done.

Thanks, Ben Operator, we will take our next question. Please.

Thank you. Your next question is coming from Jessica Reif Ehrlich from Bank of America Securities. Your line is now live.

Thank you I guess, it's time to get to park.

Brian Roberts: And over multiple years, we'll have the chance to rebalance various programming commitments for Peacock and NBC at large. So that's the dynamics. I won't give you any particular second-half forecast, but as you look through the next year, we're onboarding all of that, and I look forward to, you know, when we're here in a year from now with one season under our belt and lapping that year, I think the business of media at NBC is set up to be well positioned for growth from there, post-Versant, post-NBA, and with the scaled Peacock that it now is. And I think the last point is it's also a set of properties and assets that is going to be extremely attractive to the consumer and very well designed to participate in any of the possible rebundlings and reaggregation of streaming services.

Contract, but put that to the side, you know, on the revenue side, that's the cost on the revenue side. Obviously we're taking a big, uh, price increase that, you know, was in effect already for new peacock subscribers and will be in effect for existing, uh, at the end of August. So that's 1 element. Uh, I talked in the earlier remarks about the incredibly strong Sports upfront. So I think a big piece of that is having, uh, the NBA, uh, in there. So that's delivered, uh, strongly. And over time, we'll have, uh, you know, in the next few years, we'll have the opportunity to drive peacock subscribers, higher, as, you know, uh, we, you know, leverage, uh, NBA and other content and the continuation of consumer Trends. Moving from the linear ecosystem to the streaming ecosystem continues. We'll have our various distribution deals over several years, call it 3 or so, uh, reset and capture more, uh, revenues on that side and over multiple years.

Could you maybe give us some more color on what you're seeing in the mark to market dynamics in Orlando, whether its overall.

Market growth, you mentioned that you're not seeing that much cannibalization in your own parks and maybe like kind of ultimate operating leverage and how you see capex flowing through.

Of the chance to, uh, rebalance, uh, various programming, uh, uh, commitments, uh, for peacock, uh, and NBC at large. So,

Great IP, but ultimately youll add bore.

And then.

David just stepping back.

Kind of a broader question for Brian as you look out over the next couple of years, there's been so much going on in all of your businesses.

That's the Dynamics. I won't give you any particular second half forecast, but as you look through the next year, we're on boarding, all of that. And I look forward to, you know, when we're here in, in, in a year from now, with 1 season under our belt and lapping that year, I think the business of media at NBC is set up for, uh, to be well.

What do you view as opposed to underappreciated growth levers for Comcast as a whole and then just sorry, but Mike a follow up you mentioned the MBA.

Let's kick in Q1, why not Q4 of 25.

Okay.

Mike So thanks.

Brian Roberts: So I think the team has accomplished a whole lot in these media businesses over the last few years. So proud of the work that everybody at NBC has done.

Misspoke it does kick in as the season starts so it kicks in in the fourth quarter goes through the full season, so sorry for that.

In terms of Orlando we.

On in these media businesses over the last few years. So proud of the work that everybody at NBC's done.

Marci Ryvicker: Thanks, Ben. Operator, we'll take our next question, please.

I think the between ourselves and the other parks business. It's there, it's a very strong destination for consumers coming to market.

Operator: Thank you. Next question is coming from Jessica Reif-Rolick from Bank of America Security. Her line is now live.

Thanks Ben. Operator, will take our next question. Please.

Thank you. Next question is coming from Jessica refer from Bank of America security. Your line is now live.

Jessica Reif-Ehrlich: Thank you. I guess it's time to get to parks. Could you maybe give us some more color on what you're seeing in the market dynamics in Orlando, whether it's overall market growth? You mentioned that you're not seeing that much cannibalization in your own parks. And maybe, you know, like kind of ultimate operating leverage and how you see CapEx flowing through. You have great IP, but ultimately you'll add more. And then maybe just stepping back, like a kind of a broader question for Brian. As you look out over the next couple of years, you know, there's been so much going on in all of your businesses. What do you view as the most underappreciated growth levers for Comcast as a whole? And then, sorry, but Mike, a follow-up. You mentioned the NBA hit the cost kick in Q1. Why not Q4 of '25?

And with.

Both businesses investing heavily I think that's going to continue to be the case to the benefit of everyone in the market.

Well, we're focused on obviously is epic, which is new to market and as I said in the prepared remarks, we're really pleased with what we're seeing.

In in terms of revenues and Orlando year over year.

Coming in across when you look at the parks altogether much higher per caps and.

That's driven.

By getting people there for the wonderful experience that is epic. So I think as we look to the second half of the year Youll see just in terms of operating leverage I think things are on track with the epic in Orlando for us.

Thank you, I guess it's time to get to Parks. Um, could you maybe give us some more caller on what you're seeing in the market dynamics in Orlando, whether it's overall me, uh, market growth, you you mentioned that you're not seeing that much panelization in your own part and maybe, you know, like kind of ultimate operating leverage and, and how you see, capex flowing through. You have great IP But ultimately, you'll have more and then, um, maybe just stepping back. Like a kind of a broader question for Brian because you look out over the next couple of years, you know, there's been so much going on in all of your businesses.

And operating leverage will be improved simply due to the roll off of sort of the soft open.

It. What do you view as the most underappreciated growth lovers for Comcast as a whole and then just sorry but mic a follow-up, you mentioned, the MBA the cost ticking q1? Why not Q4 of 25?

Brian Roberts: Okay. And it's Mike, so thanks. I misspoke. It does kick in as the season starts. So it kicks in in the fourth quarter, goes through the full season. So sorry for that. In terms of Orlando, we, you know, I think the, you know, between ourselves and the other parks business that's there, it's a very strong destination for consumers coming to market. And with both businesses investing heavily, I think that's going to continue to be the case to the benefit of everyone in the market. What we're focused on, obviously, is Epic, which is new to market. And as I said in the prepared remarks, we're really pleased with what we're seeing in terms of revenues in Orlando year over year coming in across, when you look at the parks altogether, much higher per caps.

Opening.

We kind of lap versus the first quarter, which was a short period of epic being fully opened.

So Orlando Jessica Thanks.

I think it's important question the kind of lens that I think is important to look a little longer.

Okay. Um and it's it's Mike, so thanks, I misspoke it. It does kick in as the season starts. So it kicks in, in the fourth, quarter goes through the full season. So, um, sorry for that. Um, in terms of Orlando, we, um, you know, I think the, you know, between ourselves and the other Parks business that's there. It's, it's a very strong destination for consumers coming to Market. Um, and

I think a bunch of things that are energizing for y.

Perhaps we're underappreciated in terms of growth possibilities previously we've articulated six growth businesses.

So I won't read articulate all of them.

A lot of that is around broadband both residential and business services and you know where I think we've reenergized the culture around here to focus on how to deliver innovation.

Brian Roberts: And, you know, that's, you know, driven, you know, by getting people there for the wonderful experience that is Epic. So I think as we look to the second half of the year, you'll see just in terms of operating leverage, I think things are on track with Epic and Orlando for us. And operating leverage will be, you know, improved simply due to the rolloff of sort of the soft, you know, opening that we kind of lapped versus the first quarter, which was a short period of Epic being fully open. So that's Orlando.

We're pivoting our products are exciting the pivot with wireless.

Being a really leading part of the bundle for all customers and being more transparent and customer focused.

Great mandate and the way, we tell that story to the consumer with the some of the team.

We're assembling I think youre going to see that really resonate I'm very excited.

At the work that's being done.

As I look a little bit.

And with, uh, both uh, businesses investing heavily. I think that's going to continue to be the case to the benefit of everyone in the market. Uh, well, we're focused on obviously is epic, uh, which is new to Market. And as I said in the prepared remarks, we're really pleased with what we're seeing, uh, in, uh, in terms of, uh, revenues in Orlando year-over-year, uh, coming in, uh, across when you look at the parks all together, much higher per caps and uh you know, that's you know, driven, uh, you know, by getting people there for the wonderful experience that is epic. So I think, as we look to the second half of the Year, you'll see uh, just in terms of operating leverage, I think things are on track with uh, epic and Orlando for us. Uh, and operating leverage will be, you know, improved simply due to the roll off of sort of the soft, you know, opening uh that that we kind of lap versus the first quarter, which was a short period of Epic being

Uh, fully open.

Also with diverse and spin and you'll have a chance to hear from Mark Lazarus and on kidney over time about that.

Dave Watson: Jessica, thanks. I think an important question and the kind of lens that I think is important to look a little longer. I think a bunch of things that are energizing for why perhaps we're underappreciated in terms of growth possibilities. Previously, we've articulated six growth businesses. So I won't re-articulate all of them. A lot of that's around broadband, both residential and business services. And, you know, I think we've re-energized the culture around here to focus on how to deliver innovation. We're pivoting. Our products are exciting. The pivot with wireless being a really leading part of the bundle for all customers and being more transparent and customer-focused. That's a great mandate. And the way we tell that story to the consumer with some of the team that we're assembling, I think you're going to see that really resonate. I'm very excited at the work that's being done.

Toward the end of the year.

It really does do a great thing for the growth businesses those six businesses.

That today are about they were 50% now they're up to 60% post the spin they become 65% of our revenues in just a couple of years after that if the trends continue would be 70%. So all of a sudden it's a very different narrative where have your company is declining.

So that that's uh, Orlando, Jessica, thanks. Um, it's a, I think, uh, an important question and a kind of lens that I, I think is important to look a little longer. Um, I I think a bunch of things that are energizing for why, uh, perhaps we're underappreciated in terms of growth possibilities, uh, previously we've articulated 6 growth businesses,

Um, so I won't be articulate. All of them.

A lot of that's around Broadband both residential and business services. And you know, we're

Have your company is growing to where 70% of your company is growing in each of those businesses has a runway of growth that youre excited by.

So.

I think we've re-energized the culture around here to focus on how to deliver Innovation. Um, we're pivoting our products, our exciting, the pivot with wireless.

I think we're a unique company.

Uh, being a really leading part of the of the bundle for all.

A number of you were at epic universe, not many companies on the planet could take the decade it took to build there.

Maybe the final theme park in the World.

Customers and being more transparent and and customer focused, that's a great mandate. And the way we tell that story to the consumer,

And we're looking forward to doing that over time in London.

Area.

With some of the team that, uh, we're we're assembling, I think you're going to see that really resonate. I'm very excited. Uh,

We got some small.

Dave Watson: As I look a little bit also with the Versant spin, and you'll have a chance to hear from Mark Lazarus, from Anand Kinney, over time about that before the end of the year, it really does do a great thing for the growth businesses. Those six businesses that today are about, they were 50%, now they're up to 60%. Post the spin, they become 65% of our revenues. And then just a couple of years after that, if the trends continue, it'll be 70%. So all of a sudden, it's a very different narrative where half your company is declining and half your company is growing to where 70% of your company is growing. And each of those businesses has a runway of growth that you're excited by. And so I think we're a unique company. You know, a number of you were at Epic Universe.

Mauler Adventures that are opening this summer in Las Vegas.

We just announced Chicago.

With kids in Texas.

Her we've got films, we've got Peacock.

The work that that's being done. Um, as I look a little bit, also, uh, with diverse and spin, and you'll have a chance to hear from Mark Lazarus and on, and kidney, uh, over time about that.

So I see so much excitement of our company and I look forward to that.

For the end of the year, it really does do a great thing for the growth businesses. Those six businesses, uh,

um,

Good day, where the story is a little simpler and I think that that.

Happening organically with the with what we just talked about so.

Very bullish and.

I think the best is coming so that's my thoughts.

Thanks, Jessica Operator next question please.

Certainly our next question is coming from Tycho morale from Evercore ISI. Your line is now live.

That today or about they were 50%. Now they're up to 60%, post to spin, they become 65% of our revenues and just a couple years after that if the trends continue to be 70%. So all of a sudden it's a very different narrative where half your company is declining and half. Your company is growing to where 70% of your company is growing and

Great. Thank you for taking the question I wanted to ask about M&A.

And each of those businesses has a Runway of growth that you're excited by. And so,

Been a fair amount of dealmaking across your peers, particularly on the communications side.

Dave Watson: Not many companies on the planet could take the decade it took to build maybe the finest theme park in the world. And we're looking forward to doing that over time in the London area. We've got some small, smaller adventures that are opening this summer in Las Vegas, and we just announced Chicago. And with kids in Texas and horror, we've got films, we've got Peacock. So I see so much excitement in our company, and I look forward to the day where the story's a little simpler. And I think that that's happening organically with what we just talked about. So very bullish, and I think the best is coming. So that's my thoughts.

<unk> has a long history of M&A, though I realize it's Ed.

Launched regulatory backdrop at the moment, so how should we think about your interest level for potential acquisitions beyond some of the tuck ins that you continue to make on business services.

Um, I I think we're a unique company. Uh, you you know, a number of you were at Epic Universe. Uh, not many companies on the planet. Could take the decade that took to build

Uh, the the maybe the finest theme park in the world. Um, and we're looking forward to doing that over time in London.

And maybe Relatedly I know, it's maybe too early to talk about the path ahead.

Area.

But whatever you could share on it's inorganic opportunities as well would be very helpful. Ahead of expected spin later.

Later this year. Thank you.

Well, let me before we get to M&A.

This is Brian.

Mike can cover this as well, but I.

I really think something we did this quarter that.

Opening this summer in Las Vegas and, um, we just announced Chicago and, uh, with kids in Texas and, and horror we've got films, we've got peacock. Um, so I see so much excitement in our company and I look forward to

Dave touched on is.

And the team is T mobile.

the day where the story is a little simpler. Uh, and I think that that

Happening organically.

In business services business services now is about 25% of our connectivity business.

$10 billion part of the company, we've been making smaller organic growth and acquisitions and M&A.

With, with what we just talked about. So, um, very bullish and, uh, I, I think the best is, is coming. So, that's my thoughts.

Marci Ryvicker: Thanks, Jessica. Operator, next question, please.

Operator: Certainly. Our next question is coming in from Tecca Moral from Evercore ISI, who line is now live.

Thanks Jessica operator. Next question, please.

<unk>.

Certainly, our next question is coming from Toca Moral from Evercore. Isi, your line is now live.

As you've heard.

Ben Swinburne: Great. Thank you for taking the question. I wanted to ask about M&A. You know, there's been a fair amount of dealmaking across your peers, particularly on the communication side. Comcast has a long history of M&A, though I realize it's a nuanced regulatory backdrop at the moment. So how should we think about your interest level for potential acquisitions beyond some of the tuck-ins that you continue to make on business services? And maybe relatedly, I know it's maybe too early to talk about the path ahead at Versant, but whatever you could share on its inorganic opportunities as well would be very helpful ahead of the expected spin later this year. Thank you.

Now connect more small businesses than anyone else in the country and we see strong traction with larger enterprises. So it was very important for us to be able to use mobile.

In our relationships in the mid market to win more share.

Any relationship with T. Mobile allows us to now do that in ways that we haven't been able to offer before.

So it's strategic and I think we will be hopefully a great partnership and we're all very excited to get started.

We also have a really important relationship and a terrific relationship with Verizon with our <unk>, there and along with that deal with T. Mobile we feel good about the capital light approach to wireless the foundation of wireless strategy.

Great, thank you for taking the question. I want to ask about m&a, um, you know there's been a fair amount of deal-making across your peers particularly on the communication side contest is a long history of m&a, though. I realize it's a nuanced regulatory backdrop at the moment. So how should we think about your interest levels for potential Acquisitions Beyond some of the tuck in that you continue to make on Business Services and and maybe relatedly I know it's maybe too early to talk about the path ahead Adverse Events but whatever you could share on its or inorganic opportunities as well. Would be very helpful ahead of the expected. It's been later this year. Thank you.

Dave Watson: Well, let me, before we get to M&A, let me, this is Brian, and Mike can cover this as well. But I really think something we did this quarter that Dave touched on is, and the team is T-Mobile and business services. Business services now is about 25% of our connectivity business. It's a $10 billion part of the company. We've been making smaller organic growth and acquisitions in M&A, as you've heard. We now connect more small businesses than anyone else in the country, and we see strong traction with larger enterprises. So it was very important for us to be able to use mobile in our relationships in the mid-market to win more share. And the relationship with T-Mobile allows us to now do that in ways that we haven't been able to offer before.

Well, let me before we get to m&a, uh let me this is Brian. Uh Mike can cover this as well but um I really think something we did this quarter that that Dave touched on is uh,

Dave was talking about Wi Fi and it today, we carry about 90% of all of our traffic is going over Wi Fi and I think when people hear that they're kind of stunned at Wi Fi works better when youre close to a wire.

And we can marry a network together better than anyone.

The team is T-Mobile um uh and business services. Business Services. Now is about 25% of our connectivity business. It's a 10 billion part of the company. We've been making

And.

I think now are.

smaller organic growth and Acquisitions in m&a. Uh, uh,

Customers are going to benefit from two national and two great National <unk> networks, So M&A kick it over to you Mike but.

Really excited with the progress we've been able to strategically make with smaller acquisitions and with innovation innovative partnerships.

as you've heard, um, we now connect more small businesses than anyone else in the country and we see strong traction with larger Enterprises. So it was very important for us to be able to use Mobile in our relationships in the mid Market to win more share.

Yeah. So on them M&A I think these are comments that are consistent with what you've heard from us before I mean, I think it starts with obviously it's.

Dave Watson: So it's strategic, and I think we'll be hopefully a great partnership, and we're all very excited to get started. We also have a really important relationship and a terrific relationship with Verizon, with our MVNO there. And along with that deal with T-Mobile, we feel good about the capital light approach to wireless. The foundation of wireless strategy, you know, as Dave was talking about, was Wi-Fi. And today, we carry about 90% of all of our traffic is going over Wi-Fi. And I think when people hear that, they're kind of stunned. And Wi-Fi works better when you're close to a wire. And, you know, we can marry a network together better than anyone. And I think now our customers are going to benefit from two national and two great national 5G networks.

Our job to.

Consider things think about things look at what could be coming around the corner and with discipline in evaluating anything that does come along so not speaking other than.

And the relationship with T-Mobile allows us to now, do that in ways that we haven't been able to offer before. Um, so it's strategic and I think we'll be hopefully a great partnership and we're all very excited to get started. Um, we also have a really important relationship, and a terrific relationship with Verizon with our mbno there,

In a general way about that you can assume that the cadence of what we do is to give a lot of thought to.

What inorganically could be value, creating but I think we said before and continue to say that the bar is really high because I think particularly when you look at the moment in time, we are with a lot of transitions that are I feel being well executed in our businesses that.

And along with that deal with T-Mobile, uh, we feel good about the capital light approach to wireless the foundation of Wireless strategy.

you know, is the date was talking about was Wi-Fi and it today we carry about 90% of all of our traffic is

Going over Wi-Fi and I think when people hear that they're kind of stunned and Wi-Fi works better when you're close to a wire.

We have plenty of opportunity to create value by running what we have really well and making growth investments either directly in businesses or the tuck in kind of acquisitions that gives us capabilities in places like.

And you know, we can marry a networked together better than anyone.

And um, I think now our kind kind of customers are going to benefit.

Dave Watson: So M&A, kick it over to you, Mike, but, you know, really excited with the progress we've been able to strategically make with smaller acquisitions and with innovative partnerships.

To National and to Great National 5G networks. So.

And places like business services as you've seen US do so I think that's what you can count on us for and when it comes to the other side of the equation just thinking about the portfolio.

Brian Roberts: Yeah, so on M&A, I think these are comments that are consistent with what you've heard from us before. I mean, I think it starts with, obviously, it's our job to consider things, think about things, look at what could be coming around the corner, and with discipline, evaluate anything that does come along. So not speaking other than, you know, in a general way about that, you could assume that the cadence of what we do is to give a lot of thought to what inorganically could be value creating.

M&a, kick it over to you Mike but um, you know, really excited with the progress. We've been able to strategically make with smaller Acquisitions and with Innovation Innovative Partnerships.

What.

Fits for what we're doing and what might be a better allocation of capital for our shareholders, That's where <unk> comes in so <unk>.

To your question I think everything is tracking really nicely to.

<unk> launch at the beginning of next year end of this year into next year, a great leadership team lots of energy. The work is well underway I think they will hit the ground running I won't steal their thunder on their strategy, then like but they've been at it since the day, we announced as you recall.

Yeah. So and I m&a, I think these are comments that are consistent with what you've heard from us before. I mean, I think it starts with, uh, obviously it's uh, our, our job to, uh, consider things, think about things, look at what could be coming around the corner and with discipline and evaluating anything that does come along. So not speaking, other than, you know, uh, in a general way about that, you could assume that the Cadence of what we do is to give a lot.

Brian Roberts: But I think, you know, we said before and continue to say that the bar is really high because I think particularly when you look at the moment in time we are with a lot of transitions that are, I feel, being well executed in our businesses, that we have plenty of opportunity to create value by running what we have really well and making growth investments either directly in businesses or the tuck-in kind of acquisitions that give us capabilities in places like business services, as you've seen us do. So I think that's what you, you know, can count on us for. And when it comes to the other side of the equation, just thinking about the portfolio and what fits for what we're doing and what might be a better allocation of capital for our shareholders, I mean, that's where Versant comes in.

I made the change.

Changes to everyone's responsibilities. So effectively we've had a team focused on the future of <unk> and the president of <unk> from that moment, almost a year ago now so.

So I think that but that is also a changes the dynamics for.

Our use of capital they generate a lot of cash, but now they're going to have that cash to put into a future for those businesses and obviously for the remaining businesses there'll be revenue growth accretion and more focus on say the remaining NBC that I described earlier, so I think that we sold a business.

In Germany that was part of Sky. So I think M&A is a two sided equation I think we're doing a nice job thinking about the balance across the whole footprint of things that we could do inorganically, but again, our super high because we want to operate and.

Brian Roberts: So Versant, to your question, I think everything's tracking really nicely to have Versant launch at the beginning of next year, end of this year, into next year. Great leadership team, lots of energy. The work is well underway. I think they will hit the ground running. I won't steal their thunder on their strategies and the like, but they've been at it since the day we announced. As you recall, I made the changes to everyone's, you know, responsibilities. So effectively, we've had a team focused on the future of Versant and the president of Versant from that moment, you know, almost a year ago now.

A lot of thought to, um, what inorganically could, uh, be value creating, but I think, you know, we said before and continue to say that the bar is really high because I think particularly, when you look at the moment in time, we are with a lot of transitions that are. I feel being well, executed in our businesses that, uh, we we have plenty of opportunity to create value by running. What we have really well and making, uh, growth Investments either directly in businesses or the tuck-in kind of Acquisitions that give us capabilities, uh, in places like, um, in places like Business Services as you've seen us do. So I, I think that's what you, you know, can count on us for. Um, and when it comes to the other side of the equation, I just thinking about the portfolio and and what, um, fits for what we're doing, and what might be a better, uh, allocation of capital for our shareholders. I mean, that that's where a person comes in. So verse.

Take advantage of our management energy is applied against the big gears that we have to improve the businesses that we currently own and operate.

Thanks, Scott on operator, we will take our last question. Please.

Thank you. The final question today is coming from John Hodulik from UBS. Your line is now live.

Great. Thank you for fitting me in.

Maybe first a follow up on Brian's comments on the business market for days. It looks like you guys are seeing some additional pressure on subs. There can you talk about the competitive market.

And in that segment.

And as it relates to the T mobile <unk> got 14% penetration on the resi side do you expect the penetration of mobile into the business segment to sort of follow up on a similar slope and then for Jason on the $1 billion in cash tax savings can you talk a little bit about what you see in terms of Capex trends maybe on the cable.

Side are there other opportunities to deploy additional capital maybe for further footprint expansion and then how should we think of the capex as it relates to the parks, especially with all the new products that you guys have laid out.

I think everything's tracking really nicely to um, have versent, uh, launched, uh, at the beginning of next year, end of this year into next year. Uh, great leadership team. Lots of energy. The work is, uh, is well underway. I think they will hit the ground running. Uh, I won't steal their Thunder on their strategies and the like, but they've been at it since the day we announced. Uh, as you recall, uh, I made the, uh, changes to everyone's, you know responsibilities, so effectively. Uh, we've had a team focused on the future of Versant and the president of Versant from that moment, you know, almost a year ago now. Um, so I think that but that is also a, you know, changes the Dynamics for, you know, I I I use of capital, they generate a lot of cash but now they're going to have that cash to put into a future for those businesses. And obviously for the remaining businesses, they'll be uh Revenue growth accretion and you know more focus on you know say the remaining NBC that I described, you know, earlier. So I think that, you know,

So this is Dave let me start with the.

Business services follow up so.

There are a couple.

A couple of huge.

Huge categories for us within business services as you know on the.

We've sold a business in Germany that was part of, you know, Sky. So I think M&A is a two-sided equation. And I think we're doing a nice job, um, thinking about the balance across the whole footprint of things that we could do inorganically. But again, the bar is super high because we want to operate and, you know, take advantage of our management energies applied against the big, you know, gears that we have to improve the businesses that we currently own and operate.

The competitive side that you mentioned.

Thanks kakon. Operator, we'll take our last question, please.

<unk> been this way the last several quarters and SMB. We are the market share leader. There is increased competition, we see some certainly with fixed wireless.

Thank you. Our final question today is coming from Dr. From UBS. Your line is now live.

It's not fixed wireless at this point not really affecting our high end part of SMB.

And so with the or the core mid market and certainly enterprise it was real value and the reliability multi product solutions that we have.

And we will have a balanced approach towards growing revenue and relationships across the board. So it's a little bit more competitive in the SMB side mid market and enterprise, though strong momentum.

And as Mike mentioned, the integration of <unk>, well underway and we're adding capabilities of aggregation.

In the U S and further.

Great, thank you for fitting me in. Um, maybe first uh uh follow up on Brian's comments on the business market for, for Dave. Um, looks like you guys are seeing some some additional pressure on on Subs. There, can you talk about the competitive market? You're you're seeing in in that segment and as it relates to the T-Mobile, mvo you've got 14% penetration on the resi side. Do you expect a penetration of mobile into the business segments to sort of follow up a similar slope? And then um, for Jason um on the billion dollars in cash tax savings. Can you talk a little bit about what you see in terms of of capex Trends maybe on on the, on the cable side, or the other opportunities to, to deploy additional Capital maybe for for further footprint expansion. And then how should we think of the capex as it relates to the, the parks, especially with all the the new projects you guys have uh laid out, thanks?

The network acquisition aggregation expanding sales channels broadening of the product portfolio in particular advanced security and then as you mentioned mobile so mobile for US Brian mentioned the relationship we've got a great one with Verizon and <unk> is a really important one with T mobile.

In business. So it's early stage comes at a really good time for us to kick start a higher gear for our business services team and including mobile a big part of how they compete so more to come on that.

Um, so this is Dave, let me start with um, the business services follow up. So, you know, there, there are couple of, you know, huge categories for us within Business Services as, you know, on the, the competitive side that you mentioned. You know, it's it's been this way, the last several quarters and and SMB. We are the market share leader. There's increased competition, we see, you know, some certainly with Fitz Wireless.

Hey, John on the.

Capex side related to any sort of cash tax relief that we've articulated let me step back on infrastructure as a category. A few of you have asked questions related to this but we are building out $1 2 million homes per year, we've done that on pace to do that this year did this last year.

You really step back this is a validation of how we see ultimately the market for broadband and we are in a competitive period right now not sure. We expect that to change fiber will continue to be built out against us fixed wireless kind of is it going to continue to have sort of a niche it carves out in the value conscious world.

Uh, it's not fixed Wireless at this point. Not really affecting our high-end part of SMB. Um, and so the or the core mid-market and certainly Enterprise, it was real value and the reliability multi-product solutions that we have and that we have a balanced approach towards growing revenue and relationships across the board. So it's it's a little bit more competitive in the SMB side. Mid-market and Enterprise though. Strong momentum

When we build new homes, though it is against a framework that the competition of the future will involve two wires coming into the vast majority of the territory that we serve in addition to fixed wireless having carved out a more permanent niche in the market.

Bite that we feel very comfortable competing in that sort of environment and so as we look to invest you can look at the cash tax profile changes that sort of dictates in terms of return profiles around investment I would tell you it strengthens strengthens the case.

As Mike mentioned, integration of nitel is well underway and adding capabilities of aggregation. Um, you know, in the US and and further, um, the the network aggregate aggregation expanding sales channels broadening the product portfolio in particular, you know, Advanced security. Uh, and then, as you mentioned mobile, so mobile is Brian, mentioned the relationship, we got a great 1 with Verizon on resi, is a really important 1 with T-Mobile and business. So it's, it's early. Stage comes at a really good time for us to Kickstart a higher gear for our business services team and including mobile big part of how they compete. So more to come on that,

On the infrastructure side, so I would look for us to continue to be very aggressive in building out new homes, very aggressive and infrastructure investments to support the Genesis investment around mid splits DOCSIS four O and how quickly we upgrade the network. So I think as I said in my prepared remarks, any incremental cash will fit into our traditional framework, which is in number.

One investing in our businesses and on the infrastructure side. This new legislation is a tailwind to that on the park side I think as we've articulated before you've called it right in your research, we get a little bit of a break here post epic. So obviously, we had substantial investments gone to epic that was a big new launch.

It will trail down off of that for call. It a couple of years, we'd still have obviously a lot of investment going on in parks, including the smaller parks, we've talked about that will sort of fill a little bit of the void, but nonetheless will trend down for a couple of years and then we will ramp back up as we approach the park in London, but I look for that to be in a couple of years from now.

Homes though, it is against a framework that the the competition of the future will involve 2, wires coming into the vast majority of the territory that we serve. In addition to fixed Wireless having carved out a more permanent niche in the market.

Thanks, John and thank you all for joining us this morning.

Thank you that does conclude today's conference call a replay of the call will be available today, starting at 11 30, a M. Eastern time on Comcast Investor Relations website. Thank you for participating you may all disconnect.

Despite that, you know, we feel very comfortable competing in that sort of environment. And so as we look to invest, uh, you know, you can you look at the cash tax profile? The, the changes that sort of dictates in terms of return profiles around investment. I would tell you

it strengthens strengthens the case, uh, you know, on the infrastructure side. So I would look for us to continue to be very aggressive. Uh, in building out new homes, very aggressive and infrastructure Investments to support the Genesis investment around mid splits, DOCSIS 40 and how quickly we upgrade the networks, I think, as I said in my prepared remarks,

Any incremental cash will fit into our traditional framework uh, which is in number 1 investing in our businesses and on the infrastructure side, this new legislation is a Tailwind to that on the park side. Uh, you know, I think as we've articulated before you you've called it, right? And you research, we get a little bit of a break here. Post epic. Uh, so obviously we had substantial Investments going to Epic. That was a big new launch. Um we'll we'll Trail down off of that for, you know, call it a couple years. Uh, we still have obviously a lot of investment going on in Parks including the smaller Parks. We've talked about that'll sort of fill a little bit of the Void but nonetheless we'll Trend down for a couple of years and then we'll ramp back up as we approach the park in London, but I'd look for, you know, that to be a couple years from now.

Thanks, John, and thank you all for joining us this morning.

Thank you. That does conclude today's conference call a repay of the call will be available today. Starting at 11:30 a.m. eastern time, on Comcast investor relations website, thank you for participating. You may all disconnect

Mhm.