Q3 2025 Comcast Corp Earnings Call
I will now turn the call over to executive Vice President of Investor Relations. Mr. <unk>. Please go ahead Mr. <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, and which contains our safe Harbor disclaimer. This conference call.
<unk> may include forward looking statements subject to certain risks and uncertainties. In addition, during this call we will refer to certain non-GAAP financial measures. Please see our 8-K and trending schedules issued earlier. This morning for the reconciliations of these non-GAAP financial measures to GAAP with that I'll turn the call over to Mike.
Good morning, everyone and thanks for joining us.
I'll start with the leadership news, we announced earlier this morning, which Steve Croney will be elevated to CEO of our connectivity and platforms business at the beginning of 2026.
And at that time, Dave Watson will become Vice Chairman of Comcast Corporation.
This will be a well earned and seamless transition for Steve who has already made a significant impact as chief operating officer, leading the operational transformation of our CMP business over the past year.
He has the full trust and confidence of our entire management team and he is exactly the right person to take the business forward.
And I want to congratulate and thank Dave for his extraordinary leadership of the business for the past eight years.
Over more than three decades, Dave has been an integral part of building the best connectivity business in the industry.
The fact that Steve comes from inside the company also speaks to how thoughtfully Dave is develop the leaders in this organization and I really look forward to continuing to partner with you Dave in your new role as Vice Chairman.
Brian will have more to say about this leadership transition later in the call, but now let me get into the quarter.
I have two topics to discuss convergence and sports.
So starting with convergence.
The broadband environment remains intensely competitive, which we do not expect to change anytime soon.
Over time, though we believe that the vast majority of the broadband market will be comprised of two multi gig symmetrical providers serving most addresses.
And we aim to be a winner in this segment.
With the rest of the market likely being served by capacity limited alternatives.
We've been seeing this end state begin to take shape.
<unk> expansion continues at a steady pace and as we've said before we expect most of our footprint will eventually be overbuilt.
At the same time fixed wireless remains a durable competitor serving price sensitive segments with moderate performance needs.
Against this backdrop, we have adapted our approach to compete more effectively for the long term.
Our strategy rests on three pillars.
Network <unk>.
<unk> and customer experience.
Our network is built to scale and now leverages, AI and to and to optimize performance throughout the home.
This enables best in class Wi Fi, which matters more than ever as usage continues to rise.
We're seeing this on our network, where broadband only customers averaged 800 gigs a month in the third quarter up 9% year over year.
And product broadband wireless and our entertainment OS operate as one system integrated and designed for how customers actually connect.
Working together or individually they deliver a seamless experience that differentiates us in the marketplace.
And finally and customer experience, where we need to improve over the long term.
Our near term focus is on price transparency and in making it easier to do business with us.
With respect to these pillars, we've made meaningful progress in the quarter.
First we streamlined our organizational structure to better align with our strategy.
David centralized key functions, such as marketing data science and customer experience and reduced management layers to sharpen local execution.
Second we're pressing ahead on Wi Fi and area, where we're already recognized as a market leader.
Strong consistent Wi Fi remains the number one factor driving customer choice.
And this is where we excel.
Open signal recently ranked <unk> the top provider in our footprint outperforming Verizon T mobile and AT&T and reliability download speeds and streaming.
This leadership comes from the technology behind our network, especially our gateways, which power the strength and consistency of the Wi Fi experience.
During the third quarter, we began rolling out our most powerful gateway yet the X P 10, supporting multi gig symmetrical speeds and up to 300 devices.
Using AI to self optimizing network performance in real time.
With our new National pricing gateways are included in every package, ensuring every customer receives our best technology and an integrated experience with mobile.
Third we have accelerated momentum in wireless now, reaching more than 14% penetration of our broadband base.
Adding over 400000 lines in the quarter, our best result, yet.
<unk> mobile is a standout growth engine for us.
We're leaning in with sharper marketing stronger brand awareness and compelling offers like our free mobile line for one year.
This was also the first full quarter of our new premium unlimited plan.
Designed for higher value customers that delivers what they want at $40 per line on a two line plant and the ability to upgrade devices twice a year with a guaranteed discount on a new phone.
Second, we're pressing ahead on Wi-Fi, an area where we are already recognized as a market leader.
Strong consistent Wi-Fi Remains the number 1 Factor. Driving customer choice and this is where we Excel.
Our progress in mobile, it's clear with meaningful product uptake higher attachment rates across our broadband base and growing recognition of <unk> mobile as the leader in value and performance.
Open signal recently. Ranked Xfinity, the top provider in our footprint, outperforming Verizon T-Mobile and AT&T and reliability, download speeds and streaming.
Forests video performance improved meaningfully this quarter with subscriber losses down more than 100000 year over year, which is our best result in nearly five years.
This leadership comes from the technology behind our Network especially our gateways, which power the strength and consistency of the Wi-Fi experience.
Churn is at record lows supported by our focus on delivering the right products for each customer segment.
Our entertainment OS continues to lead the market enhanced by features like multi view, which allows our customers to view several live events simultaneously.
During the third quarter, we began rolling out our most powerful Gateway. Yet the xb10 supporting multigig symmetrical speeds and up to 300 devices. Using AI to self optimize Network performance in real time.
Yes, we introduced a simpler more transparent pricing model.
With our new national pricing, gateways are included in every package, ensuring every customer receives our best technology and an integrated experience with mobile.
As we detailed last quarter, we've moved to nationwide offers built around four clear speed tiers.
Third, we've accelerated momentum and Wireless.
Each plan includes our gateway unlimited data Wi Fi controls and cyber protection at a lower everyday price backed by a one or five year price guarantee.
Now reaching more than 14% penetration of our Broadband base and adding over 400,000 lines in the quarter, our best result yet.
Xfinity, mobile is a standout growth engine for us.
It's a more predictable experience for the customer and a clearer value proposition in the market.
We're leaning in with sharper marketing.
Stronger, brand awareness and compelling offers like a free mobile line for 1 year.
And finally, we're taking meaningful steps to simplify the customer experience across all channels.
Our new AI engine now supports agents technicians and customers through assisted chat.
<unk>, our website and our AI enabled extended the assistant platform.
This was also the First full quarter of our new premium, Unlimited Plan designed for higher value. Customers that delivers what they want at $40 per line on a 2-line plan. And the ability to upgrade devices twice a year with a guaranteed discount, on a new phone.
We also launched a program that connects customers to a live agent in seconds, which is now available to half of our customer base.
It's still early but we're moving fast and executing with focus towards a simpler smarter and more seamless customer experience.
Our progress in Mobile is clear with meaningful product. Uptake, higher attachment rates across our Broadband base and growing recognition of Xfinity mobile as a leader in value and performance.
So taken together these efforts mark tangible progress in what is an important shift to position our connectivity business for future sustained growth.
Fourth video performance improved meaningfully this quarter with subscriber losses down more than 100,000 year-over-year, which is our best result in nearly 5 years.
This is a deliberate investment phase.
Churn is at record lows supported by our focus on delivering the right products for each customer segment.
One that will take time and carrier costs as reflected in the three 7% decline in connectivity and platforms EBITDA this quarter.
Our entertainment OS continues to lead the market and is enhanced by features like Multi View, which allows our customers to view several live events simultaneously.
And we expect this decline to build slightly over the next several quarters as we continue to invest in pricing product and customer experience.
Yes, we introduced a simpler more transparent pricing model.
And my second topic is sports.
as we detailed last quarter, we've moved to Nationwide offers built around 4 clear speed tiers,
Last week's NBA tip off Mark the start of one of the biggest stretches of live sports and our history and drew the largest audience for an NBA opening doubleheader since 2010.
Each plan includes our Gateway unlimited data Wi-Fi controls and cyber protection at a lower everyday price. Backed by a 1 or 5 year price guarantee.
We're in the heart of the NFL and college football seasons and in February we will have the Super Bowl Winter Olympics.
It's a more predictable experience for the customer and a clearer value proposition in the market.
And NBA all star weekend.
Followed by the World Cup on Telemundo in June.
And finally, we're taking meaningful steps to simplify the customer experience across all channels.
Sports remains a cornerstone of our media business the.
The NBA has returned to NBC and now Peacock expands both our reach and our creative opportunities.
Our new AI engine now supports agents, technicians, and customers through assisted chat.
Sunday Night basketball launches in February modeled after the success of Sunday Night football, which has been the number one primetime show for 14 straight years, and now averages roughly 25 million viewers.
Phone our website and our AI enabled Xfinity assistant platform.
We also launched a program that connects customers to a live agent in seconds, which is now available to half of our customer base.
We're proud of the sports portfolio, we built.
Each property adds value across our entire immediate ecosystem driving nbc's distribution.
It's still early but we're moving fast and executing with Focus towards a simpler smarter and more seamless customer experience.
Helping peacock attract and retain subscribers and powering our advertising business.
And as audiences continue to shift from linear and streaming the multiple benefits of sports becomes an even greater advantage.
Growth.
This is a deliberate investment phase.
Live sports continued to deliver strong viewership and AD performance across broadcast and streaming.
1, that will take time and carry a cost as reflected in the 3.7% decline in connectivity and platforms ebitda this quarter.
Momentum at Peacock remains solid and retention has held steady even after our $3 price increase.
Running linear and streaming as one integrated media business gives us real scale and flexibility.
And we expect this decline to build slightly over the next several quarters. As we continue to invest in pricing product and customer experience.
And my second topic is sports.
It allows us to align programming marketing promotion and monetization across NBC Peacock and our studios.
And as we near completion of the <unk> spin NBC Universal's media business will be more focused and well positioned to grow.
Last week's NBA tip off marked the start of 1 of the biggest stretches of live sports in our history and Drew the largest audience for an NBA opening double header since 2010.
So now let me turn it over to Jason to go over the third quarter results in more detail.
we're in the heart of the NFL and college, football seasons and in February, we'll have the Super Bowl, Winter Olympics,
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.
and NBA All-Star Weekend, followed by the World Cup on tundo, in June,
Sports remains a Cornerstone of our media business.
Total company revenue declined about 3% year over year, primarily due to the tough comparison to last year's Paris Olympics.
The NBA's return to NBC and now peacock, expands both our reach and our creative opportunities.
Excluding that impact revenue increased nearly 3% driven by strong performance across our six growth businesses highlighted by nearly 20% growth in theme parks and 14% growth in domestic wireless.
Sunday night basketball, launches in February modeled after the success of Sunday Night Football, which has been the number 1 Prime Time, show for 14 straight years and now averages roughly, 25 million viewers.
EBITDA and adjusted EPS were both consistent with last year, while free cash flow increased 45% to $4 9 billion.
We're proud of the sports portfolio. We built
We returned $2 8 billion to shareholders this quarter, including $1 5 billion in share repurchases and $1 2 billion in dividends, reflecting our ongoing commitment to disciplined capital allocation.
Property adds value across our entire immediate ecosystem driving, NBC's distribution.
Helping Peacock attract and retain subscribers and powering our advertising business.
Now turning to our businesses, starting with connectivity and platforms the.
And as audiences continue to shift from linear to streaming the multiple benefits of sports becomes an even greater advantage.
The competitive environment for broadband remains intense as.
As we've highlighted we've made a significant pivot in our go to market strategy. This year.
Live sports continue to deliver strong viewership, and AD performance across broadcast and streaming.
Focused on simplifying pricing, improving transparency and enhancing the customer experience.
While it's still early we're encouraged by what we're seeing in our broadband customer base continued stabilization in voluntary churn a healthy mix of customers opting into our five year price guarantee and nearly 40% of new connects choosing gig plus speeds, which is up about 10 points from the start of the year.
Momentum at peacock remains solid and retention has held steady even after our 3 price increase.
Running linear and streaming is one integrated media business.
Gives us real scale and flexibility.
It allows us to align programming marketing promotion and monetization across NBC Peacock and our Studio's.
We're also seeing higher utilization of our new packaging, including new everyday pricing and retention, helping transition more of the base into simplified market based plans and we continue to accelerate our wireless net additions this quarter to a new record high.
And as we near completion of the verse and spin NBC, Universal's media business will be more focused and well positioned to grow.
So now let me turn it over to Jason to go over the third quarter results in more detail.
As we've said from the beginning this pivot carries several costs, including REIT reinvestment through pricing simplicity, which carries revenue dilution as well as investment in customer experience, which carries additional operating costs.
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.
This quarter is the first quarter, where these impacts are reflected in our financial results.
Total company Revenue declined about 3% year-over-year primarily due to the tough comparison to last year's Paris Olympics.
In broadband <unk> growth solution as well as elevated marketing product and customer service expense all contributing to a three 7% decline in EBITDA this quarter.
Excluding that impact Revenue, increased nearly 3% driven by strong performance across our 6 growth businesses, highlighted by, nearly 20% growth in theme parks and 14% growth in domestic Wireless.
As Mike mentioned as these investments continue we expect continued EBITDA pressure over the next several quarters until we lap this transition.
ebita and adjusted EPS were both consistent with last year, while free cash flow increased, 45% to 4.9 billion,
On the other side of this we're positioning ourselves for growth with a more durable broadband customer base on stable market based rate plans combined with a larger wireless base. It gives us a very strong hand in convergence along with meaningful monetization upside as customers roll off promotions and we expand the relationship over time.
We returned 2.8 billion to shareholders. This quarter, including 1.5 billion in share, repurchases, and 1.2 billion. In dividends reflecting our ongoing commitment to disciplined Capital allocation.
Now, turning to our businesses, starting with the connectivity and platforms.
The competitive environment for Broadband remains intense.
All in our converged product offerings provide customers with substantial savings versus comparable plans from telecom competitors.
As we've highlighted, we've made a significant pivot in our go to market strategy this year.
Now, let me get into some further details of the quarter.
Focused on simplifying pricing, improving transparency and enhancing the customer experience.
<unk> subscribers declined 104000 in the quarter, we saw the typical seasonal benefit from back to school activity as well as the early traction from our new go to market initiatives, but this was more than offset by the continued intense competitive environment.
The rollout of our new everyday pricing structure at the end of June combined with the success of our free wireless line offer caused a deceleration in our broadband <unk> growth, resulting in two 6% growth this quarter.
Well, it's still early, we're seeing in our Broadband, customer base continued stabilization in voluntary, churn, a healthy mix of customers, opting into our 5-year, price guarantee and nearly 40% of new connects choosing gig plus speeds, which is up about 10 points from the start of the year.
As we continue to transition customers to more consistent pricing and ramp up free wireless line additions, we expect ARPA growth to step down more than a point in the fourth quarter and we expect continued pressure on our <unk> in early 2026 as our current plan is to not take a rate increase in broadband in the early part of next year.
We're also seeing higher utilization of our new packaging, including new everyday, pricing in retention, helping transition more of the base into simplified market-based plans and we continue to accelerate our wireless net additions, this quarter to a new record high.
As we've said from the beginning, this pivot carries several costs including rate reinvestment through pricing Simplicity which carries Revenue dilution as well as investment in customer experience which carries additional operating costs.
As we've said this pivot we are making will take time, but it sets the foundation for a far more stable broadband base in a more challenging competitive environment and we're confident we're on the right path.
This quarter is the first quarter where these impacts are reflected in our financial results.
And while we invest to stabilize broadband wireless is our core growth engine on that node convergence revenue grew two 5% supported by mid teens growth in wireless.
We see it in Broadband. Rpu growth solution, as well as elevated, marketing product, and customer service expense, all contributing to a 3.7% decline in Iva dot this quarter.
Mike mentioned as these Investments continue, we expect continued ebit da pressure over the next several quarters until we lap this transition.
Wireless net additions hit a new record at 414000 and nearly half of our residential postpaid phone connects came from customers, taking a free line, which is a great way to bring new customers into the ecosystem.
At the same time, we saw strong uptake in our new premium unlimited plans enhancing our position in the high value postpaid market.
On the other side of this, we're positioning ourselves for growth with a more durable Broadband customer base on stable, market-based, rate plans combined with a larger wireless base that gives us a very strong hand and convergence along with meaningful monetization upside as customers, roll off promotions, and we expand the relationship over time.
Our total wireless lines are now approaching $9 million with penetration of our broadband base, surpassing 14% and we're pleased with the momentum in wireless net additions.
All in our converge product offerings, provide customers with substantial savings versus comparable. Plans from Telecom competitors.
Now, let me get into some further details of the quarter.
Looking ahead in the second half of next year. Many of the free lines will come up for monetization. Our intention is to convert the majority to paying relationships, which should provide a significant tailwind to convergence revenue growth at that point.
Broadband, subscribers, decline 104,000 in the quarter.
Turning to business services consistent with prior quarters revenue was up 6% and EBITDA grew by nearly 5% in the quarter.
We saw the typical seasonal benefit from back to school activity as well as the early traction from our new go to market initiatives, but this was more than offset by the continued intense competitive environment.
In the SMB segment, we're seeing elevated competition, particularly from fixed wireless <unk>.
The rollout of our new everyday pricing structure at the end of June combined, with the success of our free wireless line offer caused a deceleration in our Broadband. Rpu growth, resulting in 2.6% growth, this quarter
Despite this we still delivered modest revenue growth by driving <unk> higher through increased adoption of our advanced services like cyber security cloud solutions, and Comcast business mobile, where we're seeing real momentum is in our enterprise solutions, which continues to be a key growth driver. These customers have more complex needs and we're leaning in to deepen relationships.
As we continue to transition customers to more consistent pricing and ramp up free wireless line additions. We expect our poo growth to step down more than a point in the fourth quarter. And we expect continued pressure on our Pooh in early 2026. As our current plan, is to not take a rate increase in Broadband, in the early part of next year.
And expand our advanced solutions mix. It is a segment, where we're investing and we expect continued strong growth.
And content and experiences there are a few items I'd like to highlight.
As we've said this pivot we are making will take time. But it sets the foundation for a far more stable Broadband base in a more challenged competitive environment and we're confident we're on the right path.
At parks, we delivered another strong quarter with revenue up 19% and EBITDA growth of 13% benefiting from the first full quarter of epic universe.
And while we invest to stabilize Broadband, Wireless is our core growth engine.
On that note, convergence Revenue, grew 2.5% supported by mid teens growth in Wireless.
We're really pleased with the early results from epic, which are driving higher per cap spending and attendance across the entirety of universal Orlando.
We remain focused on expanding ride throughput as we build to run rate capacity and expect ethic to continue scaling over the next year with higher attendance stronger per caps and improved operating leverage.
Wireless net additions. Hit a new record at 414,000 and nearly half of our residential postpaid. Phone connects came from customers taking a free line, which is a great way to bring new customers into the ecosystem.
At studios, we had solid theatrical results led by the strong performance of Jurassic World Rebirth early in the quarter, which is gross nearly $900 million in worldwide box office and pushed the franchise's cumulative total to $7 billion.
At the same time, we saw strong uptake in our new, premium unlimited plans enhancing our position in the high-value postpaid market.
Our total Wireless lines are now approaching 9 million with penetration of our broadband-based surpassing 14%, and we're pleased with the momentum in Wireless net additions.
While this success contributed to topline growth studios EBITDA was impacted by higher marketing spend tied to our larger film slate. This year. Looking ahead, we're excited for a strong fourth quarter slate, including the highly anticipated release of Wicked for good on November 21.
Looking ahead in the second half of next year, many of the free lines will come up for monetization. Our intention is to convert the majority to paying relationships which should provide a significant Tailwind to convergence Revenue growth at that point.
In media, excluding the comparison to last year's Paris Olympics, which generated $1 9 billion in incremental revenue.
Turning to Business Services consistent with prior quarters Revenue was up 6% and Evita grew by nearly 5% in the quarter.
Revenue increased a healthy 4% and on the same basis Peacock revenue grew at a mid teens rate driven by strength in both advertising and distribution.
In the SMB segment we're seeing elevated competition. Particularly from fixed Wireless.
Advertising was up two 6% our best result year to date fueled by sports with the strong return of Sunday Night football in fact, our 20th season is our highest grossing season to date.
Distribution revenue grew one 5% supported by 25% growth at Peacock.
Despite this we still delivered modest Revenue growth by driving arpu, higher through increased adoption of our Advanced Services, like cyber security Cloud Solutions and Comcast business mobile where we're seeing real momentum is in our Enterprise Solutions which continues to be a key growth driver. These customers have more complex needs and we're leaning in to deepen relationships and expand our Advanced Solutions, mix. It's a segment where we're investing and we expect continued strong growth.
Overall media EBITDA increased 28% driven by nearly $220 million year over year improvement in Peacock losses, which landed at a loss of just over $200 million in the quarter Peacock subscribers were flat. This quarter is the strength of our content slate late in the quarter as well as our strategic distribution initiatives offset the impact of <unk>.
In content and experiences. There are a few items I'd like to highlight
At parks, we delivered, another strong quarter with Revenue up, 19% and Evita growth of 13% benefiting from the First full quarter of Epic universe.
Churn from our in quarter $3 rate hike looking ahead. The NBA just premiered on NBC and Peacock last week and is off to a great start while we expect a positive impact on advertising and distribution revenue. It also introduces a new expense.
We're really pleased with the early results from epic which are driving higher per cap spending and attendance across the entirety of Universal Orlando.
we remain focused on expanding ride, throughput as we build to run rate capacity and expect epic to continue scaling over the next year with higher attendance stronger per caps, and improved operating Leverage
As we've said we will straight line the amortization of these sports rights, which will create some upfront dilution, particularly in the first season with the game counts driving quarterly realization of this expense, but over time, we will offset this through advertising growth. Our recent record upfront tied to sports, including the NBA is a good indicator and through subscriber.
At Studios, we had solid theatrical results led by the strong performance of Jurassic world rebirth early in the quarter, which has grossed nearly 900 million in worldwide box office and pushed the franchise's cumulative, total to 7 billion.
<unk> and monetization across both linear and Peacock, we also expect to optimize NBC universal programming investment across sports Entertainment and news.
While this success contributed to Topline growth Studios, Eva was impacted by higher marketing, spend tied to our larger film slate this year. Looking ahead, we're excited for a strong fourth quarter slate, including the highly. Anticipated release of wicked for good on November 21st.
Now I'll wrap up with free cash flow and capital allocation as I mentioned earlier, we generated $4 9 billion of free cash flow this quarter up significantly year over year and year to date, we have generated $14 9 billion in free cash flow.
In media, excluding the comparison to last year's Paris Olympics, which generated $1.9 billion in incremental revenue.
The increase in the quarter was driven by a tailwind and cash taxes from the new legislation along with favorable working capital timing, particularly around studio production spend and the comparison to the Olympics.
Revenue increased a healthy 4%, and on the same basis, Peacock revenue grew at a mid-teens rate, driven by strength in both advertising and distribution.
These benefits were partially offset by higher organic investment with total capital expenditures of $3 $1 billion. This quarter, reflecting increased spending in connectivity and platforms, where we're investing to pass more homes to strengthen our broadband network and to deploy our market leading gateways into homes at a faster rate our gateway is now.
In fact, our 20th, season is our highest grossing season to date.
Distribution revenue grew 1.5%, supported by 25% growth at Peacock.
Overall media ebita increased, 28% driven by nearly 220 million year-over-year Improvement in peacock losses.
Alluded in our broadband offers which is a key part of our product strategy.
On the content and experiences side capital spending declined as we're past the construction on epic that elevated capital spending last year.
Through our investments and our significant pivot in broadband we have maintained a healthy balance sheet ending the quarter with net leverage at two three times. We also returned $2 $8 billion to shareholders, including over $1 5 billion in share repurchases contributing to a mid single digit year over year decline in our share count.
Which landed at a loss of just over 200 million in the quarter. Peacock subscribers were flat this quarter as the strength of our content, slate late in the quarter as well as our strategic distribution initiative, offset the impact of additional churn from our Inquirer, $3 rate, hike looking ahead. The MBA just premiered on NBC and peacock last week and is off to a great start. What we expect a positive impact on advertising and distribution Revenue, it also introduces a new expense.
As we look ahead to next year, our capital allocation strategy remains unchanged our priorities are to invest organically in our growth businesses.
A strong balance sheet and return capital to shareholders.
That formula has served us well and it will continue to guide our approach at the same time, we will stay disciplined and balanced as we move through this transition.
As we've said, we'll straight line the amortization of these Sports rights, which will create some upfront dilution particularly in the first season with the game counts. Driving quarterly realization of this expense but over time, we'll offset this through advertising growth, our recent record upfront, tied to sports, including the MBA is a good indicator and through subscriber acquisition and monetization across both linear and peacock.
We do have some near term headwinds, namely the EBITDA impact from our broadband repositioning the onboarding of the NBA rights and the spinoff of <unk> and its associated EBITDA and free cash flow.
We also expect to optimize MBC Universal programming investment across Sports, entertainment and news.
For those reasons, we reduced our quarterly buyback pacing of touch to $1 5 billion in the quarter I point out. This remains one of the strongest absolute and percentage of buybacks and our broader peer group at the same time, our healthy dividend offers a yield theres multiple times the yield of the broader market. So we believe we are balancing strong returns back to shareholders.
Now, I'll wrap up with free cash flow and capital allocation. As I mentioned earlier, we generated 4.9 billion of free cash flow. This quarter up significantly year-over-year and year-to-date. We have generated 14.9 billion in free cash flow
the increase in the quarter was driven by a Tailwind in cash taxes, from the new legislation, along with favorable working capital timing, particularly around studio production, spend and the comparison to the Olympics
Significant reinvestment in our business and doing so in the context of our balance sheet that provides cushion through any operating or macroeconomic environment.
With that let me turn it over to Brian for a few remarks.
Thanks, Jason Mike as you referenced a moment ago I want to talk about our recent leadership announcements.
Let's start with you Mike I could not be more thrilled to have you become our co CEO.
These benefits were partially offset by higher organic investment, with total Capital, expenditures of 3.1 billion. This quarter reflecting increased spending and connectivity and platforms where we're investing to pass. More homes to strengthen our Broadband network and to deploy our Market leading gateways into Homes, at a faster rate. Our Gateway is now included in our Broadband offers which is a key part of our product strategy.
Working side by side for over a decade, you are an incredible partner and now, especially as we manage the pivot we're making to meet the moment.
On the content and experiences side, capital spending declined as we're past the construction on Epic that elevated capital spending last year.
And all of our businesses that you just laid out so well you are critical to navigating our plan to achieve sustainable growth for the future.
Through our investments and our significant pivot and Broadband. We have maintained a healthy balance sheet, ending the quarter with net leverage at 2.3 times.
I'm also very excited and proud for you Dave to become Vice chair working with me Steve and.
We also returned 2.8 billion to shareholders. Including over 1.5 billion in share repurchases contributing to a mid single digit year-over-year decline in our share count.
All the others on the strategic initiatives as we look forward, but as I step back and think about Comcast culture doing the right thing carrying about people building something truly unique so much of that started with my dad, but it's actually been brought to life for decades now by you Dave So on behalf of <unk>.
As we look ahead to next year, our Capital allocation strategy remains unchanged, our priorities are to invest organically in our growth businesses. Maintain a strong balance sheet and return Capital to shareholders.
The formula has served us well and it will continue to guide our Approach. At the same time, we'll stay disciplined and balanced as we move through this transition.
Thousands and thousands of employees a huge thank you.
And Steve who is sitting right here are not going to speak today, we're going to start him next quarter.
We do have some near-term headwinds, namely the IBA impact from our broadband repositioning, the onboarding of MBA rights, and the spin-off of Versen and its associated EBITDA and free cash flow.
You have been often running from day, one when you became COO just under a year ago.
All of the changes you're hearing about and have seen in our pricing packaging customer experience and infusing AI across the connectivity businesses have been driven really by Steve and his energized team.
Were clearly at an inflection point in the industry and transformational moment in our company.
For those reasons, we reduced our quarterly buyback pacing. A touch to 1.5 billion in the quarter. I point out that this remains 1 of the strongest, absolute and percentage Buybacks in our broader peer group. At the same time, our healthy dividend offers a yield that is multiple times the yield of the broader market. So we believe we are balancing strong returns back to shareholders with significant reinvestment in our business and doing so in the context of a balance sheet that provides cushion through any operating or macroeconomic environment.
And we now have a leadership team.
With that, let me turn it over to Brian for a few remarks.
Adding on to the great successes of the past that's leaning in to change and action is all the plants you just heard about and we're excited about the future.
Thanks, Jason. Mike as you referenced a moment ago. I want to talk about our recent leadership announcements.
So before we get to Q&A, Mike back to you for one last word hey, Thanks, Bryan I truly appreciate the confidence that you and the board have in me and I couldnt be more excited to become co CEO such interesting times in our industries.
Let's start with you, Mike. I could not be more thrilled to have you become our Co-CEO.
Working side by side. For over a decade, you're incredible partner. And now, especially as we manage the pivot, we're making to meet the moment.
And I think I can speak for the next wave of leaders leaders across the company are very eager to meet these challenges and.
In all of our businesses that you just laid out so well, you are critical to navigating our plan to achieve sustainable growth for the future.
And we're very confident I'm very confident that we will drive value over the next several years on the back of the strength of our people our business assets and the strategies that we already have in flight and we'll make whatever adjustments need to be made but couldnt feel more excited and more confident so with that I look forward to diving into your questions and back to you Marci.
I'm also very excited and proud for you, Dave to become Vice chair. Working with me. Steve and
Operator, let's open the call for Q&A. Please.
All the others on the Strategic initiatives as we look forward. But as I step back and think about Comcast culture doing the right thing, caring about people, building, something truly unique,
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.
So much of that started with my dad but has actually been brought to life for decades Now by you Dave.
So on behalf of thousands and thousands of employees, a huge, thank you.
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You have been often running from day 1 when you became coo just under a year ago.
Our first question today is coming from Michael Rollins from Citibank. Your line is now live.
Thanks, and good morning, Congratulations Mike on being named CEO in becoming Vice chair.
All of the changes you're hearing about and have seen in our pricing packaging customer experience and infusing AI across the connectivity. Businesses have been driven really by Steve and his energized team.
Just a couple of questions. So first on your broadband just curious if you could share some more.
More context around.
We're clearly at an inflection point in the industry and transformational moment in our company.
The evolution of art to what Youre seeing in terms of customers migrating to the new plan.
And we now have a leadership team adding on to the great successes of the past that's leaning in to change.
And the opportunity to.
And action. All the plans you just heard about, and we're excited about the future.
Feel better retention, but the cost of that coming through on the revenue side.
And then on converging you referenced the 2.5% growth in the quarter as you continue to market the new slate of offers and promotions.
Theyre in anticipation that this rate of growth should improve over time.
Hey, Mike This is Dave So let me if I could just take a quick moment.
So before we get to Q&A mic back to you for 1 last word. Hey, thanks Brian. Um, I truly appreciate the confidence that you and the board have in me. And I couldn't be more excited to become co-ceo at such interesting times in our Industries. And I know that I and I think I can speak for the next wave of leaders leaders across the company are very eager uh, to meet these challenges.
On it.
I appreciate your comments that Mike and I, and Steve, but I do want to.
Just take a brief moment to say what an incredible privilege. It's been to help to lead this team and this business working alongside Brian Mike Jason an entire management team has truly been the highlight of my career.
And we're very confident, I'm very confident that we will drive value over the next several years. On the back of a strength bar people, our business assets and the strategies that we already have in place and we'll make whatever adjustments need to be made but couldn't feel more excited and more confident. So with that I look forward to diving into your questions and back to you Marcy.
Operator, let's open the call for Q&A, please.
Very proud of the progress that we've made Bryan touched on some of that but we're.
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We've built a world class network and the products.
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Set the industry standard and leaning in with new businesses, and wireless and Comcast business, which continue to create real momentum.
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I'm optimistic about the future. There is so much opportunity ahead, as we bring our broadband wireless and entertainment products together and we will continue to innovate and that's why I'm. So confident in Steve It's Brian said, Steve and his team are leading these big changes that we're rolling out Steve.
Our first question today is coming from Michael Rollins from City Bank. Your line is now live
He's an exceptional leader thoughtful decisive and focused on innovation customer experience and execution qualities that will position us for success in the years ahead.
Thanks and good morning. Um, congratulations Mike on being named Co and Dave, becoming Vice chair. Um, just a couple questions. So first on broadband, just curious, if you could share some more context, um, around
Want to thank our teams across Comcast for their relentless focus and hard work every day, it's been an extraordinary journey and I look forward to whats ahead for all of US. So speaking of what's ahead. Let me answer your question on the revenue side on <unk>, and then hand, it over to Jason to talk a little bit about convergence. So.
Given the investments we're making.
The evolution of R2, and what you're seeing in terms of customers migrating to the new plans and the opportunities to, um, build better retention. But the cost of that coming through on the revenue side and then on, um, convergence, you know, you reference the 2 and a half percent growth in the quarter as you continue to market. The, new slate of offers and promotions. Is there an anticipation that this rate of growth should improve over time? Thanks.
We said, it's unlikely that we will be able to grow our <unk> in 2026, especially in the early part of the year, but.
Part of it is to your question Mike.
We're going to be very active and we are active migrating customers to the new pricing and packaging.
Hey Mike. Uh, this is Dave. Uh, so let me if I could just take a, a quick moment. Uh, on a, uh, I appreciate your, your comments and Mike and I and Steve, but I do want to
With lower Edp's and all in approach and of course, you know all eligible for free that free mobile line, so as Jason said.
You talked about the timing in Q4 and the current plan is to not take a rate increase in broadband in the early part of the year, but we're real confident that we can get back to ARPA growth.
take a brief moment to say what an incredible privilege. It's been to help to lead this team and this business working alongside Brian. Mike Jason an entire management team is truly been the highlight of my career
We migrate through and manage through the transition. So we are very focused on the tier mix and the higher packages. So we are being deliberate and focused to the base on how we're going to the customers and through multiple ways and most certainly as you brought out rich.
Tension is a key one.
And so.
Tons of value that we are we have with the free mobile line and the all in approach that we have in the lower Edp's in Q3, nearly half of our <unk> postpaid phone connects were free lines. So it's working sort through the phone results and it gives us longer term growth potential as these.
Migrate off and convert later on next year so.
Very proud of the progress that that we've made Brian touched on some of that. But we we built a world-class Network and the products that set the industry standard and leaning in with new, uh, businesses and wireless, and Comcast business, which continue to create real momentum. I'm optimistic about the future. There's so much opportunity ahead as we bring our Broadband Wireless and entertainment products together, and we'll continue to innovate and that's why I'm so confident in Steve. It's Brian. Said, yeah, Steve, and his team are leading these big changes that we're rolling out. Steve's an exceptional leader, thoughtful decisive and focused on Innovation the customer experience and execution qualities that will position us for success. In the years ahead, I want to thank our teams across Comcast for their Relentless focus and hard work every day. It's been an extraordinary journey and I look forward to what's ahead for
We're very focused to the base.
And we will not be hesitant to move customers to these new packages and we will take every appropriate opportunity to do that no specifics in terms of the actual migration amounts but.
For all of us. So, speaking of what's ahead, let me answer your question on the, uh, Revenue side on arpu and then hand it over to Jason to talk a little bit about convergence. So,
Our focus is long term revenue growth, that's sustaining and continuing to work on the competitive landscape in getting customers into these packages. So.
You know given you know the Investments we're making you know is we said it's unlikely that we'll be able to grow our poo in 2026 especially in the early part of the year but part of it is to your question Mike.
That's the overall view in terms of the RP management, Yes, Hey, Mike Let me maybe I'll put those two questions together just to give you as Dave said sort of the broader strategic framework, which is we're in a transition period, we're pivoting, but the mandate here is let's get to the side as quickly as possible and Dave Steve and team are driving.
Towards that so that's the common threat. If you look at the repackaging were doing whether its five year price locks, whether it's free wireless lines, we're seeing good uptake and we're moving the base along as quickly as possible and there is no mandate to slow that down instead, it slipped let's get to the other side and so as you've seen that's going to create a little bit of RP pressure you saw that in the quarter.
So is Jason, you know, said, uh, he talked about the timing in Q4 and the current plan is to not take, you know, a rate increase in Broadband in the early part of the year. But you know, we're real confident that we can get back to our group growth as we migrate through and and managed through the transition. So we are very focused on the tier mix.
You'll see it again next quarter, we're not taking a broadband rate hike at least in the early part of next year. So that will compound the pressure a little bit more saying that we're adding a lot of wireless lines and we're adding pretty wireless lines. If you think about sort of the other side of this vast majority of our base on Super competitive broadband pricing, where were you know a lot more competitive than we used to be and wire.
And the higher packages. So we are being deliberate and focused to the base on how, you know, we're going to the customers and through multiple ways. And most certainly, as you brought out, retention is a key 1.
you know, and so, you know, the tons of value that we are, we have with the free mobile line and the all-in approach that we have and the lower edps
Or less lines more broadly deployed in our base and a bunch of free lines that right now we're diluting <unk>, but we are absorbing the cost for them. We're proud of what we're seeing we're actually seeing but people activating we're seeing them using the lines, which portends I think good things for the activation rates next year and our ability to translate those into paying lines. So what is a headwind right now.
<unk> in the form of wireless to our broadband <unk> becomes a tailwind and so that's what we're setting ourselves up for the other side, but theres going to be some near term headwinds as we said.
And I'll just add.
Long term I completely agree with what Jason said, but this is Mike, but we're encouraged when you look at how fiber pricing broadband pricing is increasing across the industry. That's quite a good backdrop for where we're taking the business over the long term as well as the continued data usage across our networks, which continued to grow.
In q38 nearly half of our resi. Postpaid phone connects were free lines, so it's working you saw through the phone results and it gives us longer term growth potential, as these, you know, migrate off and convert, uh, later on next year. So we we're very focused to the base, um, and will not be hesitant to move the, the customers to uh, these new packages, and we'll take every appropriate opportunity, uh, to do that. No specifics. In terms of the actual, you know, migration, uh amounts but uh, our our focus is long term Revenue growth. That's sustaining
This quarter.
Up 9% year over year, So continued strong growth in the.
The use of the services. So good backdrop for once we get to the other side confidence that we will have a revenue growth in the broadband business.
In the years ahead.
Operator, we're ready for the next question.
Next question today is coming from Michael <unk> from Goldman Sachs. Your line is now live.
Hey, good morning. Thank you for the question I wanted to just ask a little bit more about the <unk>.
Directory of CMP EBITDA next year, we obviously talked a lot about the RP side.
Just on the on the Opex side could you talk a little bit about the investments that you're doing there whether that be in.
CPE sales marketing customer service to support the.
And continuing to work on the competitive landscape and getting customers into these packages. So, um, that's the, you know, the overall view in terms of the, our arpu management. Yeah. Hey Mike, let me maybe I'll put those 2 questions together. Just give you, you know, as Dave said, sort of the broader strategic framework, which is, you know, we're in a transition period, we're pivoting. But the Mandate here is, let's get to the other side as quickly as possible and Dave, Steve and team are driving towards that. So that's the Common Thread. If you look at the repackaging, we're doing whether it's 5 year price locks, whether it's free Wireless lines. You know, we're seeing good uptick and we're moving the base along as quickly as possible and there's no mandate to slow that down instead it's let's get to the other side. And so as you've seen, that's going to create a little bit of our pre pressure. You saw that in the quarter you'll see it again. Next quarter, we're not taking a Broadband rate hike, at least in the early part of next year. So that will compound the pressure a little bit more saying that we're adding a lot of Wireless lines. And we're adding free Wireless lines. So, if you think about sort of the other side of the
So part of the reset here. Thank you very much.
Sure. This is Dave So we've talked about and Jason Mike I sort of talked a little bit about the revenue approach being aggressive deliberate on the.
Getting to new and existing customers, the new packaging and the simple transparent approach that we have so that has an investment attached to it but.
This vast majority of our base on super competitive Broadband pricing where we're, you know, a lot more competitive than we used to be and Wireless lines more broadly deployed in our base and a bunch of free lines that right now are diluting our poo, but we are absorbing the cost for them. We're proud of what we're seeing. We're actually seeing, what? People activating, we're seeing them using the lines, which which pretends, I think good things for the activation rates next year and our ability to translate those into paying lines.
In addition.
We're also focused on making sure.
The media supports the strategy the marketing sales channels everything in your experience in particular is consistent with everything that we're doing so we are investing in sales channels and marketing.
So what is a headwind right now? In the form of Wireless to our Broadband, arpu becomes a tailwind. And so that's we're setting ourselves up for the other side uh but there's going to be some near-term headwinds as we said
And we will see but the biggest impact that.
Where we will experience in terms of timing.
Is.
The things that we've already talked about in terms of free mobile line.
The revenue investments that we're making.
That is.
There is a ton of activity.
But the.
Marketing effort connected within the customer experience improvements, making sure that every tool every aspect of the business is going to continue to improve those are those are things that.
And I'll just add uh you know long term completely agree with what Jason said but this is Mike but we're we're encouraged when you look at how Fiber pricing Broadband pricing is increasing across the industry. That's quite a good backdrop for where we're taking the business over the long term, as well as the continued. Uh, data usage across our networks, which continued to grow, uh, this, this quarter, you know, uh, up up 9% year-over-year. So continued strong growth and, uh, the use of the service. So good. Good backdrop for once. We get to the other side confidence, that we'll have a revenue growth in the Broadband business, uh, in the years ahead.
Operator, we're ready for the next question.
Next question, today is coming from Michael Lane, from Goldman. Sachs providers now live.
Just as important.
And I think along with that just just to round out the question and cost opportunities I think we the team to their credit has been fairly aggressive in cost rationalization, you've seen that more recently with some realignment around divisional structures and cutting out layers in the company. So that continues at pace a lot of that though obviously being reinvested in the pivot, which we think is the appropriate thing to do.
Uh, hey, good morning. Thank you for the question. Um, I wanted to just ask a little bit more about the, uh, trajectory of CNP EBITDA next year. Um, we obviously talked a lot about the RPU side. Um, just on the Opex side, you know, could you talk a little bit about the investments that you're doing there, whether that be in, you know, CPE, sales, marketing, or customer service to support the, um,
Support the reset here. Thank you very much.
Great and then if I could have operator next question. Please.
Thank you next question is coming from Craig Moffett from Moffat Nathanson. Your line is now live.
Hi, Thank you two questions first Dave I, just wanted to say congratulations on a.
Exceptionally successful in long run that as as president of the cable side of the business.
Two questions if I could first I have to ask about all the speculation about Warner brothers discovery. So Brian if you could just share any thoughts about how you think about those assets the complementarity of those assets and whether or not.
Sure, this is Dave. Uh, so we talked about and the Jason, Mike myself talked a little bit about the revenue approach being aggressive, deliberate on the, uh, getting to new and existing customers, the new packaging, and the simple transparent approach that we have, so that that has an investment attached to it. But, uh, you know, in addition
In this political environment M&A of that kind is even possible.
And then on the cable side of the business I Wonder if you could just talk about the.
The transition that Verizon to Dan Schulman, and whether you expect that to have any implications for the relationship you have with Verizon in the <unk>.
Let me, let me kick it over to Mike.
As co CEO to answer those questions but.
And the second one there on Verizon, we wish them, well and we have an important relationship with horizon and we.
We are confident that we will find ways to work together very successfully in the future, but Mike why don't you take that.
Media M&A or M&A generally I mean, I think we've said repeatedly and I'll say it again that the bar is very high for us to pursue any M&A transactions given how strongly we feel about the businesses. We have the strategies, we're pursuing and the opportunities. We have ahead of us.
Is consistent with everything that we're doing. So we are in investing, uh, in sales channels, and in marketing, um, and we'll see. But the biggest impact, you know, that, that, you know, we're we will experience them in terms of timing. Uh, is the, the things that we already talked about in terms of free mobile line. They, uh, the revenue Investments that we're making. Uh, that is it. You know, we there's a ton of activity, uh, but the, uh, the marketing effort connected with it and the customer experience improvements making sure that every tool, every aspect of the business is going to continue to, you know, improve, those are, those are things that uh, are just as important.
So that continues to be an important anchor point for how we think about things.
And I think along with that just just to round out the, you know, the question and, you know, cost opportunities. I think we the team to their credits been fairly aggressive in cost rationalization. You've seen that more recently with some realignment around divisional structures and cutting out layers in the company. So that continues the pace. A lot of that though, obviously being reinvested in the pivot which we think is the appropriate thing to do.
Uh, great. And if I could have operator next question, please.
Second point I'd make is that you should expect us to look at things that are.
Thank you. Next question is coming from Craig Moffat from Moffett Nathanson. Your line is now live.
Trading and are in the space around our industry. So we'd be it's our job to try to figure out if there's ways to add value, but I would point out that with the <unk> spin.
NBC media business up.
Hi. Uh, thank you. Two questions first. Uh, Dave, I just want to say congratulations on an exceptionally, uh, successful and long run as, um, president of, um, the cable side of the business. Um,
Bring peacock on the streaming side with with NBC broadcast.
<unk> seen lots of news lately about subtracting the NBA until the Sheraton and the like over the long term and you put that business alongside one of the finest studio businesses in the industry.
Our parks business and I think the strategies, we have are really sound and durable without M&A.
2 questions. If I could first, um, I have to ask about all the speculation about Warner Brothers Discovery. So Brian. If you could just share any thoughts about how you think about those assets, that complementarity of those assets and whether or not, um, in this political environment, um, m&a of that kind is even possible.
That said the question about what's feasible.
<unk> get any deals through obviously, the fact that we've been.
and then, on the cable side of the business, I wonder if you could just talk about, um, the transition at Verizon, uh, to Dan Schulman and whether you expect that to have any implications for the relationship, you have with Verizon and the mvno,
Taking the path of setting up <unk> up as our cable network business to pursue strategies that didn't fit inside the sort of the new NBC media business with great strength and assets and the cash flows there have with light leverage and that is on track to happen you can expect that any any.
Take it over to Mike. Uh,
Co to answer those questions, but
Any view, we would have about other media assets that could be complementary to our existing media business would be of the same sort. So in this case it would be streaming assets and studio assets. Since there's no other parks assets out there that makes us such a unique company ourselves.
On the second 1, there on Verizon. Uh, we wish him well, and we have an important relationship with Verizon. And, uh, we are confident that we'll find ways to work together very successfully in the future, but Mike, why don't you take the sure on a media m&a or m&a generally. I mean, I think we've said repeatedly and I'll say it again that the bar is very high for us uh, to pursue, uh, any m&a transactions given how
I think in light of that what we'd be looking for and what we're going to look like post the <unk> spin I think.
Uh strongly. We feel about the businesses, we have the strategies we're pursuing and the uh opportunities we have ahead of us.
More things survival than maybe some of the public commentary that's out there.
Thanks, Craig Operator next question please.
Thank you next question today is coming from Ben Swinburne from Morgan Stanley. Your line is now live.
Uh, so that continues to be an important, uh, Anchor Point for how we think about things. Uh, second point I'd make is that, you know, you should expect us to look at things that are, um, uh, trading in our, in the space around our industry. So we'd be, uh, it's our job to try to figure out if there's ways to add value.
Thanks, Good morning.
I guess two questions one I wanted to get a sense a little bit about how youre thinking about the conversion of free wireless lines to pay.
Next year, we've sort of seen this and others in the industry, but how are you guys just ensuring that the customer quality is there and making sure you're putting in kind of the right guardrails. So that when you get to that point a year from now we see that nice uptick in convergence revenue growth.
And then I think Jason you mentioned, a couple of things on an epic focusing on expanding ride throughput et cetera.
Operating leverage can you just talk a little bit more about what you were referring to there and kind of what we should expect as we as we move through 2026. Thanks so much.
Yeah.
Let me start Ben this is Dave on the wireless migration. So we've had.
Solid momentum leading up to this quarter, we've been in the 300000 ish net new additions prior to launching the free line package. So.
But I would, uh, point out that with the kind of person spin, you know, we've said, NBC, uh, media business up, uh, pairing peacock. On the streaming side with, um, with uh, NBC broadcast. Uh, you've seen lots of news lately about us attracting the NBA Taylor Sheridan and the like, over the long term and you put that business alongside, you know, 1 of the finest, uh, Studio businesses in the industry, and our, our Parks business. And I think the strategies we have are really sound and durable, uh, without m&a. Um, that said the question about, what's a feasible? Uh, you know, to to get any deals through? Uh, obviously the fact that we've been taking, uh, the path of setting up versent up as our cable network business, to pursue strategies, that didn't fit inside the, the sort of the new NBC media business, uh, with great strengths and assets, and the cash flows are
We just stepped up to a nice level.
For the first time, a new record.
We've all been talking about so yeah, but I can't think of too. Many other things are as important as.
Making sure the quality connects coming in and Theres going to be a real focus around making the transition to a paid status for those free lines as they come off next year. So.
Have with light leverage, and that is on track to happen. You can expect it any, any, um, any view we would have about other media assets, that could be complimentary, uh, to our existing, uh, media business would be of the same sort. So, in this case, it would be streaming assets and Studio assets since there's no other Parks assets out there. And that makes it such a unique company ourselves. Uh, so I think uh, in light of that, what we'd be looking for and what we're going to look like post diverse and spin, I think uh uh more things are viable. Then maybe some of the public commentary that's out there.
Having a lot of experience with promotional activity very accustomed to proactive and reactive approaches, but and we've watched closely in the marketplace. Those that have done. This so tried to learn quite a bit.
Thanks Craig. Operator. Next question, please.
Thank you. Next question, today is coming from Ben swinburne from morning sailing. Your line is now live.
um,
But it's a.
Our focus has been and continues to be provide.
Providing real choice in the marketplace and we've been very consistent going after quality high end segments. We want to compete in every segment and so whether it's broadband and mobile or broadband and other packages.
I guess 2 questions 1. I wanted to get a sense a little bit about how you're thinking about the conversion of free Wireless lines to pay.
And we've launched for example, new high end wireless.
Tiers that have been really attractive in the marketplace.
And so that's a good sign we've seen.
These new wireless plans, our gig speeds for Kay the ultra high Def streaming capability more Wi Fi hotspots.
Next year, um, we've sort of seen this in others, uh, in the industry. But how are you guys just ensuring that the customer quality is there and making sure you're putting in kind of the right guardrails? So that when you get to that point a year from now, we see that nice uptick in uh in convergence Revenue growth. Um, and then Jason, you mentioned a couple things on on, on Epic focusing on expanding rides, throughput, Etc. Uh, operating leverage just talk a little bit more about what you were referring to there and kind of what we should expect as we as we move through. Uh 2026. Thanks so much.
Advanced spam call protection and guaranteed device upgrade capabilities. So you can see our focus is to stay very much when we go after mobile relationships.
Maintain the history that we have at going after the best customers and the experience itself. I think is critical and we will continue to make sure people know we have the best along with Great Mobile service Great Wi Fi.
And it all comes together and converged and away from our product experience that it really works and so the migration activity next year, we will be all over that it'll be an important part of our plan.
Hey, Ben it's Jason just rounding that on the wireless the steps we've taken this year I think broadly we're to get after two particular issues in our wireless base. So on the one hand, we've got 14% penetration of our broadband base. That's a lot of progress in seven years since launching wireless. So that's that's terrific on the other hand, it's a captive base to sell into so.
Let me start been. Uh, this is Dave on the the wireless migration. So we've had um, you know, solid momentum leading up to to this quarter. We've been in the 300,000, you know, net new additions prior to launching the free line package. So um we just stepped up to, you know, a nice level uh for For the First Time a new record uh that we've all been talking about. So yeah, but I can't think of too many other things that are as important as the making sure the quality connects you know, coming in and there's going to be, you know, a real Focus around making the transition to uh paid status uh for those free lines, you know, as they come off next year. So
We all think our penetration in natural penetration over time is a lot higher than 14% to two things related to that number one an awareness issue in our base, which the solution for that is if you don't know about us or don't trust the network the product et cetera, because you haven't had an exposure to it what better way to do that in a free line for a year. So that's design.
And to sort of push through that side and then the other I think critique was can you really sort of the high end you know historically, we launched on a by the gig plan that was sort of our niche early on in the market. That's not a high end plan. We've evolved since then and more recently with the premium unlimited plans exactly what Dave was talking about that is a very competitive.
<unk> plan with high end wireless that is full data allotments that has access to handset upgrades on a regular cycle. So very much looks like typical high end postpaid plans. So rounding that out I think we're kind of we're set to be much more competitive in wireless. This is an investment year, obviously as we push free lines into the base, but this sets us up well beyond that.
Um, have a lot of experience with promotional activity. Very accustomed to proactive and reactive approaches, but and and we've watched it closely in the marketplace. Those that have done this. So tried to learn quite a bit. Um, but it's a, uh, it it, you know, our Focus has been and continues to be, uh, providing real choice in the marketplace and it, it we've been very consistent going after quality high-end segments. Uh, we want to compete in every segment. And so, you know, whether it's, you know, broadband and mobile or broadband and other packages, and we have launched, for example, you know, new high-end, uh, Wireless, uh, uh, tears, that that have been really attractive in the marketplace. And, you know, so that's that's a good sign. We've seen, you know, the in these new Wireless plans, you know, are gig speeds 4K, the, the ultra high def streaming capability more Wi-Fi hotspots and
And then on parks, let me just step back and we had another strong quarter revenues up 19% and EBITDA up 13% year over year and that's of course, driven by the first full quarter of epic.
And advanced spam call protection and guaranteed device upgrade capability. So, you can see our focus is to stay very much. Uh, and when we go after mobile relationships, we'll, we'll, you know, maintain the history that we have of going after the, the best customers and the experience itself I think is, is critical and that we will continue to make sure people know we have the best along with great mobile service, great Wi-Fi. Uh, and that, that it all comes.
Orlando broadly the full the full resort Orlando is very strong. So we're very pleased the idea was to make.
Epic.
<unk> heard us towards a weeklong vacation type of experience and what we're seeing.
Together and converged in a way from a product experience that it really works in. So the migration activity next year we will be all over. That will be an important part of our plan.
As epic is now in the market is that it's driving higher per cap spending and attendance across the entirety of universal Orlando, So and one of the nice things is that lesser cannibalization of attendance from our two pre existing parks than we had expected.
In terms of epic Ourself, our focus now is just driving increased drive capacity, it's a new park and very technologically advanced.
So working on the <unk>.
The labor and the Kinks to drive it to full capacity, we've been holding back a little bit to make sure. The experience is what we want it to be so we expect it to fully scale up.
In the amongst months ahead, and we will really be driving.
Higher attendance per caps and improved operating leverage which is what Jason referred to as you look out over the next year.
Plus.
And hey Ben it's Jason, just rounding that on a wireless. You know, the steps we've taken this year, I think broadly were to get after 2 particular issues in our wireless base. So, you know, on the 1 hand, we've got 14% penetration of our Broadband base. That's a lot of progress in 7 years since launching Wireless. Um, so that's that's terrific on the other hand, it's a captive base to sell into. So I we all think our penetration and natural penetration over time is a lot higher than 14% 2 2 things related to that number 1, an awareness issue in our base, which the solution for that is, if you don't know about us or don't trust, you know, the, the network, the product Etc, because you haven't had any exposure to it, what better way to do that than a free line for a year. So that's designed to sort of, push through that side and then the other I, I think critique was, can you really serve the high end? You know, historically we launched on a by the gig plan that was sort of our Niche, early on in the market. That's not a high-end plan. Uh, We've evolved since then and more recently with, uh, the premium unlimited plans exactly what Dave was talking about. That is
Thanks, Ben Operator next question please.
Our next question is coming from Jessica Reif from Bank of America. Your line is now live.
Oh, Thank you good morning.
Okay. Thanks.
Given the meaningful sports investment plus.
The overall content investment of Peacock.
Are your plans to scale up if any globally.
Is a very competitive plan with high-end Wireless. That is full data. A lots that is access to handset upgrades on a regular cycle, so very much looks like typical high-end post-paid plans. So rounding that out. I think we're, we're kind of, we're set to be more competitive in Wireless. This is an investment yearly as we push free lines into the base, but this sets us up well beyond that.
If you are do you need to participate in M&A.
They do that.
I know there was an earlier question, but what is your view on NBC is competitive.
It seems like a moment in time and then the second thing if you could talk a little bit more in more detail about your advertising outlook.
Google had really strong results yesterday, maybe you could drill down a little bit on.
And I think a competing directly but just what youre seeing in your various lines of business, both cable and media.
Now.
Move towards programmatic will be effective.
Thank you.
Sure well on the first I kind of said what there is to say about about the business I think NBC is just look at the partners. We have attracted in and again on the on the talent side from.
Again, Taylor Sheraton and.
Jason Plumb, and Chris Meland, Andre and Steven Spielberg, and Jordan, Peele, and and others I mean, we just have a.
And Christopher Nolan, obviously with coming up so obviously pay one movies.
And original or a piece of the pie of driving scale in Peacock and likewise sports sports has been a very successful for us.
Uh, head us towards a week-long vacation type of experience, and what we're seeing, uh, as epic is now, in the market is that it's driving, higher per cap, spending and attendance across the entirety of Universal Orlando. Uh, so and and 1 of the uh, nice things is that lesser cannibalization of of attendance from our 2, uh pre-existing uh, Parks than than we had expected. Uh, in terms of Epic, our self, our Focus now is just driving increased ride capacity. Uh, it's a new park and, uh, very technologically advanced. Uh, so working on, uh, the, the labor, and The Kinks to, to drive it to full capacity. We've been holding back a little bit to make sure, uh, the experience is what we want it to be. So we expect it to fully scale up, um, in the month months, uh, ahead and we'll really be driving, uh, higher attendance per caps and improved operating leverage, which is what Jason referred to. As you look out over the next year, uh, year plus
It's why there's a lot of the coverage has had in its hard to build the kind of portfolio that we have so obviously you have to pay the bill.
Thanks Ben. Operator. Next question, please.
All right. Next question is coming from Jessica Re from Bank of America. Your line is now live.
To meet the market.
But beyond that you have to produce it well and I think some of the Ah <unk>.
And NBC sports has just got a great tradition of working with partners and so I think from any partners look to us to broaden their reach increase the brand of their own properties and I think that's a durable advantage for NBC.
Uh, thank you. Good morning. Um, 2 things given the meaningful Sports investment Plus
Just so I don't think M&A.
As necessary and you think about the.
The nature of sports is fundamentally a market by market as opposed to global we do have the Olympics, but those rates are in the U S. So I think that's that's where I'll leave it on on that front and on the advertising front another strong quarter were up 3%.
Excluding last year's Olympics, and again sports is a big driver Sunday Night football returned 20 season of highest grossing.
You know, the overall content investment of peacock. Um, what are your plans to scale up if any globally? Um, if if you are, do you need to participate in m&a to to, to actually do that. And if not, I know there was an earlier question. But you know what is your view on? NBC's competitive position? If if you don't participate since this seems like a moment in time and then the second thing, if you could talk a little bit more in more detail about your advertising Outlook, we saw Google had like really strong results yesterday, you know, maybe you could drill down a little bit on, um, not that you're competing directly but, you know, just what, what you're seeing in your various lines of business, both cable and media and how the the move towards programmatic might be affecting those businesses. Thank you.
Season to date, so we had a strong upfront and we're using more and more programmatic and digital and obviously as we've talked in prior calls Peacock was up over 20% year over year.
This past year's upfront and that was a third of Nbc's total upfront commitments. So feel good that the balance between linear and digital particularly as we look to what our portfolio is post versus spin is balanced and strong and benefits greatly from.
Sports and the other properties.
Pay one window, and NBC content and original and pecan.
Sure. Well, on the first, I kind of said what there is to say about, uh, about the business. I think NBC is, you know, just look at the partners, we've attracted, you know, in and again, on the media on the talent side from, uh, Again, Taylor Sheridan. And, uh, Jason Plum and Chris Mel and dondre, and Steven Spielberg and Jordan Peele and, and, and others. I mean, we just have a uh and Christopher Nolan obviously with uh, you know, coming up. So obviously pay 1 movies uh and originals are uh a a piece of the pie of driving, uh, scale in in peacock and likewise Sports. Uh, Sports is, you know, been, uh, very successful for us.
Dave I don't know if you want add anything on the on the advertising side on on cable, but I think there are similar trends very similar.
Operator, we have time for one last question.
Certainly our final question today is coming from John I don't think from UBS. Your line is now live.
Great. Thanks, guys maybe.
Maybe a follow up to a previous question.
Is there evidence that wireless and convergence in general is lowering churn in the broadband base and if we focus more just on the free line promotion is that helping the overall trend as it relates to new connects.
And then.
Second question on the business market business trends have held up pretty well actually it's been pretty stable I realize you have the the acquisition in there, but you guys gave a lot of forward comment on what I think related to the residential business, but how do you see competition shaping up in the business market and condos as business trends remain.
Pretty solid right now as you look forward. Thanks.
Uh, it's, it's live. As a lot of the coverages had, and it's hard to build the kind of portfolio that we have. So, obviously, I have to pay the bill, uh, to meet the market. Uh, but beyond that, you have to produce it. Well, and I think some of the, uh, and NBC Sports has just got a great tradition of working with partners. And so, uh, I think many partners look to us to broaden their reach increase the, the, the brand of their own properties. And I think that's a durable Advantage for NBC, uh, broadly. Uh, just so I don't think, uh, m&a. Uh, is necessary. And you think about the, uh, the nature of sports is fundamentally uh Market by market as opposed to Global, we do have the Olympics but those rights are are in the US so I think that's that's where I'll leave it on on that front and on the advertising front another you know strong quarter, we're up 3% uh excluding last year's Olympics and Again Sports was a big driver so then I football returned to 20 season of high.
Let me stay in terms of.
When we add wireless to the relationship.
It is.
It's positive.
The impact of churn. So it is it has been continues to be.
The impact of the three line.
Plant part of a deliberate strategy that we have is really a longer term bet.
On the connect side.
Grossing, uh, uh, season to date. So, uh, we had a strong upfront and we're using more and more, uh, programmatic and digital. And obviously, as we talked to, uh, in Prior calls, uh, peacock, you know, was over up over 20% year-over-year and, uh, this past Year's upfront and that was a third of NBC's total, uh, upfront, commitments. So feel good that the balance between linear and digital particularly, as we look to, uh, what our portfolio is. Uh, post
There is some.
Little bit of an uptick of help.
But it's really a longer term bet around churn.
Already.
As been noted and Jason Mike.
We are really encouraged by the early results. The fact that we have this step up to 400000 is a real opportunity not just in terms of relationships that we will continue to build.
First uh verse in spin is balanced and uh, strong and benefits greatly from uh Sports and uh the other properties uh pay 1 window and uh NBC content, and originals and peacock.
Dave, I don't know if you want to add anything on the um, on the uh, advertising side on on cable, but I think there it's sort of similar Trends. Very similar. Thank you.
Operator, we have time for 1 last question.
But it's also an opportunity financially down the road as they convert so but it's the longer term bet around churn that is that's where the benefit is.
Certainly our final question today is coming from John, huddling from UBS, your line is now live.
Ah.
Business services the it.
It is competitive there's.
More activity in fixed wireless as we've seen the telephone companies.
Talk about that there is a fair amount we have I think a really good portfolio, though we've done I think Ed Zimmerman and the team and that Steve driving that as well.
Convergence in general is is lowering churn in in the Broadband Basin. If we focus more just on the, the 3 line promotion is that helping the the overall trend as it as it relates to new connects,
$10 billion and growing in terms of mid single digits.
Margins and huge addressable marketplace.
Over $60 billion so.
We've become a leader in the small business space, we are the challenger.
And then uh, a second question on the business Market business Trends is how the pretty well actually been pretty stable and I realize you have the the acquisition in there, but you guys gave a a lot of forward comment on what I think related to the the residential business. But how do you see competition shaping up and in the business market and and can those those business Trends sort of remain, uh, you know, pretty solid right now as you look forward. Thanks.
When it comes to mid market and enterprise.
There's just upside as you look at how the strategy has come together around expanding relationships, but as importantly, as anything adding more capability and more value.
And the additional services and we're just getting going in terms of mobile and the business services. So we're thrilled to have a great relationship with Verizon as noted.
But we're thrilled to have the new relationship with T mobile.
To be able to go after the business services side of things mobile is just one more great product to add to the portfolio around everything else that we're doing so lot of upside on the business services area.
Let me um, this is Dave, in terms of, you know, the when we add Wireless to the relationship and and it is, uh, it's positive. The, the, the impact to churn. So it is, it has been continues to be, um, from a, the impact, to the free line, you know, plant part of the deliberate strategy that we have is really a longer term bet. Um, on on the connect side. Uh, there's there's some, you know, a little bit of an uptick of help uh but it's really a longer term better around churn. Um already uh has been noted and Jason Mike. That, uh, we we've, uh, really encouraged by the early results that
Thanks, John and thank you for everyone joining our call. This morning.
Thank you that does conclude today's conference call a replay of the call will be available starting at 11 30, a M eastern time.
Comcast Investor Relations website. Thank you for participating you may all disconnect.
The fact that we, you know, have this, you know, step up to 400,000 is, you know, a real opportunity not just in terms of relationships that, that, you know, will continue to build. Uh, but it's also an opportunity financially down the road as they convert. So, but it's the longer term better around turn that is that's where the the benefit is
Uh, Business Services, the, the, you know, it it is competitive. There's um, more activity in fixed Wireless. As we've seen the telephone companies, uh, talk about that there, there's a fair amount. We have a, I think a really good portfolio though, we've done. And I think Ed Zimmerman and the team and that Steve driving that as well, uh, you know, 10 billion and growing. And in terms of mid single digits, uh, great margins and a huge addressable Marketplace, you know, at, uh, over 60 billion. So the, you know, we've become a leader in the small business space. We are the Challenger uh when it comes to mid-market and Enterprise and there's just upside as you, you look at how the strategy is is come together around expanding relationships but as importantly as anything adding more capability and more value, uh, and the additional service
And we're just getting going in terms of Mobile in the business services. So we're thrilled have a great relationship with Verizon is noted, uh, but we're thrilled to have the new relationship with T-Mobile, uh, to be able to go after the business services side of things, mobile is just 1 more great product, to add to the portfolio, around everything else that we're doing. So, a lot of upside on the business services area,
Thanks John, and thank you for everyone joining our call this morning.
Thank you. That does conclude today's conference call a replay of the call will be available starting at 11:30 a.m. eastern time on Comcast investor relations website, thank you for participating. You may all disconnect