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Comcast : REFINITIV STREETEVENTS REFINITIV STREETEVENTS EDITED TRANSCRIPT

Comcast : REFINITIV STREETEVENTS REFINITIV STREETEVENTS EDITED TRANSCRIPT







REFINITIV STREETEVENTS

EDITED TRANSCRIPT

CMCSA.OQ – Q2 2022 Comcast Corp Income Name

EVENT DATE/TIME: JULY 28, 2022 / 12:30PM GMT

OVERVIEW:

CMCSA reported 2Q22 earnings of $30b and altered EPS of $1.01.

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JULY 28, 2022 / 12:30PM, CMCSA.OQ – Q2 2022 Comcast Corp Income Name

C O R P O R A T E P A R T I C I P A N T S

Brian L. RobertsComcast Company – Chairman, CEO & President

David N. WatsonComcast Company – President & CEO of Comcast Cable

Jeffrey S. ShellComcast Company – CEO of NBCUniversal

Marci RyvickerComcast Company – EVP of IR

Michael J. CavanaghComcast Company – Senior EVP & CFO

C O N F E R E N C E C A L L P A R T I C I P A N T S

Benjamin Daniel SwinburneMorgan Stanley, Analysis Department – MD

Brett Joseph FeldmanGoldman Sachs Team, Inc., Analysis Department – Fairness Analyst

Craig Eder MoffettMoffettNathanson LLC – Co-Founder, Founding Spouse & Senior Analysis Analyst

Douglas David MitchelsonCrédit Suisse AG, Analysis Department – MD

Jessica Jean Reif Ehrlich CohenBofA Securities, Analysis Department – MD in Fairness Analysis

JohnChristopherHodulikUBSInvestmentBank,ResearchDivision-MD,Sector Headofthe UnitedStatesCommunications GroupandTelco &Pay TVAnalyst Jonathan ChaplinNew Boulevard Analysis LLP – US Group Head of Communications Products and services

Philip A. CusickJPMorgan Chase & Co, Analysis Department – MD and Senior Analyst

P R E S E N T A T I O N

Operator

Just right morning, women and gents, and welcome to the Comcast 2nd Quarter 2022 Income Convention Name. (Operator Directions) Please observe that this convention name is being recorded.

I’d now like to show the decision over to Government Vice President of Investor Members of the family, Ms. Marci Ryvicker. Please cross forward, Ms. Ryvicker.

Marci Ryvicker– Comcast Company – EVP of IR

Thanks, operator, and welcome, everybody. Becoming a member of me in this morning’s name are Brian Roberts, Mike Cavanagh, Dave Watson, Jeff Shell and Dana Sturdy. Brian and Mike will make formal remarks, whilst Dave, Jeff and Dana can also be to be had for Q&A.

Let me now refer you to Slide 2, which accommodates our secure harbor disclaimer and remind you that this convention name would possibly come with forward-looking statements topic to positive dangers and uncertainties. As well as, all through this name, we will be able to discuss with positive non-GAAP monetary measures. Please see our 8-Okay and trending schedules for the reconciliations of those non-GAAP monetary measures to GAAP.

With that, let me flip the decision over to Brian Roberts for his feedback. Brian?

Brian L. Roberts– Comcast Company – Chairman, CEO & President

Thank you, Marci, and hi, everybody.

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JULY 28, 2022 / 12:30PM, CMCSA.OQ – Q2 2022 Comcast Corp Income Name

Our monetary effects had been very robust around the board as soon as once more this quarter. We grew 2nd quarter consolidated earnings via 5%, adjusted EBITDA via 10% and altered EPS via 20%. We completed this whilst proceeding to put money into our companies and go back vital capital to shareholders.

Particularly, we purchased again $3 billion value of our inventory within the quarter, bringing our general to $6 billion year-to-date. And we proceed to have a wholesome dividend and one of the vital most powerful stability sheets within the business.

Our prudent monetary control and long-terminnovation-based technique are paying off in Cable, which posted 5% enlargement in EBITDA and 70 foundation issues of year-over-year margin growth. In reality, our EBITDA margin reached a document excessive of just about 45% this quarter.

Whilst we have now added just about 800,000 broadband subscribers prior to now 365 days, extra just lately, that tempo has slowed. And we posted flat broadband subscriber additions in the second one quarter. I would love to dig into what we’re seeing in that space. Broadband additions, in fact, are mainly a serve as of churn and attach process. Whilst churn stays neatly under 2019, attach process was once additionally less than what we in most cases see in the second one quarter.

We consider that is essentially the results of 3 elements. The primary class is transfer process. As we have now mentioned for a while now, there may be been a dramatic slowdown in strikes throughout our footprint with the second one quarter under 2019 via 12% and the bottom we have now skilled for the reason that pandemic started. Our win proportion of latest buyer acquisition alternatives stays excessive, however the slowdown in strikes has led to fewer of those leap balls. And this has had the biggest affect on our gross connects.

The second one class is a reversal of a few pandemic traits. All through the pandemic, many purchasers, in particular at decrease source of revenue ranges, sought to optimize home-based answers via including broadband. This offered us with vital alternative to take extra proportion in residential broadband. In reality, within the first 12 months of the pandemic, we added just about 50% or 600,000 extra shoppers than our prior annual reasonable enlargement.

At this degree within the pandemic, the ones alternatives have waned as client conduct has begun to go back to pre-pandemic patterns. And we’ve additionally observed some give again to a normalization of cellular substitution.

As well as, all through the pandemic, seasonality patterns had been very other than what we had observed traditionally. And this truly started to additionally normalize on this 2nd quarter, inflicting extra seasonal disconnects that didn’t happen at conventional ranges within the prior 2 years.

The final bucket is larger pageant. Fastened wi-fi is a brand new entrant available on the market. And whilst there are probably to be vital long-term boundaries, as of late’s extra capability in wi-fi networks is growing what we consider to be a short lived alternative focused at value-oriented shoppers. We don’t seem to be seeing mounted wi-fi have any discernible affect on our churn however its early enlargement seems to be any other contributor to our decrease attach process. As well as, we proceed to compete in opposition to fiber in an expanding share of our footprint.

However those business and most commonly macro-related elements, we stay extraordinarily assured. We’ve got spent a long time making an investment and innovating to construct a industry this is neatly located to reach the surroundings we are seeing. And we undoubtedly be expecting a go back to residential broadband subscriber additions.

How can we plan to do this? Neatly, we’re running arduous to extend our footprint, profiting from enlargement in housing and companies in our present markets, accelerating edge outs into new spaces. And we’re taking part in offense in relation to executive subsidies.

Subsequent, we will be able to proceed to aggressively compete for marketplace proportion. We provide a awesome product interested in innovation and differentiation. And we proceed to extend the price of broadband via bundling it with Cellular and Flex. And we’re making nice development in our community transition to DOCSIS 4.0, which supplies us a transparent trail to attaining multi-gigabit symmetrical speeds at scale quicker and at a lower price relative to our competition, all inside the CapEx depth ranges we’ve up to now defined.

I am additionally assured and admittedly, extra excited in our skill to force earnings and EBITDA enlargement even via our current subscriber base on my own. We’ve got had a historical past of producing robust and stable ARPU enlargement as we proceed so as to add super price and growth to the buyer

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JULY 28, 2022 / 12:30PM, CMCSA.OQ – Q2 2022 Comcast Corp Income Name

revel in. Our margins are probably the most absolute best within the business, which highlights the stableness and running leverage of our industry, the diversification of our earnings streams and the power of our different essential enlargement drivers at Cable.

Specifically, industry services and products and wi-fi were 2 really extensive members to Cable’s monetary power, and every nonetheless has a lot of runway forward.

Industry services and products had any other robust quarter of earnings enlargement. And in simply over a decade, we have now grown this to almost $10 billion in high-margin annual earnings, together with the addition of just about $1 billion within the final 365 days on my own.

In wi-fi, we added 317,000 shoppers this quarter and in a similar way, have added over $700 million in incremental earnings prior to now 365 days. And we have now slightly scratched the outside of the chance right here at handiest 8% penetration of our residential broadband shoppers.

Wrapping up on Cable, we’re in a singular atmosphere with some headwinds, however transfer process will have to go back to a few stage of normalcy, cellular substitution will in the end stabilize. And we consider mounted wi-fi has inherent efficiency and capability boundaries that sharply restrict the choice of folks on a community the usage of a given quantity of spectrum, which will have to supply a herbal cap on their general business penetration.

Additionally, we consider that our trail to ship multi-gigabit speeds along with the opposite options and capability we provide will make our broadband revel in awesome to any of our competition over the longer term. Within the intervening time, we will be able to handle the self-discipline we have now at all times had. And I’m assured that we will be able to strike the correct stability between subscriber acquisition and long-term profitability. And all of us consider we’ve an overly shiny long run on this industry.

Transferring to NBCUniversal. We had an overly robust quarter with EBITDA enlargement of 20% year-over-year. Our parks section persisted its momentum, producing document EBITDA for a 2nd quarter. And that is with out a lot contribution from Beijing, which was once closed for just about 2 months. Home park attendance and consistent with caps proceed to be above pre-pandemic ranges. And we’re transferring complete steam forward in development Epic Universe. I may just no longer be extra excited for a way this park will convey new studies to our guests and further runway for enlargement.

NBCU Media stays an overly wholesome industry. We simply finished the absolute best grossing prematurely in our historical past, a testomony to our content material and a very good crew, and the original information and era innovation we ship via One Platform. This 12 months, we secured greater than $7 billion in commitments, together with $1 billion at Peacock, double what we did within the 2021/ 2022 season, at the side of robust pricing.

In Studios, our luck with Jurassic Global, Minions and Black Telephone demonstrates that fab content material draws large audiences. As well as, we’re very happy with our new movie windowing, together with PVOD and an speeded up Pay 1 availability on Peacock, that have expanded the target market for our movies and made our studio industry much more precious.

For Peacock, early get right of entry to to top rate Common movies is a confirmed motive force of subscriber acquisition and engagement. As we mentioned all through our final name, Peacock had an overly robust first quarter pushed via a lot of peculiar programming, together with the Tremendous Bowl and Olympics. Given the traditional ebbs and flows of our content material slate, we had been happy to have stayed fairly flat for the second one quarter at 27 million MAAs and 13 million paid subscribers within the U.S., in step with our expectancies. And we sit up for an overly robust fall when next-day broadcast turns into solely ours from Hulu, and we’re going to be capable of take complete good thing about our Pay 1 window with various large films like Jurassic and Minions. We’re going to even have Sunday Night time Soccer, Premier League, the Global Cup and extra originals.

At Sky, we’re running neatly in an increasingly more tough macro atmosphere, reporting our absolute best ever 2nd quarter EBITDA. We grew earnings and EBITDA within the U.Okay., which is our greatest Ecu marketplace and the principle motive force of our long run enlargement.

Calling out a few highlights, we’re in particular happy with the shopper reaction to Glass, which led to Sky being the 3rd greatest Extremely Prime-Definition tv promoting emblem in the second one quarter. And we additionally recorded our absolute best ever Premier League ultimate day viewership, taking 30% target market proportion. As well as, we are seeing the advantage of our disciplined strategy to sports activities rights in each Italy and Germany, the place EBITDA additionally stepped forward year-over-year.

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JULY 28, 2022 / 12:30PM, CMCSA.OQ – Q2 2022 Comcast Corp Income Name

In reflecting at the final 24 months, which has been wrought with uncertainty, we’ve carried out extraordinarily neatly and proceed to make development in opposition to key tasks. Our Cable industry has accomplished probably the most absolute best margins within the business whilst additionally turning in wholesome best line enlargement. At NBCUniversal and Sky, they have got proven resilience and proceed to get better in spite of distinctive demanding situations from the pandemic.

In combination, we have now generated just about $30 billion in loose money glide. We are returning a document quantity of capital to shareholders, and our stability sheet is in a great spot. We’ve got additionally persisted to put money into strategically essential enlargement alternatives, together with bettering our world-class broadband community, scaling Xfinity Cellular, expanding our features at industry services and products, launching Peacock, finishing Common Beijing and beginning development at Epic, simply to call a couple of.

With really extensive money glide technology and a powerful basis for innovation, Comcast is in a beautiful place. Mike, over to you.

Michael J. Cavanagh– Comcast Company – Senior EVP & CFO

Thank you, Brian, and excellent morning, everybody.

I will start on Slide 4 with our 2nd quarter consolidated 2022 monetary effects. Earnings larger 5.1% to $30 billion. Adjusted EBITDA larger 10% to $9.8 billion. Adjusted EPS larger 20% to $1.01 consistent with proportion. And after all, we generated $3.2 billion of loose money glide.

Now let’s flip to our industry section effects, beginning with Cable Communications on Slide 5. Cable earnings larger 3.7% to $16.6 billion. EBITDA larger 5.3% to $7.4 billion. Cable EBITDA margins stepped forward 70 foundation issues year-over-year, attaining a document excessive margin of 44.9%, and web money glide grew 4.4% to $5.3 billion.

Buyer relationships are up 591,000 in comparison to final 12 months and down 28,000 sequentially in the second one quarter, reflecting decrease ranges of latest buyer connections given the present running atmosphere, in part offset via low ranges of churn, which stays neatly under 2019 ranges. We’re interested in turning in a very good buyer revel in and monetizing our buyer relationships over their lifetime. And in that regard, EBITDA consistent with buyer dating grew via 3% within the quarter.

Now let’s talk about Cable financials in additional element. Cable earnings enlargement of three.7% was once pushed via broadband, industry services and products, wi-fi and promoting earnings, in part offset via decrease video and voice earnings. Broadband earnings larger 6.8%, reflecting an building up of three.6% in ARPU and enlargement in our residential buyer base in comparison to final 12 months. Web residential and industry shoppers larger via 775,000 over the last 365 days with flat ends up in the second one quarter.

The traits that we noticed via the second one quarter have in large part persisted into the early portions of the 3rd quarter with connects final cushy, whilst churn remains to be close to all-time lows. This has led to a quarter-to-date lack of kind of 30,000 shoppers.

July is generally the weakest month of the quarter. And nearly all of quarterly attach process is weighted in opposition to August and September, which is helped via back-to-school process. Whilst we are positive that we will be able to have a wholesome back-to-school season, temporary visibility stays low. And extra importantly, past this brief duration, we’re assured that our broadband speeds, reliability, protection and regulate options proceed to put us because the best-in-class product for our shoppers, permitting us to offer protection to and develop our 32 million broadband buyer base over the years.

Industry services and products earnings larger 10% or roughly 6%, except for the purchase of Masergy, which closed firstly of final 12 months’s fourth quarter. This wholesome natural enlargement was once pushed via will increase in reasonable charges consistent with buyer and in our buyer base, which grew via 54,000 in comparison to final 12 months with 10,000 additions in the second one quarter.

Transferring to wi-fi. Earnings larger 30% basically pushed via carrier earnings, which was once fueled via enlargement in buyer traces. Total, we added 1.2 million traces in comparison to final 12 months, together with 317,000 traces within the quarter, which was once our absolute best web additions for any 2nd quarter on document.

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Disclaimer

Comcast Company revealed this content material on 28 July 2022 and is just liable for the guidelines contained therein. Allotted via Public, unedited and unaltered, on 29 July 2022 13:51:07 UTC.

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All information about COMCAST CORPORATION

Analyst Tips about COMCAST CORPORATION

Gross sales 2022 122 B

Web source of revenue 2022 14 189 M

Web Debt 2022 88 982 M

P/E ratio 2022 11,8x
Yield 2022 2,87%
Capitalization 166 B
166 B
EV / Gross sales 2022 2,09x
EV / Gross sales 2023 2,07x
Nbr of Workers 189 000
Loose-Go with the flow 82,7%

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Imply consensus OUTPERFORM
Collection of Analysts 37
Remaining Shut Value 37,52 $
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