Company Strategy and Structure - Comcast plans to create a new independent publicly traded company ("SpinCo") by the end of 2025, focusing on domestic cable television networks and complementary digital assets[13]. - The company has received tens of billions in new funding for broadband deployment and adoption initiatives from Congress[168]. - Comcast's Class B common stock has a non-dilutable 33.3% voting power, significantly influencing corporate decisions[172]. - The company is subject to various lawsuits and regulatory investigations, which may lead to significant expenses and operational changes[171]. - Future legislative and regulatory actions could increase costs or impose additional restrictions on Comcast's business operations[169]. Broadband Services - The company offers broadband services with downstream speeds of up to 1 gigabit per second across nearly its entire footprint, and has introduced prepaid broadband services with speeds up to 200 megabits per second under the NOW brand in 2024[17]. - Comcast's domestic broadband offerings include low-income programs providing discounted rates with speeds of up to 75 and 100 megabits per second[17]. - The company has begun rolling out downstream speeds of up to 2 gigabits per second to approximately 50% of its HFC network footprint as part of a multiyear network transformation plan[35]. - Comcast's Business Services Connectivity segment offers broadband speeds up to 100 gigabits per second for larger enterprises[32]. - The company has deployed DOCSIS 4.0 technology in select markets to enable multigabit symmetrical broadband speeds over its existing HFC network[35]. - Comcast's international broadband services include fiber-to-the-cabinet and fiber-to-the-premises offerings, leveraging third-party networks in the UK and Italy[22]. - The company continues to expand its network reach to new homes and businesses, with a significant portion connected via fiber, and partners with agencies to serve unserved communities[35]. Wireless Services - The company offers wireless services using Verizon's network and its own Wi-Fi hotspots, with prepaid unlimited data plans launched under the NOW brand in 2024[25]. - Comcast's wireless services are provided using Verizon's network and include unlimited data plans, with prepaid options launched in 2024[25]. Video Services - Comcast's video services are provided through the X1 platform in the US and Sky Q platform internationally, offering a range of packages including DTC streaming services under the NOW brand[26]. - Comcast's DTC streaming service, Peacock, faces challenges in growing or sustaining its revenue and user base amid changing consumer behavior[134]. - The programming for video services includes substantial licensing agreements with third parties, based on subscriber numbers and fixed fees[39]. - Comcast's video services are experiencing accelerated net customer losses, leading to decreased video revenues and linear television network subscriber fees[134]. - Programming expenses for Comcast's video services are expected to continue increasing on a per subscriber basis, which could adversely affect the video business[141]. - The company relies heavily on third-party content, and competition for popular content, especially sports programming, is intense, potentially increasing costs[138]. Competition and Market Dynamics - The competitive landscape includes significant competition from wireline and wireless telecommunications companies, as well as DTC streaming service providers like Netflix and Disney+[43][48]. - Domestic broadband-deployment funding initiatives may lead to increased competition and negatively impact demand for Comcast's broadband services[45]. - The company competes for advertising revenue with digital platforms and traditional media, facing challenges from audience fragmentation and competition[85]. - The competition for advertising revenue is intensifying as advertisers shift expenditures to digital media, impacting Comcast's revenue from advertising sales[136]. - Comcast's ability to secure and maintain distribution agreements for its linear television networks is increasingly challenged by evolving market dynamics[143]. - The company faces significant challenges from piracy, particularly in regions with weak copyright laws, which could negatively impact the value of its intellectual property and increase enforcement costs[147]. Financial Performance and Revenue - Revenue from theme parks is primarily driven by guest spending, including ticket sales and in-park purchases, and is affected by travel and tourism trends[81]. - Revenue in the Media segment is cyclical, with peaks during major sporting events, leading to increased advertising demand and distribution revenue[89]. - Theme park attendance fluctuates seasonally, with peak periods during spring holidays, summer months, and winter holidays[92]. - Weak economic conditions could adversely affect consumer spending on the company's products and services, impacting revenue from advertising and theme parks[155]. - The company may face increased costs and risks related to acquisitions and strategic initiatives, which may not yield the anticipated financial benefits[157]. Regulatory and Compliance Issues - The company is subject to various federal, state, and local regulations impacting its cable services, including franchise fees and customer service requirements[104]. - The FCC enforces regulations that may affect the company's programming networks and pricing strategies, with potential disputes anticipated[105]. - The company is subject to international telecommunications regulations, impacting its operations in Europe, Latin America, and other jurisdictions[110]. - The company pays a specified percentage of revenue to a federal copyright royalty pool for retransmitting copyrighted material, which is subject to audits and regulatory changes[112]. - Legislative and regulatory changes, particularly regarding broadband services, could significantly impact the company's operations and compliance costs[96]. - The company is subject to extensive regulations that impose additional costs and restrictions on its operations, particularly in the communications sector[166]. Employee and Workplace Initiatives - Approximately 182,000 full-time and part-time employees as of December 31, 2024, with 30% located outside the United States[118]. - The company has nine voluntary employee resource groups with over 36,000 members, promoting an inclusive workplace[121]. - The company provides competitive financial benefits, including a 401(k) retirement plan with company match and employee stock purchase plans[125]. - The company invests in employee emotional wellbeing through programs like the Employee Assistance Program and various digital tools[125]. Technological Advancements - The Connectivity & Platforms business is focused on developing next-generation media and streaming platforms, integrating various services into a unified experience[38]. - The company must keep pace with technological advancements, including AI and new internet technologies, to remain competitive and meet consumer demands[149]. - The company is executing technology initiatives, such as deploying multigigabit symmetrical speeds using DOCSIS 4.0 technology, but there is no assurance these will sufficiently grow or maintain revenue[150]. - The company relies heavily on third-party vendors for hardware, software, and operational support, and any difficulties faced by these vendors could adversely affect its ability to provide services[148].

Core Viewpoint - Charter's CEO Chris Winfrey acknowledged media speculation regarding a potential merger with Comcast but emphasized that such a deal is not central to the company's strategy [1][3]. M&A Strategy - Winfrey stated that Charter's growth strategy has primarily focused on organic growth rather than mergers and acquisitions (M&A), aiming to create shareholder value through operational excellence and customer service [3][8]. - While not ruling out M&A, Winfrey noted that closing a deal with another major player may not be easier under the current administration [2][8]. - Analysts from TD Cowen & Co. suggested that a merger between Comcast and Charter could make sense due to potential synergies [3]. Industry Context - Major Charter shareholder John Malone has advocated for industry consolidation, arguing that traditional sectors like cable should be allowed to merge to reduce costs and improve service quality [4]. - Winfrey highlighted the challenges of M&A in the current landscape, noting that many cable companies are family-owned or controlled, complicating merger decisions [5]. - Regulatory scrutiny remains a significant hurdle for potential mergers, as evidenced by the failed merger between DirecTV and Dish [6]. Regulatory Environment - Winfrey expressed skepticism about the ease of M&A under the Trump administration, citing past experiences where personal grievances influenced regulatory outcomes [7]. - He emphasized that any M&A transaction must benefit customers and jobs, aligning with Charter's organic growth strategy [8].

4 th Quarter and Full Year 2024 Results J a n u a r y 3 0 , 2 0 2 5 This presentation includes statements that may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are not historical facts or statements of current conditions, but instead represent only our beliefs regarding future events, many of which, by their natur ...

Financial Performance - Comcast reported fourth-quarter 2024 adjusted earnings of 96 cents per share, beating the Zacks Consensus Estimate by 9.1% and increasing 14.3% year over year [1] - Consolidated revenues rose 2.1% year over year to $31.9 billion, surpassing the Zacks Consensus Estimate by 0.9% [1] - Total costs and expenses increased 0.6% year over year to $26.92 billion, while adjusted EBITDA grew 9.9% to $8.8 billion [8] Segment Performance - Connectivity & Platforms revenues, accounting for 64.1% of total revenues, increased 0.2% year over year to $20.46 billion, with Residential Connectivity revenues decreasing 0.2% to $18.01 billion and Business Services Connectivity revenues rising 3.7% to $2.44 billion [3] - Content & Experiences revenues, making up 37.8% of total revenues, increased 5% year over year to $12.07 billion, driven by a 3.5% rise in Media revenues to $8.22 billion and a 16.1% increase in Peacock's paid subscribers to 36 million [5][6] - Theme Parks revenues inched up 0.1% year over year to $2.37 billion, remaining flat due to lower domestic attendance offset by higher international revenues [7] Customer Metrics - Total Customer Relationships for Connectivity & Platforms decreased by 58,000 to 51.6 million, with domestic broadband customer net losses of 139,000 and a loss of 311,000 video customers [4] - Domestic wireless customer lines increased by 307,000 [4] Cash Flow and Liquidity - As of December 31, 2024, cash and cash equivalents were $7.32 billion, down from $8.81 billion as of September 30, 2024 [10] - Comcast generated $8.08 billion in cash from operations, up from $7 billion in the previous quarter, while free cash flow decreased to $3.26 billion from $3.4 billion [11] Dividend and Share Repurchase - Comcast announced an increase in its dividend by 8 cents, or 6.5% year over year, to $1.32 per share for 2025, with a quarterly cash dividend of 33 cents per share payable on April 23, 2025 [12] - A new share repurchase program of $15 billion was approved, effective January 31, 2025, with no expiration date [12]

Core Viewpoint - Comcast experienced a significant decline in broadband subscribers due to competition from telecom firms bundling 5G mobile services with internet plans, leading to an 11% drop in its shares despite positive overall financial results and a $15 billion share buyback announcement [1]. Subscriber Losses - Comcast lost 139,000 broadband customers in the fourth quarter, exceeding FactSet's estimate of a 91,000 loss, with additional impacts from Hurricanes Milton and Helene disrupting Florida businesses [2][3]. Revenue and Financial Performance - Total revenue for Comcast rose by 2.1% to $31.92 billion, surpassing estimates of $31.64 billion, while adjusted profit was 96 cents per share, exceeding estimates by 10 cents [5]. Strategic Initiatives - The company plans to introduce new pricing packages that bundle wireless and internet services in upgraded markets, adopting a strategy similar to that of wireless carriers like AT&T and Verizon [3][4]. - Comcast aims to unchain its main profit drivers, such as the studio and theme parks business, from the declining cable TV unit by spinning off select NBCUniversal cable networks [7]. Studio Performance - The film "Wicked," a movie adaptation of the Broadway prequel to "The Wizard of Oz," was Universal Pictures' biggest grosser in the quarter, earning approximately $700 million globally and contributing to a nearly 7% rise in Comcast's studio revenue [6][7]. - Peacock's revenue increased by 27.8% due to price hikes implemented last year ahead of the Olympics [7].

Group 1: Company Strategy and Structure - Comcast is planning a cable spinoff that will create a new company focused on NBCUniversal cable networks, described as a "strong collection of businesses" with significant cash flow potential [1] - The new company will be led by Mark Lazarus, while the remaining media and entertainment businesses will be overseen by Donna Langley and Matt Strauss, focusing on broadcast, streaming, and theme parks [1] - Comcast executives expressed optimism about the spinoff creating good opportunities for shareholders, although specific strategies will be revealed later [1][2] Group 2: Financial Performance and Market Impact - Comcast is experiencing a steep decline in broadband subscribers, which has negatively affected its stock price [3] - The company anticipates a challenging 2024 for its theme parks following a surge in attendance post-COVID, with attendance trends showing some stabilization [3][4] - Pre-opening costs for the Epic Universe theme park in Orlando are expected to be around $35 million, with total costs nearing $100 million landing in the current quarter [4] Group 3: External Factors - The ongoing LA wildfires are expected to impact theme park operations and attendance in the current quarter [3][4] - Comcast executives acknowledged the community's response to the wildfires and expressed support for those affected [5]

Core Viewpoint - Comcast reported a revenue of $31.92 billion for Q4 2024, marking a year-over-year increase of 2.1% and exceeding the Zacks Consensus Estimate by 0.89% [1] Financial Performance - EPS for the quarter was $0.96, up from $0.84 a year ago, representing a surprise of 9.09% over the consensus estimate of $0.88 [1] - Comcast's stock has returned -0.5% over the past month, while the Zacks S&P 500 composite increased by 1.2% [3] Customer Metrics - Domestic Residential Connectivity & Platforms Customer Relationships totaled 31.17 million, slightly below the average estimate of 31.21 million [4] - Net additions in Domestic Residential Connectivity & Platforms were -151 thousand, worse than the average estimate of -109.67 thousand [4] - Total Domestic Video Customers remained at 12.52 million, matching the average estimate [4] Revenue Breakdown - Revenue from Content & Experiences - Studios was $3.27 billion, slightly below the average estimate of $3.31 billion, with a year-over-year change of +6.7% [4] - Total Residential Connectivity revenue was $18.02 billion, slightly above the average estimate of $17.99 billion, but down 0.2% year-over-year [4] - Revenue from Domestic Wireless was $1.19 billion, exceeding the average estimate of $1.18 billion, with a year-over-year increase of +16.6% [4] - Revenue from Advertising was $1.16 billion, below the average estimate of $1.20 billion, reflecting a year-over-year change of +4.4% [4] - Revenue from Video was $6.50 billion, surpassing the average estimate of $6.45 billion, but down 5.8% year-over-year [4]

Core Viewpoint - Comcast is shifting its focus to the mobile business for growth after experiencing a loss of residential broadband customers, indicating a strategic pivot in response to market challenges [1][2]. Group 1: Company Performance - Comcast reported a loss of 139,000 residential broadband customers in the fourth quarter, highlighting a significant challenge in maintaining its customer base [1]. - Despite stable revenue, Comcast is facing a slowdown in customer growth, attributed to increased competition from wireless providers like Verizon and T-Mobile [2]. Group 2: Strategic Shift - Company executives announced a new strategy to package mobile services with broadband in an effort to attract more customers and counteract the decline in broadband subscriptions [2].

Core Insights - Comcast closed 2024 with strong financial performance, exceeding Wall Street estimates with revenue of $31.9 billion, a 2% increase year-over-year, and adjusted earnings per share of 96 cents, surpassing the consensus forecast by 10 cents [1] Group 1: Financial Performance - Revenue in the Content & Experiences division rose 3.5% to $7.2 billion, driven by distribution growth in the Media segment [2] - The Studios unit experienced an 85% year-over-year increase in EBITDA and 7% revenue growth to $3.27 billion, attributed to successful box office performances of "Wicked" and "The Wild Robot" [2] - Full-year 2024 results were described by CEO Brian Roberts as the best financial performance in the company's 60-year history, with record revenue, EBITDA, and EPS, alongside significant free cash flow [4] Group 2: Streaming and Customer Metrics - Peacock's revenue increased by 28% in the quarter to $1.3 billion, although it is still not breaking even, with EBITDA losses reduced to $372 million, less than half of the previous year's level [3] - The number of domestic video customers decreased by 389,000, ending the year at 12.5 million, as Charter Communications surpassed Comcast as the No. 1 pay-TV operator in the U.S. [4] Group 3: Organizational Changes - NBCU is undergoing restructuring, with new leadership overseeing a revamp of the organizational chart, following the departure of key executives [5]

Financial Performance - Comcast reported record revenue of $31,915 million for Q4 2024, a 2.1% increase from Q4 2023, and full-year revenue of $123,731 million, up 1.8% year-over-year[3][6] - Net income attributable to Comcast increased by 46.6% to $4,778 million in Q4 2024, and by 5.2% to $16,192 million for the full year[3][6] - Adjusted EBITDA rose 9.9% to $8,807 million in Q4 2024, and increased by 1.2% to $38,069 million for the full year[5][6] - Free cash flow reached $3,260 million in Q4 2024, a 90.9% increase, and totaled $12,543 million for the full year, down 3.2%[5][8] - Comcast Corporation reported Q4 2024 revenue of $31,915 million, a 2.1% increase from $31,253 million in Q4 2023[39] - Net income attributable to Comcast Corporation for Q4 2024 was $4,778 million, up 46.6% from $3,260 million in Q4 2023[48] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $38,069 million, a 1.2% increase from $37,633 million in 2023[45] - Free Cash Flow for the twelve months ended December 31, 2024, was $12,543 million, compared to $12,962 million in 2023, reflecting a decrease of 3.2%[44] - Comcast's diluted earnings per share for Q4 2024 was $1.24, a 54.1% increase from $0.81 in Q4 2023[48] Shareholder Returns - Comcast returned $3.2 billion to shareholders in Q4 2024 through $1.2 billion in dividends and $2.0 billion in share repurchases, with a total return of capital for the year at $13.5 billion[5][8] - Comcast announced a 6.5% increase in its dividend to $1.32 per share for 2025, marking the 17th consecutive annual increase[5][9] Revenue Growth by Segment - Connectivity revenue grew by 4.9% to $11.5 billion in Q4 2024 and by 5.7% to $45.1 billion for the full year, driven by domestic broadband and business services[5][10] - Peacock revenue surged 46% to $4.9 billion for the full year, with a 28% increase to $1.3 billion in Q4 2024[5][10] - Total Content & Experiences revenue reached $12,078 million, reflecting a 5.0% increase, driven primarily by Media and Studios[18] - Media revenue increased to $7,222 million, a 3.5% growth, primarily due to higher domestic distribution revenue[19] - Studios revenue grew by 6.7% to $3,269 million, with theatrical revenue increasing by 50.0% due to successful recent releases[21] - Theme Parks revenue remained stable at $2,374 million, with a slight increase of 0.1% year-over-year[23] - Corporate & Other revenue increased to $784 million, a 3.2% rise, while Adjusted EBITDA improved to a loss of $484 million, narrowing from a loss of $494 million[27] Customer Metrics - Total customer relationships for Connectivity & Platforms decreased by 58,000 to 51.6 million, primarily due to losses in domestic broadband customers[11][12] - Business Services Connectivity revenue increased to $2,448 million, a 3.7% year-over-year growth[15] - The total revenue for the residential connectivity segment was $8,620 million for the three months ended December 31, 2024, with a constant currency increase of $36 million[53] - The total revenue for the business services connectivity segment remained stable at $2,361 million for the three months ended December 31, 2024, with no significant changes year-over-year[53] Capital Expenditures and Investments - Capital expenditures rose 17.9% to $3.9 billion in Q4 2024, with significant investments in scalable infrastructure and the construction of the Epic Universe theme park[7][10] - Capital expenditures for the twelve months ended December 31, 2024, were $12,181 million, a slight decrease from $12,242 million in 2023[40] Cash Flow and Assets - Comcast's total current assets increased to $26,801 million in 2024 from $23,987 million in 2023, representing an increase of 11.8%[42] - Comcast's cash, cash equivalents, and restricted cash at the end of the period increased to $7,377 million in 2024 from $6,282 million in 2023[41] - The company reported a net cash provided by operating activities of $27,673 million for the twelve months ended December 31, 2024, down from $28,501 million in 2023[40] Other Financial Metrics - The company anticipates continued growth in enterprise solutions and small business customer segments, driven by higher average rates[16] - The equity in net income losses of investees improved to $141 million for the three months ended December 31, 2024, compared to a loss of $377 million in the same period of 2023[50] - The total operating expenses for the three months ended December 31, 2024, were $11,782 million, an increase of $80 million compared to the same period in 2023[53] - The total investments, net of tax, for the three months ended December 31, 2024, were $220 million, a significant recovery from a loss of $286 million in the same period of 2023[50]