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Below is an ongoing record highlighting notes from select CMCSA investor presentations and earnings calls (newest content shown first).

UBS Conference, 12/4/2018


Interview with Mike Cavanagh, Chief Financial Officer

Divergent View Summary: Mike Cavanagh expressed confidence in the underlying momentum of broadband (and believes xFi can be as big of a driver to broadband as X1 was to video), expressed satisfaction with progress of its mobile MVNO, and indicated that the drivers that have led to margin improvement and capex intensity improvement are not one-off items.  Cavanagh does not believe 5G is a threat to broadband anytime soon.

  • Update on how you view the current portfolio of businesses?
    • Cable is a growing business and outlook is for that to continue. Added 1mm customers in last twelve months.  Doing a very good job in high speed data
    • Doing a great job with mobile and business services, which are two big growth opportunities
    • NBC – TV businesses are well positioned with growth ahead, Parks – have invested a lot in it, Film – shift into more animation will present some good opportunities
    • Sky – very positive on market potential, brand, and growth potential
    • Putting it all together, think we are a unique company and will be able to navigate well in a changing environment
  • Cable – what’s driving the acceleration in broadband?
    • It starts with our investment in that product in the form of speed and capacity. Have also invested in the equipment in the home, gateways, wifi pods which improve the experience
    • Power users are at around 600 gigs per month and connecting 20 devices in the home
    • Customer expectations going up for what broadband should be
    • Go to market strategy – increasing emphasis on broadband being the center of the product and attaching other things around it
    • We are taking market share and penetration of broadband nationally is still only at 80%
  • How big of a role is xFi playing? Can it be as big of a driver as X1 was for video?
    • We think it can be. We know there are ways to improve the experience of wifi in the home such as turning off wifi with a click of a button during dinner time.  It’s all about increasing the utility of the broadband pipe
  • 5G – how do you see the threat from 5G to the broadband franchise?
    • Nothing that we’ve seen has caused us to alter our view that the threat of 5G to broadband is not significant anytime soon
    • Our network is fantastic for meeting the needs of our consumers at very good economics
    • We think HFC networks is going to be the best network for delivering high speeds and capacity for a long time. Hard to imagine 5G being a broadly addressable solution for residential in the United States
  • How important is video to the cable franchise?
    • It is important. We are proud of what we’ve done with X1 and aggregating content such as Netflix and Amazon Prime (coming)
    • X1 experience along with broadband pipe is the premier video experience especially when considering our openness to integrate other sources of video, not just or own
  • What is driving better video sub additions and trajectory of video?
    • Video has been competitive for quite awhile due to new OTT services along with the traditional video players, so we are in a continued competitive video marketplace
    • Trailing twelve months, we lost 2% of our video sub count, which gets a lot of fanfare when those numbers are quoted
    • We aren’t going to chase unprofitable video subs
  • Business segment
    • $7Bn annualized revenue with 10-11% video growth
    • Early push into enterprise – there are a lot of big businesses with local market needs such as bank branches, fast food restaurants, retailers
    • Feel good about the growth ahead of us in enterprise
    • In our footprint alone, there business services is a $40Bn market and we are at $7Bn
  • Wireless – how is Xfinity mobile performing in terms of growth/profitability and affect to cable franchise?
    • Ended last quarter with 1mm lines. Still early days, but encouraged by what we see
    • It is resonating with customers in terms of the packaging, enabling customers to save money while also being on a superior wireless network
    • Once we pass a certain number of subs, will become profitable on a standalone basis and we think that’s possible
    • Additional products have lowered churn in existing business historically and that is our expectation
  • Is MVNO sustainable?
    • We control packaging and pricing, branding, consumer experience, which is a great situation for us
  • Appetite for spectrum?
    • We picked up some spectrum in last year’s auction given good prices
    • Haven’t decided on 3.5
  • 2018 had 100bps margin improvement and capex intensity decline 100bps – is that sustainable into 2019?
    • The things that are driving the outcomes we are seeing in terms of improved margins and capex intensity are not one-offs
    • Growth in broadband and business services which are high margin is constructive
    • 16/17 were big years on programming cost increases and 18 and next few years are more normal years
    • In-home equipment getting cheaper and more done in the cloud
  • Any changes to Sky strategy and investment plans?
    • It’s a good business and confident in its ability to grow maintain an important position in Europe
    • Sky has ability with their brand and consumer experience to broaden out what they offer and go deeper into the customer relationship
    • Pay TV has lower penetration so headroom for growth
    • Feel very good about Sky – recurring revenue streams, leading market position, global presence, technology bend of both Sky and Comcast
  • Further M&A in Europe?
    • Sky was unique. Our biggest priority is getting balance sheet back to where we want it to be
  • NBC – outlook for growth and profitability and need for a direct to consumer strategy to achieve growth?
    • Focus is on developing content around big events, sports, the Voice
    • Great results at MSNBC, World Cup on Telemundo, and the Superbowl
    • All these allowed us to grow EBITDA at 13% YTD
    • Some form of DTC will make sense for us but not going to just copy what NFLX has done
  • Film slate
    • 2019 has How to Train You Dragon and Pets 2
    • Dreamworks – strategy is to do two animated films per year with one original and one sequel
  • Balance sheet – 2.2x leverage still the goal?
    • Priority is to direct resources to get into range consistent with A credit rating (touch higher than 2.2x)
    • No buybacks in 2019

Third Quarter 2018 Earnings Call, 10/25/2018


  • Cable EBITDA growth of 7.6% was the fastest in 6 years and net cash flow increased by 15.6%
  • Added 288k in customer relationships driven by broadband additions, which was the best 3rd quarter customer addition in the past 10 years
  • Residential broadband and business services revenue collectively increased by 10%
  • Announced that 1 Gig Internet is now available to all 58mm homes passed
  • X1 is an unmatched user experience by aggregating everything from linear TV to Netflix to Youtube and soon, Amazon Prime Video
  • Over the last 12 months, have taken out 16mm calls handled by our agents and reduced 1mm truck rolls year over year
  • NBC Cable Networks and Broadcast EBITDA up 6% in 3Q
  • $178mm loss for Xfinity mobile
  • Have added 1.2mm net new residential broadband customers in the last 12 months
  • Net video residential losses of 95k in the quarter
  • Added 228k mobile lines, ending the quarter at over 1mm customer lines
  • 4% increase in programming cost for the quarter
  • We now expect to be toward the high end of our guidance of 50 to 100 basis points of margin expansion
  • For the full year, we now expect the reduction in capital expenditure intensity to be towards the high end of our guidance of 50 to 100 basis points
  • NBCU EBITDA declined 8.5% due to a tough comparison on Film and a 6.5% decline in EBITDA from theme parks due to natural disasters that affected attendance at the Osaka theme park in Japan
  • Generated $3.1Bn of free cash flow in the quarter
  • Expect to repurchase $5Bn of stock in 2018
  • Following acquisition of Sky, net leverage is 3.5x and committed to returning to leverage levels consistent with ratings in 18 to 24 months
  • Will pause stock buybacks in 2019
  • Q&A with Sell-Side Analysts
  • We have a long roadmap of things to come with X1, which will include other applications such as music, gaming, home automation. We are processing 2.1Bn voice commands through X1 each quarter
  • 363k broadband additions driven by solid churn. It is an attractive product and we are differentiating by having the best product in the market place.  Consumers have real appetite for broadband
  • Broadband ARPU up 4.5% shows the value of broadband. Our penetration of broadband is 46.5% and the overall market is 80% so the market still has room for growth
  • Margins – our focus is on solving customer problems before they happen. Taking calls and truck rolls out of the business removes unnecessary cost from the business and believe we have good runway for improvement (as far as improving customer experience)
  • Presentation on Sky
  • Sky is Europe’s leader in entertainment and communications
  • Sky is not just an aggregator of content but has scale in both direct to consumer distribution and content itself
  • 27mm customers
  • Launched Sky over IP which opens up 6mm households that do not want to receive their TV signal through a satellite dish
  • Scale Sky Mobile in UK which was launched 18 months ago and added 650k customers to date
  • Comcast and Sky will be a broadly diversified global leader across video, broadband, content, and distribution
  • Combined company is the largest fixed broadband provider in developed economics
  • Combined company is the largest pay TV operator in developed economics
  • Q&A with Sell-side Analysts
  • How did you get comfortable with the price paid for Sky?
    • We do think Sky stock was mis-priced. Maybe it was because it was due to M&A flux, regulatory uncertainty, a large shareholder, etc.
    • Disney bid 10% less than CMCSA
    • On a standalone basis, was undervalued, but together, the combined businesses worth even more
  • Is Sky at full scale? Anything Sky can leverage from CMCSA?  Both CMCSA and Sky spend a lot of money on software, what kind of upside could we see on this front?
    • There is absolutely an opportunity for better scale…real opportunity is with innovation, purchasing, new products, etc