Comcast Corp (NASDAQ:CMCSA) Q1 2018 Earnings Conference Call - Preliminary Transcript

Apr 25, 2018 • 08:30 am ET


Comcast Corp (NASDAQ:CMCSA) Q1 2018 Earnings Conference Call - Preliminary Transcript


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Good morning, ladies and gentlemen, and welcome to Comcast's First Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Please note that this call is being recorded.

I would now turn the call over to Senior Vice President, Investor Relations, Mr. Jason Armstrong. Please go ahead, Mr. Armstrong.

Jason S. Armstrong

Thank you, operator, and welcome, everyone. Joining me on this morning's call are Brian Roberts, Mike Cavanagh, Steve Burke and Dave Watson. Brian and Mike will make formal remarks and Steve and Dave will also be available for Q&A.

As always, let me now refer you to Slide Number 2, which contains our Safe Harbor disclaimer and remind you this conference call may include forward-looking statements, subject to certain risks and uncertainties. In addition, in this call, we will refer to certain non-GAAP financial measures. Please refer to our 8-K and trending schedules for the reconciliations of non-GAAP financial measures to GAAP.

With that, let me turn the call to Brian Roberts for his comments. Brian?

Brian L. Roberts

Thank you, Jason, and good morning, everyone. We were off to a terrific start in 2018 with first quarter revenue growth of over 10% and healthy EBITDA, earnings per share and free cash flow. I'm really proud of these results, which reflect strength across all parts of Comcast NBCUniversal. We have such a special company with a collection of scaled businesses, each executing at a high level and substantial opportunities for continued growth led by our margin accretive segments. We have a business model that works well, and we see more and more of our peers attempting to pivot towards a similar strategy of integrating distribution and content. We think our team has done a great job of this, particularly with NBCUniversal, as you can see in today's results.

This successful execution led us to make an announcement earlier this year that further strengthens this strategy with our proposal for Sky. This morning, we're excited to take the next logical step with a formal binding cash offer for Sky. The terms are consistent with what we already outlined in our 2.4 announcement and Mike will provide some additional color on this later. So let me turn now to our strong first quarter results.

Starting with Cable, our connectivity businesses, including residential broadband and business services are now at a nearly $24 billion annualized revenue run rate combined, growing over 9% with significant runway ahead. We are confident in our outlook for high-speed Internet subscribers as the total market continues to grow our homes and businesses past steadily increase and our focus on product innovation and differentiation through speed, coverage and control elements enables us to continue to grow and take share.

In business services, we're making nice strides in our newest segment serving enterprise customers and also continuing to gain in the small and mid-size business space with superior products and attractive value proposition. We have built an incredible organization within our company with over 10,000 employees dedicated to our business