Logo of jester cap with thought bubble.

Image source: The Motley Fool.

DATE

Thursday, April 23, 2026 at 8:30 a.m. ET

CALL PARTICIPANTS

  • Chairman and Chief Executive Officer — Brian L. Roberts
  • President and Co-Chief Executive Officer — Michael J. Cavanagh
  • Chief Financial Officer — Jason S. Armstrong
  • President, Connectivity and Platforms — Steve Crony
  • Head of Investor Relations — Marci Ryvicker

Need a quote from a Motley Fool analyst? Email [email protected]

TAKEAWAYS

  • Revenue -- Increased 11%, partially driven by NBCUniversal's airing of the Milan Cortina Winter Olympics and the Super Bowl; excluding these events, revenue grew by low-single digits.
  • Adjusted EBITDA -- Declined 9%, with pressure attributed to elevated costs including the first-year impact of the new NBA contract and investments in broadband go-to-market initiatives.
  • Earnings Per Share -- Reported at $0.79 for the quarter.
  • Free Cash Flow -- Generated $3.9 billion, with $2.5 billion returned to shareholders through $1.25 billion in share repurchases and $1.2 billion in dividends.
  • Broadband Subscriber Losses -- Narrowed by 117,000 year over year to 65,000, with over half of the improvement attributed to Legendary February promotions and the remainder from new strategies and operational gains.
  • Broadband ARPU -- Declined 3.1%, reflecting lack of a rate increase, migration to simplified pricing, and uptake of bundled free wireless lines; incremental pressure expected to continue in the next quarter.
  • Convergence Revenue -- Decreased 2.8%, with Convergence ARPA down 0.8%, as broadband revenue softness was partially offset by 15% wireless service revenue growth.
  • Wireless Performance -- Record net additions of 435,000 wireless lines, bringing total lines to 9.7 million and achieving 16% penetration of the domestic broadband base; nearly half of connects were free lines.
  • Premium Wireless Plans -- Accounted for approximately 30% of postpaid phone connects; premium customer base increased fivefold since launch with the introduction of Mobile Plus.
  • Parks Segment -- Revenue up 24% and EBITDA up 33%; adjusting for prior pre-opening costs at Epic, EBITDA rose more than 7%, with notable strength in Orlando.
  • Media Segment -- Revenue increased over 60% due to Olympics and Super Bowl, which contributed $2.2 billion of incremental revenue; excluding these events, media revenue grew 13%.
  • Peacock -- Added 2 million net new subscribers for a total of 46 million; revenue up more than 70% with EBITDA loss of $432 million; targeted to approach profitability next quarter.
  • Studios -- Global box office for The Super Mario Galaxy surpassed $750 million, driving franchise revenue to $2 billion.
  • Theme Parks Investment -- Opened Fast & Furious: Hollywood Drift in Universal Hollywood and planned to open the first kids park in Frisco, Texas; progress continued on new U.K. park and expanded Pokémon attractions in Japan.
  • Business Services -- Revenue advanced 6% and EBITDA increased 4%, led by Enterprise Solutions and upcoming launch of the T-Mobile MVNO for business customers.
  • Net Leverage -- Reported at 2.3x, with incremental increase expected as Versant exits from the calculation during the year; target remains to return to 2.3x.
  • Legendary February Impact -- Promotions and marketing around major events accounted for over half of the improvement in broadband subscriber loss.
  • Wireless Free Lines -- "In the early cohorts, we have seen a significant majority of those customers roll to paid, so we feel that will continue as more of these lines roll in the back half of the year. Yes, it will have a direct impact on broadband ARPU based on revenue recognition as those lines roll to paid in the back half of the year, and that will be a tailwind.
  • Fiber Overlap -- Approximately 55% of the residential broadband footprint now faces fiber-based competition.
  • Data Usage -- Residential monthly network data usage rose 10% compared to the prior year.

SUMMARY

Comcast Corporation (CMCSA +7.73%) emphasized its company-wide strategic realignment, citing tangible early progress following the Versant spin and management changes. Parks performance was driven by Epic in Orlando and new park initiatives in the U.S. and U.K, while international parks faced pressure from China-related travel and macro conditions in Beijing. A company-wide promotional push during Legendary February materially shaped quarterly broadband and media outcomes, exemplifying the combined power of content and connectivity assets. Record wireless net additions, an expanded premium product suite, and a successful free-line conversion strategy underpin the firm's convergence push, with key wireless monetization expected to accelerate in the coming quarters. Looking ahead, management highlighted ongoing capital allocation discipline, incremental cost pressures from NBA rights, and an expectation for ARPU stabilization and Peacock profitability as the year progresses.

  • Management stated, "Our six major growth drivers now represent well over 60% of total company revenue, up from 50% when we introduced this framework three years ago."
  • Jason S. Armstrong highlighted, "Our Convergence ARPA, or average revenue per account, currently stands at roughly $85," while noting that telecom competitors are approximately double.
  • Executives confirmed that "About 30% of our line net adds are coming from existing mobile customers adding more lines," reflecting deeper engagement across the broadband base.
  • The domestic parks business was described as unaffected by elevated oil prices or declines in consumer sentiment to date, while international attendance continues to lag pre-pandemic levels.
  • Peacock set a Winter Olympics streaming record with 16.7 billion minutes viewed, more than double all prior Winter Games combined.

INDUSTRY GLOSSARY

  • Convergence Revenue: Aggregate of broadband revenue and wireless service revenue as reported for bundled customer relationships.
  • ARPA (Average Revenue Per Account): The average revenue per customer account, inclusive of bundled broadband and wireless services.
  • MVNO (Mobile Virtual Network Operator): An operator that provides mobile services by leasing capacity from an existing wireless network rather than owning physical infrastructure.
  • Legendary February: Internal company term referencing the promotional period anchored by the Milan Cortina Winter Olympics, Super Bowl 60, and NBA All-Star Game, cited as a key driver of Q1 results.

Full Conference Call Transcript

Brian L. Roberts: Good morning, and thanks, Marci Ryvicker. We are off to a good start. We have taken a hard look at both where the market is and how we are performing and made some real changes. With our new leadership structure, Mike is Co-CEO, taking the day-to-day lead on improvements, and Steve is off to a fast start fully running Connectivity and Platforms. I really like our team. Steve has brought in key new talent and has quickly aligned a lot of the operations. Equally important, we have better aligned everyone across the entire company around a clear set of priorities, with a sense of urgency to work in harmony toward the important company-wide initiatives.

We have gone top to bottom in the businesses looking at how we operate, how we serve customers, and where we need to reset. As you will hear from Mike, Jason S. Armstrong, and Steve, it is still early, but the initial results are encouraging. We are starting to see signs that our efforts are working and we are shifting the businesses in the right direction. I am also convinced that we have absolutely the best products in each of our markets. The opportunity in front of us now is making sure customers really see that and feel it in every experience and touch point.

There is a real energy across the company now to work together in different ways to take advantage of the big moments we have. Whether it is the mobile launch we just announced, the Olympics, the Super Bowl, or Xfinity's new membership program, these are opportunities to show up for consumers in a way that only Comcast Corporation can, and connect that across all of our growth businesses. Net-net, I feel encouraged about where we are. We have got the right leaders. We are making meaningful but important improvements. I feel good about these early results. Mike, over to you.

Michael J. Cavanagh: Thanks, Brian L. Roberts, and good morning, everyone. Our focus as we begin 2026 is on executing against the priorities Brian L. Roberts just highlighted. We are just one quarter into the year but are pleased with the progress, so let me highlight some of the first-quarter achievements. First, despite what remains an incredibly intense competitive environment, broadband net losses improved by more than 100,000 year over year, the first year-over-year improvement since 2020. We also delivered the best wireless net additions of any quarter in our history. Together, these are early signs that the strategic pivot we have made in our connectivity business is underway.

Second, in Parks, another area of consistent and disciplined investment, we generated healthy underlying EBITDA growth driven by robust consumer demand at Epic Universe. Third, we had a real company-wide moment with Legendary February. We outperformed across audience, engagement, and monetization, and importantly, we leveraged this massive reach to market our connectivity products at scale, a proof point that when we really lean in, we can move the needle. Stepping back, this was our first quarter post Versant, and we are already seeing the benefits of a more focused portfolio.

Our six major growth drivers now represent well over 60% of total company revenue, up from 50% when we introduced this framework three years ago, supported by consistent organic investments and deliberate portfolio actions, including the spin of Versant Media. Now going deeper on our Connectivity and Platforms business, the competitive environment remains intense. Fixed wireless continues to market aggressively across our footprint, fiber overbuild is moving at a rapid pace, and promotional convergence offers remain elevated. We are not assuming this gets easier anytime soon. Against that backdrop, we are investing to compete effectively, whether it is against fixed wireless, fiber, or any other alternative such as satellite.

To do this, we are staying focused on what we can control and what matters most to consumers: exceptional connectivity powered by the most reliable WiFi, best-in-class products, and a simpler, more transparent experience that is easy to buy, activate, and support. Our confidence is building in the strategy and actions that are underway, including the execution of our go-to-market shift that we amplified through the reach of our sports portfolio. We aligned the full company across Xfinity and NBCUniversal around clear offers, focused messaging, and sharper targeting, and we saw that combination contribute to improved broadband and wireless performance this quarter.

We also used these tentpole moments to launch real-time 4K, a meaningful differentiator enabling us to deliver live sports with lower latency and at a higher quality than our competitors. We continue to see our customers consume more video online, which is driving network demand higher, with monthly data usage on our network up 10% this quarter. Given the scope of the changes we have made across the business, the early signs of progress are encouraging: connect volumes are up for the first time in more than four years, voluntary churn continues to improve, and NPS is moving in the right direction.

Customers are responding to our go-to-market strategy, with roughly 40% of our residential broadband base already on our simple, transparent packaging, and the majority still expected to migrate by year end. Wireless is a central lever in our convergence strategy. It increases engagement, reduces churn, and strengthens customer lifetime value. Wireless accelerated meaningfully this quarter even as the competitive environment remains intense, and we like what we are seeing both in the momentum we are generating and in the quality of the customer relationships we are building. Our free line offer continues to perform well and is doing exactly what we intended: building awareness, increasing attachment, and expanding the top of the funnel across our broadband base.

We are managing that base of customers with a clear lifecycle playbook focused on usage, engagement, and the overall product experience, with the goal of converting a meaningful portion to paid relationships starting in the second half of the year. At the same time, we are gaining traction in premium wireless. We launched Premium Unlimited a year ago to broaden our offering for customers who want a more feature-rich mobile experience, including unlimited talk, text, and data in the U.S. and internationally. Since launch, adoption has increased meaningfully. Uptake is now around 30%, and the premium base is up roughly fivefold. We are building on that momentum with Mobile Plus, our new premium plan we launched just yesterday.

Mobile Plus includes everything customers already value and adds lifetime device protection for all devices. We are the first in the industry to include this feature at no additional charge as part of the core offering, a disruptive shift away from the traditional pay-per-device model used by incumbent carriers. Mobile Plus strengthens our value proposition and reinforces our product and pricing advantage. Shifting to Content and Experiences, Legendary February was a remarkable 17-day stretch for our media business. More than 225 million Americans watched across the Milan Cortina Winter Olympics, Super Bowl 60, and the NBA All-Star Game. That scale drove record advertising sales, roughly $2 billion over the 17 days, and helped accelerate momentum at Peacock.

We added 2 million net new subscribers in the quarter, with revenue up more than 70%, putting Peacock on track to approach profitability for the first time next quarter. The Olympics continue to be a meaningful differentiator for us. Milan Cortina was the most-watched Winter Games since Sochi, averaging 23.5 million viewers. Peacock streamed a record 16.7 billion minutes, more than double all prior Winter Games combined. NBC closed out primetime number one on the closing ceremony night, marking our 143rd consecutive Olympic night at the top. The Super Bowl averaged 125 million viewers, the most watched in our 100-year history and the second most watched program ever.

The NBA All-Star Game delivered its largest audience since 2011, with 8.8 million viewers across NBC, Peacock, and Telemundo, peaking at 10 million. Turning to Studios, we are off to an exceptional start with Nintendo and Illumination's The Super Mario Galaxy movie, which has crossed $750 million globally, the biggest title of the year worldwide, and the franchise has now grossed $2 billion at the global box office. We have a strong lineup for the rest of the year with Steven Spielberg's Disclosure Day, Illumination's Minions and Monsters, Christopher Nolan's The Odyssey, and Universal's Fucker-in-Law, among others. Lastly, at Parks, Orlando continues to perform extremely well with Epic driving strong resort attendance and higher per-cap spending.

We are continuing to invest behind a pipeline of growth. This year, we opened Fast & Furious: Hollywood Drift in Universal Hollywood, and our first-ever kids park in Frisco, Texas this summer. Internationally, our U.K. park is progressing through final planning approvals as site stabilization begins, and we are building on our strength in Japan with immersive Pokémon experiences. With that, let me turn it over to Jason S. Armstrong.

Jason S. Armstrong: Thanks, Mike, and good morning, everyone. Let me start with a high-level overview of our consolidated results and then get into more detail on our businesses. Before I begin, I want to note we recently issued updated pro forma trending schedules we filed in early March. The most significant change is the removal of Versant from our financials, along with a few smaller updates within Connectivity and Platforms and Content and Experiences. As a result, when I refer to our results today, all year-over-year comparisons will be presented on a pro forma basis. In the first quarter, revenue increased 11%, in part benefiting from NBCUniversal's highly successful airing of the Milan Cortina Winter Olympics and the Super Bowl.

Excluding these events, revenue was up low-single digits. As we have discussed, this is an investment period for us. We continue to execute our broadband go-to-market pivot and customer experience improvements with the goal of stabilizing our customer base and returning the category to revenue growth over time. At the same time, we are absorbing the full cost of the first year of the new NBA contract in Content and Experiences, and this quarter included the peak dilution from that. As a result, adjusted EBITDA declined 9%, earnings per share were $0.79, and we generated $3.9 billion of free cash flow in the quarter, of which we returned $2.5 billion to shareholders, including $1.25 billion in share repurchases.

Now turning to our businesses and starting with Connectivity and Platforms. As we have consistently emphasized, we made a decisive and strategic pivot in this business to position ourselves more competitively within the evolving broadband market. This transformation has been a comprehensive shift: we prioritized simple and transparent pricing, dialed up our investments in both current and future customer experience, and doubled down to ensure our network and product offerings remain best in class. Another significant change has been how we are leveraging wireless to support enhanced broadband, far more expansively than we have in the past. The encouraging news is that the early indications suggest this pivot is not only gaining traction, but is absolutely the right move.

Our new go-to-market offerings are clearly resonating with customers. For instance, this quarter, we saw a notable improvement in broadband performance, narrowing our losses by over 100,000 versus the prior year, while simultaneously achieving record wireless net additions, accompanied by a meaningful improvement in how our customers perceive and rate us as measured through Net Promoter Scores. Of course, with any major strategic shift, there are inevitable costs. Simplified pricing and the inclusion of bundled free wireless lines have put pressure on broadband ARPU and, as a result, have also weighed on EBITDA growth, which is evident in our 4.7% decline this quarter.

We were transparent about this last year, flagging that these pressures would intensify into the early part of this year, including the quarter we are reporting now, and some incremental pressure in the second quarter. That expectation remains unchanged. However, we anticipate some relief as we exit this year, particularly as we begin to lap the initial investment pressures and monetize the free lines at the one-year anniversary mark of the start of our free line rollout. Looking ahead, like others in the industry, a key metric for success is increasingly shifting toward consumer purchase intentions around bundled broadband and wireless offerings.

To support this, you will notice in the trending schedules we published in March, we started to break out wireless revenue into service and equipment revenue, and we are now grouping broadband revenue and wireless service revenue together into a new convergence revenue view. Our Convergence ARPA, or average revenue per account, currently stands at roughly $85. For context, our telecom competitors are roughly double this amount on the same metric. This underscores the significant growth opportunity in front of us, especially as we stabilize broadband and look to accelerate growth through wireless. Now the quarter details. Broadband subscriber losses improved by 117,000 year over year to 65,000.

This improvement reflects traction from our new go-to-market strategy, including improved connects year over year, lower voluntary churn, a step-up in take rates on gig-plus speeds, and the continued uptake of our free wireless line offer. In addition, we leaned into the unique moment that Legendary February created across our company by amplifying Xfinity brand awareness on a national platform, with particular emphasis on gig speeds and our five-year price guarantee. We estimate these specific offers accounted for over half of our year-over-year improvement in subscriber losses. Broadband ARPU declined 3.1%.

This is consistent with the pressure we signaled on our fourth-quarter call and reflects the absence of a rate increase at the beginning of the year, our new go-to-market pricing including the Legendary February offers, and the impact from strong adoption of free wireless lines, which initially has a dilutive impact on broadband ARPU. We expect incremental pressure on broadband ARPU for another quarter until we start to anniversary early go-to-market transition efforts, as well as the impact of free lines starting to roll into paying relationships, which will happen in greater volumes as we exit this year.

Convergence revenue declined 2.8%, with Convergence ARPA down 0.8%, reflecting the pressure on broadband revenue and partially offset by 15% growth in wireless service revenue. We added 435,000 net wireless lines, our strongest quarter on record, with nearly half of our residential postpaid phone connects coming from customers taking a free line. We are deliberately leaning in, as our free line offer expands awareness and ultimately widens the base of customers we can drive into paying relationships. We also continue to see a strong uptake in our new premium unlimited wireless plans, accounting for about 30% of our postpaid phone connects, reinforcing that we are competing effectively in the higher-value segment of the wireless market.

We ended the quarter with 9.7 million total lines at 16% penetration of our domestic residential broadband customer base. Looking ahead, in the second half of the year, many of the free lines will come up for monetization. Early engagement and usage trends are encouraging in that respect, and we expect to convert the significant majority of free lines into paying relationships, which should provide a tailwind to Convergence revenue and ARPA growth over time. Turning to Business Services, revenue grew 6% and EBITDA increased 4%. Growth continues to be driven by strong momentum at our Enterprise Solutions business, as we add customers and deepen our relationships through a strong mix of advanced solutions.

Looking ahead, we are excited to expand our business mobile relationships through the launch of our T-Mobile MVNO, which adds another differentiated capability to the portfolio as we compete for business customers at every level. In Content and Experiences, a few items to highlight. At Theme Parks, we delivered another quarter of strong growth, with revenue up 24% and EBITDA increasing 33%. Adjusting for roughly $100 million of pre-opening costs at Epic in last year's first quarter, Parks EBITDA grew over 7%. Under the hood, we had very strong growth in Orlando, where Epic continues to drive higher per-cap spending and attendance across the entirety of the resort. We are really pleased with Epic's performance since its launch.

It is expanding the overall guest experience and helping to position Universal Orlando as a true weeklong destination. Partially offsetting strong growth in Orlando is some pressure at our other parks. Specifically, in Osaka we are seeing some impact from China-related inbound travel trends, putting pressure on attendance, and in Beijing we are navigating a more challenging macroeconomic environment. Turning to Media, revenue increased over 60%, including strong contributions from the Milan Cortina Winter Olympics and the Super Bowl, which together drove $2.2 billion of incremental revenue. Excluding those events, media revenue growth remained strong, up 13% driven by 21% growth in distribution and 5% growth in advertising.

The strong growth in distribution was driven by Peacock, with paid subscribers up 5 million year over year and 2 million sequentially, reaching 46 million. In advertising, underlying demand remained solid, supported by a record upfront and a strong sports lineup, including the NBA. In the second quarter, we will continue to benefit from sports, including the NBA Playoffs and the FIFA World Cup on Telemundo and Peacock. Media EBITDA was a loss of $426 million, consistent with the dilution we have been expecting in the first season of the NBA as we straight-line the amortization of these rights with quarterly seasonality driven by game counts.

The first quarter was the peak volume, with about 50% of the games played and the corresponding costs flowing through, so as a result, this quarter represents our peak EBITDA dilution from NBA costs. This dynamic flowed through to Peacock as well; EBITDA losses were $432 million. Importantly, we expect the setup to improve from here, with second quarter reflecting a meaningful inflection point, with Peacock expected to approach profitability. So stepping back, the first quarter was the high watermark for NBA-related dilution for Media, and we feel good about the direction from here. At Studios, we had really strong growth this quarter.

This was in large part driven by content licensing deals led by the successful renewal of The Office on Peacock. While that benefits Studios this quarter, it drives larger eliminations at the C&E level. Now let me wrap up with free cash flow and capital allocation. In the first quarter, we generated $3.9 billion of free cash flow. We did that while continuing to invest meaningfully across our businesses, including the broadband go-to-market pivot and customer experience work in Connectivity, further strengthening our domestic broadband network, and onboarding the NBA. Stepping back, our capital allocation framework has been and will continue to be balanced and consistent.

With the Versum spin now complete, our portfolio is more streamlined, and our capital priorities continue to start with investing organically behind our growth drivers. We ended the quarter at 2.3x net leverage. Just as a reminder, leverage is calculated on a 12-month trailing basis, so as Versant exits the calculation over the course of this year, we expect leverage will tick up a bit. As I said last quarter, our intention is to bring leverage back to 2.3x. We continue strong capital returns to shareholders. This quarter, we returned $2.5 billion, including $1.25 billion of share repurchases and $1.2 billion of dividends.

Over the past 12 months, we have returned $11 billion to shareholders, which includes a significant and well-above-market dividend yield along with strong and methodical share count reduction. This balanced approach has served us well, and it continues to guide how we allocate capital as we execute through this transition period. With that, let me turn it over to Marci Ryvicker for Q&A.

Marci Ryvicker: Thanks, Jason S. Armstrong. Operator, let us open the call for Q&A, please.

Operator: Thank you. We will now begin the question-and-answer session. If you have a question, please press star then the number one on your touchtone phone. If you wish to be removed from the queue, please press star then the number two. If you are using a speakerphone, you may need to pick up your handset first before pressing the numbers. Our first question today is coming from Craig Moffett from MoffettNathanson. Your line is now live.

Craig Moffett: Hi. Thank you. I guess the obvious place to start is with broadband. Your broadband ARPU rate of decline actually moderated sequentially a little bit. I wonder if you could elaborate on how much lower you think broadband ARPU might have to go to maintain the kind of stabilization that you have seen. Then if you could broaden the lens to talk about where the improvement came from. Was it relative to FWA? Was it relative to fiber? Was it relative to all of the above?

Steve Crony: Thank you for the question, Craig Moffett. As Jason S. Armstrong said, and as we previously highlighted, broadband ARPU pressure would intensify in the early part of the year. We do see some incremental pressure in Q2, but we expect relief as we exit the year. The primary drivers of the decline include the absence of a broadband rate increase, free wireless lines, and migration to our simplified pricing. We were not competitive enough, and we needed to adapt our approach and pivot the business. Our focus is on getting to the other side of this as soon as possible.

A few areas where we see improvement: our continued mix shift to higher speed tiers—we are seeing a significant improvement in our gig-plus tier speed mix; higher mobile attachment—2025 was our best year in mobile line net adds, and Q1 was our largest quarterly net adds on record; we are seeing the early cohorts of our free line conversion and expect a significant majority of those to convert to paid relationships, which will accelerate in the back half of the year. We have launched new premium products, and we are very happy with the sell-in on the mobile side. We also maintain pricing flexibility, so we can adjust the rate and acquisition pricing as the market evolves.

We will lap the period of elevated transactional activity tied to planned migrations, and we expect those volumes to normalize over time, reducing our dilution. In reference to your second question, overall, I have four key objectives: improving broadband performance year over year, driving higher mobile penetration, creating better customer outcomes, and returning to revenue and EBITDA growth. We are encouraged by Q1. We saw benefit across all of our competitive environments, and we saw both connects and disconnects improve. Jason S. Armstrong highlighted that a little over half of the improvement was tied to our investment in Legendary February. That was a unique opportunity, and we took advantage of it. Foundationally, our new pricing and packaging is resonating.

We are supported by clear messaging, better creative, and greater awareness across our prospects and our base. We are leveraging our data more effectively than we ever have, using AI to improve transactional outcomes—we are currently running hundreds of models with thousands of attributes to optimize our acquisition, upsell, win-back, and retention. We are enhancing our marketing tech stack to enable greater customization and personalization. We continue to focus on the customer experience and are driving improvements across the entire customer lifecycle, including simplified buy flows, simplifying our activation, focusing on same-day order-to-activation with broadband, improving our unassisted channels, taking out customer effort, and continuing to improve reliability across the network.

We are seeing early and measurable progress in NPS, and we are hyper-focused on sales effectiveness with a new head of sales focused on development, training, staffing, compensation, and tools. In summary, we are building a more stable customer base with our new pricing and packaging, seeing higher gig-tier mixes, accelerating mobile attach, and higher NPS—all of which will benefit us into the future. On the FWA versus fiber part, we saw improvement across all of our competitive environments.

Michael J. Cavanagh: Craig Moffett, I would just add that the improvements are equal parts execution and then leveraging the totality of the company. On the execution side, as Steve Crony said and as I said in prepared remarks, our connect activity was better, our churn activity was better, and customer perception of us was better. Amplifying across the company through Legendary February is more of a one-off event; we will look for opportunities to do that again, but the full weight of the company helped in the quarter.

Marci Ryvicker: Thanks, Craig Moffett. Operator, next question please.

Operator: Certainly. Next question is coming from Michael Rollins from Citi. Your line is now live.

Michael Rollins: Thanks, and good morning. Could you expand further on some of the success you are seeing in wireless in terms of moving up into larger families? You mentioned the business opportunity coming up with the new MVNO. Within this context, what is Comcast Corporation doing to simplify the migration process for customers? If carriers start to pull back on subsidies and your competitors do less on that, does that help you get a better hit rate to move customers over to Xfinity Mobile?

Steve Crony: Good question, Michael Rollins. I strongly believe we have the right to compete and win in mobile. We have two strong MVNOs covering consumer and broadband. We have the largest converged footprint and the nation's largest WiFi network. We offload about 90% of XM traffic. We have lower acquisition costs because we are selling to our base. With continued operational focus, Q1 was our largest line net-add quarter since launch. We have rallied the organization around mobile, which has helped create awareness and improve sales effectiveness. We are doing a much better job in lifecycle management. About 30% of our line net adds are coming from existing mobile customers adding more lines, which is really important.

We are focused on continuing to improve the customer experience across the entire lifecycle. As has been the case the last few quarters, about 50% of our line connects are free lines, and we are pleased with the early retention rates for the free line roll-off. On top of that, we have the T-Mobile MVNO launching in the near future, bringing mobile availability to our mid-market and enterprise customer base. On subsidies, we primarily compete on price and value. We will use subsidies selectively—new product launches and key moments—and target throughout the lifecycle. Regarding premium plans, we launched about a year ago to compete for customers wanting a feature-rich product.

About 30% of our connects are premium customers, and as of yesterday, we launched a new premium plan with device protection included. We think that is a significant differentiator. It should help our premium upsell and conversion rates. Overall, with our MVNO relationships, it is a capital-efficient model with a cost structure that supports a profitable value proposition. At about 16% penetration, we have a long runway. I am very bullish.

Michael J. Cavanagh: I will just pile on. If you look at the journey over multiple years in mobile, it has been a steady compounding effect of improving the products—from by-the-gig and a focus on a certain type of household at the beginning to now being fully competitive up to the top of a household's needs at the higher end. Steve Crony has brought focus to attaching mobile, using free lines, and being hyper-focused this year on processes and lifecycle management to ensure strong conversion to paid. Once that happens, we do a nice job getting paid mobile customers to add more lines. This is not a fleeting moment; we have been steadily building and letting the effect of our progress compound.

Marci Ryvicker: Thanks, Michael Rollins. Operator, next question, please.

Operator: Certainly. Our next question is coming from John Christopher Hodulik from UBS. Your line is now live.

John Christopher Hodulik: Great. Thanks. Two, if I may. First for Steve Crony. From Jason S. Armstrong's comments, it sounds like about half of the year-over-year improvement in broadband subs was due to the Legendary February promotions, and half was organic based on some of the efforts you have had. If we expect those efforts to gain more traction through the year, can we expect the high-speed data subscriber losses for the year to improve versus last year? Second, maybe for Brian L. Roberts. We spent about a year talking about media consolidation, but conversations have shifted toward cable consolidation. What are your thoughts on the potential landscape and regulatory framework for further consolidation in the cable industry?

Steve Crony: Thanks for the question, John Christopher Hodulik. Yes, we do expect improvement year over year, but more than half of the benefit in Q1 was tied to Legendary February. We really leaned into that from a marketing investment and an offer investment. It was a great moment, and we took advantage of it.

Brian L. Roberts: Let me start, and maybe Mike will jump in as well. I am really pleased, as I said in my opening, with the energy. I think you can feel it in the team. In the broadband business, I think, frankly, we have corrected and perhaps there has been way too much negativity. We have a great company, and we are going to operate even better in the months and quarters ahead. That is the plan of record. Part of that is believing in the assets we have. We made the change with Versant, and I think we feel really good about it.

As we said on the last call, if we can find ways to create shareholder value, the bar is high, but we are always focused on looking at those kinds of creative situations. That said, I really like the direction of the company and do not want to create a lot of distraction.

Michael J. Cavanagh: I think the opportunity we have, given the negativity around the cable segment and the changes we have made and the progress we are seeing, is a rich path to drive value. I think we are undervalued, and the negativity on the business is something we need to work on changing people’s sentiments toward—period, full stop. Doing that by continuing to run the play that Steve Crony articulated well is plan A. In addition, we have opportunities and have worked with others in the industry to partner around video or mobile or otherwise. There are ways to benefit ourselves through scale in partnership terms, and we are open to that. Ultimately, there are always bigger ideas that, as Brian L.

Roberts said, open strategic possibilities to create value. But the focus is on what we can do ourselves, and the list is long and underway.

Marci Ryvicker: Thanks, John Christopher Hodulik. Operator, next question, please.

Operator: Certainly. Our next question is coming from Jessica Reif Cohen from Bank of America Securities. Your line is now live.

Jessica Reif Cohen: Good morning. Turning to NBCU, as you all just said, your assets are more streamlined following the Versant spin, and you have locked in basically all major sports rights. As you look at your key assets—Universal Studios, Peacock, Theme Parks—they all seem strategically very important. How are you thinking about allocating capital across these assets? More importantly, what gives you confidence the returns will become more visible in your consolidated earnings over time? You said Peacock will be profitable next quarter—should we expect consistent profitability?

Michael J. Cavanagh: Sure, Jessica Reif Cohen. Zooming out, we feel great about NBCUniversal post-Versant, with each business—Parks, Studios, and Media—set up to be growers. In Parks, we are really pleased with the big initiative this year with Epic, and ahead of us is a U.K. park and expansions of the kids parks in the U.S., with more to come. The creative plans inside our Parks business to keep driving growth are strong, and we will recycle the capital they create back into the business over time to create value above our cost of capital. On Studios, we are off to a great start with Mario, and we have several great movies coming out the rest of this year.

We have been top two in the box office for the last three years, and I expect that to continue under our great leadership. That is part of the flywheel of creating franchises and feeding Parks, fitting right into what makes a media company great alongside Parks. On Media, now that we are post-Versant and first quarter out of the gate, we are very focused on making that business—NBC broadcast plus Peacock—work together. As Jason S. Armstrong said, Peacock should approach profitability in the second quarter. With straight-line amortization of NBA rights, as we look to the next season lapping itself, the prospect for ongoing and durable profitability for Peacock is what we have our sights set on.

Combined with linear NBC, we will manage Media based on the overall revenue opportunity across consumers and what they are willing to pay, marrying the power of broadcast—as we saw in Legendary February—with a streaming platform like Peacock. We have an elegantly designed Media business focused on three parts—Parks, Studios, and Media—that will work together for years to come, and we will be focused on driving value and putting capital to work against those opportunities.

Marci Ryvicker: Thanks, Jessica Reif Cohen. Operator, next question, please.

Operator: Certainly. Our next question is coming from Analyst. Your line is now live.

Analyst: Great. Thanks very much, team. You had alluded to satellite being a new thing to be concerned about. Could you compare and contrast the fixed wireless learnings versus the satellite learnings? Do you expect that to change meaningfully the way regulators could look at the definition of the market and, to John's question earlier, potentially have a more favorable view of larger-scale M&A in the cable sector?

Steve Crony: Thanks for the question. Our assumption is that the market will stay highly competitive—fiber, fixed wireless, and now satellite are getting more promotional. We focus on what we can control and what matters to the customer, anchored by the following: we have a great network that is on par with fiber and exceeds the capabilities of fixed wireless and satellite, both of which are capacity constrained. We are focused on price-value—our new go-to-market strategy and free wireless lines are resonating. We have a differentiated WiFi experience that ranks number one for reliability in our footprint, hugely important for customers. We are improving the customer experience with tremendous focus, turning a vulnerability into an opportunity where we can win.

From the customer's lens, broadband is incredibly relevant to their lives, with consumption growing about 10% year over year. That prioritizes a WiFi experience that leans into speed and reliability, and we stack up incredibly well there. Other customers prioritize simplicity—this is where fixed wireless did really well with ease of install and simple pricing. That is exactly where we have been investing, and I see no reason why we cannot win there as well. We have a great hand and either have a leadership position or a path to it on the things that matter most to our customers, and that is how we intend to compete no matter who the competitor is.

Brian L. Roberts: On the regulatory and consolidation angle, what you can count on us to do is to reevaluate the market, technology, and landscape as they evolve. I think the government will perhaps do that as well based on what actually happens in the years ahead. That is what we have done for 50 years. It is an opportunity to see this changing landscape, what opportunities open up, and what is real or not. What matters most is what Steve Crony said: control what we can control—make our customer experience better and make sure we have the absolute best product in as many customers’ homes as possible.

Then we will see where the market evolves, what doors that opens, and what situations that creates. Through changing landscapes over the last 50 years, we have positioned the company to grow, remain relevant, and return capital to shareholders. First order of business is to execute really well. That is what is so important about this quarter.

Marci Ryvicker: Thanks. Operator, next question, please.

Operator: Our next question today is coming from Analyst. Your line is now live.

Analyst: Hi, thank you for taking the question. Given some of the headlines we are seeing on a macro basis and consumer sentiment at all-time lows, any color you might be seeing domestically in the parks or from your ad partners? Are you sensing any tone shift that is translating to park attendance, etc.? You did talk about Epic driving high attendance and per caps. Then, as a housekeeping question: you said fiber builds are accelerating. Any update on where you stand today on fiber overlap across your residential footprint?

Michael J. Cavanagh: Sure. In terms of the macro and geopolitical factors and how they affect our domestic business, Jason S. Armstrong commented on some impacts on international parks from changing travel patterns. Inbound international travel to U.S. parks has not gotten back to pre-COVID levels; those factors continue to exist. Inside the U.S., domestic-to-domestic, we have not yet seen any significant impact in the Parks business caused by higher oil, but that does not mean it may not happen depending on the duration of higher gas prices and airline tickets. Thus far, we are not seeing a concerning pullback in current results; we will see what coming quarters look like. It is pretty much the same on the advertising side.

We had an excellent quarter just finished on advertising—one of the best ever—and underneath the special events we had during the quarter were strong baseline advertising results, which as we sit here now have sustained. The compelling nature of the Olympics pulls forward our relationship with advertisers; the same for NFL Sunday and the Super Bowl. As we look forward to LA, we have tremendous enthusiasm for how that could also keep the ecosystem robust. We have a good roadmap ahead. In reference to the second part of your question, fiber overlap is about 55%.

Marci Ryvicker: Operator, we have time for one last question.

Operator: Thank you. Our final question today is coming from Michael Ng from Goldman Sachs. Your line is now live.

Michael Ng: Hi. Good morning. I just wanted to ask about the wireless free-line-to-paid strategy in the second half. First, would you talk about what you have seen in the free line roll-off to date and the strategy that gives you confidence in successful conversion later this year? Second, could you talk about the related impact from the wireless monetization strategy on broadband subscriber trends? Could this also help broadband ARPU stabilize later this year?

Steve Crony: Yes. On the wireless free-line-to-paid strategy, we are early in that roll. We are really focused on lifecycle management, managing those customers all the way through. In the early cohorts, we have seen a significant majority of those customers roll to paid, so we feel that will continue as more of these lines roll in the back half of the year. Yes, it will have a direct impact on broadband ARPU based on revenue recognition as those lines roll to paid in the back half of the year, and that will be a tailwind.

Marci Ryvicker: Thank you, Michael Ng. That now ends our call. Thank you, everyone, for joining us this morning. Thanks, everybody.

Operator: Thank you. That does conclude today's question-and-answer session and today's conference call. A replay of the call will be made available starting at 11:30 AM Eastern Time today on Comcast Corporation’s Investor Relations website. Thank you for participating. You may all disconnect.