Comcast at at UBS 45th Annual Global Media and Communications Conference notes
- Optimistic about portfolio they have, but it's there job to evaluate and consider options to create value for shareholders even if there is not necessarily a strategic gap to fill.
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Looking ahead to 2018, what are Comcast's priorities?
- Cable: Focused and optimistic about connectivity businesses.
- Video: Very confident and proud of X1 platform and the bundle, believes video is important.
- New businesses: Xfinity Home, home security product has grown to past 1 mln subscribers. Xfinity Mobile is adding subscribers as they speak, very excited about what they've seen so far.
- TV: Continued growth in re-transmission, sports and news packages continue to drive strong affiliate fee growth.
- Theme parks: Japan park is doing great, continues to work on new Universal Studios theme park in Beijing.
- Film: One of best years in history of studio in 2017. In 2018 they are releasing a new Jurassic Park film and a new Fifty Shades film, among others
- Excited about tax reform, looks forward to the final details, and figuring out what it means.
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Video business
- Stable, no worse. Thinks video is an important product, expects to come in within expectations in Q4.
- Looking for what people want, great broadband is the great enabler of products which they have. On all of the alternative products they have, they believe there is a good opportunity to upsell their products over time.
- Expects TV advertising to continue being a large business due to reach and quality of platform.
- NBC will broadcast the Super Bowl this year, and the Winter Olympics this year.
- Subs will decline around 1.5%/year, which looks relatively stable.
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Broadband business
- 12th year in a row where they will exceed 1 mln net adds, now expect to exceed 1.1 mln net adds. Set up well for 2018.
- 45% penetrated in their footprint, believes there is opportunity for deeper penetration.
- Seeing 40% growth y/y in data usage across network.
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Xfinity Mobile launch update
- Very pleased with what they are seeing (on last earnings call noted that 250K lines had been added)
Shares of CMSCA are trading up 2.9% at 39.54/share in pre-market trading.