Citi Global TMT Conf. 2025: Comcast CFO on Growth Strat, Broadband, Wireless, Streaming & Cap Alloc.

Key Takeaways

TL;DR: Comcast is pivoting to 6 core growth biz, aiming to shift rev. mix from 60% to 70% from these segments in 2 yrs. Heavy invest. in broadband (pricing/product resets, Genesis/DOCSIS 4.0 upgrades), wireless (aggressive share push via MVNO, free lines, premium plans), biz svcs, and content (Parks, Peacock, Studios). Near-term ARPU/EBITDA growth pressured by invest., but mgmt sees improvement as initiatives mature from 2H26. Portfolio optimization (Versant spin, Sky Germany exit) and robust cap return ($62B since 2021) ongoing. Key investor focus: broadband/wireless profit inflection in 2026, streaming monetization, cap deployment post-spin.

1. Strat Framework & Rev. Mix

• 6 Core Growth Drivers: Focused on wireless, broadband, biz svcs, Parks, streaming (Peacock), Studios—~60% of rev. today, targeting 70% in 2 yrs (post-Versant spin & Sky Germany sale).
• Disciplined Portfolio Opt.:
  • Non-core/cash-gen units now 40% (vs. 50% prior), targeted to 30%. Actions: Versant spin (end 2025), Sky Germany sale.
  • Armstrong: “This clarifies who we are and continues to point us towards these six growth drivers.”
• Cap Alloc.: $62B returned to holders since 2021 (~50% of mkt cap); “more of the same” expected (growth reinvest, BS, returns).
• Inorganic Moves: Bolt-ons to boost advanced svcs in Biz Svcs (Masergy, Nitel); no major M&A outside current pivots.

2. Connectivity Segment

Broadband

• Competitive Landscape: “Expected two multi-gig wires in most footprint…intense fiber overbuild...fixed wireless as a permanent niche." Fiber = "long-term competitor."
• Network Lead: Genesis upgrade (mid-splits + DOCSIS 4.0) underway; majority footprint done for mid-split, early 4.0; prepping for multi-gig symmetrical speeds.
• Product Exp.: App-based controls, top-tier equip. (Opensignal: Comcast #1 in home reliability).
• Exp. Pivot: Nat’l pricing, simplified bundles, no equip./data add-ons, 1- & 5-yr price locks for transparency.
  • “Our equip. rates is the best out there...equip. included and we’ve launched one-year and more importantly five-year price locks.”
• ARPU Dynamics:
  • ST headwind: New offers/free wireless lines/equip. inclusion to dampen broadband ARPU growth in ‘25-‘26.
  • LT: Mgmt expects “healthy ARPU growth... as free lines convert (late ‘26+) and most subs move to price-lock plans.”
• North Star: “Vast majority of broadband base on...one-year, more probably five-year rate lock plans...w/ wireless bundled in...runway for rev. growth.”
• Usage Trends: Avg usage >800GB/mo/customer, +10% y/y; 40% more WiFi devices/HH vs. 5 yrs ago.