Q : What are the expectations for broadband ARPU growth, and how will it be affected by the new strategy? A : David Watson, CEO of Comcast Cable, stated that they expect continued healthy ARPU growth, focusing on broadband and convergence revenue. While the inclusion of mobile in packages might impact ARPU, the overall strategy aims to drive long-term revenue growth. Jason Armstrong added that broadband revenue grew by 3% and convergence revenue by 5% last year, and they aim to maintain this trajectory.

Q : Could you provide an update on the SpinCo strategy and its focus areas? A : Mike Cavanagh explained that SpinCo will focus on genre-based entertainment, sports, and news, with a strong leadership team. The strategy will be developed further, but the aim is to leverage the strong cash flow and market positions of these assets. Brian L. Roberts emphasized that SpinCo will have a strong balance sheet, allowing flexibility in strategic decisions.

Q : How is Comcast addressing competition in the broadband market, particularly with Project Genesis? A : David Watson noted that Project Genesis is on track, with 50% of the network upgraded. The focus is on introducing simplified packaging and faster speeds, which will be marketed aggressively starting in the second quarter. The competitive landscape remains intense, with fiber and fixed wireless as primary competitors.

Q : What is the outlook for free cash flow in 2025, considering various factors like cash taxes and Capex? A : Jason Armstrong highlighted that Comcast expects a tailwind from cash taxes in 2025, roughly a couple of billion dollars. Working capital headwinds are expected to be similar to previous years, driven by growth businesses. Capex intensity is expected to remain around 10%, with relief from Epic Universe construction costs over the course of the year.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

This article first appeared on GuruFocus .