Good morning, ladies and gentlemen and welcome to Comcast's conference call to discuss third quarter 2018 earnings and the acquisition of Sky. At this time, all participants are in a listen-only mode. Please note that this conference call is being recorded. I will now turn the call over to Senior Vice President, Investor Relations and Finance, Mr. Jason Armstrong. Please go ahead, Mr. Armstrong.

Thank you, operator, and welcome, everyone. As always, let me now refer you to slide number 2, which contains our Safe Harbor disclaimer, and remind you that 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. Turning to today's materials, we'll be doing things a bit differently with two segments to this call. First, as usual, Brian Roberts and Mike Cavanagh will make prepared remarks covering our third quarter earnings, after which they will be joined by Steve Burke and Dave Watson for a Q&A session related to our results. Then, we will move to a discussion of our recent acquisition of Sky with Jeremy Darroch, the CEO of Sky, joining Brian for a slide presentation, followed by Q& A. With that, let me turn the call to Brian Roberts to review our third quarter 2018 results. Brian?

Thank you, Jason, and good morning, everyone. This is a really exciting time for our company, as we are so pleased to have completed the acquisition of Sky, and today we look forward to talking more about that, which we'll do in a little bit. But let me first turn to our strong third quarter results and the many key achievements that I'd like to highlight. Cable's EBITDA growth of 7.6% was the fastest in six years, and net cash flow increased by 15.6%, the third consecutive quarter of double-digit growth. This impressive financial performance reflects the pivot we've made to our connectivity businesses, which have higher margins and lower capital intensity. In addition, we surpassed 30 million customer relationships, as year-over-year growth accelerated to over 3%. Customer relationship net adds of 288,000 were driven by 363,000 net new broadband customers, the best third quarter in 10 years. Collectively, residential broadband and Business Services revenue increased by nearly 10%. These results demonstrate that customers love our products. We are investing to harness the capacity and capabilities of our network and deliver innovative differentiated experiences, which we believe gives us a long runway for further growth. We are competing really well in residential broadband by offering customers the fastest speeds, most reliable Wi-Fi coverage in the home, and industry-leading Wi-Fi management and controls. We've branded our holistic broadband product as xFi, and continue to add new features, and we're rolling out our xFi gateways and pods to further enhance the service. We also recently announced that our 1-gig Internet is now available to nearly all of the 58 million homes and businesses passed in our footprint. This is the fastest deployment of gigabit speeds to the most locations in the country by anybody. It's a similar story in Business Services, with…

Thanks Brian, and good morning, everyone. I'll begin on slide 4 with our third quarter consolidated results. Revenue increased 5% to $22.1 billion. Adjusted EBITDA increased 2.5% to $7.3 billion, reflecting strong growth of 7.6% at Cable, partially offset by a decline of 8.5% at NBCUniversal, which I'll provide more context around in a moment. The Corporate and Other segment results included an EBITDA loss of $178 million for Xfinity Mobile. Our adjusted earnings per share increased 27.5% to $0.65 for the quarter. On a year-to-date basis, adjusted earnings per share increased 22.4% to $1.91, reflecting the benefits of tax reform, which lowered our effective tax rate by about 10 percentage points year over year to 24%, as well as solid operational momentum. And finally, free cash flow was $3.1 billion in the quarter, bringing the year-to-date total to $10.5 billion. Turning to the details of the quarter, starting with Cable Communications results on slide 5, revenue increased 3.4% and EBITDA increased 7.6%, resulting in a 160 basis point year-over-year margin improvement to 40.7%. Adjusting for the negative impact of storms in the third quarter of 2017, Cable EBITDA increased 6.9%, reflecting the strong underlying trends in the business. Customer relationships increased 3.4% year over year to 30.1 million, including 288,000 net additions in the third quarter. On a per-relationship basis, revenue was relatively consistent with the prior year and EBITDA increased by 4.4%. Cable's performance was again fueled by momentum in our high-margin connectivity businesses, residential high-speed Internet and Business Services. High-speed Internet revenue was the largest contributor to overall Cable growth, increasing 9.6% to $4.3 billion. We have added over 1.2 million net new residential broadband customers in the last 12 months, including 334,000 net additions in the third quarter. Our offering is resonating with customers, as our…

Okay. Thanks, Mike. As I mentioned up front, we'll now take questions on our results before we turn to our presentation on Sky. Regina, please open up the call for Q&A.

Our first question comes from the line Ben Swinburne with Morgan Stanley. Please go ahead. Benjamin Daniel Swinburne - Morgan Stanley & Co. LLC: Thanks. Good morning. Maybe for Brian, the X1 really led the way in terms of next-generation set-tops when you guys started building that out years ago. When you look at the video business going forward, how are you thinking about the product roadmap? I know the company is focused on bringing more third-party apps into the ecosystem, and you've seen folks like Amazon and Apple embrace a channel strategy. How are you thinking about leading with video going forward from a product and consumer perspective, and what does that mean for the financials of the business? And then I just had one follow-up.

Okay, I'm going to start out, let Dave talk a little bit about that. So I do think that X1 is the best in the world. And I think – and that's because we've embraced things like Netflix, YouTube, voice control guide. We have a long roadmap of more things. Top of the list is Amazon Prime shortly. And then beyond that, tremendous innovation, things like when we're watching a football game, all the other things you may want to do while consuming it, looking at stats, being able to someday interact, look at your fantasy leagues. I don't think we're anywhere near the completion of what the technology is capable of. Second, we've used video in a way to support the broadband business, and that combination seems to be working quite well, but there's other applications throughout the whole home where voice can play that role. And artificial intelligence is the other area that we're using across the whole customer experience and the same platform is being used from everything from figuring out those sports scores and data that you want to recommendations of shows and entertainment to customer experience, service quality, and texting to customers appointments and scheduling. So we're building a great capability as a technology company, and I don't think we had any of that just a few short years ago. Dave?

We've often thought that X1 is an operating platform which not only the most preferred video applications would be there, but we also thought, as Brian said, that there are going to be many other applications, music, gaming. And as IoT continues to make progress, you're going to control your home experience in many ways, including right through the television in X1. So our mission is to just make it simple and easy. And we're processing right now the way we've connected Netflix, the way we were doing – we will do Amazon and we're already doing it with YouTube, we're processing about 2.1 billion voice commands a quarter, and it's just easy. So from our standpoint, we think there's a long runway ahead to continue to have X1 be the aggregator of aggregators. So we're optimistic with that. Benjamin Daniel Swinburne - Morgan Stanley & Co. LLC: Then maybe just same question, Dave, on broadband. I think you're more or less done with DOCSIS 3.1. What's next for the evolution of the Broadband business to continue to maintain or even extend your lead against competition when you think about the product and technology and network roadmap for that business over the next couple years?

I think it starts with the fact that broadband – DOCSIS is a great standard. It's a very efficient one in that we've been steadily investing in the network in terms of node splits and expansions. So our focus around broadband is bringing to life our xFi brand, where it's the same thing we did with X1 for video we're doing with xFi. And xFi stands for the best of speed, the best of coverage and control. Dana Strong and her team are doing a really nice job bringing xFi to life. And the proof points are there. As Brian mentioned, we have virtually our entire footprint is now deployed with 1-gig. We have the best-in-class gateways, pods that are delivering best-in-class in-home Wi-Fi capability. And the amount of devices that are being activated and used in the home continues to escalate. So the control aspect of this I think we are also standing out, and our xFi app is just terrific, and a lot of usage, a lot of engagement with that. So I think we're going to keep our lead. We're going to stay focused in terms of how we differentiate broadband, not only in speed but also these other aspects. And I think this is where our focus is. It's connectivity in residential, in commercial. It starts with that, and I think this is – it didn't happen overnight. We've been steadily focused on this and we'll continue to be so. Benjamin Daniel Swinburne - Morgan Stanley & Co. LLC: Thank you.

Great, thank you, Ben. Next question, please.

Your next question comes from the line of Phil Cusick with JPMorgan. Please go ahead.

Thanks. Mike, can you talk about cable margins? I appreciate the increase in guidance for the year, but that still seems conservative given typical 4Q seasonality and the political advertising potential. Anything happening in 4Q that should take us out of the seasonal trend? And then going forward, you've talked in the past about a continued pause in programming renewals next year, revenue shifting to higher-margin broadband and business, and it seems like costs can come down further. Any reason we shouldn't look for similar margin growth next year? Thanks

No, Phil, not a lot to add to what we said previously and what we said today. So we're happy to firm up guidance on margins and on capital intensity at the high end of the improvements we talked about at beginning of the year for the very reasons that Dave just highlighted. So it is a shift to higher-margin connectivity businesses are definitely helping to drive margin and drive net cash flow, as Brian said. Net cash flow in the Cable business up 16% year over year, quarter to quarter. So those trends will continue on the programming side. As we said, the last two years prior to this one were ones with big renewals, and so for a period of time, we will see relief on that side of the things. And everything that Dave's team is doing in terms of controlling expenses on the non-programming side, keeping expenses overall flat on the OpEx side while we grow customer base and improve customer experience are all initiatives that continue to roll through. We won't give guidance beyond this year, but obviously that type of work is ongoing and continued runway ahead.

Thanks, Mike.

Yes.

Thank you, Phil. Next question please.

Our next question will come from the line of Jonathan Chaplin with New Street Research. Please go ahead.

Thank you, two quick questions, if I may. First on share repurchases, you've suspended them for next year, but we don't have you getting back to 2.2 times leverage until the end of 2020. I'm wondering if you could restart repurchases before you get all the way down to your recent leverage threshold, or whether it's really pushed out to 2021. And then on wireless, it looks like the losses, EBITDA losses have been steadily receding. Have we passed the peak in losses, and would you expect the losses to continue receding from here? And on subscriber growth, there's been a nice gradual steady progression in growth. Should we expect this trend to continue, or is there an opportunity to see a more meaningful acceleration in growth as you bundle the product together with broadband and really drive home the savings that consumers can get by taking wireless from you? Thanks.

Jon, it's Mike. I'll take the first one. So on share repurchases, our intention is to get ourselves back within 18 to 24 months, as I said, to the neighborhood of leverage consistent with the ratings that we maintain and the commitments we have made there. We'll take it one year at a time. So suspension of the buyback for next year is already safe at this stage. But I will say again, we intend to make that our priority. We're going to focus on the organic plans in each of our existing businesses, continue to drive the execution in all the businesses, and we'll see what happens in the world year by year from here.

This is Dave. I'll go into Mobile. So after starting this category, launching the category last spring, I think we're off to a really good start. We're ending Q3 with over a million customer lines and I think solid momentum. It's early, very early, but we're encouraged in that we're looking at mobile. One of the top reasons why we did it is to improve in particular broadband retention. So just early pulse check on that is showing that there is real hope there. So we like that. The other two reasons – stand, we're very consistent on this point that we're going to achieve positive standalone wireless economics at scale and that we're also going to look to attract even more broadband customers and more opportunities to expand the relationship through mobile. So overall, the trending is what we expected. It's still early but encouraged.

Thanks.

Thanks.

Thank you, Jonathan. Next question please?

Your next question comes from the line of John Hodulik with UBS. Please go ahead.

Great, thanks, maybe a quick question on the broadband market. You've seen some good comps on the net add side. What would you say is the primary driver for that improvement that we've seen after seeing some deceleration for a while? And along with that, have you seen any changes in the competitive environment to date? Thanks.

You go through competitive cycles and most certainly in broadband, and we saw there was just a little bit more promotional activity. But you have to look at I think the absolute performance in terms of how we look at it. The best, as Brian said, our net add performance was 363,000 broadband net additions, best in 10 years. And you look to the drivers, very solid churn. It's an attractive product. And we continue to differentiate, as I mentioned earlier. Our focus is to have the best product in the marketplace, that we will have the best speeds, delivered now 1-gig availability. You have 70% of our customers that have 100 megabits and above. Where people are going, the expectations around broadband are going up in terms of all the different opportunities, whether it's streaming, applications, so there's a real appetite for better broadband. And the bar is being raised, not just in speed but in terms of in-home coverage. So we want to stand out in providing the best in-home experience, and we think we're delivering on that with xFi, and so all three, speed, coverage, and control. And then you look at the results in terms of churn improvement but also the broadband ARPU going up at 4.5%, a little over 4%. We're real pleased with that too. I think it shows the overall value of broadband. So I think I like the runway. One of the main things to me too that speaks to the runway is our penetration, about 46.5%, the overall market place at 80%. There's room for growth. And we have markets – some of our local operating areas that are well above that average. We should do better, and so we're expecting to do so.

Thanks, Dave.

Thank you, John. Next question, please?

Our next question comes from the line of Marci Ryvicker with Wolfe Research. Please go ahead.

Thanks. I want to focus a little bit on NBC and NBCUniversal, and I guess as it relates to both the broadcast and cable networks. I guess, Steve, there's some concern that the virtual MVPDs are actually slowing, although opening comments would suggest otherwise. So can you talk about the pay-TV sub trends on the media side? And then secondly on advertising, we know political is coming in really strong, but there have been some questions on underlying trends, especially in the auto category with trade wars with China. I don't know if NBC is just a different animal and trends have been stronger, so we shouldn't extrapolate. So any color on the ad side would be helpful too.

So the television business, despite all the well-known factors that make it look like a less good business in the next 10 years than it has been in the last 10 years, our television business is very strong. We've had seven quarters in a row of 7% or better OCF growth on the cable side. Broadcast is doing just fine. The advertising market is very strong. Scatter is strong. We had the best upfront we've ever had just a few months ago, and scatter is up very substantially. Political is way up. We're having a very, very strong political. I'm talking on the NBCUniversal side, not for Spotlight, although I think some of the same trends are there. A very, very strong political season, it looks more like a Presidential year than a midterm year. In terms of sub trends, every single month if you look at the trailing 12 months and you add up traditional MVPDs and virtual MVPDs, every single month for literally the last year, those trends have gotten better. In the most recent month, those trends did not keep getting better. They stayed about the same. So I think maybe the growth of the virtual MVPDs is starting to plateau, at least for the last month. But those trends have been getting better, and it really comes from traditional MVPD sub losses. It's about the same. And then virtual MVPDs as they launched and got more aggressive growing, and that appears to be flattening. But our television business continues to be very, very strong. And I think as the world pivots here toward more streaming, we want to make sure that we respect and nurture and continue to invest and continue to outperform on the television side wherever the world goes in terms of new technologies.

Great, thank you.

Thank you, Marci. Why don't we take one more question for this segment of the call?

That question will come from the line of Craig Moffett with MoffettNathanson. Please go ahead.

Hi, thank you. First, Brian, congratulations on the Sky acquisition. For Cable, I want to return to the question about margins and capital intensity, if I could. The trends as you've discussed and as some of the questions have suggested are running meaningfully ahead of historical trends. With costs growing at near zero – non-programming costs growing at reasonably close to zero, have you changed your view of how high margins can get in this business? And similarly on capital intensity. I think you used to always say 15% was the long-term guide – goalpost, if you will. Is that lower now? Is your sense that capital intensity in this business could be meaningfully below the mid-teens?

Craig, it's Mike. I'll start and Dave can finish. Like I said earlier, I think the trends, the efforts, and the mix of business dynamics, efforts on the cost side and just the customer experience side, are improving margins, have improved them I think. We won't predict where they go from here, but just the idea that there are still efforts that will continue consistent with what we've seen. And the same positive dynamics of the mix shift to connectivity, given the efficiency, as Dave described, of our hybrid plant for the long run looks to be very good. I won't go there in terms of capital intensity over the long term because I don't – actually, we've never really had long-term guidance like that. But I think we're pleased with the financial model and the prospects for the financial model in the cable system looking through years ahead.

I think just to add, I think everything starts, Craig, from our standpoint of driving healthy profitable revenue in that the high-margin connectivity businesses – that's why this is so important, broadband, but also Business Services. Bill Stemper and his team doing a terrific job driving all three segments, SMB, midmarket, and now enterprise, there's just room for growth there. So we're very focused on that. The second thing that Mike has touched on that helps margins, we're incredibly focused and very consistent on improving the customer experience. I think this goes hand in hand. Taking transactions out of the cable business is good for the customer, it's good for the business. When you look at some of the results in the quarter, we've taken out over 5.5 million telephone calls. We've taken out a material amount of truck roll, and just we're just focused on onboarding, repeats. We're proactively looking at customer issues and solving them in the first place before they even call us. So this is where our focus is. I think it's really good. It takes out the unnecessary cost in the business. We're going to continue to be very focused on it, and I see a good runway for improvement there.

I think it's a perfect transition point. Thank you, Craig, for that question because it underscores the strength and the momentum of the core company and the core businesses. And Cable Broadband, the pivot, best results in a decade. NBCUniversal, we've had a double-digit compounded rate of growth since we bought the company, and it sets us up for what's next. Jason?

Okay. Thanks, Brian. So we'll wrap up the third quarter earnings portion of our call there and transition now to a discussion of our recent acquisition of Sky. As a reminder, we'll take questions again at the end of this segment. Analysts must get back in the queue if you want to ask a question by pressing *1. With that, let me turn things over once again to Brian.

I'm delighted to have Jeremy Darroch here with us today, Sky's long-time successful CEO. We think Sky is an incredible and unique standalone business that fits perfectly with Comcast. And the best way for you to hopefully reach the same conclusion is to hear directly from Jeremy about Sky's market position, brand leadership, and strong growth potential. And then I'll talk a bit about how excited we are about the combined company and its prospects. Jeremy, welcome.

Okay, thank you, Brian, and good morning, everybody. Today I'm going to cover two things. First, I'll explain a little bit about Sky's business, and then I'll talk about our existing plans to grow the business over the medium term and why I'm confident we'll succeed. So let's get going on slide 4. The first thing to say is, of course, Europe is somewhat different from the U.S. Markets in Europe are generally less penetrated and therefore have much greater headroom for growth. The ability to acquire content exclusively is typically much greater. We are much less reliant on the big bundle. And of course, the competitive landscape is somewhat different in Europe to the U.S. With that backdrop, Sky today is Europe's leader in entertainment and communications. We uniquely combine a scale direct-to-consumer business with a scale content business, and that means we're not just an aggregator of content. We have direct operational businesses in seven territories, including four of the five largest and most valuable TV markets in Western Europe. Now you can also see on this slide the territories where our brand has a presence through services like Sky News, which of course starts to seed the ground for future development. We have 27 million households as customers. This includes 23 million direct relationships and 4 million customers who access Sky channels through other platforms such as cable in the UK, with both routes to market offering similar economics. As a result, we've got a high share of more than 60% on average in our core territories, that gives us real brand strength. Turning to slide 5, we're Europe's leader in content by some margin. We have the number one channels in all of the genres that matter most to customers. So Sky One, Sky Atlantic, Sky…

Jeremy, really well done. Thank you. So as you've just heard, Sky is a great business with terrific organic growth ahead, and they operate with leadership positions in attractive markets as well as having the premier brand. Jeremy along with Rupert and James Murdoch and so many others have built a sensational company, and that's why this process was so competitive. Together, we make each other even better. The combined company is a broadly diversified global leader across video, broadband, content, and distribution, with 53 million high-value direct customer relationships in three of the world's five largest GDP economies and now the largest pay-TV operator and fixed broadband provider in developed economies, with number one positions in U.S. cable, number one U.S. broadband, and number one UK pay TV. Sky triples our footprint of homes we can directly sell our TV products into, now nearly 200 million, and nearly doubles our broadband footprint. When you combine the NBC broadcast and cable channel portfolio and now include Sky-branded entertainment, sports, movies, news channels, we become the leader in viewership share across all four primary pay-TV geographies. And all of this is built around subscription-based and recurring revenue businesses, which has allowed us to grow EBITDA for 23 straight years, and Sky adds to this highly desirable formula. Core to this formula is a great culture and strong leadership. In fact, as we spent more and more time with Sky's management in the past month, I've been struck by the similarity of mission, connect more people to the moments that matter with products and content that they love. With a global footprint, Xfinity, Sky, NBC, and Universal now position Comcast to play an increasingly influential role in shaping media and technology for decades to come. That's why we're so excited. Jason, over to you for questions.

Okay, thanks, Brian. Regina, let's open up this portion of the call for Q&A please.

Thank you. We will now begin the question-and-answer session for the acquisition of Sky. Our first question comes from the line of Jason Bazinet with Citi. Please go ahead.

I just had a question for Mr. Roberts. One of the most common questions we get from investors is how you got comfortable with paying the price you paid for Sky and still create economic value. And I was just wondering if you could, in simple terms, maybe try and disaggregate how much of it was your perception that Sky was just mispriced in the market as an undisturbed equity value before this process started in terms of whatever Sky's standalone business strategy was, and how much of it is a function of the new collection of assets and capabilities that you have as a pro forma entity. Thank you.

Okay, thanks, Jason. First of all, today we move forward, and we are excited about the road ahead. But to that question, you never know exactly how securities are priced and what the motivating factors are. But I do think it was mispriced, whether that's because for five years it's been in a variety of M&A flux because there was a large shareholder, because there was regulatory uncertainty, whatever it may be. There's also been a change in the actual market, as Jeremy just laid out, in terms of the sports rights and competitiveness and new business opportunities that are just about to emerge in Italy, launching broadband and other things that we just heard. And then I look at the fact, as I said earlier, Disney bid 10% less, and that's exactly the amount we bid less than they did on FOX. These are super-desirable assets when put together with a company like Comcast, and the fit makes us stronger. So first as a standalone, I think it supports the values. Together, I think it increases the value. Time will tell. And I go back to the people who have a tremendous knowledge of the company and the roadmaps we all want to develop and who our stockholders themselves would probably – a larger percentage of their net worth than anybody else are the senior employees. The senior employees are extremely energized and motivated that this transforms the company and gives us opportunity to build shareholder value, and we're hard at work to do that.

Thank you very much.

Thank you, Jason, next question please.

Your next question comes from the line of Kannan Venkateshwar with Barclays. Please go ahead.

Thank you, so a couple for me, if possible. On the Sky side, Brian, do you think the asset is fully scaled as it is today, and is there anything that you can use potentially from the U.S. business to drive synergy upside, for example, maybe using your scale across a sub base of 50 million-plus to negotiate programming deals, for instance? And secondly on the capital intensity front, both Comcast and Sky spend a lot of money on software. And obviously, there are similar products across both footprints. So could you help us understand what kind of upside we could see from that front? Thank you.

Let me kick that off. Those are all important aspects of work that's underway. Let me start with the question about Sky and opportunities for better scale. Absolutely, that's a big motivator of what will reveal itself for years and years to come. Some of it will be right away on some expenses. But the real opportunity is with north of 50 million homes, triple the footprint, innovation, purchasing, relationships, new products, where the world may head. That's what makes it so exciting, and we've always believed scale mattered. That's been true. I think that's why our results at Comcast Cable were so stellar. It's why NBCUniversal has been able to grow as much as it has, and I think Sky is a leader in its market. So when you're doing something in a new market, you'd like to be the best. It's hard to build that when you're starting behind, and now we're fortunate to have the best products and the best leadership in the best markets. Jeremy?

Just a couple of things on that. First of all, it seems to me, if you think of the combined entity, now 50 million household relationships, monetizing it in the way that we're doing that, and with the level of relationship and penetration that we've got together, I can't think of another business that just has that element of scale to it today. And obviously, we'll be thinking about what does that mean and then how can we take advantage of that together. I think Sky in the UK and Ireland clearly has got an outstanding market position, and from our own business has provided the footprint that we're now trying to roll out elsewhere. We're making really good progress in Italy. Germany is a less mature market, but it's got massive potential if we can get it right over the next few years. There's certainly a huge amount of growth to go for in our mind in Europe. And my strong belief is that as part of a broader group, we're just going to be better able to figure that out and take advantage of that opportunity from the position that we start with today. I think in terms of your second point around software and capital intensity growth, we're at the outset now and starting to think about the opportunities together. There are obvious things I can immediately see that we'll exploit. We're not going to front-run those. We can obviously develop our plans and execute them. But some of our capabilities, for example, what Dave has just been talking about today in the core cable business, what are you doing with products like xFi, for example, immediately I can see opportunity for us to take some of those learnings and accelerate the position we've got in broadband in the UK today or as we get into the broadband market in Italy. So there will be more of that to come. I'm very confident.

Thank you.

Thank you, Kannan, next question, please.

Your next question comes from the line of John Hodulik with UBS. Please go ahead.

Great. Can we talk about the combined company's DTC plans? I guess first on the SVOD side, you've got Disney and now AT&T talking about launching SVOD products. Given the combined capabilities of the company, what can we expect from Comcast in that regard? And then maybe on the linear or virtual side, obviously you've got Sky now, and that's doing well. Maybe for Jeremy, as you talked about the growth in these new markets, is that going to be led by Sky now? And maybe talk a little bit about the economics of that product versus what we're seeing on the virtual side here in the U.S.? Thanks.

With all the announcements of new streaming services, we'd be remiss if we didn't look at it very carefully. Where we come out is that streaming obviously is going to be part of our business but is not a substitute for what is currently a very good business in television. By the way, our shows are very popular on streaming services. The Office is often the number one show on Netflix within a month. We're a big percentage of Hulu. Our kids products that are made by DreamWorks Animation are very popular on Netflix. So we have a lot of shows that are currently very popular on streaming services. And we're looking at different ways that we could accelerate our business in terms of streaming. But we're doing everything with the notion that we have an existing business that's terrific that we want to protect and nurture and continue to build, and I think time will tell. I think there's been a little bit of a rush to the traditional television business is over and we've got to get into streaming. Streaming we think is very challenging economically and we don't want to rush into anything that in any way could take what has been a tremendous television business and make it worse.

I'd say in terms of Sky more generally, I'll come onto the second question on that as part of this. Look, first of all, we've stepped into and will continue to step into new consumer trends and technologies. So we started, for example, distributing over-the-top in the UK with a product called Sky Player as far back as 2005 I think. Today in all of our markets, we seek to distribute overall technology, so whether it's over the cable networks, through our own Sky Satellite and hybrid systems, through OTT, through mobile networks, all the mobile operators, for example, would carry a service like NOW TV. And the reason is that we want to service most customers who are in all of our markets, and then do that in a complementary way. That's been an effective way that we've continued to deliver sustained growth over time. Now as part of that, we've been testing new ways potentially to get into other markets. We've launched in Spain over the last 12 months. We've just actually – what we just completed in the last quarter at Sky is put in place a new strategic OTT streaming platform, which would allow us to light up any other country very, very quickly. We'll decide as and when is the right time to do that and what's the right brand to use. But I think all of the building blocks from a European point of view are coming in place. And to Steve's point, one of the things we're going to be doing is getting our heads together and thinking more generally now what that might mean.

Okay. Thanks, guys.

Thank you, John, next question please.

Your next question comes from the line of Ben Swinburne with Morgan Stanley. Please go ahead. Benjamin Daniel Swinburne - Morgan Stanley & Co. LLC: Thanks. If I can ask two. Brian, if you put this deal in the context of say NBC and even going back all the way to AT&T Broadband, you guys invested in the asset out of the gate and grew the revenue base faster than it was growing before. If we look at Sky, it's been a mid-single-digit grower the last couple of years. Do you expect, if we think about the three to five-year view on Sky as similar, invest into the business and then grow the top line faster, or is this business just in a different place operationally than those deals? And I'll just ask Jeremy, one of the things that I think people are focused on and you highlighted it in your prepared remarks is how much Sky has created value around licensing third-party content. You mentioned HBO. A lot of those companies are thinking strategically about going direct-to-consumer, including I would imagine in Europe. How do you think about the risks around that? Even if maybe financially it makes sense to stay with Sky, could strategically they make a move away from you? And then how do you manage the product and business in that event?

Let me start. I think that we're really excited and pleased with the management team at Sky and the people that we've met and the results that they've had. While there was wonderful people at AT&T and NBCUniversal, in both cases we made some early changes on day one. We are delighted that Jeremy and many of the team and the senior team we hope and believe are all going to stay with the new company. So in that regard there's a difference. But I think the trajectory of these businesses that excited us to want to own Sky is because there's growth, and Jeremy laid I think very compelling case out as to why Sky probably was misunderstood and maybe mispriced, back to that earlier question. But it also – and you picked the right two deals. We've probably done over 100 deals over the career and the history of the company, but you picked the two that really were transformative. Why is that? Well, in the case of AT&T Broadband, it gave us scale in the U.S. It made us the number one cable company in terms of markets, and markets you can never get back. It was now or never in those great markets. It was really John Malone's life work and Amos Hostetter's life work. And NBCUniversal is a storied brand, and Lew Wasserman's life work, and the NBC and the iconic cable channels that they bought and created, and the theme parks and Telemundo and what we now enjoy as NBCUniversal. And in the case of Sky, really Rupert Murdoch figured out a long time ago that television was going to transform itself and how could you be the number one brand. And he used a different technology than we used, and those technologies are becoming less and less relevant as we look forward in an IP digital world. But he understood that customers wanted choice, they wanted the best provider and that that was happening globally. And that allowed him to create all the content. That's the big difference. As Jeremy said, it's not an aggregator, it's really a creator, and that is a huge difference on the go-forward economics and the growth rates, depending on how we execute. So I think it's stay tuned, but we feel as monumental a moment, at least I do, that this will open up the scale and the innovation and I hope in fullness of time, the revenues and the cash flow and ultimately shareholder value that we've successfully done at moments like this. And the first thing we had to do was go into the bond markets, an incredibly successful offering, oversubscribed, and now we have the job handed to the operating team to go execute. Jeremy?

Yeah, Ben, look, I think first of all, to your point, I think one of the reasons we've been so successful working with third parties is I would hope we're a partner that gets it right strategically for others, but also we get the economics right as well, and we understand that any long-term partnership needs to operate at both those levels. And I don't see any reason why we can't continue to do that for our major partners. I think there are a number of things that underpin our position, which means that we're in a good place. I talked a little bit before about our broad distribution model and how we're seeking to monetize each of our markets across all customer segments. And of course, that allows us to create the biggest pool of revenue, which ultimately we can decide to push back to our partners and reward people for staying with Sky. We've developed now an incredible range of content. In my tenure at Sky, that's probably been the single biggest thing that has changed. So the breadth now of content that we have on Sky and via our on-demand service has never been greater. And the good news from our point of view, that gives us a lot of optionality around what we do. So we certainly have got a focus on sort of our key partners that we want to maintain, but there will be others where we can make choices, and we're happy to do that. And as part of that, of course, we've developed our own originated content to a much greater scale, whether that's in drama series or comedy or increasingly actually in local movies. So it gives us the opportunity to create more of that ourselves and create unique European stories…

Thank you, Ben. Regina, we'll take one more question, please.

Our final question will come from the line of Vijay Jayant with Evercore. Please go ahead.

Thanks. Two if I may. Obviously, Comcast is very strong in the broadband business. Sky is a reseller. Is there any thought longer term to become a facilities-based provider for broadband in three very large markets in Europe? And then now that you've had a chance to hopefully do more work in looking at internal opportunities at Sky, the $500 million of synergies you've identified, has that changed, or any sense of how fast that could come to us? Thanks so much.

Vijay, it's Mike. I'll start, and Jeremy can add on. In terms of synergies, we're confident, very confident in the $500 million of synergies that we talked about. We've been at it for a month and all the teams getting together on a variety of different opportunities there across the board both at Sky and at Comcast and NBC are very confident in what we penciled out and talked about publicly. And so that will come over the coming couple of years, but no changes to our guidance on that score. And then in terms of future investment beyond the organic plans, at Sky I think we're going to run the organic plays as Jeremy described. Obviously, market structures are different in the U.S. from Europe, and that leads to great opportunities to capitalize on other folks' investment in their broadband plans. But, Jeremy, I don't know if you want to add to that at all.

Sure. I think, Vijay, at this stage, you're going to have to forgive us a little bit. I don't think it's probably too helpful to front-run ideas or giving a running commentary on those. We'll come back I think when we've got something more substantive to say. And what I would say though is, we're connected already. We've had plenty of time to think about this at Sky, so we're well-organized. We've got a clear set of plans now as to how we get into this stuff and start to tease out and explore the bigger ideas and then how we might pursue those. And as Mike said, as they develop and come to fruition, we'll come back and talk to you a bit more about why we think they're great ideas and how we're going to go after them.

Thanks so much.

On broadband, so just specifically, look. Again, I think it falls in the bucket of one of the things that we're going to be looking at. As you said, we've got, we have our own in the UK, just to be clear, we have our own broadband network. It's built around the Canal system actually in the UK. It connects to about 2,500 BT exchanges. We have a very good regulatory environment, which gives us access on cost-based economics, so we get the benefit of a lot of the aging and write-down of that infrastructure, and then we use largely BT's last-mile-to-the-home. In Italy, we're doing a slightly different deal with Enel (1:20:10), who are the state-backed fiber-to-the-premises provider, and they're building out to something like 271, off the top of my head, urban and regional areas in Italy. And so we in a sense from a capability point of view, leapfrog what we've done in the UK, but largely execute the triple play commercial execution that we hold in the UK. So we're very excited about that because it would be a big idea in Italy. And then look, from our point of view, the chance to tap into the capability of this organization in cable broadband communications is a big opportunity for us. So we'll think through those things over the coming months.

So let me just wrap up by saying thank you to everybody for giving us a little extra time, and I think it was time well spent to get a deeper understanding of Sky, why it's a great business, why it fits us so uniquely, and why we are as excited as we are. I think the results for the quarter speak for themselves, and we'll talk to you in 90 days.

Thank you, Brian. Regina, back to you, thanks, everyone.

This concludes today's teleconference. Thank you for participating. You may all disconnect.