Good morning, ladies and gentlemen, and welcome to Comcast's Fourth Quarter and Full Year 2016 Earnings Conference Call. 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, Mr. Jason Armstrong. Please go ahead, Mr. Armstrong.

Thank you, operator, and welcome, everyone. Joining me on this morning's call are Brian Roberts, Mike Cavanagh, Steve Burke and Neil Smit. Brian and Mike will make formal remarks, and Steve and Neil will also be available for Q&A. As a reminder, as part of the FCC's anti-collusion rules for the Broadcast Incentive Auction, we cannot discuss or answer any questions related to the auction or spectrum today. As always, let me now refer you to slide number 2, which contains our Safe Harbor disclaimer and reminds 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 for the reconciliation of non-GAAP financial measures to GAAP. With that, let me turn the call to Brian Roberts for his comments. Brian?

Thank you, Jason, and good morning, everyone. I look back on 2016 with real pride and enthusiasm. Comcast NBCUniversal is a special company with a fantastic team working really well together, and we're executing an exceptionally high level. We had a terrific year and it ended on a real high note with our strong fourth quarter performance. In the quarter: we added nearly 400,000 broadband subscribers; we're again Video net add positive; and we made important customer-friendly advancements, highlighted by the launch of Netflix on the X1 platform where we've seen an incredible first few months of sign-on activity and engagement. Over at NBCUniversal, we capped off a strong 2016 with the box office success of Sing, and NBC is already off to another excellent start in the 2016-2017 TV season. So all-in-all, a great end to the year for Comcast NBCUniversal, and this provides strong momentum as we begin 2017. For the full year 2016, we increased revenue 7.9% and operating cash flow 7%, and generated over $8 billion in free cash flow. The consistency and strength of our results enables us, with the support of our board, to announce a 15% increase in our dividend, our ninth consecutive annual increase. We are also announcing that we will split our stock 2-for-1, the 12th split in our company's history. Finally, we increased our share repurchase authorization to $12 billion and expect to repurchase $5 billion in stock in 2017. Comcast NBCUniversal has an unrivaled portfolio of businesses that are working well together. So let me talk about some of our notable achievements in 2016, and then some of the things we're looking forward to for 2017 and beyond. Starting with Cable, we added 161,000 Video subscribers. This is our best result and also the first time we have added…

Thanks, Brian, and good morning, everybody. I'm starting on slide 5 for those following presentation online. I'm going to go into greater detail on the slides to come, but let me give a quick summary of the consolidated numbers. Our fourth quarter results reflect consistent execution and broad-based strength across our businesses. Consolidated revenue increased 9.2% and operating cash flow grew 7.8% for the fourth quarter, reflecting solid growth in our operating businesses. Earnings per share was $0.95, a 20.3% increase compared to a year ago. On an adjusted basis, EPS increased 9.9% to $0.89. Free cash flow during the quarter increased 64.2% to $2.6 billion, primarily driven by growth in operating cash flow and improvements in working capital. For the full year, we generated $8.2 billion of free cash flow, a decline of 8.2%. This decline was mainly driven by higher working capital and capital expenditures. So now let's start with Cable Communications on slide 6. Cable Communications delivered strong fourth quarter results. Revenue increased 7.1% to $12.8 billion, as we added 258,000 customer relationships and reduced churn across all products. In fact, we have improved churn in Video and high-speed data for 12 consecutive quarters, which we believe is driven by the positive benefits of the X1 platform, our best-in-class high-speed data product and the meaningful strides we have made in improving customer service. High-Speed Internet continues to be the largest contributor to overall Cable revenue growth. Revenue increased 9% to $3.5 billion in the quarter, reflecting an increase in our customer base and rate adjustments. Our customer momentum continued as we added a combined 385,000 net residential and business high speed data customers in the quarter and added 1.4 million net customers during the full year, our best full year results in nine years. Our high-speed data…

Thank you, Mike. Regina, let's open up the call for Q&A, please.

Thank you. We will now begin the question-and-answer session. Our first question comes from the line of Jessica Reif Cohen with Bank of America. Please go ahead.

Thank you. One for Neil and one for Steve, if that's okay; Neil, Brian outlined like several priorities for 2017. And there just seems to be a lot going on in your area. Could you give us color on maybe your top three priorities for the year? And then for Steve, seven years later, there still seems to be some big buckets of growth opportunity for NBCU. Some of the more obvious ones seem like Telemundo, where your ratings are up pretty dramatically versus your competitor, consumer products and Theme Parks, obviously. Can you talk about some of the areas that provide the biggest upside? And maybe is Cable Networks the biggest risk for the year?

Hi, Jessica. This is Neil. I think the top three priorities are: continue to win in Video, rolling out X1 deeper into the base; drive and continue winning in HSD, where we roll out DOCSIS 3.1 and advanced gateways and drive Business Services; continue to rollout hyperbuilds and roll in all three markets, small, medium and enterprise. I think additionally, we're going to continue to focus on customer experience. And we'll roll out the wireless product in the middle of the year.

So we've owned NBCUniversal now for almost exactly six years. And during that time, we've had the fastest compounded growth rate of any of the media companies. I still think there's a lot of opportunity, maybe not quite as much opportunity as there was in the early days, but you mentioned a few of the areas. Theme Parks, I think we have a long, long runway. As long as we invest and build more hotel rooms and have creative attractions, we, I think, have a lot of growth ahead of us there. Consumer products you mentioned. We were essentially out of the consumer products business six years ago. And now, that business I think is couple hundred million dollars of OCF and has a long, long runway as we build that out. Telemundo's a great story, where Telemundo was essentially making no money at all. And it now makes a couple hundred million dollars a year. And, as you mentioned, our ratings would suggest in the future, we should make significantly more than that. But we have another dozen things that we're looking at investing in and trying to optimize and grow. And I think the easiest stuff, obviously, you do first, but I think we still have a lot of opportunity to continue to grow the company.

Thank you.

Thank you, Jessica. 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: Thank you. I want to ask about X1 and about free cash flow. So on X1, either for Brian or Neil or both of you, when you look at the X1 deployment in 2017, and particularly the impact you've had recently deploying that product, how are the returns looking versus what you saw going back to the beginning of the deployment? I'm wondering if you're seeing the same kind of churn, ARPU lift, et cetera. And I know the product has obviously evolved. You mentioned Netflix. Just curious how you think about that going forward versus what we've seen in the past and if the low 60%s is sort of the maturation point for that product, in your mind? And then on free cash flow for Mike, free cash flow in 2016, I think, was down year-on-year. It's a big working capital drag. I guess it's mostly NBC related, but you mentioned the wireless drag. Any help with free cash flow in 2017? And maybe help us think about how you prioritize free cash flow versus earnings from a financial management perspective of the company?

Ben, concerning X1, we continue to see very positive results consistent with early in the launch. We were at 48% penetration, going to low 60%s next year. I think ultimately, it could be a 75% to 80% penetration. DVR uptake is three times the legacy. Pay-per-view is two times. We get more additional outlets. We get more VOD viewing. So it continues to be an improved impact on retention and higher ARPU. So I think we're going to continue to drive it into the base, and it's continued to perform as well or better than expectations.

Before Mike jumps in, let me just add to that. If you look at our Video ARPU and combine that with the fact that we had the best Video year in 10 years, and half our base now is X1, it's pretty exciting to get the other half, however far it can ultimately go with that product. The product itself didn't remain static. The Netflix integration, just to name one, was a great achievement during the year. What we did during the Olympics was really special and, of course, voice, the amount of utterances. The last thing is the team is really focused on reliability of X1, hardening the system. And I've seen a number of charts of sort of customers who've had it now for a couple years and what their churn and their reliability and their usage – and every way you study this thing, it looks like a fantastic product, game-changing product, and I think the results continue to encourage us to keep going.

Ben, it's Mike. So on free cash flow in 2016, the decline was for the reasons we talked about on this call a year ago. It was a year where we had, in particular, a drag on working capital given the Olympics. But as you look at 2017, based on everything we've said earlier on this call, the operating results and momentum in both of the operating businesses, as well as a plan for good investments in the businesses, net of all that is we expect to grow free cash flow in 2017. Beyond that, I would say it's our expectation to be growing free cash flow over the long term, though one year to the next, we'll have some variability based upon some of the investments and, obviously, some of the business cycles, but we do focus on it. It's a big, important factor as we're running the company. It's not the only thing we look at, though. So hopefully, that covers it for you. Benjamin Daniel Swinburne - Morgan Stanley & Co. LLC: Thank you very much.

Thank you, Ben. Next question, please.

Your next question comes from the line of Craig Moffett with MoffettNathanson. Please go ahead.

Hi. Thank you. Brian, I wonder if you could talk a little bit more about your wireless entry this year. And in particular, sort of how should we think about the MVNO agreement with Verizon? Should we think of the MVNO agreement as sort of an end state? That is, where – something that you think you can actually make a real sustainable long-term business or more as a stepping stone to a longer-term strategy, where you think of the MVNO really as sort of the market entry strategy instead?

Well, I think what we've said was pretty clear. But just to go a little deeper into that now is I believe that we'll find out. But we're hoping that it's an end state strategy and that it's sustainable. And the goal of the business is to have better bundling with some of our customers who want to save some of their bill and get a world-class product and take a bundle and have lower churn. And if you can achieve that, we'll see. The economics really work. And that's the goal. And there's only one way to find out and it's to get started. And we're going to take it very carefully. And Neil's doing a great job getting us organized.

So if I could ask a follow up then, Brian, is the Verizon relationship then, do you think of it as a network supplier or is it deeper than that? Is it really a partner in the wireless business?

I'm going to stop there and say stay tuned. And we'll clarify things. But we're putting together – we have a good relationship, we believe, and we're excited to get it launched. We'll learn a lot as we go. One example is the way X1 worked. We crawled, walked, ran, and we knew for sure that we had a really special thing before we really hit the pedal. And that allowed us to answer the previous question with a lot of confidence as we have a world-class product. And we think we have the piece parts, but we'll find out together and we'll be very transparent as we go.

That's great. Thanks, Brian.

Thank you, Craig. Next question, please.

Your next question comes from the line of Jason Bazinet with Citi. Please go ahead.

Just a question for Mr. Smit. I think there's still some confusion, at least among our clients, about whether coax or fiber can support 5G. And so can you just elaborate sort of on your view of that? And in particular, any sort of color on where you are in terms of homes passed per node. Are we sort of at the 250 level, or is it lower than that? Any sort of color would be helpful. Thanks.

Well, hi, Jason. I think that 5G is an exciting evolution in the business. It has some characteristics that require densification of antennas. It propagates over short distances. It doesn't pass through physical objects very well. We're doing some testing right now. We think that it's going need economical space, power and backhaul. We have, call it, 150,000 miles of fiber across 650,000 miles of total plant. And we think that we're well-positioned to participate in the 5G rollout, no matter how it happens, as a result of having all those assets in place already. Concerning the usage, I mean, our HSD usage went from a median of 88 gigabits per month in Q4, and that's up 55% from 57 gigabits during the same period of 2015. And if you look at cellular data usage, it's about 3 gigabits per month average. So there's a lot of capacity in the wired network. We feel comfortable with our position in participating in the overall 5G roll-out.

Is it fair to say that you can't support 5G on coax, but you may be able to do it on fiber? Is that too simple of a distillation?

I think that's a simple distillation. We're testing and we'll continue to learn. It's early in the roll-out.

Okay. Thank you.

Thank you, Jason. Next question, please.

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

Thanks, Jason. One for Neil on video; it's great to see growing video subs. Is it still your goal to grow video at this or a faster pace, given the expansion of X1 and better customer experience? And how do you see that potentially offset by continued industry decline, driven by cord-cutting and MVPDs? And quickly a follow up on wireless; Brian, it sounds like we should be looking for a few cities to start maybe at mid-year and slow expansion from there. Is that fair?

We continue to see opportunity in Video and we'll continue to focus on growth of the business and gaining market share. We've seen competition before. We've continued to adjust and compete. We think X1 is a great platform and will continue to drive Video results. Brian?

I'm not going to add any color to our statement that we're going to launch something by the first half of the year, and we'll have more to say and we'll let you know when we're ready. We're not ready today to answer that.

Got it. Thank you.

Great. Thanks, Phil. Next question, please.

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

Hey, thanks. Maybe just one more try on the wireless side, maybe for Mike. Any chance you could quantify or maybe bookend the working capital drag you expect from the wireless launch? And then maybe for Neil, shifting over to business; business, the growth is slowing a little bit. It seems to be sort of an emerging trend in the, you know, across the industry. Can you remind us where your market shares are both in the small and medium-sized business market, maybe the investment strategy, and whether you expect to see that deceleration sort of level off as we look out into 2017?

So it's Mike. So just on handsets, I made the point earlier that the whole thing in wireless is going be success-based, so I would wrap the comments on free cash flow for 2017 in what I said earlier. We expect to grow inclusive of everything and more to come later when we actually come back to talk about the wireless launch.

Got it.

In Business Services, we expect to continue to grow, generate double-digit revenue growth for the next several years by capturing share. It's a $5.5 billion revenue business. We've been growing about three-quarters of a billion dollars per year over the last couple years. We have about 20% share in small, 15% share in medium, and the opportunity in enterprise, we believe, is a $13 billion to $15 billion opportunity in our markets, so we see strong growth across all three segments.

Okay. Thanks.

Thank you, John. Next question, please.

Your next question comes from the line of Vijay Jayant with Evercore ISI. Please go ahead.

Thanks. Just a broader question, first, for Brian with the prospect of Trump-related tax reform and a deregulated FCC philosophy, can you talk about how if those sort of worked out based on current thinking, what would you do differently in terms of investment and return on capital? And a quick one for Neil; obviously, the Netflix carriage on the X1 platform, you guys talked about being very successful. Are these platforms willing to pay to be authenticated on these platforms? Is that a real opportunity as you add more applications on? Thanks so much.

Okay. Well, thanks for the question. I think regulatory certainty for investors is the same as it is for management. It helps you have the confidence to make long-term plans. And the kind of discussion we've been having this morning, whether it's fiber or other investments in in-home equipment, and what your business opportunities are, the more uncertainty, the less encouraging it is to want to invest. So we're encouraged by the prospect of rules that we believe will encourage that investment, stimulate investment, whether that's tax decreases or revisiting the authority of the government to go to places that they said they weren't going to, but legally they could go to in the Open Internet Order with Title II. So we're looking forward to working with the new administration and the new regulatory leaders to try to frame something that's good for consumers, and it gives a stable platform that we can invest in and I think should allow us to accelerate both business opportunities and if there are things such as tax return, then revisit it where all that opportunity lies and how much gets returned to shareholders and invested in new opportunities. So we're encouraged and stay tuned.

Concerning the Netflix integration, I think it's a tribute to both the flexibility of the platform that we were able to integrate it so smoothly, and a tribute to Tony Werner and the Technology team and the speed with which they got it done. VOD viewing for the fourth quarter was up overall about 18%. And we want to offer more and complementary content to make the viewing experiences as rich and easy to access as possible. So we'll continue to seek other partners and integrate them into the overall experience.

Great. Thank you.

Thank you.

Thank you, Vijay. Next question, please.

Your next question comes from the line of Marci Ryvicker with Wells Fargo. Please go ahead.

Thanks. I have two. The first one's for Steve. Assuming that, at some point, there is an increase in the national cap or the UHF discount is reinstated, what is your appetite to acquire stations? And then, my second question is for Mike and your view on capital returns. Just curious, how flexible is this? We are going to have the auction over. There's the potential for tax reform. So is this something that you will revisit from time-to-time or is your view on capital returns that it is a one-time thought process, and you'll revisit it again next year? Thanks.

So we like the broadcast business. We think we're doing well in it. And recently, took an affiliation back from an affiliate in Boston and launched a station there, which we now own as of January 1 at essentially no cost. We had some start-up costs, but that, to me, was a wonderful way to increase our footprint. I don't think there's a necessity to increase our footprint, but I think if the caps get changed, we would certainly look at it and do what's right for the company.

And, Marci, it's Mike. On capital return, it is an annual exercise. We take it seriously this time of the year and give what we think is the right guidance for what we'll do in the course of the year, factoring in everything we have a point of view on, obviously. So that would include everything, but, in this case, corporate tax reform. Corporate tax reform, we're in a wait and see mode. We're big supporters of the idea of corporate tax reform. We think it would be good for the U.S. economy, but none of our capital plans, none of what I've described today are counting on any particular changes in corporate tax. When all that is done, we'll do a holistic review of what it all means and come back and report. That may well be in this call next year. But if it happens really early in the year, we'll see.

Got it. Thank you.

Thank you, Marci. Next question, please.

Your next question comes from the line of Bryan Kraft with Deutsche Bank. Please go ahead.

Hi. Good morning. I wanted to ask a question on cable advertising and also one on the theme parks, if that's okay. First on cable advertising; excluding political, it's been pretty soft for a few quarters now. Is that something you view as cyclical or secular? And if it is secular, do you have any view on when you think revenue growth from advanced advertising will be large enough to offset it and bring you back to a growth trajectory there? And then, on the theme parks, I was just curious, Steve, what are the trends you're seeing with booking and reservations? I know it's been quiet on the Zika front lately, but are you seeing any impact from concerns re-emerging as the weather warms up this spring? Thanks.

This is Neil. On cable advertising, we have seen the core a little softer than in the past. Auto, in particular, is a little bit soft, but I think it may just be cyclical. And we are making up some of the difference in advanced advertising. We're seeing strong growth there. And I think we'll continue to build upon that capability going forward.

So just to add to what Neil said about local cable advertising, the national advertising market is very strong. And it's been very strong now for a while. We had such a good upfront last year. One would have assumed that scatter might slow down. That often happens. That has not happened this time. And all of the indications, options, cancellations, the type of shows people want to get into, suggest to me that we have a good shot of having another very strong upfront nationally. In terms of theme parks, all the bookings and advance indications for Florida and for California remain strong, quite strong. I think we're going to have a very big year in Orlando. We're opening, I believe, the world's best water park in the spring, and an attraction based on The Tonight Show, and that'll get a lot of publicity and a lot of attention. And hotels are 90% occupancy. Bookings look great and we got great new attractions. So my bet is that we're going to have a very strong year in both Orlando and in California. And then, Japan, we own 51% of Osaka. Japan has a Despicable Me attraction going in, and their attendance trends are good. So I think all green lights, as far as I can see, in the theme park business.

Great. Thank you.

Thank you, Bryan. Next question, please.

Your next question comes from the line of Anthony DiClemente with Instinet. Please go ahead.

Thanks. I have for Mike and one for Neil. Mike, on the 2017 programming expense uplift, the 13%, just wondering on a net basis what that's going to imply for Cable OCF growth in 2017? So we're getting to around mid-single-digits and I assume it could decelerate. Can you just talk about that? And then, should it reaccelerate again in 2018 as the programming expense growth moderates, as you describe? And then maybe for Neil, back to the topic of set-top box integration, you talked about Netflix. Before year end, you signed a deal to integrate Sling into the X1 platform, so just wondering about that decision. Could you just talk about the thought process there? And does that one create any risk from a competitive standpoint over time? Thank you for the question.

Thanks, Anthony, for the question. It's Mike. So on the first point, I'll just maybe restate some of what we said earlier which is that, yes, programming costs are high in 2017 for the reasons we described, which is big renewals happening in the second half of 2016 and early – with effective the beginning of 2017 and that rate comes down in the years that follow 2017 to something that looks more normal. I'd say the overarching and important point is all the work that Neil and team have been doing on non-programming costs. So you saw it in 2016, where when programming costs were also higher than the normal long-term rates, great work to protect the margin of the overall business. And the guidance we gave for margin is that it'll be flat again to down 50 basis points in 2017. So, obviously, all the growth and initiatives that Neil has working to drive the top line will push through that margin. And I'll leave it to you to kind of model that out.

Concerning the Sling integration, we really were focused on the multicultural content that they had. It's an important segment for us to target, and we think they have great content and will be a good partner to integrate.

Okay. Thank you.

Thank you, Anthony. Regina, we'll take one last question, please.

Our final question will come from the line of Brett Feldman with Goldman Sachs. Please go ahead. Brett Feldman - Goldman Sachs & Co.: Thanks. I want to ask about the customer service expenses. They were actually down year-over-year in the quarter. You mentioned you had fewer calls into customer service as a driver. And this is an area where you've just invested so much over the last few years. I'm wondering if what we saw is potentially an inflection point, meaning you're not simply benefiting through lower churn, but you're actually getting better operating leverage now through the P&L because of the sum total of the investments that you've made there.

I think that's a good assessment. We've made investments on taking noise out of the system, reducing the calls, focusing the truck rolls, getting it right the first time, being on time and all those things, the move experience, the onboarding experience, we're very focused on. And the teams have done a great job, led by Dave Watson, in driving, as I said, some of the noise out of the system. And I think, ultimately, this will reflect itself in better profitability as we take unnecessary costs out of the system, and we retain customers for a longer period as a result. Brett Feldman - Goldman Sachs & Co.: And is this one of the key line items that supports your outlook for less upward pressure on non-programming expenses this year?

Yes, it is. Brett Feldman - Goldman Sachs & Co.: Great. Thanks for taking the question.

Great. Well, thank you, Brett, and thank you, everyone, for joining us this morning. We'll wrap it up there. Regina, back to you.

There will be a replay available of today's call starting at 12:00 p.m. Eastern Time. It will run through Thursday, February 2, at midnight Eastern Time. The dial in number is 855-859-2056 and the conference ID number is 40819623. A recording of the conference call will also be available on the company's website beginning at 12:30 p.m. Eastern Time today. This concludes today's teleconference. Thank you for joining. You may all disconnect.