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Good morning, ladies and gentlemen, and welcome to Comcast's Second Quarter Earnings Conference Call. Please note, this conference call is being recorded. I will now turn the call over to Executive Vice President, Investor Relations, Ms. Marci Ryvicker. Please go ahead, Ms. Ryvicker.
Thank you, operator, and welcome, everyone. Joining us on today's call are Brian Roberts, Mike Cavanagh, Jason Armstrong, and Dave Watson. I will now refer you to Slide 2 of the presentation accompanying this call, which can also be found on our Investor Relations website and which contains our safe harbor disclaimer. This conference call may include forward-looking statements subject to certain risks and uncertainties. In addition, during this call, we will refer to certain non-GAAP financial measures. Please see our 8-K and trending schedule issued earlier this morning for the reconciliations of these non-GAAP financial measures to GAAP. With that, I'll turn the call over to Mike.
Good morning, everyone, and thanks for joining us. Before I hand it to Jason, I want to talk about three things that are particularly significant this quarter related to several of the strategic priorities of the company. First is our broadband business, where we continue to roll out our new go-to-market strategy in a highly competitive environment. Second is our theme parks, where we successfully opened Epic Universe in Orlando, one of the largest and most ambitious projects in our history. And third is our Media segment, where our extraordinary mix of live events, sports, and entertainment across NBC and Peacock led to a record-breaking upfront as we continue to execute on our strategy of running NBCUniversal's linear and streaming assets as one holistic media business. So let me start with broadband. We've taken a hard look at what it takes to compete and win, and we start with great confidence that our products and network are marketplace leaders.
That includes our AI-powered entertainment OS, the most intelligent WiFi network in the country, and a mobile service delivering the fastest speeds in our footprint. We're proud that we've reenergized a culture that drives innovation, one that continues to set our products and services apart. Building on that foundation, we took several important steps this quarter to strengthen our position. Our goal for all the actions we've taken is to build a loyal customer base that churns less and values our services more by: one, delivering simple, predictable and transparent pricing; and two, making it easier than ever to do business with us. Specifically, we've realigned our pricing strategy around seven main elements. First, we've moved from local offers to a consistent national pricing structure. Second, we simplified our broadband offering with four flagship speed tiers. Third, everything is included.
All packages come with unlimited data and our advanced gateways, which deliver the fastest, most reliable WiFi experience, enabling the connection of hundreds of devices, providing low lag Internet for gaming and streaming, and featuring advanced WiFi controls and cybersecurity protection. Fourth, we've lowered everyday pricing. Fifth, we introduced both one-year and five-year price guarantees without contracts to give customers more choice and certainty. Sixth, we're including a free Xfinity mobile line for one year for all new and existing customers. And finally, we introduced our premium unlimited mobile plan, which includes 4K Ultra HD streaming, expanded mobile hotspot usage, and device upgrades. But in addition to pricing changes, we focused on making it easier to do business with us. We are incredibly focused on reducing friction across all of our channels, dot-com, phone, chat, and our app, and making every customer interaction an excellent and personalized experience.
For instance, we recently improved our digital buy flow by removing five steps, making the purchase process faster and easier, which has already driven more than a 20% improvement in purchase conversion rates. We also recently upgraded the operating system that manages our customer interactions to Google's AI platform, which will significantly improve our digital experience and route customers quickly to the support they need, providing our teams with full visibility into each customer interaction. Together, these changes we are making in pricing transparency and ease of doing business are starting to drive the results and customer behavior we are aiming for. Customers are responding to the simplicity and power of these changes with roughly half of our eligible new customer connects choosing our five-year price guarantee this quarter. We also posted a 20% increase in the percentage of new customers taking gig plus speeds, which lifted our overall speed tier mix and helped drive higher connect ARPU.
And we're also seeing stabilization in voluntary churn and overall connect activity in broadband. Momentum is building in wireless as well. Our free line offer and solid uptake in our new premium unlimited plans helped drive our best quarter ever with 378,000 new lines added, bringing Xfinity Mobile to 14% penetration of our residential broadband base and still leaving us with plenty of room to run. Before we leave broadband, I want to highlight a recent deal on the Comcast business side that strengthens our go-to-market approach for that customer base. Just last week, we announced a new MVNO agreement with T-Mobile in partnership with Charter. This new agreement pairs our industry-leading broadband and WiFi with T-Mobile's 5G network to expand our mobile product offer to business customers as a fully integrated solution. We are pleased to work with T-Mobile on this initiative and continue to value our strong partnership with Verizon.
So the net of this is, while it's still early days, we like what we are seeing in our broadband business, giving us confidence in the changes we've made and what's still ahead. We're executing on a connectivity strategy that fully plays to our strengths in broadband, WiFi, and convergence, leveraging the largest gig speed broadband and mobile converged footprint in the country that serves both residential and business customer segments and a best-in-class in-home experience through our advanced Xfinity WiFi gateway. With our go-to-market strategy in place and execution improving, we're well positioned to lead in convergence. Turning to Parks, we are extremely proud of the successful opening of Epic Universe in May. We're pleased with the early results as Epic is already driving higher per cap spending and attendance across the entirety of Universal Orlando Resort with strong food and merchandise sales and minimal impact on attendance at Universal Studios Florida and Islands of Adventure.
Epic is the most technologically advanced park we've ever built, and we are getting high praise for the innovative attractions, immersive environments, three new on-site hotels, and our strong food and merchandise offering. As expected, our near-term focus is on expanding ride throughput to reduce early attendance constraints. Epic is trending in line with our expectations and well on its way to transforming Universal Orlando into a true week-long destination. Beyond Orlando, we're executing against a strong pipeline of new opportunities to serve more guests. Universal Horror Unleashed opens in Las Vegas next month, and we're developing a second year-round horror experience in Chicago, tapping into one of the country's top tourist markets. In addition, in Texas, our Universal Kids Resort is moving towards a 2026 opening, and we're continuing the planning process for our new park outside of London slated to open in 2031.
These projects reflect our long-term strategy to expand reach, enter new markets, and broaden the appeal of our Parks portfolio. Turning to Media, our world-class combination of entertainment content and live sports and events continues to drive results across NBC and Peacock. We just closed our most successful upfront ever with record total sales and our largest sports commitments to date. Peacock was a standout, up more than 20% year-over-year and representing over one-third of NBCUniversal's total volume. Our upfront results reflect our unparalleled 2026 lineup of tentpole events, starting with the Milan-Cortina Olympics, Super Bowl LX, and the NBA All-Star Game in February, the FIFA World Cup on Telemundo in June, and the elections and BravoCon in November, along with a robust slate of entertainment and sports content throughout the year. We also expect to build on the momentum we are seeing in our entertainment content.
Love Island USA, which appeared exclusively on Peacock, was the top streaming reality series for the entirety of its Season 7 run. It attracted a significant number of first-time subscribers. And importantly, two-thirds of those new paying customers went on to engage with additional content, driving a lift in overall consumption across the platform. Peacock continues to differentiate itself with one of the most robust live sports offerings of any streamer, and that position will only strengthen with the addition of NBA coverage this fall. In fact, in 2026, Peacock will stream more live sports hours than any other streaming entertainment service. Add to that Pay-One films from our top-performing studios, original series, next-day NBC and Bravo content, news, and a full entertainment library, and Peacock continues to deliver significant value. To better reflect this premium content, we recently announced a $3 price increase rolling out in July for new subscribers and in late August for existing ones.
The impact of this price increase, combined with the strong upfront results I just discussed, helped position us in the fourth quarter as we launch the NBA and take on higher sports programming expenses, particularly in the first year of the NBA contract when we absorb the full impact of adding these new rights. So to wrap up, across the company, we're executing with focus, simplifying how we operate and leaning into areas where we have real competitive advantages. And we're doing it while maintaining a strong balance sheet and returning meaningful capital to shareholders. We feel great about the momentum we're building and confident in our ability to create long-term value. With that, I'll turn it over to Jason.
Thanks, Mike, and good morning, everyone. Let me start with a high-level overview of our consolidated results before getting into more detail on our businesses. Consolidated revenue increased by 2%, benefiting from our core six growth drivers, three of which are organized under connectivity, including broadband, wireless, and business services, and three of which are in Content & Experiences, including Parks, Streaming, and Studios. Collectively, these businesses represent nearly 60% of our total revenue and grew at a high single-digit rate this quarter. As you fast forward a couple of years, between continued investment in sustaining strong growth in these businesses and actions we are taking on other areas, including our announced spin-off of our linear cable networks into Versant and a recently announced sale of another one of our businesses, our exposure to these growth areas will be closer to 70% of our total revenue, which is fundamental to our path to reaccelerating total company revenue growth.
EBITDA grew by 1% this quarter. Adjusted EPS grew by 3% to $1.25, and we generated $4.5 billion of free cash flow while returning $2.9 billion to shareholders, including $1.7 billion in share repurchases. Now turning to our businesses, starting with Connectivity & Platforms. Beginning with broadband, the competitive environment remains intense as we had previewed. And when combined with the typical negative seasonality in the second quarter, resulted in 226,000 subscriber losses. But as Mike described, we are encouraged by the early reaction to our new go-to-market initiatives as we started to see some early signs of stabilization in both connect activity and voluntary churn. Notably, during the quarter, we saw roughly half of our eligible new customer connects select our five-year price guarantee, opting to pay more upfront for longer-term consistency. In addition, we've seen a 20% increase in the share of new connects choosing our premium gig plus speeds.
This contributed to broadband ARPU growth in the quarter of 3.5%. Looking ahead, we continue to expect healthy broadband ARPU growth over the balance of the year, although the rollout of our new everyday pricing structure at the end of the second quarter is expected to moderate ARPU growth in the near term as we begin transitioning customers to more consistent and predictable pricing. This includes the continued offer of a free wireless line for a year to both new and existing broadband customers. Convergence revenue sustained healthy growth as well, up 3.7% in the quarter, supported by high teens growth in wireless revenue. Fueled by the strength of our Xfinity Mobile product and compelling go-to-market initiatives, including our promotion offering a free mobile line and our recently introduced premium unlimited plan, we accelerated net line additions to 378,000 in the quarter, a new high watermark for wireless net additions for our company.
Our wireless lines have now reached 8.5 million and penetration of 14% of our residential broadband customer base, a rate that demonstrates both our success in entrenching our product as a competitive offering in the wireless industry, but also that highlights the tremendous runway we have ahead. So we're pleased with the results in the quarter and expect continued acceleration in the pace of net additions in the coming quarters. Turning to Business Services. Revenue increased by 6% and EBITDA grew nearly 5%. Our results this quarter include the acquisition of Nitel, which closed in early April. Nitel contributed a few hundred basis points to revenue growth and about 100 basis points to EBITDA growth. And we expect a similar positive impact for the next few quarters until we anniversary this deal next year. Our strong performance continues to reflect the same framework we've seen for the last several quarters, including solid growth in SMB and even stronger growth at our Enterprise Solutions business.
At SMB, despite increased competitive intensity, we continue to generate healthy revenue growth by driving higher adoption of our suite of advanced services, including cybersecurity and Comcast Business Mobile. In our Enterprise Solutions business, we continue to see strong momentum. This growing segment of our customer base has more complex needs, ranging from cybersecurity to multi-location connectivity, and they value integrated solutions and service reliability. These are areas where we continue to invest and lead. Connectivity remains the core of our business, and we continue to see a meaningful shift in advanced solutions. Three years ago, for every dollar of connectivity sold, we sold $0.20 of advanced solutions. Today, that figure has grown to approximately $0.50, underscoring the increasing value we're delivering to customers and reinforcing our competitive position. Putting all of this together, EBITDA was flat in the quarter, consistent with comments we made last quarter that our new go-to-market strategy would impact our ability to grow EBITDA this year.
We still believe that to be true, as our investment in our operational pivot will ramp over the remaining quarters of 2025. On the other side of this, these actions will position us well for long-term convergence revenue growth with a more durable customer base on market-based rate plans with long-term price stability and a discounted wireless offering with broader exposure across our base, giving us a large revenue and profit pool to unlock over time. In Content & Experiences, there are several key items I'd like to highlight. At Parks, revenue increased by 19% this quarter, driven by the successful opening of Epic Universe on May 22, while EBITDA growth was limited to 4% due to soft opening costs at the new park. As Mike mentioned, we're really happy with the consumer response, and we're pleased with how Epic is contributing to the overall Universal Orlando guest experience and performance.
We expect Epic to continue to scale over the course of the year with higher attendance and per caps as well as significantly improved operating leverage. More broadly, performance at our international parks remains strong. However, we do continue to experience pressure in Hollywood, and we think it will be a couple more quarters until we lap that. Turning to Studios, we saw strong performance from the successful theatrical launch of How to Train Your Dragon on June 13, which has grossed over $600 million in worldwide box office year-to-date, driving this franchise past the $2 billion mark. This success was followed by the July 2 opening of Jurassic World: Rebirth, which is the seventh installment of our $6 billion franchise and has already surpassed $700 million in worldwide box office this month. While the benefit of Jurassic's theatrical performance will land in the third quarter, the investment to launch two of our three tentpole releases back-to-back impacted our second quarter results and profitability.
In addition to Jurassic, we look forward to several more releases in the third quarter, including: The Bad Guys 2, Nobody 2, Downton Abbey: The Grand Finale, Him, and Gabby's Dollhouse: The Movie. In Media, total advertising revenue was down by 7%, in part due to the volume and timing of sports content as well as tough political comparisons. Excluding this, advertising was down low single digits. As a reminder, for us, the second quarter has historically lacked tentpole sports. So we've been more susceptible to fluctuations in general entertainment ratings. We look forward to that changing next year with the launch of the NBA. Looking ahead to the third quarter, we will have a tough comparison to the very successful Paris Olympics, but feel well positioned over the next year given our strong lineup of content, including the NBA premiering in the fourth quarter and the Winter Olympics and Super Bowl in the first quarter of 2026, all of which contributed to record upfront results that Mike highlighted earlier.
Our overall Media results this quarter were driven by the continued meaningful progress we are making in our pivot to streaming. Peacock delivered double-digit revenue growth and a nearly $250 million year-over-year improvement in EBITDA losses, which landed at $100 million this quarter. Despite the second quarter being a seasonally light sports quarter, we held paid subscribers steady at 41 million, driven in part by the wildly popular new season of Love Island USA. Before wrapping up on capital allocation, let me start by spending a minute on the impact of the corporate tax provisions in the recently enacted tax legislation. The legislation restores 100% bonus depreciation, reinstating full expensing for property acquired and placed in service after January 19 of this year and restores immediate deductibility for domestic R&D expenses. So how does this impact us? We are a leader in U.S. infrastructure investment.
We're a leader in domestic content production, and we're a leader in the domestic experiences category. In fact, we have the nation's largest broadband network and are extending our network by adding 1.2 million passings a year. We've just debuted the largest and most sophisticated theme park built in the U.S. in decades. We are leaders in entertainment programming and production with our film studio consistently ranked number one or two in worldwide box office. And we are number two in domestic sports programming and the home to many of the top sports in the U.S., like the NFL, the Olympics, the World Cup, golf, and will soon add the NBA. As a result of all of that, there are several things in the legislation that benefit us. And we estimate, on average, roughly $1 billion in annual cash tax benefit for the next several years, with much of the benefit relating to infrastructure investments.
In broadband, we've said for some time now that we expect, in the vast majority of our domestic footprint, there will effectively be two multi-gig symmetrical wires running into the home. And that's exactly what we've been preparing for by further strengthening and extending our network and innovating to differentiate the in-home WiFi experience we deliver. The change in tax legislation provides a tailwind to that strategy and further supports our U.S. investment, benefiting the company, our customers, and the communities we serve all across the country. So our expectation is that this legislation helps fuel the capital allocation formula that's been successful for us, which starts with reinvesting in our businesses, prioritizing a strong balance sheet and strong returns of capital to our shareholders through dividends and share buybacks. We've been shrinking our share count by mid-single digits on an annual basis for the past several years, and we expect to continue to do that as part of a robust and balanced capital allocation framework.
Thanks, Jason. Operator, let's open the call for Q&A, please.
分析師問答
Our first question today is from Michael Rollins from Citigroup.
First on broadband, you mentioned the early reaction that you've seen from the adjustments to your go-to-market. Curious if you could give some more details on the competitive landscape and how that influences the pace over which you'd expect to improve quarterly broadband performance going forward?
Mike, this is Dave. So starting with the competitive landscape, it remains intense, as we've noted. Fixed wireless remains very active in the marketplace. Fiber competitors continue to build more passing. So that certainly hasn't changed in terms of the landscape. From our perspective, we want to make these changes that will help our competitive position, leverage our strengths, but change the experience side of things to address some of the pain points that we've talked about. So while it remains intense, what doesn't change is our tremendous sense of urgency around getting to the other side, around whether it's all-in pricing, leveraging the gateway included unlimited, the free mobile line that's part of it, the lowering everyday pricing, the five-year price guarantee that's key, and all the customer experience changes. Those things are underway. It's real early to comment in terms of any impact at this point other than to say, as Jason brought up, that the early connect activity is very encouraging. Half of the eligible new customer connects selected the five-year price guarantee. And we saw a 20% increase in the share of new connects choosing the premium gig speed. So like the early results, but we're moving with a lot of speed and like the early results.
Mike here. I want to highlight the impressive urgency that Dave, Steve, and their team are demonstrating in response to the competitive landscape. In answering your question, all the tools related to our go-to-market strategy, the seven elements I mentioned, and our efforts to reduce customer friction are actively being implemented. These initiatives span across VRUs, online channels, sales channels, and more. We're making significant strides, and I believe that all our efforts are in play as we interact with customers, whether they are new, promotional, or regular customers. This represents a continuous improvement cycle for our business. As we encounter new challenges, we'll adapt to them, recognizing the importance of our business. Our ultimate goal is to cultivate a loyal broadband and connectivity customer base that values our products, resulting in increased retention and lower churn, while also introducing them to our mobile offerings, which we believe adds substantial value. This approach will strategically position us for the long-term competitive environment that Jason mentioned earlier, particularly regarding having multiple lines into homes over time. Our plan is to provide excellent products, outstanding service, and a robust network, all supported by the initiatives that Dave and Steve are driving forward.
Next question is coming from Craig Moffett from MoffettNathanson.
Let me stay with broadband, if I could. Charter called out involuntary disconnects, there's nonpay disconnects as one of the headwinds. I wonder if you're seeing any of the same thing, which I suspect would point to some continuation of the market impact of discontinuing the ACP program. And then if I think about Project Genesis and where you are with your network upgrades, have you seen any material differences in the way you're competing in Project Genesis markets where you're finished versus where you're not finished yet? What kind of market impact is that having?
Dave here. From our perspective, nonpay has experienced a slight increase, but balanced by stabilization observed in Q2 compared to Q1 with connects and voluntary churn. The rise in nonpay is minor. Regarding Genesis, as Mike mentioned, our consistent long-term investments, including mid-splits, have positioned us well. Currently, we provide gig plus speeds across the board, which enables us to compete effectively across all segments. We are on track and actually ahead of schedule with our upgrades and are rapidly advancing to DOCSIS 4.0. Our network's strength supports our competitive edge. Additionally, a crucial differentiator for us is WiFi. Our definition of excellent WiFi aligns with the network's capabilities, ensuring extensive coverage, high speeds, and smart management of multiple devices. Overall, our network standing is robust.
Our next question is coming from Michael Ng from Goldman Sachs.
I just have two on broadband. First on pricing. I was just wondering if you could talk a little bit about this concept of everyday pricing as a potential drag to ARPU growth. How many of your broadband customers are on pricing that are above those headline everyday price rates today? I'm just trying to understand how long these ARPU headwinds may persist. And then second, I was just wondering if you could talk about whether we're back to seasonal on domestic broadband net adds. Could we see improving net additions next quarter just given back-to-school?
Michael, our main goal with everyday pricing is to make an impactful start with Connect. We've seen promising results in the early stages, with half of the eligible customers participating. We plan to be proactive in offering appropriate packages to our existing customers. While I won't share specific customer numbers now, we are committed to being disciplined and purposeful in managing our base and ensuring that all packages are accessible to our customers. We'll take an aggressive approach. Additionally, as Mike mentioned, the more customers opt into these longer-term packages and are willing to pay a bit more upfront for stability, the better it is for us. These packages will help reduce churn while providing full product capabilities. Our strategy is to focus on a wide-ranging plan that includes connection, base management, retention, and implementing new marketing tactics. Regarding seasonal trends, we've noticed a consistent shift towards more seasonal activity over time. Q3 is always significant due to back-to-school demand, and we are well-prepared to capitalize on that. We've also observed seasonal trends in Q2 that we discussed, and it seems we're moving toward more predictable seasonal patterns that we've experienced in the past.
Michael, it's Jason. Just to round out the ARPU question. So as we said in the upfront remarks, we expect 3.5% growth this quarter, we expect it to moderate in the next couple of quarters as we migrate more customers onto new pricing with the goal being it takes several quarters to do this. But if you fast forward a year, two years out, we've got a substantial portion of our base migrated on the new packaging. We gave a guide that said we still expect healthy ARPU growth in this timeframe, but moderated a little bit from where we are right now.
Next question is coming from Ben Swinburne from Morgan Stanley.
Jason, you called out 3.7%, I think, convergence revenue growth, which is a nice way to kind of cut through all the GAAP allocations. When you look at the business in the back half, should we expect any movement up or down in that when you sort of think about the volume improvements in mobile offset by your ARPU commentary? And I was also curious if you had a cash tax number or help for 2025, given all the changes, that would be helpful. And then for Mike, just on Peacock, you've got a lot going on in that business. You're going to have a lot of revenue coming in with that price increase and the upfront, but also the NBA. Just can you talk a little bit about how you see the rest of the year playing out for that business just as we think about all those moving pieces?
Several questions there, Ben. Let me start with cash taxes. We have indicated that we expect to pay around $1 billion a year on average over the next several years due to our significant domestic infrastructure investments. We are the type of company that benefits from such investments. I would anticipate this figure to hold steady for 2025. While we won't continue to provide guidance on this, it's a reasonable expectation for that year. Regarding convergence revenue, I'll collaborate with Dave on this. For this quarter, we've seen a 3.7% growth. Looking ahead, we believe we are positioning ourselves well, as we will have a repackaged broadband base and a larger wireless base due to attracting more customers. This will allow us to experience growth, especially when customers transition off the free line. Many of these customers might not have been interested under our previous pricing and packaging, but now we can introduce them to our products and plan to adjust pricing a year from now when they move off the free line.
This presents a significant opportunity. In the meantime, we are likely to experience some pressure on convergence revenue. As mentioned, ARPU growth is expected to slow down in the upcoming quarters. In wireless, some of our customer base is coming in on the free line, which also impacts that metric, but we are laying the groundwork to reaccelerate growth in one to two years.
This is Brian. I just want to, just on the cash tax point, just use it as an opportunity just to say that any policy that encourages American investment really lines up extremely well with everything we've done since the founding of the company. So for decades, we've been investing mostly here in America, building the biggest broadband network, opening theme parks, high skilled workforce. And we believe where technology is headed, especially with AI and all the different connectivity uses to reshape our society and everything we do, that we are in a great position to continue to lead and invest in the nation's broadband fiber Internet infrastructure as we always have done. So I think it leads to the cash tax question that we are going to be able to take advantage of that policy in a way that's great for our customers.
Thank you, Ben. It's Mike. We have a lot happening with Peacock and NBC, so let me take a moment to cover some key points. I'm very pleased with the team's efforts. Starting with NBC, and while we'll touch on Parks later, great things are happening in that area. The Studio business is performing exceptionally well. Our Media businesses are facing challenges in the current landscape, but we've embraced the opportunity to establish Peacock as a streaming service, and I'm proud to report strong continued momentum there. In the second quarter, we achieved a revenue increase of 18%, which translates to a $250 million year-over-year improvement in EBITDA, bringing us to a loss of $100 million. Looking ahead, after the Versant spin, we will have a Media business comprising NBC Broadcast, Bravo, Telemundo, and Peacock, which will work synergistically by utilizing the strengths of scripted and reality entertainment, as well as sports and news.
Our Pay-One movies will also contribute. This new NBC Media segment is strategically positioned for competition, especially as we celebrate NBC's 100th anniversary next year. The business has a long history and numerous advantages. I'm really pleased with our strategy to serve customers digitally through Peacock, which wasn't the case just a few years ago. As we prepare for the return of the NBA to NBC, which has everyone excited, we will begin this fall and continue into the first half of next year, providing us a full year of sports programming, addressing the sports shortfall we faced in the second quarter. The NBA is culturally significant, and we are strategizing how to leverage this new audience in our entertainment offerings. The first season involves a major investment for us, and we will amortize costs associated with the business throughout the contract, with cash costs being lower initially, offering a working capital benefit in the early years.
On the revenue side, we are implementing a significant price increase for both new and existing Peacock subscribers at the end of August. The strong sports upfront is a crucial part of this, especially with the NBA involved. Over the coming years, we anticipate increasing Peacock subscribers as we capitalize on NBA content and shifting consumer preferences from linear to streaming ecosystems. Our distribution deals will also reset over the next few years, allowing us to capture more revenues. We're excited about rebalancing our programming commitments for Peacock and NBC. I won’t provide a specific forecast for the second half, but as we look to the next year, we are onboarding these elements, and I look forward to discussing the season we've completed next year. The Media business at NBC is set for growth post-Versant, post-NBA, and with a well-scaled Peacock. Additionally, our assets will be very appealing to consumers and suited for potential re-bundling of streaming services. The accomplishments of the team in these media sectors over the past few years are commendable, and I’m proud of the work done at NBC.
Your next question is coming from Jessica Reif Ehrlich from Bank of America Securities.
I guess it's tied to get to parks. Could you maybe give us some more color on what you're seeing in the market dynamics in Orlando, whether it's overall market growth? You mentioned that you're not seeing that much cannibalization in your own parks. And maybe like kind of ultimate operating leverage and how you see CapEx flowing through? You have great IP, but ultimately, you'll add more. And then maybe just stepping back, like kind of a broader question for Brian. As you look out over the next couple of years, there's been so much going on in all of your businesses. What do you view as the most underappreciated growth levers for Comcast as a whole? And then sorry, but Mike, a follow-up. You mentioned NBA, the costs kick in Q1. Why not Q4 of '25?
Okay, it's Mike. Thanks for the opportunity. I made an error earlier. The impact will begin as the season starts, specifically in the fourth quarter, and will continue throughout the full season. Apologies for the confusion. Regarding Orlando, I believe it remains a very strong destination for consumers due to both our park and those of our competitors heavily investing in the area. We expect this trend to benefit the entire market. Our primary focus is on Epic, which is new to the area. As I mentioned earlier, we are very encouraged by the year-over-year revenue growth in Orlando, especially when considering the overall parks, where we see significantly higher per capita spending. This increase is largely due to attracting visitors with the exceptional experience that Epic offers. Looking ahead to the latter half of the year, we anticipate good operating leverage from Epic and Orlando. Improvement in operating leverage will also come from the conclusion of the soft opening phase we experienced compared to the short period when Epic was fully operational during the first quarter. That's the situation in Orlando.
Jessica, thank you. I believe this is an important question and it's essential to consider our long-term perspective. There are several factors that suggest we may be underestimated in terms of our growth potential. We have previously identified six growth businesses, which I won't reiterate in detail. A significant part of this growth is centered around broadband services for both residential and business customers. We've revitalized our culture to prioritize innovation delivery. We're making a shift, and our products are becoming more interesting, with wireless playing a key role in our offerings and a stronger focus on customer transparency. This is a positive direction, and I think the narrative we create for consumers, with the team we are building, will resonate well. I am very enthusiastic about the progress being made. Additionally, with the Versant spin, which you will hear more about from Mark Lazarus and Anand Kini before the year ends, this will greatly benefit our growth businesses.
Those six businesses, which accounted for 50% of our revenue, are now at 60%. Following the spin, they are projected to represent 65%, and potentially 70% a few years later if trends hold. This significantly alters our narrative, shifting from a company with declining segments to one where a substantial portion is experiencing growth. Each of these businesses has significant growth opportunities that are promising. We are truly a unique company; few can dedicate a decade to developing what may be the world's finest theme park, and we anticipate expanding our presence in London. We also have smaller projects launching this summer in Las Vegas, and we just made announcements for Chicago, Texas, and horror-themed content. We have films and Peacock, and there's a lot of excitement within our company. I look forward to a day when our story becomes clearer, and I believe that clarity is emerging naturally from our current trajectory. I am very optimistic, and I believe the best is yet to come. Those are my thoughts.
Our next question is coming from Kutgun Maral from Evercore ISI.
I wanted to ask about M&A. There's been a fair amount of dealmaking across your peers, particularly on the communications side. Comcast has a long history of M&A, though I realize it's a nuanced regulatory backdrop at the moment. So how should we think about your interest level for potential acquisitions beyond some of the tuck-ins that you continue to make on Business Services? And maybe relatedly, I know it's maybe too early to talk about the path ahead at Versant, but whatever you could share on its inorganic opportunities as well would be very helpful ahead of the expected spin later this year.
Before we get to mergers and acquisitions, this is Brian, and Mike can add to this as well. I want to highlight something we accomplished this quarter that Dave mentioned, which involves T-Mobile in Business Services. Business Services now constitutes about 25% of our Connectivity business, accounting for $10 billion. We have been focusing on smaller organic growth, acquisitions, and M&A, as you've heard. We now connect more small businesses than anyone else in the country and are gaining strong traction with larger enterprises. This progress allows us to leverage mobile in our mid-market relationships to capture more market share. Our partnership with T-Mobile enables us to offer services in ways we haven't been able to before. This is a strategic initiative, and we are looking forward to a successful partnership. Additionally, we have a significant and positive relationship with Verizon through our MVNO.
With these partnerships and our approach to wireless, we feel confident. The foundation of our wireless strategy, as Dave mentioned, is WiFi, which currently handles about 90% of our traffic. Many find that surprising. WiFi is enhanced when you're close to a wired connection, and we believe we can integrate networks more effectively than anyone else. Our customers will benefit from two robust national 5G networks. Now, Mike, I’ll hand it over to you, but I am excited about the strategic progress we’ve made through smaller acquisitions and innovative partnerships.
Yes. Regarding M&A, these comments align with what we've communicated previously. It starts with our responsibility to consider potential opportunities, assess them thoughtfully, and diligently evaluate anything that arises. I'm speaking generally about this. You can assume that we carefully contemplate opportunities that could create value through inorganic means. However, we maintain a high standard because, especially at this time, we are undergoing significant transitions in our businesses that are being executed well. We have ample opportunities to generate value by effectively managing our existing operations and investing in growth, whether that be directly in our businesses or through strategic acquisitions that enhance our capabilities in areas like Business Services, as we've demonstrated. When it comes to evaluating our portfolio, we consider what aligns with our goals and what might be a better use of capital for our shareholders, which brings us to Versant.
Everything is on track for Versant to launch at the end of this year into next year. We have a strong leadership team full of energy, and the foundational work is progressing well. They will be ready to move forward. I won’t disclose their specific strategies, but they’ve been focused on the future of Versant since we announced changes to responsibilities nearly a year ago. This also shifts how we utilize capital. Versant is set to generate significant cash flow, which will support its future endeavors. For our remaining businesses, we anticipate revenue growth and a more concentrated effort on the remaining NBC that I previously mentioned. We recently sold a business in Germany that was part of Sky. M&A requires balancing various factors, and we are doing well in considering the entire scope of potential inorganic opportunities. However, our expectations remain high. We aim to leverage our management's efforts to enhance the performance of the businesses we currently own and manage.
Our final question today is coming from John Hodulik from UBS.
Maybe first a follow-up on Brian's comments on the business market for Dave. It looks like you guys are seeing some additional pressure on subs there. Can you talk about the competitive market you're seeing in that segment? And as it relates to the T-Mobile MVNO, you've got 14% penetration on the resi side. Do you expect the penetration of mobile into the business segment to sort of follow a similar slope? And then for Jason, on the $1 billion in cash tax savings, can you talk a little bit about what you see in terms of CapEx trends? Maybe on the cable side, are there opportunities to deploy additional capital maybe for further footprint expansion? And then how should we think of the CapEx as it relates to the parks, especially with all the new projects you guys have laid out?
This is Dave. Let me start with the Business Services follow-up. So there are a couple of huge categories for us within Business Services, as you know. On the competitive side that you mentioned, it's been this way the last several quarters. In SMB, we are the market share leader. There's increased competition. We see some certainly with fixed wireless. Fixed wireless at this point is not really affecting our high-end part of SMB. And so with all of the core mid-market and certainly enterprise, it's real value and the reliability, multiproduct solutions that we have and we have a balanced approach towards growing revenue and relationships across the board. So it's a little bit more competitive in the SMB side. Mid-market and enterprise, though, strong momentum. And as Mike mentioned, integration of Nitel is well underway and adding capabilities of aggregation in the U.S. and further the network aggregation, expanding sales channels, broadening of the product portfolio, in particular, advanced security. And then as you mentioned, mobile. So mobile, as Brian mentioned, the relationship, we've got a great one with Verizon on resi is a really important one with T-Mobile and business. So it's early stage, comes at a really good time for us to kick start a higher gear for our business services team and including mobile a big part of how they compete. So more to come on that.
John, on the CapEx side related to any sort of cash tax relief that we've articulated, let me step back on infrastructure as a category. A few of you have asked sort of questions related to this, but we are building out 1.2 million homes per year. We've done that. We're on pace to do that this year, did this last year. If you really step back, this is a validation of how we see ultimately the market for broadband, right? And we're in a competitive period right now. Not sure we expect that to change. Fiber will continue to be built out against us. Fixed wireless is going to continue to have sort of a niche it carves out in the value-conscious world. When we build new homes, though, it is against a framework that the competition of the future will involve two wires coming into the vast majority of the territory that we serve in addition to fixed wireless having carved out a more permanent niche in the market.
Despite that, we feel very comfortable competing in that sort of environment. And so as we look to invest, you can look at the cash tax profile, the changes that sort of dictate in terms of return profiles around investment. I would tell you it strengthens the case on the infrastructure side. So I would look for us to continue to be very aggressive in building out new homes, very aggressive in infrastructure investments to support the Genesis investment around mid-splits, DOCSIS 4.0, and how quickly we upgrade the network. So I think as I said in my prepared remarks, any incremental cash will fit into our traditional framework, which is, number one, investing in our businesses. And on the infrastructure side, this new legislation is a tailwind to that. On the park side, I think as we've articulated before, you've called it right in your research, we get a little bit of a break here post Epic.
So obviously, we had substantial investments going into Epic. That was a big new launch. We'll trail down off of that for, call it, a couple of years. We still have obviously a lot of investment going on in parks, including the smaller parks we've talked about, that will sort of fill a little bit of the void, but nonetheless, we'll trend down for a couple of years, and then we'll ramp back up as we approach the park in London, but I'd look for that to be a couple of years from now.
Thanks, John, and thank you all for joining us this morning.
Thank you. That does conclude today's conference call. A replay of the call will be available today starting at 11:30 a.m. Eastern Time on Comcast Investor Relations website. Thank you for participating. You may all disconnect.