“I think we're going to see the balance of the year look very much the same to what you saw right now.”

In context

“John Stankey : Yeah, Peter. Things obviously stepped up a bit on the promotion side from last year to moving into this year. As you've heard me say before, I'm not sure that was all unexpected. When LTVs are improving, it's likely that there's going to be a little bit more activity put in place to promote and try to attract customers. I think we saw the general per account, per customer economics improving in the industry. As a result of that, there was a willingness to invest a little bit more to bring customers in, and that's the pattern we saw last year. The fact that it's now hit a different level and maybe it's stabilized a bit doesn't surprise me because I think people rationally look at it and say, "Do I want to take it the next step up if I'm not seeing fundamental shifts in LTV?" The answer from an economic perspective would be, of course, I'm going to be a little bit more deliberate about that. I can speak for our game, it really didn't change last year to this year, which is we spent a lot of time focusing on getting converged customers. We want people paired with our best products and services. That, in particular, those are accretive and effective customers to chase, and we're getting a lot better at doing that. We're opening more footprint where we can do that. We've been directing a lot of our promotional activity. We've been directing a lot of our retention activity in a way that plays into our strengths in that regard. I think that's why you're seeing the strong margin performance you're seeing. We're able to keep our costs in check, same time, managing good customer volumes and getting the kind of metric performance on convergence that you're seeing moving forward. The team has executed well in making those things happen. I think that's how it works for us. That's the game I want to play. I can't speak to others. Some aren't, I think, reporting churn anymore in the same way, so it's sometimes hard to understand exactly what's going on. I can tell you this is what's working for us, and I feel pretty comfortable that play has some durability and sustainability and why we're engineering ourselves to do that. I think we're going to see the balance of the year look very much the same to what you saw right now.”