VZ - Earnings call transcript Q1 2020 | Verizon Communications Inc.

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Operator

Good morning and welcome to the Verizon First Quarter 2020 Earnings Conference Call. At this time, all participants have been pleased in a listen-only mode, and the floor will be open for questions following the presentation. [Operator Instructions] Today's conference is being recorded. [Operator Instructions]

It is now my pleasure to turn the call over to your host Mr. President, Vice Senior Connor, Investor Relations. Brady

Brady Connor

Officer, Good XXXX earnings Brad. I'm Financial with Chief Officer. morning our Matt Brady and quarter first here Executive and Chairman our to our Vestberg; conference Chief and and Ellis, welcome Connor Thanks, Hans call. is This

our and this made Investor As A Relations our information replay financial call are be slides website. and and release, reminder presentation on available of will website. available also a operating transcript earnings the on our

get on in we expected harbor the our contained available is contains may your risks results like attention to draw filings uncertainties. SEC, Verizon's to Before which in are subject financial about and started, that to affect slide that Discussion I'd future our statements and website. on factors with are future and results safe this statement events Information forward-looking two. presentation of

of most slides included a sequential. This financial quarterly unless measures. our financial basis, measures our website. presentation disclosed Reconciliations presentation growth are are remarks formal as measures during non-GAAP year-over-year otherwise GAAP The rates the certain in contains in posted noted comparable on our these to and materials non-GAAP on the directly

Auction related adjustment of special a of approximately $XXX licenses mark-to-market earnings consolidated pre-tax loss to on on to billion from XXX related pension the for a of of the $X quarter include a Now a and items first earnings a look $X.X per GAAP liability. including net million we reported let's take at first In share quarter, billion, $X.X quarter. for first spectrum earnings our a charge loss basis. Reported

$X.XX $X.XX quarter, compared share adjusted up earnings effects the special to of ago. the first Excluding year was in X% per these a items,

first now earnings move profile. quarter our closer and at to a Let's take look four slide

XXXX on ASC final a income year-over-year statements. for adoption to standard impact material be year our will XXX accounting expect recognition the the of that revenue have We

year, realized a was to commission realized which of adoption quarters, reported the during impact benefit the adjusted previous the quarter ASC in XXX first expense. The $X.XX illustrated lesser due and we reduction a the of per prior of throughout the deferral benefit we As for earnings primarily the both to The share, from to quarter. year-over-year will XXXX. creates continue headwind compared

detail For the XXXX earnings over $X.XX. full approximately of later. COVID illustrated growth partially was the reflects Matt expense the the on X% by We a and be from EPS business, year quarter. headwinds negative reported underlying the estimate there we impact performance net year through expect from during EPS expense. deferral this Adjusted $X.XX of in the the go deferral of more to of the adjusted offset commission of will prior the in waterfall included impacts slide commission strong

turn now to we I'll this walk of over during recap that, the call unprecedented the actions Hans have With to time. a you through taken

Hans Vestberg

-- crisis call. ones in very Thank and the earnings have this all you, previous to is an most that call telecom I I've in done. earnings This different that Brady, is welcome from world. in crisis of one a and totally wherever This and in crisis are XXXX, health us something XXXX. you a each every that crisis XXXX in is bank impacts pandemic different. with this It's been

of work company split I'm our we continue made the middle team, to happening to this together. that in how and of Verizon. we're our all in attending proud on forward. things our and management team split February the decided drive to stacking business that actually Verizon, see a order crisis in that of In the size the leadership in up early team the been have team very we of crisis We we how

four our Our how on based stakeholders. been COVID-XX manage we has response

thinking and about and We positive our all for have all impact taken decisive the stakeholders. action, long-term balanced they're but

me quickly areas different Let stakeholders. in over we done of have what go

working in moved employees side, of our all setup. home. from have majority We productivity that high the quickly the environment. to On employee are Today a we work-from-home

We our new work some XX,XXX of employees and home. work own from with retrained to have also tasks

third some And delivery. that parties is additional part X,XXX of our of

keeping But have open. need serving our same a to we at keeping in customers, lot employees time, stores acknowledge up of also we our frontline the networks the of as some

But We a they open, role besides hospitals keep happy most and great opening to of responders the infrastructure job. important a course, limited vital and by only have also XX% with of and to team up are right this our first stores the roughly times report I'm now playing in doing country appointment. is

residential our talking during by Americans the our been late customers this we time, crisis. the are new customers Connected, have means pledge about Keep demands attending fees also or same the impacted all part with have coronavirus. and And that of businesses At the of customers, we and for that we waiving medium been small are which overages

will performed Our network later. has come I to that little a back bit well.

it responsibility. When Large important the helping corporations comes now. also communities, extremely that's need in our to to society, right work take the

some have the concert is PayItForward, side. done it which our like We of

helping WHO help Sometimes and We needs celebrities also the organization most call But three supporting and ultimately vulnerable PayItForwardLIVE. is in which society. with and or other gathering work that times to a bringing medium in week, actually and it our people small adding concerts businesses.

Times education across not had also New Finally, adding the we all all already have school the we're support focused side New the but we're only together country. for, students that schools content York offering on, on the from that supporting York always to high their Times had the been

that So proud area. in doing we're what we're

cost quarter the with also seeing doing lot We're what in we're doing on less our financials, but course quite the we're as have in side. usual. this a we're already of measurements we everything finally spending cost third-party taking worked And from traveling prudently that first

that in we of we it that was into see that a robust message because a investment moment went we course the network CapEx CapEx. top time would return have incremental we we the to is on networks know guidance as really same that us At felt for how quarter a On good in sending on we time be think don't a continue time the of to increased the that used. good

has the cost-effective time, is same Matt his great that best the and think, the scenario that we we team. leadership shape sheet of done planning. with job have we're also we that the working this bond I as At really and end balance scenarios costs in in a going Nobody working a but And to team actions with through is how of quarter knows added had. seeing are liquidity our very middle several

the on about up tools, every talk And seeing we week the me development have on network the numbers bit a of Let and staggering some little outbreak like up are XX network XXX% of collaboration been since the over times XX% video. up gaming, you pandemic. reporting on our

XXX the day million is network. that year. which with we calls have Day been a All well amount day, is very we the managing what of biggest twice Mother's have a which on the

we have We can a and built robust deliver high quality. network

on much where feel see you that look that we settled the usage If and in on type have it's network we week-to-week, slide now the of We of of less used. the can changes. we have then

variation. it's very small So

And places since our I are customers New on basically certain the cells over just the mobile the it's XX% York COVID-XX. of out moving want mobile handoffs, down between outbreak in City to XX% point handoff. which how reductions like different is

network. the our Day we network to how -- So show Investor versus busy all it capacity when how is This hold during then hours the the the how up wireless comes those in changes? our

see you continue main were same we that, we in network the come the of is all, first headroom And the prepared. into keep As can when the to we COVID-XX. reason

capacity. added have We

to the of time this using crisis insurance as us would and very temporary use SEC our different usage applications. a the so frames usage the that is of network. also greatly go the team network report different in can the But job the has up beginning enormous But an with wouldn't operations is spectrum exclude this if any AWS-X I fantastic of and we And keeping our done well somewhere with and network know. and the changes lended technicians that however,

hand for before five by wave adding right is which our very spectrum encouraging. good a business our of had grow also of our We digital continue also piece that nice now sales work finish XXXX to see than very of They it very intact. course our But that handle this have up holdings strategy. to good our we strengthened over business core I and towards millimeter us strengthen unprecedented, to core business talking can are Matt execute to When and Let commitment. the strategy. core about both we crisis, but to is and progress four we before we course on me which gives more comes we

leverage are fiber XG plans to assets our report also our quarter. comes I in And the the the plan today of on ahead out and growing ended that are of on can bit and a build future plan it were plan. XG We little we when the we're and first plans When our with still we fiber.

and our on. when is comes course, to COVID-XX challenge it so out Of there

ways my approvals new problems going on forward team very There And and the have many our I of innovative continue are of the collaborations also the by hard with ways are the to municipalities that that deployment. from this. actually municipalities There ways. and finding field it. to new innovative team see set are be but drive to do confident But we ways great we do from might am dealing in

where opportunity what BlueJeans about want We fourth Verizon said in there in great to video extremely the the but both where then the future the acquisition, see important. Group also BlueJeans going that's and, to think be course, Matt existing capabilities an capabilities where add do acquisition our of we added investment recently in Business we our of we now accentuated just we to also and quarter XG to distribution, adding talking this the I for COVID-XX are

that. continue doing. both we and what Matt preplanning discipline we're that drive financial the On leading work is to

this And you. see is employees that finally about your with have so you our which purpose-driven important to company, all time

doing are lot impact in a of society. We the

We volunteering of where the lot in our times. these right to tough actually now a can virtual society have employees contribute

and with what we're of actually in every finally, on basically doing also where uncertainty. to everyone going our order times that see in knows we're live employees And webcast we day communicate a

all Quickly delivering growth includes impact much strength COVID-XX. challenges, The strong year-over-year. of in the also flow segments of on revenue, COVID-XX will and come first earnings, it their service adjusted our on had which growth cover but challenges better. I'm X% but wireless this the cash proud the quarter, Matt then up quarter. strong also from the Mainly, in a team their XX%

un-clarities continue we guiding in the all to certain predict to don't market actually revenue the hardware the guidance, this decided will will decided guide understanding need items all that have on will we And that and it. is continue so happen. in guidance and We with certain assumptions on are knowledge that of We But even Matt hard the not with the are to always we do Finally as detail, moment. the to we because to there but EPS on at revenue, through about may go the other going make well. future. what

that, it over to hand Matt. I By

Matt Ellis

and Hans, morning, you, good everyone. Thank

As time. an Hans in discussed, are we unprecedented

the we the taken during few the of experienced various of the measures the we impact crisis the first As of trends half than a the emergency, and first last COVID-XX weeks. two during different address months did and starkly quarter to result

addressing interested trends that what and year. the results business, the understand quarterly a of recent in so we our spend go second most more high and are quarter expectations currently the and full you at the in level seeing the how time impact they through We are more most I'll for

In consolidated review our down in in quarter, the equipment and begin revenue billion, $XX.X offset operating in wireless by results. Consumer will sharp operating We revenue. was with consolidated reductions both was revenue service of X.X%. and financial Business Growth a first the segments

in-store to result a was Consumer due XX% COVID. in the down the the revenue limited engagement quarter equipment by in March, customer segment, wireless primarily Consolidated first of as over driven

non-recurring was through COVID. from Low wireless last volumes billion, and Adjusted lower to promotional bad revenues wireless March improved $XX.X lower resulted in offset impact EBITDA These Verizon more margins and Group a down year, usage by spend from than including expense, that equipment decrease in slightly revenue Consumer in higher the Group decreased debt were Media advertising customer charges. from benefits actions in churn. fees and drove benefits

these Our of largest incremental $XXX was bad debt million the component reserve of items.

million, $XXX expense that deferral headwinds EBITDA is approximately which XX EBITDA reduced The margin earlier the points of Brady in commission the highlighted quarter. basis an from by of impact to

activities cumulative Business $XX Excellence on the by billion We billion $X.X to have realize in of two of uncertain put of the the have over goal a and adaptive to end XXXX, position to us through past savings years the first focus continued quarter. program end times saved of agile in The these. program be like this with the and have our more cash

was This from an the debt COVID a included our $X.XX, $X.XX, Adjusted an up driven by net from year quarter of first $X.XX impact ago. EPS of for bad estimated approximately primarily increase reserve. X.X%

results starting slide Consumer XX. with Let's on now turn to Group our segment

Our connected work personal services in them their best-in-class while continues Consumer keeping team to deliver to customers, our and communities.

very difficult particularly frontline performance workers' are meet proud customers' this needs our to efforts the We during period. of our extremely team's

transaction volumes during restrictions and first to Later the slowed discussion promote the due significantly, taken call, we serve distancing. other social exit quarter. customer to in measures the I new segment shelter-in-place environment. a seasonal into March, customers Consumer the Our our this year as rate In policies, low typical go travel trends will activity deeper with in started on

was equipment contributing adds decline year activity just our the down over revenue. quarter phone the a volume losses at X.XX%, ago. phone performance first and for the retail XXX,XXX the during from in basis to is year-over-year remained solid quarter were down upgrade points and was which Consistent gross postpaid rate Phone quarter low wireless with impact quarter XX% and postpaid COVID nearly one quarter. the were throughout key the First four net of of factors seasonal churn

employees to for limit customers other this distancing We as traffic. our continue and policies safety social store to trend expect as long to continue and measures protect

related Fios broadband as of and and high-quality Internet were in-home net utility the demand sequentially our measures work and offerings. from other increased additions XX,XXX home year-over-year, for schooling up

the for Fios past customers customer locations have providing continue. we functions. In video order net and entering and services, except our losses ensure accelerated are trends currently the approach and over to while we our not for expect employees, to weeks network quarter, the cord cutting of safety modified critical critical few

performance. Now, the financial to to XX let's discuss slide Consumer move

segment added which Consumer with number of strong Our we entered end impacted quarter. wireless XXXX significant as XXXX, first a the towards favorably momentum, connections of the

Match in broadband providing pricing consumer and the launched new products, choice we transparency Fios Mix For our & offerings. our video quarter, early and price in

expand our wireless also across customer offerings We Mobile digital introduced media to our Yahoo base.

significant revenue generate more We by this continue was to strong But service equipment a low and other revenue offset revenue to growth. in activity. wireless decrease due than volume

offset for revenue broadband year-over-year. down high debt in the in result increase growth connections impacts. profitability and The in the in strong COVID quarter account segment Consumer drove total plans a unlimited per X.X% for as demand an our was segment, by increase expense services of bad

headwind commission limited from expense. Lower XX.X% XX of on performance. points revenue approximately included a over basis was EBITDA year deferral impact of overall the had our points EBITDA equipment margin Consumer up and the XX prior basis of

Now let's Business to the Group slide to review move results. XX

time critical support crisis, our During wholesale this connectivity the Business to at enterprise, team serve impacted those when small and business, our is is a medium to providing public sector customers. and forefront by

team's our workers. We they we for so mentioned, others. partner healthcare remain are extremely essential services And proud providers customers deliver outstanding work first and frontline our other as serve of to Hans an responders, can to

saw as circuit were VPN our more and Businesses demand for and need the mobility, we than the strong first capacity for services services demand now in our saw high-speed quarter, trends and in quarter. products services Business ever Jetpacks, throughout we strong heightened March.

offsetting on see global you the the detail and by year can and small at phone from the products, up adds look for in gross wireless slide with were you business. in public prior enterprise XX% As driven strength pressure medium sector

phone in and This to with churn postpaid of public small postpaid by adds pressure in Business segment sector net medium in X.XX% was business. of XXX,XXX strength phone offsetting of net contributed flat year-over-year total quarter XXX,XXX. and the driven adds

financial segment performance. year. the to the for Let's to were the down from now quarter Business approximately business prior revenues Operating the review slide X.X% move first in XX

up strong enterprise legacy This by wholesale Wireless offset and SMB driven and was growth were wireless within revenue year-over-year of service revenues X.X%. by public wireline revenue sector declines.

the than by the and in usual solid EBITDA the investments tight encouraged quarter, in and the as performance even strong are growth. business transformation was ongoing first We by wireless driven higher around performance spending with generated profitability for future which segment volumes controls we

Now to discuss XX on to Group. move let's Verizon Media slide

the business. COVID almost quarter, to last down first was in entirely billion, digital year, Media is X% the impacts. During similar COVID Group's $X.X search performance advertising to by impacted by revenue others and compared Total Verizon driven

COVID, continuing to improvement seen Prior the XXXX. in steady were trends year-over-year our revenue

customer But search declined seeing in engagement and are increased We across the levels platforms. our of advertising rates current revenue environment. have

hub Yahoo! customer are Finance Mail, we users Verizon launched newsletter keep their Media around of Yahoo! is on area globe as trusted coronavirus News both and and in content. what significant COVID-XX's Yahoo engagement through a driving the which happening informed aim to and with on

Let's a and shows wireless performance. wireless the the and to the key combined for quick Consumer XX look the products Slide from and now financial XX data slide first move quarter. services Business metrics at of segment the for overall

revenue the service year. X.X% grew wireless Total over prior

release's Additional our and details on information our provided schedules the website. are operating supplemental in financial earnings and

from $X.X billion, let's the slide activities the quarter flow year. sheet of our from $X.X an flow XX. prior on cash Cash operating for billion Now review was and balance increase

did that operations this year improvements partially payments voluntary well repeat quarter. not by in capital was working contributions from pension and XXXX the of Separation first as Program growth year-over-year as quarter our Voluntary This the driven this

is billion, billion up the year-over-year. $X first quarter spending Capital totaled approximately for which $X.X

be it capital to the timing We year. spending front-end loaded of more was expect last than

continue add to more capital cell unprecedented our our and support sites across while rollout. for deploy networks Our additional we expenditures support to to growth capacity traffic fiber continue XG

As March, activity this flow $XX.X we which was and mentioned to billion our continues facilitate earlier support in was cash year-over-year billion to economy Verizon's in network $X.X of the guidance our quarter up for Free dividend. XXXX full XX.X% and $XX.X CapEx we increased period disruption. the during fund to year to order help billion,

XXXX. continues sheet balance bond very maturities end strong Our of the with to unsecured be low through

was Our net ratio adjusted unsecured from EBITDA debt to year-end. slightly times, X.X up

move we have look a and XX the in March on trends seen deeper half April. at slide early to to the into take Let's last of

During the with month consumer were state activity and new recommendations and distancing, small diminished our of implemented measures March as business COVID significantly. safety retail for federal social

By support we demands activity we dramatic the behavior same halted and large customers increased and At some of to the for home country. other home services. business responders, work from closed saw time, new experienced frontline critical and public enterprise a in from crisis customer schooling the and demand stores arrangements middle March, shift as across sector our connectivity other

selected XX environment. COVID long April continue. early view March impacts XX the unclear how trends provides will offers this current from more of metrics and At through a slide in-depth the of these it This point is

the Group safety XX% we our social distancing Consumer and in-store services throughout retail our stores of day In company-operated reduced measures. closed for nearly

over this adds from in the XX%. experienced declined this gross a As same wireless upgrades slide prior see period. device Consumer the you can nearly during XX% in year drop declined significant customer and period activity and we volumes on

switching customer improvement churn. the expected in led across industry entire to a has As lower phone significant

and keep nonpayment Keep of the the the late Connected waive for in to in help and Pledge event FCC's pandemic will connected the any March the fees due period industry's pledge. of we Americans As customers to part customers signed of effort the

overage data gigabits metered XX hotspot We This small for quarter. along plans and the added to usage in-home also business usage and of consumers in data has unlimited WiFi increased lower additional resulted data plans. have to with in revenue

are has actions work to can keep social as performed the technician when Fios consumer such we be changed be time currently for inside would these order customer and dramatically installations outside are performing or home customers that this over to revenue. short limited required. and In distancing, not period safe consumer home. those Gross the our impacts to addition behavior the reduced In the roaming by international employees customer-focused directly with adds generally working through

we gross In and small businesses small the reduction that seen group, in the are of have major and cases our contrast have shutdown. in portion seen same improvement the churn our time. activities drop-off in for we broken and upgrades in showing this customer we as In Consumer many at Business not seeing a medium out steep trends business a adds a have to group full

Wireless for over For enterprise were adds global and public number the remote by an gross sector up have seen and demand phones, connected mostly in schooling increased people solutions for for a as are prior connectivity XXX% greater period similar we from some demand other the customers, year, of devices. these working customers and home. driven Jetpacks

with connectivity Our ability first fronts country responders need their most. and they support relationship workers when to other superiority and in the enterprises us has across given network needs long-standing Verizon the the

addition in this adds points with we phone public seen retention increase an improvement improving the In to our enterprise in period. activity, basis churn by customers during for XX sector have and gross

we time enterprise, ensure see be long-term of they're even believe relatively public if will to a may of impacted our initially, with but wholesale customers increased the working sector customers stay We as crisis. our that our from during SMB result risk experiencing less connected are and they this COVID. customers all We hardship financial than

percentage suspension by Group points revenues. usage-based a fees than overage quarter service in the reduction impacted expected in our roaming X Business the increase service of to X Consumer believe an lower in we result Across total as lines. wireless in be growth in Wireless and and second revenue fees, originally to in international and reduction Business, a reductions of revenues are being

under during as who $XXX expected of this the will our reserve customer increased payment Additionally, avail time. customers million relief expense our quarter, based bad we debt by on increased around themselves In number Americans first bad result of Pledge. payments debt a Connected the of Keep expectations the changing

stay Consumer customers We despite we'll work will circumstances. behavior help to and and to payment Business connected them continue monitor with difficult our

As a required quarter. it bad reserves the may possible result in additional debt is that be second

search this users we Media, decline during searching in advertising are fewer and a for hold terms revenue opportunity cancel time advertisers providing experiencing campaigns monetization. us less as are Verizon pause, or for In back commercial and with

As a result, month A by to and the to XX% has number broader month advertising half media in in Verizon likely nearly decline of are industry in the March mostly declined forecasts to expect April. with revenues XX% impact of digital second in increased those in revenues the industry. COVID of XQ that rate similar of Media's and in a XX% results experienced be the decline

let's XXXX. and guidance we Obviously, than few go when Slide months ourselves for to we a in outlook today environment our is to ago. XX vastly gave discuss different the guidance find Now just originally

experienced, guidance updating financial full the we magnitude conditions unprecedented our are we the all have the for Given year. of

and business ability growth. our We to generate remain strategy confident our in earnings model long-term our sustainable

consolidated guidance to January has few percent Our year-over-year of headwinds years. low create the that included revenues XXXX would in in revenue expectation announced as it we past the growth that similar mid-single-digit not equipment

this us withdraw for device we is the around mid-March year. consolidated revenue that of around revenue outcomes it with that determine range wide However, quarter have low guidance at remainder led to our expect time. throughout behavior customer been to equipment the to activations of uncertainty prudent since second and The the continue potential

X% For we and X% adjusted year. positive guiding to revising guidance range change a the to EPS, are are original prior X% to now negative of X% of growth our from

on throughout estimated that based a new headwinds second prevail the quarter. significant assumes is scenario range Our

into will depend which visibility various the We have the of half limited environments. year, on operating potential second

impact debt to our an the between now develop on on update We business, earnings and call continue expect will provide next based our on to reserve things how then. assess our bad of and COVID including

effective Other remain expense for as originally adjusted intact and including which provided interest and we income the statement guided. depreciation rate amortization, guidance tax items

earlier, March. we our we As the CapEx in that announced guidance mentioned we have year full for maintained

we Our supply sourcing a chain have and partners. remains necessary network seen our slowdown from the equipment device of strong in material and not

will measures crisis. on optimistic government experience that continue impacted this while which extreme to nature taken provide the best-in-class financial customers, the our have We remain part been is to of believe operational resilient this world We agencies have drive and doing responders to and support short-term that our of long-term frontline Verizon network is weathering to well citizens, are Despite success, the performance through by disruptions. all suited businesses we and to keenly will situation. provide focused the what customer that experiencing, remain

a XX take Let's balance look at our slide position. sheet liquidity strong and to discuss

COVID have balance ended few Over us past results years, actions the those of during completed on our planning of put cash first the our good market manage the We in balance a in we and have strategy we the and strategy higher strengthened pandemic. cash offering quarter sheet hand. that is of of a position billion to through bond a billion crisis impacts $X March. $X.X with Carrying liquidity on a part with executed the

first the quarter no with outstanding, second liquidity. the started paper quarter have In accessed this but further ended addition, in market our enhance and commercial we to

many first the the a one a crisis. and including Having During reasons, completed have quarter payment for may device also customers disruption that before market expectation now right is the as of our difficulty payments of of cash securitizations timely certain result cushion largest billion. prudent $X.X making we our

on their with our programs. these monitoring impact ABS closely regard are to We trends,

a bond some maturities for low. Scheduled zero keep are from continued quarter, the unsecured maturities that Auction the nonrecurring In liability of result maturities we including licenses XXX. as rest spectrum strategy cash second and $X.X outflows had billion of of near-term our XXXX of management $X.X billion

our our at status to prior end to market XXXX, funded discretionary we pension of subject contributions Additionally, conditions. expect the plan no and XXXX mandatory until given contributions,

pension Our further have recent been of liability to ratio status in protected we XX%. funded has years as about the our hedge increased

first of at declining in plan of pension our XX% status end the to resulted quarter. from This only year-end the XX% funded at

assurance Our group $X.X standby our credit liquidity. billion further with facility provides of bank our of

strengthened, Our the been navigate our and balance is position difficult liquidity as this customers strong has further sheet our markets. and we for period

paper We access the to have bond weeks. demonstrated ability recent markets commercial in and the

Our strong stakeholders. all financial of also position while supporting continue gives us to to confidence invest, our

Hans and it questions. our to back then provide XXXX priorities get a to to turn your at look I'll we'll over

Hans Vestberg

Thank Matt. you,

just into Let with round this in and going me year priorities the future. off our this

more First the and the of we're term very long-term all, well in both to create execute value that feel I stakeholders. to positioned our for near all

is good a X.X new We I but feel a And new more delivering come. right and results already transformation, we we network new that go-to-market, which leadership, are now, that. a to have have Verizon the on technology,

we the is as it think both this making we're cities, And XG also in the XG that them. all as order The saying a much middle long-term you have in And to around value response heard of very is the and our year. very balanced all way for going the the stakeholders all that. strategy the the keeping see create center covering in I opportunity our of the strategy. a forward me with is still building there. COVID-XX in middle we're the execution before good all doing and great we up this not mobile well XG as edge time compute halting nationwide team of We're XG work still with

feel and position talked our capital discipline about about financials allocation, that. capital and our and our good Matt the I

a in allocation in holders. all our last put order our in not from the shareholders also last to our us all tremendous continue debt situation way meet months, the done have to to to our the capital demands in months good the to XX three but business We

we been reinforced times to response the practices dealing with both also brand by by think have our way society. we're And talent ultimately we that but has like the the that and the I have business strong our in

all-in-all, good about I So, strategy. feel our

we but I time, think need are our a execution that of to managing we're not middle on where execute doesn't same multipronged strategy. the the it. the that of at strategy crisis mean have should we We in

Brady. So, by it you hand to back that, I

Brady Connor

Thanks to ready Hans. questions. Brad, we're take

Operator

Thank you.

Sachs. Goldman first Brett begin We [Operator from will question session. comes Our now question-and-answer of the Feldman Instructions]

go You ahead. may

Brett Feldman

question Thanks. question. Thanks the updated taking for about your EPS A guidance.

a activity would with during certain noted that has associated business declined your I the significantly. cost assume savings you As in presentation, of that. degree there's

some seeing where You some areas highlighted pressures. you're also

as revenues highlighted roaming You example. an

was caused the and a outlook I into the you to little lower takes earnings for give over you a more insight us that of see maybe hoping can slightly puts year. course So, just the

you're And quarter. if a saying to then reflects outlook headwinds variance this expect you're the you you in revised for that Thank whether the those remainder that just will year of to point the to I'm saying result be you or quarter clarification earnings year see second expect in in report collectively curious the that primarily of change? that headwinds second contained the you. this said

Matt Ellis

question thanks for Brett the morning Hey and good everyone.

into up some So, break really we there, prepared it are and the as at in the side it guidance of went items as when at in think the you look about second you major through quarter, look the I remarks. two But buckets. for that the revenue

the actions that about actions of think and customer we've taken or -- in changes behavior. impacts the the You

we've it quarter think in period. the majority QX. that So, is actions Keep see second more that we'll as the impact off in obviously, with, the we start starts Connected Americans QX for in than taken, of XX-day and I vast so saw about Pledge The and

XX data. that be customers plans. on customers Additionally, as or gigabits of And are on who those metered we an whether plans for unlimited hotspots mentioned, extra on we've given

the normally we gigabit significant overage May. the end So, through Earlier would to be collect. announced would we that have the this extending of that's we on XX going that from end April week, impact of a fees that

On roaming. behavior international obviously the side, is of obvious the one customer ones

low to your in pretty quarter. can second roaming international fair you the say for revenue for put a number it's model think I

But there to accounts see revenue also in of period in around over lines on the side as those of we have suspending that SMB customers especially too. think on some would expect this business, impact we will an and time their the the

in we up should things growth X% So, X% those the year-over-year of kind when all that to in impact QX. revenue service see add those range we the

Some obviously QX. will beyond of extend those things

of things control half environment of we'll the extend so we will behavior customer impacted into be actions. second more that beyond out see Obviously, much the how of how the not macro Some QX. the by the obviously plays may The extend year. we

So, there revenue have that you on side. the service

equipment down. other the a will within down significant revenue be for XX% seeing also We you revenue mentioned, X% as parts obviously were of in But As media, we're about I but think quarter reduction. first March.

seeing So, into those here was COVID quarter basically in all the reductions of increase. period. the the And second quarter then sharp-turned the gone we're year-over-year we've first in decline as contained

too. industry quarterly lot XX% billion a reduction $X.X So, of of a to is that's obviously revenue, number material the of XX% forecast

benefits So, guide. reflected overall you going that impact revenue see but come expense side, obviously on some the those impacts profitability quarter our in in are we and the have through to the

half sense we're of play to a next of of course year, next obviously, In days. to really year soon our the view back of But update the terms too the call. back then out lot the over looks things we'll tell. half when of mean the there's better I that we the much We'll a XX optimistic. have of like. the that get what And on here

-- the services with customers. significantly years. don't to business now. on quarters come obviously What strength. this performance important in that's we've that in situation do we and in come a are a sheet we We What come we the balance into know. good that with had And past few over worked products position know very we number a in of We've of what over is we

position situation shock out of of this It end that you absorber will, we keep on other the a a gives of strength. come ourselves operating for to business our us if little can a and position bit so

second seeing quarter the of look So, ago the that's Brett. we're year and forward as the how to here we of rest kind

Brett Feldman

you. Thank

Brady Connor

for the next Thanks Brett. ready we're Brad, Hey question.

Operator

Thank you. The next Hodulik question of UBS. from comes John

go may You ahead.

John Hodulik

follow-up color of that different sort you that Great. and what Brett's And potentially impact XXX basis that And you these ARPU being you going to decline as some gave see? to April of the impact in Matt a side, on expect maybe expect maybe of any Maybe how revenue that sub-impact sense detail the X% great can big us question XXX on components affected? service pieces? mean, then, ARPU you on add in I the sort these to terms that maybe here. to to points. But could X% gross more just what's are are give in play a how out for total see from that on the you're expecting? all

guys topic did policy not start side. new here then think Fios the the Thanks. shows on go the that I consumers' what entering adds Internet homes? that then, you we new are look it maybe When for negative? trends And saw of you I as a And -- do video net definitely quarter? you you into to And do slowing, see but second expect -- out

Matt Ellis

Yes. Thanks, John.

whatnot. up base that on about When the be international think you got there the overages, then additional things or roaming, the late service So following whether got the go whether it be ARPU, it revenue. whether billing in fees and be you've you've that

is should continue. other with in and We're or core strong as I about billings a we around whether will really that within our say we parts business. it edges obviously the seeing the what expect very some overages So services, I good -- a and on fashion pressure see see But where of the use feel whatnot. those products bill, be we roaming to customers

that that you'll on have in comes that top the of from in. service of the line. suspends plays of We'll revenue how see items majority bill vast SMB X% X% we the then side. that impact that, the And are to So on those much

the see So is a level. we overall, low position in as ARPU great go the most an are of through quarter. the impact at a we looking in subs mentioned will churn -- there But as we

in type And like their very You're range time you consumers reflects into low a I think it go of connection of it. activity obviously fact with that's has Obviously, X.X the increased right quality the the it now Consumer. across where looking at seen this network value to we've been. compared as a about all

service over the provide engineers around Hans to homes that's second So Fios go quarter you'll all, all And of see doing the and as in impacts the the we consumers' some going revenue here. we're in it comments majority whatnot. turn where I'll what into and into and with

Hans Vestberg

down new safety sort of why that. Thank XX% stores And visiting of to to the you, have almost one been And time early say safe and that's course of our were for close very -- me let and and balancing John, we of we and thing hours that health all all is employees. Matt. on our go actually

to we start very safe on into restricted the our the box, see are homes customer with of installing here, the of or Fios and we The engineers which have can what is actually the weeks going same And we that were field done last the homes. innovation. here, us in for they we visited consumer in seen a we've innovated on And themselves. without also the very have call in couple the beginning so the is Fios But we where installing with lot important healthy. both

the time, That be installation. weeks to As two, do and have as virtual employees levels that start in where do can ramping the normal over almost how the now we be been a customer with well installation, our right a that well we guided back but innovation now of we and for we have also I'm as and And agent up. safe to three customers. healthy our on confident can able of

safety from again, beginning And stakeholders priorities you need the importance have really And that I a important. and to the the employees. our and health our for balancing, very see coming that think has this different the all back on you right. crisis balance to That's priority just in been like the

our we quality needing that as has. Because of our these highest course is are the up staying always and staying our Second the of of know networks and Verizon times. our infrastructure network importance in is see technology having country to because the that up

doing very we something new totally it. day managing think as well. a we're way can So we the managing but and go and is are here of is I piling innovation it And every up back now that normal, in to that said,

team. my for grateful I'm So

John Hodulik

guys. Thanks Great.

Brady Connor

next Thanks, for John. we're ready Brad, Hey, Yeah. the question.

Operator

question next The comes Phil Cusick of you. from Thank JPMorgan.

may ahead. You go

Phil Cusick

revenue And quickly. in there you don't We like is sounds Hey, can Verizon negative versus really that for look growth margins versus guys. revenue quarter or you. then Media growth second, the also, this please the of on do can when headwind to your down quantify second stay flexibility know and this revenue much What And confirm flip X% down business to the year-over-year? can XQ, rather the first prior comes the Thank cost about more positive X% in XX% the one business? in Thanks. clarify To what just time to regular in sort like rate? what year-over-year quarter. margins XX% you was than expectation whether service

Matt Ellis

Yes. Thanks, Phil.

what There going So you'll on as there. been. impacts than a year-over-year X% you be the you A reduction think X% is look quarter. to really would is X% rates in about and the revenue to is the revenue there, first on small have in was the a X% lower to they at the service service growth see in basis otherwise impact

revenue have some XX at across had X.X% XX the impact we would basis growth, end the the If to of consumer so back service both March. the saw that points in without upside you think of

But we're service we where revenue position in -- the like the of is. trajectory

in business you as the the quarter core come is to we the And consumer of the XQ rest up the of in go show both strong. service revenues As business see underlying into you expect very that performance wireless into our here, year. throughout and

Hans Vestberg

innovative the Media advertising. pay we going encouraged impact course, all on. increased extremely time later a of And reported, that's ways have this the pandemic. weeks been ultimately of growth lately our engagement about with has about Matt here of team and to think activity last in couple our Verizon products of first Verizon because that Something I delivering that new of the new Group, off and services of on seen Media an We're as of course the

Media how say Group to have of Group. different in scenarios develop my this lot I have with I how will pandemic hit Verizon Verizon and Media to confidence work it that will given a

cautious ways Verizon cost reduce seen find six pandemic. quarters restrictive, to are the ways you We the our course advertising need last that have to XX both innovate. you're months direct I know don't understand given has to Media these we and of all-in-all, But days Group found that new or

that the where we with goes moment think and different in I going. different form this I that That at is scenarios activities also the working for course our are all that the but can levers of they beginning, are in and which again different and as whole said But do can given happen we we have different shape businesses, goes it corporation. for

work business, on just a we different meet which in Matt the I about that Mobile worked or adding our scenarios, way embarked brand, in the service. wireless as our model, then can thing network with since from have & Yahoo actually built track said doing And constantly what Visible, ago, we the think years a the Match, that one Mix some all phone, the on unlimited we're two the all

others that do to regardless serve well need. the market think we that in few opportunities where it customers our as actually can with as they And will will that I think plans this we I that network. the go, have have best

but those we're our that think all I different world customers. So in of well-positioned we uncertain, type might have the be to serve opportunities

Matt Ellis

we've cost service that there the things side through manage where we're revenue real few just to and us take business cost years the actions doing impact. impact can media the the time. this been obviously period. the as last of But And it's on position a quick now to in and building side the put the the for we that it's revenue doing on And this in we comes, go work obviously, we need really

as unusual employees through investing go long do the We'll this. see our to to even allows this some keep the cost business benefits time period. as haul customers us and also in to for the we things But in and we're support it

period much through as well. So cost mindset time go as our this controls are we very on

Phil Cusick

EPS quarter. probably If lot cuts sense would through weaker that But a impact you guiding the I I I can that year. earnings make Is it the in think for just clarify as second fair? that well the said of for you're on the think Brett's question,

Matt Ellis

Most in guide of the the that impact second quarter. we impact the discussed in the is

As obviously, year, we look there's of a outcomes potential second of the to range wide very the there. half

see to we'll and longer the about -- impacts half And we'll about So plays second commentary stay say now, of had of when But those in the lot when second XQ. out. will relates period. the have more the it. us earning updates a lot wait a you the of have the time the guide a days next the lot this we we'll XX we obviously will year. about of call that how of visibility see year from we're see for more But think to for we into with in better what international revenue a some half and talk roaming we'll But example on

Phil Cusick

Thanks guys.

Brady Connor

Brad, Yeah. the ready question. for we're Thanks, Phil. Hey, next

Operator

David Thank next you. of is Bank question from The Barden America. of

go You ahead. may

David Barden

effect COVID taking mobile I the color I thanks slide two at wireline of consumer guys, if that Could of kind the enterprise for guess similar us you environment you give questions. us and XX could, the the Hey, the on some business. SMB where give first, looking side? on just

go-to-market stage? the exercise? little that was return capabilities. on Could the tech investment there the trying And terms in investment the a far group Thanks. current services at in be modernize accomplished second, to thus on obviously, expectations might for what business a and elaborate your And what's last the bit in environment been then big that quarter in of you this

Matt Ellis

That's reflection impact bit little we current quarter, came product. let's Starting wireline And Yeah. Fios, this. base a of in of In that. good largely our Internet obviously Fios lot low Dave. churn that of the saw was in Internet the unpack customer the talked about -- We volumes from into the but on those. Thanks, off with as quality the on a we first a environment. appreciation

on the adds where have side As the obviously from impact quarter, you not customers' employees we're churn you're continue the really mentioned gross to to see to the into some we'll that but homes. side, allowing actions employee the benefit go Hans on second going enter

really see talked So What's how -- to about a do good what box react us we is the you this? from in right. FiOS Hans say okay,

yes do doing. way. stop there's completely an we're our Let's what not environment we this let How obstacle -- in

Let's find on is team a around phenomenal it. way This that. doing

we have gross some might going here have expected we the quarter in that when stopped first So, will not we homes. into customers' adds

customers we've of across look parts get having other employees from the able the things home especially you to been you networks their to as that the in wireline, usage quickly of their of adapt very number we've across as larger where enterprise change is into As an doing obviously, handle and to large update our be SMB, and -- traffic systems network work the and a core work seen uptick to performed. and help a in having larger businesses their number to

the it we But that. continuation massively across quarter seen won't of So, about second here. change trends expect I -- would trends see we've the wireline to ongoing revenue as think that business a

to the the we fourth quarter But group. the came decent you as isn't enter of one a of of what group, so our first terms be in businesses January, that investment do think the of margin in In this I investment we and for the margins revolution. VBG capabilities upgrade number I to in for that in the choice need in said with Business quarter we that a can that There's industrial the as a we there, back on call see business. things partner in

while side last And I impacts there. We revenue should benefits on full I'll that towards I'll the the you And a in getting end quite and And activity lot so that come year. of this cost to -- to on really there. the what for follow-up let see going with side lot steam the in there's on on that. here. of Hans, the then, 'XX good a 'XX, on so in we'll be the investing start said And stick impact call a the

Hans Vestberg

not of Tami all you is team Yes That I and has right, slowed Group. are you're on of of and several the and clear very down. wireline -- Matt. we we to want clear Business doing the just brought go-to-markets. Verizon strategy different remind the has wireless This absolutely groups this strategy on the together transformation.

about, of one that because, coming I Group come of as see even talked forward industry. areas that which Intelligent we going Matt this course opportunity when XG a We a we more then build is Business into and see with we importance great and COVID-XX, mean Verizon have and continue we all we Edge of with Network this the in of this has in been COVID-XX. that Verizon the a digitalization accentuated me trends as the

have one of fast invest back what is So, this portfolio we transformation. said will not a holding as quarter on here. we was I doing feel good but couple in about with our transformation, distributor. transformation. a The one we're the thing, had investment as which But quarters that BlueJeans, we for not course And can as they is this and Matt running said, we're as the of the team in

But enormous we have have opportunity at we a them. of that the also But Verizon as the will low edge, transcoding Group. make important. XG out, great where a and a actually XG. And great was Because opportunity the will good it see that as for latency and throughput to It's product. we the go-to-market in stitch this it a felt acquisition lot I be our into turned Business we video ultimately been testing

also adding that asset for important future. the So, is

performed. and in we're when we good even be back feel and put us to some have work how again that have done once we And that on transformation done. about they stronger holding will strategy our So, more position as Group Business Verizon in they're not

David Barden

Thanks guys.

Hans Vestberg

Brad, the next Hey Dave. we’re Thanks, question. ready for

Operator

Stanley. Simon of comes question next from The Morgan Flannery

You ahead. may go

Simon Flannery

helpful. talk for wonder lot you I a that channels. I'm the a it's Business. COVID-XX. versus us help the Consumer Matt that if in morning. then, you wireless could where bad the color across the about is guessing all more understand break the on does of a little into on And Good little Hans, bit debt, Thanks digital get SMB. wireline? How could Very

maybe pushing you online talked box. more How FiOS do what And You a you about thinking Where through that a to and phone sales the you can wireless are percentage? sales in Thanks. about of lot channel? are the today? increase

Matt Ellis

Thanks Simon.

is because So, side SMB. the on the in the the of just that the at size sitting debt of in of Consumer we look relative vast difference the and businesses majority between as bad it Consumer

the accounting to us As we forward this reserve take look did losses. more debt we're under CECL operating It new requires standards. bad at year, the expected now a

vast how we around majority for starting And took we as customers debt how did, requirements closely as a bases. pledge to mid-April, But the we monitor so reserve. and we tell go the early some pledge. availed in and have some XXX,XXX of as of signed really exactly point I other of who provided what the -- forward. up We'll can those used have themselves of at too out. bad many mobile play the have The the various of We that that it's that we here for looked the know around ordered. are you will state customers

certainly on we're And seeing consumer weeks. side over another But different Actually couple encouraged the customer as our for what last patterns saw talked consumers we bill seeing priorities financial in list that payment proof different across high continue phone of parts of up we're base. here crisis by to about of put point the their payments. the their as that past we've in the

is within stay very to our this keep monitoring And out. the but work customers our at payment and going in side, close to Business overly that SMB, obviously point Nothing patterns to relationship wherever to the with play pessimistic we're how on going closely certainly especially we're that's possible.

So hopefully debt. gives at let you Hans on answer that background a digital channels see how forward. little going And I'll look how the we question we on bad the

Hans Vestberg

basically a running So let We're right now. the three-pronged we're company running the me strategy. how just out company in lay

is where with all employees, for dealing for course, society and of our the the our management, the is The with team pandemic a first that at challenges prong have we crisis customers for large.

have leadership as usual. I my Secondly, majority of business the team, running

went all new our this through have all cases the XG running We all deployment, as the early we the where compute, week governance normal. XG business mobile edge just

about to be team, also the and omnichannel we pandemic? believe a I then normal. And I have one And of more going when the see going we new is from happen think which question to What for ready this digital it. the normal we're are customers will new we is which sort our on come think, much out of

another work see – we of that to environment see to type pivot We're that we already probably forward. to to it. product different need probably think We're have environment put going going to a We need also about.

missing see at to have time. well the at working managing same today stronger not even So as to as up three these managing as up, this come I target prongs our put the try same time well in for the crisis we all and from us order that as crisis,

see can you only much usage feelings We're same to of going have I digital more ordering. I the of So have. confirm

People Telehealth and will going We're to see But people things were education growing don't we're go they actually going increase we see to it's that education hospital. I working. need because now also that see over possible. still to never mean – to are time. remote thought

our our groups. be that all important – in where All delivery new that's going extremely are customer assets to normal, to we

you three crisis. we to on them this need So of even and on come are work of all three them to stronger working all out

Simon Flannery

Great. Thank you.

Hans Vestberg

ready Yes, next question. we Hey, thanks, Brad, for the Simon. are

Operator

Craig The Thank you. from next question of Moffett MoffettNathanson. comes

ahead. You may go

Craig Moffett

Yes, in context a the hi. COVID question slightly I just of if longer-term ask I wonder the crisis. could

necessarily in stadiums on – I which wave millimeter have you, have what and in in mean, gathering of investments Your places, people been urban where largely obviously XG the been have largely today. aren't and airports which spectrum is back and wireless been almost have arenas dense which like

coverage a just that around there along usage? change suggest may and patterns investment urban sort lines be for how different network short-term stop a you that given that say the long more less be blip set Or in are to is Do planning of real social likely dense priorities windows and are a of of densification? the

I ask even could where more potential now a those that of dense spectrum becomes mid-band a places. well very gathering context pivot spectrum away strategy, from this urban in it given the be important

Hans Vestberg

the movement they be lot of seen see are areas. urban what It's see At Craig. of of people dense confident areas. I feel because social of patterns a that It's moment, still the all time. still home. staying in urban to urban dense you, we be less first we just continue usage Thank to that the will areas be dense pretty for will

they where live people live So today.

strategy well how are we execute in our city both So And very deployment. as we the not offering going see ultimately, we nationwide, on a future. as on being the the changing compelling broader that

more plan software want on On you we to want mind also part C-band, good that the XG. to to coverage. we standard think in for But have headrooms return the we And it densifications, continue different a putting a by as before, said the spectrum, encouraged be between on have especially it's spectrum the course, order we all global of And are attractive always the to C-band our best And we first as mid-band, in is always that. conduct said, I an of to is and because buying that roaming investment December. of network. the have network will as in we do same a auction in keeping normal FCC's

where little the yes to early So have to be we're same. that's in. United to it continue States. don't Initially, they think say in People and pattern social bit so. going the going live a total too that plays live I It's changed a to

Craig Moffett

the uplink the and you L-band specifically And concept about, comment of Ligado spectrum? can availability now

Hans Vestberg

on Yes some are that it. I come We feel L-band. has what can, course challenges or following We with still out. FCC are of at views least having several

is not frequency not all -- used in anywhere of it's that first world. the used, As

we're equipment, This it. nothing and there so which of looking have done an are that for is all no course things we like means And seven years. you all, ecosystem. That's important. into need with But new. and handsets as That spectrum, no the that frequencies it

has XX for Ligado been that think years. I about around

nothing So it's new.

if continuing have looking more So headwind a that can we always far we new so seen else band. But something into -- are are on development engineers bit happen. our little than anything

Craig Moffett

you. Thank

Hans Vestberg

ready Yeah. for next Hey we're Thanks, the question. Craig. Brad,

Operator

from question you. next Cowen. of Thank The Colby Synesael comes

open. is line Your

Colby Synesael

Great, I may. two if

if give as wireless bills, their of bills that the paying us guess was First their specifically customers off COVID-XX? I can a result number have I wondering, you of stopped

included think to disconnect? And Simon's mentioned, was your, You'd number I in that I XXX,XXX that response assume in question.

trying Just that into understand to where play? number comes

I the to And of payout, some dividend how think terms you Thank as wondering dividend. to, in give cash flow relates was can XXXX? just expected if potential and free us in then it secondly about you. the framework

Hans Vestberg

if You unmute. you can start,

Matt Ellis

about really Colby. Sorry it's that. Hans Thanks helpful.

customers So to customers the are by ability referred has to who COVID. their who number of prior number in have the told their the of pay question impacted was us been bills

That's disconnected. haven't not been been disconnected. They say they've to

that work doesn't other that up of with And time completely the majority a relationship vast us. with their end those we customer continue on on we Just they schedule them. them and payment like pay back every getting

provided us They indicating even stopped have haven't necessarily they've that just they of -- doesn't completely have that, seen who So, that to mean an and themselves those are impact. paying. we --

reported compare it we've than seen. total payment the of impact the look what terms by be you customer better on at overall or side seeing the performance whether profile when the a in But it loan auto numbers seen, the we're mortgage I of to we've some -- side when

very And for they best value They customers what I a they have important the the we network consistent up we that's and get and show payment. value financial in XXXX with well. we connection the mean the crisis see in those, saw our in it. product as from

So comments some second Hans, wanted around you cash I think, free flow? to question make the on

Hans Vestberg

Yeah.

the first about sheet couple think great stand quarter. I last has we also and years in the but team the we on talked all, not of First the with the sheet work only balance the balance where of done

sheet. BlueJeans. with quarter both can well And as that we we feel that be good our position in the as CapEx made this And our very balance of that we're a acquisition seen increased

clear priorities capital our allocation very us. have We for

to reduction position continue is number the the Number to good one in debt Number And put with is business. four our is Board the serve shareholders situation we're feel Three that two and a the the in shareholders. we really our to right buyback. dividend. is

the comes on this to given very definitely but a said priorities we to this good situation, moment. probably other at when happening unlikely it in Day, as But the Investor that's serve position all year buybacks we are

Colby Synesael

Okay, thank you.

Hans Vestberg

Thanks, Colby. the Hey next for we're question. ready Brad,

Operator

The from Michael next with question Citigroup. comes Rollins

open. is line Your

Michael Rollins

Thanks and good morning.

the the you quantify Just variability lot of was expenses potential detail of approximate if provide overall some help wireless you sales? gross details to to follow-ups, revenue. could curious on a adds of on couple additional first or gave a I variability impacts or device the to of

Verizon's use basis of then interest And temporary spectrum, you. commercial a increase future? the secondly, holder's the to in does spectrum other Thank license on or rent lease

Matt Ellis

Thanks Mike.

the expenses. on I'll variability question of first the answer So

that you handset through the lot expenses we But necessarily a costs close think move. it have lower volumes, obviously immediate in and you the obviously of see term So as about other immediately. don't as lower

Even promo the lot of talked life. XXX costs the for a over expected before, expense about under, example promo now as we we've amortize

So over versus you see that come cost. years across typically X.X an immediate

period of time statement. income that a a in lower gets amortized we reduction, promo also benefit expenses if get So over the

to through going see there. you're flow So that

margin from lower impact a an in good see where store volumes, you where those areas have sales have and we we Other see lower volumes, especially typically accessory on.

the impact so, there sales, in there an on of terms seeing expenses, line can is as revenue lower with impacts that. there are And lower not but well that just come from

do going in in get are volumes, go other you with that in immediately cost there's the of there. and net-net, things but expense direction other reduction the over some some realized than see time, a and lower So to benefits rather

around So, hopefully, shows in helps that think the income up how you that statement.

advantage follow took the of. the question we spectrum add you on -- let that I'll on Hans, up

Hans Vestberg

Yes.

the the usage come how all because to all, so out be First will players market, in the and want thank FCC rapidly spectrum out knew the on nobody for of network. to we the lending

lent temporary FCC, headroom we As that you can very we when performed has see, the and we same from network spectrum the have exclude the well.

that On I top opportunity the are adding to on Ronan on in of nationwide. turn which We're decide when well. put course, also tests the going of in report hands very spectrum sharing, are, putting DSS, the plan of dynamic the that and Tami capacity for that, want they now right we can and to

have we're So, spectrum with happy to good and continue I and and that. with with think, it strategy spectrum we we're a very very we the going have

we right where that's I think, So, now. are

Michael Rollins

Thank you.

Hans Vestberg

Mike. Brad, last we Hey, Yeah. one Thanks question, for have time please.

Operator

you. Thank

Wells question Fargo. of from last Your comes Fritzsche Jennifer

go may You ahead.

Jennifer Fritzsche

question. Great. Thank you the wanted Hans, DSS for just to your taking I follow-up comments. on

from So DSS following very my year-end with saying that? mid-February by by change seemed in if Day, DSS. you I go to any back were notes with -- Is to year-end firm the Analyst it like there XG

Kyle cells for five shifts, the this patterns, about on just the small the amount about any talked there? Has And also times or Thank you. year. macro the shifted in of infrastructure changes back social XG then, it, the behind of -- you given talked

Hans Vestberg

you, Thank Jennifer.

spectrum First of the we feel sharing. all, good dynamic about

the test put is team it today. in Kyle the of in needed his We hands That's will that equipment certain field continue half. we the on that. in are second when and and and that deploying Tami where and to turn doing the for I'm it decide and are hardware Ronan the do they

So supply that we're to issues issues. any doing supply not have or -- chain

year. this ready The station times five base same for more go -- the XG

when actually of that accelerate. publicly Kyle we we were can on say to said ended continue still Xx. plan the we're And today, just I March. on that We ahead plan

We no chain have supply issues.

municipalities, -- have, is that We things of et complications team thought approval, working and finding digital all municipalities, with new but with we some our never processes, thought never permitting that way, were digital course, which possible. around cetera, we were

giving those up on targets. are So, we not all-in-all,

good. that will really this, normal the very the how where like. And it focused so about are day that's And and our feel is should doing thing that's how good far new doing managing crisis, times that. and my And And good team look right that, will we it seeing is strategy a we be looks on stands. every new company now what the execute like a in it rethink

Jennifer Fritzsche

you. Thank

Brady Connor

Yes. you And Hans thanks be and And the we'll that, with stay safe Jennifer call. team. make sure And and well. conclude and everybody,

Operator

call you Services. using participation for this the for Verizon today. for does your Conference conclude gentlemen, Thank and and conference Ladies

may now You disconnect.

Verizon Communications (VZ) 24 Apr 202020 Q1 Earnings call transcript