VZ - Earnings call transcript Q2 2024 | Verizon Communications Inc.

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Operator

Good morning, and welcome to the Verizon Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Today's conference is being recorded.

If you have any objections, you may disconnect at this time. It is now my pleasure to turn the call over to your host, Mr. Brady Connor, Senior Vice President, Investor Relations.

Brady Connor

Thanks, Brad. welcome second and call. earnings everyone, morning, to quarter our conference Good Chief Skiadas. Brady by Vestberg; Officer, our joined and as Officer, Chairman as I'm I'm Executive our Connor, and Chief well Financial Tony Hans

our may Before affect we to presentation. Slide that statement, and like which expected begin, forward-looking Information on that in Discussions can subject of Verizon's found risks in of contains financial to safe statements are future attention be our about draw Investor which SEC, uncertainties. results X harbor are Relations and your future I'd filings website. results to the and on this presentation the contained is factors with available events

measures in most are this of This Investor GAAP quarter website, measures financial to the morning, comparable our Relations presentation our detailed certain these a the we financial contains directly website. included non-GAAP posted measures. materials results. review on Reconciliations to Earlier second posted non-GAAP our of

You'll find earnings our additional on the details in website. materials

With over that, Hans. call to the turn I'll

Hans Vestberg

you, to Quarter welcome Call. Earnings Verizon's Good Brady. XXXX morning, Second Thank and

marks quarter beginning This next of chapter. the Verizon's

our have and to vision We comprehensive that embodies refresh far bringing the future of our the a for new customers' transformation This choice, brand beyond value lives, our control logo. and to goes reflecting launched commitment evolution connectivity.

EBITDA The We improvements. showing refreshed adjusted our increased flow, of and pillars X results. performance: sequential to our our service both strategy strong brand year-over-year remains growth; expansion; as free deliver and wireless revenue continues solid, cash

last X.X% increased climbed rise saw second year-over-year, quarter, revenue and X% year. adjusted cash by we the free In flow X.X% compared to service EBITDA wireless

financial track our build momentum, first results quarter paving growth. for keep our XXXX us are to on Our and way sustained the improving a operations and meet guidance on

relationships perfectly return the resonates to capital. customer deeply on that and strengthen innovation These while align grow initiatives delivering personalized best the the from most customers, with our comes progress core with offerings in including industry. Our strategy, invested

myPlan of launched now in these and home and delighted Internet XXXX that to our to and adoption That our on you over just we're it subscribers XX% customers. using our incredible and it. strengths myHome. In building year, expanding successes We're and features an continue. We are rate, can bringing over expect a with is

we businesses, our end-to-end selecting driving industry's For from We strong our management extensive the everything upgrades are initiatives, Verizon industry our with Business and first with These to leadership phone launched and position Complete, service only the network cover XX-hour equipment performance reinforcing forward. of smartphone replacement. combined distribution same-day system.

quarter. and Turning We operational performance to the second across had network. broadband a strong our mobility,

Total improving in adds amazing. Our and positive quarter sequentially. after And in phone have consumer is early our up adds been year. phone last continues. XX% net Consumer a are expect improvement of mobility year-over-year, we the year, postpaid execution which postpaid overall is XXX,XXX phone quarter and adds for gross to has since net consumer big momentum postpaid year-over-year

options more new to and of core customers Premium our we top constantly of the Peacock YouTube the value. only subscriptions, our which provider services. These customers content and compelling offering partnerships give makes are the And savings at on streaming is example that Choice addition working of customers our us reasons XX with give us. shop on partnerships our One is approach. our

small, are adds This Business first how XXX,XXX. businesses. quarter a postpaid phone net at is very from large Verizon we quarter and had to in a important and the sharp improvement also midsized strong shows We for

Our range them Business invest continue widest customers offer choices. in mobility, the to and we of

Wireless Total and do discipline net and seeing the in excluding relaunched add We applying as our credits market, rigor we're with Verizon market, postpaid significant SafeLink. features. enhanced value other as improvements, offerings and recently consumer the price the guarantees, customer-centric and Total upgrade we In same are by

wireless quarter. quarter. still second we're a with in access adds with net first share broadband, net the XXX,XXX In taking key remains than the higher driver debt Fixed in a

to with broadband more quarter base, grow million broadband subscribers. the XX.X our continue than ending We

customers management, We're the agencies. to business Department continuing We're new a Navy were together. the our wireless that of also add on previous devices provide we from proud contract like and large government awarded from work very U.S. to device building

agencies For across them delivers everything and and management advanced network States, more serving public XX,XXX solution mission-critical first connectivity frontline with the from digital Verizon responders, device to than United to transformation. safety

natural Verizon to disaster from front protecting response. is need the when most us lines there people

that In of FCC by one the of the could committed in areas. so our affected not the Beryl. we're I Hurricane and network rural overall, peers we're prouder to outperformed our It's reasons that. shows on data fact, superiority. And continuing network C-band suburban expand recent in areas be

of reach. better outperformed year higher and add have half from Our premium with gross growth, up That C-band lower will grow our Ultra Wideband, running initial traffic we XX% continue now network as C-band markets on nearly uptake number churn. We a expand ago. of services to

network coast also satellite-to-device XXX This will spectrum. the AST to by We're we communities megahertz as our unserved bring our with XXX% coverage to using enhance coverage partnering connectivity to working coast. target network from provide SpaceMobile to

fiber capacity for the and support the economy us of our Our mobile of space. to of portfolio in the backbone and players as and AI ability the of the make edge high-performance partner compute spectrum, deploy our choice

we best the network's AI us AI our power apart processing customers. This bandwidth. closer shines, opening AI and simply ultra-low capabilities our where requires enable feasible fiber application with weren't for that security, latency the high possibilities up and What is services is real-time By edge network sets computing our deep before. footprint. that mobile to will source, We data

our benefits We're already the seeing of AI in operations.

National calls XXX the our to awarded use best performance performance. network video the Network We also help. including won than This call Wireless points for and win spare performance agents we customer more awards, is Verizon power that and to them performance. these the frustration. takes today, an It national streaming example, For And for us. customers' Overall per suited us customers to of our and and to superior network kind state most RootMetrics from best accessibility, AI support deserve expect analyze metric route data outright wins to save outright time applications. data

I'm is. pleased say always team our to performance on how do, I executing more strategy. and with is first always half work well year our there our there's

have performing and XXXX. We into extremely adds into taking in growth the share are broadband. business seeing the a and in second great postpaid momentum in year We're phone consumer, improving heading way in of well disciplined, built half balanced and achieving net

the deeper a our into hand Now over to call performance. I for Tony will dive

Anthony Skiadas

Hans, and Thanks, good morning.

generate free Our sequential growth as results add cash revenue reflected improvements These service accelerated led by fixed wireless SafeLink. business and flow. in net strong prepaid second driven wireless were which quarter strong adjusted EBITDA and execution postpaid access to continue in phones, to in operational consumer we results both and excluding

adds Within million Consumer, XX% sixth postpaid a marks were gross quarter, the year-over-year year-over-year the This approximately second X.X consecutive increase. in growth. with phone quarter

X% consumer Excluding postpaid our second number phone gross year-over-year. adds offering, grew

we was churn the expected well quarter, X.XX% over in with churn expectations are prior that $X recently generate phone as flat expect churn implemented in line now period. slightly is slightly the from be up full we in year. price billion We believe postpaid last to second several was to better postpaid phone year consumer revenue. behind wireless This our the continue increases us, the Consumer year to than annualized service majority pricing or and of

sequentially improvement for which Consumer X,XXX both significant postpaid marks a quarter, phone second net and the losses were year-over-year.

contribution For the full deliver we postpaid offering. our without number expect the consumer positive net year, from adds to second phone

Moving to prepaid.

our related losses XXX,XXX, to We continue make program. vast the navigating XXX,XXX losses brands brand. to of core ACP the ACP of majority progress are shutdown, while the prepaid including Overall our with SafeLink which in net were the conclusion

the were SafeLink, improvement a year net Excluding to losses prepaid period. prior substantial XX,XXX, compared

continued and in positioning perform second a exited well, while in and setting good stage Straight Talk the half prepaid, momentum performance to well Total of us our Wireless execution with improve. XXXX. We the continues operational and stronger XXXX quarter with Visible for to for the expand

On the across as improvement in as and quarters. small adds public adds a well customers. in strong saw last and in phone the We best were second performance businesses net enterprise Business phone net XXX,XXX sector sequential quarter, side, medium postpaid the the X

Turning to broadband.

with Our quarter in million broadband up total wireless access, eighth XX% on base broadband net up building adds. business. additions year-over-year. quarter, brings the our fixed nearly In were the subscribers, over were X.X XXX,XXX XXX,XXX consecutive XXX,XXX for a sustainable quarter, net sequentially. Total the to adds continue representing focus above fixed wireless This long-term net we

Business reliability for in continued is to fixed reliable strengthening a net Consumer for adds, sequential a of XX,XXX quarterly softer speed the XXX,XXX, execution and quarter. seasonally Verizon continue record. a adds trust healthy fixed and Demand XXX,XXX service as businesses increase see ease with wireless small even broadband wireless demand as we strong the continue product of enterprises and deployment. net access this to were

XX,XXX Internet quarter. the Fios adds Overall net totaled for

XX% continuous with subscribers, shutdown a We ago. lower with growth of even from Fios move the of a the and XX.X are effects broadband pleased over increase quarter year million ACP ended We the activity. the with

market broadband Our execution. of significantly experience outpace to given and growth superior our the broader continues that network strong

increase down second X.X% wireless financial financials. as quarter quarter on full for $XX.X grew which track upgrades revenue declines to Moving a equipment year-over-year, revenue by and offset year-over-year. total guidance. was revenue, X.X% meet solid were remain service by year-over-year. partially That delivered XX% driven and growth year to the another the our billion, totaled We nearly Consolidated other in

increase increase $XX.X grew to consumer revenue, or sequential service totaled revenue primarily of growth billion. wireless by driven $XXX service million billion, Wireless of The million. more $XXX year-over-year year-over-year X.X% a $XX.X X.X% which than was and

Consumer postpaid actions pricing fixed ARPA growth. of grew the reflecting and wireless benefits X% year-over-year,

helps through and myPlan growth mix drive addition, perk In premium adoption revenue. ARPA

have consumer over said, our expect of XX% lines meaningfully forward. Hans expand going now and this we As myPlan to on phone

which scale billion generate than $XXX expected year revenue this prospects revenue, in XXXX, in revenue $X service was million growth. is for prior period. is included at our the Launched healthy with more versus the than FWA in year FWA up for million quarter, $XXX wireless to more continued business

range the declined Prepaid prior ACP the quarter shutdown revenue approximately and $XXX basis the margin provided revenue growth wireless within points last for was service the quarter, from headwind to versus the period. insignificant. year impact million XX we was The

into ACP momentum positioned are of majority year and for heading the of the brand, prepaid disconnects remainder growing the behind the us core now in With our we XXXX. better and

Consolidated leverage and adjusted the second improved The EBITDA reflects increase our operating of X.X% year-over-year. $XX.X lower disciplined totaled quarter approach the to growth. for an upgrade billion, activity

cost voluntary operating efficiency, June. program announced our measures improve progress efficiency making a our We and in are including to program in ongoing new introduced recently separation

year prior higher the Adjusted Growth EBITDA predominantly EPS to below-the-line capitalized period. in spectrum the X% was due items, $X.XX, down service. by interest more including C-band we offset in interest quarter as expense, into lower adjusted compared was put to

Cash from in due prior of first capitalized totaled cash the billion $XX approximately for of the taxes primarily half higher year driven bonus reflect interest. activities predominantly $X.X the billion, depreciation operating the as year results period. expense interest of The in $XX.X well compared by billion higher decrease flow unwind to to as the

Capital historical network C-band spending $X.X returned schedule on intensity. of our levels than we of for The totaled to less ahead was half first sites. nearly period deployed $X XX% last planned the same remains capital This of with year the billion. as billion the of build year have

at guidance a billion year unchanged of for remains $XX.X full to CapEx Our range spending billion. $XX

capital million The prior year and is represents for cash period X% of increase from This expense. net the $X.X half free taxes cash of and flow billion despite cash $XXX from an higher nearly of XXXX. spending of the or approximately operations flow result interest first

the strong We unsecured expect will the billion billion, to debt. Net an generate was improvement of billion support that the lower $XXX.X the year-over-year. in half at the paying back quarter compared $X.X $X.X end cash to previous year quarter of down of flow debt and

debt was X.Xx, to last a from Our consolidated ratio improvement X.Xx EBITDA net quarter. an adjusted unsecured

second us to particular, put we a the execute track results half priorities. the The In on of momentum to business remain sheet balance on in our our our leverage allocation year. strength great in on of the capital further reduce in and position our

operating results. XXXX, translating midpoint, execution is In and summary, strong the with reaching into its team's momentum

growth We wireless add in reflected to share the and mobility broadband continue and Fios. have through take momentum in gross good as fixed strong by access

with confidence this accomplishing balancing growth are to the approach, and guidance. we on Importantly, a providing deliver XXXX our disciplined financial profitability,

the I your questions. remarks will his With turn to that, Hans it back for before final call to opening

Hans Vestberg

Tony. you, Thank

in business growth we X strong half continue clear, to networks to subscribers, second driving year the EBITDA cash mobility for of as flow. focus the evolving wireless remains the scale generate broadband access million with service growth. strategy We're along revenue, X approach wider fixed and our drive adjusted Our while we'll million the to expand private and free

expansion will supporting across opportunities these enhancing new C-band opening ongoing be Our in and efforts, our crucial markets. performance network

Our ability excellence success commitment needs. operational to and remains to customer our a firm. differentiated refresh and customer our of experience myPlan of are evolving proof brand meet The

build We we work these value in quarters our to successes on the all stakeholders. ahead as to of will deliver

our We capital debt. will and continue to paying allocation investing business, execute in down dividend on supporting our by priorities the

As benefit Verizon from and it. industry, to to AI enable continues is our reshape positioned well

and will edge and secure reliable, Our of powerful compute AI network mobile at the applications. forefront be

how cloud been and play. empower This services are at never live, exciting work higher. time value Mobility, We and essential broadband us their and has is people and power an for Verizon.

and We more much great come. to so are in business there's a

right the excited have place what ahead and in for year assets of I'm success strategy lies ever than beyond. We and about the us. this more

Now ready Brady, we take to questions. are

Brady Connor

for Thanks, Hans. we're the Brad, question. first ready

Operator

The come first Hodulik question Instructions] from [Operator of UBS. John will

John Hodulik

can. I if questions, Two

prepaid any you into expect ACP. And as we the in side lingering any impact second First, or broadband the Was half? out look there ACP, broadband impact in on from or do postpaid on the quarter? either

upgrades, -- on then obviously, with quarter And record upgrades. record second, low I strong another think,

of be what out expect wireless AI the how to business financials second, into the expect you the look quarter, trend? to that do as out third in you the we Given on impact second half? phones the coming the And do

Hans Vestberg

John. Thanks,

Tony Fios. little ACP, was you a some as give had On details. yes, we bit the will on prepaid the and the But brand impact also on expected,

today see a way with the is very our great the and I both the broadband importance mean And important. offerings efficient forward, fixed then and all is mobility Looking and from of XX prepaid brands. so having opportunity. I access, ACP Verizon people Forward, go on this wireless broadband million

So impact an see this but slight as that quarter. I going opportunity some forward, volumes on

as upgrades, two have a upgrades bit It's for you a low things. the the On little seen, has been while.

even that First quality think that promotions, and think continued how we shown but X.X distributing secondly, our we of go do we're I of the more has up; years the customer years, discipline now, is have I for to the over the look how all, we important see last money. right actually phones bucket the the the at investment

a We're don't handle it. what's are cycle. expecting. we guide going all happen to going to our that what see it's this feel it, are in I I about to position in feel very and we great in worried

I here. don't So happening things major any Tony? see

Anthony Skiadas

things updates, of In give Yes. me ACP let Thanks. here. terms a John, of couple you

we was benefited about the in is of This So business. as that of in disconnects. prepaid from on the as pressure the is second part the XXX,XXX last the quarter subs impact think, previously, program. vast prepaid And saw expected. question. the -- about we side, of majority said we ACP majority the ACP minimal some exposure postpaid said Fios we time, in We had terms million add our in In prepaid saw gross I opportunity. we There's quarter, your of what X.X

If products. ahead we the disconnects small number expect we in prepaid look quarter, other and in across a some third

see headwind, second insignificant inside we'd And that up the ACP In see, and from on said disconnects, points margin would right we the of with any terms that that revenue, even of in also quarter. to impact we XX exposure the number basis of tracking was revenue service now. we're

updated as continue progress everyone here. we'll So we to keep

Operator

Flannery will Stanley. come of Morgan from Our Simon next question

Simon Flannery

wireless, you talked momentum. On strong the about fixed

still C-band to you're market. out, guess obviously have a going addressable the end build to your timeframe. I expand would the the of low in August million, probably hit $X of You guide lot your

the So help clarity to potential us and $X there. what's about when can million us you the on beyond opportunity $X million, your give think more

capacity. about of before plenty you've talked think excess I

monetization? were other real about there then about you you're potentially And sales towers. thinking monetize you day other about just other how talk asset Could tower to reports estate, looking or media the

Hans Vestberg

access, rightfully said price Simon, you on wireless it. fixed

momentum, And of access, consumer on C-band good both have with new less doing strong as to net as adds rural, on quarter is suburban which are now we but and on opportunity, into We wireless came penetrated, another our expanding vastly Business. fixed this well more XXX,XXX also type distributed.

let I've as So fixed we our I to said as have over before, can on soon when get million there, details forward. are the customers and that see gearing we more But me getting between time. come how network for of customers. broadband we the that target And great we a and X But reach million access see will wireless come back opportunity target. clearly, we back exact ingest X going as the

or towers, our mean, and any on flow, rumors committed in I will comments rumor, to But any no I we assets, improve What see we know comment rumor. the I can cash that is the On market. wouldn't Tony to should have see, that. do you optimize for whatever our we are very I that

But on priorities. last it into couple we've cash capital good in yet this is of for quarter, again so important straight focused That's the years, our focus extremely flow them. the did progress we goes and on why been on because

Operator

Goldman Sachs. Our next question comes from Jim Schneider of

James Schneider

if I Two, may.

that fixed health give of overall then broadband. relative to you amount on And First, on sort your on see maybe of seeing? of the capacity network guidance you the any comment subscribers? Could can the you market wireless quantitative headroom broadband you're overall more us in

secondly, the side. wireless then on And

the more next volume XX drive so? power you the confidence next split or In level that growth you volume price or your and growth, revenue to do for terms how months what's work the expect service of the out pricing And you over maintain still of so? year can same that of over level

Hans Vestberg

think, the broadband have quarter, we net on it So in I are been for XXX,XXX this broadband, to XXX,XXX adds a while. again, between quite

see a very we it as So healthy.

think to that be even I I And myHome we also announced, stronger it. really we have just good with going now offering. think we're on a

it So we see healthy.

the can Of the it in fixed course, deploy product, differentiation all access, with And agreements provision Fios that our is the different. then right fiber all horizontally now, best have wireless we it, we customers. of And how so by the customer the we market. scale how product streaming the far to

it for healthy I a business us So is very today. healthy, see

to on -- capacity access, traffic less the we than on it yet our is I comes wide fixed When now XX% again, as mean, all said, of around C-band.

So we deployed have only to portion. and have a a way go, we

we, course, more So as more, open of we opportunities. deploy up

Finally, improved resonate operation done our what we some the forward innovations prepaid consumer see in quarter-by-quarter, Tony both volumes And have a have but of side with volume it has and growth. the Prepaid, on with we you saw customers, and the it on quarter. and revenue with maybe we clearly, excited on postpaid. all market. yourself, new step also our this big myPlan, addition, done we've I'm the

our the up how Business wireless. almost I have team not adds and mean, Kyle to side, been net then XXX, around And sure been XXX -- now quarters on many for

the the this additions of good brand the all, to that see year. a Tony, offerings into are of So is the all refresh supporting position second put we that in I going we into that? half any that, with market, the that in

Anthony Skiadas

Thanks, Yes. Hans.

year. So very guide revenue the for comfortable the with

is performance progress maybe volumes, few and mobility P&Q. the balance find consider. Hans much and a And the said, a SWA. on and continue BX we said, additional just very as you track, of see execution to on Hans As And better points to

would that are to the the year. changes level to second the the in growth we I goes. sequential from The of little we wildcard, half obviously, in environment service promotional upgrades. First, see of year-over-year expect say as comps in second where the a challenging Also, We'll XXXX. and the have lap see is the more half pricing revenue

revenue all the said that, service not assumptions have having guide But that have we the changed. in

and this So we're in revenue you that time, momentum will good guide but the I business, as on forward feel tell well. not about and going to assumptions 'XX would those at overall, our carry we performance the

Operator

question next JPMorgan. Sebastiano The comes from Petti of

Sebastiano Petti

to net excluding postpaid follow Just on XXXX wanted adds second line. consumer up positive expectations the for the phone report the year, to

maybe a the for expectations the half perhaps about second help in healthy you the year? quarter. or a to back quarter pace first us run Obviously, in line of on rate full If basis could the think the second quarterly pretty here the contribution relative

about the to in should how just So benefit? line relative second we that trying the terms underlying unpack to benefit of think

helpful coming growth decent us quarterly Business. question, Tony, there can color the in the the margins? you in service perhaps But or the then, from services think just about second quick quarter revenue nice How through? over HCLTech help about growth Obviously, on perhaps And balance another think of should managed expectations, we year. contribution here the savings --

you mentioned program think I voluntary And also in separation there was market. the a

headlines and that I you're intra-quarter. think the half? or expectations we margin from impacting seen in thinking contributions back of items those should two How phasing about growth how those the maybe think EBITDA we to maybe had the about

Hans Vestberg

Thank start, details. give Tony you. I'll you will the and

really we of profitable build connections it and in invested As line the I will have many that's second once on as that offering on get strategy us. The straight And on half in been a the is into focus our how is top the capital. happening, is order details to Tony before, second you you see it give network looks the mean, return strategy. and very to said big for best here. can more some

Many of lot On But programs quite new coming have HCL, we and we couple year customer really into the care base, you why the coming see are things of cost, in a those all now the up. programs with agreement last of from large that's of the together a large also way changes. with put leverage.

right now. rightfully is mentioned, you as And that have a ongoing we program voluntary separation

our And AI investments. also continue the with approach have all We through. we disciplined is that coming course, with on of efficiencies

things to in have the did but we some there's And year. more come. -- from gotten leverage last of things all Tony? all, we So

Anthony Skiadas

Thanks.

On Hans upfront, this customers it this just great the few the every profitable we would is second and It do but day number, business. a flexibility. of options connection very week. We're points, touched providing a on a and is

evolves. In shared you add of the assume the for churn see gross terms the we'll We impact level can quarter. TAM market the some this, how of in

Looking the ahead, And without our we as expect we from the have ARPU subsidy. in It's consumer number reflect of less we remarks, high-margin very without second phone ARPU very device in net the contribution comparable said second expect of strength business. the back add-a-line to prepared the number. is the The year from adds good the and in for half a offerings. in business of the year. positive quarter to add-a-line the comparable core And contribution results to

on And on comfortable We with your EBITDA we're lot made question cost of progress. very the and transformation, then guide. a EBITDA

delivering the And of the in about quarter. managed terms track. and the saw in of some work last talked expansion is care transformation margin the XX did doing services. year we basis points program customer cost with with Hans and of we're You on

have on between and real decommissioning. We and of a going lot now right network IT estate work

program. mentioned In Hans the addition, voluntary separation

that of will XXXX. back year of in the this start savings and manifesting some And into end

enabler And of then lastly, AI an efficiencies. is

driving track. operating that on you We're feel about think coming actions about half from and care, as in we we differently, see progress much customer about of are on the cost first well, the efficiencies the And improvements myPlan. there with the can think year. the but we're see personalization you in that EBITDA can good very You

Operator

next Michael question comes Citi. The of from Rollins

Michael Rollins

curious pricing wireless environment do of like actions more those your category in basis? look relative broadband I'm tended to the average a the the in fixed does on on somewhat have to book book wireless video back offers? product on think annual And kind front pricing pricing sit the to front, see can categories postpaid, you some postpaid start products or where the where

Hans Vestberg

Mike. you, Thank

we very see we customers about more the have much accretion our I offerings where think the recently, new see we to value value in offerings done from are general, have. that getting

adjustments historically. price some done have We

I volume think better that that side he between has the said balance value would in get Sampath increases. consumer and

now. see what that's you right So

then and side, every team -- on -- SMBs. he I enterprise the Business share, market his has And area to gain a and constantly done continue great continued like Kyle a have mean government, in with really we high job. large constantly

we're in serve saw and on the Business the myHome offerings quarter, which the with of So SMBs. myPlan with is and a offerings the Complete doing that to you in way course, also our additions Business, new new

All accretive also and services. customers value our are better giving but of them

on. we them new it Tony? as sort we third services and customers. how the our to are continue for wireless with that's So of direct-to-consumer largest work. the with in is And with an layering the And see business support of in phase important so where wireless opportunity we also country the add actually

Anthony Skiadas

Yes.

in and a we provide might on half comment value but of confident, opportunities, about mean good book. appropriate in find with aligning pricing first take do upfront, we very consistent, we we Mike, to to to add. need were I as We wouldn't better what for very tailwind a and the balance year that Hans said We're the as a in actions that. evaluating those the XXXX, it in did the we're doing back the customers. contemplated P&Q guide, to future. things proposition be other pricing in Just the couple price said, said our We've pricing service been of of revenue, actions

Operator

of from of comes Bank David The America. next question Barden

David Barden

you reported think the XXXX. Q? lead number I it's Can The the upward. the talk side success about lowest guys going the from Tony, real So since I on demonstrable quarter, account we a industry this P we've seen of little yes, the it bit helps back had the and that data equation, that have more you

kind Or the has? kind we durability a strategies. way more into those one bit But the little see of number Verizon a guessing is line do about second that really growth but putting shrinking believe to so the the that by growing Q talk what right And order you is path? accounts, is more accounts this of of of I'm in accounts. grow on growth duration, strategy to is and can approach to those need

Hans Vestberg

we that. year, something clearly So of XXX, I think as heard it said you've I look, before, talk Sampath like mix. right price/volume so finding Last making the on progress P&Q. more was balance like about and XX-XX And

momentum And net keep high-quality customer think Business in Business in you have in the quarter. results on as see very we a had growth, on very consumer adds I the gross after very high-quality a well base, quarter and in volumes. mind, see quarter, quarter and side. and the it's the and in strong both we And adds the it both

you wireless access also provide to that to a did fixed growth wireless We XXX,XXX And net service in tailwind revenue. continue adds access. see the fixed

we're and to that. find P&Q, balance think results that So trying I of right the reflect

Operator

Supino from question Research. comes next The Wolfe of Peter

Peter Supino

A allocation. question about capital

As constant we that about possibility how your costing building leverage think opportunity encourage approach there order repurchases. [ about how an to of that the against of you the to do fiber is think the you extent each is both? create wondering on share level and target, capital leverage of ] argument returns separately, for maintaining more scarce, those at a would I'm XXXX more I and to think us how you or wonder projects. And in

Hans Vestberg

And of the billion in I the comes billion. mean, this capital $XX.X to our priorities, we business. when to allocation they the put first year, we $XX haven't guide it all, Peter, between money changed. have

grow course, business opportunities but we to if -- side. revenue and we will of gain into see always business, look So the more

years, job Board the growing to mean, ratio a And And we paying and And Tony position that quarter. you to not Tony paid this our dividend our Secondly, on that. the quarters. committed we're do -- been we're have consecutive are put I pay We've down my very dividend to well ratio, our is debt debt. well. And in see I inside continue and then down important. XX for now doing quarters.

continue to Second half, that. we're going with

rates, interest consider but there's share in will that, after is get where lot is until and to market, any the priorities, where factors all And we We not the buybacks also that. a about of XXXX. price the of conversation

that's the the future. let order and in foreseeable have going for continue So to on focus we're next said, we the how us priority

Operator

Moffett The Craig next of from question MoffettNathanson. comes

Craig Moffett

you I your going Apple upgrade about with return AI. upgrade drive the wonder Pro to X of are, iPhone the significant be or if cycle. meaning they requirement will it's I Apple's to Max. Pro betting obviously gigabytes of just I XX and -- that percentage could want be cycle believe is phones the that in talk a RAM to can base

the require presumably quickly level? comes What are margins you upgrade then wireless -- phones you do percentage in and upgrades? about of would many your for how how of of and might think just And mean cost already how terms that that business? how that And what cycle your

Hans Vestberg

of versions have the on already I with Craig. of base, number, our have you, because but later many phones, new in know I our of don't customer a exact base customers that iPhones. Thank amount are on high-quality we the fair of the course, postpaid,

particular mean, of going course AI. any Again, this maybe. looking I some to in will at time, don't time. around cycle, see excitement that -- to we're it's It into I be going be over think this

for et very a ] incentivization disciplined [ it have pro a comes promotions, to We cetera. or model when

sort a will We can AI. where so then manage of continue that talking of will will we so. And We do our which network with I the the at Verizon to to most be excited have great hubs fiber that. stick economy. from built the storage and believe we how XXXX that network, the the already built great mean I'm we is, have the course, we to between that's such to edge a think GenAI of actually of have you're about main all more the compute our network, we I and and Network, offerings, main have Edge lot Because to Intelligent backbone that, going subcenters.

into top power the sort go on And for we our go that. commercial doing we is that, from And then think cooling products have I those and enterprises, edges. of network of for up LLMs set as at and we

excited networks. with very that forward for together And private going so I'm opportunity

So when to things our of business also AI. there's for efficiencies but into a it opportunity us lot coming devices, GenAI comes a

Brady Connor

of James. from question Frank next Louthan Raymond The comes

Frank Louthan

fiber-to-the-home to to looking your fixed you given will want unsecured? be you To target what in smaller the you're X.Xx total the address would the more And that? And mobile you Or conversion footprint, then U.S.? assets? your that of expand do need think leverage do extent how norm that wireline you is think or clarify for, X.Xx leverage

Hans Vestberg

we convergence, some on uptick mobile fixed the On convergence, that. see mobile

customers. As I the said before, will we follow

will that. will these product, broadband. customer if on on have we And our to that see a economics we and have wants converged wireless We do all

But our opportunity. I customers course, that get our one from with products has don't and of of there. discounting mobility sort customer believe broadband we and we an for as efficiency share will that both see us, in to

going to products move because the the be will we the well have. So with European here Tony, see But we I levels we're further market. convergence, as on of nature think of the we very the positioned leverage? don't into

Anthony Skiadas

Yes.

the So X.XX when buybacks we would to then we unsecured. Frank, on we again, consider metric, got is unsecured. long-term the goal leverage X And the to on said X.XX,

Operator

question next of Tim Horan The Oppenheimer. from comes

Timothy Horan

you the spectrum on then of the and XX%. weren't stand-alone? And to just you for massive I of back spectrum I and full with deployments know of upgrading C-band initial are to in portion range technologies. used Can the MIMO about they said Focusing know also entire level were of talk kind the to network. you where and the a C-band

second to follow-up have back the I And you with out to the related when about with network a of Can with C-band. AI. on kind what or initial major you upgrade? know you saw And some I upgrades you're what do this, improvements build you go talk seeing

Hans Vestberg

have We C-band, it, now. now suburban we out traffic the in some just be On you're we're to have rolling XX% are on done almost for so sites we of prepared as Many still our deployment the those right speak right. but C-band, and of rural.

in as in the with it to we have when see we on opportunity. comes focused So also are goes access better getting wireless customer new trend his And where satisfaction or main that areas. them. That's to right we course, very continuing whereas beginning now. team have upgrades, for enhancing churn, we're we much fixed same technology, continue. and Joe and the going The rollout where the the and focus generation of same C-band saw lower to revenue

about best features that the all expectations that of us the nation. all in you on customer for SA, Secondly, expanding we massive even opportunities capacity revenue coming new create our seeing MIMO, just is the bringing asked and network into the XG for and more advance, with

and we're the -- just that's beginning -- So that. just in of

So I'm Tony? with get what feedback and good on pleased team very as running fast C-band. I is can, The we as see. they

Anthony Skiadas

Yes. Thanks, Hans.

markets. threefold nearly mix up are be are this at C-band. planned those So points. of just in we in points about points. other And stronger of then rural, continues improvements about couple do we well sites our On as a with basis X strength. gross we C-band, adds, now good gross and And premium to gross now basis suburban churn, seeing On XX%. we're have deploy see And add deployed X as point, XX% of adds

So really making really good progress.

Timothy Horan

And the that to nationwide? deployed when assuming of about. be do applications I but up wrong AI these could any are timing of on I'm that, upgrade AI need these any running stand-alone gets MEC And standalone of enable applications and And talking you're MEC you about have some you now?

Hans Vestberg

We without SA. can compute So we edge mobile do can.

are all a networks and do for efficiencies deployment features the SA. that with the order We network way X full core especially have there ecosystem in devices done need from the and and the again, some to Then that. But private years. you on

customers work compute, that now. When of But when of both we designed players conversation -- they have don't again when right our that enterprises comes bit have many GenAI doing we training as commercial modules. we So it's holistic it, products, with to of large edge a it the can how as only that cloud but already thinking that's to language not little the that we a well our deliver now. right in And mobile network.

it. I'm why that's excited So of

experience. deployed stores, customer have and employee And At see agents et XX,XXX that on personalization, time, the products for all in we the for already GenAI great X a to cetera, same that. our we opportunity efficiency market more is

with for time. So and AI we us, to there on for been it are a opportunities long have multiple

Operator

The next of comes Piecyk LightShed. from question Walter

Walter Piecyk

quantify potential result you -- in the EBITDA severance the can. us, that Tony, this mean, wonder prepared referenced I if done in remind I voluntary a relative like give separation a I if I in bit, of separation And you onetime that in, just are of payments can program you us or think June. past, does kind know the made? to I just guess, And benefit. remarks, sense charges you've these the

Anthony Skiadas

Walt. Sure,

the time. And is to similar XK to back disclosures last so the back in of guide. going to end we fully portion a savings contemplated don't We We'll see program come towards an how be and The the I June of a XXXX in year and back was did with So for couple our into the things. point. we at expect announced program It August, full this file on their it of early we'll completed process XXXX, workforce. once do numbers end of not until it's have finalized.

Walter Piecyk

what that kind there. who but like Hans, calculate a know number, kind you doesn't revenue we principal sequentially. year then of there's that don't last seemed wholesale And looking driver year the reported quarter strong the some know was before, not is. it's like, and of of that. looks and seasonality Okay. like I'm this can I if it It seem

it customer expense the thing imply wholesale So a a thing, of at is a stronger obviously, because or could growth retail at your this good bad business?

that your sense There's give a about how terms of in outlook you line? for or for can been can debate just And offloading change occur general and can some customer. discussion that us activities some other

for the of comment the a of in on can is important that how you you of growth, your if your wholesale outlook of just like the So and just meeting terms promised terms in growth Board? quarter component wholesale targets generally sectors

Hans Vestberg

And enterprise it. this back on build And see once. return meaning strategy I connections partnership have in on we network the many Chinese don't to we don't goes have to get quarter of as want order rules our in comments customers. so the try any on networks top important have, to it We numbers. I the to on have the the -- capital. But general, the have as we have we invested best profitable here,

relationship have customers, are. many we them, and a of where we and And that's So the good Tony? with have will continue. we MVNO it

Anthony Skiadas

network. monetize a Yes. the arrangements I profitable consistent and with the we we as -- a and have, the can as said, we're great Hans Look, strategy but contribution business, very go. to is that's with And to comfortable it's revenue the mean as far very EBITDA,

Walter Piecyk

then just some kind ask pivot there's related high-level just some some doing reports vertical one partnerships. maybe fiber just opportunities been of additional question? of There's T-Mobile the joint additional and but I for can If administration changes, integration. Well, asset

the not consumer that, least solution? that guess vertical the can long vertical for or you others of their together home if for Fios broadband big doing you're obviously, in -- it put solution services and how outside their that for Meaning if from wireless and term a risk is markets, I is the buy a is, at the question have me, important you that But customers? to

Hans Vestberg

And are And We again, wireless be market converges access. and positioned there really will between the broadband, us. mobility that we our right working serve Fios for now, well fixed customers, with if to good area. that's in either or

our -- launched, we're to with the we from now. we consumer side, myHome. we we So we're on the the had looking deploying assets you to also into them We're myPlan, right we continue have demands. in And how over how have meet happy as where we're saw customer moving myHome, quarter can benefits all and our now,

consumer doing moment broadband on is mobility what with the our at the about good product. and feel I So division

consumer that. we the so the and market, feel the lead doing are in #X innovating, and keep just keep continue good need to about team to to We continue I

Operator

from of comes McHugh question Sam next BNP Paribas. The

Samuel McHugh

big last brand this of Two refresh quick I the division gone myPlan, phase, the launch quarter. questions. of in through In quite a the consumer the years, few the with you've reinvestment guess,

revenues? should think place and look of next I or guess the EBITDA where back, take a can one. years service X X question step we of you're grow a big out we As sustainably kind that's at ahead now

Tony, part, the second mentioned And trends half. about XH just service the first wireless a versus clarification. revenue something you

helpful. you mind would just that very wouldn't If repeating be it,

Hans Vestberg

well with team have to on holistically. together service as When on that we're continue service that's think we wireless service And it revenue, is our and for the the EBITDA EBITDA as clear growth I revenue a as us are myself management leverage expansion to me, KPIs revenue, working that on and how it's our comes measured the cash on flow.

goal to we is revenue we now. yes, right growth the see -- So our service that our have leverage on

We products. our at like or we'll and have work Tony? on are in come We for course, efficiency. There 'XX any our pressures this something business, guide don't great work that. back what our but of for But moment, business that. with KPIs we as strive that are, set But up that's we for.

Anthony Skiadas

had service the the we revenue we've see we billion. already about actions second we is we we in in we half, half. guide, you revenue had sequential that, said, second pricing that And on well growth taken the so in said talked Sam, to the that and service assumptions expect what $X for when see look, the Thanks. over

that improving progress. see We also said and profile you have consumer, we an in volume

revenue access over rate Fixed business wireless to on continues in base And wireless billion, over $X of of scale. run million grow. $XXX access that to now continues and we have fixed a

promo headwinds say in also as and and similar amortization. continues And year-over-year. time level a goes and see then had prepaid, that's discipline to encouraging, the And improving, promo we said see we be that we'll we on. improving We

So really half. the the revenue about into performance the assumptions we service momentum and and those haven't good on heading business feel second changed, have we in the

Brady Connor

please. question, time have we Brad, for one last

Operator

question will Bank. Kraft last Your come of Deutsche from Bryan

Bryan Kraft

free half function seen usage first Or in regarding and working year-to-date flow, able up, think, about timing it's one growth year? in I favorable this the in year-over-year is coming and the capital flow Do for the a being cash the more half? second free have anticipate of we've CapEx I with higher for first to half. XX% grow Tony, one Tony you Hans. cash

position then you also talked share had enterprise you're on about AI Is enterprise. bit seeing? can Verizon's quite XG that for pipeline adoption activity strong you're anything the and And there and you in what sales seeing Hans, a on

Hans Vestberg

first and what is hand I'll continue flow. prelude. one, a -- networks then I volume start cash in to with grow is to can Tony over we it which the and see private on the Yes,

put of on private You you start mobile with edge you in ultimately, And applications then it. start adding the compute. network, on course,

more do since We where business more start factories, we for XXXX, have for and centers, set cetera, case et up we all that XXXX, and logistics seeing it. can

now, will GenAI of And some capitalize even many take corporation they meaning data sets. then are faster. to learning it That's the process, enterprises and are time sort do right in training that because their only going

to even and going some internally, time, is GenAI don't take but as close over a be in revenue advantage it's it So I the as definitely for from taking economy, both efficiency-wise, anyone that view but are time. to think well of GenAI point positioned we of

Anthony Skiadas

second cash be up X%, flow, even $X.X $X.X overall, first continues and cash quarter, cash in year, the incremental free half on In we business the so strong. an of free cash in billion, were Bryan, very was grow billion generation with to able the of the the flow to taxes. Thanks. flow cash

see the shape year. same the within we more puts described framework, free slightly offsetting we'll where debt flow see do expect the so. we're down takes year incremental back to puts us and the throughout to cash cash year, to have pay as the cash and full on and is to see a goes. second half and track pressure in we And XXXX, April, we we And taxes. in that flow last a we and that in cash January. as in flow said position that on And from upgrades, overall, position for But free strong similar to have build And lower the still of

Brady Connor

the that's Great. all Yes. time we today. Brad, have

Operator

Conference Services. for Thank participation today. your for call for conference Verizon and the concludes using you This

disconnect. now may You

Verizon Communications (VZ) 22 Jul 242024 Q2 Earnings call transcript