VZ - Earnings call transcript Q4 2024 | Verizon Communications Inc.

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Operator

Good morning. and welcome to the Verizon Fourth Quarter 2024 Earnings Conference Call. [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

are Good XXXX earnings Brad. And Officer; the this and morning, Chief our Chairman I'm and quarter fourth on morning me with Financial our Tony to call Vestberg, call Executive Connor. our and welcome Brady Thanks, Hans Chief and Officer. Skiadas, update. AI

Consumer who addition, have our strategy; who also an giving be our us we Business AI Malady, for Sampath, In update well as Group be joining our as will will Group CEO, CEO, on Q&A. Kyle

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

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

supplemental be also posting relating website materials to on shortly. will We call today's our

Hans. to over it turn I'll that, With

Hans Vestberg

everyone. I experienced that weeks. Good begin in Thank devastation has the wildfires morning, you, area the addressing Angeles Brady. will by the Los and recent

who impacted. out go everyone to hearts been Our has

this [ crisis, always around a we're and At time different. is no ] Verizon, through

and Verizon mitigation service themselves. public to areas, safety as and hard affected and first continue crisis federal, closely team they efforts. agencies working are is The response help state support response with to coordinating neighbors teams wildfire and local responders protect restore safeguard frontline Our

first businesses Verizon's holding connectivity for community, the critical is responders. network maintaining and up strong,

here restoring clock communities macro L.A. working were customers engineers we sites around that And Our near our the impacted. cell be the and all been have for to employees, of continue in will

me wireless Now financial with adjusted growth, earnings. higher growth of X.X% We and financial with service had flow midpoint successful both year let exceeding cash a X.X% strong delivered absorbing revenue generated guided turn while on operational guidance EBITDA our and ranges. the great to our taxes. results. free We We

X.X total an We We postpaid margins. with mobility in broadband year year revenue ended added million and wireless subscribers industry-leading the while expanding the $XX billion. service nearly of our

adds positive year. net net XXX,XXX and positive Consumer acquisition. without number phone adds the postpaid offering, of the million. the our phone been adds phone exceeded by nearly excluding the postpaid were has time for year, team. second consumer mobility, since business postpaid were In with net and and first This SafeLink, for the Prepaid turnaround for the net adds, TracFone great a X.X impact were

off access million X $X.X X.X we the access. subscribers led million million great X.X over success XX.X wireless nearly subscribers, over broadband revenue. access wireless year broadband, XXXX, to grew subscribers in million fixed fixed wireless start with on subscribers share access our X to milestone We're market to and by On wireless fixed of nearly of continued fixed next and We added including by ended billion hit XXXX. a million

work our and, Magic market first-ever build we to for private Force. to leader scale Gartner be done Air the vision, Inc, Cummins, FIFA industry-leading recently, wireless for services. We work have U.S. to the networks, more We with in named Gartner Quadrant were and carrier the only the U.S. continue our private a recognized Xerox, winning execution. us the

last employees, the and We down years. X less XXX,XXX year the over than We the ended continued with XX,XXX transformation. business efficiencies close drove to

gave business on flexibility more execute us strategy Continued capital priorities. and transformation our to allocation

We including customer-first spectrum and strategic such satellite deal, launched long-term growth. the and made We brand U.S. invest moves partnerships. and for Frontier, business myHome and in signed as Tower Verizon the transactions, Access, cellular offerings strategic continue to refreshed our

continued for dividend the the raised ratio XXth to consecutive debt net with We year a year ending adjusted pay-down, debt and EBITDA X.Xx. of unsecured the

We have transformation company. we with financial both growth the deal a as great strategic continue the and customer of

XXXX, flow. metrics: will key adjusted wider X Looking focus to forward we cash financial EBITDA and service on our revenue, to continue free

I is While to wireless would details, underlying promo revenue service amortization. when Tony be excluding expected highlight the double guided range will provide growth nearly these the

to guidance for over turn words and With few about a it the that, quarter I XXXX. Tony to say the will cover

Anthony Skiadas

Hans, everyone. good morning, and Thanks,

and As in earlier operational we while and reported X strong execution took mobile to platforms steps while our closed financial to over decade, The full We discipline financial our with nearly the added postpaid onto we we bear continued year million XXXX maintaining the improve performance. also fruit. highest this our for guidance our on fourth year. in delivering broadband subscribers financial a in quarterly result the quarter, morning,

XXX,XXX XXX,XXX net growth net us positive giving adds, offering. the postpaid mobility fourth adds adds net consumer our without second number in postpaid year solid the and quarter. phone with delivered postpaid We with for in phone full This includes

in giving in customer strong net pay The prepaid SafeLink, across rigor we saw net for another phone excluding to fourth groups. the were Prepaid quarter growth us Business year. implemented had solid positive full all X adds net adds XX,XXX the adds off continued quarter. with and XXX,XXX operational

subscribers Fios a solid share, of by continue adds we competitors. our adds added access the XXX,XXX some the wireless take XX,XXX broadband, XXX,XXX net In given challenges to noted quarter, result delivering for the Fixed quarter. net market in in and accounted

XXXX results financial operational delivering on all strong guidance. our these of achieved while we Importantly,

adjusted In fact, both basis our points margin the and wireless the expanded service guided full above adjusted EBITDA EBITDA were for of our revenue ranges and midpoint XX year.

investing quarter, with with in X.X% balanced discipline. adjusted delivered we fourth maintaining in we growth the customer growth, as service along financial wireless growth In revenue X.X% EBITDA

for the billion acquisition for allowed included $XX.X to us closing Vertical $X.X Finally, of reduce Note the $X meaningful position year quarter transaction. better us our our our with to fourth of cash our Bridge billion capital the that and the consistent approximately to quarter from flow our steps debt, take priorities full allocation further in Tower free pending cash proceeds and billion flow in free of Frontier.

In separation addition, we voluntary approximately roughly million, which made represents the we $XXX half payments of as severance part to payments total of make our of program. expect

operational to our entered momentum, good and that and in is XXXX guidance. outlook. Turning financial reflected We with

net improving drivers healthy revenue expect with outlook and consumer and are service We this XXXX consistent improving pricing carry wireless revenue to into postpaid of taken access, that XXXX additions actions perks volumes, to XXXX, phone in continued accompanying grow adoption business total continuing and X% wireless an key The growing over and phone and profile. scale of prepaid X.X%. between myPlan include fixed

the we healthy. amortization That we headwinds in said, are in promo very fall, peak As shared customer expect to XXXX. underlying economics the

more Please device service billion and note annual in the revenues protection insurance-related that other recurring are first from revenue plan beginning than quarter revenue. $X.X we wireless XXXX, of reclassifying of into

higher off context wireless viewed growth As in a the of our service guidance should of base revenue. a revenue of be result,

revenue This business wireline adjusted to pressure grow cost compared initiatives, ongoing offset outlook consolidated and transformation partially service X% EBITDA revenues. benefits higher XXXX. wireless in expect reflects to of X.X% by the expected We to continued

an is $X.X EBITDA midpoint expected year-over-year adjusted than of guidance which growth billion, more million expected in more reflects increase range The we of XXXX. than $XXX delivered the of

offset growth, Full growth reflecting partially up to year the adjusted share range EBITDA X%, in per earnings a adjusted and to depreciation be by expected is amortization. of flat higher

XX% plan to expected C-band be As up that and includes we fixed guidance and sites, capital MDU October, the accelerating to to XXX,XXX XX% $XX.X between all-in our is investments incremental our to open initiatives. to expansion full of growth $XX.X for all our an wireless includes billion launching is in discussed solution. spending billion. sale year of to This This for deploy to locations Fios number

will always, As look we opportunities to for to deploy efficiently continue capital.

of flow tax no expect acquisition in flow, Frontier. This current excludes $XX.X change free Please billion outlook cash billion any assumes in and the to in upgrades our we legislation. guidance that from pending the growth to range impact $XX.X cash note mid-single-digit Regarding of XXXX.

regulatory going to expect currently as transaction and continue to XXXX. working bodies all is the by we must the approve We planned, The transaction. early close that process with are

priorities. will XXXX now over I the turn go call back his to Hans over to

Hans Vestberg

Tony. Thank you,

share to supporting networks dividend, repurchases. Investing Looking ecosystem. strong ahead, and operational and are Execution fiber and wider continued priorities And reach. on XXXX cash to our free expand and paying mobility and open private fiber growth. Laser we Ultra debt and expansion momentum A we on new XG down our the discipline. compute from as service customer clear. eventually growth the drive focus Financial revenue scaling focus excellence. assets of leverage adjusted customer EBITDA while in AI Accelerate will the experience revenue and our broadband Wideband streams flow. edge growing business, our capital And allocation model. financial growth,

So let me Verizon's about strategy talk now. AI

and at worked AI in today have AI for generative for years, Verizon. many, AI at scale X-pronged outlined many We we already have We company. with products several our a strategy

briefly. go me Let them through

care pair mobility about to would experiences which enhance and down A the talked is customers representative. employee about experiences, our before, best costs operations drive I've and in in our which example This is available efficiencies. one, FastPath, all with customer centers Number be good driving intelligently deployed call

of Me offers service with would can personalize that personalize experience about The we product second which customers. Verizon to This Segment strategy here how customer ], the more AI is is products. personalizing products be for of our and AI a part much is tool great A at and unique uses [ more to be solutions. the

so to is third today. will to which that's haven't And of you come talk I about and the several focus pillar at connect Verizon the but it, AI much we the today, times about to ecosystem. strategy, back AI talked promised have that of The we

today, Over to application, If network, for much that today, time, EBITDA and fourth that creating are where revenue we about you some it's and on has AI we come capacities. but transport and for an will, centers, data both enormous opportunity are language as is trained had in quarter. the generative of in that us and cost, modules opportunity impact the already of cases. This an latency large edge requires large created at think closer the course,

now of are our looking when market generative serve how to it can the next this AI. use We comes and our capability assets we to into step

That's So in address I'm AI introduce generative excited our meeting and Verizon's needs very today. solution to next AI, customers' end the to and of step the product AI. and market Connect proud this

talk these markets. addressing Kyle we're and I by about will how and discuss hand over So that, to that it our opportunities will

Kyle Malady

service suite of a Connect be that to is vision Thanks, end the our to networks, have allows Hans. assets customers' the name AI AI businesses Verizon for offerings are multi-cloud from our existing technology user across in suite are new edge to premise customers. and intended ways It's to offerings the or of demand AI capabilities. to this growing It's pleasure applications AI and this morning. can strategy the us a environment at the fully revolution. workloads utilize deployed our of utilize partners that of leverage on a meet both we a that ecosystem here Whether

built vision assets. compute starts and is around edge with It best-in-class Our connectivity connectivity. all

have network last our metros in these XX-City ILEC our build-out. over dark lit can our to Together long-haul provide Fios, services outside and One only that but we Fiber with large geographic fiber also assets, the a through industry-leading not together, XX customers our built we via unmatched stitches years, footprint Over area. fiber

We cloud and connectivity have the and ahead curve of are to this expertise, in area. we edge

over users visibility. in Converged Network in Edge made pay world The will need dividends have even bandwidth investments new and several our as the more we years Intelligent last this network

control workloads allowing network Our their insight users their to where Essentially, control new them we as Customers are see running. that, more they optimize to program we AI capabilities is intelligent and And network to via to to are give and operations want fit. are when building programmable. resources tools. and new

training from decisions real-time predictions. for need shifts computing increasingly AI deep important for deployment, as the will become compute, to edge finally, And distributed and

at We the which already have telco many space thousands have and of cooling power distributed available this compute facilities, edge. of for

secure, The stock is AI flexible is we assets, AI our evolving. ability amounts As to high-speed, the of demands clear. AI to required massive of powerful chipsets infrastructure foundational data, in a Verizon's existing take connectivity. ecosystem enable player technical be network and

investments over have of Market analysts to the will and X XX Enormous next there trillion $X expect CAGR estimate some AI more will grow at been years. infrastructure in network AI investment the be years, plus suggest we over traffic over announced, XX% next and come.

be will future, connectivity a AI At landscape. secure by the to network of its just we as Verizon, distributed success. participants enabling that player infrastructure ourselves All but compute not bridge see in new as AI-driven this need underpinned this will key

is the the serve as of the applications Verizon's as seamless locations, connectivity across range forefront is leadership growing enable end-users. firms net among and XX,XXX providing of at AI more these widespread link enterprise solutions integration crucial believe poised enterprise in over to even near who more network AI We market AI will the connectivity AI With of sectors. Verizon of and Verizon wide a essential industries become that the positioned the become the them. applications deployment, between will utilize applications Gen

XXXX, AI-powered continue a crucial data new in will to close We operational programmable by and factor extensive workloads XX% of meet to expected market. ready face also centers which Verizon's demands third-party are have and be ranking are centers Edge. currently these key this Data in the world, of the is in markets. extensive centers another third fiber to to connectivity networks data constraints moving across

significant the recognizing in seeing they demand. predicting in Industry connectivity. The are and migration are Hyperscalers expanding the surge further AI alone into new is market. industry analysts in opportunity. and capacity colocation cloud growth not we're markets And high and a need seeing

right are Lastly, all power cooling space have the and and in currencies we are that demand X. now,

a in leadership against across comes believe the when inventory and As space. we position usable in to our other take power that it look are and we we market, assets, players compare

that We can either space cooling States spare have United across or have facilities and retrofitted. the power, be

many X As XX-plus our here across today, we sit we to power sites. have of of megawatts usable

Connect. through move could continue we that as AI be transformation will available network work, for made more Also, our to resources up we free

XXX and zoned of center-friendly addition, In center areas. undeveloped data XXX it and for currently between we acres of some have data land, prime much build in

not a is theoretical This discussion.

players our for offerings. We demand have their our the with already Major simply increasing seeing as for and of it billion a Google purchased such over in network AI leveraging are We of funnel AI intent have capacity infrastructure. connect using workloads. $X Meta our existing

deals are these saw reflected Some fourth are and improvements our the of to in you results contributing the in quarter. margin quarter

AI telco functions working closely can reimagine industry to players are work We along with with like NVIDIA how workloads.

go network. and far network this that macro private at some potentially starting into Edge development a are We the point. at the in The will applicability beyond

cloud to happy global Vultr partnership Edge also new data in service GPU that their we capabilities our anticipate the fiber to I'm a a infrastructure report a enable training their have provider inference will and as high-capacity GPU We of and strategic our with and tap for mutual into network centers provider. Initially, Vultr, with at and leading deploy service customers computing as X helping broaden over our time. distribution. AI reach a

the line bottom ready we ecosystem. to The power help is are AI

By improve to deliver financial Together the years revenue future. secular few and expertise work the the last team our hard strong of of cost further expansion success positions in AI for worked assets, the on business. has continued unlocking help the wireline with of we to efficiencies, vision mobility, the mitigate into Verizon impact us FWA Connect AI results existing and solutions potential The Verizon over assets, the pressures. can have the We profile at scale.

Hans Vestberg

how see us assets ecosystem, what in the Kyle. you have. I customers have just area. you, opportunity now we insights this I'm and from we this solutions from hope the capability And as connect market. excited right we now view an already see the the also of more in we got to can for both now AI of point and Thank and beginning. we that the really is

Lastly, forward we continued exciting great had and to look a ahead. opportunities XXXX, I and growth

I that, handle to hand to So by the Brady over it Q&A.

Brady Connor

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

Operator

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

John Hodulik

on commentary Connect. off AI first Kyle's with starting Maybe

could both -- -- connectivity how -- in space realize announcements we're the like it's early, to terms Just great. weekly power? overall But the any of and this Would now. be on in I seemingly any opportunity or of these in sense be side the big getting terms sense I know

us. And up have Just both the you as real gross a X%, then operationally, you that end we drivers A, maybe in and about to the started to with frame XXXX? guys year, on it over out broadband talk out momentum side. wireless that side And showed more continue momentum you momentum? for seen some adds little bit of the could the

Hans Vestberg

John. Thanks,

have come with it and in and Let I both the AI and the the we broadband Consumer products Group we but momentum, our actually wireless, we to Group, me have the structure, think start the in When outlined in second people also the to rebranding with only we in done. quite Business products deployed, question, Kyle. a honestly, we'll then we lot not comes it, of the both have that back leading resonating. the are have changes And see

said, in I a is, new to mean quarter, comes customers it we when as decade. fourth we in best the this in what added

we're of what So really seeing. we're excited really,

stronger is And wireless, doing share. to if And on mean so the together about wireless now. you take is getting over of continue fixed fiber great. we broadband we were the with access quarter, are think the XXX,XXX course, that's, side, in stronger I and

We quarters improvement. have several consecutive of

right, improving. our network. but And So I I the right. lot fixed think then and, seeing lower opening course, just the the from you access wireless network branding deploy of numbers mean products sell-through, also have a the are seen premium C-band, it's that we of the is execution, Wherever churn.

done of over have with the that years. comes an all we last execution So together couple

think actually first, But Sampath. Kyle to about talk assets. comment great with ask then AI our we ask that, to will will and on opportunity, the which I is Sampath And I

Sowmyanarayan Sampath

Hans. you, adds in had quarters XXXX, and higher Thank for than X saw of momentum in our momentum we expect Look, in business. continuing XXXX. quarter, add XXXX. fourth really And into we we've In we growth, gross the net see strong that phone

reasons of couple why. A

one prop our is resonating well. value first very The is

just our than that base half we that more to unable unique myPlan, to is think myPlan. the give I -- because in on already others is savings customers market And prop give. value cannot

is well for So us. working that very

starting well, is even to into second in markets, and 'XX sales lot continuing the work we we marketing The did local a see 'XX off on execution, that pay XXXX. is of local and

segments is of we've the into, tapped was there are opportunity and some The that QX last start that.

was share had markets. historically in those we first segments. one is That The shifting, are our starting large We've see Tier market gain in X X presence to Tier slightly a markets, lower some markets. of

Second Latino effort is to We've segment. last quarters the of concerted that. had after couple a go

So we're we we operator. QX, in went financially saw saw disciplined We a growth, it. opportunity and for

Kyle Malady

our the -- billions Thanks, John, AI single -- announcements Connect. stuff right $XX is I at this into we the well here's see you cooling like that really thanks of what the that question it's with that I services guess play can there's ecosystem. not we And But and the have of day, plus even is we moment I best that new we can of hundreds into -- now. talked sell plus. of probably funnel for the mean, TAM have with every on have frankly, power billion only we billion dollars going about, over $X spoke about. this. into have assets That's a space counting today. lot And our that's in And right

So where up. it I to is ends this grow going feel

into be going is to right I the anybody's to think here But going massive, it. play investment we're able and into guess. it's

Operator

comes question of from Citi. Michael next The Rollins

Michael Rollins

in the you more you drivers XXXX can context the saw you what the customer on base behind during additional case share for if embedded bit are And guidance. if upgrade some of environment fourth could on Curious behavior context that within your quarter. upgrades provide terms from the a

guidance some if terms working guidance EBITDA growth things if drivers could the of additional of you and faster could 'XX, share just as share between EBITDA and second, tax to some the the you just free items bridge cash well And flow for guidance then financials, that in including contributing are for 'XX, like of as capital.

Hans Vestberg

Thank Okay. you, Mike.

of many, on came So comes when upgrades, quarters to many I we to that think a upgrade. after decline, slight growth it

you ultimately that's strange after there. quarters, will So not get many

I same behind think the of still have that sort we facts it.

keep what design. cycles hardware of the upgrade very on I I consumer we're this. course, have of and that's, mean earlier, as way on we now very on XX over new technologies course, seen months. mean driven the phones much customers spoke we long. side is, And contributing new And to about

we of as seen resilient And much that haven't well. more So the better course, are lately. way of products and

to the you on to couple I will So And EBITDA see. Tony it. will ask about I make expansion, Sampath think what comments of But talk also ask that's I a mean, on I more that.

I all But Kyle's outsourcing we on care. in done HSC worked have cost, way did the customer the with from voluntary mean the with -- initiatives shop, the we the we in we done have change have separation program,

growth cost. the on cash course, model then in are leverage. on revenue lot the showed service that and a cash And you done it growth. our our that in have in flow things: start see And see X we get and expansion. 'XX. EBITDA. we EBITDA to getting you wireless And measured then, remember, the And flow, We starts of We

the Our guidance for XX same. shows

to is Sampath, it. team But environment. So this the about super upgrade committed

Sowmyanarayan Sampath

basis upgrade increase year-on-year. saw Look, XX our a long QX, modest was in rate Yes. points some XXXX increase, very lowest we time. In

XXXX gradual to So rate. our we XXXX. improvements going And low think the in seeing of bottom we're was upgrade start

very important I And quite what plan in driven our by think and is have our things. I mid-single with to assumed going guidance. digits think comfortable that. It's we're X be we

life And first some right will now. at months XX It's device. devices. point, customers the is exceeded new The of the want

off their DPP X-year contract. is The second coming customers

cohort We XXXX in large off. have coming a

mid-single-digit combination increase of So X upgrade give in comfort 'XX. a that we is us expect those in what

Anthony Skiadas

I'll EBITDA, start there. on just Mike,

that in mobility, also, broadband above remarks, million grew range. between the about we as the XXXX, in Hans prepared said was subscribers of So and the billion. and $X EBITDA And midpoint X.X we grew

our rate we operating the starts acceleration, without XXXX, economics the growth service In prepared talk Hans said about It at guidance. growth an and X% midpoint the growth you you of remarks billion mentioned, the which $X.X leverage. promo to was X.X% economics, as customer range It's growth, implies in the and heard about revenue customer amortization. good and healthy strong in with of the

legacy And then mentioned and the on work. of services is that program, which also work managed continue the of and elements is that cost at the taking voluntary year Hans to a year. took to Joe work and end business is lot heard and whether we year. more separation And transformation it's work see benefit full shape the care a as that network make ongoing. the We'll Sampath focus out, customer last the efficient, do this well have AI, as you doing, the we upfront, including

EBITDA impact were Sampath we're the the assumes, And execution The promo acceleration. the and that confident us you to the we the performance. as network we're year-over-year. you and guide overall, modest investments have as in for strong making, strength EBITDA of the upgrades are But absorb mentioned, very able mentioned, increase growth of positioning amortization a see

as I the And to flow cash the Hans to business if mentioned, continues cash move very be generation flow, strong. then of

cash $XX.X of about delivered There's there flow. tower in year full deal. the free And deal. the from 'XX, inclusive tower For billion $X the that's we billion

of That's that that. our in And at strong And we managing still We $XX.X the talked range the midpoint. context what I the generate and to drivers, range spending. earlier, about Mike, the profile. billion through very starts cash cash feel CapEx always said job significant XXXX. very And free Hans billion efficient and the $XX.X and to we saw in be an capital pressures of do can as growth, billion a engineers they're flow all-in cash manage we're said the you gave this billion of about similar with a evidence, very $X.X going to we to very network $XX.X for with flow, to cash still a guide, are and billion good generation. 'XX on when It of look we results as our like at XXXX. always, the taxes $XX.X great And EBITDA

that saw XXXX. You in

debt down debt. continues expense significant improve. about We're of billion We down Interest to in a XXXX. $X in paid amount total

efficiencies beyond will that capital, And driving goes focus in working handsets working capital, improvements continue to and see So as that well. continue there. on we to on then

cash with a is there. We'll have Washington with we see Frontier, We'll change guide happens the digit proposed what from And in And see continue that see then the said really put was free And increase guidance. no as upgrades. assumption to from taxes, in depreciation. obviously, we'd to legislation. flow cash pressure we bonus excluded the any earlier, mid-single year-over-year in

the business, capital and to strong in the whether investing allocation reflects you'll it committing it's guidance that generation we our continue the the XXXX. delever see us balance in dividend continue look, that in cash But have the the do continue and sheet, business to to priorities, allows to us

Operator

The of Petti next Sebastiano question JPMorgan. from comes

Sebastiano Petti

Tony. that in about be The the housekeeping we a and insurance that growth protection just within quick device -- how think rate $X.X will bucket revenue for regards question, billion in of service Just should guide. XXXX, I I underlying guide? and expectations contribution reclassified? Just revenue years year overall to has I revenue within the service guess, maybe about the trending, think mean trying relative how of that the context for apples-to-apples last been next over several guess,

on question, quick fixed Another wireless.

in little maybe FWA should about think kind of bit a you And which of from and of MDU growth perhaps will I contribution thinking be in little suburban those aid we the a C-band markets. in solution slowing here. Hans, markets. bit, XXXX, up pace Strong quarter, also because is rural standing X Tier quarter about the as fourth greater just number the in talked an the third trajectory deployed

how expect contribution about within maybe markets. the So MDU the imagine, I help the, maybe the or to would scale you in C-band any thinking solution XX

And then X last question.

if of As to year-over-year. you focus on improve -- to second there Sampath, net can expectations to kind Maybe adds pronounced touch consumer the beyond think, lots a -- slowdown you've growth there's in Is think -- 'XX? in improve for we've slowdown seeing ecosystem. Great upon that you for across or any normalization hear. if ex I been phones growth. expectations immigration the lines of about, immigration reiterated Anything any

Hans Vestberg

Sebastiano, let me start.

dense. Tony insurance access, deployment On by our And you're on case end business priority the fixed access. wireless fixed now our X means some I right, to the will mobility. a mean, has and less like not take go and number that markets We C-band market X in one. that We will we're that absolutely is believe secondary one The question, down; Tier we're slowing wireless that speed down. Tier the same. slowing is

saw quarter. little of bit The probably. fantastic. You But half first are doing numbers going the the of less the XXXX a in into opportunities guys fourth course,

with and in solution going wireless strength it our continuation then fixed the MDU I'm the in Fios in up have. And ramping again the market we're do we're with see at of XXXX time, Fios access coming in broadband. the same and also But and we to going share to we took a certain broadband

ask the time we a talk great year come a all little for about So products, with Sampath wireless new I'm it's what going fixed immigration. again we're and bit delivering. to going we to be improve that, access. to And

think I a or pool. portfolio our before even less immigration, customer though what been a with all have big managing that groups, come slower to we But see, we we switcher the fantastic to

to appealing offering can market, in the an we that competition. that's the actually and grow have with We

confident So the moves feel can we it in that market might whatever -- continue. I

first Sampath answer comment So a Tony and then I little will ask on insurance will the question. bit to

Sowmyanarayan Sampath

it's well service, broadband prop premium attracts with myHome the premium customers working attracts and end, delivering resonating FWA On FWA, is They convenience and ease like what our well have more very which on want. value base. the use. of you think is really one I Sebastian, and client the customers. a general,

On fiber, high which have the performance. reliable, is other very hand, you highly

to So and you're we market very well, that's seeing were success. continued why the able segment

to done of of all as industry is than taking to us the We're growth the in XX% XX% well XXXX. we've going are in We to XXXX more as the coming market. continue see that in adds. net

between adds XXX,XXX quarter. have broadband and to going we're company, the a XXX,XXX For net

we quarters to As X big across Hans because space. in are we fluctuation do said, there's be as things very the this scaling some going

rolling Tier it works different They hence, and X sales it. pace slightly a Tier a X, is out first into of markets. The C-band density, in as have different

MDU The household We're We've the product that third OFSs. to for Fios second FWA. expansion our into see XXX,XXX scaling it. going to started of all our is XXXX. And is

those X the that are XXX,XXX we to all but with XXX,XXX fluctuations. So -- and very assuming comfortable scale will year some things through

plans, it starting the on service. gig are our ARPU see plans increase. are convenience goes premium more of the taking to Fios good the back we premium plans FWA. our of on And resilience and our Customers side Also, to and

for behalf speak of note, that kind customers me the let of on On moment. the

broadband decades, For it limited when very comes most choice have to providers. customers had

pain NPS. You points tend to hear the drives low poor again. same It's pricing, over it over reliability, opaque and and

in expire pricing, and and not We clear. what that's That This does no are customers them, promotions delivering They that no high to year. that customers performance are want. want we what is in offering is like. want pricing what very transparency. gotcha a that XX choice, double they months, reliability, An delivers

every quarter. very that broadband net of XXX,XXX pacing on are to XXX,XXX So single we foundation, with adds comfortable our

Anthony Skiadas

Sebastian, the insurance. just on handset

So couple just things of here. a

revenue, it's and handset complementary So value customers very That's recurring it's to that protection our receive. connectivity.

revenue, The a in have you recast the so historical is impact view. so to provide going we'll comparable XXXX. them billion are $X.X about We

not revenue maybe is category. significant, another impact obviously exiting billion. no So XX service the XXXX the there's to basis is change to baseline about points. The rates X, of $XX service growth And

Operator

next from Sachs. Goldman question Jim Schneider The of comes

James Schneider

AI, wireless and on if on one may. I One

$X for but growth On Tony, when the doubling roughly roughly this the about rate step-up essentially for service I year, underlying billion think, the accounting the you're revenue, talked change you've wireless accounting introducing.

does pace into of service 'XX, that of this that as to same on kind to level terms of So of go growth we revenue? absolute sort exit we're going dollar maintain be 'XX able imply and in revenue

sales? roughly the thanks split Kyle, detail. connectivity Connect, us data $X And see centers going being between the pipeline you recognized actually good can on long you of term? revenue sense then the think the to P&L? we're material billion what's the in a But business When And give maybe for on and AI of revenue do secondly, the

Hans Vestberg

Okay.

we reiterate I to to from my the amortization, right promo on X.X%. what mean, now said just the X% I'm On guide remarks. going I on opening

will -- growth at this Our off year, double. going that's basically, end underlying that so And fade is the forward. less impact nearly to of start and have

So that's where we are right now.

as done We're investing 'XX position. us. still in that and that not to headwinds how where impact moment, heavily by last is but you Sampath that us Kyle, our less 'XX, But for guiding the that might we're was financial of years, even, of we in year-end. by XX that work to ourselves And will course, given remember, for created has during have the a 'XX going the get an not we're impacting good the at pressure best the positive for impact, a XX months, and discipline and

to of as But very be than what follow why real to see double that's I And nearly have guiding is terms. do course, what we for of need growth that. you mean clear. really in are you the I a accounting, we

AI, I'm it to the Kyle. over to On hand going

Kyle Malady

Yes. here, Thank the for question you Jim.

think and dark that the I connectivity why to But and we time well. to sell services, selling together as to that that going if right? be announce over players, to fiber kind basically margins entirely power see good wave with of going of web it's and we're we'll be It's bundles portfolio we're certainly it fiber. now, the wave networking, think we'll you basis, our and basically thing. scalers, lit on I that's typical right, funnel the also selling stuff, and maintain we're I So cooling cooling space put space and but a right? sure make power to right all And happy basically at look the add dark today for that we'll -- project-by-project and we'll

revenue was fourth me for in quarter, rec, certainly in that booked we our the And regard helpful of rev in terms in already and this EBITDA trajectory.

So bottom line going XXXX, forward we intend driving to drive more of look through and to that business the we here. more to

Operator

comes Swinburne question next Morgan from of Stanley. The Ben

Benjamin Swinburne

And ask come then the environment. to topic. and guys AI to I'm to sort ARPA back competitive going about Wanted the on of growth Kyle you

bit had growth just little what gives healthy ARPA of in the about sort some ARPA price consumer of growth the consumer and and guys around you in ahead selectively expecting business? of to plus growth you sort you X% confidence QX that the ability about talked talk continue guys to for see drivers take Can environment a You competitive the in and 'XX.

you then, were a bit. And -- fiber mentioned mentioning you just dark Kyle,

much AI in We pretty have wondering would capacity. are adding this bit seen business, guys where to of how your into leveraging some guidance CapEx is investments assets. And some talk investing opportunity of your just in competitors you if the little announced investments existing about could sort of are the big those you targeted. I'm be extent a within interested

Hans Vestberg

I with of competitive competing, network, is So say and It's way the with wouldn't new competitive environment. I on the and say in that way will environment. that with performing start usually competing and the mean, the the better. the we're that solutions anything we I there's our I brand. just services product that are

that year, to now is going last our look network go We're you C-band we continue more And at go improve. have there. means just mean, I to to which if to

on product and the Kyle side, heard doing. have we myHome, about myPlan think what is I

of All that is resonating.

really well. brand, X months paying as Our after even refresh it's early is of though the off

that to better Sampath the bit competing all the I we're how a about will So market But are is in talk growth. good then ask way doing on than segment, the little ARPA before. really we

the will have. is in already would everything On Mr. the majority Sampath? we that And fiber, have I is in Kyle. say and I usually, we assets that But nothing more. included But our dark I that general, hand to guide, there's would say

Sowmyanarayan Sampath

Hans, thank you.

me value end gives network, ARPA. that comes the strong of prop is At on Let that. very of combination very on #X the about prop for us day, brand strong our it us. foundation a confidence We've value built build to a down and what with the

It's We've use price let and revenue important volume. step a the get talk to about wanted our we and and broader category said opportunity to from back But XX-XX sustainable me long-term always subscription to options. a an business for contribution negative in FW And historically been framework. was a service medium-term and for volume our all way be few a because good for for on mobility, that are businesses: do saw our value, we that. which us. across contributions we years start us positive to XXXX to has

growth broadband. in to volume continue sustained in and value postpaid see momentum to the going You're and

of takes of So care -- volume the the equation. that value part

we component. There Second X important have. which is pricing of on that levers is types price, an are

ups prices a The X future But XXXX, and we the had have. we We more more X had of the we and, where where price see customers. comfortable structure higher that first is feel we we delivering in value because price-ups price we've customers. our lower We in are very that major with deliver value for that customers provide little course, input price-ups. they comment cannot, to look more importantly, are churn on value XXXX, we to to will

hopper, help from growth $X revenue going with For And those to baked already price-ups. the our than plus service in of in and more are we've XXXX, already pressure billion is course, see, price that actions the side. done volume of you're the just

are because that premium as is bigger for else. gets taking stepping The opportunity especially they get up. savings plans, It's give second we more don't buy perks rolled them out. as customers they They're a C-band us more anywhere

So see a of that. you're little also starting tailwind to bit from

ways Lastly, the we've -- that there started we've are to monetize network aggressively. other exploring

enhanced that. and In slice, the second is QX And more we you're The connectivity. satellite see slicing. going network is to launched first network our first 'XX, of us do one

with partnerships and start out, you're seeing We more as going have that to scales the best-in-class Skylo. monetization Apple And piece. in

So on monetization network we well. as have upside

growth us it's all execute lot gives a market of lot, that a you'll how XXXX. XXXX. playbook combination see of like in these executed in comfort The competitive, good our but very we is hunting of ARPA we similar to us think I well, on a and So and of look,

Kyle Malady

the on the I And AI bit, question, that Ben. appreciate

to we made is is as now, the markets, our here yes, these done. think, get investments time. what secular some And to are investments we've our to can but MPLS, things doing so be there, plan things we we're leverage to the continues And to have. most of I go over game assets down already Hans' into the So the decline competitors point, of that going reimagine using we've

So already it's little tweaked bit. a we the assets have

at the right in out Edge we'll we technical fiber the deals, CapEx and to listen, have do people some space. is our these of to do data And then a retrofitting locations of to go business, little spend what meet bit have some capital there and/or because, centers

all we're with that. have we So the go ready to in It's envelope. that, in included but for money

-- to and decade we work really and with all over last have those Edge the have. capture we've we're done here. all them market leverage the just leveraging We're going and that One So assets just Fiber, out Fios we

Operator

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

David Barden

more guess a item I of first, you, housekeeping for Tony.

And is of fees Now other of of other now in that out perhaps? in what of cable of monetization a we've your out XXXX, we're pulling pulled is pure-play more now insurance representation relationship other? the XXXX, it

about we As with question well administration, thinking this the have big terms for obviously, about is know possibility, what is Would all it then aware mean? bigger more new we is, of would everybody think how bargaining now there in about larger the of about pricing? think And talking Comcast question How I work? guys one change people conversation And have are together. is, next that of should you about you Verizon deals power it mean controls? we deals. would the the that time a are Charter guess that entity the and what could are in would second And I come

Hans Vestberg

Tony first question. the I'll the... answer take let I'll

Anthony Skiadas

recurring USF up in other service is so Dave, the really -- fees MVNO are on left relationships other there. But revenue. also the Yes, look, other all what's sure. the revenues in and are and -- everything

Hans Vestberg

Yes.

So on They're seeing large first again, very to I treated combination us. But enterprises. MVNO of you. speculate of are like all, you're in front important relationships cannot whatever our

And to is the as as very both to together. have strategy the satisfied is and profitable many with have before. this top our are we connection what I we relationship And have network on built think build accretive us, the remember, we we of said and network. once

any So can no, on happen. comment I that combinations cannot

in we're position. good think a I

have most and best in network think I I resonates the with customers, the that important. We think that's market. And the

David Barden

share And if for that just Is flow increment specific I the there with in a us do X follow-up, taxes you Tony. cash could can in cash that more you've baked number?

Anthony Skiadas

gave we Dave, I gave so -- takes. you So the a and this puts year, and guide

guide. that We to expect I deliver delivered for manage on to our to guidance continue going XXXX. our we're So to on for and guidance us XXXX

Hans Vestberg

But is it higher a tax...

Anthony Skiadas

It is higher, give yes, but the... we're not going to

Hans Vestberg

other all mean, I No. the But with we away tower took manage of puts that takes. if being we this, we the the or when XXXX than and clearly, take you And midpoint are deal. equal better

business. help we in priorities, invest understand, you that to us confident our feel to continue will as capital with we, So

increased for years. dividend have We XX our consecutive

We have to now -- we're when a very on right X.XXx which to on debt consider leverage, repurchasing the is our great and team we're done close shares. X.Xx paid deal has the down our going

repurchases of me doing when board comes when that So put different will and happens. situation optionality in a that very it to the the

Operator

comes Frank The question of Raymond next from James. Louthan

Robert Palmisano

for Rob is on This Frank.

how with guys? as So can great. to build a how going you this you from faster And that you on attractive briefly the touched for Any the feeling in earlier, updates us share footprint is on to how opportunity opportunity be would you your here? would Do legacy expand but Fios bid assess you're you forward? about expect follow-up,

Hans Vestberg

been on The by have than product we more Fios, is XX resonating the years. the on Fios customers. So

at our October XX% now whatever. or that broadband XXX,XXX last increase of As in basically end we open-for-sales, the going this or year to outlined, we're in year. We strategy to going said

us. that pretty are We scaling is that's -- easy for

scale. to continue we so And

We see reasons. more opportunities for, X

purchasing power. First the all outlined of deploy mean we of in is necessity. today, better number strategy. will in broadband situation out can We two, is we a our broadband And fiber find also the cheaper. economical And these country that all, I

that can So Fios. is this on playing we of investment increase in on all that keep our return

feel So the about we good Fios.

will we cetera. out it a to where for good the rural in subsidy where bid, sense us, will opportunity building that we areas, think makes participate we On have maybe et for get

we're So sort are It's participate. the a but to states has out going from investment. it, think sense little will participate about there because makes been we return doing we fairly so it far of wherever that on

Operator

Sam The Paribas. of next question from comes McHugh BNP

Samuel McHugh

questions. Two

should headwinds of price-ups. promo On and the one. few wireless How a we and Number the service with through about tailwinds obviously XXXX? and revenue, course the phasing think of the takes puts these have you the

you EBITDA, enough inflection And should the support then they elaborate material Are confident in and secondly, we to Maybe point we the sales. at now be you could mentioned are. on be on on some of a business this this? AI-related can that how place EBITDA business where

Anthony Skiadas

Sam, of guide $X revenue, the XXXX. so I Sampath that shape. carry good very additional It's number into we as the as earlier, the of of service the billion, mentioned, implies, Sampath growth. said $XX based feel about on and earlier. on We executed a And midpoint pricing mentioned this about billion initiatives,

Sampath We also along in with and volumes. talked volume about talked profile business an consumer, about stable improving that,

the see to volumes side. We on great BXB continue

wireless grow. And continues access fixed to then

scale $X We you in the and a results to saw in the and continues there. base that quarter have revenue billion fourth FWA, of

half positive The of XXXX. back will prepaid. Sampath other revenue improving is that thing volumes result and turnaround towards that in the about the talked will And profile inflect here the

the to that prepaid. are So said seeking into mentioned, would promo headwinds in the Hans And and as offsetting and expect Hans a of we that towards end economics XXXX. we better headwind peak But as But ease obviously, we're P&Q. the said will the is year become very that, customer amortization, on XXXX. we tailwind the then a as mentioned, healthy, and of mentioned, Sampath balance

mobility I it revenue in continue terms actions and across outlined sustainable 'XX. for the broadband, and see positioning that in us Sampath to growth. think we are execution of And expect you both that

Hans Vestberg

the many Verizon ask On the grinding that AI of comment I last the net a would the XXX,XXX it. in the adds is wireless Verizon course, Business growth saw Business new we contributor, Group, even team think on the something to positive couple between I'm Kyle pressure that the the going one with all to XXX, But a but little were, done how wireless -- the whole I we successful cost think fixed takeouts you access with Group, then we year-over-year -- Group is have of had job, turning just every mean a XXX, doing, bit years, great access Business quarter, are keeping things. but I has onto wireless to of fourth say, secular. are the surprised I and quarter improvement, though by the fixed Connect if

I need it, that's work. optimistic to guys And doesn't terrific but job. say, Kyle wanted done So that a cautiously we can the -- say have that I'm to continue

Kyle Malady

question, won't Thank and the belabor thanks you, Hans, I for that. Sam.

is that helped booked we there. revenue booked think as that Connect was EBITDA I as That AI first small. the with our revenue we quarter far

first relentless spoke Hans opportunities factors our the have focus see, cost line. sequential impact. done with that. about. It's as little revenue good And the mainly we've did it's could quarter. a that growth that on to So job you if the well since and efficiencies as new has in And But had due finding team driving a

of growth fourth XXXX So had EBITDA. those of we've long of to first And in time, growth a continue year-over-year the had quarters X quarter in trends I for laid. given groundwork row And in we've time that the expect a sequential EBITDA. we've in the

the as -- are FWA, expectations Because say, of for turned now we much and them for the customers see about getting connectivity. business with talked us. product, really story that into news I for would comfortable, And customers, using what this option a that's good Hans primary more a have we certain

in growth We interest great and continue to the great product. see

of case, matter use large of sure they a we would first, fact, weren't as are. As this we primary lot who customers a were -- use a

We banks, retailers, et have have doing we big this. and cetera, going big

and think is Catch [ we And I call Copper then made an a you really that tap, market saw area this we with of can new and announcement the just this ]. we Brightspeed,

wireless modernize with lines fixed our help using into old have lines, copper that it kind to. to of FWA. low it bandwidth people who access we this network sell And replace can see place great it's and out there, a as we So

we And talked as private and wireless Connect. AI -- about

about So things feel our XXXX. we have board great of I lot into on trajectory and good a here,

Brady Connor

we time X for have Brad, question. more

Operator

from final will Venkateshwar of Kannan Your come Barclays. question

Kannan Venkateshwar

have maybe a but like so instance, the X on you And obviously account It the your drivers the grown consumer Tier growth, of segment negative. postpaid markets, side, lines side, on. on mentioned sounds couple is growth the for Latino and of still

to over the turn opportunity newer year? segments that positive an there these to is is account of with growth see that we'll some of start And you're something the So targeting? course that

about And over then a is us -- guys secondly, are you way impact volumes or I whole have on as may there a response overall this to immigration, on prior beyond? but for the understand course or of how the question, a industry thinking year to missed this the the as for

Hans Vestberg

we're position will But, I questions, think continue to in a those I regardless Kannan. you, offerings really our but Thank answer good to of, ask with Sampath. so. Sampath

Sowmyanarayan Sampath

Business very X.X between growth, side, It's million And market. we leverage that go our and the of X XXXX overall a wholesale similar Kannan, segment on market. up post to robust all segment a channel play half question resilient million the to expected is we that. retail pre in after aggressively. not in in to lines a It's but postpaid migration makes for to we think It's market almost on XXXX, grow and Consumer.

Despite we really value in last quarters, strong few there seeing our are lower been immigration performance yet has business. the in

well Walmart is working relationship as I think proposition, our as refreshed value well. with wireless very total expanded our value brands, distribution our

So grow environment, feel continue comfortable adds with for we in to and this can that. very we net

on question we account growth in saw growth, to Now your first account answer QX.

on But deep what relationships You the of see our are focused think we at is the building day, that. with I end customers.

offering of on our and way and, the start home want value connectivity at to offer with is mobility We on-the-go best the framework both we course, look and the you works connectivity. If products, side.

And savings foundation it some we of ] cloud give, more with gives our it's that TMPR relationship, our of products then that those on entertainment to products, you products. [ whether others protection start can't Perks, selling our that customers,

I And long-term to we see way think want our we So customers. with deepen growth in the relationship our that's business.

is, that X%, very much north You strong of in of growth course, and of growth higher you saw ARPA amortization. underlying than take when promo care

customers the important quality value and is We grow framework. of important who us, want but what network account to to growth our to offering profitable So in those. us is is

Brady Connor

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

Operator

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

You now disconnect. may

Verizon Communications (VZ) 24 Jan 252024 Q4 Earnings call transcript