Verizon Communications Inc (STU:BAC)
€ 39.01 +0.26 (+0.67%) Market Cap: 162.64 Bil Enterprise Value: 310.16 Bil PE Ratio: 10.38 PB Ratio: 1.83 GF Score: 68/100

Q4 2024 Verizon Communications Inc. Earnings Call Transcript

Jan 24, 2025 / 01:30PM GMT
Release Date Price: €37.82 (+0.52%)

Key Points

Positve
  • Verizon Communications Inc (VZ) achieved a 3.1% growth in wireless service revenue and a 2.1% growth in adjusted EBITDA, both exceeding the midpoint of their guided ranges.
  • The company added nearly 2.5 million postpaid mobility and broadband subscribers in 2024, ending the year with an industry-leading total wireless service revenue of $20 billion.
  • Verizon Communications Inc (VZ) successfully scaled private networks, securing contracts with major clients like Xerox, Cummins, Inc, FIFA, and the US Air Force.
  • The company raised its dividend for the 18th consecutive year and continued to pay down debt, ending the year with a net unsecured debt to adjusted EBITDA ratio of 2.3 times.
  • Verizon Communications Inc (VZ) launched Verizon AI Connect, a strategic initiative to leverage existing assets for AI applications, indicating a strong position in the growing AI market.
Negative
  • Verizon Communications Inc (VZ) faced challenges with promo amortization, which is expected to peak in 2025, impacting the underlying wireless service revenue growth.
  • The company experienced secular pressure in business wireline revenues, which continues to be a challenge despite ongoing cost transformation initiatives.
  • Verizon Communications Inc (VZ) had to manage higher cash taxes, which put pressure on their financials, although they were able to maintain strong cash flow.
  • The company is facing a competitive market environment, particularly in the consumer segment, which requires continuous innovation and strategic pricing to maintain growth.
  • Verizon Communications Inc (VZ) is dealing with the impact of lower immigration rates, which affects the overall volume growth in the industry.
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. Brady Connor, Senior Vice President, Investor Relations.

Brady Connor
Verizon Communications Inc - Senior Vice President

Thanks, Brad. Good morning, and welcome to our fourth quarter 2024 earnings call and AI update. I'm Brady Connor. And on the call with me this morning are Hans Vestberg, our Chairman and Chief Executive Officer; and Tony Skiadas, our Chief Financial Officer. In addition, we have our Business Group CEO, Kyle Malady, who will be giving an update on our AI strategy; as well as our Consumer Group CEO, Sampath, who will also be joining us for Q&A.

Before we begin, I'd like to draw your attention to our safe harbor statement, which can be found at the start of the investor presentation posted on our Investor Relations website. Information in this presentation contains statements about expected

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