Verizon (VZ) Q1 2024 Earnings Conference

By / / Verizon

The following is a summary of the Verizon Communications Inc. (VZ) Q1 2024 Earnings Call Transcript:

Financial Performance:

  • Verizon reported a 3.3% year-over-year growth in Q1 2024 wireless service revenue.
  • The adjusted EBITDA rose 1.4% YoY to $12.1 billion.
  • The company’s free cash flow rose by 16%, nearing $400 million compared to Q1 2023, stating at $2.7 billion.
  • Overall, net unsecured debt improved YoY by $3.7 billion, concluding the quarter at $126 billion.
  • Verizon raised its quarterly dividends reflecting continued improvement in its payout ratio.
  • Significant increase in free cash flow targeted for Q2 and aims to maintain growth in service revenue throughout 2024.

Business Progress:

  • Verizon has documented growth in its consumer business, expecting the number of customers on ‘myPlan’ to double by the end of 2024.
  • As part of its C-band rollout, the company achieved significant milestones and completed a pension transaction to increase financial flexibility.
  • Deals were secured with Xerox and Cummins Inc for private networks, which underscores growth in this segment.
  • Fixed wireless access net adds appreciated, with 203,000 in the consumer sector and 151,000 in the business, consolidating a total of 354,000 for Q1 2024.
  • The broadband business expands continuously, serving over 11 million subscribers, an 18% increase YoY.
  • Continued AI investments driving 4.4% ARPA growth in Q1, planned expansion of ‘myPlan’ and addition of ‘Perks’.
  • An excellent quarter for fixed wireless access in the business sector with circa 400 net adds quarter-on-quarter.
  • Verizon has been investing in its ACP upfront work on transformation initiatives and advanced AI network compute storage, expecting to see a decrease in ACP as the year progresses.
  • Pilots initiated for millimeter wave MDU (multi-dwelling units) solutions, expecting commercial use in the latter part of 2024.
  • The company is optimistic about leveraging from emerging technologies and improved customer satisfaction for continued growth, with expectations of similar or lower churn rates in 2024.
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