Verizon Communications Inc. (VZ) Q4 2023 Earnings Call Transcript Summary

By / / Verizon

The following is a summary of the Verizon Communications Inc. (VZ) Q4 2023 Earnings Call Transcript:

Financial Performance:

  • Verizon posted wireless service revenue of $76.7 billion, reflecting a 3.2% increase from last year.
  • Verizon achieved an adjusted EBITDA of $47.8 billion and a strong free cash flow of $18.7 billion.
  • The company raised its dividend for the 17th consecutive year, maintaining a healthy payout ratio of around 59% from its free cash flow.
  • Projections for 2024 suggest a wireless service revenue growth of 2% to 3.5%.
  • The Q4 consolidated revenue was reported at $35.1 billion, indicating a decrease of 0.3% from last year.
  • The total wireless service revenue for Q4 was $19.4 billion, a 3.2% rise YoY.
  • The consolidated adjusted EBITDA for the quarter was $11.7 billion, falling by 0.6% compared to the prior year.
  • It was reported that the adjusted EPS was $1.08, resulting in a full year adjusted EPS of $4.71.

Business Progress:

  • Verizon launched myPlan in May 2023, attracting 13.1 million subscribers.
  • It carried out significant operational changes in 2023, which included a new regional distribution model and the introduction of fresh price plans and promotions.
  • In a partnership with HCLTech, Verizon Business is aiming to reduce customer service expense through post-sale implementation and customer support.
  • The company acquired more than 1.7 million broadband net adds in 2023 and surpassed 3 million fixed wireless access customers.
  • Verizon built private networks for large enterprises, emphasizing its leadership in revenue expansion.
  • In 2024, Verizon plans to expand into suburban and rural markets.
  • The quarterly result displayed strong financial momentum with consumer postpaid phone net adds totaling 318,000.
  • Verizon Business added 131,000 phone net adds in the past 10 quarters and expects the positive broadband subscriber momentum to continue in 2024.
  • The company’s future capital allocation priorities include business investment, maintaining dividends, and paying off debt. Share buybacks will be considered once the debt ratio reaches 2.25 times.
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