VERIZON COMMUNICATIONS INC Q4 FY2024 earnings call

• Wildfires: Teams working to protect and restore service, network holding up strong. - Earnings: Successful year with 3.1% wireless service revenue growth, 2.1% adjusted EBITDA growth, added nearly 2.5 million postpaid mobility and broadband subscribers, ended with industry-leading quarter wireless service revenue of $20 billion. - Business transformation: Ended year with less than 100,000 employees, down close to 20,000 over three years. - AI strategy: Three-pronged strategy including enhance experiences and drive efficiencies, personalize products and solutions, connect to AI ecosystem with Verizon AI Connect. - Broadband strategy: Scaling fixed wireless access, Fios expansion, and MDU solution launch.

Wireless: Delivered 3.1% wireless service revenue growth, 568,000 postpaid phone net adds in Q4, 900,000 postpaid mobility net adds for the year, consumer postpaid phone net adds positive with and without second number offering, business postpaid phone net adds over 0.5 million, prepaid net adds (excluding SafeLink) positive for the year. Broadband: Added nearly 1.6 million subscribers, grew market share in 2024 led by fixed wireless access, ended with over 12.3 million broadband subscribers including nearly 4.6 million fixed wireless access subscribers and over $2.1 billion in fixed wireless access revenue. Revenue contribution: Wireless service revenue was a key component, with broadband also contributing significantly.

• Wireless service revenue: Expected to grow 2% - 2.8%, underlying growth nearly double guided range when excluding promo amortization. - Consolidated adjusted EBITDA: Expected to grow 2% - 3.5% compared to 2024. - Full year adjusted earnings per share: Flat to up 3%. - Capital spending: Expected $17.5 billion - $18.5 billion. - Free cash flow: Expected $17.5 billion - $18.5 billion. - Acquisition of Frontier: Process ongoing, expected to close by early 2026.

Q: Commentary on AI Connect opportunity and momentum in wireless and broadband.

A: Kyle discussed AI Connect TAM over $40B+ with over $1B funnel, Hans and Sampath talked about momentum in wireless and broadband due to product resonance, branding, and execution.

Q: Upgrade environment and EBITDA growth drivers.

A: Sampath said upgrade rate expected to improve from 2024 low, Tony talked about EBITDA growth drivers including service revenue growth, cost transformation, and cash flow drivers.

Q: Device protection reclassification, fixed wireless, and immigration.

A: Tony explained handset insurance reclassification, Hans and Sampath discussed fixed wireless growth and immigration growth expectations.

Q: Wireless service revenue, AI Connect pipeline, and competitive environment.

A: Hans and Kyle talked about wireless service revenue growth, AI Connect pipeline recognition, and competitive environment advantages.

Q: ARPA growth, AI asset leverage, and Fios expansion.

A: Sampath discussed ARPA growth drivers, Kyle talked about AI asset leverage, Hans talked about Fios expansion.

Q: Other revenue, Comcast-Charter combination, and cash taxes.

A: Tony explained other revenue, Hans talked about Comcast-Charter combination, Tony talked about cash taxes.

Q: Fios expansion and bid opportunity.

A: Hans talked about Fios expansion and bid participation.

Q: Service revenue phasing, Business Group EBITDA, and consumer account growth.

A: Tony talked about service revenue phasing, Hans and Kyle talked about Business Group EBITDA, Sampath talked about consumer account growth.