NYSE:VZ Verizon Communications Q3 2024 Pre Recorded Earnings Report $42.84 +0.08 (+0.19%) Closing price 08/1/2025 03:59 PM EasternExtended Trading$42.89 +0.05 (+0.12%) As of 08/1/2025 07:59 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. ProfileEarnings HistoryForecast Verizon Communications EPS ResultsActual EPS$1.19Consensus EPS $1.18Beat/MissBeat by +$0.01One Year Ago EPS$1.22Verizon Communications Revenue ResultsActual Revenue$33.30 billionExpected Revenue$33.42 billionBeat/MissMissed by -$120.34 millionYoY Revenue Growth+0.90%Verizon Communications Announcement DetailsQuarterQ3 2024 Pre RecordedDate10/22/2024TimeBefore Market OpensConference Call DateMonday, October 21, 2024Conference Call Time8:00PM ETConference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)SEC FilingEarnings HistoryCompany ProfilePowered by Verizon Communications Q3 2024 Pre Recorded Earnings Call TranscriptProvided by QuartrOctober 21, 2024 ShareLink copied to clipboard.Key Takeaways Record Q3 Adjusted EBITDA: Verizon reported $12.5 billion in adjusted EBITDA, the highest in its history, with wireless service revenue up 2.7% YoY and free cash flow of $6.1 billion, positioning the company to meet or exceed its 2024 guidance. Broadband Milestone Ahead of Schedule: The company reached nearly 4.2 million Fixed Wireless Access subscribers 15 months early and saw Fios Internet net adds of 43 thousand, underscoring strong demand and customer satisfaction. Strong Mobility Momentum: Postpaid phone net adds more than doubled to 239 thousand, consumer net adds turned positive, and prepaid net adds were positive for the first time since the Tracfone acquisition, driven by value-focused plans like MyPlan and MyHome. Strategic Network Investments: Verizon advanced its network with a pending Frontier acquisition, a 6,000-tower transaction, low/mid-band spectrum from U.S. Cellular, and new satellite partnerships to expand coverage and cost efficiencies. Upgrade Revenue and ACP Impact: Wireless equipment revenue fell over 10% YoY due to lower upgrade volumes, and the full-quarter end of the Affordable Connectivity Program weighed on prepaid revenue, dragging wireless service revenue growth by 100 basis points. AI Generated. May Contain Errors.Conference Call Audio Live Call not available Earnings Conference CallVerizon Communications Q3 2024 Pre Recorded00:00 / 00:00Speed:1x1.25x1.5x2xThere are 3 speakers on the call. Operator00:00:00Hello, and welcome to our Q3 2024 results discussion. I'm Brady Connor, and on this recording, you'll hear from our Chairman and Chief Executive Officer, Hans Vestberg as well as our Chief Financial Officer, Tony Schiadis. Before we begin, I'd like to draw your attention to our Safe Harbor statement, which can be found at the start of the earnings presentation posted on our Investor Relations website. Information in this presentation contains statements about expected future events and financial results that are forward looking and subject to risks and uncertainties. Discussions of factors that may affect future results is contained in Verizon's filings with the SEC, which are available on our Investor Relations website. Operator00:00:40This presentation contains certain non GAAP financial measures. Reconciliations of these non GAAP measures to the most directly comparable GAAP measures are included in the financial materials posted on our website. A detailed overview of our Q3 results and other materials related to this discussion was posted this morning to our Investor Relations website. Additionally, we hope you'll join us for a webcast of our sell side analyst meeting for a strategic broadband update that starts at 9 a. M. Operator00:01:07Eastern Time this morning, October 22. With that, I'll turn it over to Hans. Speaker 100:01:13Thank you, Brady. Good morning, and welcome to Verizon's 3rd quarter earnings update. Before we dive into our performance in the quarter, we must address the devastating impact of the Hurricanes Helena and Milton on communities throughout the southern parts of United States. At Verizon, we always run through a crisis. Our teams acted quickly to assist all the affected communities, and we're deeply invested in helping everybody come back stronger. Speaker 100:01:42Our superior network made a real difference during these events. Our network infrastructure was resilient and delivered for customers and the first responders who really relied on it. Now let's dive into our Q3 performance. The actions we have taken since early 2023 are driving improvements across all our businesses. In the Q3, we delivered sequential and year over year growth in wireless service revenue and adjusted EBITDA, and we had a strong free cash flow of US6 $1,000,000,000 Wireless service revenue was up 2.7 percent over last year. Speaker 100:02:19Our quarterly adjusted EBITDA of US12.5 billion dollars is the highest we have ever reported and the highest in the telecom industry by far. With these results, we are confident that we will not just deliver on our 2024 financial guidance, but the wireless service revenue and adjusted EBITDA growth will come in at or above the midpoint of our guided range. Our momentum continues to build from a strong operational performance across mobility, broadband and private networks. While bringing choice and value to our customers, we signed strategic M and A and implemented cost efficiencies to make Verizon stronger. I'm proud of our team and excited about how we're using our scale and industry leading position to bring value, services and experience to our customers every day. Speaker 100:03:16We're deepening customer relationships and offering critical services that earn us a high return on capital. And we delivered our 18th consecutive annual dividend increase. In the Q3, we brought more C band and network capacity to states across the country. As always, our network is the foundation for our success in mobility, broadband and private networks. As Brady mentioned, following the earnings call, we will be providing an update on our broadband strategy. Speaker 100:03:47We will share our vision for the future of broadband, including ambitious new targets that reflect the strong demand that we're seeing across both fixed wireless and fiber offerings. Now let's discuss how our superior network and our strategy are driving results across our business. In mobility, we more than doubled postpaid phone net adds over last year with 239,000. Importantly, we also delivered positive consumer postpaid net adds in the quarter, both with and without our second number offering. We are focused on delivering choice, value and simplicity to our customers through MyPlan, MyHome and new business offerings. Speaker 100:04:29Our strategy of giving our customers more options than other wireless providers continues to drive positive momentum in both postpaid phone, gross adds and churn. We have applied the same operational rigor and commitment to our prepaid brands, and results are very encouraging. For the first time since the acquisition of Tracfone, we had positive prepaid net adds for the quarter, excluding SafeLink. We expect our prepaid business to continue improving quarter by quarter as we further refine our offerings and execution. In broadband, we ended the quarter with nearly 4,200,000 Fixed Wireless Access subscribers alongside a strong Fios growth. Speaker 100:05:14The continued success of our Fixed Wireless offering allowed us to reach our goal of 4000000 to 5000000 Fixed Wireless Access subscribers with 15 months ahead of our original plan. This confirms a strong demand for our offering and its high level of customer satisfaction. In Private Networks, we see a strong momentum and exciting opportunities. We're expanding our sports partnership through an agreement with FIFA, where we will provide extensive network services for the 2026 Men's World Cup and serve as a tournament supporter of the 2027 Women's World Cup. We also expanded our partnership with the Madison Square Garden family of companies to become the official wireless provider for all its venues, including Madison Square Garden and The Sphere. Speaker 100:06:03We will be providing a more detailed update on capital allocation at our analyst meeting this morning. But our capital allocation priorities remain to invest in the business, support our dividend and pay down debt. We executed on all three during the quarter, including our pending acquisition of Frontier Communications, a tower transaction with Vertical Bridge, a Spectrum acquisition from U. S. Cellular and a new satellite partnership and organization improvements. Speaker 100:06:35All will enhance our capabilities, help us serve our customers even better and support financial growth. Let me walk you through each of these transactions. First, our pending Frontier acquisition will expand our total addressable market in mobility and broadband. Post close, Verizon will stand unmatched as the only company with the ability to serve both fixed wireless access and fiber at scale. 2nd, we announced a transaction with Vertical Bridge involving more than 6,000 towers deepening a relationship with a valued strategic partner. Speaker 100:07:11In addition to the cash proceeds, we will lease back capacity at a very favorable terms providing long term cost stability. 3rd, we're acquiring valuable low and mid band spectrum from U. S. Cellular, which will enhance our spectrum portfolio and expand our network capacity when the deal closes. 4th, we have further expanded our satellite capabilities, adding a partnership with Skylo on top of our ongoing work with ASD SpaceMobile. Speaker 100:07:42By using satellite technology, we're extending our network reach to previously underserved areas, opening up new market opportunities and reinforcing our commitment to connectivity. And finally, we continue to make progress on costs. Our voluntary separation program allowed employees to make informed decisions about their futures while helping us manage cost as we transform our workforce and adapt to new technologies. Overall, I'm very pleased with our continued improvement in operational and financial execution. Now, Tony will talk about our Q3 result in greater detail. Speaker 100:08:22Thanks, Hans, and good morning. Our Q3 results demonstrate our continued focus on operational excellence Speaker 200:08:28and reflect our ability to deliver both customer and financial growth. With our differentiated offerings and value proposition, we're continuing to drive year over year improvements in postpaid phone net ads and broadband connections, all while maintaining our discipline around promotions. Starting with our consumer results, postpaid phone net ads were 81,000 for the 3rd quarter. This compares to a prior year net loss of 51,000. The year over year improvement was driven by continued gross ad growth of about 6% in the period. Speaker 200:08:59This marks the 7th consecutive quarter of year over year postpaid phone gross ad growth. Additionally, phone churn improved by 1 basis point compared to last year. For the full year, we continue to expect positive consumer postpaid phone net adds both with and without the impact of our 2nd number offering. America's Best Network together with the benefits of MyPlan continues to be a differentiator for us. We offer customers a compelling value proposition with one of a kind perks. Speaker 200:09:26Moving to prepaid, the team is successfully executing on its strategy and improving the trajectory of the business, delivering 80,000 net ads excluding SafeLink. Our core prepaid brands, Visible, Total Wireless and Straight Talk continue to perform well driving a total year over year improvement of over 300,000 net adds when excluding SafeLink and the related ACP impacts. With ACP pressures now firmly behind us, we're confident that the rigor being applied to our prepaid operations will position us well going into 2025. Moving to business results, postpaid Phonet ads were 158,000 in the Q3, representing another quarter of solid growth. We saw sustained buying activity throughout the quarter and had strong contributions from small and medium businesses, enterprise and public sector customers. Speaker 200:10:16Businesses continue to trust Verizon for their mission critical functions over any other provider. Shifting to broadband, our total net additions were 389,000 for the quarter. Fixed wireless access once again had a strong quarter contributing 363,000 net adds. Our FWA subscriber base now stands at nearly 4,200,000 customers. As Hans mentioned earlier, we are pleased to have reached our FWA customer target 15 months ahead of schedule. Speaker 200:10:44This reflects the popularity of fixed wireless access and customer demand for high quality broadband services. Fios Internet net adds totaled 43,000 for the quarter, an improvement of 15,000 sequentially. We saw momentum build throughout the quarter as we further distanced ourselves from the effects of the ACP shutdown. In total, we now have over 11,900,000 broadband subscribers, a nearly 16% increase year over year. We continue to make good progress in growing our customer base and look forward to sharing additional broadband updates at our analyst event later this morning. Speaker 200:11:18Moving to the financials, our sustained focus on profitable growth contributed to a strong quarter. We are on track to meet our 2024 guidance with both wireless service revenue and adjusted EBITDA growth trending at or above the midpoint of our guided ranges. Consolidated revenue for the Q3 totaled $33,300,000,000 essentially flat compared to the prior year. Service and other revenue growth of 1.7% was offset by declines in wireless equipment revenue as total upgrade volume was down over 10% year over year. Wireless service revenue was $19,800,000,000 representing year over year growth of 2.7% or $513,000,000 Sequentially, wireless service revenue grew by $70,000,000 in spite of a full quarter's impact from the end of ACP as well as headwinds from promo amortization. Speaker 200:12:10Looking ahead to the Q4, we expect sequential growth in wireless service revenues to be driven by volume improvements, increased contributions from FWA, and our recently communicated pricing actions. This will partially be offset by the continued promo amortization headwind. Consumer postpaid ARPA continues to grow at strong rates with the Q3 above $139 and up 4.2 percent year over year. Targeted pricing actions, FWA expansion and the further adoption of MyPlan are all contributing to ARPA growth. We have more than doubled our MyPlan subscriber base since the end of last year, which represents over 37% of the consumer postpaid phone base. Speaker 200:12:51Additionally, PERC revenue continues to provide a notable benefit. We continue to grow fixed wireless access into a long term sustainable business. Total FWA revenue, which is included in wireless service revenue, was $562,000,000 for the quarter. That was up $215,000,000 versus the prior year period. FWA is on pace to generate more than $2,000,000,000 in revenue for us this year. Speaker 200:13:16Prepaid revenue for the quarter declined by over $40,000,000 sequentially with the Q3 having a full quarter's impact of the ACP shutdown. This overall service revenue impact continues to be within our previously provided range for 2024. Prepaid revenue represented a 100 basis point drag on total wireless service revenue growth for the Q3. However, the actions we have taken to improve our prepaid customer results are working, positioning us for better revenue performance going forward. Consolidated adjusted EBITDA for the Q3 totaled $12,500,000,000 an increase of 2.1% year over year. Speaker 200:13:54This is the 2nd quarter in a row in which adjusted EBITDA has grown faster than service and other revenue. As Hans mentioned, this also represents the highest quarterly adjusted EBITDA we've ever reported. Continued wireless service revenue growth and lower upgrade volumes helped to drive this result. Upgrades in the Q3 were down over 10% year over year. We continue to be disciplined with our promotional spend, maintaining our targeted and segmented approach to customer retention. Speaker 200:14:23We continue to see healthy and consistent payment trends with bad debt levels in line with expectations and our high quality customer base remains resilient. As we previously disclosed, we are implementing our voluntary separation program. Over 50% of the approximately 4,800 impacted employees have already exited the business. The savings from the program are expected to begin to materialize in our 4th quarter results and beyond. Adjusted EPS in the quarter was $1.19 down 2.5% compared to the prior year period. Speaker 200:14:57Growth in adjusted EBITDA was offset by below the line items including higher interest expense. However, on a sequential basis, interest expense decreased quarter over quarter as a result of lower interest rates and lower average debt levels. Cash flow from operating activities totaled $26,500,000,000 for the 9 months ended September 30, 2024 compared to $28,800,000,000 in the prior year period. The results reflect over $750,000,000 of higher adjusted EBITDA. This was offset by higher cash taxes of approximately $2,500,000,000 as well as higher interest expense primarily driven by the decrease in capitalized interest and higher interest rates. Speaker 200:15:39Year to date capital spending was $12,000,000,000 This was approximately $2,100,000,000 less than the same period last year. Our full year guidance for CapEx remains unchanged at a range of $17,000,000,000 to $17,500,000,000 and back to business as usual levels of capital intensity. The net result of cash flow from operations and capital spending is free cash flow of $14,500,000,000 for the 1st 3 quarters of 2024, largely in line with the prior year period. For the Q4, there are several items to keep in mind around cash flow. First, upon the closing of our Tower transaction, we expect to receive approximately $2,800,000,000 in proceeds. Speaker 200:16:19This will be partially offset by higher cash taxes and interest expense as well as the anticipated impact from severance payments related to our voluntary separation program. Net unsecured debt at the end of the quarter was $121,400,000,000 an improvement of over $1,400,000,000 compared to the previous quarter and more than $800,000,000,000 lower year over year. Our net unsecured debt to consolidated adjusted EBITDA ratio was 2.5 times flat compared to the prior quarter. Bottom line, the cash generation of the business is strong and we are on track to pay down debt as planned. In closing, our Q3 performance continued the ongoing trend of delivering strong operational performance and financial results. Speaker 200:17:03We achieved positive postpaid phone net adds in consumer, which positions us well to be net add positive for the full year. We reached our goal for fixed wireless access subscribers more than a year ahead of schedule, and we did it all in a financially disciplined manner consistent with our overall strategy. We are now focused on finishing the year strong, setting us up for success in 2025. With that, I will turn it back to Hans for his closing comments. Speaker 100:17:31Thank you, Tony. We're well positioned for a great Q4 and to carry our momentum into 2025. Our offerings from My Plan to My Home are resonating with our customers and driving deeper engagements. Our brand refresh has been successful and tells a compelling story about the central role our services play in customers' lives. Looking to the end of the year and into 2025, our priorities are: 1st, deliver on our 2024 financial guidance with continued focus on wireless service revenue, adjusted EBITDA growth and strong free cash flow. Speaker 100:18:10We will sustain momentum in mobility and broadband. As we expand our 5 gs ultra wideband network and scale our private networks business, we're opening up new opportunities for growth and innovation. The rapid adoption of fixed wireless offering and the continued strength of Fios demonstrate the effectiveness of our network centric strategy. And we will execute on our capital allocation priorities by investing in the business, supporting our dividend and paying down debt. At the same time, we're scaling AI to improve employee and customer experiences as well as unlocking new revenue streams. Speaker 100:18:48I'm more excited than ever about Verizon's prospects. Our superior network, coupled with our customer centric innovations and strategic investments, position us uniquely in this market. We're connecting people, empowering them to do more, experience more and achieve more. The transformative moves we made this year from our pending Frontier acquisition to our expanded partnership in private networks are setting the stage for sustained growth and value creation. I'm looking forward to all of you joining us at 9 a. Speaker 100:19:25M. Eastern Time for our broadband updates and Q and A.Read morePowered by Earnings DocumentsPress Release(8-K) Verizon Communications Earnings HeadlinesIs Former Dividend Aristocrat AT&T a Buy After Q2 Earnings? (VZ)AT&T lost its status as a Dividend Aristocrat in 2022. But the legacy telecom company has produced strong gains in 2025 and its forward guidance is intriguing.July 23, 2025 | marketbeat.comDo Wall Street Analysts Like Verizon Communications Stock?August 1 at 6:55 PM | msn.comMarket Crash Warning: How to Protect Your Wealth Before August 12thChina tariffs hit August 12—and experts warn a market meltdown may follow. A free guide from American Alternative Assets reveals 3 urgent moves to protect your portfolio, plus the #1 asset class thriving during crises (hint: it’s not stocks or bonds). | American Alternative (Ad)Verizon Communications Inc. (VZ) Adds 293K Broadband Users in Q2, Eyes 9M Fixed Wireless by 2028August 1 at 6:55 PM | finance.yahoo.com2 High-Yield Dow Jones Stocks to Buy in AugustAugust 1 at 4:05 AM | fool.com4VZ : Verizon Communications Unusual Options Activity For July 31August 1 at 4:00 AM | benzinga.comSee More Verizon Communications Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Verizon Communications? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Verizon Communications and other key companies, straight to your email. Email Address About Verizon CommunicationsVerizon Communications (NYSE:VZ), through its subsidiaries, engages in the provision of communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. It operates in two segments, Verizon Consumer Group (Consumer) and Verizon Business Group (Business). The Consumer segment provides wireless services across the wireless networks in the United States under the Verizon and TracFone brands and through wholesale and other arrangements; and fixed wireless access (FWA) broadband through its wireless networks, as well as related equipment and devices, such as smartphones, tablets, smart watches, and other wireless-enabled connected devices. The segment also offers wireline services in the Mid-Atlantic and Northeastern United States, as well as Washington D.C. through its fiber-optic network, Verizon Fios product portfolio, and a copper-based network. The Business segment provides wireless and wireline communications services and products, including FWA broadband, data, video and conferencing, corporate networking, security and managed network, local and long-distance voice, and network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. 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There are 3 speakers on the call. Operator00:00:00Hello, and welcome to our Q3 2024 results discussion. I'm Brady Connor, and on this recording, you'll hear from our Chairman and Chief Executive Officer, Hans Vestberg as well as our Chief Financial Officer, Tony Schiadis. Before we begin, I'd like to draw your attention to our Safe Harbor statement, which can be found at the start of the earnings presentation posted on our Investor Relations website. Information in this presentation contains statements about expected future events and financial results that are forward looking and subject to risks and uncertainties. Discussions of factors that may affect future results is contained in Verizon's filings with the SEC, which are available on our Investor Relations website. Operator00:00:40This presentation contains certain non GAAP financial measures. Reconciliations of these non GAAP measures to the most directly comparable GAAP measures are included in the financial materials posted on our website. A detailed overview of our Q3 results and other materials related to this discussion was posted this morning to our Investor Relations website. Additionally, we hope you'll join us for a webcast of our sell side analyst meeting for a strategic broadband update that starts at 9 a. M. Operator00:01:07Eastern Time this morning, October 22. With that, I'll turn it over to Hans. Speaker 100:01:13Thank you, Brady. Good morning, and welcome to Verizon's 3rd quarter earnings update. Before we dive into our performance in the quarter, we must address the devastating impact of the Hurricanes Helena and Milton on communities throughout the southern parts of United States. At Verizon, we always run through a crisis. Our teams acted quickly to assist all the affected communities, and we're deeply invested in helping everybody come back stronger. Speaker 100:01:42Our superior network made a real difference during these events. Our network infrastructure was resilient and delivered for customers and the first responders who really relied on it. Now let's dive into our Q3 performance. The actions we have taken since early 2023 are driving improvements across all our businesses. In the Q3, we delivered sequential and year over year growth in wireless service revenue and adjusted EBITDA, and we had a strong free cash flow of US6 $1,000,000,000 Wireless service revenue was up 2.7 percent over last year. Speaker 100:02:19Our quarterly adjusted EBITDA of US12.5 billion dollars is the highest we have ever reported and the highest in the telecom industry by far. With these results, we are confident that we will not just deliver on our 2024 financial guidance, but the wireless service revenue and adjusted EBITDA growth will come in at or above the midpoint of our guided range. Our momentum continues to build from a strong operational performance across mobility, broadband and private networks. While bringing choice and value to our customers, we signed strategic M and A and implemented cost efficiencies to make Verizon stronger. I'm proud of our team and excited about how we're using our scale and industry leading position to bring value, services and experience to our customers every day. Speaker 100:03:16We're deepening customer relationships and offering critical services that earn us a high return on capital. And we delivered our 18th consecutive annual dividend increase. In the Q3, we brought more C band and network capacity to states across the country. As always, our network is the foundation for our success in mobility, broadband and private networks. As Brady mentioned, following the earnings call, we will be providing an update on our broadband strategy. Speaker 100:03:47We will share our vision for the future of broadband, including ambitious new targets that reflect the strong demand that we're seeing across both fixed wireless and fiber offerings. Now let's discuss how our superior network and our strategy are driving results across our business. In mobility, we more than doubled postpaid phone net adds over last year with 239,000. Importantly, we also delivered positive consumer postpaid net adds in the quarter, both with and without our second number offering. We are focused on delivering choice, value and simplicity to our customers through MyPlan, MyHome and new business offerings. Speaker 100:04:29Our strategy of giving our customers more options than other wireless providers continues to drive positive momentum in both postpaid phone, gross adds and churn. We have applied the same operational rigor and commitment to our prepaid brands, and results are very encouraging. For the first time since the acquisition of Tracfone, we had positive prepaid net adds for the quarter, excluding SafeLink. We expect our prepaid business to continue improving quarter by quarter as we further refine our offerings and execution. In broadband, we ended the quarter with nearly 4,200,000 Fixed Wireless Access subscribers alongside a strong Fios growth. Speaker 100:05:14The continued success of our Fixed Wireless offering allowed us to reach our goal of 4000000 to 5000000 Fixed Wireless Access subscribers with 15 months ahead of our original plan. This confirms a strong demand for our offering and its high level of customer satisfaction. In Private Networks, we see a strong momentum and exciting opportunities. We're expanding our sports partnership through an agreement with FIFA, where we will provide extensive network services for the 2026 Men's World Cup and serve as a tournament supporter of the 2027 Women's World Cup. We also expanded our partnership with the Madison Square Garden family of companies to become the official wireless provider for all its venues, including Madison Square Garden and The Sphere. Speaker 100:06:03We will be providing a more detailed update on capital allocation at our analyst meeting this morning. But our capital allocation priorities remain to invest in the business, support our dividend and pay down debt. We executed on all three during the quarter, including our pending acquisition of Frontier Communications, a tower transaction with Vertical Bridge, a Spectrum acquisition from U. S. Cellular and a new satellite partnership and organization improvements. Speaker 100:06:35All will enhance our capabilities, help us serve our customers even better and support financial growth. Let me walk you through each of these transactions. First, our pending Frontier acquisition will expand our total addressable market in mobility and broadband. Post close, Verizon will stand unmatched as the only company with the ability to serve both fixed wireless access and fiber at scale. 2nd, we announced a transaction with Vertical Bridge involving more than 6,000 towers deepening a relationship with a valued strategic partner. Speaker 100:07:11In addition to the cash proceeds, we will lease back capacity at a very favorable terms providing long term cost stability. 3rd, we're acquiring valuable low and mid band spectrum from U. S. Cellular, which will enhance our spectrum portfolio and expand our network capacity when the deal closes. 4th, we have further expanded our satellite capabilities, adding a partnership with Skylo on top of our ongoing work with ASD SpaceMobile. Speaker 100:07:42By using satellite technology, we're extending our network reach to previously underserved areas, opening up new market opportunities and reinforcing our commitment to connectivity. And finally, we continue to make progress on costs. Our voluntary separation program allowed employees to make informed decisions about their futures while helping us manage cost as we transform our workforce and adapt to new technologies. Overall, I'm very pleased with our continued improvement in operational and financial execution. Now, Tony will talk about our Q3 result in greater detail. Speaker 100:08:22Thanks, Hans, and good morning. Our Q3 results demonstrate our continued focus on operational excellence Speaker 200:08:28and reflect our ability to deliver both customer and financial growth. With our differentiated offerings and value proposition, we're continuing to drive year over year improvements in postpaid phone net ads and broadband connections, all while maintaining our discipline around promotions. Starting with our consumer results, postpaid phone net ads were 81,000 for the 3rd quarter. This compares to a prior year net loss of 51,000. The year over year improvement was driven by continued gross ad growth of about 6% in the period. Speaker 200:08:59This marks the 7th consecutive quarter of year over year postpaid phone gross ad growth. Additionally, phone churn improved by 1 basis point compared to last year. For the full year, we continue to expect positive consumer postpaid phone net adds both with and without the impact of our 2nd number offering. America's Best Network together with the benefits of MyPlan continues to be a differentiator for us. We offer customers a compelling value proposition with one of a kind perks. Speaker 200:09:26Moving to prepaid, the team is successfully executing on its strategy and improving the trajectory of the business, delivering 80,000 net ads excluding SafeLink. Our core prepaid brands, Visible, Total Wireless and Straight Talk continue to perform well driving a total year over year improvement of over 300,000 net adds when excluding SafeLink and the related ACP impacts. With ACP pressures now firmly behind us, we're confident that the rigor being applied to our prepaid operations will position us well going into 2025. Moving to business results, postpaid Phonet ads were 158,000 in the Q3, representing another quarter of solid growth. We saw sustained buying activity throughout the quarter and had strong contributions from small and medium businesses, enterprise and public sector customers. Speaker 200:10:16Businesses continue to trust Verizon for their mission critical functions over any other provider. Shifting to broadband, our total net additions were 389,000 for the quarter. Fixed wireless access once again had a strong quarter contributing 363,000 net adds. Our FWA subscriber base now stands at nearly 4,200,000 customers. As Hans mentioned earlier, we are pleased to have reached our FWA customer target 15 months ahead of schedule. Speaker 200:10:44This reflects the popularity of fixed wireless access and customer demand for high quality broadband services. Fios Internet net adds totaled 43,000 for the quarter, an improvement of 15,000 sequentially. We saw momentum build throughout the quarter as we further distanced ourselves from the effects of the ACP shutdown. In total, we now have over 11,900,000 broadband subscribers, a nearly 16% increase year over year. We continue to make good progress in growing our customer base and look forward to sharing additional broadband updates at our analyst event later this morning. Speaker 200:11:18Moving to the financials, our sustained focus on profitable growth contributed to a strong quarter. We are on track to meet our 2024 guidance with both wireless service revenue and adjusted EBITDA growth trending at or above the midpoint of our guided ranges. Consolidated revenue for the Q3 totaled $33,300,000,000 essentially flat compared to the prior year. Service and other revenue growth of 1.7% was offset by declines in wireless equipment revenue as total upgrade volume was down over 10% year over year. Wireless service revenue was $19,800,000,000 representing year over year growth of 2.7% or $513,000,000 Sequentially, wireless service revenue grew by $70,000,000 in spite of a full quarter's impact from the end of ACP as well as headwinds from promo amortization. Speaker 200:12:10Looking ahead to the Q4, we expect sequential growth in wireless service revenues to be driven by volume improvements, increased contributions from FWA, and our recently communicated pricing actions. This will partially be offset by the continued promo amortization headwind. Consumer postpaid ARPA continues to grow at strong rates with the Q3 above $139 and up 4.2 percent year over year. Targeted pricing actions, FWA expansion and the further adoption of MyPlan are all contributing to ARPA growth. We have more than doubled our MyPlan subscriber base since the end of last year, which represents over 37% of the consumer postpaid phone base. Speaker 200:12:51Additionally, PERC revenue continues to provide a notable benefit. We continue to grow fixed wireless access into a long term sustainable business. Total FWA revenue, which is included in wireless service revenue, was $562,000,000 for the quarter. That was up $215,000,000 versus the prior year period. FWA is on pace to generate more than $2,000,000,000 in revenue for us this year. Speaker 200:13:16Prepaid revenue for the quarter declined by over $40,000,000 sequentially with the Q3 having a full quarter's impact of the ACP shutdown. This overall service revenue impact continues to be within our previously provided range for 2024. Prepaid revenue represented a 100 basis point drag on total wireless service revenue growth for the Q3. However, the actions we have taken to improve our prepaid customer results are working, positioning us for better revenue performance going forward. Consolidated adjusted EBITDA for the Q3 totaled $12,500,000,000 an increase of 2.1% year over year. Speaker 200:13:54This is the 2nd quarter in a row in which adjusted EBITDA has grown faster than service and other revenue. As Hans mentioned, this also represents the highest quarterly adjusted EBITDA we've ever reported. Continued wireless service revenue growth and lower upgrade volumes helped to drive this result. Upgrades in the Q3 were down over 10% year over year. We continue to be disciplined with our promotional spend, maintaining our targeted and segmented approach to customer retention. Speaker 200:14:23We continue to see healthy and consistent payment trends with bad debt levels in line with expectations and our high quality customer base remains resilient. As we previously disclosed, we are implementing our voluntary separation program. Over 50% of the approximately 4,800 impacted employees have already exited the business. The savings from the program are expected to begin to materialize in our 4th quarter results and beyond. Adjusted EPS in the quarter was $1.19 down 2.5% compared to the prior year period. Speaker 200:14:57Growth in adjusted EBITDA was offset by below the line items including higher interest expense. However, on a sequential basis, interest expense decreased quarter over quarter as a result of lower interest rates and lower average debt levels. Cash flow from operating activities totaled $26,500,000,000 for the 9 months ended September 30, 2024 compared to $28,800,000,000 in the prior year period. The results reflect over $750,000,000 of higher adjusted EBITDA. This was offset by higher cash taxes of approximately $2,500,000,000 as well as higher interest expense primarily driven by the decrease in capitalized interest and higher interest rates. Speaker 200:15:39Year to date capital spending was $12,000,000,000 This was approximately $2,100,000,000 less than the same period last year. Our full year guidance for CapEx remains unchanged at a range of $17,000,000,000 to $17,500,000,000 and back to business as usual levels of capital intensity. The net result of cash flow from operations and capital spending is free cash flow of $14,500,000,000 for the 1st 3 quarters of 2024, largely in line with the prior year period. For the Q4, there are several items to keep in mind around cash flow. First, upon the closing of our Tower transaction, we expect to receive approximately $2,800,000,000 in proceeds. Speaker 200:16:19This will be partially offset by higher cash taxes and interest expense as well as the anticipated impact from severance payments related to our voluntary separation program. Net unsecured debt at the end of the quarter was $121,400,000,000 an improvement of over $1,400,000,000 compared to the previous quarter and more than $800,000,000,000 lower year over year. Our net unsecured debt to consolidated adjusted EBITDA ratio was 2.5 times flat compared to the prior quarter. Bottom line, the cash generation of the business is strong and we are on track to pay down debt as planned. In closing, our Q3 performance continued the ongoing trend of delivering strong operational performance and financial results. Speaker 200:17:03We achieved positive postpaid phone net adds in consumer, which positions us well to be net add positive for the full year. We reached our goal for fixed wireless access subscribers more than a year ahead of schedule, and we did it all in a financially disciplined manner consistent with our overall strategy. We are now focused on finishing the year strong, setting us up for success in 2025. With that, I will turn it back to Hans for his closing comments. Speaker 100:17:31Thank you, Tony. We're well positioned for a great Q4 and to carry our momentum into 2025. Our offerings from My Plan to My Home are resonating with our customers and driving deeper engagements. Our brand refresh has been successful and tells a compelling story about the central role our services play in customers' lives. Looking to the end of the year and into 2025, our priorities are: 1st, deliver on our 2024 financial guidance with continued focus on wireless service revenue, adjusted EBITDA growth and strong free cash flow. Speaker 100:18:10We will sustain momentum in mobility and broadband. As we expand our 5 gs ultra wideband network and scale our private networks business, we're opening up new opportunities for growth and innovation. The rapid adoption of fixed wireless offering and the continued strength of Fios demonstrate the effectiveness of our network centric strategy. And we will execute on our capital allocation priorities by investing in the business, supporting our dividend and paying down debt. At the same time, we're scaling AI to improve employee and customer experiences as well as unlocking new revenue streams. Speaker 100:18:48I'm more excited than ever about Verizon's prospects. Our superior network, coupled with our customer centric innovations and strategic investments, position us uniquely in this market. We're connecting people, empowering them to do more, experience more and achieve more. The transformative moves we made this year from our pending Frontier acquisition to our expanded partnership in private networks are setting the stage for sustained growth and value creation. I'm looking forward to all of you joining us at 9 a. Speaker 100:19:25M. Eastern Time for our broadband updates and Q and A.Read morePowered by