In This Article:
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Wireless Service Revenue Growth: Up 2.7%, at the high end of the guided range.
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Adjusted EBITDA: $12.6 billion, highest reported result ever, growing 4% year-over-year.
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Free Cash Flow: Increased by over $900 million from the prior year, totaling $3.6 billion.
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Adjusted EPS: $1.19, up 3.5% year-over-year.
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Consumer Postpaid Phone Net Losses: 356,000, impacted by recent pricing actions.
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Prepaid Net Adds: 137,000, best since the TracFone acquisition.
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Broadband Net Adds: 339,000, driven by Fios and fixed wireless access offerings.
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Business Phone Net Adds: 67,000, affected by pressure within federal government accounts.
Release Date: April 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Verizon Communications Inc (NYSE:VZ) reported its highest ever adjusted EBITDA of $12.6 billion, growing 4% year-over-year.
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Wireless service revenue increased by 2.7%, reaching the high end of the company's guided range.
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The company achieved a significant improvement in free cash flow, up over $900 million from the previous year.
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Verizon's prepaid net adds of 137,000 were the best since the TracFone acquisition, indicating strong performance in this segment.
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RootMetrics recognized Verizon as the best, fastest, and most reliable 5G network in the US, highlighting the company's network leadership.
Negative Points
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Verizon experienced elevated churn in postpaid phone net adds due to recent price increases and pressure from federal government accounts.
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The company reported consumer postpaid phone net losses of 356,000, reflecting the impact of recent pricing actions.
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There is uncertainty regarding the potential effects of tariffs on handsets and telecom equipment, which could impact consumer pricing and upgrades.
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Verizon's fixed wireless access product, while leading broadband growth, faces challenges in ramping up multi-dwelling unit solutions.
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The company noted that churn is expected to improve only by the second half of the year, indicating ongoing challenges in customer retention.
Q & A Highlights
Q: How might tariffs on handsets and telecom equipment affect Verizon's business, and what is the expected impact on upgrades and homes passed? A: Hans Vestberg, CEO, explained that tariffs are a moving target, but a small portion of their capital expenditures is exposed to tariffs. Verizon is working with suppliers to mitigate impacts, similar to their approach during COVID-19. On handsets, if tariffs increase significantly, Verizon does not plan to absorb these costs, which may affect consumers. The impact on upgrades is uncertain, but Verizon remains financially disciplined in its promotions.