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Verizon(VZ) - 2024 Q3 - Quarterly Results
VZVerizon(VZ)2024-10-22 11:00

Wireless Service Revenue - Total wireless service revenue for Q3 2024 was 19.8billion,a2.719.8 billion, a 2.7% increase year over year[1] - Verizon expects total wireless service revenue growth of 2.0% to 3.5% for 2024[14] - Wireless service revenue increased by 2.6% to 16,377 million from 15,965million[29]−Wirelessservicerevenueroseby2.915,965 million[29] - Wireless service revenue rose by 2.9% to 3,466 million from 3,367million[34]−Wirelessservicerevenueforthetotalwirelesssegmentgrewby2.73,367 million[34] - Wireless service revenue for the total wireless segment grew by 2.7% to 19,843 million from 19,330million[36]PostpaidandPrepaidConnections−RetailpostpaidphonenetadditionsforQ32024were239,000,withretailpostpaidnetadditionsof349,000[1]−Wirelessretailpostpaidconnectionsincreasedby1.419,330 million[36] Postpaid and Prepaid Connections - Retail postpaid phone net additions for Q3 2024 were 239,000, with retail postpaid net additions of 349,000[1] - Wireless retail postpaid connections increased by 1.4% to 94,005,000 from 92,704,000[29] - Wireless retail prepaid connections decreased by 5.7% to 20,206,000 from 21,420,000[29] - Wireless retail postpaid connections increased by 3.7% to 30,532,000 from 29,455,000[34] - Retail postpaid phone net additions were 239,000 compared to 100,000 in the previous year[36] Broadband and Fixed Wireless - Total broadband net additions for Q3 2024 were 389,000, marking the ninth consecutive quarter with over 375,000 additions[1] - Fixed wireless net additions for Q3 2024 were 363,000, reaching a base of nearly 4.2 million subscribers[1] - Total broadband connections grew to more than 11.9 million, a nearly 16% increase year over year[1] - Fixed wireless access (FWA) broadband connections surged by 52.2% to 2,498,000 from 1,641,000[29] - Total broadband connections grew by 11.0% to 9,762,000 from 8,792,000[29] - FWA broadband connections surged by 63.6% to 1,698,000 from 1,038,000[34] - Total broadband connections grew by 43.9% to 2,157,000 from 1,499,000[34] Financial Performance - Consolidated net income for Q3 2024 was 3.4 billion, down from 4.9billioninQ32023[3]−AdjustedEBITDAforQ32024was4.9 billion in Q3 2023[3] - Adjusted EBITDA for Q3 2024 was 12.5 billion, up from 12.2billioninQ32023[3]−EarningspershareforQ32024were12.2 billion in Q3 2023[3] - Earnings per share for Q3 2024 were 0.78, compared to 1.13inQ32023[4]−TotalOperatingRevenuesforQ32024were1.13 in Q3 2023[4] - Total Operating Revenues for Q3 2024 were 33.33 billion, showing a slight decrease of 0.02% compared to Q3 2023[22] - Net Income for Q3 2024 was 3.41billion,adecreaseof30.23.41 billion, a decrease of 30.2% compared to Q3 2023[22] - Consolidated Net Income for the 3 months ended 9/30/24 was 3,411 million, compared to 4,884millionforthesameperiodin2023[37]−ConsolidatedAdjustedEBITDAforthe12monthsended9/30/24was4,884 million for the same period in 2023[37] - Consolidated Adjusted EBITDA for the 12 months ended 9/30/24 was 48,542 million, up from 47,789millionforthe12monthsended12/31/23[38]−AdjustedEPSforthe3monthsended9/30/24was47,789 million for the 12 months ended 12/31/23[38] - Adjusted EPS for the 3 months ended 9/30/24 was 1.19, compared to 1.22forthesameperiodin2023[40]−FreeCashFlowforthe9monthsended9/30/24was1.22 for the same period in 2023[40] - Free Cash Flow for the 9 months ended 9/30/24 was 14,461 million, slightly down from 14,634millionforthesameperiodin2023[41]−Netincomedecreasedby14,634 million for the same period in 2023[41] - Net income decreased by 1.833 billion to 12.835billionforthe9monthsended9/30/24comparedtothesameperiodin2023[26]−Netcashprovidedbyoperatingactivitiesdecreasedby12.835 billion for the 9 months ended 9/30/24 compared to the same period in 2023[26] - Net cash provided by operating activities decreased by 2.318 billion to 26.480billionforthe9monthsended9/30/24[26]ExpensesandDebt−Selling,GeneralandAdministrativeExpensesforQ32024increasedby21.426.480 billion for the 9 months ended 9/30/24[26] Expenses and Debt - Selling, General and Administrative Expenses for Q3 2024 increased by 21.4% to 9.71 billion compared to Q3 2023[22] - Total Debt as of 9/30/24 was 150.64billion,slightlydownfrom150.64 billion, slightly down from 150.67 billion at the end of 2023[24] - Long-term Debt decreased by 8.82billionto8.82 billion to 128.88 billion as of 9/30/24 compared to 12/31/23[23] - Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio was 2.5x as of 9/30/24, down from 2.6x as of 12/31/23[39] - Total Debt as of 9/30/24 was 150,641million,comparedto150,641 million, compared to 150,674 million as of 12/31/23[39] - Severance charges for the 3 months ended 9/30/24 were 1,733million,comparedto1,733 million, compared to 237 million for the same period in 2023[37] Capital Expenditures and Cash Flow - Capital expenditures decreased by 2.145billionto2.145 billion to 12.019 billion for the 9 months ended 9/30/24[26] - Cash and Cash Equivalents increased by 2.92billionto2.92 billion to 4.99 billion as of 9/30/24 compared to 12/31/23[23] - Capital expenditures for the 9 months ended 9/30/24 were 12,019million,downfrom12,019 million, down from 14,164 million for the same period in 2023[41] Consumer Segment - Consumer segment operating revenues increased by 0.4% to 25.360billionforthe3monthsended9/30/24[27]−Consumersegmentwirelessequipmentrevenuesdecreasedby8.625.360 billion for the 3 months ended 9/30/24[27] - Consumer segment wireless equipment revenues decreased by 8.6% to 4.478 billion for the 3 months ended 9/30/24[27] - Consumer segment operating income increased by 0.8% to 7.604billionforthe3monthsended9/30/24[27]−Consumersegmentoperatingincomemarginremainedstableat30.07.604 billion for the 3 months ended 9/30/24[27] - Consumer segment operating income margin remained stable at 30.0% for the 3 months ended 9/30/24[27] - Consumer segment EBITDA increased by 1.8% to 11.015 billion for the 3 months ended 9/30/24[27] - Consumer segment EBITDA margin increased to 43.4% for the 3 months ended 9/30/24[27] - Consumer Segment EBITDA for the 9 months ended 9/30/24 was 32,694million,up3.132,694 million, up 3.1% year-over-year[42] - Consumer Segment EBITDA Margin for the 9 months ended 9/30/24 was 43.4%, up from 42.5% for the same period in 2023[42] Enterprise and Public Sector - Enterprise and Public Sector operating revenues decreased by 6.6% to 3,538 million from 3,787million[31]−Totaloperatingrevenuesfellby2.33,787 million[31] - Total operating revenues fell by 2.3% to 7,351 million from 7,527million[31]−SegmentEBITDAdecreasedby3.77,527 million[31] - Segment EBITDA decreased by 3.7% to 1,605 million from 1,666million[31]−SegmentEBITDAforthe3monthsended9/30/24was1,666 million[31] - Segment EBITDA for the 3 months ended 9/30/24 was 1,605 million, a decrease of 3.7% year over year[43] - Total operating revenues for the 3 months ended 9/30/24 were 7,351million,downfrom7,351 million, down from 7,527 million in 2023[43] - Segment EBITDA Margin for the 3 months ended 9/30/24 was 21.8%, slightly down from 22.1% in 2023[43] - For the 9 months ended 9/30/24, Operating Income was 1,464million,comparedto1,464 million, compared to 1,623 million in 2023[43] - Segment EBITDA for the 9 months ended 9/30/24 was 4,710million,adecreaseof4.84,710 million, a decrease of 4.8% year over year[43] - Total operating revenues for the 9 months ended 9/30/24 were 22,027 million, down from 22,504millionin2023[43]−SegmentEBITDAMarginforthe9monthsended9/30/24was21.422,504 million in 2023[43] - Segment EBITDA Margin for the 9 months ended 9/30/24 was 21.4%, down from 22.0% in 2023[43] ARPA and ARPU - Wireless retail postpaid ARPA rose by 4.2% to 139.06 from 133.47[30]−WirelessretailprepaidARPUdeclinedby3.7133.47[30] - Wireless retail prepaid ARPU declined by 3.7% to 30.70 from 31.87[30]−RetailpostpaidARPAincreasedby3.831.87[30] - Retail postpaid ARPA increased by 3.8% to 162.05 from 156.13[36]−RetailprepaidARPUdecreasedby3.7156.13[36] - Retail prepaid ARPU decreased by 3.7% to 30.70 from 31.87[36]FixedWirelessRevenue−FixedwirelessrevenueforQ32024was31.87[36] Fixed Wireless Revenue - Fixed wireless revenue for Q3 2024 was 562 million, up 215millionyearoveryear[1]−FWArevenueincreasedby62.0215 million year over year[1] - FWA revenue increased by 62.0% to 562 million from 347million[36]TotalWirelessRevenue−Totalwirelessrevenueincreasedby0.7347 million[36] Total Wireless Revenue - Total wireless revenue increased by 0.7% to 26,848 million from 26,650million[36]Property,Plant,andEquipment−Property,PlantandEquipment,Netdecreasedby26,650 million[36] Property, Plant, and Equipment - Property, Plant and Equipment, Net decreased by 782 million to 107.53billionasof9/30/24comparedto12/31/23[23]EmployeesandDividends−TotalEmployeesdecreasedby4,200to101,200asof9/30/24comparedto12/31/23[24]−QuarterlyCashDividendsDeclaredperCommonShareincreasedto107.53 billion as of 9/30/24 compared to 12/31/23[23] Employees and Dividends - Total Employees decreased by 4,200 to 101,200 as of 9/30/24 compared to 12/31/23[24] - Quarterly Cash Dividends Declared per Common Share increased to 0.6775 from 0.6650[24]OperatingIncomeandMargin−OperatingIncomeforthe3monthsended9/30/24was0.6650[24] Operating Income and Margin - Operating Income for the 3 months ended 9/30/24 was 565 million, compared to $539 million for the same period in 2023[43] - Operating Income Margin for the 3 months ended 9/30/24 improved to 7.7%, up from 7.2% in 2023[43] - Operating Income Margin for the 9 months ended 9/30/24 was 6.6%, down from 7.2% in 2023[43]