KeyBanc analyst Brandon Nispel expects the wireless carrier to beat rivals Verizon and T-Mobile in the race for convergence. ...

December 22, 2025 11:00 AM GMT The robots are coming. Happy Holidays humans! AJ Morgan Stanley & Co. LLC Adam Jonas, CFA Equity Analyst Adam.Jonas@morganstanley.com +1 212 761-1726 Robotics | North America M Update The Rowdy Robot: Convergence Convergence. Get used to hearing this word. AI agents straddle the digital and the physical. The sim and the real. The data and the manufacturing. The human and machine. As the technologies emerge, the strategies converge. Examples of convergence are all around us: 20 ...

The future of crypto isn’t CeFi or DeFi. It’s convergence.Catch our Head of Spot at Bybit and founder of @Byreal_io, Emily Bao at @Solana Breakpoint as she breaks down how Bybit and Byreal are shaping this convergence, and what a unified liquidity layer means for the next era of crypto users.@SolanaConf ...

Nexxen International Conference Call Summary Company Overview - **Company**: Nexxen International (NasdaqGM:NEXN) - **Industry**: Digital Advertising Technology - **Business Model**: Nexxen operates as an end-to-end platform integrating both buy-side and sell-side services, enhancing transaction efficiency and performance for advertisers and publishers [4][4]. Key Points and Arguments Macro Environment and Industry Dynamics - **Current Market Conditions**: There is uncertainty in the market, particularly due to tariffs affecting certain verticals, notably retail. However, this has created opportunities for other verticals to access media at more efficient prices [6][8]. - **Vertical Performance**: Retailers are cautious in their spending due to macroeconomic factors, but Nexxen is benefiting from higher margins and a larger Total Addressable Market (TAM) compared to competitors [8][9]. - **Adaptation to New Norms**: Retailers are adjusting their pricing strategies and becoming more aggressive in performance marketing to meet financial goals despite increased costs from tariffs [10][11]. Competitive Positioning - **End-to-End Model**: Nexxen's integrated technology allows for seamless data flow between buy-side and sell-side, enhancing performance and yield for both publishers and advertisers [13][14]. - **Industry Convergence**: The trend of convergence in the industry validates Nexxen's early move towards an integrated model, positioning it favorably against competitors [13][14]. Data and Technology - **Partnership with VIDAA**: Nexxen has secured exclusive access to VIDAA's ACR data, which enhances targeting capabilities and ad relevance, driving better performance [16][17]. - **CTV Market Dynamics**: The company views current volatility in the CTV space as an opportunity, as programmatic transactions are increasing, allowing for better inventory management and optimization [19][20][22]. Product Innovations - **Home Screen Activation**: Nexxen is launching a programmatic smart TV home screen activation solution, capitalizing on the captive audience during TV usage [25][26]. - **Investment in AI**: Significant investments are being made in AI to enhance internal efficiencies and improve customer engagement with the platform [41][49]. Financial Strategy - **Investment in VIDAA**: Nexxen has committed $60 million to VIDAA, aiming to expand its footprint and leverage strategic deals with DSPs [28][30]. - **Share Repurchase Program**: The company has repurchased over a third of its shares and plans to initiate a new $40 million buyback program, indicating confidence in its valuation [52][54]. Future Outlook - **2026 Opportunities**: The relationship with VIDAA and advancements in AI are seen as key drivers for growth in 2026. The company is optimistic about capturing market share and enhancing its competitive edge [57][58]. Additional Important Insights - **Market Valuation**: Nexxen is currently trading at approximately three times EBITDA, which is significantly lower than many competitors, presenting a potential buying opportunity for investors [54][58]. - **Long-term Growth Potential**: The investment in VIDAA and the development of the data platform are expected to yield substantial long-term benefits, including potential IPO opportunities for VIDAA [30][31]. This summary encapsulates the critical insights from the Nexxen International conference call, highlighting the company's strategic positioning, market dynamics, and future growth prospects.

Financial Data and Key Metrics Changes - Total company revenue declined about 3% year-over-year, primarily due to tough comparisons to last year's Paris Olympics, but excluding that impact, revenue increased nearly 3% [14] - EBITDA and adjusted EPS were consistent with last year, while free cash flow increased 45% to $4.9 billion [14][24] - Connectivity and platforms EBITDA declined by 3.7% this quarter, with expectations for continued pressure over the next several quarters due to ongoing investments [11][16] Business Line Data and Key Metrics Changes - Broadband subscribers declined by 104,000 in the quarter, with a seasonal benefit from back-to-school activity offset by intense competition [17] - Convergence revenue grew by 2.5%, supported by mid-teens growth in wireless, with wireless net additions hitting a record of 414,000 [19] - Business services revenue was up 6%, with EBITDA growth of nearly 5%, driven by advanced services adoption [20] Market Data and Key Metrics Changes - Broadband-only customers averaged 800 GB of usage per month in Q3, up 9% year-over-year [6] - The competitive environment for broadband remains intense, with a focus on two multi-gig symmetrical providers dominating the market [5][16] - The media segment, excluding last year's Olympics, saw a healthy revenue increase of 4%, with Peacock revenue growing at a mid-teens rate [22] Company Strategy and Development Direction - The company is focusing on three strategic pillars: network, product, and customer experience, with significant investments in AI to optimize performance [6][10] - A new pricing model has been introduced, simplifying customer choices and enhancing transparency [10][16] - The company aims to leverage its sports portfolio to drive viewership and advertising revenue, with a strong focus on integrating linear and streaming media [12][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the importance of the leadership transition and the ongoing pivot to meet market demands [29][30] - The company anticipates continued pressure on ARPU in early 2026 but is confident in returning to growth as customer migrations to new pricing plans progress [41][48] - Management acknowledged the challenges posed by competition but emphasized the long-term benefits of their strategic investments [16][19] Other Important Information - The company returned $2.8 billion to shareholders this quarter, including $1.5 billion in share repurchases and $1.2 billion in dividends [14][26] - The company is maintaining a healthy balance sheet with net leverage at 2.3x, despite increased capital expenditures of $3.1 billion [24][26] Q&A Session Summary Question: Context around ARPU evolution and customer migration to new plans - Management indicated that ARPU growth is unlikely in 2026 due to ongoing investments and customer migrations to new pricing plans [41][42] Question: Trajectory of CMP EBITDA next year and OpEx investments - Management discussed aggressive investments in marketing and customer experience to support the transition, with a focus on cost rationalization [51][55] Question: Speculation about Warner Bros. Discovery and implications for Verizon relationship - Management expressed confidence in the relationship with Verizon and emphasized the high bar for pursuing M&A transactions [59][62] Question: Conversion of free wireless lines to pay and ensuring customer quality - Management highlighted the importance of maintaining quality connections and proactive strategies for converting free lines to paid status [70][72] Question: Business market trends and competition outlook - Management acknowledged increased competition in the business market but expressed confidence in their strong portfolio and growth potential [95][96]

Financial Data and Key Metrics Changes - Total company revenue declined about 3% year over year, primarily due to tough comparisons to last year's Paris Olympics, but excluding that impact, revenue increased nearly 3% driven by strong performance across six growth businesses [14][22] - EBITDA and adjusted EPS were consistent with last year, while free cash flow increased 45% to $4.9 billion [14][24] - Connectivity and platforms EBITDA declined by 3.7% this quarter, reflecting the costs associated with the strategic pivot [11][16] Business Line Data and Key Metrics Changes - Broadband subscribers declined by 104,000 in the quarter, with a seasonal benefit from back-to-school activity offset by intense competition [17] - Convergence revenue grew by 2.5%, supported by mid-teens growth in wireless, with wireless net additions hitting a record of 414,000 [19] - Business services revenue was up 6%, with EBITDA growth of nearly 5%, driven by advanced services adoption [20] Market Data and Key Metrics Changes - Broadband-only customers averaged 800 gigs a month in the third quarter, up 9% year over year [6] - Peacock revenue grew at a mid-teens rate, driven by strength in both advertising and distribution, with advertising up 2.6% [22][84] - The competitive environment for broadband remains intense, with fixed wireless serving price-sensitive segments [5][16] Company Strategy and Development Direction - The company is focusing on three strategic pillars: network, product, and customer experience, with a deliberate investment phase expected to carry costs [6][11] - A new pricing model has been introduced, simplifying offers and enhancing customer experience, with a focus on price transparency [10][15] - The company aims to be a leader in the multi-gig symmetrical broadband market, adapting its approach to compete effectively [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the importance of the leadership transition and the strategic initiatives being implemented [29][30] - The company anticipates continued pressure on ARPU in early 2026 due to the transition to new pricing and packaging [41][46] - Management is confident in the long-term growth potential of broadband and wireless as they navigate the current competitive landscape [48][72] Other Important Information - The company returned $2.8 billion to shareholders this quarter, including $1.5 billion in share repurchases and $1.2 billion in dividends [14][26] - The rollout of the new premium unlimited plan for wireless customers has been successful, enhancing the company's position in the high-value postpaid market [9][19] Q&A Session Summary Question: Context around ARPU evolution and customer migration to new plans - Management indicated that due to investments, ARPU growth is unlikely in 2026, but they are actively migrating customers to new pricing and packaging [40][41] Question: Trajectory of CMP EBITDA next year and OpEx investments - Management acknowledged that while there are investments in sales, marketing, and customer service, they are also rationalizing costs to support the transition [51][55] Question: Speculation about Warner Brothers Discovery and implications for Verizon relationship - Management stated that they are confident in their relationship with Verizon and emphasized that the bar for pursuing M&A is high [59][62] Question: Conversion of free wireless lines to pay and ensuring customer quality - Management highlighted the importance of maintaining quality connections and ensuring a smooth transition for free lines to paid status next year [70][72] Question: Business market trends and competition outlook - Management noted that while competition in the business market is increasing, they have a strong portfolio and are well-positioned for growth [95][96]

Financial Data and Key Metrics Changes - The third quarter consolidated revenue was $33.8 billion, up 1.5% from the prior year period [10] - Adjusted EBITDA was $12.8 billion, up 2.3% year over year, with year-to-date adjusted EBITDA growth of 3.5% at the top end of the guided range [12][13] - Adjusted EPS was $1.21 in the quarter, up 1.7% year over year [13] - Free cash flow for the third quarter was $7 billion, representing a nearly 17% improvement year over year [14] - Net unsecured debt at the end of the quarter was $112 billion, a $9.4 billion improvement year over year [15] Business Line Data and Key Metrics Changes - Postpaid phone gross adds were up 8.4% from the prior year, but net losses were 7,000 due to a churn rate of 0.91% [7][8] - Consumer upgrades increased by 16% year over year, driven by the best value guarantee [8] - Core prepaid delivered 47,000 net adds, marking the fifth consecutive quarter of positive subscriber growth [8] - Verizon Business added 51,000 phone net adds, offsetting disconnect pressure in the public sector [9] - Broadband net adds were 306,000, with a total of over 13.2 million subscribers, and FiOS Internet delivered 61,000 net adds, the best quarterly result in two years [9][10] Market Data and Key Metrics Changes - Converged customers on fiber have a mobility churn rate nearly 40% lower than the overall mobility base [8] - The company is focused on expanding its fiber footprint and enhancing its broadband offerings through partnerships [10][92] Company Strategy and Development Direction - The company aims to shift from a technology-centric to a customer-centric approach, focusing on delighting customers and improving retention [19][32] - A fundamental change in strategic approach is planned, emphasizing financial discipline and sustainable growth [6][26] - The acquisition of Frontier is expected to create significant cross-sell opportunities and enhance the company's fiber capabilities [23][24] - The company plans to leverage AI to improve customer experience and operational efficiency [22][86] Management's Comments on Operating Environment and Future Outlook - The management acknowledges that Verizon has not captured customer growth opportunities despite its strong network foundation [5][17] - There is a commitment to transforming the culture and financial profile of the company, focusing on customer satisfaction and shareholder returns [19][26] - The company expects to close the Frontier deal in the first quarter of 2026 and is making progress with regulatory approvals [15][16] Other Important Information - The company raised its dividend for the 19th consecutive year, reflecting its commitment to shareholder returns [14] - The management is focused on reducing costs and improving operational efficiency across all business aspects [12][22] Q&A Session Questions and Answers Question: Can you expand on your vision for the company and how you expect to turn consumer volumes? - The vision includes shifting to a customer-centric approach, focusing on retention and creating the best value proposition [30][32] Question: How do you drive share for Verizon higher without going through a painful back book repricing exercise? - The strategy involves addressing customer pain points and creating targeted value propositions without relying solely on price increases [40][42] Question: Are there any parallels between Verizon and PayPal that inform your view of the opportunity for improvement? - Similarities exist in the need to focus on customer satisfaction and addressing pain points to drive growth [53][55] Question: What is the company's perspective on convergence and its fiber footprint? - Convergence is seen as a powerful opportunity for revenue synergies, and the company plans to invest in both fiber and fixed wireless [65][66] Question: How does the company plan to address cost opportunities? - The focus will be on identifying areas for cost reductions and reallocating those savings to enhance the value proposition [90][94]

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2025 was $33.8 billion, an increase of 1.5% year-over-year [11] - Adjusted EBITDA was $12.8 billion, up 2.3% year-over-year, with year-to-date adjusted EBITDA growth of 3.5% [13] - Adjusted EPS for the quarter was $1.21, reflecting a 1.7% increase year-over-year [13] - Free cash flow for Q3 was $7 billion, representing a nearly 17% improvement year-over-year [14] - Net unsecured debt at the end of the quarter was $112 billion, a $9.4 billion improvement year-over-year [16] Business Line Data and Key Metrics Changes - Postpaid phone gross adds increased by 8.4% year-over-year, but net losses were 7,000 due to a churn rate of 0.91% [8] - Consumer upgrades rose by 16% year-over-year, attributed to the best value guarantee [9] - Core prepaid business added 47,000 net subscribers, marking the fifth consecutive quarter of growth [9] - Verizon Business added 51,000 phone net adds, offsetting disconnect pressure in the public sector [10] - Broadband net adds were 306,000, with a total of over 13.2 million subscribers, and FiOS Internet delivered 61,000 net adds, the best quarterly result in two years [10] Market Data and Key Metrics Changes - More than 18% of the consumer postpaid phone base took a converged offering, up over 200 basis points from last year [9] - Fixed wireless access net adds were 261,000 for the quarter, with approximately 5.4 million FWA subscribers [11] - Annualized revenue from fixed wireless access surpassed $3 billion [11] Company Strategy and Development Direction - The company is shifting to a customer-first focus, aiming to redefine its trajectory and enhance customer experience [6][20] - Plans to aggressively transform the culture and financial profile of the company, focusing on customer retention and reducing churn [18][19] - The acquisition of Frontier is expected to create significant cross-sell opportunities and enhance the fiber footprint [24][25] - Emphasis on leveraging AI to improve customer experience and operational efficiency [23][88] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the company has not captured growth opportunities despite a strong network foundation [5][18] - The focus will be on driving sustainable value for shareholders through disciplined growth and improved customer satisfaction [6][20] - The company is committed to maintaining its dividend and reducing debt while exploring growth opportunities [16][26] Other Important Information - The company raised its dividend for the 19th consecutive year, reflecting a commitment to shareholder returns [15] - Integration planning for the Frontier acquisition is on track, with strong performance reported by Frontier [17] Q&A Session Summary Question: Can you expand on your vision for the company and what you expect to accomplish in the first hundred days? - The vision includes shifting from a technology-centric to a customer-centric approach, focusing on retention and creating the best value proposition [33][34] Question: How do you drive share for Verizon higher without a painful back book repricing exercise? - The strategy involves addressing customer pain points, enhancing the customer experience, and leveraging convergence [41][44] Question: What strategies do you think are best for reducing churn? - The company will focus on understanding churn drivers and proactively addressing customer needs with tailored offers [80][85] Question: How do you view the opportunity for AI within Verizon? - AI is seen as a transformative technology that can enhance customer experience and operational efficiency [87][88] Question: Can you discuss the nature of the cost opportunities and the organic fiber expansion rate? - The company aims to optimize costs while expanding its fiber footprint, with a focus on both organic growth and acquisitions [92][95]

Financial Data and Key Metrics Changes - Total revenues grew by 1.6% year over year, while adjusted EBITDA increased by 2.4%, leading to a 30 basis point expansion in adjusted EBITDA margins [11] - Adjusted EPS remained consistent at $0.54, and free cash flow for the quarter was $4.9 billion, up from $4.6 billion a year ago [11] - Capital investment decreased by $200 million year over year to $5.3 billion, with a $400 million contribution to the employee pension plan impacting free cash flow [11][12] Business Line Data and Key Metrics Changes - Mobility service revenue grew by 2.3% year over year, contributing to a 2.2% increase in EBITDA [13] - Consumer wireline revenues increased by 4.1%, driven by a 16.8% growth in fiber revenue, with consumer wireline EBITDA growing over 15% [17] - Business wireline revenues declined by 7.8% year over year, while fiber and advanced connectivity service revenues grew by 6% [19][20] Market Data and Key Metrics Changes - The company passed over 31 million locations with fiber and aims to reach over 60 million by the end of 2030 [4] - AT&T Fiber subscribers exceeded 10 million, with a significant increase in broadband net adds, marking the highest total in eight years [5][18] - The convergence rate of fiber customers who also subscribe to mobility services reached 41.5%, up 180 basis points from the previous year [18] Company Strategy and Development Direction - The company aims to become the best advanced communications provider in America, focusing on convergence and expanding its advanced connectivity portfolio through acquisitions [7][10] - Planned acquisitions of spectrum licenses from EchoStar and fiber assets from Lumen are expected to enhance the company's connectivity capabilities [9][10] - The strategy includes transitioning away from legacy copper infrastructure to invest in AI-ready connectivity [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year financial guidance, with expectations for service revenue growth in the low single-digit range and adjusted EBITDA growth of 3% or better [21][22] - The competitive environment remains challenging, but the company believes its focus on converged customer relationships will drive profitability and reduce churn [56][60] - Management anticipates continued pressure on ARPU due to targeting underpenetrated segments, but expects overall service revenue growth [54][61] Other Important Information - The company returned $3.5 billion to shareholders, including nearly $1.5 billion in stock repurchases, maintaining a target of $4 billion for the year [20] - The company ended the quarter with a net debt to adjusted EBITDA ratio of 2.59x, reflecting strong cash generation [20] - The company expects to provide an update on its long-term financial outlook early next year, following the completion of key acquisitions [23] Q&A Session Summary Question: Concerns about broadband competition and DSL base decline - Management reassured that they have a strong product and scalable build engine, allowing them to effectively compete against new entrants [28][30][32] Question: Market segmentation between fiber and fixed wireless - Management emphasized targeted marketing strategies to ensure efficient segmentation and avoid overlap between fiber and fixed wireless customers [42][44] Question: Positioning in a competitive wireless market - Management expressed confidence in their ability to navigate competitive pressures and focus on converged customer strategies to enhance profitability [55][59] Question: Long-term outlook on M&A and succession planning - Management indicated a focus on organic growth and internal operations, with no immediate plans for further acquisitions [68][70] Question: Confidence in Lumen and EchoStar acquisitions - Management confirmed confidence in the strategic value of the Lumen and EchoStar assets, expecting them to enhance organic growth and profitability [78][80]

Financial Data and Key Metrics Changes - Total revenues grew by 1.6% year over year, with adjusted EBITDA increasing by 2.4% and adjusted EBITDA margins expanding by 30 basis points [11] - Adjusted EPS was $0.54, consistent with the prior year, while free cash flow was $4.9 billion compared to $4.6 billion a year ago [11] - Capital investment decreased by $200 million year over year to $5.3 billion, with a $400 million contribution to the employee pension plan impacting free cash flow [11][12] Business Line Data and Key Metrics Changes - Mobility service revenue grew by 2.3% year over year, contributing to EBITDA growth of 2.2% [13] - Consumer wireline revenues increased by 4.1%, driven by a 16.8% growth in fiber revenue, with consumer wireline EBITDA growing over 15% [17] - Business wireline revenues declined by 7.8% year over year, while fiber and advanced connectivity service revenues grew by 6% [19][20] Market Data and Key Metrics Changes - Over 550,000 new subscribers were added to AT&T's advanced broadband services, marking the highest total broadband net adds in over eight years [4] - The convergence rate of fiber customers who also subscribe to mobility services reached 41.5%, up 180 basis points from a year ago [18] - The company passed more than 31 million locations with fiber and expects to reach over 60 million by the end of 2030 [4][5] Company Strategy and Development Direction - The company aims to become the best advanced communications provider in America, focusing on convergence and expanding its advanced connectivity portfolio through acquisitions [7][10] - Planned acquisitions of spectrum licenses from EchoStar and fiber assets from Lumen are expected to enhance the company's connectivity capabilities [9][10] - The strategy includes transitioning away from legacy copper infrastructure and investing in AI-ready connectivity [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year financial guidance, with expectations for service revenue growth in the low single-digit range and adjusted EBITDA growth of 3% or better [21] - The competitive environment remains challenging, but the company believes its focus on converged customer relationships will drive profitability and reduce churn [56][59] - Management anticipates continued pressure on ARPU due to targeting underpenetrated segments, but expects overall service revenue growth [60][61] Other Important Information - The company returned $3.5 billion to shareholders, including nearly $1.5 billion in stock repurchases, and ended the quarter with over $20 billion in cash [20][21] - The company expects to achieve full-year free cash flow in the low to mid-$16 billion range, with capital investments projected at $22 to $22.5 billion [22] Q&A Session Summary Question: Concerns about broadband competition and DSL base decline - Management reassured that they have a strong product and scalable build engine, allowing them to effectively compete against new entrants [28][30][32] Question: Market segmentation between fiber and fixed wireless - The company is focused on ensuring that marketing efforts are targeted and that customers are directed to the appropriate service based on geography [42][44] Question: Positioning in a competitive wireless market - Management believes they are well-positioned to compete and will adjust strategies as necessary to maintain market share [54][56] Question: Long-term organic growth and M&A strategy - Management emphasized a focus on organic growth and internal efficiencies rather than pursuing additional acquisitions at this time [68][69] Question: Confidence in Lumen and EchoStar transactions - Management expressed confidence in the expected benefits from the Lumen and EchoStar transactions, with no unexpected issues arising during planning [78][80]