Verizon(US:VZ)2025-09-08 16:52Financial Data and Key Metrics Changes - The company reported a 4% growth in EBITDA, marking a significant improvement compared to previous periods [41] - The leverage ratio is currently at 2.3%, with a target of 2.25% [61] Business Line Data and Key Metrics Changes - The fixed wireless access product has reached 5 million subscribers, with a target of 8 to 9 million by 2028 [51] - The prepaid business has shown strong growth, with three consecutive quarters of positive performance after a period of decline [46] Market Data and Key Metrics Changes - The wireless market is experiencing elevated competition and higher promotional intensity, leading to increased churn rates [13][14] - The company anticipates a mid-single to high growth in phone upgrades this year, following a prolonged period of decline [20] Company Strategy and Development Direction - The acquisition of Frontier is seen as a strategic move to enhance fiber rollout, targeting 30+ million fiber passings by 2028 [3][4] - The company is focusing on building a vertical and horizontal stack to grow service revenue despite a shrinking market for new customers [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted that the current operating environment is competitive, with a shrinking market due to demographic changes [13] - The company is optimistic about future growth vectors, including AI-enabled services and network-enabled devices [38][40] Other Important Information - The company has a strong focus on capital allocation, with plans to increase CapEx for fiber build to $8 to $8.5 billion [60] - The company has maintained a consistent dividend growth for 19 consecutive years, with a recent increase of $0.05 [61] Q&A Session Summary Question: How does Frontier fit into Verizon's broader strategy? - Management highlighted that the acquisition of Frontier is a strategic buy versus build decision, with expected cost synergies of $500 million and opportunities for revenue synergies through convergence [4][5][8] Question: What are the implications of the recent satellite spectrum acquisition? - Management views the acquisition as an opportunity for more supply and potential partnerships for direct-to-device connections, especially in areas where building infrastructure is challenging [10][11] Question: What is the outlook for the consumer wireless market? - Management indicated that the market is experiencing elevated competition and churn, but they are optimistic about growth in upgrades and the performance of their perks platform [13][20][26] Question: How does the company plan to balance fixed wireless and mobile capacity? - Management stated that capital expenditures are prioritized for mobility, with fixed wireless access being a secondary business case [53][54] Question: What is the company's approach to capital allocation and leverage? - Management emphasized a clear capital allocation strategy, focusing on business investments, debt reduction, and maintaining a stable dividend growth [60][61]