Verizon(US:VZ)2025-10-29 13:32Financial 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]