Verizon(US:VZ)2025-10-29 13:32Financial Data and Key Metrics Changes - Verizon's third quarter consolidated revenue was $33.8 billion, up 1.5% year-over-year [10] - Adjusted EBITDA for the third quarter was $12.8 billion, reflecting a 2.3% increase year-over-year [12] - Adjusted EPS was $1.21, up 1.7% year-over-year, driven by growth in adjusted EBITDA [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 - In consumer mobility, 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% [7][8] - Core prepaid business saw 47,000 net adds, marking the fifth consecutive quarter of positive subscriber growth [8] - Verizon Business delivered 51,000 phone net adds, with strong demand from small and medium businesses [9] - Broadband segment added 306,000 net subscribers, with Fios Internet delivering 61,000 net adds, the best quarterly result in two years [9] Market Data and Key Metrics Changes - The broadband base increased by 1.3 million subscribers year-over-year, now totaling over 13.2 million [9] - Fixed Wireless Access (FWA) net adds were 261,000 for the quarter, with approximately 5.4 million FWA subscribers [10] - Annualized revenue from FWA has surpassed $3 billion and continues to grow [10] Company Strategy and Development Direction - The company is shifting to a customer-first focus, aiming to redefine its trajectory and enhance customer experience [6][19] - Verizon plans to aggressively transform its culture and financial profile, focusing on customer-centric growth and financial discipline [17][22] - The acquisition of Frontier is expected to close in early 2026, creating significant cross-sell opportunities and expanding the fiber footprint [15][24] - The company intends to leverage AI to improve customer experience and operational efficiency [22][87] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that Verizon has not captured customer growth opportunities despite a strong network foundation [5][17] - The focus will be on reducing churn and improving customer retention through enhanced value propositions [31][32] - Management is committed to delivering sustainable revenue growth and increasing shareholder returns while maintaining a strong dividend policy [33][25] Other Important Information - The company is on track to meet its full-year financial guidance, including adjusted EBIT growth and free cash flow [7] - Verizon's capital expenditures through the end of the third quarter totaled $12.3 billion, with expectations to meet investment goals [14] Q&A Session Summary Question: Can you expand on your vision for the company and how to turn consumer volumes? - The CEO emphasized the need to shift from a technology-centric to a customer-centric approach, aiming for the lowest churn rate in the industry [30][31] Question: How do you drive share for Verizon higher without painful back book repricing? - The CEO highlighted the importance of addressing customer pain points and creating targeted value propositions rather than relying solely on pricing [40][42] Question: What strategies do you think are best for reducing churn? - The CEO mentioned the need for proactive measures to address customer issues and improve the overall customer experience [82][84] Question: How do you view the balance between organic fiber expansion and the acquisition of Frontier? - Management stated that both organic and acquisition strategies are essential for expanding the fiber footprint and enhancing convergence opportunities [91][92]