Exhibit 99.1
News Release
| | | | | |
| FOR IMMEDIATE RELEASE | Media contacts: |
| October 22, 2024 | Katie Magnotta |
| 201-602-9235 |
| katie.magnotta@verizon.com |
| |
| Eric Wilkens |
| 201-572-9317 |
| eric.wilkens@verizon.com |
Verizon delivers strong third quarter results with customer growth in mobility, extending industry leadership
Achieves fixed wireless subscriber target 15 months ahead of schedule and double-digit growth in total broadband connections
Company remains on track to meet full-year 2024 financial guidance
3Q 2024 Highlights
Wireless: More than doubled wireless postpaid phone net additions year over year
•Total wireless service revenue1 of $19.8 billion, a 2.7 percent increase year over year.
•Retail postpaid phone net additions of 239,000, and retail postpaid net additions of 349,000.
•Retail postpaid phone churn of 0.89 percent, and retail postpaid churn of 1.16 percent.
Broadband: Achieved fixed wireless subscriber target 15 months ahead of schedule
•Total broadband net additions of 389,000. This was the ninth consecutive quarter with more than 375,000 broadband net additions.
•Total fixed wireless net additions of 363,000. At the end of third-quarter 2024, the company had a base of nearly 4.2 million fixed wireless subscribers. The company reached its fixed wireless subscriber target 15 months ahead of schedule, which is a reflection of the product's popularity and customer demand for high quality broadband services.
•Total broadband connections grew to more than 11.9 million as of the end of third-quarter 2024, representing a nearly 16 percent increase year over year.
•Fixed wireless revenue for third-quarter 2024 was $562 million, up $215 million year over year.
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Consolidated: Sustained focus on profitable growth
•Total operating revenue of $33.3 billion, essentially flat compared to third-quarter 2023.
•Consolidated net income for the third quarter of $3.4 billion, down from consolidated net income of $4.9 billion in third-quarter 2023. This decrease was primarily driven by severance charges of $1.7 billion related to separations under the company's voluntary separation program for select U.S.-based management employees as well as other headcount reduction initiatives. Consolidated adjusted EBITDA2 for the third quarter of $12.5 billion, up from $12.2 billion in third-quarter 2023.
•Earnings per share of $0.78, compared with earnings per share of $1.13 in third-quarter 2023; adjusted EPS2, excluding special items, of $1.19, compared with $1.22 in third-quarter 2023.
NEW YORK - Verizon Communications Inc. (NYSE, Nasdaq: VZ) reported third-quarter 2024 results today with customer growth in mobility and broadband. The company also continued its momentum in its three financial priorities of wireless service revenue, consolidated adjusted EBITDA and free cash flow.
"This has been a pivotal quarter for Verizon, with transformative strategic moves and continued operational excellence. We continue to deliver strong results in mobility and broadband, and we are on track to meet our full-year 2024 financial guidance, with wireless service revenue and adjusted EBITDA trending at or above the midpoint of the guided range," said Verizon Chairman and CEO Hans Vestberg. "Our new products — myPlan, myHome and Verizon Business Complete — and our brand refresh are resonating with customers. Through our pending acquisition of Frontier Communications, and our agreement for Vertical Bridge to lease, operate and manage thousands of wireless communications towers, we have set Verizon up for disciplined growth, now and into the future."
For third-quarter 2024, Verizon reported earnings per share of $0.78, compared with earnings per share of $1.13 in third-quarter 2023. On an adjusted basis2, excluding special items, EPS was $1.19 in third-quarter 2024, compared with adjusted EPS2 of $1.22 in third-quarter 2023.
Reported third-quarter 2024 financial results reflected $2.3 billion in charges related to special items. This included a severance charge of $1.7 billion related to separations under the
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company's voluntary separation program for select U.S.-based management employees as well as other headcount reduction initiatives; an asset and business rationalization charge of $374 million predominantly related to the decision to cease use of certain real estate assets and exit non-strategic portions of certain businesses; and amortization of intangible assets of $186 million related to Tracfone and other acquisitions.
Consolidated results: Financially disciplined, consistent with overall strategy
•Total consolidated operating revenue in third-quarter 2024 was $33.3 billion, essentially flat compared to third-quarter 2023, as service and other revenue growth was offset by declines in wireless equipment revenue.
•Total wireless service revenue1 in third-quarter 2024 was $19.8 billion, a sequential increase of $70 million, and an increase of 2.7 percent year over year. This increase was primarily driven by pricing actions implemented in recent quarters and growth from fixed wireless connections.
•Cash flow from operations year-to-date3 totaled $26.5 billion, compared with $28.8 billion in 2023. This result reflects higher cash taxes, as well as higher interest expense primarily driven by the decrease in capitalized interest and higher interest rates.
•Capital expenditures year-to-date3 were $12.0 billion.
•Free cash flow2 year-to-date3 was $14.5 billion, compared with $14.6 billion in 2023.
•Consolidated net income for third-quarter 2024 was $3.4 billion, down from consolidated net income of $4.9 billion in third-quarter 2023, and consolidated adjusted EBITDA2 was $12.5 billion, up from $12.2 billion in third-quarter 2023.
•Verizon's total unsecured debt as of the end of third-quarter 2024 was $126.4 billion, a $1.1 billion increase compared to second-quarter 2024, and approximately $70 million lower year over year. The company's net unsecured debt2 at the end of third-quarter 2024 was $121.4 billion. At the end of third-quarter 2024, Verizon's ratio of unsecured debt to net income (LTM) was 12.3 times and net unsecured debt to consolidated adjusted EBITDA ratio2 was 2.5 times.
Verizon Consumer: Seventh consecutive quarter of year over year growth in postpaid phone gross additions
•Total Verizon Consumer revenue in third-quarter 2024 was $25.4 billion, an increase of 0.4 percent year over year as gains in service revenue were partially offset by declines in wireless equipment revenue.
•Wireless service revenue in third-quarter 2024 was $16.4 billion, up 2.6 percent year over year, driven by growth in Consumer wireless postpaid average revenue per account (ARPA) from pricing actions and continued fixed wireless adoption.
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•Consumer wireless retail postpaid churn was 1.07 percent in third-quarter 2024, and wireless retail postpaid phone churn was 0.84 percent.
•In third-quarter 2024, Consumer reported 81,000 wireless retail postpaid phone net additions, compared with 51,000 net losses in third-quarter 2023. This improvement was driven by a 5.9 percent year over year increase in postpaid phone gross additions. This marks the seventh consecutive quarter of year over year growth in postpaid phone gross additions. Excluding the contribution from the company's second number offering, Consumer reported 18,000 wireless retail postpaid phone net additions. Verizon expects to have positive Consumer postpaid phone net additions for full-year 2024, with and without the contribution from the second number offering.
•In third-quarter 2024, Consumer reported 80,000 wireless retail prepaid net additions, excluding Safelink, Verizon's brand offering access to government-sponsored connectivity benefits and programs.
•Consumer reported 209,000 fixed wireless net additions and 39,000 Fios Internet net additions in third-quarter 2024. Consumer Fios revenue was $2.9 billion in third-quarter 2024.
•In third-quarter 2024, Consumer operating income was $7.6 billion, an increase of 0.8 percent year over year, and segment operating income margin was 30.0 percent, an increase from 29.9 percent in third-quarter 2023. Segment EBITDA2 in third-quarter 2024 was $11.0 billion, an increase of 1.8 percent year over year. This improvement can be attributed to service and other revenue growth partially offset by lower upgrade volumes. Segment EBITDA margin2 in third-quarter 2024 was 43.4 percent, an increase from 42.8 percent in third-quarter 2023.
Verizon Business: Continued mobility and broadband growth
•Total Verizon Business revenue was $7.4 billion in third-quarter 2024, a decrease of 2.3 percent year over year, as increases in wireless service revenue were more than offset by decreases in wireline revenue.
•Business wireless service revenue in third-quarter 2024 was $3.5 billion, an increase of 2.9 percent year over year. This result was driven by continued strong net additions for both mobility and fixed wireless, as well as benefits from pricing actions implemented in recent quarters.
•Business reported 281,000 wireless retail postpaid net additions in third-quarter 2024. This result included 158,000 postpaid phone net additions. The company experienced sustained growth in phone net additions across its small and medium business, enterprise, and public sector customers throughout the quarter.
•Business wireless retail postpaid churn was 1.45 percent in third-quarter 2024, and wireless retail postpaid phone churn was 1.12 percent.
•Business reported 154,000 fixed wireless net additions in third-quarter 2024.
•In third-quarter 2024, Verizon Business operating income was $565 million, an increase of 4.8 percent year over year, and segment operating income margin was 7.7 percent,
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an increase from 7.2 percent in third-quarter 2023. Segment EBITDA2 in third-quarter 2024 was $1.6 billion, a decrease of 3.7 percent year over year, driven by continued declines in wireline revenues. Segment EBITDA margin2 in third-quarter 2024 was 21.8 percent, a decrease from 22.1 percent in third-quarter 2023.
Outlook and guidance: Verizon is on track to meet financial guidance
The company does not provide a reconciliation for any of the following adjusted (non-GAAP) forecasts because it cannot, without unreasonable effort, predict the special items that could arise, and the company is unable to address the probable significance of the unavailable information.
For 2024, Verizon continues to expect the following:
•Total wireless service revenue growth1 of 2.0 percent to 3.5 percent.
•Adjusted EBITDA growth2 of 1.0 percent to 3.0 percent.
•Adjusted EPS2 of $4.50 to $4.70.
•Capital expenditures between $17.0 billion and $17.5 billion.
•Adjusted effective income tax rate2 in the range of 22.5 percent to 24.0 percent.
1 Total wireless service revenue represents the sum of Consumer and Business segments.
2 Non-GAAP financial measure. See the accompanying schedules and www.verizon.com/about/investors for reconciliations of non-GAAP financial measures cited in this document to most directly comparable financial measures under generally accepted accounting principles (GAAP).
3 Nine months ended September 30, 2024.
Verizon Communications Inc. (NYSE, Nasdaq: VZ) powers and empowers how its millions of customers live, work and play, delivering on their demand for mobility, reliable network connectivity and security. Headquartered in New York City, serving countries worldwide and nearly all of the Fortune 500, Verizon generated revenues of $134.0 billion in 2023. Verizon’s world-class team never stops innovating to meet customers where they are today and equip them for the needs of tomorrow. For more, visit verizon.com or find a retail location at verizon.com/stores.
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Forward-looking statements
In this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “forecasts,” “hopes,” “intends,” “plans,” “targets” or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the “SEC”), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of competition in the markets in which we operate, including the inability to successfully respond to competitive factors such as prices, promotional
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incentives and evolving consumer preferences; failure to take advantage of, or respond to competitors' use of, developments in technology and address changes in consumer demand; performance issues or delays in the deployment of our 5G network resulting in significant costs or a reduction in the anticipated benefits of the enhancement to our networks; the inability to implement our business strategy; adverse conditions in the U.S. and international economies, including inflation and changing interest rates in the markets in which we operate; cyber attacks impacting our networks or systems and any resulting financial or reputational impact; damage to our infrastructure or disruption of our operations from natural disasters, extreme weather conditions, acts of war, terrorist attacks or other hostile acts and any resulting financial or reputational impact; disruption of our key suppliers’ or vendors' provisioning of products or services, including as a result of geopolitical factors or the potential impacts of global climate change; material adverse changes in labor matters and any resulting financial or operational impact; damage to our reputation or brands; the impact of public health crises on our operations, our employees and the ways in which our customers use our networks and other products and services; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; allegations regarding the release of hazardous materials or pollutants into the environment from our, or our predecessors’, network assets and any related government investigations, regulatory developments, litigation, penalties and other liability, remediation and compliance costs, operational impacts or reputational damage; our high level of indebtedness; significant litigation and any resulting material expenses incurred in defending against lawsuits or paying awards or settlements; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or regulations, or in their interpretation, or challenges to our tax positions, resulting in additional tax expense or liabilities; changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; and risks associated with mergers, acquisitions and other strategic transactions, including our ability to consummate the proposed acquisition of Frontier Communications Parent, Inc. and obtain cost savings, synergies and other anticipated benefits within the expected time period or at all.
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Verizon Communications Inc.
Condensed Consolidated Statements of Income
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in millions, except per share amounts) |
| Unaudited | | 3 Mos. Ended 9/30/24 | | 3 Mos. Ended 9/30/23 | | %
Change | | 9 Mos. Ended 9/30/24 | | 9 Mos. Ended 9/30/23 | | %
Change |
| | | | | | | | | | | | |
| Operating Revenues | | | | | | | | | | | | |
| Service revenues and other | | $ | 27,987 | | | $ | 27,523 | | | 1.7 | | $ | 83,405 | | | $ | 81,994 | | | 1.7 |
| Wireless equipment revenues | | 5,343 | | | 5,813 | | | (8.1) | | 15,702 | | | 16,850 | | | (6.8) |
| Total Operating Revenues | | 33,330 | | | 33,336 | | | — | | 99,107 | | | 98,844 | | | 0.3 |
| | | | | | | | | | | | |
| Operating Expenses | | | | | | | | | | | | |
| Cost of services | | 7,193 | | | 7,084 | | | 1.5 | | 21,064 | | | 21,148 | | | (0.4) |
| Cost of wireless equipment | | 6,047 | | | 6,353 | | | (4.8) | | 17,519 | | | 18,557 | | | (5.6) |
| Selling, general and administrative expense | | 9,706 | | | 7,995 | | | 21.4 | | 25,873 | | | 23,754 | | | 8.9 |
| Depreciation and amortization expense | | 4,458 | | | 4,431 | | | 0.6 | | 13,386 | | | 13,108 | | | 2.1 |
| | | | | | | | | | | | |
| Total Operating Expenses | | 27,404 | | | 25,863 | | | 6.0 | | 77,842 | | | 76,567 | | | 1.7 |
| | | | | | | | | | | | |
| Operating Income | | 5,926 | | | 7,473 | | | (20.7) | | 21,265 | | | 22,277 | | | (4.5) |
| Equity in losses of unconsolidated businesses | | (24) | | | (18) | | | 33.3 | | (47) | | | (42) | | | 11.9 |
| Other income, net | | 72 | | | 170 | | | (57.6) | | 198 | | | 494 | | | (59.9) |
| Interest expense | | (1,672) | | | (1,433) | | | 16.7 | | (5,005) | | | (3,925) | | | 27.5 |
| Income Before Provision For Income Taxes | | 4,302 | | | 6,192 | | | (30.5) | | 16,411 | | | 18,804 | | | (12.7) |
| Provision for income taxes | | (891) | | | (1,308) | | | (31.9) | | (3,576) | | | (4,136) | | | (13.5) |
| Net Income | | $ | 3,411 | | | $ | 4,884 | | | (30.2) | | $ | 12,835 | | | $ | 14,668 | | | (12.5) |
| | | | | | | | | | | | |
| Net income attributable to noncontrolling interests | | $ | 105 | | | $ | 122 | | | (13.9) | | $ | 334 | | | $ | 349 | | | (4.3) |
| Net income attributable to Verizon | | 3,306 | | | 4,762 | | | (30.6) | | 12,501 | | | 14,319 | | | (12.7) |
| Net Income | | $ | 3,411 | | | $ | 4,884 | | | (30.2) | | $ | 12,835 | | | $ | 14,668 | | | (12.5) |
| | | | | | | | | | | | |
| Basic Earnings Per Common Share | | | | | | | | | | | | |
| Net income attributable to Verizon | | $ | 0.78 | | | $ | 1.13 | | | (31.0) | | $ | 2.96 | | | $ | 3.40 | | | (12.9) |
| Weighted-average shares outstanding (in millions) | | 4,220 | | | 4,213 | | | | | 4,217 | | | 4,209 | | | |
| | | | | | | | | | | | |
Diluted Earnings Per Common Share(1) | | | | | | | | | | | | |
| Net income attributable to Verizon | | $ | 0.78 | | | $ | 1.13 | | | (31.0) | | $ | 2.96 | | | $ | 3.40 | | | (12.9) |
| Weighted-average shares outstanding (in millions) | | 4,225 | | | 4,216 | | | | | 4,221 | | | 4,214 | | | |
Footnotes:(1)Diluted Earnings per Common Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represents the only potential dilution.
Verizon Communications Inc.
Condensed Consolidated Balance Sheets
| | | | | | | | | | | | | | | | | | | | |
| (dollars in millions) |
| Unaudited | | 9/30/24 | | 12/31/23 | | $ Change |
| | | | | | |
| Assets | | | | | | |
| Current assets | | | | | | |
| Cash and cash equivalents | | $ | 4,987 | | | $ | 2,065 | | | $ | 2,922 | |
| Accounts receivable | | 27,040 | | | 26,102 | | | 938 | |
| Less Allowance for credit losses | | 1,086 | | | 1,017 | | | 69 | |
| | | | | | |
| Accounts receivable, net | | 25,954 | | | 25,085 | | | 869 | |
| Inventories | | 2,523 | | | 2,057 | | | 466 | |
| | | | | | |
| Prepaid expenses and other | | 7,177 | | | 7,607 | | | (430) | |
| Total current assets | | 40,641 | | | 36,814 | | | 3,827 | |
| | | | | | |
| Property, plant and equipment | | 327,555 | | | 320,108 | | | 7,447 | |
| Less Accumulated depreciation | | 220,027 | | | 211,798 | | | 8,229 | |
| Property, plant and equipment, net | | 107,528 | | | 108,310 | | | (782) | |
| Investments in unconsolidated businesses | | 867 | | | 953 | | | (86) | |
| Wireless licenses | | 156,481 | | | 155,667 | | | 814 | |
| | | | | | |
| Goodwill | | 22,844 | | | 22,843 | | | 1 | |
| Other intangible assets, net | | 10,674 | | | 11,057 | | | (383) | |
| Operating lease right-of-use assets | | 23,613 | | | 24,726 | | | (1,113) | |
| Other assets | | 18,516 | | | 19,885 | | | (1,369) | |
| Total assets | | $ | 381,164 | | | $ | 380,255 | | | $ | 909 | |
| | | | | | |
| Liabilities and Equity | | | | | | |
| Current liabilities | | | | | | |
| Debt maturing within one year | | $ | 21,763 | | | $ | 12,973 | | | $ | 8,790 | |
| Accounts payable and accrued liabilities | | 22,222 | | | 23,453 | | | (1,231) | |
| | | | | | |
| Current operating lease liabilities | | 4,312 | | | 4,266 | | | 46 | |
| Other current liabilities | | 13,519 | | | 12,531 | | | 988 | |
| Total current liabilities | | 61,816 | | | 53,223 | | | 8,593 | |
| | | | | | |
| Long-term debt | | 128,878 | | | 137,701 | | | (8,823) | |
| Employee benefit obligations | | 12,744 | | | 13,189 | | | (445) | |
| Deferred income taxes | | 45,865 | | | 45,781 | | | 84 | |
| Non-current operating lease liabilities | | 19,247 | | | 20,002 | | | (755) | |
| Other liabilities | | 14,946 | | | 16,560 | | | (1,614) | |
| Total long-term liabilities | | 221,680 | | | 233,233 | | | (11,553) | |
| | | | | | |
| Equity | | | | | | |
| Common stock | | 429 | | | 429 | | | — | |
| Additional paid in capital | | 13,479 | | | 13,631 | | | (152) | |
| Retained earnings | | 86,958 | | | 82,915 | | | 4,043 | |
| Accumulated other comprehensive loss | | (1,665) | | | (1,380) | | | (285) | |
| Common stock in treasury, at cost | | (3,585) | | | (3,821) | | | 236 | |
| Deferred compensation – employee stock ownership plans and other | | 710 | | | 656 | | | 54 | |
| Noncontrolling interests | | 1,342 | | | 1,369 | | | (27) | |
| Total equity | | 97,668 | | | 93,799 | | | 3,869 | |
| Total liabilities and equity | | $ | 381,164 | | | $ | 380,255 | | | $ | 909 | |
Verizon Communications Inc.
Consolidated - Selected Financial and Operating Statistics
| | | | | | | | | | | | | | | | | | |
| (dollars in millions, except per share amounts) | | | | |
| Unaudited | | 9/30/24 | | 12/31/23 | | | | |
| | | | | | | | |
| Total debt | | $ | 150,641 | | | $ | 150,674 | | | | | |
| | | | | | | | |
| Unsecured debt | | $ | 126,369 | | | $ | 128,491 | | | | | |
Net unsecured debt(1) | | $ | 121,382 | | | $ | 126,426 | | | | | |
| | | | | | | | |
| Unsecured debt / Consolidated Net Income (LTM) | | 12.3 | x | | 10.6 | x | | | | |
Net unsecured debt / Consolidated Adjusted EBITDA(1)(2) | | 2.5 | x | | 2.6 | x | | | | |
| Common shares outstanding end of period (in millions) | | 4,210 | | | 4,204 | | | | | |
Total employees (‘000)(3) | | 101.2 | | | 105.4 | | | | | |
| Quarterly cash dividends declared per common share | | $ | 0.6775 | | | $ | 0.6650 | | | | | |
Footnotes:
(1)Non-GAAP financial measure.
(2)Consolidated Adjusted EBITDA excludes the effects of non-operational items and special items.
(3)Number of employees on a full-time equivalent basis.
Verizon Communications Inc.
Condensed Consolidated Statements of Cash Flows
| | | | | | | | | | | | | | | | | | | | |
| (dollars in millions) |
| Unaudited | | 9 Mos. Ended 9/30/24 | | 9 Mos. Ended 9/30/23 | | $ Change |
| | | | | | |
| Cash Flows from Operating Activities | | | | | | |
| Net Income | | $ | 12,835 | | | $ | 14,668 | | | $ | (1,833) | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | |
| Depreciation and amortization expense | | 13,386 | | | 13,108 | | | 278 | |
| Employee retirement benefits | | 469 | | | 161 | | | 308 | |
| Deferred income taxes | | 247 | | | 822 | | | (575) | |
| Provision for expected credit losses | | 1,623 | | | 1,596 | | | 27 | |
| Equity in losses of unconsolidated businesses, inclusive of dividends received | | 62 | | | 69 | | | (7) | |
| | | | | | |
| | | | | | |
| | | | | | |
| Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses | | (2,609) | | | 972 | | | (3,581) | |
| | | | | | |
| Other, net | | 467 | | | (2,598) | | | 3,065 | |
| Net cash provided by operating activities | | 26,480 | | | 28,798 | | | (2,318) | |
| | | | | | |
| Cash Flows from Investing Activities | | | | | | |
| Capital expenditures (including capitalized software) | | (12,019) | | | (14,164) | | | 2,145 | |
| | | | | | |
| Acquisitions of wireless licenses | | (768) | | | (1,859) | | | 1,091 | |
| Collateral receipts (payments) related to derivative contracts, net | | (332) | | | 162 | | | (494) | |
| | | | | | |
| Other, net | | 6 | | | 253 | | | (247) | |
| Net cash used in investing activities | | (13,113) | | | (15,608) | | | 2,495 | |
| | | | | | |
| Cash Flows from Financing Activities | | | | | | |
| Proceeds from long-term borrowings | | 3,142 | | | 1,999 | | | 1,143 | |
| Proceeds from asset-backed long-term borrowings | | 8,229 | | | 4,656 | | | 3,573 | |
| Net proceeds from short-term commercial paper | | — | | | 333 | | | (333) | |
| Repayments of long-term borrowings and finance lease obligations | | (6,623) | | | (5,568) | | | (1,055) | |
| Repayments of asset-backed long-term borrowings | | (6,158) | | | (3,729) | | | (2,429) | |
| Dividends paid | | (8,399) | | | (8,231) | | | (168) | |
| Other, net | | (1,668) | | | (1,101) | | | (567) | |
| Net cash used in financing activities | | (11,477) | | | (11,641) | | | 164 | |
| | | | | | |
| Increase in cash, cash equivalents and restricted cash | | 1,890 | | | 1,549 | | | 341 | |
| Cash, cash equivalents and restricted cash, beginning of period | | 3,497 | | | 4,111 | | | (614) | |
| Cash, cash equivalents and restricted cash, end of period | | $ | 5,387 | | | $ | 5,660 | | | $ | (273) | |
Verizon Communications Inc.
Consumer - Selected Financial Results
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in millions) |
| Unaudited | | 3 Mos. Ended 9/30/24 | | 3 Mos. Ended 9/30/23 | | %
Change | | 9 Mos. Ended 9/30/24 | | 9 Mos. Ended 9/30/23 | | %
Change |
| | | | | | | | | | | | |
| Operating Revenues | | | | | | | | | | | | |
| Service | | $ | 19,260 | | | $ | 18,850 | | | 2.2 | | $ | 57,466 | | | $ | 55,947 | | | 2.7 |
| Wireless equipment | | 4,478 | | | 4,902 | | | (8.6) | | 13,111 | | | 14,210 | | | (7.7) |
| Other | | 1,622 | | | 1,505 | | | 7.8 | | 4,767 | | | 4,515 | | | 5.6 |
| Total Operating Revenues | | 25,360 | | | 25,257 | | | 0.4 | | 75,344 | | | 74,672 | | | 0.9 |
| | | | | | | | | | | | |
| Operating Expenses | | | | | | | | | | | | |
| Cost of services | | 4,567 | | | 4,419 | | | 3.3 | | 13,554 | | | 13,218 | | | 2.5 |
| Cost of wireless equipment | | 4,850 | | | 5,133 | | | (5.5) | | 14,032 | | | 14,950 | | | (6.1) |
| Selling, general and administrative expense | | 4,928 | | | 4,886 | | | 0.9 | | 15,064 | | | 14,795 | | | 1.8 |
| Depreciation and amortization expense | | 3,411 | | | 3,272 | | | 4.2 | | 10,114 | | | 9,733 | | | 3.9 |
| Total Operating Expenses | | 17,756 | | | 17,710 | | | 0.3 | | 52,764 | | | 52,696 | | | 0.1 |
| | | | | | | | | | | | |
| Operating Income | | $ | 7,604 | | | $ | 7,547 | | | 0.8 | | $ | 22,580 | | | $ | 21,976 | | | 2.7 |
| Operating Income Margin | | 30.0 | % | | 29.9 | % | | | | 30.0 | % | | 29.4 | % | | |
| | | | | | | | | | | | |
Segment EBITDA(1) | | $ | 11,015 | | | $ | 10,819 | | | 1.8 | | $ | 32,694 | | | $ | 31,709 | | | 3.1 |
Segment EBITDA Margin(1) | | 43.4 | % | | 42.8 | % | | | | 43.4 | % | | 42.5 | % | | |
Footnotes:
(1) Non-GAAP financial measure.
The segment financial results and metrics above exclude the effects of special items (other than the effects of acquisition-related intangible asset amortization), which the Company’s chief operating decision maker does not consider in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.
Verizon Communications Inc.
Consumer - Selected Operating Statistics
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Unaudited | | | | | | | | 9/30/24 | | 9/30/23 | | % Change |
| | | | | | | | | | | | |
| Connections (‘000): | | | | | | | | | | | | |
| Wireless retail postpaid | | | | | | | | 94,005 | | | 92,704 | | | 1.4 |
| Wireless retail prepaid | | | | | | | | 20,206 | | | 21,420 | | | (5.7) |
| Total wireless retail | | | | | | | | 114,211 | | | 114,124 | | | 0.1 |
| | | | | | | | | | | | |
| Wireless retail prepaid excl. SafeLink | | | | | | | | 18,780 | | | 19,123 | | | (1.8) |
| Wireless retail postpaid phone | | | | | | | | 74,624 | | | 74,407 | | | 0.3 |
| | | | | | | | | | | | |
| Fios video | | | | | | | | 2,744 | | | 3,013 | | | (8.9) |
| Fios internet | | | | | | | | 7,088 | | | 6,923 | | | 2.4 |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Fixed wireless access (FWA) broadband | | | | | | | | 2,498 | | | 1,641 | | | 52.2 |
| Wireline broadband | | | | | | | | 7,264 | | | 7,151 | | | 1.6 |
| Total broadband | | | | | | | | 9,762 | | | 8,792 | | | 11.0 |
| | | | | | | | | | | | |
| Unaudited | | 3 Mos. Ended 9/30/24 | | 3 Mos. Ended 9/30/23 | | %
Change | | 9 Mos. Ended 9/30/24 | | 9 Mos. Ended 9/30/23 | | %
Change |
| | | | | | | | | | | | |
| Gross Additions (‘000): | | | | | | | | | | | | |
| Wireless retail postpaid | | 3,088 | | | 3,152 | | | (2.0) | | 8,972 | | | 9,290 | | | (3.4) |
| Wireless retail postpaid phone | | 1,952 | | | 1,843 | | | 5.9 | | 5,420 | | | 5,037 | | | 7.6 |
| | | | | | | | | | | | |
Net Additions Detail (‘000): | | | | | | | | | | | | |
| Wireless retail postpaid | | 68 | | | 251 | | | (72.9) | | 215 | | | 876 | | | (75.5) |
| Wireless retail prepaid | | (69) | | | (207) | | | 66.7 | | (909) | | | (862) | | | (5.5) |
| Total wireless retail | | (1) | | | 44 | | | * | | (694) | | | 14 | | | * |
| | | | | | | | | | | | |
| Wireless retail prepaid excl. SafeLink | | 80 | | | (221) | | | * | | (63) | | | (815) | | | 92.3 |
| Wireless retail postpaid phone | | 81 | | | (51) | | | * | | (85) | | | (450) | | | 81.1 |
| | | | | | | | | | | | |
| Fios video | | (74) | | | (78) | | | 5.1 | | (207) | | | (221) | | | 6.3 |
| Fios internet | | 39 | | | 69 | | | (43.5) | | 112 | | | 183 | | | (38.8) |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| FWA broadband | | 209 | | | 251 | | | (16.7) | | 630 | | | 758 | | | (16.9) |
| Wireline broadband | | 26 | | | 53 | | | (50.9) | | 75 | | | 135 | | | (44.4) |
| | | | | | | | | | | | |
| Total broadband | | 235 | | | 304 | | | (22.7) | | 705 | | | 893 | | | (21.1) |
| | | | | | | | | | | | |
| Churn Rate: | | | | | | | | | | | | |
| Wireless retail postpaid | | 1.07 | % | | 1.04 | % | | | | 1.04 | % | | 1.01 | % | | |
| Wireless retail postpaid phone | | 0.84 | % | | 0.85 | % | | | | 0.82 | % | | 0.82 | % | | |
| Wireless retail prepaid | | 4.08 | % | | 4.39 | % | | | | 4.28 | % | | 4.31 | % | | |
| Wireless retail prepaid excl. SafeLink | | 3.72 | % | | 3.85 | % | | | | 3.64 | % | | 3.76 | % | | |
| Wireless retail | | 1.61 | % | | 1.68 | % | | | | 1.62 | % | | 1.65 | % | | |
| | | | | | | | | | | | |
| Revenue Statistics (in millions): | | | | | | | | | | | | |
| Wireless service revenue | | $ | 16,377 | | | $ | 15,963 | | | 2.6 | | $ | 48,853 | | | $ | 47,324 | | | 3.2 |
| Fios revenue | | $ | 2,916 | | | $ | 2,897 | | | 0.7 | | $ | 8,708 | | | $ | 8,672 | | | 0.4 |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Verizon Communications Inc.
Consumer - Selected Operating Statistics (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Unaudited | | 3 Mos. Ended 9/30/24 | | 3 Mos. Ended 9/30/23 | | %
Change | | 9 Mos. Ended 9/30/24 | | 9 Mos. Ended 9/30/23 | | %
Change |
| | | | | | | | | | | | |
| Other Wireless Statistics: | | | | | | | | | | | | |
Wireless retail postpaid ARPA(1) | | $ | 139.06 | | | $ | 133.47 | | | 4.2 | | $ | 137.75 | | | $ | 131.79 | | | 4.5 |
| Wireless retail postpaid upgrade rate | | 3.2 | % | | 3.6 | % | | | | | | | | |
Wireless retail postpaid accounts (‘000)(2) | | | | | | | | 32,719 | | | 32,938 | | | (0.7) |
Wireless retail postpaid connections per account(2) | | | | | | | | 2.87 | | | 2.81 | | | 2.1 |
Wireless retail prepaid ARPU(3) | | $ | 30.70 | | | $ | 31.87 | | | (3.7) | | $ | 30.93 | | | $ | 31.32 | | | (1.2) |
Wireless retail prepaid ARPU(3) excl. SafeLink | | $ | 32.41 | | | $ | 33.13 | | | (2.2) | | $ | 32.38 | | | $ | 32.72 | | | (1.0) |
| | | | | | | | | | | | |
Footnotes:
(1) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
(2) Statistics presented as of end of period.
(3) Wireless retail prepaid ARPU - average service revenue per unit from retail prepaid connections.
Where applicable, the operating results reflect certain adjustments, including those related to the 3G network shutdowns, migration activity among different types of devices and plans, customer profile changes, and adjustments in connection with mergers, acquisitions and divestitures.
Certain intersegment transactions with corporate entities have not been eliminated.
* Not meaningful
Verizon Communications Inc.
Business - Selected Financial Results
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in millions) |
| Unaudited | | 3 Mos. Ended 9/30/24 | | 3 Mos. Ended 9/30/23 | | %
Change | | 9 Mos. Ended 9/30/24 | | 9 Mos. Ended 9/30/23 | | %
Change |
| | | | | | | | | | | | |
| Operating Revenues | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Enterprise and Public Sector | | $ | 3,538 | | | $ | 3,787 | | | (6.6) | | $ | 10,670 | | | $ | 11,358 | | | (6.1) |
| | | | | | | | | | | | |
| Business Markets and Other | | 3,263 | | | 3,184 | | | 2.5 | | 9,661 | | | 9,397 | | | 2.8 |
| Wholesale | | 550 | | | 556 | | | (1.1) | | 1,696 | | | 1,749 | | | (3.0) |
| Total Operating Revenues | | 7,351 | | | 7,527 | | | (2.3) | | 22,027 | | | 22,504 | | | (2.1) |
| | | | | | | | | | | | |
| Operating Expenses | | | | | | | | | | | | |
| Cost of services | | 2,440 | | | 2,536 | | | (3.8) | | 7,327 | | | 7,661 | | | (4.4) |
| Cost of wireless equipment | | 1,197 | | | 1,220 | | | (1.9) | | 3,487 | | | 3,606 | | | (3.3) |
| Selling, general and administrative expense | | 2,109 | | | 2,105 | | | 0.2 | | 6,503 | | | 6,290 | | | 3.4 |
| Depreciation and amortization expense | | 1,040 | | | 1,127 | | | (7.7) | | 3,246 | | | 3,324 | | | (2.3) |
| Total Operating Expenses | | 6,786 | | | 6,988 | | | (2.9) | | 20,563 | | | 20,881 | | | (1.5) |
| | | | | | | | | | | | |
| Operating Income | | $ | 565 | | | $ | 539 | | | 4.8 | | $ | 1,464 | | | $ | 1,623 | | | (9.8) |
| Operating Income Margin | | 7.7 | % | | 7.2 | % | | | | 6.6 | % | | 7.2 | % | | |
| | | | | | | | | | | | |
Segment EBITDA(1) | | $ | 1,605 | | | $ | 1,666 | | | (3.7) | | $ | 4,710 | | | $ | 4,947 | | | (4.8) |
Segment EBITDA Margin(1) | | 21.8 | % | | 22.1 | % | | | | 21.4 | % | | 22.0 | % | | |
Footnotes:
(1) Non-GAAP financial measure.
The segment financial results and metrics above exclude the effects of special items (other than the effects of acquisition-related intangible asset amortization), which the Company’s chief operating decision maker does not consider in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.
Verizon Communications Inc.
Business - Selected Operating Statistics
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Unaudited | | | | | | | | 9/30/24 | | 9/30/23 | | %
Change |
| | | | | | | | | | | | |
| Connections (‘000): | | | | | | | | | | | | |
| Wireless retail postpaid | | | | | | | | 30,532 | | | 29,455 | | | 3.7 |
| Wireless retail postpaid phone | | | | | | | | 18,649 | | | 18,019 | | | 3.5 |
| | | | | | | | | | | | |
| Fios video | | | | | | | | 56 | | | 63 | | | (11.1) |
| Fios internet | | | | | | | | 397 | | | 383 | | | 3.7 |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| FWA broadband | | | | | | | | 1,698 | | | 1,038 | | | 63.6 |
| Wireline broadband | | | | | | | | 459 | | | 461 | | | (0.4) |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Total broadband | | | | | | | | 2,157 | | | 1,499 | | | 43.9 |
| | | | | | | | | | | | |
| Unaudited | | 3 Mos. Ended 9/30/24 | | 3 Mos. Ended 9/30/23 | | %
Change | | 9 Mos. Ended 9/30/24 | | 9 Mos. Ended 9/30/23 | | %
Change |
| | | | | | | | | | | | |
| Gross Additions (‘000): | | | | | | | | | | | | |
| Wireless retail postpaid | | 1,601 | | | 1,618 | | | (1.1) | | 4,711 | | | 4,815 | | | (2.2) |
| Wireless retail postpaid phone | | 784 | | | 761 | | | 3.0 | | 2,249 | | | 2,251 | | | (0.1) |
| | | | | | | | | | | | |
| Net Additions Detail (‘000): | | | | | | | | | | | | |
| Wireless retail postpaid | | 281 | | | 330 | | | (14.8) | | 727 | | | 950 | | | (23.5) |
| Wireless retail postpaid phone | | 158 | | | 151 | | | 4.6 | | 404 | | | 431 | | | (6.3) |
| | | | | | | | | | | | |
| Fios video | | (2) | | | (1) | | | * | | (5) | | | (4) | | | (25.0) |
| Fios internet | | 4 | | | 3 | | | 33.3 | | 12 | | | 10 | | | 20.0 |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| FWA broadband | | 154 | | | 133 | | | 15.8 | | 465 | | | 403 | | | 15.4 |
| Wireline broadband | | — | | | (3) | | | * | | (1) | | | (7) | | | 85.7 |
| | | | | | | | | | | | |
| Total broadband | | 154 | | | 130 | | | 18.5 | | 464 | | | 396 | | | 17.2 |
| | | | | | | | | | | | |
| Churn Rate: | | | | | | | | | | | | |
| Wireless retail postpaid | | 1.45 | % | | 1.47 | % | | | | 1.47 | % | | 1.48 | % | | |
| Wireless retail postpaid phone | | 1.12 | % | | 1.14 | % | | | | 1.12 | % | | 1.13 | % | | |
| | | | | | | | | | | | |
| Revenue Statistics (in millions): | | | | | | | | | | | | |
| Wireless service revenue | | $ | 3,466 | | | $ | 3,367 | | | 2.9 | | $ | 10,276 | | | $ | 10,008 | | | 2.7 |
| Fios revenue | | $ | 314 | | | $ | 308 | | | 1.9 | | $ | 938 | | | $ | 923 | | | 1.6 |
| | | | | | | | | | | | |
| Other Operating Statistics: | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Wireless retail postpaid upgrade rate | | 2.5 | % | | 2.9 | % | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Footnotes:
Where applicable, the operating results reflect certain adjustments, including those related to the 3G network shutdowns, migration activity among different types of devices and plans, customer profile changes, and adjustments in connection with mergers, acquisitions and divestitures.
Certain intersegment transactions with corporate entities have not been eliminated.
* Not meaningful
Verizon Communications Inc.
Supplemental Information - Total Wireless Operating and Financial Statistics
The following supplemental schedule contains certain financial and operating metrics which reflect an aggregation of our Consumer and Business segments’ wireless results.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Unaudited | | 9/30/24 | | 9/30/23 | | % Change |
| | | | | | | | | | | | |
| Connections (‘000) | | | | | | | | | | | | |
| Retail postpaid | | | | | | | | 124,537 | | | 122,159 | | | 1.9 |
Retail prepaid | | | | | | | | 20,206 | | | 21,420 | | | (5.7) |
| Total retail | | | | | | | | 144,743 | | | 143,579 | | | 0.8 |
| | | | | | | | | | | | |
| Retail prepaid excl. SafeLink | | | | | | | | 18,780 | | | 19,123 | | | (1.8) |
| Retail postpaid phone | | | | | | | | 93,273 | | | 92,426 | | | 0.9 |
| | | | | | | | | | | | |
| Unaudited | | 3 Mos. Ended 9/30/24 | | 3 Mos. Ended 9/30/23 | | %
Change | | 9 Mos. Ended 9/30/24 | | 9 Mos. Ended 9/30/23 | | %
Change |
| | | | | | | | | | | | |
| Net Additions Detail (‘000) | | | | | | | | | | | | |
| Retail postpaid phone | | 239 | | | 100 | | | * | | 319 | | | (19) | | | * |
| Retail postpaid | | 349 | | | 581 | | | (39.9) | | 942 | | | 1,826 | | | (48.4) |
| Retail prepaid | | (69) | | | (207) | | | 66.7 | | (909) | | | (862) | | | (5.5) |
| Total retail | | 280 | | | 374 | | | (25.1) | | 33 | | | 964 | | | (96.6) |
| | | | | | | | | | | | |
| Retail prepaid excl. SafeLink | | 80 | | | (221) | | | * | | (63) | | | (815) | | | 92.3 |
| | | | | | | | | | | | |
| Account Statistics | | | | | | | | | | | | |
Retail postpaid accounts (‘000)(1) | | | | | | | | 34,746 | | | 34,855 | | | (0.3) |
Retail postpaid connections per account(1) | | | | | | | | 3.58 | | | 3.50 | | | 2.3 |
Retail postpaid ARPA(2) | | $ | 162.05 | | | $ | 156.13 | | | 3.8 | | $ | 160.50 | | | $ | 154.30 | | | 4.0 |
Retail prepaid ARPU(3) | | $ | 30.70 | | | $ | 31.87 | | | (3.7) | | $ | 30.93 | | | $ | 31.32 | | | (1.2) |
Retail prepaid ARPU(3) excl. SafeLink | | $ | 32.41 | | | $ | 33.13 | | | (2.2) | | $ | 32.38 | | | $ | 32.72 | | | (1.0) |
| | | | | | | | | | | | |
| Churn Detail | | | | | | | | | | | | |
| Retail postpaid phone | | 0.89 | % | | 0.90 | % | | | | 0.88 | % | | 0.88 | % | | |
| Retail postpaid | | 1.16 | % | | 1.15 | % | | | | 1.14 | % | | 1.12 | % | | |
| Retail prepaid | | 4.08 | % | | 4.39 | % | | | | 4.28 | % | | 4.31 | % | | |
| Retail prepaid excl. SafeLink | | 3.72 | % | | 3.85 | % | | | | 3.64 | % | | 3.76 | % | | |
| Retail | | 1.57 | % | | 1.63 | % | | | | 1.59 | % | | 1.61 | % | | |
| | | | | | | | | | | | |
| Retail Postpaid Connection Statistics | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Upgrade rate | | 3.0 | % | | 3.4 | % | | | | | | | | |
| | | | | | | | | | | | |
Revenue Statistics (in millions)(4) | | | | | | | | | | | | |
| FWA revenue | | $ | 562 | | | $ | 347 | | | 62.0 | | $ | 1,528 | | | $ | 899 | | | 70.0 |
| Wireless service | | $ | 19,843 | | | $ | 19,330 | | | 2.7 | | $ | 59,129 | | | $ | 57,332 | | | 3.1 |
| Wireless equipment | | 5,343 | | | 5,813 | | | (8.1) | | 15,702 | | | 16,850 | | | (6.8) |
| Wireless other | | 1,662 | | | 1,507 | | | 10.3 | | 4,847 | | | 4,508 | | | 7.5 |
| Total Wireless | | $ | 26,848 | | | $ | 26,650 | | | 0.7 | | $ | 79,678 | | | $ | 78,690 | | | 1.3 |
Footnotes:
(1) Statistics presented as of end of period.
(2) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
(3) Wireless retail prepaid ARPU - average service revenue per unit from retail prepaid connections.
(4) Intersegment transactions between Consumer or Business segment with corporate entities have not been eliminated.
Where applicable, the operating results reflect certain adjustments, including those related to the 3G network shutdowns, migration activity among different types of devices and plans, customer profile changes, and adjustments in connection with mergers, acquisitions and divestitures.
* Not meaningful
Verizon Communications Inc.
Non-GAAP Reconciliations - Consolidated Verizon | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Consolidated EBITDA and Consolidated Adjusted EBITDA | | | | | | | | | | | | | | | | | | |
| (dollars in millions) |
| Unaudited | | | | | | | | 3 Mos. Ended 9/30/24 | | 3 Mos. Ended 6/30/24 | | 3 Mos. Ended 3/31/24 | | | | | | 3 Mos. Ended 12/31/23 | | 3 Mos. Ended 9/30/23 | | 3 Mos. Ended 6/30/23 | | 3 Mos. Ended 3/31/23 |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Consolidated Net Income (Loss) | | | | | | | | $ | 3,411 | | | $ | 4,702 | | | $ | 4,722 | | | | | | | $ | (2,573) | | | $ | 4,884 | | | $ | 4,766 | | | $ | 5,018 | |
| Add: | | | | | | | | | | | | | | | | | | | | | | | | |
| Provision for income taxes | | | | | | | | 891 | | | 1,332 | | | 1,353 | | | | | | | 756 | | | 1,308 | | | 1,346 | | | 1,482 | |
| Interest expense | | | | | | | | 1,672 | | | 1,698 | | | 1,635 | | | | | | | 1,599 | | | 1,433 | | | 1,285 | | | 1,207 | |
Depreciation and amortization expense(1) | | | | | | | | 4,458 | | | 4,483 | | | 4,445 | | | | | | | 4,516 | | | 4,431 | | | 4,359 | | | 4,318 | |
| Consolidated EBITDA | | | | | | | | $ | 10,432 | | | $ | 12,215 | | | $ | 12,155 | | | | | | | $ | 4,298 | | | $ | 12,056 | | | $ | 11,756 | | | $ | 12,025 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Add/(subtract): | | | | | | | | | | | | | | | | | | | | | | | | |
Other (income) expense, net(2) | | | | | | | | $ | (72) | | | $ | 72 | | | $ | (198) | | | | | | | $ | 807 | | | $ | (170) | | | $ | (210) | | | $ | (114) | |
| Equity in (earnings) losses of unconsolidated businesses | | | | | | | | 24 | | | 14 | | | 9 | | | | | | | 11 | | | 18 | | | 33 | | | (9) | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Severance charges | | | | | | | | 1,733 | | | — | | | — | | | | | | | 296 | | | — | | | 237 | | | — | |
| Asset and business rationalization | | | | | | | | 374 | | | — | | | — | | | | | | | 325 | | | — | | | 155 | | | — | |
| Legacy legal matter | | | | | | | | — | | | — | | | 106 | | | | | | | — | | | — | | | — | | | — | |
| Verizon Business Group goodwill impairment | | | | | | | | — | | | — | | | — | | | | | | | 5,841 | | | — | | | — | | | — | |
| Legal settlement | | | | | | | | — | | | — | | | — | | | | | | | 100 | | | — | | | — | | | — | |
| Business transformation costs | | | | | | | | — | | | — | | | — | | | | | | | — | | | 176 | | | — | | | — | |
| Non-strategic business shutdown | | | | | | | | — | | | — | | | — | | | | | | | — | | | 158 | | | — | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
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| | | | | | | | 2,059 | | | 86 | | | (83) | | | | | | | 7,380 | | | 182 | | | 215 | | | (123) | |
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| Consolidated Adjusted EBITDA | | | | | | | | $ | 12,491 | | | $ | 12,301 | | | $ | 12,072 | | | | | | | $ | 11,678 | | | $ | 12,238 | | | $ | 11,971 | | | $ | 11,902 | |
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| Footnotes: | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) Includes Amortization of acquisition-related intangible assets and a portion of the Non-strategic business shutdown, where applicable. | | |
| (2) Includes Pension and benefits remeasurement adjustments, where applicable. | | | | | | |
Verizon Communications Inc.
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| Consolidated EBITDA and Consolidated Adjusted EBITDA (LTM) | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in millions) | | | | | | | | | | | | |
| Unaudited | | 12 Mos. Ended 9/30/24 | | | | 12 Mos. Ended 6/30/24 | | | | 12 Mos. Ended 12/31/23 | | | | | | | | | | | | |
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| Consolidated Net Income | | $ | 10,262 | | | | | $ | 11,735 | | | | | $ | 12,095 | | | | | | | | | | | | | |
| Add: | | | | | | | | | | | | | | | | | | | | | | |
| Provision for income taxes | | 4,332 | | | | | 4,749 | | | | | 4,892 | | | | | | | | | | | | | |
| Interest expense | | 6,604 | | | | | 6,365 | | | | | 5,524 | | | | | | | | | | | | | |
Depreciation and amortization expense(1) | | 17,902 | | | | | 17,875 | | | | | 17,624 | | | | | | | | | | | | | |
| Consolidated EBITDA | | $ | 39,100 | | | | | $ | 40,724 | | | | | $ | 40,135 | | | | | | | | | | | | | |
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| Add/(subtract): | | | | | | | | | | | | | | | | | | | | | | |
Other expense, net(2) | | $ | 609 | | | | | $ | 511 | | | | | $ | 313 | | | | | | | | | | | | | |
| Equity in losses of unconsolidated businesses | | 58 | | | | | 52 | | | | | 53 | | | | | | | | | | | | | |
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| Severance charges | | 2,029 | | | | | 296 | | | | | 533 | | | | | | | | | | | | | |
| Asset and business rationalization | | 699 | | | | | 325 | | | | | 480 | | | | | | | | | | | | | |
| Legacy legal matter | | 106 | | | | | 106 | | | | | — | | | | | | | | | | | | | |
| Verizon Business Group goodwill impairment | | 5,841 | | | | | 5,841 | | | | | 5,841 | | | | | | | | | | | | | |
| Legal settlement | | 100 | | | | | 100 | | | | | 100 | | | | | | | | | | | | | |
| Business transformation costs | | — | | | | | 176 | | | | | 176 | | | | | | | | | | | | | |
| Non-strategic business shutdown | | — | | | | | 158 | | | | | 158 | | | | | | | | | | | | | |
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| | 9,442 | | | | | 7,565 | | | | | 7,654 | | | | | | | | | | | | | |
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| Consolidated Adjusted EBITDA | | $ | 48,542 | | | | | $ | 48,289 | | | | | $ | 47,789 | | | | | | | | | | | | | |
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| Footnotes: | | | | | | | | | | | | |
| (1) Includes Amortization of acquisition-related intangible assets and a portion of the Non-strategic business shutdown, where applicable. | | | | | | | | | | | | |
| (2) Includes Pension and benefits remeasurement adjustments, where applicable. | | | | | | | | | | | | | | | | |
Verizon Communications Inc.
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| Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio | | | | | | | | | | |
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| Unaudited | | 9/30/24 | | 6/30/24 | | | | 12/31/23 | | 9/30/23 | | | | |
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| Debt maturing within one year | | $ | 21,763 | | | $ | 23,255 | | | | | $ | 12,973 | | | $ | 12,950 | | | | | |
| Long-term debt | | 128,878 | | | 126,022 | | | | | 137,701 | | | 134,441 | | | | | |
| Total Debt | | 150,641 | | | 149,277 | | | | | 150,674 | | | 147,391 | | | | | |
| Less Secured debt | | 24,272 | | | 24,015 | | | | | 22,183 | | | 20,951 | | | | | |
| Unsecured Debt | | 126,369 | | | 125,262 | | | | | 128,491 | | | 126,440 | | | | | |
| Less Cash and cash equivalents | | 4,987 | | | 2,432 | | | | | 2,065 | | | 4,210 | | | | | |
| Net Unsecured Debt | | $ | 121,382 | | | $ | 122,830 | | | | | $ | 126,426 | | | $ | 122,230 | | | | | |
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| Consolidated Net Income (LTM) | | $ | 10,262 | | | | | | | $ | 12,095 | | | | | | | |
| Unsecured Debt to Consolidated Net Income Ratio | | 12.3 | x | | | | | | 10.6 | x | | | | | | |
| Consolidated Adjusted EBITDA (LTM) | | $ | 48,542 | | | | | | | $ | 47,789 | | | | | | | |
| Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio | | 2.5 | x | | | | | | 2.6 | x | | | | | | |
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| Adjusted Earnings per Common Share (Adjusted EPS) | | | | | | | | |
| (dollars in millions, except per share amounts) |
| Unaudited | | 3 Mos. Ended 9/30/24 | | 3 Mos. Ended 9/30/23 |
| | Pre-tax | Tax | After-Tax | | | Pre-tax | Tax | After-Tax | |
| EPS | | | | | $ | 0.78 | | | | | | $ | 1.13 | |
| Amortization of acquisition-related intangible assets | | $ | 186 | | $ | (46) | | $ | 140 | | 0.03 | | | $ | 224 | | $ | (56) | | $ | 168 | | 0.04 | |
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| Severance charges | | 1,733 | | (429) | | 1,304 | | 0.31 | | | — | | — | | — | | — | |
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| Asset and business rationalization | | 374 | | (90) | | 284 | | 0.07 | | | — | | — | | — | | — | |
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| Business transformation costs | | — | | — | | — | | — | | — | | 176 | | (45) | | 131 | | 0.03 | |
| Non-strategic business shutdown | | — | | — | | — | | — | | | 179 | | (83) | | 96 | | 0.02 | |
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| | $ | 2,293 | | $ | (565) | | $ | 1,728 | | $ | 0.41 | | | $ | 579 | | $ | (184) | | $ | 395 | | $ | 0.09 | |
| Adjusted EPS | | | | | $ | 1.19 | | | | | | $ | 1.22 | |
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| Footnote: | | | | | | | | | | |
| Adjusted EPS may not add due to rounding. | | | | | | | | | | |
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| Free Cash Flow | | | | | | | |
| (dollars in millions) | |
| Unaudited | | 9 Mos. Ended 9/30/24 | | | | 9 Mos. Ended 9/30/23 | |
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| Net Cash Provided by Operating Activities | | $ | 26,480 | | | | | $ | 28,798 | | |
| Capital expenditures (including capitalized software) | | (12,019) | | | | | (14,164) | | |
| Free Cash Flow | | $ | 14,461 | | | | | $ | 14,634 | | |
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Verizon Communications Inc.
Non-GAAP Reconciliations - Segments
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| Segment EBITDA and Segment EBITDA Margin | | | | | | | | |
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| Consumer | | | | | | | | |
| (dollars in millions) |
| Unaudited | | 3 Mos. Ended 9/30/24 | | 3 Mos. Ended 9/30/23 | | 9 Mos. Ended 9/30/24 | | 9 Mos. Ended 9/30/23 |
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| Operating Income | | $ | 7,604 | | | $ | 7,547 | | | $ | 22,580 | | | $ | 21,976 | |
| Add Depreciation and amortization expense | | 3,411 | | | 3,272 | | | 10,114 | | | 9,733 | |
| Segment EBITDA | | $ | 11,015 | | | $ | 10,819 | | | $ | 32,694 | | | $ | 31,709 | |
| Year over year change % | | 1.8 | % | | | | 3.1 | % | | |
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| Total operating revenues | | $ | 25,360 | | | $ | 25,257 | | | $ | 75,344 | | | $ | 74,672 | |
| Operating Income Margin | | 30.0 | % | | 29.9 | % | | 30.0 | % | | 29.4 | % |
| Segment EBITDA Margin | | 43.4 | % | | 42.8 | % | | 43.4 | % | | 42.5 | % |
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| Business | | | | | | | | |
| (dollars in millions) |
| Unaudited | | 3 Mos. Ended 9/30/24 | | 3 Mos. Ended 9/30/23 | | 9 Mos. Ended 9/30/24 | | 9 Mos. Ended 9/30/23 |
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| Operating Income | | $ | 565 | | | $ | 539 | | | $ | 1,464 | | | $ | 1,623 | |
| Add Depreciation and amortization expense | | 1,040 | | | 1,127 | | | 3,246 | | | 3,324 | |
| Segment EBITDA | | $ | 1,605 | | | $ | 1,666 | | | $ | 4,710 | | | $ | 4,947 | |
| Year over year change % | | (3.7) | % | | | | (4.8) | % | | |
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| Total operating revenues | | $ | 7,351 | | | $ | 7,527 | | | $ | 22,027 | | | $ | 22,504 | |
| Operating Income Margin | | 7.7 | % | | 7.2 | % | | 6.6 | % | | 7.2 | % |
| Segment EBITDA Margin | | 21.8 | % | | 22.1 | % | | 21.4 | % | | 22.0 | % |
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