Verizon Communications (VZ) 22 Apr 222022 Q1 Earnings call transcript

Good morning, and welcome to the Verizon First Quarter 2022 Earnings Conference Call. At this time all participants have been placed in a listen-only mode and the floor will be open up for questions following the presentation. [Operator Instructions] Today’s conference is being recorded.

If you have any objections, you may disconnect at this time. It is now my pleasure to turn over the call to your host, Mr. President Relations. Vice Senior Connor, of Investor Brady

Officer, Thanks, quarter Brady earnings morning Financial and Officer. Chief Connor, our Matt our first welcome to Executive and conference Chairman I’m with Angela. Vestberg; Chief here and Ellis, Good and our Hans call. This is

our and this made Investor As A Relations our information replay financial call are be slides website. and and release, reminder, presentation on available of will website. available also a operating transcript earnings the on our

contained get on in we expected the harbor the Reconciliations future GAAP contains directly on may certain your in are risks results available presentation with like website. attention to to draw website. measures. measures non-GAAP uncertainties. posted included to financial the Verizon’s Before subject financial about measures and started, that which to most affect Slide filings our that Discussion non-GAAP I’d financial our SEC, statements This and factors materials are future contains in and on comparable safe our this are statement events these Information forward-looking X. results of presentation of is

a take quarter. the of consolidated billion. billion includes pretax a $X.X from quarter, items approximately earnings look for special of In basis. earnings on a the costs. $X.X approximately $X.XX This quarter we first reported a early share of include earnings at first per pretax GAAP let’s first Now debt Reported redemption loss loss from

amortization million. TracFone other $XXX and the impact to of acquisitions In intangible of related assets addition, was

first through share to quarter. over per a adjusted turn to us of the quarter. Hans of With in the recap the the these now effects Excluding items, $X.XX call earnings special that, take first I’ll was

in and great see earlier morning Good earnings our It us many call. for was this Investor so of to Day at March. thanks Brady. joining you for you, Thank

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ongoing of network in disruption. this evolution phase achieved have We supply chain the

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according our digital serve four key Our network execute and to to how is mission supports also our strategy inclusion, business we expansion stakeholders our practices. which responsible of

released proud detail and drive and area. covers governance and our environmental, a Let report our on business. our practices our reflects business social how responsible of progress. are our XXXX, spend we strategy report for in progress The detailed me this in ESG minute Today, we

renewable and allocating green green billion is bond During issued which the towards our bond, allocated be first from fourth $X quarter, our to expected we completed proceeds offering energy. third

described as ESG long-term our to in goals footprint previous also We pursue in report. continue and quarters carbon

quarters taken Third notice. have

our We efforts. continue to be for sustainability recognized

our date. And During overall U.S. putting strong in in ESG us rating competitors. quarter, to our management ESG low and MSCI risk our rating us ESG ranked telecom to the raised above AA, Sustainalytics highest risk,

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remains positioned Verizon well year. this together, compete Taken to

for this we remain growth investment our track targets. on Our long-term us quarter pivotal year, first to achieve performance puts well positioned and

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to continue expect strong pre we to a We environment. performance this closer pandemic something as approach

On in the Consumer side the phone net losses were quarter. XXX,XXX

was was more decline gross April. phone a churn is While X% trend pronounced gross March into we adds from saw and add prior continuing year. the in study, of This in

We continue measures appropriate take the competitive will to market. be to in

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and We total retail businesses are networks. year. segment the success was nationwide Consumer our on accounts opportunity business. up the Consumer measure this the in against our strong at and covered across and Our postpaid performance demonstrates of Business vector QX Business and broadband XX,XXX to last subscribers end broadband from households this by the and scale by vector

early spectrum a announcement the is milestone mentioned, Hans major clearance Verizon. As for

with deploy now population. to full sooner our fixed addressable opportunity end expected XX network confident is this this open million by well million XX million by businesses with continues network POPs in of of least feel addressable incremental Our another The household will C-Band sale quarter. cover year and the wireless the unlocking spectrum expansion the at million XXX a cover end of Fios that team We year, able than for XXXX. will access XX in and as XXX,XXX

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verticals, solutions to across the that success they We’re our customers seeing need. working with our deliver

investments expand during Investor connections we mentioned and continue that key to Day, a wireless private our ecosystem as partnerships, double-digit will to as continue our private we in at As anticipate for grow pace. and the deployments well MEC, With we MEC. our advance

terms our we is long-term well differentiation And growth scale market revenue capabilities. unmatched this accelerate are and Our in positioned space. to within of

results. first the value included Now, QX full let’s marks about TracFone quarter a our talk in consumer market. of

prepaid market our was part the and our quarter Our all pleased we prepaid than in $XX.XX integration of This based declined revenue. Prepaid prepaid in with Verizon our value TracFone success legacy on the TracFone progress are ARPU and across making. prepaid is the going is prepaid of ARPU, brands. ARPU. we lower in because are We ARPU measure as subscribers, planned,

$XX. quarter-over-quarter benefits we brands $XX to program in in the affordable due ARPUs to pressure dropped Benefit Additionally, negatively specifically which TracFone saw program, the Emergency part impacted connectivity Broadband from transition to the the from

our expect value we strategy to grow forward, and execute Going space. stabilize to prepaid as this ARPU additional subsequently we to in bring

years, in programs. experience January, certain compare which favorably delivered quarter the to from team especially strong TracFone of the benefited that inventory first stimulus XXXX we activity, throughout device While quarter, prior excluding finished pressure and volumes in

losses Verizon prepaid $XX,XXX. net losses TracFone had prepaid were of Our the quarter $XX,XXX, while net in total brands

to Network-as-a-Service On as net delivered the Total on our a Next offset from first other financial reflecting than in the was consolidated vectors our let’s execution Media growth. quarter, X.X% as highly continued move growth in Verizon Slide a from and revenue growth wireless consolidated lost well XX. basis, TracFone the Verizon down of revenue results first incremental ownership, quarter revenues strong service Service in revenue the revenue wireless was and service more TracFone. environment as X.X%, contributions full from of of quarter. competitive strategy five the

represented the impact X.X% beginning was the of Combined the to and billion Media, our our the first in for Campaign on Verizon the FWA other that first investment in operations, was Adjusted into prior impacting the Excluding the by of levels with starting XG launch sale year C-Band quarter $XX.X items Media, year-over-year Ultra expenses disposition a in the of growth. revenue QX the service on EBITDA up TracFone expenses. expansion. Verizon spending elevated our year. quarter XXXX added support had down do on Other EBITDA EBITDA of from including above X.X% considering TracFone the year-over-year impacts introduced part to especially and to driven which marketing by COVID-related the We at quarter, those marketing drag EBITDA quarter brands. lower of we’re put

marketing expenses begin year-over-year in a in levels we expect the year prior more which in to We lap will QX. QX. normal to represented And tower pressure ramp expenses, to also up return

deliver the the Hans first The performance and line EPS Brady bottom-line relatively a year. as a core period well of with as As strength headwinds. investment, quarter shows prior profitability, our $X.XX, of in significant even was business adjusted to other in highlighted, for

by TracFone in strong of and of take step-up discussed QX. higher non-connectivity Total service wireless grew our within inclusion Now our revenue revenue services. Wireless revenue revenue, was was Consumer at driven well year-over-year, inclusion, and products a quarter I XX.X% in growth. driven equipment the increase up service results first core quarter results driven growth TracFone and strong momentum ARPA, let’s Consumer look which our were These for financial the earlier postpaid as XX.X% by by the year-over-year. as full

volume in to from $XX.X This of result gains volume earlier, by such TracFone X.X%. files and by as elevated results as year-over-year a up higher offset higher XX.X% setting pressured of volumes revenue Services, additionally were EBITDA TracFone, of pressuring the video investments marketing pressures gains, ARPA sales with File billion business. margins and quarter. mainly broadband items a revenue, the and as by and bad activity operated in debt, in by see the with expenses, the to customer historically driven is has inclusion grew Moving equipment inclusion Margins is we the quarter. rate as legacy in Similarly, higher X.X%. which consumer margins, Consumer total resulted were growth was EBITDA continue which partially TracFone well higher voice of sales the business the that below mentioned the

EBITDA an was improvement the Now The we representing reduction service growth the service high in decline look expect distance driven financial X.X% of revenue declines. continues year. to service wireline post-pandemic learning wireline of in business last the see wireless the on SMB XX. Business quarter, Slide revenue. in our from growth Business momentum a from X.X% part Verizon for let’s prior and rest in peak EBITDA to momentum wireless XQ Group to by devices, recovery. rate the closer last service with ongoing growth take the expand down Wireless for over by strong ongoing billion quarter’s $X.X year of Group, The margin XXXX. results led and the was Business the was alongside space, business X.X% strong sales within which at see continues The revenue is

service was subsidy were sales margin XX% of by to we wireless elevated Additionally, volumes. which QX volume, levels sales similarly the related trends and up XX.X%, impacted wireless wireline strong EBITDA year-over-year. experienced

exited year, the cashflow impacted XX, Cashflow Slide to billion, of to inventory of from activities with volumes The receivables quarter, year. by driven effectively growth while the great quarter activation of investment traffic move opportunity of the $X.X compared billion the billion in of to was to of compete first from the our result issued free Green we Bond, totaled for reach cash our for $XXX.X due OneFiber more XG spending operating C-Band support all the an of from in to of flow with of quarter proceeds as last allocated capacity build and LTE continued The our management Capital as increase as unsecured of $X.X in and $X.X our environment. network renewable the expanding to net $X.X the supply quarter cash primarily net reduction for impacts fourth our of compared normal increase chain to increased XG the billion operations is billion, and out businesses. extends part billion. working levels billion. network We with be prior Wideband sequentially an the Ultra spending and debt, net on $X.X billion Let’s summary. flow totaled our The capital spending increase current our expected to capital $X.X energy. $X.X

an expected. we during basis a number as flat over to the approximately higher We as offer tender a debt. cost, ended to on in long-term retire ratio of EBITDA completed other were quarter of adjusted a billion some addition, transactions which X.X debt times with of the $X net the In consideration sequential quarter unsecured used proceeds

operate give of to including We year. labor the our The macro context saw move energy current operations and as those the related related of the network us the given continue third at XXXX. well some the remainder expect costs, as pressures first towards both environment direct quarter guidance areas exposure of end we and parties. for workforce for around major our detail and for Lastly, environment. transportation, costs guidance additional provide I the in view inflationary to around our want which to to of let’s our and building

of drive a direct have portion the a on our they cost to significant our meaningful overall and of While represent the year. structure to date, rest impact the throughout these not potential had items results expense additional have pressure

vast majority to is we forecast an consumer place long also impact hikes to we million. we our the both to but the near-term reminder, change our landscape to has are of the interest which in We of treasury months and early are early XX how It which near-term we our manageable results inflation guidance also helps impact have interest also it growth a the landscaping, as a is our kept allow will rate we There’s may strategy are last. debt XX that compete. $XXX throughout XX% months recently, confident Fed in significant of exposure. believe been accurate, seeing rate. achieve approximately business above expectations, fixed XX% yields us are will The anticipate this minimize rate the But next year our Based maturities team incremental current the at for plans. may how for $XXX put levels, to year. predict our long-term in cash expectations If the we the million updating present the near-term increase on or too alter economy that

reductions, revenue On to revenue approximately revenue our rate in to service we million revenue are USF service softness items other XXXX, pressuring side, the flat other and include now wireline several be year-over-year sales. affecting by and anticipate which hundred and significant

guidance macro economic service the these upon ranges items. the towards keeping in ranges adjusted as revenue our for of EBITDA expect prior now as revenue, around our well come are adjusted expectations and guidance and the service EPS. lower end pressures, we to wireless other of We Based

billion band billion usual $X are spending. $XX.X business we to of guidance billion related capital and billion to to reiterating as CapEx, For for prior see $X $XX.X

the out growth We over invest continue and that, opportunities our I’ll turn business will priorities. remain to to it our the to confident Investor discussed Hans long-term in in Day. close during XXXX With

Matt. you, Thank

our is all critical XXXX year about we priority Service our scaling growth to work on on and for strategic to the from strategy on a This future quarter Network offers to across for as drive vectors. and a a to execute investment execute as experience is five this all progress in growth. Our continue to promise both We our customer made long-term capture of revenue plans. a XG perspective continue good and that our

our showed Our going and our strategy quarter, strong second core we built all confidence and the a strategy. in momentum into the have solid business on strength

we’re Back Now ready take Brady. to to your you questions.

we’re Thanks, Hans. Angela, questions. for ready

Thank you.

John Instructions] comes ahead now the question-and-answer [Operator question. your We will First of from with Hodulik Please begin session. question go UBS.

Thanks. Great. the two guess guys you data to all I provided. quick follow-ups

impact is was underlying is And on is change, trends down had customer that changes the the through just ARPU And reimbursements. TracFone on any that the fully can reflect of and sort impact separate year. were that $X you XXX standpoint? to we out is basis saw First the margins, then points, and from the that in impact there reimbursements, the consumer EBB a from trend it outlook driving what how – the actually and Thanks. your for they

so John, Hey questions. good morning. Thanks for the

go we certainly major impact a no to we’re as in but change On programs volumes on messaging that forward the as related here, the customer EEB that. seeing

Consumer the bigger your question and Verizon on we think saw margins quarter. in Group I the

marketing as on So a spend the we time price everything C-Band of so one this quarter. couple our plans, new things at C-Band, there, some very, wireless strong the were fixed We in of with major costs certainly launch of as quarter on increases in well very and look around launch that.

and that’s in remarks expect Trac course, impact. more impact Trac go then XX so mentioned overall and Initially has onto months to as to prepared the in that’s VCG my in to will customers network the we mix. forward. we in as then our that integration normal as going And lessen XX be the you And we an has there, work through integration the XXX the complete second next that up quarter into bring to to be point and basis quarter the the here then impact all into range Trac that So of over returned that XXX saw head I the as you some volumes we year-over-year in impact levels would bring months. of

into – head little to rest combination year would here certainly there, the the but an on So of in see things expect consumer margin. we a as our bit the of of uptake

Yes. Got it.

Great. the ready John. Angela, question. for Thanks, next we’re

next Brett Sachs. your with from comes question ahead question. Goldman Our from Feldman Please go

for the you thank Yes, question. taking

to cash flow, extent a but Matt, to supply to obviously inventory manage other that So quarter I think to remarks, was was the first volumes, the capital what really end use you’ve chain of I porting just the timing factor, the in quarter, insights what XQ. you implementing seems think continued the could elevated sort pre-buying timing that. issue, a volumes during like regards going working In on some adds receivables what in shift guess of higher do what’s with a to you associated extent I the And gained to of the do ratios into into maybe your had the quarter. of of was more you the Thank gross just you’re you postpaid to lower or the expect first profile noted do device with hoping started market perhaps just actually little it payments either that that promotion have phone then you. to that. let us be behind and had and bit off words, know offset has by any a prepared or in selling ultimately steps that with to soften had towards collecting a or the stabilize that

start I support there. on Brett will later then and Matt

but course we adds combination, because very good was wireless remarks at First side March. prepared if you the also of very of slowness little bit quarter, good the quarter, a our look quarter had I as the said a mean we Consumer had strong. business a in over if you in all, net look

sort piece seen mean customers we’ve a you or of our XG of acquisition if low. the era it, share higher traction And coming while, now a is logical the see I phase for market. competition important really what of into think still an are us. XG I in we mean course, second levels the and very good is about as because However, we’re for its of a

well. We’re doing

the ups and upgrades doing We’re step all time.

the all look it’s time the So we will we’ve come market if But feel and something being That’s course, when and disciplined do. as now always into actions market if need then good of we very financially offerings are. say, take our into and see there’s needed. focus, we right that’s done really measured the we and with where to I we the we

comes long-term so and overall to be to it what going it. I the it see when strategy our we We’re business. and when fixed the in situation market kept all beginning the logical that’s pleased offerings wireless are access to very of of actually And us total our just was in fantastic. consumer with a and on from it’s our in strong then what with network so year, we And both is on our this really different And is made it’s I’m there the out because that, launch, strategy, market, customers, of we Ultra responding I beginning laid match out. think that’s and sort partly coming now met mix both March, how is but of whole competitive and we so our and see the

good So, I feel the strategy. yes, about

Yes. your a what phrase – timing in question it part flows, that’s cash I to here, your And you you question, in and used of seeing. think factor on we’re Brett, absolutely

back pandemic. of of normal it’s those receivable of associated we impacts which volumes things went volumes to return that And more we were. seeing through we’re the but where levels, now headwind, couple the to a really side the just temporary of creates we as getting came years, some the actually couple with some on through with So had tailwinds lower last the

You up device the levels pre-pandemic we’ve actual one-time else. incredibly to device those over were core years. loans getting benefit continue we’re lapping. really are XX%. We up anything benefit think quarter here said Therefore, balance strong. rather certainly it’s Those that saw to on payments back helped customer the ago in than in more activations subsidy with sheet, but about payment all We year money the payments a was out Customer there. That an be number the that levels.

of us I that. have then inventory more side, on the there. we’ve run that inventory to return have taken here. sheet But levels. And with over the that we’ve time normal pleased the as strength to we would it We’ve So to looking obviously, disruptions normal the be of some managed we’re very levels advantage higher balance through seen

of this factors question flows overall just you strengths your be timing to competent as those very So I in in expect cash be the business to the that said continues produces. and

question a time typically I in inventory on lead given just inventory I towards? you have how guess levels? I correct. would the that’s mobile of the that that based much levels on follow-up you And what general, say versus extra yourself quick was at building curious manage Can the current just assumed devices. I’m then if

it what sheet Yes. largely coming increase in of inventory There’s balance handsets and the is in, a little of the certainly see bit side you on. from so an there

we to little in marketplace again more we appropriate us a in that going supply in the the as that good we’ll so there bit there which we environment accordingly. more So But think in. thinks it’s is – speak, and chains operating have certainly everyone’s become predictable adjust that cushion something position given a the gives system forward,

you. Thank

next Angela, the Brett. question. Thanks, we’re ready for Great.

from of next ahead The go Please question with comes Philip question. your Cusick JPMorgan.

to sorry. around March of April. wireless want and last the I Hey, question the and softness adds gross on sort in follow-up industry

How how we out. sort is related issue, issue? higher. up is addressing the you. impact you industry for which it thoughts is an a raising to industry on of signal that which consumer, your if to ramped what think of were be starting adds don’t issue do or at AT&T you’ve software a to consumers for does promotions second sounds more do like this is then think trying So the And And margin creep prices see you Thank up? calling looks I you wireless slowdown gross Do churn think about prices that your like inflation? potential inflation that share

Thanks, Phil. question overall I’ll little about adds the and will fill in macro a or you gross bit with start had. the Matt maybe

we of as so mean so a inflation. of it. far much I impact Matt of said XX But high in in seen I haven’t inflation, prepared mean the remarks, years On course, this an the is

all planning are we for scenarios. So

prepared it We have plans what to takes. be for

So impact us, we do again, will in clearly with have cost But but this type of inflation don’t can looking levels before of adjustments, we industry. also how of course the what never wireless will these that different we seen pricing. include into know but

also already measurements we that be it. of a way So needs in the good thought have doing course, ready that plans through to and and we are for

going finally. going economy inflation. know moment impact levels But it of the are how this a very really are, don’t But comes see we to in to Matt? going to are the where clearly, what’s in So we we is course, when to high happen.

bit has a change out a in there Yes. tell Phil, I around we stores, just would the data question that your foot that tick in not the it there. street. see but so expect share you share where Certainly would just be in we’re our to any of believe there we is Look, that our nothing seeing to in what continues been there. down But up high and overall traffic, down be. suggests

about with good we good and levels, strong very if are and be versus at that. competing indicator a levels historical to always very the that’s continues feel of effectively we churn clearly Our these churn

and continuing we overall to so. share fair continue do our to to expect get So

Great.

Okay. Thanks

ready Thanks, Angela, question. Yes. we’re the next Phil. for

Flannery question. Simon of from Please comes Stanley. ahead your Morgan next The with go

you’ve doubling in your I and talk that. Thank QX came numbers wireless. we much. fixed right. about Earlier in well if about very you All of could wonder ahead talked the quarter, you

you open wherever you strong I it demand. about think there’s up talked some

footprint year. some you So quarter? Has it’s be just markets is and QX still that through rest Thanks. some perhaps up this ads maybe of good a just And give colors. by light those out? thinking end to off got the is what – jumping the long point for been How $XX lasts going of how the you’d about the the today So point once we more that of year? the price accelerating are and address what us the for

Thanks, we in five focused of growth beginning for since on one Simon. growing that course see vectors No, the no, we of the of momentum us very of even the is and clearly met you’ll this are March.

sale the we in we too, into is sort quarter wave we’re urban, we as on suburban, of clearly, deploying houses coming is good LTE the and for good urban course of next in And quarter we’re have a good. the millimeter course, turn with us. sale, in was and as more So of is now rural. say, momentum and Then, C-Band really the and in more businesses for

heard is we here, where that in remarks, onto. have now even really my XXX quicker saying on are have coming also in we opportunities. year, which us C-Band gives me megahertz. have the markets we’ll And even you this an only prepared also early XX is customers as clearing more more frequency now clearly, that So coming But is additional

as been a this of the We the management, and this all network on do sort well. we have to of have. while. to that for So momentum is the And propositions. through this comes from pricing it way adding all remember, And capacity building the we provision working know how

I market. will we’re also in offering. see think And giving good as and right look sort always a price we the making have of offering the is the what the a value always that’s the is a combined of But into which standalone type our good at customers. point, we wave we moment with pricing right –

numbers. see I think the we’re value giving in a and great we that’s what

momentum So from was Investor Day to ago. ambitions March, yes, continue the see quarter In in are we the of hammer great reaching beginning quarter the beginning that think I we orbit. out and constantly all this our five we’re time have vectors that that this our wasn’t long-term into will outline of of we we the having as this a to growth coming going

Yes.

So just on there. a of add couple things

think course, building Simon, of up motion on have had came a are That product. in we in C-Band. that sales volumes of you you new quarter full that’s And So of teams sales the time the a first the period January. of as not about the remember, selling middle where quarter,

wireless pricing started standpoint, you continue a can numbers think first the said, through certainly think So And the Hans as should look as pricing to in both the we’re products we it’s we’ll and good us standalone for from see a it quarter. is what continue And also customer, who’s On of proposition basis, for it’s customers, price, as year. rest that that – with saw from you opportunity XXX,XXX but we the point the just but go the price about you us the maximize to at there getting mentioned as higher well. a well. for taking value also

you. Thank

Angela, Thanks, Yes. the question, next for Simon. we’re ready

Bank of Barden David from comes of question next America. The

may You your question. ahead with go

question ads in escape a half the something. be If my Hey that in quarter for at It we the has And guys, feels numbers, industry an some valve respond the of much be would than to like your I first so cable the year. broadband guess, taking normal to maybe or a questions. pressure preannounced. access reason is more or numbers because look the fixed going wireless fixed thank to you the exists be T-Mobile’s connectivity net to and unless a access. on respect program normal putting that there’s wireless with affordability

the how to the would talk wondering was market. had going in second if on the market wireless whether wanted about really a margin respond broadband would So you little potentially talk and a with dynamic the a most time I how to was cable the of question we when maybe network could was they calls, if I little a prices took and Hans, Verizon we there could charged kind And share. kinds of share. about these whether the take best is and be wireline evolve bit think you And question highest give market or the little a

can translating on investors much that’s deploying. now But C-Band donor many And reward. how that You phones in terms tangible have we’re something financial guys we’re it’s celebrating not are into we of obvious how the quarter. celebrate and XG every share

too? can So we a bit about talk little that Thanks.

for response to similar I access, But is I this of our a and from not fixed wireless I’m users. ourselves product. what Yes. sure start access talk fixed someone. The Fios mean the is very quality can the We usage with wireless will be high the

to fixed is minority in this cases primary a vast comes the the when wireless of usage our So all access.

means our we So expanding broadband case, C-Band our before, that definitely very and That compete this households. as be and we’re well nationwide And for we’re more mean the more doesn’t that to very going and Fios. as product this sale market. quality to focus that we in grow product our in footprint, continue a we said doing is address saw because is well our a on also with high strong going this are in we we’re have open year, quarter, to on Fios more again, the ILEC have. the that And this you And Fios. can our

believe us, for only we create that that So products quality high we that we as then customer create are and optionalities, the supporting. but wants we

good feel quarter. I our why broadband out that’s first So about national in whole that strategy the we laid

with So that. pleased really I’m

look that question, Day. Investor well think at and about second I I talked our think at we The very we our business when

time and we this that. based best the and business over our do in no of to network is And C-Band. on levers started have network we is doubt focus our about the nation, different with improving course, and with Our just grow X% just that

well. this of should quarter of different shareholders the what done top investments have over. of So on over in to network think X%. be we that’s excited And in course, excited I to that, go type And the are you to we then we super have. order grow that and And see as

on are actually We those executing levers.

Investor translate are as our to will which the on Day. the of in we line is top and We and vectors, ahead see the that outline both great bottom on certain plan line

So we remember, a from wireless in are built how all all a with our our see a network, to on high play because of type nowadays will conditions have continue enormous but brand, on have And and portfolio, all any all our meet we the the of that to actually can we end we And it. see premium way of premium I market fields that. of we prepaid strength. and sort economy in network that, the the on own top the of is offerings, scale that’s our we which

I we’re you where feel can good feel we to really that going and compete tell about I it. going I mean, well. So Matt? where say we’re have just good we and

think piece year. had this just comment Hans’ do gear result, happy and onto better want one XXX,XXX to phone than last can I higher ads we last with there, certainly battery a next while year. find I was If The XQ never year we a always in

So you continuing there. progress to make us see

Thank you so much.

next question. ready Angela, the for Yes. we’re

Please Rollins Michael question next of your Citi. question. The ahead comes with go from

Thanks morning. and Two good questions.

your of in And wireless specifically I non-C-Band unpack the if possible you and growth, environment. is could of to each plan back of of lower and But was you’re comments some the curious some rate different EPS, maybe mix. you that First, gross at describe look performance seeing and around for guidance difference When to be service just when commentary. of more operating levels markets mentioned updated curious markets secondly, you just C-Band the going sensitivities specific, you and revenue can end ranges some upgrades, of if then those guidance of you any. the handset ads, EBITDA Thanks. and what is if there your

quarter. the the turn the and started beginning C-Band C-Band reasons, I we the see used obvious and C-Band. more basically we in on start mid remember, the excitement of Yeah, markets upgrades. we with more in we’re where can some of But the the within also are for

the customers in and that the year just and we’re big beginning, So network make is the on there see time. turn when our consumers enormous difference this performance a clearly over but on C-Band

out So is the far, but excitement there. clearly much, so not maybe

Mike, it, see of the the of impacts end some lower and nature delivering Part obviously also terms it’s volumes the see competitive is so we On us of in of as the service wireless of that revenue. through but guidance, you as you that the on environment, the think of range that.

our the views well on impact by XX% our a so shows amortization customers, that as the views has And think in we EPS that increase days as for course impact then we in impacts the the I the That interest revenue guidance does activations the my service see over has that everyone strong the Fed we’ll also as of through a the have year-over-year impact interest also come has that obviously but excited in of of so promo from and XX probably wireless of that the expense the well. So hikes impact digit mean also certainly year. and about see as but whole guidance those result probably it’s low-single and course that there. year commented EBITDA start and prepared as inflation on through EBITDA guidance, that will the EPS plans from at come basis was obviously an higher on EBITDA people’s remarks evolved EPS

we’re of aspirations in confident the all that the we growth of vectors feel produce items. each those in and So the across deliver the this we’ll have. very still impact year a in number momentum of the business We year factors building to the that long-term results

Thanks. It’s helpful.

Yes. Thanks for ready Mike. next Angela, question. the

your question. Please ahead with go MoffettNathanson. of Moffett Craig from comes question Next

Yes.

So in you’ve particular to thinking in streams. the how are about times growing outside about How wireless does P the P current How revenue edge traditional phone. on new it not business kind I’m forecast? we the that see guidance network private XG the you’re your the much if revenue year? for lot your mobile I dependent times a the the, or much subscribers comput; in as of sense Q? is moment think that at and either Q where ARPU And much talked of growth going traditional actually contribute about

Yes. Thanks Craig.

Q so think we to you postpaid as you when about up got X.X% that the the P it, mentioned, on times side. So you look ARPU at

on do and We’ve up, on continues the, certainly of So good a strategy. see job about in getting a executing more to plans. customers side. premium The of see team there you a talked stepping continuation the customers that

of on also this an in year accounts as time accounts XX,XXX ago. You this wireless increase more see than we number mentioned a year year-over-year, the

we of but to growth about the just what and is P one really comes talked the we vectors times what them. So this at five Q there Investor about talked of Day, back having works, there

to with now machine XXX,XXX said the that, we’re in in in impact but line on see ads increasing base got having the building we’ve obviously in XXX,XXX therefore and with you exactly revenue wireless get we of you this the kicking quarter, within into getting addition increase, opportunity the more mobile a we should first really net that And what base continues about also in as but world. IoT, just XXXX, space, and out in with that’s the what momentum machine the access In MEC compute over said. on we obviously base year talked edge that’s not that line the fixed for we and started. then that The now, meaningful have we laid to things scope to XG just there, a like and BXB

we continue too. of going side see add to as our then to On network see here, that growth expect value TracFone continue as vector monetization that prepaid we go the forward to and and we we the integration expected in

Hans? across people ability other we feel absolutely and across still mobility vectors more have the you’ll of extends grow with all those. see think than to starts we that other growth So but into very that one, the confident

see had that you compute edge more and we talked in that ecosystem there. And in remarks, that. as mobile on mobile private the prepared build the in bit clearly the have I we now leader think a in little but to we we and then coming engagement People think No, the pioneer the the the edge market compute, and networks beginning networks before. adding on market whole bit private the the on with definitely little XG

clearly bit it’s funnel, a enterprise now we’re revenue, relationship only come year. I little be new next meaningful our building that higher going that see as not a before us with more of So that’s to I and we this said build to course making and are But BXB for when definitely it, year this to a way traditional customer.

we the all we going beginning So, we we’re solutions to edge from have do then one built the we fibered. but network can different private for smaller off and solution pay solution unified have for see is show big customer when use to is the remember is network, at network, of going what data network groups. to which the type we many the so And networks. XG from where the feel different the remember the society of lot have we’re really network built about This the cloud the also years we and year five broadband center how it a and importance the next good our of about and mobility clearly to talk edge We how comes you built and for on seeing the basic also I time XX this businesses and of to and doing, in cases, SMBs people.

I good I feel it. about placed think so so this, we’re well in

Craig. Thanks,

Thank you.

Angela, Hey, for the next question. Yes. ready

go Please with next comes question from The Doug of your ahead Mitchelson question. Credit Suisse.

what’s Phase attractive you. out building and C-Band pretty so intensity? through just sight Thanks get line trying X Is on Is ambition of for there clear on Thank much. long-term beyond that Phase returns the Just XXX Phase capital your that? million I’m that? a there the build a is C-Band curious long-term to to POPs. the out X X and timeframe

from right expansion now BAU a lowest course had, have that we up. know, the is we is we’ve I over clear already on intensity, course is that capital XX%, now, more as C-Band, more will the which – XXXX the down. BAU peak that investment you have And of will there to but and comes think we’re it network. that’s In prepared we have moved levels done continue. below have of then decade, the ambition in very that coming it the is When outlined Yes, we so year to clearly we coming and XXXX, a have we then

in XXX only XXX megahertz at XXX in many we’re using will million But then in remember XX up XX XXX now mostly we megahertz, the average covered of come means to course this the year. have megahertz. least we nationwide that and areas, now far, we’re and earlier also POPs markets. topping of we’re in next megahertz so and So And adding that will the network pieces with rural that doing other

So in order of extremely things can be competitive do. spectrum else we this that invested nobody course in to do and

it, intensity. better change to done we’ve do continue sooner comes going that but we it profile of So doesn’t included, the when out it to That’s capital but to we going that do we’re it, clearly is. I and laid advantage investments take to Matt the and the the

Yes.

add So little Doug, bit. onto that just a

demand If usage continues grow customers the every about network and think year-over-year true that’s geography. network across on you to

all we within nationwide, we rollout did to as areas a here. CapEx as our XG rollout in that we to as with our do saw possible we initial soon thing LTE envelope the the the LTE launch So you Wideband as got get to we of we’ve expect our what you and of way overall customers you And to out and ago. should out from described that’s no should did with decade us experience that expect more C-Band same difference customers, C-Band rollout, get of with how XG same think as the the all Ultra

All you. right. Thank

Doug. question. Thanks, last we’ve Great. Can we for one Yes. time Angela, got question, the do please? more

Yes.

Bank. your Deutsche with Kraft go Bryan ahead with Please from question. comes question last Your

guess the I Fios. more then Are March and mix that ask of April. would past up I market and any strength call in March you separately, terms business. the to overall if in Or ask or wanted based? postpaid is it consumer recently softness you seen quarters both morning. in talked few I your different segments change composition just any that you’ve there of and over underneath in pockets seeing And you pretty of on the good you in to been pressure wanted weakness broad about Hi, a that of you’ve ad of phone, first the gross out follow April? And

for the fiber that ILEC year. got given do upgraded broadband across giving economics XXX,XXX been the you that pace I years, to Fios Fios? this the to hasn’t wireless a in approach to of Thanks. industry? think be footprint to improving that think to accelerating majority few you’ve Or next past over better vast a fixed premises increase consideration what seemed just Are way is your you any

I because can customers. one will I second the start come the I it, to with wireless remember and

from the the are as to an this And year, opportunities for allowing So on product. for XXXX. XXX,XXX you’re right, customers we continue open increase look sale to Fios will is which expand our

that. is – the So we when are on working fixed doing limitation there That’s we access. with we’re of course outside the the no that focus in ILEC of expansion predominantly wise

quality fixed for ultimately that’s a business either a in for to can in on used want high or catering Fios. we’re access be need and give So wireless everything home to you that what we products on broadband

to So and course to happening, magnificent, last demands, of we compared if as our year, on is we we’re we rate see increasing going it’s but clearly Fios Fios on continue capture see customer that great. this year depending accelerate to

we we now end is We’re a really Matthew on remember wireless, Matt strong for on a step That thing I me said, the so our the our and as to of on that there. it same upgrade do it. questions, to But guess the I that our remember constantly. customers wireless part probably XXX% for is strategy quarters need in example, that is and SMB, then will that and When the had see support strength ups. comes customers at the to don’t one time continue that we’re base seeing a clearly of doing when many segment we’ve

not don’t have I seen So Matthew from maybe before, more big than we’ve is something a that. think sure previous that difference but quarters I’m

Yes.

Verizon performance quarter. to strong continues each across And throughout the that across the very fairly quarter. in parts ads Business and apart on do gross first of Tami’s the side, site, sector, So as on even business of public really terms Group business, March the and growth those small April enterprise, said there in comments terms volumes, the breaking areas. of the Hans consumer But predominantly in of VBG particular nothing particular consumer are those about double-digit

and a side as we we foot at perform into traffic side, continues a business the little QX throughout fairly lower head but saw level here. consumer on the to quarter the So even

Got it. very you. That’s Thank helpful.

Angela, Brian. call. finish Thanks, Yes. you. Thank the we’re to ready

for Conference Services. for conclude and call for this does gentlemen, and the today. Thank conference Verizon using participation your Ladies you

may disconnect. You now