Verizon Communications (VZ) 24 Oct 232023 Q3 Earnings call transcript

Good morning, and welcome to the Verizon Third Quarter 2023 Earnings Conference Call. [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 the call over to your host, Mr. Brady Connor, Senior Vice President, Investor Relations.

Brad. Thanks, and third everyone, call. earnings to welcome morning, quarter our conference Good Chief Skiadas. Brady by Vestberg; Officer, our joined and as Officer, Chairman as I'm I'm Executive our Connor, and Chief well Financial Tony Hans

our affect Before we to of presentation. Slide future statement, like expected forward-looking and begin, is subject Information risks on in can found factors of contains safe results statements future that attention be filings about financial draw Discussions may our which website. Verizon's X harbor your which I'd to that the this presentation are in and SEC, are results on and contained to the uncertainties. with available events

GAAP measures. of to the non-GAAP presentation in detailed measures our measures financial quarter certain materials This our posted comparable Relations Earlier Investor these review posted are Reconciliations we contains of this morning, third on included to financial a non-GAAP website website. our directly the most results.

details materials will in You the Investor additional on Relations earnings find website. our

With turn to over that, Hans. the I'll call

strategy the and Thank Business segmented, profitability. strong bottom quarter working. we're to our pleased and share making to results, strategy that quarter agile both the provides executing third our solid line. morning you, clear our is our that growth In customers and with good It Consumer everyone. improving to and I'm Brady, a is groups, another value

in to disciplined grade the flow. achieving wireless delivered have a results on: This the have that growth areas We us evidence way. and right we in you each revenue, financially are asked free is EBITDA we our service strategy and cash of

me share let our Now quarter. for the financials

X.X% our for relationships. quarter, which service growth a year This customer and by QX driver is $XX.X wireless expanding last driven and quarter the year-over-year, third key both for than higher revenue sequentially. of revenue is is EBITDA billion adjusted up Our deepening

our capital free investments. thanks share by taken heightened flow and year-to-date of financial of exceeding years for our fiber I intensity our free recent year already proud C-Band to $XX.X to the cost further to and focus of revenue efficiency promotion the driven growth, position actions flow of is strength. disciplined on CapEx full cash that my have strategy, Our reduction team cash I'm high-quality XXXX, billion and

strong deliver reduce debt, enabled generation Our cash our net to our us shareholders. strengthen sheet higher to balance dividend a and

bring our acquisition to working levels. ratio are pre-spectrum We to leverage

dividend During quarter, the paid record for XXth third debt down year, current billion that consecutive our and $X.X in. pride we take in a industry increased the we

flow very our payout a is ratio cash coverage XX%, significant a is Year-to-date, healthy. dividend free year approximately dividend from Our ago. improvement

the in morning, XXXX of for details In strong. XXXX. on Tony uncertain And more the start an that to moments. financial a we guidance you few we're free deliver provide flow issued are at finish economic in will of the summary, pace announcing higher will environment, on we confident We're you spite that this cash of year. guidance

and achieved at customer Consumer put to strategy private quarter, to more share In we do. on our broadband growth the areas: we and our center scale by on units key everything delivered adds me networks, sequential mobility, forward. technology our advantages. net let improvements continuing we In phone postpaid driving the year-over-year network, are of Now the mobility, in business and how thanks our

consumers like want activity flexibility than Rather choose our how engaging products and and industry, use others to we're optionality offering services. promotional to in the in aggressive they our

approach but grow in off paying us more and with Our gross differentiated work position and promotional approach is financial profitably. done, our to discipline growth lower phone adds is to segmentation cash cost. postpaid subscribers of responsible There be

that Since giving personalized our choice control the customers experience, they and a to deliver value, its May, in launch want. myPlan continues

Ultimate adding just Unlimited, flexibility During and the by example ARPA speed one third This further to tier and and our of a enhanced with what about is I'm market mix growth. more services, come. to is premium value third myPlan and quarter, provides, excited the increasing we myPlan that

approach continue served Our and customers' XX a iPhone needs market during us with well our segmented execute eye and launch, to while meeting approach. the disciplined also targeted towards maintaining an we

phone competitive we're net anticipate from We continue net is stronger the of on last year. QX now our Our delivered phone track will in of positive postpaid to position momentum as September. and consumer we that exceed adds month postpaid adds

stable, with pricing our targeted throughout phone Postpaid are churn levels even actions the year.

is continue next and a is watching something trend to upgrade will we're see which for expect levels, we carefully, continue the We muted quarters. few

Business Verizon adds were and consecutive delivered on phone an Businesses to year. reliable XXX,XXX place connectivity only quarter mobility. that governments Across to debts last net continue above reached Business to ninth XXX,XXX. provides. mobility, emphasis XXX,XXX Verizon and compared net Turning postpaid increased Group our phone X,XXX best-in-class,

finding the the add industry quality variety innovation, cannot and service offerings new have ways customer in customers that to of and still partnerships We largest through and are a competitors base match.

between we our allow have quantity base business, before, As value we're grow optimal us and we the had volumes, quarter-over-quarter negative to by seeking I'm our price discussed encouraged improvements. balance but that our In profitably.

invest part to growth the will the to As we of it said before, value continue market. adjust is I've strategy, the our business in and of key needs a and

for committed last business. value volumes, believe bottom mentioned seen daily prepaid grow have working the we and quarter, our we team As the to and we is

by the strength X.X the ago, increase. a quarter broadband. a Critical for We is in. more fixed million in you XX% of to than with XX.X we more to know subscribers something another subscribers We delivered wireless access, new finished than year subscribers, QX million a with area this key believe Moving deeply XXX,XXX row. fourth from quarter strong broadband up

net Our further even the fixed for with increase XXX,XXX wireless customers, of for strong, recent of continue new product. bundled access be our to the evidence $XX demand adds

share Fios XX,XXX the Internet also high seen Promoter side, I'm and Net FWA Where quarter, of as up for to even to excited mover best and we the continue by a in XX% the almost take service, had is performances coveted, adds numbers that, it Fios year-over-year our it our and we take on and net available, customers in remains Score. love years. deliver share lower environment. X strong high-quality one a

the of we differentiated each are funnel for helping to When networks, continue the provides private network see to the to to product a those for quarter. licensed it increasingly grow which us demand with and our spectrum, comes grow, installations users. and the number solutions, built end more especially secure solutions scale looking sales for private Businesses experience

our the talking by end our network. me Let about backbone business, of

early to our C-Band delivering already is cylinders to leveraging spectrum. we more we're all obtained spectrum through During markets where upgrades, X In remaining and deploying, urban full quarter, software access the debt. potential third on C-Band Xx firing its

customers. result, better a go enabling our experience from for gigabits second, peak XXX per amazing X.X an As megabits even speeds second per to an

our opportunity impact You've heard better me this see step say spectrum retention wireless up let for we and broadband come. as generation well with in have it fixed will our to and access. Every a the say business, strong is me giving as before, investment for again years out C-Band customers changer for customer of the it day, but our C-Band game benefits

winning. our network is And

all network row. time quality received in J.D. receiving for This wireless regions, in a U.S. for Power quarter, the the awards award XXst we X most

the best will deployment. our are network and complete our as lead extend we we market, We the C-Band in

First, in rural key This our and and of augmenting everything markets. next do. areas and the urban year is suburban center differentiator we

across opportunities while business, returning our our as Business network all emphasizing when new in a wireline. responsible profitability way. a new doing within to and We're of this usual optimizing as We're we're result And cost evaluating CapEx. our levels structure efficiencies of of like finding business by both

program track meet our on XXXX. billion efficiency cost of $X $X to remains to goal billion annually Our by savings

operational Tony turn Now let performance to over our the me in discuss detail. to and more call financial

good morning. Thanks, Hans, and

Our continue third growing to demonstrate free progress quarter cash our X towards wireless flow. and EBITDA our priorities: results revenue the and driving service for

another for losses improving said, financials. Consumer phone maintaining improving on sequentially we the representing our improvement plan for results Hans XX,XXX our on discipline, XXXX. meet to while about performance operational to our of executing third financial we financial quarter demonstrates postpaid the key and metrics are point XX,XXX compared an We've net deliver year. prior guidance quarter, proof can remain XXX,XXX with As that totaled talked the and and strong track

the During of switcher growth well in executed a year-over-year. X.X% environment, low quarter, gross phone we enabling add postpaid

pricing result billion actions in Our after postpaid X.XX% phone annualized of represents a churn XXXX. over of implementing stable even $X

upgrades. helped to the market postpaid promotional our lower structure segmented phone and adds strategy to deliver approach and of and discipline gross Our strong postpaid the

high, remains quality elevated Consumer X.X%. The The consumer as basis business drive upgrade $XXX.XX we by to are of XXX continues and of year-over-year. quarter's X.X% in down premium X.X% increased writing by Consumer year-over-year third is of the sequentially myPlan mix. ARPA an rate points

ARPA further result deliver well a to expect as growth of innovations most pricing as recent We actions. our myPlan of as the

with delivered quarter as Verizon our another Business XXX,XXX mentioned, quarter consecutive phone above XXX,XXX. which, ninth Hans net strong is adds,

more than priority a macroeconomic While customers. and year investment businesses mobility a to cautious business continues our the environment for uncertain is are ago, be top

continue public relationships share market and to medium for customers. deliver to our large leader enterprises by position volumes and our expand and strong wireless as We business, the expect small leveraging

drawn pace FWA of fourth adds XXX,XXX a quarter continuing both for net broadband. Moving Customers and the are of proposition delivered in the and service to Fios. the our quality overall to on row. We net additions, over for XXX,XXX value

subscribers. fixed of for continue the to tranche long-term base million momentum X.X as work a XXX,XXX drove we the FWA gross build The adds business. spectrum to will growing quarter expansion sustainable nearly of help addition For us the second wireless, our C-Band adds net

of value Fios adds pleased retention, and the the reflecting with XX,XXX XX,XXX, with gross of success year-over-year. the We're and quality Internet overall adds up strong were product. net Fios

quarter. For XXX,XXX second prepaid, from the net represents losses of improvement

and the the some our teams expect a such brands, continue Total to on remainder our for better integration trajectory year execute of Visible the Verizon, scale as ongoing as key and We efforts. by of

and be revenue service billion, third declined equipment up targeted was Total wireless approximately as pricing XX%. decline revenue, lower more access. quarter at the revenue was selecting postpaid plans in Strong revenue look million unlimited Let's premium fixed X.X% upgrades sequentially. which from wireless Consolidated to our than benefited prior for up $XXX wireless $XX.X now down billion, year-over-year X.X% the was customers XX% The year-over-year. growth actions, year, and $XX.X financials. can attributed

headwinds basis promotions approximately lower points a upgrade revenue as total partially year-over-year. by discipline growth in offset result pressure prepaid, amortization. growth further reduction saw was by volumes, associated from a service our we Additionally, wireless XX and This of to promo service revenue around which reduced with

XXX improved basis volumes. of Consolidated increase of the sequentially was margin the and $XX.X prior an approximately adjusted year-over-year, up and from EBITDA postpaid wireless by $XXX service driven points excluding EBITDA billion, quarter Consumer due to Operating and and Adjusted lower in compared million X.X% upgrades. primarily improved year. expenses, by X% lower equipment were reduced year-over-year, cost upgrade down depreciation revenue items, to amortization special primarily the

the While with up the once again bad is first was year-over-year, consistent half flat of debt sequentially it year.

our implemented to make continue having as We Care Customer within Business Consumer group on cost transformations recently efficiency Services. well our as program, progress Managed

deliver million $X.XX to building of the from track to of EPS pressure interest was to We clearance early includes currently savings fourth anticipate XXXX. $XXX of to the on $XXX in due momentum spectrum. are in quarter. incremental capitalized reduction in in pressure savings XXXX, $X.XX a generate million $X.XX and another of Adjusted C-Band to $X.XX incremental We

working to payments performance to improvements flow partially billion. and $XX.X $XXX upgrades is year. fewer with XXXX from payments. capital the billion, due up the continue third by approximately primarily for to million healthy bringing cash year, prior total throughout was with Cash levels, year-to-date offset year-to-date the quarter the $XX.X Customer attention activities The lower be associated interest inventory the to performance to operating compared Turning higher flow. consistent

billion end in in for upper of of expect come totaling guidance $X.X $XX.XX At at to CapEx CapEx year-to-date. quarter $XX.XX our the billion came this billion, XXXX to at billion. range the we $XX.X point,

our at operating quarter run consecutive rate. second the business-as-usual was quarter Third

we result, CapEx billion prior of of expect As XXXX compared in $X the would year. a a approximately reduction to

cash billion Free billion, was for our the $X.X year. flow over year-to-date quarter $X.X total bringing prior the billion, a to improvement third $XX.X

pleased first flow year in Hans cash business, on of year-to-date have our As quarters our of we of XXXX guidance are than Based the to all cash the more strength our mentioned, and by in results flow this free billion. billion than raise XXXX. core we more to $X generated $XX X free

absorbing and our We upper expense. with raising at from are even interest range guidance the the end CapEx headwinds of

provides priorities. flexibility flow cash and enables capital allocation Strong us free our on to deliver

$X.X a we within successful increasing debt said, was also Hans quarter, of dividend our rate, As the again. tender, while a once floating majority which billion third executed

we given clearing billion cash in Additionally, using position The our payments of paid business, costs minimal performance approximately $X.X the the be operating primarily made remaining month XXXX. will and are this cash flow. spectrum spectrum of and

Net billion unsecured cash I of $XXX.X the debt with $X.X lower was billion, which at ended the $X.X quarter on hand, an end quarter of from billion $X.X the clearing the to are using of and billion second the We of quarter end year-over-year. costs we described. pay just improvement

improvement debt adjusted as X.X a quarter, representing X.Xx end was of unsecured consolidated of ratio Our the EBITDA to net turn the third year-over-year.

operational and pleased financial Overall, trends. I'm with deliver ability to our stronger

XXXX. financials, setting in up on focused year are meaningful finishing opportunities improvements strong and We with volumes deleveraging us for continued in the

back his now thoughts before turn open it call to for closing Hans we will your up the questions. I to

the I'm give Tony. has quarters confidence X and operating of progress you, us. over made, results in our the you team should proud Thank last our also

on delivering of financial be. are several metrics, key to them We restoring our our ratios want and leverage targets we to schedule where are on ahead

industry-leading, and a growing our generation rates. that and than flow million broadband XX have great network more have we subscribers, cash is record and We number free near at is

enter in and our strong wireless deliver XXXX, we goals flow. clear: of quarter As are service growth EBITDA free revenue, final cash the

reliable disciplined quarter. best and our XG to to of is Our most expect we is continue approach all network. mobility segmented and America's Consumer in working, the and this building fourth Enabling momentum

even excited has already spectrum I'm and C-Band benefited and this C-Band resilient, broadband. the and lie ahead. opportunities network remaining will Deploying mobility stronger the make more Our about that

Let me close with this.

all great our year track and to Our XXXX. on position performance with our place to our financial meet We're of execute into firmly team full XXXX a head has put well to assets in us excited us approach as targets strategy. we and

that, hand questions. With the Brady for I call back to

this we're morning. to ready questions take Brad, Hans. Thanks,

[Operator Instructions] JPMorgan. today of And from come Cusick the will Phil first question for

if buying in And might Two, what stability lot flow dividend payments, will for growing C-Band a then, if spaces fiber or fiber the about of think have from free market? about M&A the prevent than wireless what obligations about And next I wireless making other a we in you cash Tony, Hans, can. after should follow-up, there's speculation how delevering? of any talk can pieces year? And relocation the or lately, assets the you and that? the interest criteria you so, in be as

there to I incentives flow seen I mean, flow, will start for and is and first cash I'll years on hand it revenue last the you set all have Board, expansion, much our and I very service expansion, focusing the us our Tony. long of are cash the the EBITDA think over now management short from term. both on couple and

and through continuing key we generate a is the will are flow. you this Tony puts talk to that to lot So thing takes. see a of cash us for

I Regarding Fios of from. fiber. well. I we our our of build footprint, mean clear love In extremely fiber a assets, strategy. lot the first strategy of was course, Doing all,

right fiber now, a Outside, build our wireless any take You for quarter the the it's a footprint. them saw couple Because markets, get in product. network. again, to years. don't we And own strategy a clear need to superior fiber want major broadband this of quarter, subscribers. fixed now subscribers see access. that to over record we we with We're now, we we that Right adding a right have Fios our Fiber basically One of all on

the is telecommunication it. we good network, dispose time, we a will that have talk course, any into I will us, we around the of hurdle technology. to have assets in mean high. and great Over a market but would anyone look And our really strategy always

I'll on very start we generation, so far, third where we're are cash quarter. So in the pleased the with thus

discipline end with to us saw, by the So as performance with and had $X cash with range the the The that's you of and billion confidence with interest expense. of promos we and $XX upper gave of CapEx more the higher the the we're pleased guide than cash and continued Business, at raise free retention generation the the to Business. also flow that billion,

about balance heading next year. into very we the our So good positioning year feel of the and

on at aspects not going free qualitative some XXXX. we're share time, can Obviously, as I to look XXXX this guide ahead to flow for but we cash

as CapEx, the focus of that said an in On the focus team. we that past plus and to is improvements billion to that's to then profile, With $XX for business EBITDA expect side, couple in respect to And continue times we usual on make at of from we the run the team a to back improving capital. $XX.X we us. spend the billion level here strive which XXXX, working seen a of also you've to continued

both higher and the taxes, going reduction interest continued phaseout then are by offsetting you expect out. to pressured bonus current we know, depreciation, then And and spectrum. with taxes of that, from environment from clearing plays as in And the interest be due costs C-Band early of the that under the capitalized we'll the how to see legislation, rate

strong and continue heading focus we cash any don't flow delevering. And see generation opportunities so debt for reduction, obstacles into to on XXXX, we and to meaningful free

Phil. Thanks, we're the Great. for Brad, Yes, next ready question.

Flannery of The Morgan next question Simon comes from Stanley.

talked you Hans, wireless. fixed lot about a

fixed Can target just XX recognized how the of You've today, or we so you've what the bit talked C-Band. think the still And help get little about tailwind you there? come? a for tease you taken what -- wireless update be Tony, out pricing a got then, you've actions into about footprint to some sequential talked so about are QX? And are and kind you the think how have of the Can sale updated going benefits and the households that you open million that you rest of QX, where in to you any for far. I of you've us some

can start fixed access. with I Simon, files

are As quarter. to a we couple of the sites. continue you then C-Band The XXX,XXX, and in can next quickly for part And weeks also more course, deploying early access where And will and just with that's every will underserved our rhythm of extremely greater will have that markets, the into already markets. those because areas. of areas, initially see, come we opportunity even an wireless additional XXX,XXX that we rural got there in start year, suburban urban augmenting our on straight fixed ago we go us

will fortify our we situation that So roll to how want out. and just this I to want

subscribers have a We million target X to of that. keep We by X million XXXX.

what deliver to We well as we we course, nothing that the for Of we're that But the internal way market by do to our a always target to then team, have have we and it. else course, now, that, dimensioned right the tell and we were past And when market. network me. that have of there's deliver going we want set about more. to this want are targets conversation

your September mobility, incremental And & $XXX on pricing, saw. year-over-year the Mix And of and in as in improving a The we we benefit you executed -- question will improvements actions, of yield did Simon, on quarter. there. fourth so about earlier on the Match million see volumes a also on pricing that here. number few things We legacy

from wireless an fixed see also We access. contribution increasing

X.X net You in base. million with -- million X.X almost in the adds, growth our with the subs XXX,XXX saw quarter we had

momentum So good the about we feel very there.

year. progress setting well us very revenue service up So and for good next on

of John from The Hodulik next question UBS. comes

Just X questions.

prepared First few into or for number I in next see of to range. X mean, I expect remarks, come questions continues same the suggested sort Obviously, you of X% Hans, that to you guess upgrades. quarters. the sort there. that down solidly your on the

back of this the guys business it given you on rate? churn some it view, of as Any some really And really you that First then that normalized or numbers have issue the like secondly, is driving sort and C-Band any to your temporary rate adds seeing comments what business. And then your all, update gross your that out. some is is things that doing on in for in what what And out? it? as C-Band what -- is past, will doing you Are do and you improvement rolled a for roll gets in low for go there? metrics think still

Thanks, John.

we everybody as that, we sort the the are of actually when of in now couple butter meet to upgrade has rate upgrade, offerings, with lower gets not customers that different segments right quarters, seen of Consumer on driven a have everything. the our we a where we approach course, On as segmented started spread for peanut our try doing side,

is see me just our So really And trying to grow is have we to gross us. that adds is are for right continue giving that the our for we confidence offer what customer.

with have the we the myPlan. in right So together offering market

fourth always customers that is only general, that's very the it's is because us But our helping not course, and flow focused the with in see Verizon. here at right that line a the on seasonality. quarter and bottom a I upgrades Of helping cash this that, But generation both normally is our we're offerings. working, with little bit higher model

lower C-Band. same top We regions. discussed C-Band, increased it, see before. churn better We access. then the fixed deploy have And the we And as we see then we wire on in of we those where things see on step-ups

there's on difference So no that.

and -- ago. gotten have Seabank we out, thing. that's we think the to of I excited of So continue all And couple just C-Band by roll a weeks so same hold here why we're

next Feldman question Brett from of Sachs. comes Goldman The

ARPU, postpaid some it's was give could into you're Coming looking hoping of phone those about next and bit I don't And component your drives as maybe ARPA. ahead next how back drivers. little ARPU growth an year important thinking know clearly we're revenue drivers insight into but what into report us digging you you year. a to service I

give in you like? do most into the is And maybe need what -- opportunity be are the some And ARPU mix for? you tiered make the further to base? the still being are So looking us pricing plans account still there for might any adjustments the example, see headwinds insight you Could taking in see you continuing be are among then emerging to that highest popular? dynamic we to

level. And spoken the first start plus. phone wireless. we far So offering about XXX,XXX haven't on again, on me more business side, net total all, in we mean, side. row let for I But business so a to about actually high XXX,XXX adds, need much ninth think the of the quarter than had our the

are is customers have. doing they network So really on the the of the good distribution in that a our performance and market where high-quality on looking side really we

So that I'm like I it. I say with and pleased -- very have would to

we On to think how in the myPlan the we took like can consumer broaden within have customers, decentralization, this always with with give the for customers incentive model and third the year found the on fixed quarter. since the this on we our to discount the group or done with is Then sales side scope did plans, to helping proposition. us All new the to earlier network the we added and wire on changes for access that in mobility us right have to we away look we value order on and myPlan our the convergence tier I Consumer market. [indiscernible] side, go be

have customers. So but we really an offering will that right the compelling that it, think at it's to we is to now nothing our I -- is most continue look because important

some on thoughts the revenue just your on And question, qualitative for service you. -- Brett, then,

the On the year would took carry plus we quarter obviously have into look, year. fourth side, pricing I actions and the say, a over in tailwind this next

Consumer I to improving Also, expect earlier, do as see profile an So in volume the there. momentum we we continue mentioned business.

that focused on. very team that's So is the something

wireless continues scale. to Fixed access

So there. Hans continued as taking is as myPlan. away net as premium the mix adds, momentum the even well, with increased another And so I mentioned XXX,XXX strong discount earlier, said, and

starting ease had and XX% premium of that there. mix, and discipline primary seeing all from to to starting So the we're we're some the myPlan a a year. headwinds the also little good function very amortization this which bit, news seeing we've the is flatten And progress of with out, pleased roughly is also that's

continues And that's then prepared be offsetting prepaid as a near the term that, as improve ongoing. to work continue remarks, in to the the business, headwind we and we in still to mentioned

of revenue. So those are the service terms

next of comes Michael from question The Rollins Citi.

its those unpack customers will prepaid, Curious would be much could and taking the great thinking which an come then targets XXXX well through in migrating of ways Verizon just postpaid some as to cost-cutting can through of on timing if integration And of you the and just how separately potentially those versus over your XXXX, opportunities achieve about how TracFone, update is the as Verizon look on of benefits and XXXX. base. prepaid in them to in

you, Mike. Thank

the a we The X we On are as Xst of us year, the HL. talked -- that cost we're together target, the you seen on see have follow started you side closely, it. that with structure. new new traction to January. million have X services for managed We we lot probably, when the on of And definitely worked about we on launched track million ] delivering on this the structure [

the a customer have We transaction side. care done big on

We are bringing doing We're into a more AI IT and It's a on side. of lot ongoing. of the to things the transaction lot the care. network customer

the a is the best others back I the cost across find and all that the And we see side. supporting I in finding given are that confidence are Services, all have to efficiency one comments we high the the the organization very savings along company. Global Verizon road need, on now, to can prepaid, that So maybe come some company measurements on right more the and we Tony high that has we have traction

a of Hans Thanks. mentioned. that Sure. couple points And other just Mike, additional

that this XXXX Hans So on to to contemplated $X lot in $XXX year deliver initiatives. $X guide. $XXX in million the was that million of already and will the an said, to come EBITDA, a we're as billion in billion, track mentioned of

item very by in disciplined is we're Business deemphasizing low-margin other wireline mention would The I deals. being

the very that very, team as well. something on that's focused So is

at And saw that's 'XX year-over-year quarter driving time. to good in EBITDA for that We're the not in the both foundation But EBITDA are and profile improving that cost good foundation targets improvements, improvements. set going this going for have it we a sequential and you XXXX. to we feel give with an

segment a value prepaid half were in on, the low said remarks, phone, the sequentially should as we track here first in at 'XX. And On start point of we in the and we improving. from prepared

is wireless. possible, view, the we We sort as point for being a a there being want our little of from as have of #X customer important course, the prepaid, strong build between And and all transformation know bit we to and has on prepaid. really And adds the value have important. Then this connections Secondly, the for in prepaid that market blend part address market many is segment on entire and that strategy. net and means volumes end been a low not in lower. which of the of of been postpaid that is some taking the

us the is up to want That's value great to that, by doing have we move high-end are what in new So we also have one, a a to going building operation, opening which Verizon, help now but which seed a lot, the customers own we're that postpaid our for proposition. doors. do Total right but a up is on

you're we of has. And DISH with other And pace have the continues things. retailers our work lot offerings with finally, in a that it we Secondly, are we're fortifying see then our that we working with store. that seeing the national to

continue overall us here a improve. of that it's is clearly, will gives sequentially strategy. for ongoing And very lot our confidence but important that this -- to So we

Bryan Kraft Deutsche The next comes of from Bank. question

of of sustainability on and, of cell of trajectory lot debate regarding I served the of networks by course, unit macro fixed wireless to continues economics a broadband have There be the a usage sites fiber. question radio given fixed access wireless. versus

So really, as time? usage a the deployment, occurred scalable I load all fixed the of can wireless your developments about this X wireless have over started And of the how technology? couple One, since are fixed at secondly, this wave at evolving guess, thinking questions. over you And or you number what customers fixed network have access years delivered millimeter next assumptions the point optimally changed waves regarding millimeter year? wireless you in with

beginning, assumption And even improved thought our take that capacity. only means the technology inning than on software improvements and are we the more our And wire has more because we on fixed the of first, on first yes, on the access our we network. changed from that optimization can has

I equally Fios. think it. with Customers the is job a on Consumer Joe his it and much are team on using the as side, fantastic doing

there's So different usage. no

have we great think with I the forward technology. So a path

it when still not everything radio software et we seeing comes can access wireless And fixed are improvement, to we cetera. development, do with

made I no the that hesitation have over assumptions actually we're we So assumption having today. better

When reasons. for it is many wave, comes role playing us for to that a millimeter vital

areas. it the very the And several spectrum to for that's all unleashed also in the all, order but high-density virus in important First takes performance of capacity. reasons. on access. I in of They street, have take majority mid-band fixed better a

vital role. continue millimeter play So will a wave very to

quickly we're course, with very opportunities address using over of market built see sort MDUs several On we that, for augmenting our millimeter said access. to for see all of in top see of lot fixed of that where times, that virus we major now places. have we a wave And traffic. we also we As time

all a more all, capacity. we even of in with serve and better performance evolution see technology more lot we customers can have to that So still even

you I'm self-install. quick to the have And on fixed So chart. happy. love NPS it. mean deploy. easy. It's wireless the access, customers very our as It's score I It's is seen off

I push our gets right with we product, products. with the think it see it to customer So we team the and this clearly hit and want

The comes next from Louthan Raymond of Frank question James.

statement much reduce going if how being the was then fixed to X capitalization and the interest from to the to are for type where far addressed. this and Quick Can thing? And apologize of quantify wireless costs expense question, income you of as I from as that utilize circuits secondly, you Great. able help C-Band? sort

yes, -- with wise I will and Tony question. great the start can fixed access

on fixed access for a we're both of in of we the focused being access, way for wire fixed consumer customers, which has sell transport wire different and -- barrier is lot usage also, this optimizing in segment small of Sometimes large see enterprises and discussed the which fixed a wireless Kyle And great. broadband. for has business is access he of many as -- and a cost cases. pattern, Today, for sort medium access we well, times, also several a our having by solution

I So move total clearly, a able, that wireless access quarter, at continuing serve technologies about a to -- built the lot at access network fixed network, Consumer And harmonized cases. fixed talk of again, the add network wireless can Kyle serve a can the use And different use different but will have the in this the edge lot fixed customers how a look our access of well. use from the access in have wireless network, center we of numbers have you to cases the of edge all our customers. to of we tend And if lot is business fastly or order data. from have to beginning the And this case, he's type be data many then we as the to segment.

on licenses. And then pressure $X.XX interest the pressure from interest. the interest of got saw time the And of capitalized estimate we then, we Frank, quarter, for to about from the the question, fourth quarter, from $X.XX we $X.XX capitalized capitalized in

helps. that hope I So

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

if Two, could. I

goals that successes been. and networks, beginning your what you what you really a your broadband doing being said Hans. networks. heard things: Just very the mobility, you're we haven't were successful are, of one, in first X private call, the have at really private about lot At what the And

big would care a Verizon is elaborate could at, bit the what why super you if about should that of little being helpful. be it's that things and X on one we good So

second is, the then Tony. And maybe for this is

how quarter? the subscriber Just we given elaborate after to continue? growing, -- quarter in from? bit the on be that a just I just coming success you that, been guys Consumer And you Like on could assume little bit. Business, But touched the that's adds having postpaid isn't that have where that successful can net is it should little continues we think phone in that quarter after so a it Business the

Thank David. you,

question. network, concept are we the in happening is network private to go What is of commercial. private good right that yes, proof the now doing to On a

then up like in company, ramped then one let's sort logistic all. We when in do We're big And fantastic deals quarter. have more one a more say, have logistics works, every and of center small. getting make WiFi it They a starting funnel. it you They it start they and start pretty substitution.

We to are moment. many to phase that in up in of the one that ramping do at

What done, have we done X have we important. things very

the the an times do of We secondly, actually cut And for different modem, have can commercial capacity, have to customers proof that it's it. on and our latency see them changer for phones cases. is game And a that infrastructure, very clear concept lead radios and products, deal. security of the also the shipset, when we ecosystem now serve low they use

So that's it. why we're over excited

in overall TAM different We're enterprises different great to We're and technology, private we that is distribution area by to that see 'XX. going what address in I across see how Verizon been for is revenues is important is new that country. for significant never a impact on 'XX. a this to an we've running not any industries, networks This spectrum. can going into. has see an our the use opportunity we large our this With But is total

lot it opportunities of pay it. we why coming that's a attention and a with to to of lot So

network before would talks And that the our do our I and criteria mean very is if you buying one a important reliability ask or main any reason the of the in segment. business enterprise SMB about the Tony? we best. is of say I that's best. well customers why so segment the And performance customers, is and continue just our network wireless, Tony the to

Sure.

continue a We're team. Dave, demand That net And results to is from a in and in And do it, and the the enterprise, businesses the certainly uncertain anything saw of the said, We certain not uncertain during would but couple And Verizon across seeing medium we and validate that pleased XXX,XXX again biz, healthy over So that certain small, we public adds we're strong results XXX,XXX and significant. times. strong see not immune network, board. trust environment. phone performance be even to saw pressures sector quarter, sectors, in the and year-to-date. things. we're as very a Hans with Kyle great economic

that disciplined you chase we're very are deals tell unprofitable. would that being going I bad standpoint, we're competitive a not and to from And

in had The in at FWA mention and other would third thing volumes pace adds also a net and I year-to-date. we strong quarter is continue XXX,XXX Business, the XXX,XXX over

the have next fourth and as into quarter heading for great we So we up momentum set year. here

just more And Tony. if apologize. I and could, you, one I Thank

all The are you with X the made choices got in how people been seem you team Are the moving direction. of happy results and kind work. right So Hans, put -- it's to months since now? reset you you the the be right to

very I'm with choices. the happy

and Sampat, the week, of out we change one did make think had in seats from team in I always, a X you think, swoop, change, leadership we alignment and a when as X quite think is first big the guys which mean good the I from change was Joe, I the well. the to what executing important, all need of and results you the units. operational can which do Tony I X the we And and see Kyle, are extremely way right very sort now.

these I'm to deliver So going with good. really take even on happy it. them though I'm pressure but it, and guys harder, They are hard push they

doing on I'm no, choices the team the is well. So happy and

from Moffett The comes MoffetNathanson. of question next Craig

that industry wireless what talk Tony, what terms scales? have you can benefits stream and in we as about that just the if of revenue you're you should small revenues start what out onto how and And having as to about Charter to talk contribution traffic could potential potentially think your networks? cells of I that's Comcast their just more And Tony. -- margin then cable to offload own you strand-mounted wholesale getting with then from accretion starting wonder you? risk about Maybe roll

Okay.

So a few things here.

the network. you an those for with said It's have the as that we we economics with cable I that's any and the with MVNO we as So It's can't discuss our a tell the agreements And are the and Hans happy but agreements with strategy we'll is it's companies. comfortable growing includes and business arrangement, commercial deals particular What very can that monetize commercial as important you very us, deal, of for go. times, us. profitable to business are consistent far very as accretive. we're the many know, it's

ready next for we're Brad, Craig. Thanks, question. the

The Venkateshwar from comes Barclays. question next from Kannan

fixed wireless in when into aspiration that Hans, XXX,XXX, kind of you, of other into with terms you you C-Band, think talked next of is and terms your have is the it momentum guys expand terms are of you couple may there business, growth year kind about with to you there a times some balance number, Maybe, the footprints, you're a So kind XXX,XXX? goalpost heading about the framework capacity in it have aspirations you XXX,XXX of the have? of any used capacity Or there? as that for you've in that the of does network go -- that a of the kind thinking about to you have

Kannan. you, Thank

local where of what wire deploying there. I work on said can now, for decentralized the also I've per we fixed read local government mode we work because and the all We we also address and it's sale the work go-to-market, have our funnel community, see them it access, with right have with this. the that of region regionalized fixed-wireless a in actually our our times we capture the we like open can markets demand through with as efforts a quarter stores. that putting or in XXX,XXX and And think operations of on sort we to taxes, couple our the

we model So we it's that good a have right now. think

one you, back some our investments of tell to as that the the how physics, no laws possible. in And here There also. holding to can are roll customers can as get C-Band. I C-Band out there's we order soon But quickly

whatever going were think to any help type of with I have or that, that goalposts will reaching mean, goalposts that forward I at as market. And communicated the continue levels So we look us will well. we to

of The comes Williams question from Greg TD next Cowen.

launched you quarter similar one, improving last you First as the to well. Hans, in markets, KPIs the C-Band mentioned when

And Just here on levels? hiring see the what reports should just second in rates thinking on feverishly the these media sort churn of from even M&A one, or match you're C-Band wireline then up optimal of the as of if it's suggesting sort on side. markets And bring your Maybe that improvements because or just your thinking side, I'm this the high not would side, hurdle, about opportunity the fiber-to-the-home build. but you on builds there. organic we beat

Okay.

rolled out also And the you're KPIs, that have step-ups. the C-Band, correct. share. expect On we course, we of can better We we retention better take and

in access both in opportunities C-Band. Consumer side with the this market side, the the fixed think the sides, I to and and we with wire Business we see as come

it planning on here, going our So there teams share and very we forward. focused are are do gains is to

question not doing in first on that. we I of you how mean, second Fios. with this all, holding I was great quarter ILEC, The we're saw around fiber, back guess. are our And

fixed Fios, access Outside our is anybody Fios on market to capture We do will see continue to even before primary wire invest remotely what build a in and customers. Fiber One the else is to strategy to do. the That's we our there.

right cards I to not access now. But would if as time, the said, that's another over optionality Then got have I have I over time. technology in

technology meet can broadband, lot. can the there the We have demand wants the quicker customer out, which quicker field all come the the that's is out And right a the out we now. our we and capacity meeting the that in and

time for question, please. one have more we Brad,

Tim of last Oppenheimer. question come from Your will Horan

running Can X% the and ability next X%, Because inflation and year, these how accelerate we're about and the few pricing you years, not leads the cash much is flow? seeing for And industry last really is above inflation free yourselves monetize both growing revenue about here? talk again important is the to growth. to all is probably GDP

industry kind needs monetize the think do to investments? you to be of the for all done what So

talk for I ourselves. can

very having ourselves. and actually that our the At bottom both in I we our side we our line right in think are for generating time, offers in side, a same are where both Consumer are moment we monetizing customers. Business segmented, and for by we the being

I So new included we where has that's also some adjustment, think customers. have for but that price our we are. And values done

to we given now more have moment right little are our probably to bit not the we track a business going think I have of now. price a quantities, that coming we're only in

our but we're, out our of with time. our taking we're Tony customers, costs doing the also then same broadband us. to we're at adding out And course, the helping growth, right that said, for doing is And shareholders. that which then balance So going as also for right

our the why higher the even So that's as the this well from or flow CapEx how headwinds guidance, year, interest cash we we work. And on can as rate. high the we're on lift guidance, for end that's free -- though

little tells about propositions how confident that retooling the model that the have feel But happened. you it's something So and bit now if can have. now, we a about we in how we right of our feel business, right the market, we we sort

time view that? to that? do of And EBITDA related a Do debt to have just back kind you that, I remind us what to you you to how pre-auction frame on And want -- levels. know get

Yes.

so business. Board can increase our that allocation net we're continue And capital we work debt they dividend. X.XX is what was to put to down, said Number and one, going our want So continue a that in Number have we of us. to to for goal is of to come two in before primary a a ratio EBITDA. is to our invest way to our position

on thirdly, we our When debt. will conversation paying years a are buybacks. XX start we're of ratio, that down we And We about consecutive having to increases. come

do as program time. a to not or consecutive want to something. we over It buybacks, be But one-off has

a yet. the we But So to job. not team tenders we doing the the we're $X.X talked quarter used with great -- have about Tony this pay debt but that is there billion done.

with right cash flow continue now. to do So that we the that will we're seeing

a Brad, here. Yes. the before few call, it want Tim. over back turn closing statements I to Hans Thanks, we for end to

to moment address lives to I Palestine to long-distance escalate claimed Verizon, and and the weeks. texts past terrorism supporting in continue innocent the has relief civilians. organizations Israel many to of charges donation we the condemn has crisis region. efforts, the At Verizon few that committed violence humanitarian a stand and all The to want U.S. over that Before in forms we million has for to a waive take international Foundation calls against $X the close, its so continued and we from

into will what In My connect hope and meantime, that we divides as not soon need a us, move to is us. a what resolution peaceful as together as we to the come society possible. lean

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

now disconnect. may You