Verizon Communications (VZ) Q4 2024 Earnings Call Transcript
Here are the specific viewpoints from the earnings call:
Bullish Points:
1. Verizon delivered on its financial guidance with 3.1% wireless service revenue growth and 2.1% adjusted EBITDA growth, both exceeding the midpoint of their guided ranges.
2. The company generated strong free cash flow while absorbing higher taxes and added nearly 2.5 million postpaid mobility and broadband subscribers in the year while expanding margins.
3. Verizon ended the year with an industry-leading quarter wireless service revenue of $20 billion.
4. The company added nearly 1.6 million broadband subscribers and grew market share in 2024, led by continued success of fixed wireless access.
5. Verizon was the only U.S. carrier to be named a leader in the first-ever Gartner Magic Quadrant for private wireless services.
6. The company raised the dividend for the 18th consecutive year and continued debt paydown, ending the year with a net unsecured debt to adjusted EBITDA ratio of 2.3 times.
7. Verizon's AI Connect strategy and suite of offerings are intended to meet the growing demand for AI applications, leveraging existing assets in new ways to service this technology revolution.
8. The company has a funnel of over $1 billion leveraging existing infrastructure for AI Connect offerings, with major players like Google and Meta purchasing capacity in Verizon's network for their AI workloads.
Bearish Points:
1. The wildfires in the Los Angeles area have caused significant devastation, impacting Verizon's operations and requiring extensive efforts to restore service and support the community.
2. Verizon's fourth quarter free cash flow included approximately $2 billion in proceeds from the Vertical Bridge tower transaction, indicating reliance on asset sales for cash flow.
3. The company made severance payments of approximately $600 million as part of its voluntary separation program, indicating ongoing restructuring costs.
4. Verizon expects promo amortization headwinds to peak in 2025, which could impact financial performance in the short term.
5. The company continues to face pressure in business wireline revenues, which could offset some of the benefits from other growth areas.
For more information about Verizon (VZ)'s earnings call, you can read the relevant news: Verizon Communications (VZ) Q4 2024 Earnings Call Transcript
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