Verizon Communications Inc. · NYSE:VZ
Verizon Communications — Q3 2024 Earnings Presentation
31 slides from Verizon Communications's earnings presentation, Oct 22, 2024
Slide 1: 3Q24 Results & Broadband Update
3Q24 Results & Broadband Update October 22, 2024
Slide 2: “Safe Harbor” Statement
“Safe Harbor” Statement In this presentation we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operat
Slide 3: Important Additional Information and Where to Find It
Important Additional Information and Where to Find It In connection with the proposed transactions, Frontier filed with the SEC a definitive proxy statement on Schedule 14A (the “Definitive Proxy Statement”) on October 7, 2024. The Definitive Proxy Statement and a form of proxy card have been mailed
Slide 4: Hans Vestberg
Hans Vestberg Chairman and CEO
Slide 5: 3Q24 Highlights, Strategic Update, Results and Capital Allocation
3Q24 Highlights Strategic Update Results and Capital Allocation Q&A 5
Slide 6: 3Q24 Results: Delivered on our three key financial metrics
Momentum Broadband 3Q24 Results in mobility growth Delivered on our three Postpaid Phone: 239K net additions ~4.2M FWA subscribers: 15 months ahead of target key financial metrics Prepaid: 11.9M total broadband 80K net additions2 connections 1 Wireless service revenue ($19.8B, 2.7% YoY) Scaling priv
Slide 7: 3Q24 Highlights, Strategic Update, Results and Capital Allocation
3Q24 Highlights Strategic Update Results and Capital Allocation Q&A 7
Slide 8: Strategic focus on the core business
Strategic focus on the core business 2025+ Extend 2021-2024 industry Strengthen leadership 2018-2020 assets Build the foundation 8 8
Slide 9: 2024 strategic actions extend industry leadership
Customer-first offerings 2024 strategic Transformative Refreshed brand actions extend Actions Extend Planned Frontier acquisition industry Industry Tower transaction leadership Leadership Agreed to acquire UScellular spectrum Enabling the AI ecosystem 9
Slide 10: Unmatched scale & differentiated value proposition
Unmatched scale & differentiated value proposition Consumer + Business Mobility Broadband America’s best wireless network Fios leads industry in Net Promoter scores Satellite partnerships 18M Fios1 + 60M FWA2 premises covered 144.7M connections 11.9M connections myPlan + B2B myHome + B2B Uniquely po
Slide 11: Accelerating broadband expansion
Fixed wireless access target Transformative Accelerating Doubling subscribers by 2028 actions extend broadband industry expansion Fiber target leadership 30M+ passings by 2028; 35-40M over time (including Frontier) 11
Slide 12: Joe Russo
Joe Russo EVP and President of Global Networks and Technology
Slide 13: Doubling FWA broadband subscribers by 2028
Doubling FWA broadband Fixed wireless access growth plan subscribers Homes and businesses covered Subscribers ~90M by 2028 ~60M ~8-9M Building ahead of demand Mobility-first approach ~4.2M Strategic deployment of 5G ultra wideband High customer satisfaction and NPS scores Additional opportunities to
Slide 14: Growing fiber broadband passings to 35-40M over time
Growing fiber broadband passings to 35-40M over time 7M Verizon Frontier 18M 1Homes and businesses, assumes closing of Frontier transaction 14
Slide 15: Building network for consumer & business growth
Building network for consumer & business growth Radio access network Fios access network Mobility-first approach Expected annual build rate: 2025: up to 650K passings Accelerated Ultra Wideband deployment Post-close: up to 1M+ passings FWA solution for multi-dwelling units Technology advancements en
Slide 16: Leader in mobility & broadband with owner’s economics
Leader in mobility & broadband with owner’s economics Mobility plan Broadband plan 5G UWB pops covered ~90M 35-40M from 270M ~25M 1 FWA homes and FWA + Fiber Fiber passings businesses covered to 300M+ over time 100M+ homes and businesses covered over time 1Assumes closing of Frontier transaction 16
Slide 17: Sowmyanarayan Sampath
Sowmyanarayan Sampath EVP and CEO of Verizon Consumer Group
Slide 18: Two engines of growth
Two engines of growth Mobility Broadband Continued momentum on postpaid Momentum in FWA + Fios sales Value business turnaround Differentiated myHome proposition Focus on churn improvement Sustained growth in ARPU Margin accretive add-on services Increasing availability Balanced price + volume = Sust
Slide 19: Broadband plan for all segments
Broadband plan for all segments FWA Fiber 1 ~90M 35M - 40M homes and businesses covered homes and businesses passed Easy to buy and install White glove experience High NPS Performance Price / value Reliability Differentiated offering covering 100M+ premises over time 1 Assumes closing of Frontier tr
Slide 20: Choice, value and simplicity
Choice, value and simplicity 20
Slide 21: Differentiated value proposition
Differentiated value proposition myAccess Loyalty VIP Lounges Concert Presale Red Carpet Premieres Music & Sports Access Verizon Store Adjacent services Protection International / Travel Home Family Financial Perks Live TV Entertainment fios tv myPlan myHome Value Unlimited Ultimate Unlimited Plus F
Slide 22: Two engines of growth - mobility and broadband
Two engines of growth - mobility and broadband Execution driving continued momentum 22
Slide 23: Tony Skiadas
Tony Skiadas EVP and Chief Financial Officer
Slide 24: 3Q24 Highlights, Strategic Update, Results and Capital Allocation
3Q24 Highlights Strategic Update Results and Capital Allocation Q&A
Slide 25: Continued momentum across the business
Continued momentum across the business Customer growth and financial growth On track to deliver 2024 financial guidance Expect positive consumer postpaid phone net adds for full year 2024 Strong free cash flow1 provides ample funding for capital allocation priorities Positioned for strong 2025 perfo
Slide 26: Disciplined capital allocation strategy
Disciplined capital allocation strategy 1 2 3 4 Investment in Commitment to Strong balance Share the business dividend sheet repurchases ● Network capex ● 18 consecutive ● Continue to pay ● Efficient return of ● Spectrum years of dividend down debt - made excess cash flow to ● Acquisitions increases
Slide 27: Hans Vestberg
Hans Vestberg Chairman and CEO
Slide 28: Well-positioned to extend industry leadership in 2025 and beyond
Well-positioned Best network and unmatched scale Differentiated value proposition to extend industry Expanding the total leadership in Prudent capital allocation addressable market with owner’s 2025 and economics beyond Wireless service revenue growth Adjusted EBITDA1 expansion Strong free cash flow
Slide 29: 3Q24 Highlights, Strategic Update, Results and Capital Allocation
3Q24 Highlights Strategic Update Results and Capital Allocation Q&A 29
Slide 30: Verizon Leadership
Verizon Leadership Hans Vestberg Chairman & CEO Shankar Arumugavelu Leslie Berland Samantha Hammock Kyle Malady Joseph Russo EVP & Pres-Global Services EVP & CMO EVP & CHRO EVP & Group CEO-VZ Business EVP & Pres-Global Networks & Tech Sowmyanarayan Sampath Stacy Sharpe Anthony Skiadas Vandana Venkat
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