EX-99.1 2 a2024q3exhibit991.htm EX-99.1 Document

Exhibit 99.1

verizon-logo.jpg

News Release



FOR IMMEDIATE RELEASE
Media contacts:
October 22, 2024Katie Magnotta
201-602-9235    
katie.magnotta@verizon.com
Eric Wilkens
201-572-9317
eric.wilkens@verizon.com


Verizon delivers strong third quarter results with customer growth in mobility, extending industry leadership

Achieves fixed wireless subscriber target 15 months ahead of schedule and double-digit growth in total broadband connections

Company remains on track to meet full-year 2024 financial guidance

3Q 2024 Highlights

Wireless: More than doubled wireless postpaid phone net additions year over year
•Total wireless service revenue1 of $19.8 billion, a 2.7 percent increase year over year.
•Retail postpaid phone net additions of 239,000, and retail postpaid net additions of 349,000.
•Retail postpaid phone churn of 0.89 percent, and retail postpaid churn of 1.16 percent.

Broadband: Achieved fixed wireless subscriber target 15 months ahead of schedule
•Total broadband net additions of 389,000. This was the ninth consecutive quarter with more than 375,000 broadband net additions.
•Total fixed wireless net additions of 363,000. At the end of third-quarter 2024, the company had a base of nearly 4.2 million fixed wireless subscribers. The company reached its fixed wireless subscriber target 15 months ahead of schedule, which is a reflection of the product's popularity and customer demand for high quality broadband services.
•Total broadband connections grew to more than 11.9 million as of the end of third-quarter 2024, representing a nearly 16 percent increase year over year.
•Fixed wireless revenue for third-quarter 2024 was $562 million, up $215 million year over year.
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Consolidated: Sustained focus on profitable growth
•Total operating revenue of $33.3 billion, essentially flat compared to third-quarter 2023.
•Consolidated net income for the third quarter of $3.4 billion, down from consolidated net income of $4.9 billion in third-quarter 2023. This decrease was primarily driven by severance charges of $1.7 billion related to separations under the company's voluntary separation program for select U.S.-based management employees as well as other headcount reduction initiatives. Consolidated adjusted EBITDA2 for the third quarter of $12.5 billion, up from $12.2 billion in third-quarter 2023.
•Earnings per share of $0.78, compared with earnings per share of $1.13 in third-quarter 2023; adjusted EPS2, excluding special items, of $1.19, compared with $1.22 in third-quarter 2023.


NEW YORK - Verizon Communications Inc. (NYSE, Nasdaq: VZ) reported third-quarter 2024 results today with customer growth in mobility and broadband. The company also continued its momentum in its three financial priorities of wireless service revenue, consolidated adjusted EBITDA and free cash flow.
"This has been a pivotal quarter for Verizon, with transformative strategic moves and continued operational excellence. We continue to deliver strong results in mobility and broadband, and we are on track to meet our full-year 2024 financial guidance, with wireless service revenue and adjusted EBITDA trending at or above the midpoint of the guided range," said Verizon Chairman and CEO Hans Vestberg. "Our new products — myPlan, myHome and Verizon Business Complete — and our brand refresh are resonating with customers. Through our pending acquisition of Frontier Communications, and our agreement for Vertical Bridge to lease, operate and manage thousands of wireless communications towers, we have set Verizon up for disciplined growth, now and into the future."
For third-quarter 2024, Verizon reported earnings per share of $0.78, compared with earnings per share of $1.13 in third-quarter 2023. On an adjusted basis2, excluding special items, EPS was $1.19 in third-quarter 2024, compared with adjusted EPS2 of $1.22 in third-quarter 2023.
Reported third-quarter 2024 financial results reflected $2.3 billion in charges related to special items. This included a severance charge of $1.7 billion related to separations under the
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company's voluntary separation program for select U.S.-based management employees as well as other headcount reduction initiatives; an asset and business rationalization charge of $374 million predominantly related to the decision to cease use of certain real estate assets and exit non-strategic portions of certain businesses; and amortization of intangible assets of $186 million related to Tracfone and other acquisitions.
Consolidated results: Financially disciplined, consistent with overall strategy
•Total consolidated operating revenue in third-quarter 2024 was $33.3 billion, essentially flat compared to third-quarter 2023, as service and other revenue growth was offset by declines in wireless equipment revenue.
•Total wireless service revenue1 in third-quarter 2024 was $19.8 billion, a sequential increase of $70 million, and an increase of 2.7 percent year over year. This increase was primarily driven by pricing actions implemented in recent quarters and growth from fixed wireless connections.
•Cash flow from operations year-to-date3 totaled $26.5 billion, compared with $28.8 billion in 2023. This result reflects higher cash taxes, as well as higher interest expense primarily driven by the decrease in capitalized interest and higher interest rates.
•Capital expenditures year-to-date3 were $12.0 billion.
•Free cash flow2 year-to-date3 was $14.5 billion, compared with $14.6 billion in 2023.
•Consolidated net income for third-quarter 2024 was $3.4 billion, down from consolidated net income of $4.9 billion in third-quarter 2023, and consolidated adjusted EBITDA2 was $12.5 billion, up from $12.2 billion in third-quarter 2023.
•Verizon's total unsecured debt as of the end of third-quarter 2024 was $126.4 billion, a $1.1 billion increase compared to second-quarter 2024, and approximately $70 million lower year over year. The company's net unsecured debt2 at the end of third-quarter 2024 was $121.4 billion. At the end of third-quarter 2024, Verizon's ratio of unsecured debt to net income (LTM) was 12.3 times and net unsecured debt to consolidated adjusted EBITDA ratio2 was 2.5 times.
Verizon Consumer: Seventh consecutive quarter of year over year growth in postpaid phone gross additions
•Total Verizon Consumer revenue in third-quarter 2024 was $25.4 billion, an increase of 0.4 percent year over year as gains in service revenue were partially offset by declines in wireless equipment revenue.
•Wireless service revenue in third-quarter 2024 was $16.4 billion, up 2.6 percent year over year, driven by growth in Consumer wireless postpaid average revenue per account (ARPA) from pricing actions and continued fixed wireless adoption.
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•Consumer wireless retail postpaid churn was 1.07 percent in third-quarter 2024, and wireless retail postpaid phone churn was 0.84 percent.
•In third-quarter 2024, Consumer reported 81,000 wireless retail postpaid phone net additions, compared with 51,000 net losses in third-quarter 2023. This improvement was driven by a 5.9 percent year over year increase in postpaid phone gross additions. This marks the seventh consecutive quarter of year over year growth in postpaid phone gross additions. Excluding the contribution from the company's second number offering, Consumer reported 18,000 wireless retail postpaid phone net additions. Verizon expects to have positive Consumer postpaid phone net additions for full-year 2024, with and without the contribution from the second number offering.
•In third-quarter 2024, Consumer reported 80,000 wireless retail prepaid net additions, excluding Safelink, Verizon's brand offering access to government-sponsored connectivity benefits and programs.
•Consumer reported 209,000 fixed wireless net additions and 39,000 Fios Internet net additions in third-quarter 2024. Consumer Fios revenue was $2.9 billion in third-quarter 2024.
•In third-quarter 2024, Consumer operating income was $7.6 billion, an increase of 0.8 percent year over year, and segment operating income margin was 30.0 percent, an increase from 29.9 percent in third-quarter 2023. Segment EBITDA2 in third-quarter 2024 was $11.0 billion, an increase of 1.8 percent year over year. This improvement can be attributed to service and other revenue growth partially offset by lower upgrade volumes. Segment EBITDA margin2 in third-quarter 2024 was 43.4 percent, an increase from 42.8 percent in third-quarter 2023.
Verizon Business: Continued mobility and broadband growth
•Total Verizon Business revenue was $7.4 billion in third-quarter 2024, a decrease of 2.3 percent year over year, as increases in wireless service revenue were more than offset by decreases in wireline revenue.
•Business wireless service revenue in third-quarter 2024 was $3.5 billion, an increase of 2.9 percent year over year. This result was driven by continued strong net additions for both mobility and fixed wireless, as well as benefits from pricing actions implemented in recent quarters.
•Business reported 281,000 wireless retail postpaid net additions in third-quarter 2024. This result included 158,000 postpaid phone net additions. The company experienced sustained growth in phone net additions across its small and medium business, enterprise, and public sector customers throughout the quarter.
•Business wireless retail postpaid churn was 1.45 percent in third-quarter 2024, and wireless retail postpaid phone churn was 1.12 percent.
•Business reported 154,000 fixed wireless net additions in third-quarter 2024.
•In third-quarter 2024, Verizon Business operating income was $565 million, an increase of 4.8 percent year over year, and segment operating income margin was 7.7 percent,
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an increase from 7.2 percent in third-quarter 2023. Segment EBITDA2 in third-quarter 2024 was $1.6 billion, a decrease of 3.7 percent year over year, driven by continued declines in wireline revenues. Segment EBITDA margin2 in third-quarter 2024 was 21.8 percent, a decrease from 22.1 percent in third-quarter 2023.
Outlook and guidance: Verizon is on track to meet financial guidance
The company does not provide a reconciliation for any of the following adjusted (non-GAAP) forecasts because it cannot, without unreasonable effort, predict the special items that could arise, and the company is unable to address the probable significance of the unavailable information.
For 2024, Verizon continues to expect the following:
•Total wireless service revenue growth1 of 2.0 percent to 3.5 percent.
•Adjusted EBITDA growth2 of 1.0 percent to 3.0 percent.
•Adjusted EPS2 of $4.50 to $4.70.
•Capital expenditures between $17.0 billion and $17.5 billion.
•Adjusted effective income tax rate2 in the range of 22.5 percent to 24.0 percent.
1 Total wireless service revenue represents the sum of Consumer and Business segments.
2 Non-GAAP financial measure. See the accompanying schedules and www.verizon.com/about/investors for reconciliations of non-GAAP financial measures cited in this document to most directly comparable financial measures under generally accepted accounting principles (GAAP).
3 Nine months ended September 30, 2024.
Verizon Communications Inc. (NYSE, Nasdaq: VZ) powers and empowers how its millions of customers live, work and play, delivering on their demand for mobility, reliable network connectivity and security. Headquartered in New York City, serving countries worldwide and nearly all of the Fortune 500, Verizon generated revenues of $134.0 billion in 2023. Verizon’s world-class team never stops innovating to meet customers where they are today and equip them for the needs of tomorrow. For more, visit verizon.com or find a retail location at verizon.com/stores.

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Forward-looking statements
In this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “forecasts,” “hopes,” “intends,” “plans,” “targets” or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the “SEC”), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of competition in the markets in which we operate, including the inability to successfully respond to competitive factors such as prices, promotional
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incentives and evolving consumer preferences; failure to take advantage of, or respond to competitors' use of, developments in technology and address changes in consumer demand; performance issues or delays in the deployment of our 5G network resulting in significant costs or a reduction in the anticipated benefits of the enhancement to our networks; the inability to implement our business strategy; adverse conditions in the U.S. and international economies, including inflation and changing interest rates in the markets in which we operate; cyber attacks impacting our networks or systems and any resulting financial or reputational impact; damage to our infrastructure or disruption of our operations from natural disasters, extreme weather conditions, acts of war, terrorist attacks or other hostile acts and any resulting financial or reputational impact; disruption of our key suppliers’ or vendors' provisioning of products or services, including as a result of geopolitical factors or the potential impacts of global climate change; material adverse changes in labor matters and any resulting financial or operational impact; damage to our reputation or brands; the impact of public health crises on our operations, our employees and the ways in which our customers use our networks and other products and services; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; allegations regarding the release of hazardous materials or pollutants into the environment from our, or our predecessors’, network assets and any related government investigations, regulatory developments, litigation, penalties and other liability, remediation and compliance costs, operational impacts or reputational damage; our high level of indebtedness; significant litigation and any resulting material expenses incurred in defending against lawsuits or paying awards or settlements; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or regulations, or in their interpretation, or challenges to our tax positions, resulting in additional tax expense or liabilities; changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; and risks associated with mergers, acquisitions and other strategic transactions, including our ability to consummate the proposed acquisition of Frontier Communications Parent, Inc. and obtain cost savings, synergies and other anticipated benefits within the expected time period or at all.
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Verizon Communications Inc.


Condensed Consolidated Statements of Income
(dollars in millions, except per share amounts)
Unaudited3 Mos. Ended 9/30/243 Mos. Ended 9/30/23%
Change		9 Mos. Ended 9/30/249 Mos. Ended 9/30/23%
Change
Operating Revenues
Service revenues and other$27,987 $27,523 1.7$83,405 $81,994 1.7
Wireless equipment revenues5,343 5,813 (8.1)15,702 16,850 (6.8)
Total Operating Revenues33,330 33,336 —99,107 98,844 0.3
Operating Expenses
Cost of services7,193 7,084 1.521,064 21,148 (0.4)
Cost of wireless equipment6,047 6,353 (4.8)17,519 18,557 (5.6)
Selling, general and administrative expense9,706 7,995 21.425,873 23,754 8.9
Depreciation and amortization expense4,458 4,431 0.613,386 13,108 2.1
Total Operating Expenses27,404 25,863 6.077,842 76,567 1.7
Operating Income5,926 7,473 (20.7)21,265 22,277 (4.5)
Equity in losses of unconsolidated businesses(24)(18)33.3(47)(42)11.9
Other income, net72 170 (57.6)198 494 (59.9)
Interest expense(1,672)(1,433)16.7(5,005)(3,925)27.5
Income Before Provision For Income Taxes4,302 6,192 (30.5)16,411 18,804 (12.7)
Provision for income taxes(891)(1,308)(31.9)(3,576)(4,136)(13.5)
Net Income$3,411 $4,884 (30.2)$12,835 $14,668 (12.5)
Net income attributable to noncontrolling interests$105 $122 (13.9)$334 $349 (4.3)
Net income attributable to Verizon3,306 4,762 (30.6)12,501 14,319 (12.7)
Net Income$3,411 $4,884 (30.2)$12,835 $14,668 (12.5)
Basic Earnings Per Common Share
Net income attributable to Verizon$0.78 $1.13 (31.0)$2.96 $3.40 (12.9)
Weighted-average shares outstanding (in millions)4,220 4,213 4,217 4,209 
Diluted Earnings Per Common Share(1)
Net income attributable to Verizon$0.78 $1.13 (31.0)$2.96 $3.40 (12.9)
Weighted-average shares outstanding (in millions)4,225 4,216 4,221 4,214 
Footnotes:
(1)Diluted Earnings per Common Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represents the only potential dilution.


Verizon Communications Inc.


Condensed Consolidated Balance Sheets

(dollars in millions)
Unaudited9/30/2412/31/23$ Change
Assets
Current assets
Cash and cash equivalents$4,987 $2,065 $2,922 
Accounts receivable27,040 26,102 938 
Less Allowance for credit losses1,086 1,017 69 
Accounts receivable, net25,954 25,085 869 
Inventories2,523 2,057 466 
Prepaid expenses and other7,177 7,607 (430)
Total current assets40,641 36,814 3,827 
Property, plant and equipment327,555 320,108 7,447 
Less Accumulated depreciation220,027 211,798 8,229 
Property, plant and equipment, net107,528 108,310 (782)
Investments in unconsolidated businesses867 953 (86)
Wireless licenses156,481 155,667 814 
Goodwill22,844 22,843 1 
Other intangible assets, net10,674 11,057 (383)
Operating lease right-of-use assets23,613 24,726 (1,113)
Other assets18,516 19,885 (1,369)
Total assets$381,164 $380,255 $909 
Liabilities and Equity
Current liabilities
Debt maturing within one year$21,763 $12,973 $8,790 
Accounts payable and accrued liabilities22,222 23,453 (1,231)
Current operating lease liabilities4,312 4,266 46 
Other current liabilities13,519 12,531 988 
Total current liabilities61,816 53,223 8,593 
Long-term debt128,878 137,701 (8,823)
Employee benefit obligations12,744 13,189 (445)
Deferred income taxes45,865 45,781 84 
Non-current operating lease liabilities19,247 20,002 (755)
Other liabilities14,946 16,560 (1,614)
Total long-term liabilities221,680 233,233 (11,553)
Equity
Common stock429 429 — 
Additional paid in capital13,479 13,631 (152)
Retained earnings86,958 82,915 4,043 
Accumulated other comprehensive loss(1,665)(1,380)(285)
Common stock in treasury, at cost(3,585)(3,821)236 
Deferred compensation – employee stock ownership plans and other710 656 54 
Noncontrolling interests1,342 1,369 (27)
Total equity97,668 93,799 3,869 
Total liabilities and equity$381,164 $380,255 $909 







Verizon Communications Inc.


Consolidated - Selected Financial and Operating Statistics

(dollars in millions, except per share amounts)
Unaudited9/30/2412/31/23
Total debt$150,641 $150,674 
Unsecured debt$126,369 $128,491 
Net unsecured debt(1)
$121,382 $126,426 
Unsecured debt / Consolidated Net Income (LTM)12.3 x10.6 x
Net unsecured debt / Consolidated Adjusted EBITDA(1)(2)
2.5 x2.6 x
Common shares outstanding end of period (in millions)4,210 4,204 
Total employees (‘000)(3)
101.2 105.4 
Quarterly cash dividends declared per common share$0.6775 $0.6650 
Footnotes: 
(1)Non-GAAP financial measure.
(2)Consolidated Adjusted EBITDA excludes the effects of non-operational items and special items.
(3)Number of employees on a full-time equivalent basis.

Verizon Communications Inc.


Condensed Consolidated Statements of Cash Flows
(dollars in millions)
Unaudited9 Mos. Ended 9/30/249 Mos. Ended 9/30/23$ Change
Cash Flows from Operating Activities
Net Income$12,835 $14,668 $(1,833)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense13,386 13,108 278 
Employee retirement benefits469 161 308 
Deferred income taxes247 822 (575)
Provision for expected credit losses1,623 1,596 27 
Equity in losses of unconsolidated businesses, inclusive of dividends received62 69 (7)
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses
(2,609)972 (3,581)
Other, net467 (2,598)3,065 
Net cash provided by operating activities26,480 28,798 (2,318)
Cash Flows from Investing Activities
Capital expenditures (including capitalized software)(12,019)(14,164)2,145 
Acquisitions of wireless licenses(768)(1,859)1,091 
Collateral receipts (payments) related to derivative contracts, net(332)162 (494)
Other, net6 253 (247)
Net cash used in investing activities(13,113)(15,608)2,495 
Cash Flows from Financing Activities
Proceeds from long-term borrowings3,142 1,999 1,143 
Proceeds from asset-backed long-term borrowings8,229 4,656 3,573 
Net proceeds from short-term commercial paper— 333 (333)
Repayments of long-term borrowings and finance lease obligations(6,623)(5,568)(1,055)
Repayments of asset-backed long-term borrowings(6,158)(3,729)(2,429)
Dividends paid(8,399)(8,231)(168)
Other, net(1,668)(1,101)(567)
Net cash used in financing activities(11,477)(11,641)164 
Increase in cash, cash equivalents and restricted cash1,890 1,549 341 
Cash, cash equivalents and restricted cash, beginning of period3,497 4,111 (614)
Cash, cash equivalents and restricted cash, end of period$5,387 $5,660 $(273)


Verizon Communications Inc.


Consumer - Selected Financial Results
(dollars in millions)
Unaudited3 Mos. Ended 9/30/243 Mos. Ended 9/30/23%
Change		9 Mos. Ended 9/30/249 Mos. Ended 9/30/23%
Change
Operating Revenues
Service$19,260 $18,850 2.2$57,466 $55,947 2.7
Wireless equipment4,478 4,902 (8.6)13,111 14,210 (7.7)
Other1,622 1,505 7.84,767 4,515 5.6
Total Operating Revenues25,360 25,257 0.475,344 74,672 0.9
Operating Expenses
Cost of services4,567 4,419 3.313,554 13,218 2.5
Cost of wireless equipment4,850 5,133 (5.5)14,032 14,950 (6.1)
Selling, general and administrative expense4,928 4,886 0.915,064 14,795 1.8
Depreciation and amortization expense3,411 3,272 4.210,114 9,733 3.9
Total Operating Expenses17,756 17,710 0.352,764 52,696 0.1
Operating Income$7,604 $7,547 0.8$22,580 $21,976 2.7
Operating Income Margin30.0 %29.9 %30.0 %29.4 %
Segment EBITDA(1)
$11,015 $10,819 1.8$32,694 $31,709 3.1
Segment EBITDA Margin(1)
43.4 %42.8 %43.4 %42.5 %
Footnotes:
(1) Non-GAAP financial measure.
The segment financial results and metrics above exclude the effects of special items (other than the effects of acquisition-related intangible asset amortization), which the Company’s chief operating decision maker does not consider in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.
 

Verizon Communications Inc.


Consumer - Selected Operating Statistics
Unaudited9/30/249/30/23% Change
Connections (‘000):
Wireless retail postpaid94,005 92,704 1.4
Wireless retail prepaid20,206 21,420 (5.7)
Total wireless retail 114,211 114,124 0.1
Wireless retail prepaid excl. SafeLink
18,780 19,123 (1.8)
Wireless retail postpaid phone74,624 74,407 0.3
Fios video 2,744 3,013 (8.9)
Fios internet7,088 6,923 2.4
Fixed wireless access (FWA) broadband2,498 1,641 52.2
Wireline broadband 7,264 7,151 1.6
Total broadband9,762 8,792 11.0
Unaudited3 Mos. Ended 9/30/243 Mos. Ended 9/30/23%
Change		9 Mos. Ended 9/30/249 Mos. Ended 9/30/23%
Change
Gross Additions (‘000):
Wireless retail postpaid3,088 3,152 (2.0)8,972 9,290 (3.4)
Wireless retail postpaid phone1,952 1,843 5.95,420 5,037 7.6
Net Additions Detail (‘000):
Wireless retail postpaid68 251 (72.9)215 876 (75.5)
Wireless retail prepaid(69)(207)66.7(909)(862)(5.5)
Total wireless retail(1)44 *(694)14 *
Wireless retail prepaid excl. SafeLink
80 (221)*(63)(815)92.3
Wireless retail postpaid phone81 (51)*(85)(450)81.1
Fios video (74)(78)5.1(207)(221)6.3
Fios internet39 69 (43.5)112 183 (38.8)
FWA broadband209 251 (16.7)630 758 (16.9)
Wireline broadband 26 53 (50.9)75 135 (44.4)
Total broadband 235 304 (22.7)705 893 (21.1)
Churn Rate:
Wireless retail postpaid1.07 %1.04 %1.04 %1.01 %
Wireless retail postpaid phone0.84 %0.85 %0.82 %0.82 %
Wireless retail prepaid4.08 %4.39 %4.28 %4.31 %
Wireless retail prepaid excl. SafeLink
3.72 %3.85 %3.64 %3.76 %
Wireless retail1.61 %1.68 %1.62 %1.65 %
Revenue Statistics (in millions):
Wireless service revenue$16,377 $15,963 2.6$48,853 $47,324 3.2
Fios revenue$2,916 $2,897 0.7$8,708 $8,672 0.4

Verizon Communications Inc.


Consumer - Selected Operating Statistics (continued)
Unaudited3 Mos. Ended 9/30/243 Mos. Ended 9/30/23%
Change		9 Mos. Ended 9/30/249 Mos. Ended 9/30/23%
Change
Other Wireless Statistics:
Wireless retail postpaid ARPA(1)
$139.06 $133.47 4.2$137.75 $131.79 4.5
Wireless retail postpaid upgrade rate
3.2 %3.6 %
Wireless retail postpaid accounts (‘000)(2)
32,719 32,938 (0.7)
Wireless retail postpaid connections per account(2)
2.87 2.81 2.1
Wireless retail prepaid ARPU(3)
$30.70 $31.87 (3.7)$30.93 $31.32 (1.2)
Wireless retail prepaid ARPU(3) excl. SafeLink
$32.41 $33.13 (2.2)$32.38 $32.72 (1.0)
Footnotes:
(1) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
(2) Statistics presented as of end of period.
(3) Wireless retail prepaid ARPU - average service revenue per unit from retail prepaid connections.
Where applicable, the operating results reflect certain adjustments, including those related to the 3G network shutdowns, migration activity among different types of devices and plans, customer profile changes, and adjustments in connection with mergers, acquisitions and divestitures.
Certain intersegment transactions with corporate entities have not been eliminated.
* Not meaningful


Verizon Communications Inc.


Business - Selected Financial Results
(dollars in millions)
Unaudited3 Mos. Ended 9/30/243 Mos. Ended 9/30/23%
Change		9 Mos. Ended 9/30/249 Mos. Ended 9/30/23%
Change
Operating Revenues
Enterprise and Public Sector$3,538 $3,787 (6.6)$10,670 $11,358 (6.1)
Business Markets and Other3,263 3,184 2.59,661 9,397 2.8
Wholesale550 556 (1.1)1,696 1,749 (3.0)
Total Operating Revenues7,351 7,527 (2.3)22,027 22,504 (2.1)
Operating Expenses
Cost of services2,440 2,536 (3.8)7,327 7,661 (4.4)
Cost of wireless equipment1,197 1,220 (1.9)3,487 3,606 (3.3)
Selling, general and administrative expense2,109 2,105 0.26,503 6,290 3.4
Depreciation and amortization expense1,040 1,127 (7.7)3,246 3,324 (2.3)
Total Operating Expenses6,786 6,988 (2.9)20,563 20,881 (1.5)
Operating Income$565 $539 4.8$1,464 $1,623 (9.8)
Operating Income Margin7.7 %7.2 %6.6 %7.2 %
Segment EBITDA(1)
$1,605 $1,666 (3.7)$4,710 $4,947 (4.8)
Segment EBITDA Margin(1)
21.8 %22.1 %21.4 %22.0 %
Footnotes:
(1) Non-GAAP financial measure.
The segment financial results and metrics above exclude the effects of special items (other than the effects of acquisition-related intangible asset amortization), which the Company’s chief operating decision maker does not consider in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.

Verizon Communications Inc.


Business - Selected Operating Statistics
Unaudited9/30/249/30/23%
Change
Connections (‘000):
Wireless retail postpaid30,532 29,455 3.7
Wireless retail postpaid phone18,649 18,019 3.5
Fios video 56 63 (11.1)
Fios internet 397 383 3.7
FWA broadband1,698 1,038 63.6
Wireline broadband 459 461 (0.4)
Total broadband2,157 1,499 43.9
Unaudited3 Mos. Ended 9/30/243 Mos. Ended 9/30/23%
Change		9 Mos. Ended 9/30/249 Mos. Ended 9/30/23%
Change
Gross Additions (‘000):
Wireless retail postpaid1,601 1,618 (1.1)4,711 4,815 (2.2)
Wireless retail postpaid phone784 761 3.02,249 2,251 (0.1)
Net Additions Detail (‘000):
Wireless retail postpaid281 330 (14.8)727 950 (23.5)
Wireless retail postpaid phone158 151 4.6404 431 (6.3)
Fios video(2)(1)*(5)(4)(25.0)
Fios internet4 3 33.312 10 20.0
FWA broadband154 133 15.8465 403 15.4
Wireline broadband— (3)*(1)(7)85.7
Total broadband 154 130 18.5464 396 17.2
Churn Rate:
Wireless retail postpaid1.45 %1.47 %1.47 %1.48 %
Wireless retail postpaid phone1.12 %1.14 %1.12 %1.13 %
Revenue Statistics (in millions):
Wireless service revenue$3,466 $3,367 2.9$10,276 $10,008 2.7
Fios revenue$314 $308 1.9$938 $923 1.6
Other Operating Statistics:
Wireless retail postpaid upgrade rate2.5 %2.9 %
Footnotes:
Where applicable, the operating results reflect certain adjustments, including those related to the 3G network shutdowns, migration activity among different types of devices and plans, customer profile changes, and adjustments in connection with mergers, acquisitions and divestitures.
Certain intersegment transactions with corporate entities have not been eliminated.
* Not meaningful

Verizon Communications Inc.


Supplemental Information - Total Wireless Operating and Financial Statistics

The following supplemental schedule contains certain financial and operating metrics which reflect an aggregation of our Consumer and Business segments’ wireless results.
Unaudited9/30/249/30/23% Change
Connections (‘000)
Retail postpaid124,537 122,159 1.9
Retail prepaid
20,206 21,420 (5.7)
Total retail144,743 143,579 0.8
Retail prepaid excl. SafeLink
18,780 19,123 (1.8)
Retail postpaid phone93,273 92,426 0.9
Unaudited3 Mos. Ended 9/30/243 Mos. Ended 9/30/23%
Change		9 Mos. Ended 9/30/249 Mos. Ended 9/30/23%
Change
Net Additions Detail (‘000)
Retail postpaid phone239 100 *319 (19)*
Retail postpaid349 581 (39.9)942 1,826 (48.4)
Retail prepaid(69)(207)66.7(909)(862)(5.5)
Total retail280 374 (25.1)33 964 (96.6)
Retail prepaid excl. SafeLink80 (221)*(63)(815)92.3
Account Statistics
Retail postpaid accounts (‘000)(1)
34,746 34,855 (0.3)
Retail postpaid connections per account(1)
3.58 3.50 2.3
Retail postpaid ARPA(2)
$162.05 $156.13 3.8$160.50 $154.30 4.0
Retail prepaid ARPU(3)
$30.70 $31.87 (3.7)$30.93 $31.32 (1.2)
Retail prepaid ARPU(3) excl. SafeLink
$32.41 $33.13 (2.2)$32.38 $32.72 (1.0)
Churn Detail
Retail postpaid phone0.89 %0.90 %0.88 %0.88 %
Retail postpaid1.16 %1.15 %1.14 %1.12 %
Retail prepaid4.08 %4.39 %4.28 %4.31 %
Retail prepaid excl. SafeLink
3.72 %3.85 %3.64 %3.76 %
Retail1.57 %1.63 %1.59 %1.61 %
Retail Postpaid Connection Statistics
Upgrade rate3.0 %3.4 %
Revenue Statistics (in millions)(4)
FWA revenue$562 $347 62.0$1,528 $899 70.0
Wireless service$19,843 $19,330 2.7$59,129 $57,332 3.1
Wireless equipment5,343 5,813 (8.1)15,702 16,850 (6.8)
Wireless other1,662 1,507 10.34,847 4,508 7.5
Total Wireless$26,848 $26,650 0.7$79,678 $78,690 1.3
Footnotes:
(1) Statistics presented as of end of period.
(2) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
(3) Wireless retail prepaid ARPU - average service revenue per unit from retail prepaid connections.
(4) Intersegment transactions between Consumer or Business segment with corporate entities have not been eliminated.
Where applicable, the operating results reflect certain adjustments, including those related to the 3G network shutdowns, migration activity among different types of devices and plans, customer profile changes, and adjustments in connection with mergers, acquisitions and divestitures.
* Not meaningful

Verizon Communications Inc.
Non-GAAP Reconciliations - Consolidated Verizon
Consolidated EBITDA and Consolidated Adjusted EBITDA
(dollars in millions)
Unaudited3 Mos. Ended 9/30/243 Mos. Ended 6/30/243 Mos. Ended 3/31/243 Mos. Ended 12/31/233 Mos. Ended 9/30/233 Mos. Ended 6/30/233 Mos. Ended 3/31/23
Consolidated Net Income (Loss)$3,411 $4,702 $4,722 $(2,573)$4,884 $4,766 $5,018 
  Add:
Provision for income taxes891 1,332 1,353 756 1,308 1,346 1,482 
Interest expense1,672 1,698 1,635 1,599 1,433 1,285 1,207 
Depreciation and amortization expense(1)
4,458 4,483 4,445 4,516 4,431 4,359 4,318 
Consolidated EBITDA$10,432 $12,215 $12,155 $4,298 $12,056 $11,756 $12,025 
  Add/(subtract):
Other (income) expense, net(2)
$(72)$72 $(198)$807 $(170)$(210)$(114)
Equity in (earnings) losses of unconsolidated businesses24 14 9 11 18 33 (9)
Severance charges1,733 — — 296 — 237 — 
Asset and business rationalization374 — — 325 — 155 — 
Legacy legal matter— — 106 — — — — 
Verizon Business Group goodwill impairment— — — 5,841 — — — 
Legal settlement— — — 100 — — — 
Business transformation costs— — — — 176 — — 
Non-strategic business shutdown— — — — 158 — — 
2,059 86 (83)7,380 182 215 (123)
Consolidated Adjusted EBITDA$12,491 $12,301 $12,072 $11,678 $12,238 $11,971 $11,902 
Footnotes:
(1) Includes Amortization of acquisition-related intangible assets and a portion of the Non-strategic business shutdown, where applicable.
(2) Includes Pension and benefits remeasurement adjustments, where applicable.




Verizon Communications Inc.
Consolidated EBITDA and Consolidated Adjusted EBITDA (LTM)
(dollars in millions)
Unaudited12 Mos. Ended 9/30/2412 Mos. Ended 6/30/2412 Mos. Ended 12/31/23
Consolidated Net Income$10,262 $11,735 $12,095 
  Add:
Provision for income taxes4,332 4,749 4,892 
Interest expense6,604 6,365 5,524 
Depreciation and amortization expense(1)
17,902 17,875 17,624 
Consolidated EBITDA$39,100 $40,724 $40,135 
  Add/(subtract):
Other expense, net(2)
$609 $511 $313 
Equity in losses of unconsolidated businesses
58 52 53 
Severance charges2,029 296 533 
Asset and business rationalization699 325 480 
Legacy legal matter106 106 — 
Verizon Business Group goodwill impairment5,841 5,841 5,841 
Legal settlement100 100 100 
Business transformation costs— 176 176 
Non-strategic business shutdown— 158 158 
9,442 7,565 7,654 
Consolidated Adjusted EBITDA$48,542 $48,289 $47,789 
Footnotes:
(1) Includes Amortization of acquisition-related intangible assets and a portion of the Non-strategic business shutdown, where applicable.
(2) Includes Pension and benefits remeasurement adjustments, where applicable.

Verizon Communications Inc.
Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio
(dollars in millions)
Unaudited9/30/246/30/2412/31/239/30/23
Debt maturing within one year$21,763 $23,255 $12,973 $12,950 
Long-term debt128,878 126,022 137,701 134,441 
Total Debt150,641 149,277 150,674 147,391 
Less Secured debt24,272 24,015 22,183 20,951 
Unsecured Debt126,369 125,262 128,491 126,440 
Less Cash and cash equivalents4,987 2,432 2,065 4,210 
Net Unsecured Debt
$121,382 $122,830 $126,426 $122,230 
Consolidated Net Income (LTM)$10,262 $12,095 
Unsecured Debt to Consolidated Net Income Ratio12.3 x10.6 x
Consolidated Adjusted EBITDA (LTM)$48,542 $47,789 
Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio2.5 x2.6 x

Adjusted Earnings per Common Share (Adjusted EPS)
(dollars in millions, except per share amounts)
Unaudited3 Mos. Ended 9/30/243 Mos. Ended 9/30/23
Pre-taxTaxAfter-Tax Pre-taxTaxAfter-Tax 
EPS$0.78 $1.13 
Amortization of acquisition-related intangible assets$186 $(46)$140 0.03 $224 $(56)$168 0.04 
Severance charges1,733 (429)1,304 0.31 — — — — 
Asset and business rationalization374 (90)284 0.07 — — — — 
Business transformation costs— — — — — 176 (45)131 0.03 
Non-strategic business shutdown— — — — 179 (83)96 0.02 
$2,293 $(565)$1,728 $0.41 $579 $(184)$395 $0.09 
Adjusted EPS$1.19 $1.22 
Footnote:
Adjusted EPS may not add due to rounding.
Free Cash Flow
(dollars in millions)
Unaudited9 Mos. Ended 9/30/249 Mos. Ended 9/30/23
Net Cash Provided by Operating Activities$26,480 $28,798 
Capital expenditures (including capitalized software)(12,019)(14,164)
Free Cash Flow$14,461 $14,634 


Verizon Communications Inc.
Non-GAAP Reconciliations - Segments
Segment EBITDA and Segment EBITDA Margin
Consumer
(dollars in millions)
Unaudited3 Mos. Ended 9/30/243 Mos. Ended 9/30/239 Mos. Ended 9/30/249 Mos. Ended 9/30/23
Operating Income$7,604 $7,547 $22,580 $21,976 
Add Depreciation and amortization expense3,411 3,272 10,114 9,733 
Segment EBITDA$11,015 $10,819 $32,694 $31,709 
Year over year change %1.8 %3.1 %
Total operating revenues$25,360 $25,257 $75,344 $74,672 
Operating Income Margin30.0 %29.9 %30.0 %29.4 %
Segment EBITDA Margin43.4 %42.8 %43.4 %42.5 %
Business
(dollars in millions)
Unaudited3 Mos. Ended 9/30/243 Mos. Ended 9/30/239 Mos. Ended 9/30/249 Mos. Ended 9/30/23
Operating Income$565 $539 $1,464 $1,623 
Add Depreciation and amortization expense1,040 1,127 3,246 3,324 
Segment EBITDA$1,605 $1,666 $4,710 $4,947 
Year over year change %(3.7)%(4.8)%
Total operating revenues$7,351 $7,527 $22,027 $22,504 
Operating Income Margin7.7 %7.2 %6.6 %7.2 %
Segment EBITDA Margin21.8 %22.1 %21.4 %22.0 %