Q4 2024 Verizon Communications Inc Earnings Call - Pre-recorded

January 24, 2025

Brady Connor: 2024 results discussion. I'm Brady Connor, and on this recording, you'll hear from our Chairman and Chief Executive Officer, Hans Vestberg, as well as our Chief Financial Officer, Tony Skiadas. Before we begin, I'd like to draw your attention to our Safe Harbor Statement, which can be found at the start of the earnings presentation posted on our Investor Relations website. Information in this presentation contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Discussion of factors that may affect future results is contained in Verizon's filings with the SEC, which are available on our Investor Relations website. This presentation contains certain non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in the financial materials posted on our website.

Brady Connor: 2024 results discussion. I'm Brady Connor, and on this recording, you'll hear from our Chairman and Chief Executive Officer, Hans Vestberg, as well as our Chief Financial Officer, Tony Skiadas. Before we begin, I'd like to draw your attention to our Safe Harbor Statement, which can be found at the start of the earnings presentation posted on our Investor Relations website. Information in this presentation contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Discussion of factors that may affect future results is contained in Verizon's filings with the SEC, which are available on our Investor Relations website. This presentation contains certain non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comprable GAAP measures are included in the financial materials posted on our website.

Tom Brady Connor and on this recording Youll hear from our Chairman and Chief Executive Officer, Hans Vestberg as well as our Chief Financial Officer, Tony Ski artist.

Speaker Change: and the presentation posted on our investor relations website. Information in this presentation contains statements about expected future events and financial results that are forward looking and subject to risks and uncertainties.

Brady Connor: A detailed overview of our fourth quarter and full-year results and other materials related to this discussion were posted this morning to our Investor Relations website. Additionally, we hope you'll join the webcast of our discussion of the earnings results and business update that starts at 8:30AM Eastern Time today, 24 January 2024. With that, I'll turn it over to Hans.

A detailed overview of our fourth quarter and full-year results and other materials related to this discussion were posted this morning to our Investor Relations website. Additionally, we hope you'll join the webcast of our discussion of the earnings results and business update that starts at 8:30AM Eastern Time today, 24 January 2024. With that, I'll turn it over to Hans.

Hans Vestberg: With that I'll turn it over to Hans Thank you Randy Good morning, everyone and welcome to our fourth quarter and full year 2024 earnings update.

Hans Vestberg: Thank you, Brady. Good morning, everyone, and welcome to our fourth quarter and full-year 2024 earnings update. We had a year of strong growth with a great fourth quarter finish. The team executed our strategy well, transforming Verizon into a more efficient and effective company, which is reflected in our solid operational and financial results. This demonstrates our commitment to continuous improvement as we strive to power and empower our people, live, work, and play. We delivered on our 2024 financial guidance. Wireless service revenue and Adjusted EBITDA exceeded the midpoint of our guided ranges, and we generated strong Free Cash Flow. We grew wireless service revenue sequentially for the 18th consecutive quarter and grew year-over-year Adjusted EBITDA every quarter in 2024. Our network product portfolio and brand are resonating with our customers and driving growth for us in the market.

Speaker Change: The year of strong growth with a great fourth quarter finish.

Speaker Change: The team executed our strategy to well transforming Verizon into a more efficient and effective company, which is reflected in our solid operational and financial results.

Speaker Change: This demonstrates our commitment to continuous improvement as we strive to power and empower our people live work and play we believe it or not 'twenty 'twenty four financial guidance wireless service revenue and adjusted EBITDA exceeded the midpoint of our guided range and we generated strong free cash flow we grew.

Speaker Change: Wireless service revenue sequentially for the 18th consecutive quarter and grew year over year adjusted to beat every quarter in 'twenty to 'twenty, four or network product portfolio and brands are resonating with our customers and driving growth for us in the market.

Hans Vestberg: We're excited about 2025 and look forward to building on the strong execution and the solid results delivered in 2024. Let me start with our strategic moves in 2024, which position Verizon for long-term growth as we better serve our customers with control, simplicity, and value. These include refreshing our brand, introducing customer-first offerings like MyHome, Verizon Access, and Verizon Business Complete, accelerating our broadened expansion with the pending acquisition of Frontier, and signing strategic transactions including the Tower deal and the agreement to acquire US Cellular spectrum. We extended our network leadership even further. We announced satellite partnerships with AST SpaceMobile and Skylo to offer connectivity in dead zones. And as you will hear more later today, we're connecting the AI ecosystem, putting Verizon at the forefront of the next-generation technology. We continue to invest in the business.

We're excited about 2025 and look forward to building on the strong execution and the solid results delivered in 2024. Let me start with our strategic moves in 2024, which position Verizon for long-term growth as we better serve our customers with control, simplicity, and value. These include refreshing our brand, introducing customer-first offerings like MyHome, Verizon Access, and Verizon Business Complete, accelerating our broadened expansion with the pending acquisition of Frontier, and signing strategic transactions including the Tower deal and the agreement to acquire US Cellular spectrum. We extended our network leadership even further. We announced satellite partnerships with AST SpaceMobile and Skylo to offer connectivity in dead zones. And as you will hear more later today, we're connecting the AI ecosystem, putting Verizon at the forefront of the next-generation technology. We continue to invest in the business.

Speaker Change: We're excited about 2025 and look forward to building on our strong execution and the solid results delivered in 2024.

Speaker Change: Let me start with our strategic moves in 2024, which position Verizon for a long term growth as we better serve our customers with control simplicity and value. These include refreshing our brand introducing customer first offerings like my home Verizon access and where are some pieces complete accelerating our.

Speaker Change: Broadband expansion with the pending acquisition of frontier and signing strategic transactions, including the tower deal and the agreement to acquire U S cellular spectrum.

Speaker Change: We extended our network leadership, even further we're now satellite partnership with ASD space mobile and Skyler to offer connectivity in dead cells and as you will hear more later today, we're connecting the AI ecosystem, putting Verizon at the forefront over the next generation technology, we continue to invest in the business.

Speaker Change: We are now deployed C band on nearly 70% of our plant sites and expect to be within 80% to 90% by the end of 'twenty. One five C band deployment continues to improve our customers' mobility experience, while expanding fixed wireless access coverage at the same time, we continue to expand our fires footprint.

Hans Vestberg: We have now deployed C-Band on nearly 70% of our planned sites and expect to be within 80% to 90% by the end of 2025. C-Band deployment continues to improve our customers' mobility experience while expanding fixed wireless access coverage. At the same time, we continue to expand our Fios footprint with 464,000 new premises open for sale. My new leadership team, which came together over the last 12 months, has performed very well and has continued to transform the business and drive efficiencies while improving our operating leverage. With the execution of the voluntary separation program, we ended the year with fewer than 100,000 employees, down close to 20,000 over the last three years. This gives us more flexibility to execute our strategy and deliver on our capital allocation priorities. These strategic moves and operational improvements drove strong financial results.

We have now deployed C-Band on nearly 70% of our planned sites and expect to be within 80% to 90% by the end of 2025. C-Band deployment continues to improve our customers' mobility experience while expanding fixed wireless access coverage. At the same time, we continue to expand our Fios footprint with 464,000 new premises open for sale. My new leadership team, which came together over the last 12 months, has performed very well and has continued to transform the business and drive efficiencies while improving our operating leverage. With the execution of the voluntary separation program, we ended the year with fewer than 100,000 employees, down close to 20,000 over the last three years. This gives us more flexibility to execute our strategy and deliver on our capital allocation priorities. These strategic moves and operational improvements drove strong financial results.

Speaker Change: With 464000, new premises opened for sale my New leadership team, which came together over the last 12 months has performed very well and is continue to transform the business and drive efficiencies, while improving our operating leverage.

Speaker Change: With execution of the voluntary separation program. We ended the year with fewer than 100000 employees down close to 20000 over the last three years. This gives us more flexibility to execute our strategy and deliver on our capital allocation priorities.

Speaker Change: These strategic moves and operation improvements drove strong financial results total wireless service revenue of $79.1 billion was up 3.1% year over year.

Hans Vestberg: Total wireless service revenue of $79.1 billion was up 3.1% year-over-year. Adjusted EBITDA of $48.8 billion was up 2.1%, or $1 billion year-over-year. We generated strong free cash flow of $19.8 billion while absorbing higher taxes. Given the financial strength of our business, we increased our dividend for the 18th consecutive year while maintaining a healthy free cash flow dividend payout ratio of approximately 57%, and continued to pay down debt, ending the year with a net unsecured debt-to-adjusted EBITDA ratio of 2.3x, down from 2.6x a year ago. Turning to our operational performance, we grew subscribers across all our core businesses for the full year. We added nearly 2.5 million postpaid mobility and broadband subscribers in the year while expanding our margins. On mobility, we added nearly 900,000 postpaid phone subscribers. Consumer postpaid phone net adds were positive for the year.

Total wireless service revenue of $79.1 billion was up 3.1% year-over-year. Adjusted EBITDA of $48.8 billion was up 2.1%, or $1 billion year-over-year. We generated strong free cash flow of $19.8 billion while absorbing higher taxes. Given the financial strength of our business, we increased our dividend for the 18th consecutive year while maintaining a healthy free cash flow dividend payout ratio of approximately 57%, and continued to pay down debt, ending the year with a net unsecured debt-to-adjusted EBITDA ratio of 2.3x, down from 2.6x a year ago. Turning to our operational performance, we grew subscribers across all our core businesses for the full year. We added nearly 2.5 million postpaid mobility and broadband subscribers in the year while expanding our margins. On mobility, we added nearly 900,000 postpaid phone subscribers. Consumer postpaid phone net adds were positive for the year.

Speaker Change: As I said, a beta of $48 $8 billion was up two 1% or a billion dollars year over year.

Speaker Change: And we generated strong free cash flow of $19 $8 billion, while absorbing higher taxes, given the financial strength of our business, we increased our dividend for the 18th consecutive year, while maintaining a healthy free cash flow dividend payout ratio of approximately 57% and continued.

Speaker Change: To pay down debt ending the year with a net unsecured debt to adjusted EBITDA ratio of two three times down from two six times a year ago, turning to our operational performance. We grew subscribers across all of our core businesses for the full year.

Speaker Change: We added nearly two and a half million postpaid mobility and broadband subscribers in the year, while expanding our margins.

Speaker Change: All mobility, we added nearly 900000 postpaid phone subscribers consumer postpaid phone net adds were positive for the year.

Hans Vestberg: Business postpaid phone subscribers' growth continued with another year of solid performance with over half a million net adds. Prepaid net adds, excluding SafeLink, were also full-year positive for the first time since the TracFone acquisition. It's been a great turnaround by the consumer team. On broadband, we added nearly 1.6 million subscribers in 2024, bringing our base to 12.3 million. Our growth was fueled by great momentum in both fixed wireless access and Fios. We have the most complete and differentiated broadband offering, covering all segments of the market. As announced in October, we expect to cover more than 100 million homes and businesses nationwide over time. Our private networks business continues to scale, with significant wins across key verticals. In early 2024, we were selected for an IT system modernization project from Xerox and a private network build for global power solutions leader Cummins Inc.

Business postpaid phone subscribers' growth continued with another year of solid performance with over half a million net adds. Prepaid net adds, excluding SafeLink, were also full-year positive for the first time since the TracFone acquisition. It's been a great turnaround by the consumer team. On broadband, we added nearly 1.6 million subscribers in 2024, bringing our base to 12.3 million. Our growth was fueled by great momentum in both fixed wireless access and Fios. We have the most complete and differentiated broadband offering, covering all segments of the market. As announced in October, we expect to cover more than 100 million homes and businesses nationwide over time. Our private networks business continues to scale, with significant wins across key verticals. In early 2024, we were selected for an IT system modernization project from Xerox and a private network build for global power solutions leader Cummins Inc.

Speaker Change: Business postpaid phone subscribers growth continue with another year of solid performance with over half a million net adds prepay.

Speaker Change: Prepaid net adds excluding safely Inc. Were also full year positive for the first time since the Tracfone acquisition, it's been a great turnaround by the consumer team.

Speaker Change: On broadband we added nearly one 6 million subscribers in 2024, bringing our base of $12 3 million a growth was fueled by great momentum in both fixed wireless access and files. We are the most complete and differentiated broaden offering covering all segments of the market as announced.

Speaker Change: In October we expect to cover more than 100 million homes and businesses nationwide over time, but.

Speaker Change: Our private networks business continues to scale with significant wins across key verticals in early 'twenty. Four we were selected for an idea system modernization project from Xerox and a private network build for global power solution leader Cummins, Inc. In sports and entertainment, we expanded our service.

Hans Vestberg: In sports and entertainment, we expanded our service from every NFL stadium in the country to individual teams and the training facilities. We won new mandates from FIFA to support the 2026 Men's World Cup as the official telecommunications service sponsor with state-of-the-art technology, and we expanded our partnership with Madison Square Garden. This month, the United States Air Force chose us to enhance its communication infrastructure across 35 bases, which will include new C-Band deployments. In summary, 2024 was a year of strategic execution with strong financial and subscriber growth. Now, let me turn to the fourth quarter. We had a very strong quarter, both financially and operationally, with subscriber gains in both mobility and broadband. We continue to gain share in broadband, led by sustained growth in fixed wireless access. Wireless service revenue came in at $20 billion, the highest in the industry, up 3.1% year-over-year.

In sports and entertainment, we expanded our service from every NFL stadium in the country to individual teams and the training facilities. We won new mandates from FIFA to support the 2026 Men's World Cup as the official telecommunications service sponsor with state-of-the-art technology, and we expanded our partnership with Madison Square Garden. This month, the United States Air Force chose us to enhance its communication infrastructure across 35 bases, which will include new C-Band deployments. In summary, 2024 was a year of strategic execution with strong financial and subscriber growth. Now, let me turn to the fourth quarter. We had a very strong quarter, both financially and operationally, with subscriber gains in both mobility and broadband. We continue to gain share in broadband, led by sustained growth in fixed wireless access. Wireless service revenue came in at $20 billion, the highest in the industry, up 3.1% year-over-year.

Speaker Change: Every NFL stadium in the country to individual teams and training facilities.

Speaker Change: We won new mandates from FIFA to support a $20 six men's World Cup as official telecommunication service sponsor with a state of art technology, and we expanded our partnership with Madison Square Garden. This month, the United States Air Force shows also enhance its communication infrastructure across 35.

Speaker Change: Aces, which will include new C band deployments in summary, 24 was a year of strategic execution with strong financial and subscriber growth.

Speaker Change: Now, let me turn to the fourth quarter, we had a very strong quarter, both financially and operationally with subscriber gains in both mobility and broadband we continue to gain share in broadband led by sustained growth in fixed wireless access.

Speaker Change: Wireless service revenue came in at $20 billion, the highest in the industry up three 1% year over year adjusted EBITDA was $11 $9 billion up two 1% year over year. We ended the year with a strong free cash flow of $5 4 billion.

Hans Vestberg: Adjusted EBITDA was $11.9 billion, up 2.1% year-over-year. We ended the year with a strong free cash flow of $5.4 billion for the quarter. Our subscriber growth demonstrated clear momentum. We added nearly 1 million postpaid mobility and broadband subscribers, our highest quarter result in over a decade. In mobility, total postpaid phone net adds were 568,000, our best quarterly performance in five years. This was driven by strong execution in consumer and continued strength in our business segment. Our total postpaid phone net adds improved year-over-year in every quarter of 2024. In our value of business, excluding SafeLink, prepaid net adds of 65,000 in the fourth quarter brought us into positive territory for the year. Our broadband business continued to scale effectively. We delivered 408,000 net adds, including 373,000 from fixed wireless access.

Adjusted EBITDA was $11.9 billion, up 2.1% year-over-year. We ended the year with a strong free cash flow of $5.4 billion for the quarter. Our subscriber growth demonstrated clear momentum. We added nearly 1 million postpaid mobility and broadband subscribers, our highest quarter result in over a decade. In mobility, total postpaid phone net adds were 568,000, our best quarterly performance in five years. This was driven by strong execution in consumer and continued strength in our business segment. Our total postpaid phone net adds improved year-over-year in every quarter of 2024. In our value of business, excluding SafeLink, prepaid net adds of 65,000 in the fourth quarter brought us into positive territory for the year. Our broadband business continued to scale effectively. We delivered 408,000 net adds, including 373,000 from fixed wireless access.

Speaker Change: For the quarter.

Speaker Change: Our subscriber growth demonstrated clear momentum, we're adding nearly 1 million postpaid mobility and broadband subscribers, our highest quarter result in over a decade.

Speaker Change: In mobility total postpaid phone net adds were 560000, our best quarterly performance in five years. This was driven by strong execution and consumer and continued strength in our business segment.

Speaker Change: Our total postpaid phone net adds improved year over year in every quarter of 'twenty 'twenty four in our value business. Excluding safely Inc. Prepaid net adds of 65000 in the fourth quarter brought us into positive territory for the year, our broadband business continues to scale effectively we delivered four.

Speaker Change: <unk> hundred 8000, net adds including 373000 from fixed wireless access.

Hans Vestberg: We ended the year with nearly 4.6 million fixed wireless access subscribers, and we exceeded $2.1 billion of fixed wireless access revenue for the year. We are off to a great start to hit our next milestone of eight or nine million fixed wireless access subscribers by 2028. Finally, in addition to the new private networks business that we won in Q4, we were the only US-based carrier to be named a leader in Gartner's Magic Quadrant for Private Networks. Gartner recognized us for our vision, our work in building the private networks market, and our ability to build great private networks that our customers rely on. On network, our capital efficient continues to improve as we roll out our fiber and C-Band ahead of plans and transform our network.

We ended the year with nearly 4.6 million fixed wireless access subscribers, and we exceeded $2.1 billion of fixed wireless access revenue for the year. We are off to a great start to hit our next milestone of eight or nine million fixed wireless access subscribers by 2028. Finally, in addition to the new private networks business that we won in Q4, we were the only US-based carrier to be named a leader in Gartner's Magic Quadrant for Private Networks. Gartner recognized us for our vision, our work in building the private networks market, and our ability to build great private networks that our customers rely on. On network, our capital efficient continues to improve as we roll out our fiber and C-Band ahead of plans and transform our network.

Speaker Change: We ended the year with nearly $4 6 million fixed wireless access subscribers and we exceeded $2 $1 billion of fixed wireless access revenue 40 year, we're off to a great start to hit our next milestone of eight to 9 million fixed wireless access subscribers by 2028.

Speaker Change: Finally in addition to the new private networks business that we won in the fourth quarter. We were the only U S based carrier to be named a leader in Gardner's magic quadrant for private networks.

Speaker Change: Garda recognized us for our vision, our work and building a private networks market and our ability to build great private networks that our customers rely on our network or capital efficient continues to improve as we rollout our fiber and C. Band ahead of plans and transform our network, where we have seen.

Hans Vestberg: Where we have CBAN deployed, customers are experiencing superior performance, and we're seeing higher gross adds and lower churn. We continue to enhance our network capabilities and innovate for the evolving needs of our customers. We recently launched enhanced video calling powered by network slicing, and we collaborated with NVIDIA to power AI workloads on private 5G networks with mobile edge compute. We also successfully tested next-generation technology, enabling faster and more energy-efficient fiber network data transfers. Our continued advancement further strengthened our position as the best network for all of our customers. Looking ahead to 2025, we'll continue to build on our momentum and execute our long-term strategy. We'll focus on growing wireless service revenue, expanding adjusted EBITDA, and generating strong free cash flow.

Where we have CBAN deployed, customers are experiencing superior performance, and we're seeing higher gross adds and lower churn. We continue to enhance our network capabilities and innovate for the evolving needs of our customers. We recently launched enhanced video calling powered by network slicing, and we collaborated with NVIDIA to power AI workloads on private 5G networks with mobile edge compute. We also successfully tested next-generation technology, enabling faster and more energy-efficient fiber network data transfers. Our continued advancement further strengthened our position as the best network for all of our customers. Looking ahead to 2025, we'll continue to build on our momentum and execute our long-term strategy. We'll focus on growing wireless service revenue, expanding adjusted EBITDA, and generating strong free cash flow.

Speaker Change: When deployed customers are experiencing a superior performance and we're seeing a higher gross ads and lower shown.

Speaker Change: We continue to enhance our network capabilities and innovate for the evolving needs of our customers. We recently launched enhanced video calling powered by network slicing and we collaborated with Nvidia to power AI workloads on private fiber networks with mobile edge compute.

Speaker Change: We're also successfully tested next generation technology, enabling faster more energy efficient fiber network data transfers are continued advancement further strengthen our position as the best network for all of our customers.

Speaker Change: Looking ahead to 'twenty to 'twenty five we'll continue to build on our momentum and execute our long term strategy will focus on growing wireless service revenue expanding adjusted EBITDA and generating strong free cash flow, we will accelerate our mobility momentum in broadband growth with continued deployment of Pfizer Ultra wideband.

Hans Vestberg: We will accelerate our mobility momentum and broadband growth with continued deployment of 5G Ultra Wideband and expanded fiber builds while scaling our private networks business. We will maintain our focus on operational excellence, financial discipline, and customer experience to drive both customer and financial growth. We will continue to execute on our capital allocation model by investing in the business, supporting and growing our dividend, paying down our debt, and eventually executing on share repurchases. And we will leverage our extensive fiber footprint and edge compute assets to open new revenue streams as we continue to connect the AI ecosystem. Tony will provide more details on our 2025 guidance, but we anticipate another year of strong wireless service revenue growth in the 2% to 2.8% range, with underlying growth expected to be nearly double the guided range when excluding promo amortization.

We will accelerate our mobility momentum and broadband growth with continued deployment of 5G Ultra Wideband and expanded fiber builds while scaling our private networks business. We will maintain our focus on operational excellence, financial discipline, and customer experience to drive both customer and financial growth. We will continue to execute on our capital allocation model by investing in the business, supporting and growing our dividend, paying down our debt, and eventually executing on share repurchases. And we will leverage our extensive fiber footprint and edge compute assets to open new revenue streams as we continue to connect the AI ecosystem. Tony will provide more details on our 2025 guidance, but we anticipate another year of strong wireless service revenue growth in the 2% to 2.8% range, with underlying growth expected to be nearly double the guided range when excluding promo amortization.

Speaker Change: And expanded fiber builds while scaling our private networks business, we will maintain our focus on operational excellence financial discipline and customer experience to drive both customer and financial growth. We will continue to execute on our capital allocation model by investing in the business supporting and growing our dividend.

Speaker Change: Paying down our debt and eventually executing on share repurchases and we will leverage our extensive fiber footprint and edge compute assets to open new revenue streams as we continue to connect the AI ecosystem.

Speaker Change: Tony will provide more details on our 2025 guidance, but we anticipate another year of strong wireless service revenue growth in the two to two 8% range with underlying growth expected to be nearly double the guided range when excluding promo amortization.

Hans Vestberg: Our Adjusted EBITDA profile will continue to improve as we remain financially disciplined and execute on our business transformation programs. The midpoint of our Adjusted EBITDA guidance represents an acceleration from our 2024 growth rate. We expect to generate strong free cash flow while investing for long-term growth. Now, I will hand it over to Tony to discuss our financial results. Thanks, Hans, and good morning. We finished the year with strong operational momentum in both mobility and broadband, demonstrating year-over-year improvement in postpaid phone net additions throughout the year. In addition, we delivered our highest broadband quarterly result of the year. All in, we added nearly 1 million postpaid subscribers onto our mobility and broadband platforms in Q4, the highest quarterly result in over a decade.

Our Adjusted EBITDA profile will continue to improve as we remain financially disciplined and execute on our business transformation programs. The midpoint of our Adjusted EBITDA guidance represents an acceleration from our 2024 growth rate. We expect to generate strong free cash flow while investing for long-term growth. Now, I will hand it over to Tony to discuss our financial results.

Speaker Change: Our adjusted EBITDA profile will continue to improve as we remain financially disciplined and execute on our business transformation programs. The midpoint of our adjusted EBITDA guidance represents an acceleration from our 'twenty to 'twenty four growth rate, we expect to generate strong free cash flow, while investing for long term growth.

Tony: Now I will hand, it over to Tony to discuss our financial results.

Tony Skiadas: Thanks, Hans, and good morning. We finished the year with strong operational momentum in both mobility and broadband, demonstrating year-over-year improvement in postpaid phone net additions throughout the year. In addition, we delivered our highest broadband quarterly result of the year. All in, we added nearly 1 million postpaid subscribers onto our mobility and broadband platforms in Q4, the highest quarterly result in over a decade.

Tony: Thanks, Hans and good morning.

Tony: We finished the year with strong operational momentum in both mobility and broadband demonstrating year over year improvement in postpaid phone net additions throughout the year.

Tony: In addition, we delivered our highest broadband quarterly result of the year.

Tony: All in we added nearly 1 million postpaid subscribers onto our mobility and broadband platforms in the fourth quarter. The highest quarterly result in over a decade.

Tony: We did this while delivering on our financial guidance, including finishing above the midpoint of the guided ranges for both wireless service revenue and adjusted EBITDA and generating strong cash flow.

Hans Vestberg: We did this while delivering on our financial guidance, including finishing above the midpoint of the guided ranges for both wireless service revenue and adjusted EBITDA, and generating strong cash flow. These results reflect our disciplined approach to growth and position us well for continued success in 2025. Consumer postpaid phone net adds totaled 426,000 for the fourth quarter, a substantial improvement from 318,000 in the prior year period. For the full year, we delivered 82,000 consumer postpaid phone net adds, excluding the impact of our second number offering, meeting our goal of positive net adds for the year. Volumes are important to delivering our growth objectives. We expect to build off the momentum exiting the year and deliver even more postpaid phone net additions in 2025. We also intend to transition our second number product to a perk offering within the next few months.

We did this while delivering on our financial guidance, including finishing above the midpoint of the guided ranges for both wireless service revenue and adjusted EBITDA, and generating strong cash flow. These results reflect our disciplined approach to growth and position us well for continued success in 2025. Consumer postpaid phone net adds totaled 426,000 for the fourth quarter, a substantial improvement from 318,000 in the prior year period. For the full year, we delivered 82,000 consumer postpaid phone net adds, excluding the impact of our second number offering, meeting our goal of positive net adds for the year. Volumes are important to delivering our growth objectives. We expect to build off the momentum exiting the year and deliver even more postpaid phone net additions in 2025. We also intend to transition our second number product to a perk offering within the next few months.

Tony: These results reflect our disciplined approach to growth and position us well for continued success in 2025 consumer postpaid phone net adds totaled 426000 for the fourth quarter, a substantial improvement from 318000 in the prior year period.

Tony: For the full year, we delivered 82000 consumer postpaid phone net adds excluding the impact of our second number offering meeting our goal of positive net adds for the year <unk>.

Tony: Volumes are important to delivering our growth objectives, we expect to build off the momentum exiting the year and deliver even more postpaid phone net additions in 2025.

Tony: We also intend to transition our second number product to a perk offering within the next few months.

Tony: As a result of that change beginning in the first quarter of 2025, we will no longer count second number in calculating postpaid phone net ads and other phone metrics.

Hans Vestberg: As a result of that change, beginning in Q1 2025, we will no longer count second number in calculating postpaid phone net adds and other phone metrics. The strong consumer postpaid phone results in the quarter were primarily driven by postpaid phone gross adds, which were up more than 5% compared to the prior year period. The quarterly phone gross add result was our strongest in five years. Customers continue to be attracted to our MyPlan offers, with nearly half of our phones based on MyPlan at year-end. In addition, our CBAN expansion, segmented go-to-market approach, targeted promotions, and operational focus all contributed to our strong performance. Consumer postpaid phone churn was 0.89% for Q4, up slightly versus the same period a year ago, reflecting pricing actions taken during the quarter.

As a result of that change, beginning in Q1 2025, we will no longer count second number in calculating postpaid phone net adds and other phone metrics. The strong consumer postpaid phone results in the quarter were primarily driven by postpaid phone gross adds, which were up more than 5% compared to the prior year period. The quarterly phone gross add result was our strongest in five years. Customers continue to be attracted to our MyPlan offers, with nearly half of our phones based on MyPlan at year-end. In addition, our CBAN expansion, segmented go-to-market approach, targeted promotions, and operational focus all contributed to our strong performance. Consumer postpaid phone churn was 0.89% for Q4, up slightly versus the same period a year ago, reflecting pricing actions taken during the quarter.

Tony: The strong consumer postpaid phone results in the quarter were primarily driven by postpaid phone gross adds which were up more than 5% compared to the prior year period.

Tony: The quarterly phone gross add result was our strongest in five years.

Tony: Customers continue to be attracted to our my plan offers with nearly half of our phone based on my plan at year end.

Tony: In addition, our C band expansion Segmenting go to market approach targeted promotions and operational focus all contributed to our strong performance.

Tony: Consumer postpaid phone churn was zeroed that eight 9% for the fourth quarter up slightly versus the same period, a year ago, reflecting pricing actions taken during the quarter.

Tony: Churn management will remain an operational focus for the business in 2025, as we continue to pursue a balanced growth profile between volumes and price.

Hans Vestberg: Churn management will remain an operational focus for the business in 2025 as we continue to pursue a balanced growth profile between volumes and price. The consumer postpaid upgrade rate was 4.5% in Q4, up 10 basis points year-over-year as a result of the approximately 3% increase in upgrades. While upgrades increased year-over-year for the first time in several quarters, we do not see a significant change in consumer behavior as customers continue to hold on to their phones for longer periods of time. Consumer ARPA of $139.77 in Q4 represented an increase of 4.2% year-over-year. This was primarily driven by pricing actions taken throughout the year, growing perk adoption, and fixed wireless access subscriber growth. We expect continued healthy ARPA growth in 2025. Our prepaid results showed continued momentum in Q4.

Churn management will remain an operational focus for the business in 2025 as we continue to pursue a balanced growth profile between volumes and price. The consumer postpaid upgrade rate was 4.5% in Q4, up 10 basis points year-over-year as a result of the approximately 3% increase in upgrades. While upgrades increased year-over-year for the first time in several quarters, we do not see a significant change in consumer behavior as customers continue to hold on to their phones for longer periods of time. Consumer ARPA of $139.77 in Q4 represented an increase of 4.2% year-over-year. This was primarily driven by pricing actions taken throughout the year, growing perk adoption, and fixed wireless access subscriber growth. We expect continued healthy ARPA growth in 2025. Our prepaid results showed continued momentum in Q4.

Tony: Consumer postpaid upgrade rate was four 5% in the fourth quarter up 10 basis points year over year as a result of the approximately 3% increase in upgrades.

Tony: While upgrades increase year over year for the first time in several quarters, we do not see a significant change in consumer behavior as customers continue to hold onto their phones for longer periods of time.

Tony: Consumer ARPA of $139.77 in the fourth quarter represented an increase of four 2% year over year.

Tony: This was primarily driven by pricing actions taken throughout the year growing park adoption and fixed wireless access subscriber growth.

We expect continued healthy ARPA growth in 2025.

Tony: Our prepaid results showed continued momentum in the fourth quarter excluding.

Tony: Excluding safe link we had 65000 prepaid net additions in the fourth quarter, leading to positive full year prepaid net adds.

Hans Vestberg: Excluding SafeLink, we had 65,000 prepaid net additions in Q4, leading to positive full-year prepaid net adds. Our strategy is working, and we continue to invest in the Straight Talk, Visible, and Total Wireless prepaid brands. We expect to see continued improvement in 2025, with the financial contribution from prepaid expected to turn to a tailwind towards the back half of 2025. Verizon Business delivered another strong quarter with 142,000 phone net adds. Our value proposition continues to resonate across all customer groups, with particular strength in small and medium businesses. This is evident as we continue to retain our leading market share and reported a year-over-year improvement in business phone churn for the full year of 2024. We are confident that we will continue to deliver strong business volumes in 2025.

Excluding SafeLink, we had 65,000 prepaid net additions in Q4, leading to positive full-year prepaid net adds. Our strategy is working, and we continue to invest in the Straight Talk, Visible, and Total Wireless prepaid brands. We expect to see continued improvement in 2025, with the financial contribution from prepaid expected to turn to a tailwind towards the back half of 2025. Verizon Business delivered another strong quarter with 142,000 phone net adds. Our value proposition continues to resonate across all customer groups, with particular strength in small and medium businesses. This is evident as we continue to retain our leading market share and reported a year-over-year improvement in business phone churn for the full year of 2024. We are confident that we will continue to deliver strong business volumes in 2025.

Tony: Our strategy is working and we continue to invest in the straight talk visible and total wireless prepaid brands.

Tony: We expect to see continued improvement in 2025 with the financial contribution from prepaid expected to turn to a tailwind towards the back half of 2025.

Verizon business delivered another strong quarter with 142000 phone net adds our value proposition continues to resonate across all customer groups with particular strength in small and medium businesses.

Tony: This is evident as we continue to retain our leading market share and reported a year over year improvement in business phone churn for the full year 2024.

Tony: We are confident that we will continue to deliver strong business volumes in 2025.

Hans Vestberg: Moving on to broadband, we delivered 408,000 net additions in the quarter, continuing the quarterly pace of over 350,000 broadband net adds. We are taking broadband share and continue to see strong demand for both our fiber and fixed wireless access offerings. We are confident that both Fios and FWA will continue to grow market share in 2025. Key initiatives driving our optimism include expanding our Fios footprint by up to 650,000 new locations and further deploying C-Band spectrum. In addition, we anticipate bringing new products and offers to the market, such as our MDU solution for fixed wireless access that will be launched in the next few months. In fixed wireless access, we delivered 373,000 net adds for the quarter, growing the base to nearly 4.6 million subscribers.

Moving on to broadband, we delivered 408,000 net additions in the quarter, continuing the quarterly pace of over 350,000 broadband net adds. We are taking broadband share and continue to see strong demand for both our fiber and fixed wireless access offerings. We are confident that both Fios and FWA will continue to grow market share in 2025. Key initiatives driving our optimism include expanding our Fios footprint by up to 650,000 new locations and further deploying C-Band spectrum. In addition, we anticipate bringing new products and offers to the market, such as our MDU solution for fixed wireless access that will be launched in the next few months. In fixed wireless access, we delivered 373,000 net adds for the quarter, growing the base to nearly 4.6 million subscribers.

Tony: Moving onto broadband we delivered 408000 net additions in the quarter continuing in the quarterly pace of over 350000 broadband net adds.

Tony: We are taking broadband share and continue to see strong demand for both our fiber and fixed wireless access offerings.

Tony: We are confident that both files and FW way will continue to grow market share in 2025.

Tony: Key initiatives driving our optimism include expanding our fiber footprint by up to 650000, new locations and further deploying C band spectrum.

Tony: In addition, we anticipate bringing new products and offers to the market such as our MDU solution for fixed wireless access that will be launched in the next few months.

Tony: And fixed wireless access we deliver 373000 net adds for the quarter growing the base to nearly $4 6 million subscribers.

Hans Vestberg: In the fourth quarter, we saw a higher proportion of consumer fixed wireless gross adds coming from suburban and rural customers, showing the high demand for quality broadband services in our newer C-Band markets. We're off to a great start towards achieving our eight to nine million subscriber goal by 2028 and see continued opportunities to grow as we expand our C-Band footprint. Fios internet net adds for the fourth quarter were 51,000 versus 55,000 in the prior year period. With 20 years of Fios experience, we continue to grow our fiber subscribers while others face challenges. Let's now look at our financials. Consolidated revenue for the fourth quarter was $35.7 billion, up 1.6% year-over-year. Service and other revenue grew 1.8%, driven primarily by wireless service revenue growth, partially offset by ongoing business wireline declines.

In the fourth quarter, we saw a higher proportion of consumer fixed wireless gross adds coming from suburban and rural customers, showing the high demand for quality broadband services in our newer C-Band markets. We're off to a great start towards achieving our eight to nine million subscriber goal by 2028 and see continued opportunities to grow as we expand our C-Band footprint. Fios internet net adds for the fourth quarter were 51,000 versus 55,000 in the prior year period. With 20 years of Fios experience, we continue to grow our fiber subscribers while others face challenges. Let's now look at our financials. Consolidated revenue for the fourth quarter was $35.7 billion, up 1.6% year-over-year. Service and other revenue grew 1.8%, driven primarily by wireless service revenue growth, partially offset by ongoing business wireline declines.

Tony: In the fourth quarter, we saw a higher proportion of consumer fixed wireless gross adds coming from suburban and rural customers showing the high demand for quality broadband services in our newer C band markets.

Tony: We're off to a great start towards achieving our eight to 9 million subscriber goal by 2028 and see continued opportunities to grow as we expand our C band footprint files.

Tony: <unk> Internet net adds for the fourth quarter were 51000 versus 55000 in the prior year period.

Tony: With 20 years of finance experience, we continue to grow our fiber subscribers, while others face challenges.

Tony: Let's now look at our financials.

Tony: Solid data revenue for the fourth quarter was $35 $7 billion up one 6% year over year.

Tony: Service and other revenue grew one 8% driven primarily by wireless service revenue growth, partially offset by ongoing business wireline declines.

Hans Vestberg: Total wireless service revenue was an industry-leading $20 billion in the fourth quarter, up 3.1% year-over-year. Revenue growth benefited from targeted pricing actions, customer growth, sales of perks and add-on services, and growth in fixed wireless access. This was partially offset by the pressure from promo amortization as well as prepaid revenue. Consolidated adjusted EBITDA in the quarter was $11.9 billion, an increase of 2.1% compared to the prior year period. The increase was driven by higher wireless service revenue and benefits from cost savings initiatives, which were partially offset by investments to drive growth and legacy wireline revenue declines. Notably, business segment EBITDA for the fourth quarter was $1.7 billion, up 3% year-over-year. This represents the first year-over-year increase in quarterly EBITDA for the business segment since the fourth quarter of 2020. Adjusted EPS was $1.10 in the quarter, up 1.9% year-over-year, resulting in full-year adjusted EPS of $4.59.

Total wireless service revenue was an industry-leading $20 billion in the fourth quarter, up 3.1% year-over-year. Revenue growth benefited from targeted pricing actions, customer growth, sales of perks and add-on services, and growth in fixed wireless access. This was partially offset by the pressure from promo amortization as well as prepaid revenue. Consolidated adjusted EBITDA in the quarter was $11.9 billion, an increase of 2.1% compared to the prior year period. The increase was driven by higher wireless service revenue and benefits from cost savings initiatives, which were partially offset by investments to drive growth and legacy wireline revenue declines. Notably, business segment EBITDA for the fourth quarter was $1.7 billion, up 3% year-over-year. This represents the first year-over-year increase in quarterly EBITDA for the business segment since the fourth quarter of 2020. Adjusted EPS was $1.10 in the quarter, up 1.9% year-over-year, resulting in full-year adjusted EPS of $4.59.

Tony: Total wireless service revenue was an industry, leading $20 billion in the fourth quarter up three 1% year over year.

Tony: Revenue growth benefited from targeted pricing actions customer growth sales of perks and add on services and growth in fixed wireless access.

Tony: This was partially offset by the pressure from promo amortization as well as prepaid revenue.

Tony: Consolidated adjusted EBIT in the quarter was $11 $9 billion, an increase of two 1% compared to the prior year period.

Tony: The increase was driven by higher wireless service revenue and benefits from cost savings initiatives, which were partially offset by investments to drive growth and legacy wireline revenue declines.

Tony: Notably business segment EBIT for the fourth quarter was $1 $7 billion up 3% year over year.

Tony: This represents the first year over year increase in quarterly EBITDA for the business segments as the fourth quarter of 2020.

Tony: Adjusted EPS was $1 10 in the quarter up one 9% year over year, resulting in full year adjusted EPS of $4.59.

Tony: Turning to our cash flow summary, cash flow from operating activities for the fourth quarter was $10 4 billion, bringing the total for 2024 to $36 9 billion.

Hans Vestberg: Turning to our cash flow summary, cash flow from operating activities for the fourth quarter was $10.4 billion, bringing the total for 2024 to $36.9 billion. For the fourth quarter, it's important to note that we received approximately $2.8 billion in proceeds from the Vertical Bridge tower deal, of which approximately $2 billion flow through cash flow from operations. The remaining proceeds flow through cash flow from financing activities. In addition, we made severance payments related to our voluntary separation program of approximately $600 million. CapEx for the quarter came in at $5.1 billion compared to $4.6 billion in the prior year. The full-year CapEx totaled $17.1 billion, down from $18.8 billion in 2023. We came in at the low end of our guided range, supported by efficiencies in our C-Band buildout and fiber expansion activities.

Turning to our cash flow summary, cash flow from operating activities for the fourth quarter was $10.4 billion, bringing the total for 2024 to $36.9 billion. For the fourth quarter, it's important to note that we received approximately $2.8 billion in proceeds from the Vertical Bridge tower deal, of which approximately $2 billion flow through cash flow from operations. The remaining proceeds flow through cash flow from financing activities. In addition, we made severance payments related to our voluntary separation program of approximately $600 million. CapEx for the quarter came in at $5.1 billion compared to $4.6 billion in the prior year. The full-year CapEx totaled $17.1 billion, down from $18.8 billion in 2023. We came in at the low end of our guided range, supported by efficiencies in our C-Band buildout and fiber expansion activities.

Tony: For the fourth quarter, it's important to note that we received approximately $2 $8 billion in proceeds from the vertical bridge tower deal of which approximately $2 billion flow through cash flow from operations.

Tony: The remaining proceeds flow through cash flow from financing activities.

Tony: In addition, we made San Frans payments related to our voluntary separation program of approximately $600 million.

Tony: Capex for the quarter came in at $5 $1 billion compared to $4 $6 billion in the prior year.

Tony: The full year Capex totaled $17 $1 billion down from $18 $8 billion in 2023.

We came in at the low end of our guided range supported by efficiencies in our C band Buildout and fiber expansion activities.

Hans Vestberg: Free Cash Flow was $5.4 billion in the fourth quarter and $19.8 billion for the full year of 2024, including a net positive impact of $1.4 billion from the tower transaction and voluntary separation payments. This result shows very strong underlying cash flow generation in the business, given that we paid $3.3 billion more in cash taxes in 2024 than in 2023. Net Unsecured Debt at the end of the quarter was $113.7 billion, a $12.7 billion improvement year-over-year, and better by $7.7 billion sequentially. Unsecured debt decreased sequentially primarily due to a debt tender offer of $3.3 billion, the repayment of $1.2 billion of maturing notes in the quarter, and mark-to-market adjustments.

Free Cash Flow was $5.4 billion in the fourth quarter and $19.8 billion for the full year of 2024, including a net positive impact of $1.4 billion from the tower transaction and voluntary separation payments. This result shows very strong underlying cash flow generation in the business, given that we paid $3.3 billion more in cash taxes in 2024 than in 2023. Net Unsecured Debt at the end of the quarter was $113.7 billion, a $12.7 billion improvement year-over-year, and better by $7.7 billion sequentially. Unsecured debt decreased sequentially primarily due to a debt tender offer of $3.3 billion, the repayment of $1.2 billion of maturing notes in the quarter, and mark-to-market adjustments.

Tony: Free cash flow was $5 $4 billion in the fourth quarter and $19 $8 billion for the full year 2024, including a net positive impact of $1 $4 billion from the tower transaction and voluntary separation payments.

Tony: This result shows very strong underlying cash flow generation in the business given that we paid $3 3 billion more in cash taxes. In 2024, then in 2023.

Tony: Net unsecured debt at the end of the quarter was $113 $7 billion, a $12 7 billion dollar improvement year over year and better by $7 $7 billion sequentially.

Tony: Unsecured debt decreased sequentially, primarily due to a debt tender offer of $3 3 billion the repayment of $1 $2 billion of maturing notes in the quarter and mark to market adjustments.

Hans Vestberg: Our net unsecured debt to consolidated Adjusted EBITDA ratio was 2.3x at year-end, down from 2.5x last quarter as we continue to focus on our debt reduction ahead of the closing of the Frontier transaction in alignment with our capital allocation strategy. Now, let's look at our 2025 guidance, which, similar to 2024, reflects our commitment to wireless service revenue, adjusted EBITDA, and cash flow growth. For 2025, we expect total wireless service revenue to grow between 2% and 2.8%. We expect the growth to be driven by anticipated postpaid phone net additions in both consumer and business, fixed wireless access subscriber growth, perk adoption, and pricing actions implemented in 2024 that carry over into 2025. We anticipate significant promo amortization headwinds to impact wireless service revenue growth in 2025.

Our net unsecured debt to consolidated Adjusted EBITDA ratio was 2.3x at year-end, down from 2.5x last quarter as we continue to focus on our debt reduction ahead of the closing of the Frontier transaction in alignment with our capital allocation strategy. Now, let's look at our 2025 guidance, which, similar to 2024, reflects our commitment to wireless service revenue, adjusted EBITDA, and cash flow growth. For 2025, we expect total wireless service revenue to grow between 2% and 2.8%. We expect the growth to be driven by anticipated postpaid phone net additions in both consumer and business, fixed wireless access subscriber growth, perk adoption, and pricing actions implemented in 2024 that carry over into 2025. We anticipate significant promo amortization headwinds to impact wireless service revenue growth in 2025.

Tony: Our net unsecured debt to consolidated adjusted EBITDA ratio was two three times at year end down from two five times last quarter as we continue to focus on our debt reduction ahead of the closing of the frontier transaction in alignment with our capital allocation strategy.

Tony: Now, let's look at our 2025 guidance, which similar to 2024 reflects our commitment to wireless service revenue adjusted EBITDA and cash flow growth.

Tony: For 2025, we expect total wireless service revenue to grow between two and 2.8%.

Tony: We expect the growth to be driven by anticipated postpaid phone net additions in both consumer and business fit.

Tony: Fixed wireless access subscriber growth.

Hans Vestberg: Please note that, beginning in Q1 2025, we are reclassifying recurring device protection and insurance-related plan revenues from other revenue into wireless service revenue. The reclassification of more than $2.9 billion better reflects that these products represent values our customers receive that is complementary to our connectivity services. Where applicable, historical results will be recast to conform to the updated presentation. The midpoint of the guidance implies $2 billion of wireless service revenue growth over a higher base of revenue. Consolidated Adjusted EBITDA is expected to grow 2% to 3.5% compared to 2024. This outlook reflects higher expected wireless service revenue and benefits of ongoing cost transformation initiatives, partially offset by continued pressure in business wireline revenues. Full-year adjusted earnings per share growth is expected to be between 0% and 3%, reflecting the Adjusted EBITDA growth, partially offset by higher depreciation and amortization.

Please note that, beginning in Q1 2025, we are reclassifying recurring device protection and insurance-related plan revenues from other revenue into wireless service revenue. The reclassification of more than $2.9 billion better reflects that these products represent values our customers receive that is complementary to our connectivity services. Where applicable, historical results will be recast to conform to the updated presentation. The midpoint of the guidance implies $2 billion of wireless service revenue growth over a higher base of revenue. Consolidated Adjusted EBITDA is expected to grow 2% to 3.5% compared to 2024. This outlook reflects higher expected wireless service revenue and benefits of ongoing cost transformation initiatives, partially offset by continued pressure in business wireline revenues. Full-year adjusted earnings per share growth is expected to be between 0% and 3%, reflecting the Adjusted EBITDA growth, partially offset by higher depreciation and amortization.

Tony: Adoption and pricing actions implemented in 2024 that carryover into 2025.

Tony: We anticipate significant promo amortization headwinds to impact wireless service revenue growth in 2025.

Hans Vestberg: As we discussed in October, capital spending for the full year is expected to be between $17.5 billion and $18.5 billion. That is an all-in number that includes all of our growth initiatives, including accelerating our Fios expansion. We expect free cash flow in the range of $17.5 to $18.5 billion in 2025, which assumes mid-single-digit growth in upgrades and no change to current tax legislation. Please note that our guidance excludes any impact from the pending acquisition of Frontier. We're currently working with all the regulatory bodies that must approve the transaction. The process is going as planned, and we continue to expect the transaction to close by early 2026. In summary, we delivered on our financial guidance and remained disciplined with our capital allocation approach. We exited 2024 with good momentum in both mobility and broadband.

As we discussed in October, capital spending for the full year is expected to be between $17.5 billion and $18.5 billion. That is an all-in number that includes all of our growth initiatives, including accelerating our Fios expansion. We expect free cash flow in the range of $17.5 to $18.5 billion in 2025, which assumes mid-single-digit growth in upgrades and no change to current tax legislation. Please note that our guidance excludes any impact from the pending acquisition of Frontier. We're currently working with all the regulatory bodies that must approve the transaction. The process is going as planned, and we continue to expect the transaction to close by early 2026. In summary, we delivered on our financial guidance and remained disciplined with our capital allocation approach. We exited 2024 with good momentum in both mobility and broadband.

Hans Vestberg: Overall, we are pleased with how we performed in 2024 and look forward to extending our leadership in 2025. With that, I will now turn the call back over to Hans for his closing thoughts. Thank you, Tony. Let me close by saying I'm proud of everything we accomplished in 2024. Our team delivered strong results through disciplined execution and relentless customer focus. We strengthened our network leadership, transformed our operating model, and positioned Verizon for long-term success. We entered 2025 with clear priorities and momentum across our business. Our network advances continue to grow. Our cost transformation is delivering results, and we're capturing opportunities in mobility, broadband, and private networks. We will maintain focus on our three key financial metrics: wireless service revenue, Adjusted EBITDA, and free cash flow. As I always say, continuous improvements never end.

Overall, we are pleased with how we performed in 2024 and look forward to extending our leadership in 2025. With that, I will now turn the call back over to Hans for his closing thoughts.

Hans Vestberg: Thank you, Tony. Let me close by saying I'm proud of everything we accomplished in 2024. Our team delivered strong results through disciplined execution and relentless customer focus. We strengthened our network leadership, transformed our operating model, and positioned Verizon for long-term success. We entered 2025 with clear priorities and momentum across our business. Our network advances continue to grow. Our cost transformation is delivering results, and we're capturing opportunities in mobility, broadband, and private networks. We will maintain focus on our three key financial metrics: wireless service revenue, Adjusted EBITDA, and free cash flow. As I always say, continuous improvements never end.

Tony: Please note that beginning in the first quarter of 2025, we are reclassifying recurring device protection and insurance related plan revenues from other revenue into wireless service revenue.

Hans Vestberg: We will keep pushing forward to deliver value for our customers and our shareholders. Finally, our industry sits at the center of the next wave of innovation as AI transforms how consumers and businesses operate. Our network assets and capabilities position us uniquely in this evolving landscape. I look forward to sharing more about how Verizon will connect the AI ecosystem on our 8:30AM call this morning.

Tony: The reclassification of more than $2.9 billion better reflects that these products represent values our customers receive that is complementary to our connectivity services.

Tony: Where applicable historical results will be recast to conform to the updated presentation.

Tony: The midpoint of the guidance implies $2 billion of wireless service revenue growth over a higher base revenue.

Tony: Consolidated adjusted EBITDA is expected to grow two to three 5% compared to 2024.

Tony: This outlook reflects higher expected wireless service revenue and benefits of ongoing cost transformation initiatives, partially offset by continued pressure in business wireline revenues.

Full year adjusted earnings per share growth is expected to be between zero and 3%, reflecting the adjusted EBITDA growth, partially offset by higher depreciation and amortization.

Tony: As we discussed in October capital spending for the full year is expected to be between $17 5 billion and $18 $5 billion.

Tony: That is an all in number that includes all of our growth initiatives, including accelerating our fire expansion.

Tony: We expect free cash flow in the range of 17, and a half to $18 $5 billion in 2025, which assumes mid single digit growth in upgrades and no change to current tax legislation. Please note that our guidance exclude any impact from the pending acquisition of frontier. We're currently working with all the regulatory bodies that must approve the transaction the process is going.

Tony: As planned and we continue to expect the transaction to close by early 2026 in.

Tony: In summary, we delivered on our financial guidance and remain disciplined with our capital allocation approach. We exited 2024 with good momentum in both mobility and broadband overall, we are pleased with how we performed in 2024 and look forward to extending our leadership in 2025.

Hans Vestberg: With that I'll now turn the call back over to Hans for his closing thoughts.

Hans Vestberg: Thank you Tony let me close by saying I'm proud of everything we accomplished in 2024, our team delivered strong results through disciplined execution and relentless customer focus.

Hans Vestberg: We strengthen our network leadership transformed our operating model and position Verizon where long term success.

Hans Vestberg: When the 'twenty identify with clear priorities and momentum across our business.

Hans Vestberg: Our network advantage continues to grow our cost transformation is delivering results and we are capturing opportunities in mobility broadband and private networks.

We will maintain focus on our three key financial metrics wireless service revenue adjusted EBITDA and free cash flow.

Hans Vestberg: As I always say continuous improvements never ends we will keep pushing forward to deliver value for our customers and our shareholders.

Hans Vestberg: Finally, our industry sits at the center of next wave of innovation as AI transform how consumers and businesses operate or network assets and capabilities position us uniquely in this evolving landscape I look forward to sharing more about how Verizon will connect the AI ecosystem.

Hans Vestberg: 830, a M call this morning.

Q4 2024 Verizon Communications Inc Earnings Call - Pre-recorded

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