Q1 2025 Verizon Communications Inc Earnings Call
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Good morning, and welcome to Horizon's first quarter 2025 earnings conference call.
At this time, all participants have been placed in a listen only mode and the call will be opened for questions. Following the presentation.
Today's conference is being recorded.
You have any objections you may disconnect at this time.
Speaker Change: I would now like to turn the call over to Mr. Brady Connor Senior Vice President Investor Relations. Thanks, Brad Good morning, and welcome to our first quarter 2025 earnings call and customer value update.
Brady Connor: Brady Connor and on the call with me. This morning are hogs, Vestberg, our chairman and Chief Executive Officer, Tony <unk>, Our Chief Financial Officer, and we have our consumer group CEO, Sam path, who will provide an update on our consumer strategy.
Brady Connor: Before we begin I'd like to draw your attention to our safe Harbor statement, which can be found at the start of the investor presentation posted on our Investor Relations website.
Brady Connor: 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: Discussions of factors that may affect future results is contained in verizon's filings with the SEC, which are available on our Investor Relations website.
Brady Connor: 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: Discussions and comments related to our 2025 guidance exclude any assumptions regarding the potential effects of the tariff environment, owing to the uncertain and evolving nature of these impacts earlier.
Brady Connor: Earlier this morning, a detailed overview of our first quarter results was posted to our Investor Relations website. We also posted supplemental materials relating to today's call on our website with that I'll turn it over to Hans Thank you Randy Good morning, everyone. Let me start by addressing the evolving Paul Lucien macroeconomic landscape, we continue to monitor.
Brady Connor: The ongoing developments and we're confident in our ability to effectively manage our business for our customers and shareholders.
Brady Connor: In pairs of heightened uncertainty our business has demonstrated remarkable strength given the importance and the essential nature of our connectivity services the size and quality of our customer base and the strength of our balance sheet.
Brady Connor: Diverse portfolio of offering serves all market segments and position us for success in any economic environment.
Brady Connor: And with our bias for action and position of strength, we expect that we will not only weather the current environment, but driving it now let me turn to our results.
Brady Connor: We had an exceptional financial start to the year delivering strong growth across our key financial metrics.
Brady Connor: Wireless service revenue was up two 7% at the high end of our guided range adjusted.
Brady Connor: Adjusted EBITDA of $12 $6 billion was our highest reported result ever growing 4% and exceeding our guided range.
Brady Connor: Free cash flow was up over $900 million and enable continued execution or our capital allocation priorities, even with the recent declines in consumer confidence we remain confidence in our ability to deliver on a 20 to 25 financial guidance.
Brady Connor: Our comprehensive portfolio of offerings and strategic moves we have made over the last years position us well for a sustainable financial and subscriber growth, while also improving the customer experience.
Brady Connor: These moves include a brand refresh along with continuous evolution of our customer first offerings such as my plan My home and my base plan organic and inorganic broadband expansion with the pending acquisition of frontier AI connect and satellite partnerships that enables take thing anywhere.
Brady Connor: For free.
Speaker Change: Root metrics recently recognized as the best fastest and most reliable <unk> network in the U S.
Brady Connor: Our network continues to get even better.
Brady Connor: We're on track to deploy C band to 80% to 90% of our planned sites by year end and we are aggressively rolling out five <unk> advanced features.
Brady Connor: On <unk> expansion.
Brady Connor: Ahead of our plan year to date to deliver 650000 incremental passing this year well it thinks about its axis are multi dwelling unit solution is expected to gradually ramp over time, along with continued expansion of homes and pieces is covered with the ongoing C band deployment turning totaled.
Brady Connor: <unk> performance, our segmentation strategy focus on delivering targeted offerings is yielding positive results, we delivered a year over year improvement in combined postpaid and prepaid phone net adds.
Brady Connor: We did have a slow start on postpaid phone net adds largely driven by elevated churn due to recent price ups and pressure from federal government accounts. However, our prepaid net adds of 137000 were the best since attract one acquisition.
Brady Connor: In broadband.
Brady Connor: We continued to take share.
Brady Connor: With fixed wireless access and fiber we have the most complete offering covering all segments of the market and we would cover more than 100 million pregnancies over the time.
Brady Connor: Our fixed wireless access product continues to lead our broadband growth and we have a great momentum to reach our next milestone of $8 million to $9 million fixed wireless access subscribers by 2028.
Excited to expand our broadband opportunity and continue to scale, our mobile and home offerings as we work towards closing the frontier transaction.
Brady Connor: The consumer groups multiyear business transformation effort is progressing as planned and you'll hear more about that from Sam but shortly.
Brady Connor: The business group, our private networks business continues to scale, we closed more than a dozen deals in the quarter, including private networks for advent has a new core.
Brady Connor: We were named a leader in the Gartner Magic quadrant for managed Iot connectivity services worldwide and reached an agreement to deliver a turnkey Iot solution for Atlanta Hawks.
Brady Connor: We have seen accelerated interest in the AI connect and continue to expand our partner ecosystem looking ahead, our priorities are clear.
Brady Connor: Our continued focus on growing wireless service revenue, expanding adjusted EBITDA and generating strong free cash flow.
Brady Connor: Accelerating our mobility and broadband growth and scale private networks.
Brady Connor: Leverage our existing fiber and age compute assets to unlock new revenue stream through our AI connect offerings.
Tony: Focus on financial discipline operational excellence and customer experience and finally execute on our capital allocation priorities invest in the business support and grow our dividend pay down debt and eventually share repurchases with that I turn the call over to Tony Thanks, Hans and good.
Tony: Morning, everyone.
Tony: As we reported earlier the first quarter demonstrated our ability to drive strong financial growth with wireless service revenue growth at the upper end of our guided range.
Additionally, we had our best ever reported adjusted EBITDA result, at $12 $6 billion, and we deliberate and over $900 million improvement in free cash flow from the prior year.
Tony: We improved our total combined postpaid and core prepaid phone net adds year over year, we're taking share in broadband and we continue to innovate with my plan My home and our new my business plan to deliver best in class value across all of our customers.
Tony: Our consumer postpaid phone net losses of 356000 reflect the impact of recent pricing actions.
Tony: We exited the first quarter with positive momentum.
Tony: Consumer postpaid phone gross adds in March were up mid single digits from the prior year and the performance in April continues to be strong.
Tony: Additionally, our new three year price lock in free phone guarantee is resonating in the market.
Tony: We remain confident in our ability to deliver a better consumer postpaid phone net adds year over year for the full year.
Tony: Business phone net adds were 67000 in the period impacted by pressure within federal government accounts.
Tony: We continue to work with customers of all sizes to deliver connectivity solutions that match their needs.
Tony: Our momentum continued to build and core prepaid where we delivered 137000 net ads are strong execution and investment and visible total wireless and straight talk is paying off and we continue to expect positive service revenue contribution from core prepaid in the second half of the year.
Tony: In broadband or <unk> and fixed wireless access offerings are attracting new customers quarter after quarter.
Tony: We had 339000 net adds in the period and we continue to take market share. This.
Tony: This is a solid start to the year and when we expect to build on as we expand our C band and <unk> availability.
Tony: Shifting to financials, we delivered strong results with two 7% wireless service revenue growth.
Tony: This reflects the benefits of pricing actions expansion of fixed wireless access subscribers and continued adoption of perks and premium plans.
Tony: Adjusted EBITDA of $12 6 billion grew 4% in the quarter, which represents our best quarter of year over year growth in nearly four years and demonstrates our sustained and disciplined approach to growth.
Tony: Adjusted EPS was $1 19 for the quarter up three 5% year over year.
Tony: Finally, our free cash flow of $3 $6 billion positions us to continue to pay down debt and alignment with our capital allocation priorities and ahead of the anticipated close of the frontier transaction.
Tony: In closing we are pleased with the financial performance, we saw in the quarter.
Tony: As Hans mentioned, we have a lot of experience managing through uncertainty in the broader economy, and we have a product portfolio that allows us to compete effectively in any environment.
Tony: We remain confident in our ability to deliver on our operational and financial goals for 2025, I will now turn the call back over to Hans.
Speaker Change: Thank you Tony now lets discuss our strategic approach to the consumer market to drive sustainable subscriber and financial growth.
Tony: It all starts with how we compete and go to market.
Tony: Our network is the foundation of everything we offer we have the best and most reliable network and we continue to extend our network leadership with our ongoing C band deployment and broadband expansion with fixed wireless access on fiber, including the pending acquisition of frontier.
Our customer first connectivity offerings deliver unmatched control value and simplicity for all our customer segments.
Tony: Over the last two years, we have introduced targeted offers for all customer segments across mobility and broadband.
Tony: As the market leader, we remain committed to introducing new and innovative offerings that meet the evolving needs. Our customers next is of value added services, which is one of our key differentiators in the market, we offer add on products, including exclusive discounts on some of the top streaming services.
Tony: Netflix and Max given the size on a quarterly dollar base and the scale of our distribution network, we offer rates at customer cannot find anywhere else and we will continue to expand our product portfolio.
Tony: Over the past few years, we have dedicated substantial resources in capital to enhance our customer experience through various initiatives, including AI for customer care and personalization, although the industry, including Verizon still has room to improve we have made great progress towards our goal of seamless.
Tony: Interactions lastly, our brand is a pivotal element in our go to market strategy recognizing its importance. We made the strategic decision to refresh our brand last year and we are committed to further developing and strengthening our brands to drive continued growth and customer engagement.
Tony: By focusing on these key pillars of our value proposition, we attract new customers foster loyalty among existing ones and maximize the long term value of each customer relationship.
Tony: This holistic approach ensures that we remain competitive in the marketplace and drive sustainable subscriber and financial growth now, let me turn to Sam who will provide more details on our consumer transformation journey. Good morning, everyone by.
Sam: When I stepped into the role of consumer unit CEO, just over two years ago, Hans and I immediately set a course for a multi year transformation that offers what customers need in today's increasingly dynamic economic environment.
Speaker Change: We're committed to delivering real value to our customers, while driving sustained long term growth.
Speaker Change: Let me walk you through our transformation journey and the results so far.
Speaker Change: Beginning in 2023.
Speaker Change: We ramped sales engine moving to a regional model individual sales incentives and a stronger focus on local marketing. We also launched my plan, giving customers more control value and simplicity.
Speaker Change: This allowed us to significantly reduce our perceived price premium while driving higher average revenue per user through books insurance and financial services.
Speaker Change: In 2024, we relaunched our brand and accelerated mine plan and my home adoption.
Speaker Change: We solidified the Verizon model of convergence with the announcement of the frontier transaction and ramping up our current in footprint fiber build.
Speaker Change: This transaction will help enable our long term goal of offering broadband to over 100 million premises, including fiber passing of $35 million to $40 million.
Speaker Change: We also turned around our prepaid business, which includes the industry's largest portfolio of brands.
Speaker Change: This was driven by a revamp of our value propositions.
Speaker Change: Branded exclusive and third party distribution and instilling the same operational rigor, we introduced in our postpaid business.
Speaker Change: Core prepaid brand return to subscriber growth in 2024 and achieved our best results since the Tracfone acquisition this quarter.
Speaker Change: This demonstrates our ability to win across all market segments.
Speaker Change: Customers are responding to our office and we anticipate gaining market share in prepaid this year.
Speaker Change: As we enter year three we are doubling down on our customer first strategy with an increased focus on customer retention with the Verizon value guarantee and industrial leading three year price lock.
Speaker Change: Foreign guarantee for everyone and savings you cannot get elsewhere.
Speaker Change: Before I dive into the Verizon value guarantee that is quickly recap what mix on offering stand out from the competition.
Speaker Change: Our strategic differentiation centers on creating real customer value through a unique combination of network superiority and customer first offerings.
Speaker Change: My plan in my home offerings have been the key drivers of our transformation. These.
Speaker Change: These offerings go beyond basic connectivity to include premium entertainment and adjacent services that deliver significant savings for the customer.
Speaker Change: Today, you can get eight of the most popular streaming services from Verizon for $50 that is value customers can only get at Verizon.
Speaker Change: Our portfolio of adjacent services include industry, leading insurance products for both mobility and connected home and give customers even more peace of mind.
Speaker Change: We offer even more ways to save through our financial service partners and products, including the Verizon Visa card and the open bank high yield savings account with Santander.
Speaker Change: Exclusive to Verizon customers.
Speaker Change: This business is growing at a double digit rate and bringing in margin rich service revenue.
Speaker Change: Finally, we launched Verizon access loyalty program, giving customers access to events like the exclusive pre sale of 100000 beyond say concert tickets NFL, NBA and NHL games and lifetime experiences such as the 140000 feet tickets, we gave out the first Verizon soup.
Speaker Change: Boil fan Fest parties.
Speaker Change: There is no other plan in the industrial like my plan in my home.
And the beauty of having them build side by side is that ability to offer a seamless account linkage and promote joint office.
Speaker Change: For converged customers, our retention rates are significantly better than those with just mobility broadband validating our convergence strategy.
Speaker Change: Simply put we offer the most differentiated value proposition in the industry and with our recently launched office for both new and existing customers, we are delivering what people want and need on their homes.
Speaker Change: Yeah.
Speaker Change: So now, let's turn to what we announced a few weeks ago.
Speaker Change: We launched a game changing offer.
Speaker Change: Our price lock in a free fall in guarantee with trading for new and existing customers.
Speaker Change: This also was contemplated in our 2025 guidance and is a key component of our strategy to deliver sustainable growth.
Speaker Change: The premise of this offer began several quarters ago.
Speaker Change: Emerging consumer trends showed a growing desire for predictability price control and value.
Speaker Change: All things that are particularly relevant in today's economic environment.
Speaker Change: Customers want peace of mind, and we are giving them just back.
Speaker Change: The key elements of this offer include a three year price lock guarantee that cover the network portion of all tiers of my plan in my home and current customers automatically enrolled on day one.
Speaker Change: Guarantee trading credit for phones to new and existing customers within that plant is.
Speaker Change: Free satellite text messaging on all plans Custer.
Speaker Change: Customers should not have to pay for texting and it's part of the value we provide to our customers.
Speaker Change: Customers Love, our books and the massive savings did deliver.
Speaker Change: We had over $10 million both subscriptions at the end of the first quarter.
Speaker Change: We now anticipate 15 million subscriptions on our platform by the end of this year.
Speaker Change: An increase of 1 million books from our prior forecast in the year end 2025.
Speaker Change: They love getting more value for their money with Verizon visa card and open bank high yield savings account.
Speaker Change: And customers with both mobile and home services and a free monthly book that will drive customer loyalty.
Speaker Change: We did not just launched an offer we set a new standard for customer value and customers are responding very well.
Speaker Change: Early indicators in April suggest strong gross add momentum and very good reception from customers, including many new customers attracted to horizon.
Speaker Change: We expect the Verizon value guarantee to provide many benefits to horizon.
First growth.
Speaker Change: We'll continue to drive revenue through higher volumes higher premium mix.
Speaker Change: <unk> adoption and upgrading customers to my plan.
Speaker Change: All of that is in addition to revenue benefits from our growing <unk> base, along with the wholesale business and the momentum with prepaid.
Speaker Change: We expect to turn service revenue positive in the second half of the year.
Speaker Change: Second better customer retention.
Speaker Change: In the past, we've made necessary price adjustments, which impacted Sean.
Speaker Change: We expect trends to improve through the year and this launch puts us on a path to get back to the lowest churn in the industry over time.
Speaker Change: And Todd we've constructed this offer in a flexible manner to give us continued financial discipline.
Speaker Change: The price lock applies to my plan in my home network plans only.
Speaker Change: It doesn't apply to books discount taxes fees and we can still adjust price on legacy plants are introduced new plant, if we see an opportunity in the market.
Speaker Change: Another important note is that the freephone offer will be deal by plan and required a device created.
Speaker Change: Overall, we believe this is just the beginning of how we on.
Speaker Change: Lasting customer loyalty and continue to grow the Verizon base <unk>.
Speaker Change: Including deliver a better consumer postpaid phone net adds in 2025 compared to 2024.
Speaker Change: We are back to leading the market not reacting to it and we are the only carrier with the brand portfolio covering every price point positioning us for further growth across every segment of the market.
Speaker Change: The three year price lock guarantee is the next phase in our consumer transformation.
Speaker Change: Giving consumers the best network value and 24, seven support with pipeline and Michael.
Speaker Change: Plus additional peace of mind with a free <unk> and satellite texting we.
Speaker Change: We want to be People's first choice, providing products services and experiences they can't get elsewhere.
Speaker Change: With that let me turn back to Hans Thank.
Hans Thank: Thank you <unk> in summary.
Hans Thank: We are on plan with our multiyear consumer transformation.
Hans Thank: <unk>, the most differentiated value proposition.
Hans Thank: We are well positioned to drive subscriber and financial growth.
Hans Thank: I'm incredibly proud of the team's dedication and effort transforming the business I'm confident that the actions. We are taking will set the business up for sustainable long term growth and extend our industry leadership.
Hans Thank: Now we are ready for questions.
Brad: Thanks, Hans Brad we're ready for the first question.
Brad: Thank you we will now begin the question and answer session.
Speaker Change: If he would like to ask a question. Please press star one on your Touchtone phone.
Speaker Change: On mute your phone and record your name clearly when prompted your name is required to introduce your question.
Speaker Change: If at any point. Your question has been answered or you would like to withdraw your request you may remove yourself by pressing star two.
Speaker Change: One moment please for the first question.
John Public: And the first question will come from John Public of UBS, Sir Your line is open.
Speaker Change: Hey, Thanks, and good morning, guys.
Speaker Change: Two questions if I could.
Speaker Change: Maybe first of all homes on the subject of tariffs any additional color you can give us.
Speaker Change: Paris.
Speaker Change: First handsets and then telecom equipment could affect the business on the handset side, you expect promotions to sort of scale with tariffs and what do you expect the impact would be on upgrades and then on the equipment side.
Speaker Change: Tariffs on equipment coming into the U S.
Speaker Change: The budget stays the same and maybe you do less homes passed or just how that unfolds and then.
Speaker Change: Secondly for stand Pat Thanks for all the color on the on the consumer segment and that's been the strategy.
Speaker Change: Thanks for the color on that on the gross adds leaving the quarter can you talk a little bit about churn.
Speaker Change: Is all of the new plans and promotions.
Speaker Change: <unk> offers you have in place is that churn in the second quarter or do we have to wait until the second half of the year and that comment on getting back to industry, leading churn is that something you expect to achieve by the fourth quarter by the end of this year.
Speaker Change: More color on how that plays out would be great. Thank you.
Joan: Thank you Joan.
Speaker Change: Let me talk about the types of course therapy.
Joan: Moving targets.
Joan: But.
Joan: If we take our capital expenditures, it's a very small portion of the of the 18 billion, which is the midpoint of the guide this year that is exposed to amitai rapes and on top of that we are working with all our suppliers and we have done. So during COVID-19 will have no impact at all with <unk>.
Joan: Blind Shane issues, there were because I think my team is the best best in the industry to handle that so that will not change any type of investments where do we in capex or anything we cannot foresee that when it comes to handsets.
Joan: That's also of course very early to say, where the tariffs are going to go and what's going to happen but in general.
Joan: If the tariff is going to be as high FSA for on the assets. We know we're not planning to cover that.
Joan: That's not going to be possible. So we will continue to be financially disciplined in whatever promotions lab, but we will not cover and the enormous increase on tariffs on handset, that's ultimately going to eat the consumer in the market.
Joan: But again, it's too early to say, we don't know where tariffs are going to go but I think my team is well prepared for handling all of it.
Speaker Change: And on the on the consumer side I mean, I think Samsung has talked quite a lot about that I think that the team has done a.
Joan: Tremendous work with.
Joan: Doing all the new proposal center promotions, where I had all the way from LIFO My plan in my in my home and all of that and now we come to the third leg with the price look.
Speaker Change: On the phone Guaranty I think we're right in the moment and we're leading from a very strong financial position, but I'll, let Sam talk a little bit more about the churn in wherever you all there. Thank you Hans.
Speaker Change: We made a decision to price up second cohorts in December and January and they were the right tradeoffs to make it helped us locked our revenue for the rest of the and it was the right thing to do in Q1, the cohorts that were priced up had higher elasticity than anticipated.
Speaker Change: The higher churn can be largely attributed and isolated to those cohorts. So because of that we think John is transitory. It is abating and we expect to get back to you by the second half of the year.
Speaker Change: And we've got other levers that we are deploying quite aggressively the first and the biggest one is verizon value guarantee the three year price lock into free phone base is resonating really well both for our base and for new customers as well our second C band expansion as Joe gets to between 80 and 90% of all macros to B C band enabled you tend.
Speaker Change: To see lower churn when that happens as well and the Verizon model of convergence look we added 339000 broadband customers between consumer and business and strong volumes, but the vast majority of those customers are converged, which tends to give a benefit to John and then lastly is better customer experience, we have a lot of AI driven costs.
Speaker Change: <unk> experiences updates in the funnel in the second quarter and the rest of the year. So given all of this we feel that John is transitory abating and expect it to get back to a be a posture by the second half.
Speaker Change: Great. Thanks, guys, Yeah, Thanks, John Brad we're ready for the next question.
Speaker Change: The next question will come from Ben Swinburne of Morgan Stanley. Your line is open Sir.
Ben Swinburne: Thank you and good morning.
Ben Swinburne: Maybe just to follow the conversation with sand pass could you talk a little bit about the March and April gross adds improvement and sort of how much that's been tied to specific promotions.
Ben Swinburne: Including the new three year price lock and there was a lot of talk during the first quarter at various conferences about competitive intensity I didn't really hear you guys talk about that as being something that's incrementally more concerning et cetera. So maybe frame the gross adds.
Speaker Change: Terry if you can in sort of the new plans in the context of the competitive environment.
Speaker Change: And then maybe for Tony 4% EBITDA growth for the quarter, obviously set you guys up really nicely for the year.
Speaker Change: I think your business margins were the highest in since 21 anything in the quarter around expenses that we should think about as nonrecurring or any commentary on how you're feeling about the EBITDA guidance for the year. It seems like you could be trending maybe to the upper end of the range, but I'll, let you talk to that if you. If you will thank you. Thank.
Speaker Change: Thank you Ben I start and then I'm going to hand, this over to SAP at until only but on the competitive environment. I think we have seen that four four for quite a while I mean, it is a competitive market, we performed well in that market I think our propositions that we have had in a market that is really resonating with our customers both on the business side and on the consumer side.
Speaker Change: And then adding also both the wireless piece is on the broadband business I mean, the broadband business continued to gain share in this quarter.
Speaker Change: That's why I'm not sure how many quarters right now as well as now were turned around the prepaid base as well, which I'm very proud of what the team has done. So I think we're competing well of course going to be a competitor I'd say its a.
Speaker Change: It's a great product and it's a great market, but we there's nothing new when it comes to that.
Speaker Change: Sanford to comment on the momentum that we have gained in March and April but on the finance before I move it over to Tony Yeah. What you saw in this quarter is that how hardware worked with efficiency because we have leveraged right now we grow two 7% and we have 4% bottom line.
Speaker Change: Our expenses, if you take away the handset cost is down.
Speaker Change: Prior to last year, so, we're coming down and expenses and the team is doing a great job here and I have to say also on the Verizon business group. They have been on the journey for years right now with the headwind of wireline to take down the cost at the same time building AI connect fiber broadband basis wireless business and now you start seeing that daytona around them.
Speaker Change: The second quarter of year over year growth and I know that Kyle and the team are committed to continue that work. So I would start with that but talk about the momentum in March and April and then we'll go over to Tony to talk a little bit more about leverage.
Speaker Change: Look it's always a competitive market and it will be pulse in and out promotions as we see volumes in the market and when we have an opportunity to go for volumes. We go for it if we have a playbook, we like our playbook, it's an aggressive playbook, but it's also a playbook that lets us when in March we started seeing mid single digit growth in gross ads in March.
Speaker Change: And the last two weeks of March was a very good and strong for US as we came into April we launched the Verizon value guarantee and we're seeing double digit growth in gross adds I think that's largely because of how well the offer is resonating both for base as well as new customers coming into the category. So we have good momentum coming out of margin.
Speaker Change: Currently in April right now.
Speaker Change: This gives us comfort that in 2025, we will have better for net that down in 2024 because of the back half the year, we see churn coming back that would be a posture and continued momentum on growth at the combination of those two is what gives us comfort that we will have a good for net idea in 2025.
Speaker Change: Okay. Good morning, Ben So on the EBITDA on your question look we're off to a great start and we're very confident in the EBITDA guide and it starts with a strong service revenue growth that Hans mentioned, a two 7% and very healthy customer economics. When you when you look at that versus the amortization as well and as Hans mentioned, we continue to focus on the cost transformation work.
Speaker Change: Always working to make the business more efficient whether it's the customer care managed services work that Kyle and sand path are doing day in and day out or the network decommissioning as well and we also completed our voluntary separation program and we expect to see a full run rate benefit of that for the balance of the year and we've said many times volumes are important, but we're going to drive volume.
Speaker Change: And be very disciplined in support of our service revenue EBITDA and free cash flow guidance and that has not changed at all.
Speaker Change: On your question on business margins look has mentioned this earlier the team is doing a great job in growing the wireless portfolio. If you think about the mix of business shifting more wireless now Kyle and his team have been growing both.
Speaker Change: Mobility and SWA for many quarters now so that mix shift is skewing more wireless and as that skews more wireless that brings more margin with it and we're also seeing some early contribution from private <unk> networks and also AI connect where we saw improvements in the fourth quarter and then on the cost side. The team continues to take cost out being very disciplined at the deal desk.
Speaker Change: Particularly on business wireline and also the <unk>.
Speaker Change: Work, we're doing around Hcl with with managed services and also the network becomes as well. So we're pleased with the start to the year. Obviously the goal here is to grow the <unk>.
Speaker Change: Business margins for the full year and we're off to a great start.
Speaker Change: Thank you everybody. Thanks Ben.
Brad: Brad we're ready for the next question.
Speaker Change: The next question comes from Jim Schneider of Goldman Sachs. Please go ahead Sir.
Jim Schneider: Good morning, Thanks for taking my question, maybe first off on the consumer side, maybe sand path or Hans you could talk to the broad sort of behavior, you're seeing from consumers from March into April are you seeing any kind of significant change in consumer behavior trade downs more reticence to.
Jim Schneider: To upgrade phones or actually are you seeing potentially consumers react to the potential for tariffs and actually pulling forward some of the upgrades.
Jim Schneider: Into the month of April maybe how are you thinking about that the impact of sort of knock on impact of tariffs on consumer behavior anything youre seeing in terms of the deterioration of consumer in terms of health credit metrics or or or whatnot.
Jim Schneider: Then maybe as a second question can.
Jim Schneider: Can you, maybe just sort of talk about.
Jim Schneider: Sort of following on on the business EBITDA question, I mean that really sticks out to me as the best growth you've seen in quite some time can you maybe talk about the cost metrics underlying that.
Jim Schneider: Are those structural in nature.
Jim Schneider: The Hcl arrangement.
Jim Schneider: Or are there any one time effects that we should think about and do you think business EBITDA growth is sustainable from here. Thank you. Thank.
Jim Schneider: When it comes to consumer behavior and in general we haven't seen.
Jim Schneider: And a major consumers shifts in behavior, even though we read the same articles that everybody else that consumer sentiments come back or coming down.
Jim Schneider: Of course, we have a product of mobility and broadband is so essential for our consumers and for our business customers because it's just so relevant so we haven't seen that.
Jim Schneider: Tony can talk a little about the payments as well, but they are continue very intact no deterioration on payments and then they're being speculation also of any growth in handsets due to waters for tariffs I think what we can see nothing sat but can talk about that is that we haven't seen this.
Jim Schneider: What the uptake, but I think it comes more from our offering that we start with a new three year price lock in as well as that we had and your phone guarantee trading I think that has driven a little bit more handsets for us not per se, but maybe it's out but then Tony will talk later, but then Tony will talk about the margin.
Speaker Change: So let's start with some thought about.
Speaker Change: About the momentum there if we have good momentum in our business in March and April.
Speaker Change: Very strong in April have double digit growth that we are seeing good premium mix in other words got a portion of our base new customers that is taking a premium plan that mix has actually gone higher so that suggests that our value proposition is anything well and customers like what we offer in terms of upgrades look Q1 was a bit soft and we didn't.
Speaker Change: Chase volumes, where there was no demand we didn't think it made sense for us to chase volumes that for the whole year. I think we are still committing to a mid single digit growth.
Speaker Change: Overall upgrades, there will be some volatility quarter to quarter that walks through as we come into April there'll be some pent up demand, mostly from the Verizon value guarantee customers really like that so they are going to take some take advantage of that but overall for the year. We still think mid single digit growth for upgrades holds Tony yes sure.
Speaker Change: Jim So on the on the customer payment trends look Han said this in the in the prepared remarks, the business is very resilient and the demand and priority for connectivity is still high and the payment trends. We see are still very stable in both consumer and business and very much at normal historical levels, the aging and the quality of the receivables continue to be very.
Speaker Change: Strong and the bad debt, we see and as you know we have a very high quality customer base and the bad debt that we do see trends with with volume growth and you see the gross add growth.
Speaker Change: As always we're going to continue to monitor the trends.
Speaker Change: Closely but no change in trends there.
Speaker Change: And then on the Verizon basis group's performance.
Speaker Change: Think that they are now able to year over year improvements on the focus for Kyle and her team together with Tony is to continue to drive year over year improvements.
Speaker Change: It can be a little bit up and down but definitely the focus and the target is clear for us continue to grow our Verizon business.
The bottom line.
Speaker Change: Their proven even two quarters right now so we are we're pleased with what we're seeing right now.
Speaker Change: Yeah, great. Thanks, Jim Brad we're ready for the next question the.
Speaker Change: Our next question comes from Michael Rollins of Citi. Your line is open Sir.
Michael Rollins: Thanks, and good morning.
Michael Rollins: As you are looking to still target better consumer so net adds and 25 over 24 can you give us an update on how youre seeing postpaid phone <unk>.
Michael Rollins: Industry growth and the volumes you are expecting for the year and how important that is.
Michael Rollins: Relative to your talk.
Michael Rollins: Target.
Michael Rollins: For your own volume and then within that are you seeing any impacts from changes in immigration policy.
Michael Rollins: And do you have a better sense of how to frame that potential sensitivities to the solar operating prospects and then just one more if I could you mentioned.
Michael Rollins: So an impact from the federal government business postpaid phone net adds and just curious if theres additional impacts that you could see as you move through this year, whether it's on the wireless side or on the business wireline side. Thanks.
Speaker Change: His thoughts.
Speaker Change: First of all I'm Gonna, let <unk> comment on the postpaid market.
Speaker Change: But I would say on the immigration, we don't have any impacts of that.
Speaker Change: That's not a.
Speaker Change: Something that we haven't seen anything from a when it comes to the federal government.
Speaker Change: What we comment on that in quarter was wireless where we had a little bit the reductions in wireless.
Speaker Change: <unk>.
Speaker Change: We saw some impact of that.
Speaker Change: A new government and their efficiency work, but all in all all other things in wireless when it comes to large enterprise and SMB is very strong and continue to take chairman I'm not sure. How many quarters, we have now with Kyle and team taking share in and continue to grow the wireless portfolio I'm pleased what I see.
Speaker Change: So that's what it is but it's not but talk about the postpaid market.
Speaker Change: This is on the consumer look earlier in the year, we had estimated that the market is likely to grow between eight and $8 5 million postpaid phones, both for the consumer and the business segment sitting where we are right. Now we think that number holds but remember that more than 50% of that is pre to postpaid migration customers who had on prepay.
Speaker Change: Clients migrating to postpaid this is not a segment Verizon typically plays and dedication we played through our partners, but vertically we do not play in this space that that segment could have some impact, but very little impact Verizon.
Speaker Change: Second is on the prepaid side immigration could impact the lower end of prepaid. That's also not a segment, where Verizon has a high level of participation in that segment, so and on prepaid despite lower immigration last three quarters, we've actually seen our best performance in a very long time, we're gaining on the higher end of prepaid which is.
Speaker Change: We are seeing strong performance, despite a low immigration in those segments.
Mike: Great. Thanks, Mike Yeah, Brad we're ready for next question.
Speaker Change: The next question comes from Sebastian <unk> of J P. Morgan Your line is open.
Mike: Okay.
Mike: Mr. <unk> line has just.
Speaker Change: We'll go ahead and move on to Mr. Peter Zaffino of Wolfe Research. Your line is open Sir.
Peter Zaffino: Hey, good morning, everybody.
Mike: If I may.
Speaker Change: Marketing in light of your churn experienced over the last two years.
Speaker Change: As the markets ARPA expectation.
Speaker Change: Adapts to a less aggressive pricing growth trajectory are you seeing too much pressure from.
Speaker Change: What are the expectations are about pricing too.
Speaker Change: Serve all your needs and then secondly on SWR Im wondering when that multi year expansion plan might be under pressure.
Speaker Change: Either or both of Capex or tower rental costs.
Speaker Change: 500 yourselves become more utilized thank you.
Speaker Change: Uh huh.
Speaker Change: I can start with the second question on fixed wireless access I am not sure 100% understood it but what we see in fixed wireless access is exactly what I articulated in the second half of 'twenty to them for that.
Speaker Change: That is when we now start deploying C band in the <unk>.
Speaker Change: Urban markets are all FX is a little bit smaller.
Speaker Change: And remember our.
Speaker Change: Priority is mobility first when we rollout C band so that means that the potential Oh open for sale, it's a little bit smaller and we said that's going to happen in the first half of what we're doing to add to that is of course number to number one the MDU solution that we now have launched in more than 50 markets.
Speaker Change: Start ramping.
Speaker Change: During the year and that will help us to have more and then of course, we're going to bring out the C band more widely our plan is to go to 80% to 90%. This year. So that's going to increase and then we have our files, which last year was roughly 450000 RFS were ramping up of 650 that will help us to continue so there's no slowdown in.
Speaker Change: Speed or appetite or in crystal customers is just technically how the rollout is working with fixed wireless access. So again, we're super happy with the product and we think that will have the two superior product in the market, we had failures and fixed wireless access and we have the most.
Speaker Change: Most are covered broadband subscriber supplier in the market. So very excited over that continue.
Speaker Change: Continuing with that I will leave the question to Sam but around the business I didn't really get Hans if I. If I could just briefly follow up before we get to pricing. The purpose of my question was a bit more.
Speaker Change: Focus on your multi year guidance as opposed to your 2025 execution.
Speaker Change: I think we can all agree that in certain locations youre going to experience more highly utilized cells over time as you achieved your success and SWA and I'm wondering what year should we expect to see some pressure on capex as a result of that given the desire to achieve a lot of <unk> growth. So in the multiyear plan.
Speaker Change: We'll have 228, there is no pressure that's part of our normal rollout.
Speaker Change: As always Joe.
Speaker Change: Our network team they are always building more.
Speaker Change: Kept Pasadena is needed so theres, no particular pressure and the multiyear plan, where it said the reach eight to 9 million subscribers, that's going to that's going to be managed would it be a you rollout the C band.
Peter Zaffino: Thank you helpful. Okay. Thanks, Peter for the question look I don't want to use this is not the time to discuss future pricing. So what I will talk about motives wireless service revenue and how we think about it in the medium term.
Peter Zaffino: As far as the realized and value guarantee it was contemplated in our 25 guidance and but let me talk about some of the puts and takes that we have in our wireless revenue. The first is higher volumes, we will have higher volumes in <unk> 25, compared to 24 and that will help with wireless service revenue. If I can do is only 50% of our.
Peter Zaffino: This is on my plan with the Verizon value guarantee that a more incentives for customers to migrate to my plan, which tends to be accretive to revenue immediately longer term look we have step ups. There is lot of value in that ultimate high end plan, including an upgrade to unlimited hotspot, which is which we did last week and it's really helping with the premium mix books isn't.
Peter Zaffino: Another area that we'll continue to grow we had said that we'd get to 14 million books by the end of this year.
Peter Zaffino: I am happy to say that I think we have line of sight to $15 million, an increase of 1 million Bucks.
Peter Zaffino: And by the <unk> and <unk> looked at is the place for good strong service revenue growth both on volume, but also in our pool with a much higher premium mix that we had planned.
Peter Zaffino: Value on our prepaid business historically has been a drag on our service revenue in 2024. It was a duck, 8% drag on the overall service revenue, we expect that to turn positive in the second half as volumes grow nicely and that will help with that long term service revenue growth and last as a wholesale business. That's healthy service revenue growth margin and so those are all the different.
Peter Zaffino: Levers that we have at our disposal to drive long term wireless service revenue growth and we are very comfortable with sustained growth in our business.
Speaker Change: Yeah. Thank you yeah. Thanks, Peter Brad we're ready for the next question.
Speaker Change: We're going back to Sebastiano petti of Jpmorgan. Your line is open Sir.
Speaker Change: Hi, Thank you.
Speaker Change: Joining me back in the queue.
Speaker Change: One quick question just on EBITDA in the first quarter here and how we should be thinking about that.
Speaker Change: Obviously EBITDA there was <unk>.
Speaker Change: SG&A side and consumer was yes, I wouldn't necessarily say depressed, but was there any perhaps.
Speaker Change: Savings or pullback in spend related to SG&A that will.
Surface or be a bit more aggressive in <unk> and beyond as we think about the price guarantee and getting some of I guess advertising and sales and marketing push behind that so that's a quick just a housekeeping question.
Speaker Change: And then as you're thinking about the company's broader.
Speaker Change: Multiyear convergent strategy.
Speaker Change: Obviously there is.
Speaker Change: Some some fiber available in the market as well as others looking for potential partners, but if you just step back how do you think about perhaps or does it makes sense to either partnering with additional fiber providers to accelerate the fiber to the home or youre your fiber locations push or does it perhaps.
Speaker Change: It makes sense to accelerate your fiber footprint build engine somewhat at the expense of leverage and free cash flow and enter in the interim ahead of the frontier deal close thank you.
Speaker Change: Thank you I think.
Speaker Change: I can start with the fiber and I will leave it to to Tony to talk about the beat on the cost savings.
Speaker Change: On the fiber, we all read the ramping up right now our fiber deployment and that's contemplated in our Capex.
Speaker Change: From 450 650, so that's ongoing.
Focus right now is of course to close frontier and when we have frontier close we have said initially as we didn't have all the data that plus 1 million office.
Speaker Change: Yeah, it should be.
Speaker Change: We're targeting and plus means plus we haven't defined and that we need to get closer to the closing two to give you an update and we will do that so we're very focused on that and see that we're doing the right thing and then on convergence.
Speaker Change: The only thing I would say first of all I think we have owners economics on everything in broadband and mobility, which means that we have a great position with convergence.
Speaker Change: Big portion I would say the majority then maybe.
Speaker Change: But can comment of it if you take the majority of all the customers coming in on broadband this quarter. They all convert.
Speaker Change: So it's actually working for us so maybe it sounds like you can comment on that first and then we'll go to Tony on the EBITA Huntington. We saw 339000 broadband net adds both for the business and consumer side spread over <unk> and files and the vast majority of them.
Speaker Change: Converged offering.
Speaker Change: <unk> had mobility and broadband together with us and we are still holding on a plan that every time you combine the two we tend to see a 50% reduction in mobility, John when we have fiber and introduction mobility, John when we have FW as well so the big.
Volumes have been very strong, but secondary a converged posture is improving every single day as that happens and that helps us long term churn, but also proves the Verizon model of convergence, which tends to be very demand led it.
Speaker Change: Based on our strong offering and giving customers what they want because flexibility not just using price and promotions to get the converged offering.
Speaker Change: Yeah, Hey, Sebastiano on your question on EBIT look we started out of the gate very strong with 4% growth and we were very disciplined in our approach we didn't chase volumes in the first quarters, we knew we had the.
Speaker Change: The Verizon value guarantee launching in early April so we stayed very disciplined there and we launched it from a position of financial strength and that was very important if you look across the margin profiles, because the team sports or whether it's consumer business. We guide at the consolidated level and we also had very strong cash flow in the quarter as well and I'm proud of the cash flow result.
Speaker Change: <unk> $900 million of free cash flow improvement and a lot of that coming on the operating cash flow side. So we're very confident in the in the EBITDA growth and the start to the year.
Sebastian: Thank you yeah, great Sebastian Thanks, Brad ready for the next question.
Speaker Change: The next question comes from Craig Moffett of Moffett Nathanson. Please go ahead Sir.
Craig Moffett: Hi, good morning.
Sebastian: You just talked about.
Craig Moffett: What my previous question was going to be about convergence. So let me shift a little bit too.
There's a lot of talk and expectation about a renegotiation of your.
Craig Moffett: Your <unk> agreement with the cable operators can you just talk about that a little bit as to.
Craig Moffett: How the relationship with the cable operators as customers has been evolving and.
Craig Moffett: What you expect to happen with the renegotiation. This year do you maybe just conceptually do you think of the cable operators as part of your convergent solution in the sense that they are offering Verizon wireless service themselves or do you think of them as a convergence competitor.
Thank you Craig.
Craig Moffett: I know that we cannot.
Speaker Change: Deep dive in our <unk> relationship, but I will try to do my best here number one our strategy is to build a network once and have as many profitable connections on top of it. That's a that's also where our <unk> and <unk>.
Speaker Change: Our partners are playing a role we I would say we have a very good relationship with our <unk> partners.
Speaker Change: And the business the business relationships. So we continue to have a good conversation with them.
Speaker Change: Offering them service on the best network in the United States. So that's the only thing I can say, but we this is an accretive business for us that is important in our <unk>.
Speaker Change: Overall strategy and hopefully my.
Speaker Change: Our partners and our customers on the <unk> side feels the same but that's at least what I believe.
Speaker Change: Perfect.
Speaker Change: Yes, Thanks, Greg.
Speaker Change: Brad ready for the next question.
Speaker Change: The next question comes from <unk> Venkatesh Werner of Barclays. Your line is open.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: Again.
Speaker Change: Yes.
Speaker Change: The $40 million number.
Speaker Change: Okay.
Speaker Change: Today's number will not be there.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Secondly, there is some spectrum bands that may come up at auction this year than maybe over the next couple of years as well.
Speaker Change: We need to get an update in terms of your spectrum position and how you guys are thinking about some of the bands coming out okay. Thank you.
Speaker Change: Thank you Ken I hope that you're.
Speaker Change: You know what you're seeing in a variety of online because its also little bit wobbly and how I think I heard your question and the first one was around the long term plan of $35 million to $40 million of fiber.
Speaker Change: Coverings.
Speaker Change: That's the long term plan, we're having and again we did that.
Speaker Change: Communication when we just had made the offer to acquire frontier.
Speaker Change: We are of course in the planning stage right now and of course working through the regulatory approval.
Speaker Change: <unk> as soon as we get more clarity on closer to the closing of frontier, we will do more updates where we are.
Speaker Change: Timing et cetera, and secondly, I would say.
Speaker Change: Everything with the frontier transaction is going as planned our plan is to close it in the first quarter. So that is going according to plan, but we're already planning stages right now as a spare have not that the quieter MTT in their hands.
Speaker Change: But as soon as we are closing.
Speaker Change: Closing in on that we will have more updates where we are but that was a long term number we gave when we.
Speaker Change: Made the acquisition when it comes to spectrum I think first of all we have a really good position on spectrum I think the C band and millimeter wave positions that we have is really dealing and we have talked about it on previous calls that when we deploy C band, we have no assurance that the step ups, we're creating fixed voice.
Speaker Change: Texas opportunity. So it is really making a difference for us so the secondhand market spectrum is always coming in and out we always do an evaluation if it makes sense for us to buy it it's a buy versus build but I don't see any major secondhand market.
Speaker Change: I'm coming up I think it's more important long term for the U S government for the competitiveness of the U S to actually bringing out spectrum all the time.
Speaker Change: In order for the carriers to continue to grow and I think that we all are.
Speaker Change: Our aligned adapting the industry, it's going to be important, but that's not a short term issue not even medium for us but over the long term U S needs to come out we expect them to continue to compete especially with the advanced and <unk> coming later on.
Speaker Change: Yeah. Thanks, Brad.
Speaker Change: Brad we're ready for next question.
Speaker Change: The next question comes from Sam Mchugh of BNP. Your line is open.
Okay. Thanks, guys just two quick ones on the tariffs you sounded pretty relaxed on so I was just wondering why you I've got to caveat the guidance, where could we see an impact from tariffs potentially part one.
Speaker Change: And the second question on broadband obviously, a lot of talk about kind of market weakness in wireless what are you seeing in broadband do you think that are you seeing higher churn in that wide subsequent week or is it more of a gross out of the market growth issue. Thanks.
Speaker Change: Oh, the tariffs I mean, I don't think to anybody but is relaxed on that just given what the.
Speaker Change: Devoted purely tires are going.
Speaker Change: Conclude that if I take the midpoint of our 8 billion guide on capital expenditures this year.
Speaker Change: Very small portion of that is exposed fatalities were a U S based company investing in U S fiber as you wish Hendrik everything we would do with labor product is fiber based wireless equipment of course, we're importing but here we are but that's a smaller portion of the total 18 billion. That's why I'm, saying that these are going to handle web handle it before with our suppliers.
Speaker Change: Suppliers.
Speaker Change: And I don't see that we will not have that at this time. So that's why I'm talking about that than what I said on handsets. It still remains you know if we're going to see those type of increases on the handsets that we've heard.
Speaker Change: We are not planning to us absorb those some of them that needs to be passed onto their customers.
Speaker Change: The only way to do it because that's so much money.
Speaker Change: And then on the broadband.
Speaker Change: We continue to see very good performance on broadband the fires.
Speaker Change: I think he is just doing great.
Speaker Change: The churn is extremely low.
Speaker Change: On the fixed wireless access we have good gross ads because it's a very attractive product from <unk> and then what we see is of course, our churn that is higher download files because it's in a product that is in early stages compared to five years that has been around for 25 years. So at least 20 plus 22 tenants.
Speaker Change: Great.
Speaker Change: So what we're seeing now improvements by quarter by quarter. So we're doing that as well, but maybe Sam can add something about what we see on the usage on the step ups, yes, what we're saying is look at the nominal market.
Speaker Change: Broadband it is competitive but what's interesting for us is because of our segmentation approach on FW and files, where in <unk>, we lead with value for money, we lead with convenience and on files, we lead with just incredible reliability and performance that segmentation strategy is working well and we are growing on both sides. That's why we had a very strong quarter.
Speaker Change: 339000 broadband net adds for both consumer and business onshore and <unk> had its best joining a very very long time this quarter and it goes back to the strong NPS customer satisfaction and reliability of the fiber block on <unk>. We are seeing sequential improvement in churn, which is really important for us as the product mix.
Speaker Change: And we get more comfortable and customers get more comfortable with the piece in terms of at what we are seeing good <unk> growth across both <unk> and FW product two things are happening one is they're getting better price realization better premium mix in terms of hiring plans in <unk> and one gig plus plant on file a combination of those two is giving us.
Speaker Change: Good <unk> growth in the face. So overall, it's a really good market for US we are doing extremely well we are taking share every single quarter in the market. We are growing on volume and we are growing on price and that's the perfect thing to build a long term sustainable business in the broadband space.
Speaker Change: Great.
Speaker Change: Thanks, Tim Brad we have time for one last question. Please.
Speaker Change: The final question for today will come from Bryan Kraft of Deutsche Bank. Your line is open Sir.
Bryan Kraft: Good morning, Thank you I had two.
Two if I could first as a follow up question on March and April gross adds strength I think early in <unk> industry volumes were pretty soft.
Bryan Kraft: So just wondering if part of the March and April strength, it's been from a pickup in those industry volumes or if it's more market share take driven by your new offers and then second.
Bryan Kraft: Second question I had relates to your FTE solutions for fixed wireless I was wondering if you could excuse me you talk about the breadth of that launch maybe comment on what some of the markets are that you've launched in all available. The product is in those markets any comment on homes available and then also how.
Bryan Kraft: Is the product performing what kinds of speeds and reliability Youre seeing and then lastly can you talk about what's involved in expanding that services availability from here.
Speaker Change: What are the sort of gating factors to doing that thank you.
Bryan Kraft: On the first question about.
Bryan Kraft: The momentum we're seeing in March and April.
Bryan Kraft: I think what we see that's because our offering so I don't see anything out if the industry is coming back or not I think this is related to us how we perform.
Bryan Kraft: Remember this is a plan that Sam and his team together with our CMO has had for a long time to take the next step with our offering and it resonates with our customers.
Bryan Kraft: Because whatever we have learned from our customers that they want to control a lot of predictability about the offerings that won't this implicit I'll go first.
Bryan Kraft: And they want to value.
Bryan Kraft: And we're hitting on all three of them. So I think that maybe some of it can comment after this but.
Bryan Kraft: I can talk about <unk>, yes, we have.
Bryan Kraft: I understand <unk> solution and more than 50 markets and of course at the beginning you start with.
Bryan Kraft: Second our high.
Bryan Kraft: High rises.
Bryan Kraft: This is of course of sort of the fires work you need to see that the landlords in every house.
Bryan Kraft: Accepting large solution on that and you can sell it into the whole household. So of course, we're working in parallel with a technical solution as well as seeing that we are opening up more and more AMD use and that is going to rollout over the year and that's both for the business side, but I would say mainly for the consumer side. This is opening up we have different type of solution.
Bryan Kraft: On technology bolt on so called <unk>.
Bryan Kraft: I was like performance down to fixed wireless access performance and that's how we're going to work it because ultimately we want to get good choice for our customers for.
Bryan Kraft: Different type of speed tiers, as we did the fixed wireless access et cetera. So this is going to ramp over the year and we just came out.
Speaker Change: So we feel good about the solution on the technology and this is just adding opportunity for us to grow our broadband but may be some but you can add something yes March and April March was mid single digit growth.
Bryan Kraft: And growth side.
Bryan Kraft: April we saw double digit growth largely on the back of our Verizon value guarantee it's resonating really well with customers. It's very easy to explain our sales team is doing an incredible job of explaining it to customers and then lastly is impact on the base.
Bryan Kraft: Because to get the Verizon value guarantee the base has to do absolutely nothing they all get locked in for three years, the price guarantee and they like that and hence driving adeline opportunity for us as well in this space.
Bryan Kraft: We are seeing is good performance from.
Bryan Kraft: On a prepaid side of our business.
Bryan Kraft: That's the base that has been incredibly strong in the first quarter.
Bryan Kraft: We'll likely taking share in prepaid and we are seeing good performance across all our core brands total visible in straight off with probably the brands that had the strongest.
Bryan Kraft: Performance and it's the same playbook that we had in postpaid we are rolling out that same playbook in prepaid, which is execution better distribution disciplined financials, and just getting to better outcome from that and then lastly, the portfolio of brands. We had in a very unique position where we have.
Bryan Kraft: Brand in every segment of the market and more importantly, a leading brand in every segment of the market. So irrespective of how the economy moves and what level of economic uncertainty that is will always have a place and a place for the customer to go through so that gives us comfort in that little bit commentary about the March and April performance, Yeah, maybe before we end.
Bryan Kraft: I mean people usually.
Bryan Kraft: Two questions that were not fast, but I think what we we haven't gotten any questions I'll say normal our prepaid business.
Bryan Kraft: Would say D C. So verizon in especially in execution.
Bryan Kraft: Taking it from where it was the whole team with Samsung has turned this around with branding segmenting the market and basically all our brands are growing at the moment and in prepaid I think that we are going to see that going forward I'm really excited and this was the right decision over ice on the bike Tracfone now.
Bryan Kraft: Can't be in all segments of the market with wireless and that's where we should be as a leader and number one in this market. So.
Speaker Change: Answering your question I didn't get.
Brad: Okay, Hey, Brad Thanks.
Speaker Change: Yes, thanks, Brian Thanks for asking that.
Brad: Brad I think that's all the time, we have for today. Thank you. Thank you.
Brad: This concludes our conference call for today. Thank you for your participation and for using Verizon Conference services you may now disconnect.
Brad: [music].