Verizon's 2024 Wins and 2025 Vision

Ray Marce

Alright, so let’s talk about Verizon’s Q4 results. Wireless service revenue hit twenty billion dollars. That's up three point one percent year-over-year, which isn’t just solid—it’s uh, it’s showing steady, competitive growth in a tricky market.

Mark Dalli

And what I find even more notable, Ray, is their free cash flow—five point four billion dollars for the quarter. Now, this reflects their sustained operational efficiency. And, I'd say, in a hypercompetitive industry like telecom, maintaining those sorts of margins is no small feat. It really comes down to managing the nitty-gritty details behind the scenes.

Ray Marce

Exactly. It’s not always the splashiest number, right, but it’s what gives companies like Verizon breathing room to reinvest and, you know, stay agile for future projects.

Mark Dalli

You’re right. And speaking of their operations, Adjusted EBITDA came in at eleven point nine billion, which was also up a modest, yet respectable, two point one percent. But what resonates with me most is their net debt management. They brought the net unsecured debt to EBITDA ratio down to two point three times.

Ray Marce

Hmm, so you’d say they’re positioning for stability then?

Mark Dalli

Absolutely. It showcases financial discipline, especially considering they had only recently completed the TracFone acquisition. It’s—you know—it's a strong signal for investors that they’re not over-leveraged and can still take on growth initiatives without undue risk.

Ray Marce

Right, and those growth initiatives are where things start getting pretty interesting. I mean, between the spectrum acquisitions, the satellite partnerships, and, uh, that brand refresh they’ve rolled out… it feels like they’ve really gone all-in on prepping for 2025.

Mark Dalli

Absolutely. And, let’s not overlook the significance of these moves. The spectrum additions, for example—they, they reinforce Verizon's leadership in the wireless space. And with the rapid expansion of satellite partnerships, they’re aiming to bridge connectivity gaps, which could open doors to underserved markets. That kind of forward integration is pivotal.

Ray Marce

Yeah, it’s like they’re building an ecosystem that kind of grows in multiple directions, right? Wireless, satellite, branding—it’s all pointing to this strategy of positioning themselves as future-proof. Do you think they’re staying ahead of the curve here, or just playing catch-up?

Mark Dalli

I’d argue they’re staying ahead, Ray, based purely on the data. They’re leveraging these strategic moves as foundational pieces—it's not reactionary. Think of it this way, when you refresh a brand and tie it into tangible technology advancements like satellite or broadband, you’re reminding both the market and, frankly, your customers that you’re, well, still cutting-edge.

Ray Marce

Right, right. And that’s the key, isn’t it? Making sure consumers see the moves as relevant. It’ll be exciting to see how those efforts translate into customer growth, too.

Ray Marce

Alright, so looking at how those strategic moves are tying into growth, nearly nine hundred thousand postpaid phone net adds in just one quarter? That’s, like, a massive signal that those investments in branding and connectivity are really resonating with consumers, yeah?

Mark Dalli

Absolutely. And let’s not forget the broader picture. Their broadband net additions hit one point six million for the year—a lot of that fueled by fixed wireless access momentum. It’s, well, it’s a testament to their ability to cater to evolving consumer needs. This level of performance suggests they're not just competing; they’re dominating certain segments.

Ray Marce

Right, and it feels like, not just dominating, but also kinda building that trust factor with customers. You don’t see those numbers unless people believe you’re delivering value, you know?

Mark Dalli

Precisely. And, if I may, this trust isn’t limited to just their customer base. Eighteen years of consecutive dividend increases—that signals reliability, regardless of market conditions. I mean, investors love stability, right?

Ray Marce

Yeah, consistency like that, especially when paired with growth, makes Verizon a powerhouse for long-term confidence. But what about prepaid? How do you see that playing into their strategy?

Mark Dalli

Great point. The sustained positive net additions in prepaid services underscore resilience under fierce competitive pressures. It shows that even in segments often viewed as price-sensitive, Verizon’s found ways to add value. And this adds another layer to their market leadership story.

Ray Marce

It’s impressive. Balancing prepaid growth alongside premium offerings—that’s not an easy needle to thread in this industry.

Mark Dalli

Exactly, it speaks to their operational efficiency and strategic smarts. They’re catering to diverse segments without sacrificing profitability. And if this performance continues, well, it’s bound to set the stage for even more ambitious moves ahead.

Ray Marce

Yeah, it’s starting to feel like they’re pulling together a really cohesive strategy. Let’s see how it all plays out.

Ray Marce

Building on that cohesive strategy we just discussed, let’s look at where Verizon is heading next year—and quite frankly, beyond that. They’re projecting wireless service revenue growth of two to two point eight percent for 2025, with capital expenditures landing somewhere between seventeen and a half and eighteen and a half billion dollars. That’s a big bet on, well, infrastructure and innovation, wouldn’t you say?

Mark Dalli

Definitely, Ray. This level of investment signals not just confidence in their core business but also an ambitious push towards becoming a holistic technology enabler. And let’s not forget Verizon’s AI strategy in this equation—it’s not just about revenue growth anymore. They’re targeting a forty billion dollar total addressable market for telecom AI delivery by twenty thirty. That’s, quite honestly, a massive undertaking.

Ray Marce

Right, and they’re backing it with their strengths—fiber connectivity, edge computing, and all their collaborations. I mean, Google and Meta standing out as early adopters kind of feels like a—what’s the term?—a proof of concept for the industry.

Mark Dalli

Absolutely. What’s key, though, is how Verizon plans to integrate AI into its operations at scale. Enhancing customer experiences, personalizing solutions, and connecting ecosystems—it’s all about driving efficiencies while creating new, scalable revenue streams. And if we’re talking competitive advantages, their edge compute assets in distributed telco facilities? These could be game changers, allowing them to deliver low-latency AI solutions, which will be crucial as industries increasingly rely on real-time data processing.

Ray Marce

So, they’re kind of positioning themselves as this cornerstone for next-gen connectivity?

Mark Dalli

Exactly. And that connectivity isn’t just limited to consumer devices anymore; it’s expanding into enterprise solutions, private 5G networks, and even partnerships in sectors like healthcare, manufacturing, and logistics. The building blocks they’ve laid—OneFiber, satellite links, edge-to-cloud architectures—are making all of this possible. I’d argue we’re seeing a case of Verizon redefining telecom operational boundaries.

Ray Marce

Yeah, and their capital discipline plays into that story, too. It’s not just spending for spending’s sake, right? Like, all of these investments seem to be part of this broader shift towards future-proofing their business model.

Mark Dalli

Indeed. It’s about foresight and operational precision. And by refining their operational framework, they’re well-positioned to extract long-term value from these ambitious plans. This isn’t just about chasing trends—it’s strategic layering for sustainable growth. But, let’s not forget, the telecom market remains intense. Verizon's leadership hinges on executing these plans flawlessly.

Ray Marce

And that’s the key, Mark. Execution. Honestly, when you add it all up—wireless growth, AI ambitions, broadband expansion—they’re building something big here. But hey, I think that’s all we’ve got time for today. Thanks for diving into the details with me. Always great chatting.

Mark Dalli

Likewise, Ray. And for our listeners, thanks for joining us today. We’ll see you next time.