Investing.com | Editor Pollock Mondal
Published Oct 27, 2023 08:28
Verizon Communications Inc (NYSE:VZ). reported strong third-quarter results, surpassing its full-year target for 2022 with a year-to-date free cash flow of $14.6 billion. The company's Q3 results were buoyed by growth in wireless service revenue, EBITDA, and free cash flow. Verizon also raised its 2023 free cash flow guidance to over $18 billion.
Key takeaways from the call:
Verizon's Q3 results were also characterized by strong performance in postpaid phone gross adds and lower postpaid upgrades. The company's Consumer Average Revenue Per Account (ARPA) increased sequentially by 1.2% and YoY by 4.5%. Verizon Business also delivered strong results, with 151,000 phone net adds.
Despite a YoY decrease of 2.6% in consolidated revenue to $33.3 billion, primarily due to lower wireless equipment revenue, total wireless service revenue rose 2.9% YoY to $19.3 billion. Cash flow from operating activities for the quarter was $10.8 billion, bringing the year-to-date total to $28.8 billion.
During the earnings call, Verizon executives expressed confidence in meeting its full-year financial targets and positioning itself for deleveraging opportunities in 2024. They also discussed the company's plan to reduce debt and generate strong free cash flow in 2024.
Verizon's plans for the future also include a continued focus on improving volumes and financials, expansion of fixed wireless access, and working towards improving the prepaid business. The company also plans to integrate AI into its network and customer care.
CEO Hans Vestberg and CFO Tony Skiadas expressed satisfaction with the team's performance and the strategic choices made by the leadership team. Vestberg also highlighted the company's progress in private networks, stating that they are moving from proof-of-concept to commercial deals and have a strong product ecosystem to serve different industries.
Verizon's commitment to social responsibility was demonstrated through its response to the humanitarian crisis in Israel and Palestine. The company pledged a $2 million donation to relief efforts and announced the waiver of international long-distance charges for calls and texts to the region.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.