Verizon Communications Inc.

Financial Performance Analysis

• EBITDA Growth:

  • In Q4 2024, Verizon grew EBITDA by approximately $1 billion compared to the previous year.
  • The guidance for 2025 expects EBITDA growth in the range of 2% to 3.5%, implying about $1.3 billion of growth at the midpoint, highlighting a forecasted acceleration in the growth rate.

• Subscriber Growth:

  • The company added 2.5 million subscribers in 2024 across broadband and mobility.
  • Notably, the fourth quarter saw the highest net additions in over a decade, with nearly 1 million postpaid subscribers added.

• Wireline and Mobility Metrics:

  • Positive trends were noted, with 3.1% growth in wireless service revenue in Q4.
  • Adjusted EBITDA for the same quarter saw a growth of 2.1%.

• Free Cash Flow:

  • The company generated a robust free cash flow of $19.8 billion for the full year 2024.
  • For 2025, they project free cash flow to be in the range of $17.5 billion to $18.5 billion, maintaining strong cash generation capabilities despite various pressures.

• Market Share and Expansion:

  • Verizon continues to gain market share in broadband, achieving 408,000 net adds in Q4, primarily through its fixed wireless access service.
  • By the end of 2024, it had nearly 12.3 million broadband subscribers, with significant growth expected in the fixed wireless segment.

• Financial Transformation and Cost Management:

  • The company has been focused on structural transformation, including strategic cost management practices to enhance operational efficiency.
  • The workforce reduction through voluntary separation programs is expected to yield full-year benefits starting in 2025.

Key Financial Metrics and Guidance for 2025

• Operational Improvements:
  • Continued focus on enhancing customer economics and network strength is expected to sustain positive performance.
  • The company anticipates that promo amortization impacts will peak in 2025, but the underlying customer economics remain healthy.

In conclusion, Verizon Communications Inc. displays strong financial momentum, with growth across key metrics including EBITDA, free cash flow, and subscriber additions. The company is adeptly managing costs while strategically transforming its operations to bolster future growth.