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Published: 2024-04-22 07:01:11 ET
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EX-99.1 2 a2024q1exhibit991.htm EX-99.1 Document

Exhibit 99.1
vzlogoa58.jpg

News Release



FOR IMMEDIATE RELEASE
Media contacts:
April 22, 2024Katie Magnotta
201-602-9235    
katie.magnotta@verizon.com

Verizon begins 2024 with strong wireless service revenue growth, solid cash flow and continued momentum in broadband

First quarter performance positions Verizon for
growth and profitability throughout 2024

1Q 2024 Highlights

Consolidated:
•Earnings per share of $1.09, compared with earnings per share of $1.17 in first-quarter 2023; adjusted EPS1, excluding special items, of $1.15, compared with $1.20 in first-quarter 2023.
•Total operating revenue of $33.0 billion, up 0.2 percent from first-quarter 2023.
•Consolidated net income for the first quarter of $4.7 billion, compared to consolidated net income of $5.0 billion in first-quarter 2023, and consolidated adjusted EBITDA1 of $12.1 billion, up from $11.9 billion in first-quarter 2023.

Total Wireless:
•Total wireless service revenue2 of $19.5 billion, a 3.3 percent increase year over year.
•Retail postpaid phone net losses of 68,000, and retail postpaid net additions of 253,000.
•Retail postpaid phone churn of 0.89 percent, and retail postpaid churn of 1.15 percent.

Total Broadband:
•Total broadband net additions of 389,000, including 53,000 Fios Internet net additions.
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•Verizon Business reported 151,000 fixed wireless net additions in first-quarter 2024, their best quarterly result to date.
•11.1 million total broadband subscribers as of the end of first-quarter 2024, including 3.4 million subscribers on fixed wireless. Verizon added more than 3 million broadband subscribers in the last two years.
•Fixed wireless revenue for the first-quarter 2024 was $452 million, up $197 million compared to the prior year period.


NEW YORK - Verizon Communications Inc. (NYSE, Nasdaq: VZ) reported first-quarter 2024 results with strong wireless service revenue, solid cash flow, adjusted EBITDA expansion and fixed wireless subscriber base growth.
“Our strong results show that our team is delivering. Our performance in the first quarter sets us up for a successful 2024,” said Verizon Chairman and CEO Hans Vestberg. “We are on track to meet our financial guidance and to deliver positive Consumer postpaid phone net adds for the year. Our fixed wireless subscriber base is continuing to grow rapidly, and our network remains the best in the industry, by far.”
For first-quarter 2024, Verizon reported earnings per share of $1.09, compared with earnings per share of $1.17 in first-quarter 2023. On an adjusted basis1, excluding special items, EPS was $1.15 in first-quarter 2024, compared with adjusted EPS1 of $1.20 in first-quarter 2023.
First quarter 2024 financial results reflected a pre-tax loss from special items of $327 million. This includes the amortization of intangible assets related to Tracfone and other acquisitions of $221 million, and a $106 million charge associated with a litigation matter related to a legacy contract for the production of telephone directories in Costa Rica by a subsidiary of Verizon.
Consolidated results: Verizon delivers on three key metrics: wireless service revenue, adjusted EBITDA and cash flow
•Total consolidated operating revenue in first-quarter 2024 of $33.0 billion, up 0.2 percent from first-quarter 2023. The increase can be attributed to pricing actions implemented in recent quarters, combined with improved operating results offset by a decrease in wireless equipment revenue due to lower upgrade volumes.
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•Total wireless service revenue2 in first-quarter 2024 was $19.5 billion, up 3.3 percent year over year, driven primarily by pricing actions implemented in recent quarters, higher premium price plan adoption, and growth of our fixed wireless subscriber base.
•Cash flow from operations totaled $7.1 billion in first-quarter 2024, down from $8.3 billion in first-quarter 2023.
•First-quarter 2024 capital expenditures were $4.4 billion, compared to $6.0 billion in first-quarter 2023.
•The company ended first-quarter 2024 with free cash flow1 of $2.7 billion, up from $2.3 billion in first-quarter 2023.
•Consolidated net income for first-quarter 2024 was $4.7 billion, compared to consolidated net income of $5.0 billion in first-quarter 2023, and consolidated adjusted EBITDA1 was $12.1 billion, up from $11.9 billion in first-quarter 2023.
•Verizon's total unsecured debt as of the end of first-quarter 2024 was $128.4 billion, a $0.1 billion decrease compared to fourth-quarter 2023, and $3.6 billion lower year over year. The company's net unsecured debt1 at the end of first-quarter 2024 was $126.0 billion. At the end of first-quarter 2024, Verizon's ratio of unsecured debt to net income (LTM) was 10.9 times and net unsecured debt to consolidated adjusted EBITDA ratio1 was 2.6 times.
Verizon Consumer
•Total Verizon Consumer revenue in first-quarter 2024 was $25.1 billion, an increase of 0.8 percent year over year as gains in service revenue were partially offset by declines in wireless equipment revenue.
•Wireless service revenue in first-quarter 2024 was $16.1 billion, up 3.4 percent year over year, driven by growth in Consumer wireless postpaid average revenue per account (ARPA) from pricing actions and continued FWA adoption.
•Consumer wireless retail postpaid churn was 1.03 percent in first-quarter 2024, and wireless retail postpaid phone churn was 0.83 percent.
•In first-quarter 2024, Consumer reported 158,000 wireless retail postpaid phone net losses, representing an improvement of 105,000 from first-quarter 2023 net losses of 263,000, driven by improvements in both gross adds and churn. This represents Verizon Consumer's best first-quarter performance since 2018.
•Consumer postpaid phone gross additions in first-quarter 2024 increased 5.3 percent year over year, driven by the continued success of myPlan and last year's go to market improvements.
•Consumer reported 216,000 wireless retail prepaid net losses in first-quarter 2024. Wireless retail prepaid net losses excluding SafeLink Wireless, Verizon's brand offering access to government-sponsored connectivity benefits and programs, were 131,000.
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•Consumer reported 203,000 fixed wireless net additions and 49,000 Fios Internet net additions in first-quarter 2024. Consumer Fios revenue was $2.9 billion in first-quarter 2024.
•In first-quarter 2024, Consumer operating income was $7.4 billion, an increase of 3.8 percent year over year, and segment operating income margin was 29.4 percent, an increase from 28.6 percent in first-quarter 2023. Segment EBITDA1 in first-quarter 2024 was $10.7 billion, an increase of 3.6 percent year over year. This improvement can be attributed to wireless service revenue growth and lower upgrade volumes. Segment EBITDA margin1 in first-quarter 2024 was 42.6 percent, an increase from 41.5 percent in first-quarter 2023.
Verizon Business
•Total Verizon Business revenue was $7.4 billion in first-quarter 2024, a decrease of 1.6 percent year over year, as increases in wireless service revenue were more than offset by decreases in wireline revenue and wireless equipment revenue.
•Business wireless service revenue in first-quarter 2024 was $3.4 billion, an increase of 2.7 percent year over year. This was driven by continued strong net additions in the quarter for both mobility and fixed wireless, as well as benefits from pricing actions implemented in recent quarters.
•Business reported 178,000 wireless retail postpaid net additions in first-quarter 2024, including 90,000 postpaid phone net additions.
•Business wireless retail postpaid churn was 1.51 percent in first-quarter 2024, and wireless retail postpaid phone churn was 1.13 percent.
•Business reported 151,000 fixed wireless net additions in first-quarter 2024, representing a 10.2 percent increase from first-quarter 2023. This marked their best quarterly result to date.
•In first-quarter 2024, Verizon Business operating income was $399 million, a decrease of 27.6 percent year over year, and segment operating income margin was 5.4 percent, a decrease from 7.4 percent in first-quarter 2023. Segment EBITDA1 in first-quarter 2024 was $1.5 billion, a decrease of 7.2 percent year over year, driven by wireline revenue declines. Segment EBITDA margin1 in first-quarter 2024 was 20.7 percent, a decrease from 22.0 percent in first-quarter 2023.
Outlook and guidance: Verizon is on track to meet financial guidance
The company does not provide a reconciliation for any of the following adjusted (non-GAAP) forecasts because it cannot, without unreasonable effort, predict the special items that could arise, and the company is unable to address the probable significance of the unavailable information.
For 2024, Verizon continues to expect the following:
•Total wireless service revenue growth2 of 2.0 percent to 3.5 percent.
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•Adjusted EBITDA growth1 of 1.0 percent to 3.0 percent.
•Adjusted EPS1 of $4.50 to $4.70.
•Capital expenditures between $17.0 billion and $17.5 billion.
•Adjusted effective income tax rate1 in the range of 22.5 percent to 24.0 percent.
1 Non-GAAP financial measure. See the accompanying schedules and www.verizon.com/about/investors for reconciliations of non-GAAP financial measures cited in this document to most directly comparable financial measures under generally accepted accounting principles (GAAP).
2 Total wireless service revenue represents the sum of Consumer and Business segments.
Verizon Communications Inc. (NYSE, Nasdaq: VZ) was formed in 2000 and is one of the world’s leading providers of technology and communications services. Headquartered in New York City and with a presence around the world, Verizon generated revenues of $134.0 billion in 2023. The company offers data, video and voice services and solutions on its award-winning networks and platforms, delivering on customers’ demand for mobility, reliable network connectivity, and security.
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VERIZON’S ONLINE MEDIA CENTER: News releases, stories, media contacts and other resources are available at verizon.com/news. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.
Forward-looking statements
In this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “forecasts,” “hopes,” “intends,” “plans,” “targets” or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the “SEC”), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of competition in the markets in which we operate, including the inability to successfully respond to competitive factors such as prices, promotional incentives and evolving consumer preferences; failure to take advantage of, or respond to competitors' use of, developments in technology and address changes in consumer demand; performance issues or delays in the deployment of our 5G network resulting in significant costs or a reduction in the anticipated benefits of the enhancement to our networks; the inability to implement our business strategy; adverse conditions in the U.S. and international economies, including inflation and changing interest rates in the markets in which we operate; cyber attacks impacting our networks or systems and any resulting financial or reputational impact; damage to our infrastructure or disruption of our operations from natural disasters, extreme weather conditions, acts of war, terrorist attacks or other hostile acts and any resulting financial or reputational impact; disruption of our key suppliers’ or vendors' provisioning of products or services, including as a result of geopolitical factors or the potential impacts of global climate change; material adverse changes in labor matters and any resulting financial or operational impact; damage to our reputation or brands; the impact of public health crises on our operations, our employees and the ways in which our customers use our networks and other products and services; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; allegations regarding the release of hazardous materials or pollutants into the environment from our, or our predecessors’, network assets and any related government investigations, regulatory developments, litigation, penalties and other liability, remediation and compliance costs, operational impacts or reputational damage; our high level of indebtedness; significant litigation and any resulting material expenses incurred in defending against lawsuits or paying awards or settlements; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or regulations, or in their interpretation, or challenges to our tax positions, resulting in additional tax expense or liabilities; and changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings.
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Verizon Communications Inc.


Condensed Consolidated Statements of Income
(dollars in millions, except per share amounts)
Unaudited3 Mos. Ended 3/31/243 Mos. Ended 3/31/23%
Change
Operating Revenues
Service revenues and other$27,620 $27,152 1.7
Wireless equipment revenues5,361 5,760 (6.9)
Total Operating Revenues32,981 32,912 0.2
Operating Expenses
Cost of services6,967 7,078 (1.6)
Cost of wireless equipment5,905 6,426 (8.1)
Selling, general and administrative expense8,143 7,506 8.5
Depreciation and amortization expense4,445 4,318 2.9
Total Operating Expenses25,460 25,328 0.5
Operating Income7,521 7,584 (0.8)
Equity in earnings (losses) of unconsolidated businesses(9)9 *
Other income, net198 114 73.7
Interest expense(1,635)(1,207)35.5
Income Before Provision For Income Taxes6,075 6,500 (6.5)
Provision for income taxes(1,353)(1,482)(8.7)
Net Income$4,722 $5,018 (5.9)
Net income attributable to noncontrolling interests$120 $109 10.1
Net income attributable to Verizon4,602 4,909 (6.3)
Net Income$4,722 $5,018 (5.9)
Basic Earnings Per Common Share
Net income attributable to Verizon$1.09 $1.17 (6.8)
Weighted-average shares outstanding (in millions)4,215 4,207 
Diluted Earnings Per Common Share(1)
Net income attributable to Verizon$1.09 $1.17 (6.8)
Weighted-average shares outstanding (in millions)4,219 4,211 
Footnotes:
(1)Diluted Earnings per Common Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represents the only potential dilution.
*Not meaningful

Verizon Communications Inc.


Condensed Consolidated Balance Sheets

(dollars in millions)
Unaudited3/31/2412/31/23$ Change
Assets
Current assets
Cash and cash equivalents$2,365 $2,065 $300 
Accounts receivable26,380 26,102 278 
Less Allowance for credit losses1,061 1,017 44 
Accounts receivable, net25,319 25,085 234 
Inventories2,076 2,057 19 
Prepaid expenses and other8,197 7,607 590 
Total current assets37,957 36,814 1,143 
Property, plant and equipment322,266 320,108 2,158 
Less Accumulated depreciation214,403 211,798 2,605 
Property, plant and equipment, net107,863 108,310 (447)
Investments in unconsolidated businesses941 953 (12)
Wireless licenses156,111 155,667 444 
Goodwill22,842 22,843 (1)
Other intangible assets, net10,835 11,057 (222)
Operating lease right-of-use assets24,351 24,726 (375)
Other assets19,258 19,885 (627)
Total assets$380,158 $380,255 $(97)
Liabilities and Equity
Current liabilities
Debt maturing within one year$15,594 $12,973 $2,621 
Accounts payable and accrued liabilities20,139 23,453 (3,314)
Current operating lease liabilities4,282 4,266 16 
Other current liabilities13,616 12,531 1,085 
Total current liabilities53,631 53,223 408 
Long-term debt136,104 137,701 (1,597)
Employee benefit obligations12,805 13,189 (384)
Deferred income taxes45,980 45,781 199 
Non-current operating lease liabilities19,654 20,002 (348)
Other liabilities16,258 16,560 (302)
Total long-term liabilities230,801 233,233 (2,432)
Equity
Common stock429 429 — 
Additional paid in capital13,571 13,631 (60)
Retained earnings84,714 82,915 1,799 
Accumulated other comprehensive loss(1,199)(1,380)181 
Common stock in treasury, at cost(3,602)(3,821)219 
Deferred compensation – employee stock ownership plans and other421 656 (235)
Noncontrolling interests1,392 1,369 23 
Total equity95,726 93,799 1,927 
Total liabilities and equity$380,158 $380,255 $(97)







Verizon Communications Inc.


Consolidated - Selected Financial and Operating Statistics

(dollars in millions, except per share amounts)
Unaudited3/31/2412/31/23
Total debt$151,698 $150,674 
Unsecured debt$128,408 $128,491 
Net unsecured debt(1)
$126,043 $126,426 
Unsecured debt / Consolidated Net Income (LTM)10.9 x10.6 x
Net unsecured debt / Consolidated Adjusted EBITDA(1)(2)
2.6 x2.6 x
Common shares outstanding end of period (in millions)4,209 4,204 
Total employees (‘000)(3)
104.4 105.4 
Quarterly cash dividends declared per common share$0.6650 $0.6650 
Footnotes: 
(1)Non-GAAP financial measure.
(2)Consolidated Adjusted EBITDA excludes the effects of non-operational items and special items.
(3)Number of employees on a full-time equivalent basis.

Verizon Communications Inc.


Condensed Consolidated Statements of Cash Flows
(dollars in millions)
Unaudited3 Mos. Ended 3/31/243 Mos. Ended 3/31/23$ Change
Cash Flows from Operating Activities
Net Income$4,722 $5,018 $(296)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense4,445 4,318 127 
Employee retirement benefits62 54 8 
Deferred income taxes141 331 (190)
Provision for expected credit losses567 530 37 
Equity in losses of unconsolidated businesses, net of dividends received14 10 4 
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses
(2,531)(774)(1,757)
Other, net(336)(1,198)862 
Net cash provided by operating activities7,084 8,289 (1,205)
Cash Flows from Investing Activities
Capital expenditures (including capitalized software)(4,376)(5,958)1,582 
Acquisitions of wireless licenses(449)(598)149 
Collateral receipts (payments) related to derivative contracts, net(432)367 (799)
Other, net12 79 (67)
Net cash used in investing activities(5,245)(6,110)865 
Cash Flows from Financing Activities
Proceeds from long-term borrowings3,110 504 2,606 
Proceeds from asset-backed long-term borrowings2,510 1,754 756 
Net proceeds from short-term commercial paper2,347 342 2,005 
Repayments of long-term borrowings and finance lease obligations(4,508)(1,325)(3,183)
Repayments of asset-backed long-term borrowings(1,408)(931)(477)
Dividends paid(2,796)(2,744)(52)
Other, net(683)17 (700)
Net cash used in financing activities(1,428)(2,383)955 
Increase (decrease) in cash, cash equivalents and restricted cash411 (204)615 
Cash, cash equivalents and restricted cash, beginning of period3,497 4,111 (614)
Cash, cash equivalents and restricted cash, end of period$3,908 $3,907 $1 


Verizon Communications Inc.


Consumer - Selected Financial Results
(dollars in millions)
Unaudited3 Mos. Ended 3/31/243 Mos. Ended 3/31/23%
Change
Operating Revenues
Service$18,998 $18,456 2.9
Wireless equipment4,490 4,878 (8.0)
Other1,569 1,523 3.0
Total Operating Revenues25,057 24,857 0.8
Operating Expenses
Cost of services4,537 4,432 2.4
Cost of wireless equipment4,750 5,191 (8.5)
Selling, general and administrative expense5,089 4,921 3.4
Depreciation and amortization expense3,309 3,214 3.0
Total Operating Expenses17,685 17,758 (0.4)
Operating Income$7,372 $7,099 3.8
Operating Income Margin29.4 %28.6 %
Segment EBITDA(1)
$10,681 $10,313 3.6
Segment EBITDA Margin(1)
42.6 %41.5 %
Footnotes:
(1) Non-GAAP financial measure.
The segment financial results and metrics above exclude the effects of special items (other than the effects of acquisition-related intangible asset amortization), which the Company’s chief operating decision maker does not consider in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.
 

Verizon Communications Inc.


Consumer - Selected Operating Statistics
Unaudited3/31/243/31/23% Change
Connections (‘000):
Wireless retail postpaid93,905 92,192 1.9
Wireless retail prepaid20,904 22,331 (6.4)
Total wireless retail 114,809 114,523 0.2
Wireless retail prepaid excl. SafeLink
18,717 19,758 (5.3)
Wireless retail postpaid phone74,561 74,611 (0.1)
Fios video 2,883 3,160 (8.8)
Fios internet7,025 6,803 3.3
Fixed wireless access (FWA) broadband2,070 1,140 81.6
Wireline broadband 7,227 7,062 2.3
Total broadband9,297 8,202 13.4
Unaudited3 Mos. Ended 3/31/243 Mos. Ended 3/31/23%
Change
Gross Additions (‘000):
Wireless retail postpaid2,983 3,210 (7.1)
Wireless retail postpaid phone1,710 1,624 5.3
Net Additions Detail (‘000):
Wireless retail postpaid75 321 (76.6)
Wireless retail prepaid(216)(351)38.5
Total wireless retail(141)(30)*
Wireless retail prepaid excl. SafeLink
(131)(277)52.7
Wireless retail postpaid phone(158)(263)39.9
Fios video (68)(74)8.1
Fios internet49 63 (22.2)
FWA broadband203 256 (20.7)
Wireline broadband 36 46 (21.7)
Total broadband 239 302 (20.9)
Churn Rate:
Wireless retail postpaid1.03 %1.05 %
Wireless retail postpaid phone0.83 %0.84 %
Wireless retail prepaid4.26 %4.31 %
Wireless retail prepaid excl. SafeLink
3.61 %3.72 %
Wireless retail1.62 %1.69 %
Revenue Statistics (in millions):
Wireless service revenue$16,134 $15,599 3.4
Fios revenue$2,896 $2,889 0.2

Verizon Communications Inc.


Consumer - Selected Operating Statistics (continued)
Unaudited3 Mos. Ended 3/31/243 Mos. Ended 3/31/23%
Change
Other Wireless Statistics:
Wireless retail postpaid ARPA(1)
$135.75 $130.06 4.4
Wireless retail postpaid upgrade rate
3.1 %4.0 %
Wireless retail postpaid accounts (‘000)(2)
32,876 33,034 (0.5)
Wireless retail postpaid connections per account(2)
2.86 2.79 2.5
Wireless retail prepaid ARPU(3)
$31.17 $30.71 1.5
Wireless retail prepaid ARPU(3) excl. SafeLink
$32.26 $32.15 0.3
Footnotes:
(1) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
(2) Statistics presented as of end of period.
(3) Wireless retail prepaid ARPU - average service revenue per unit from retail prepaid connections.
Where applicable, the operating results reflect certain adjustments, including those related to the 3G network shutdowns, migration activity among different types of devices and plans, customer profile changes, and adjustments in connection with mergers, acquisitions and divestitures.
Certain intersegment transactions with corporate entities have not been eliminated.
* Not meaningful


Verizon Communications Inc.


Business - Selected Financial Results
(dollars in millions)
Unaudited3 Mos. Ended 3/31/243 Mos. Ended 3/31/23%
Change
Operating Revenues
Enterprise and Public Sector$3,587 $3,787 (5.3)
Business Markets and Other3,195 3,104 2.9
Wholesale594 603 (1.5)
Total Operating Revenues7,376 7,494 (1.6)
Operating Expenses
Cost of services2,432 2,582 (5.8)
Cost of wireless equipment1,155 1,234 (6.4)
Selling, general and administrative expense2,262 2,033 11.3
Depreciation and amortization expense1,128 1,094 3.1
Total Operating Expenses6,977 6,943 0.5
Operating Income$399 $551 (27.6)
Operating Income Margin5.4 %7.4 %
Segment EBITDA(1)
$1,527 $1,645 (7.2)
Segment EBITDA Margin(1)
20.7 %22.0 %
Footnotes:
(1) Non-GAAP financial measure.
The segment financial results and metrics above exclude the effects of special items (other than the effects of acquisition-related intangible asset amortization), which the Company’s chief operating decision maker does not consider in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.

Verizon Communications Inc.


Business - Selected Operating Statistics
Unaudited3/31/243/31/23%
Change
Connections (‘000):
Wireless retail postpaid29,947 28,820 3.9
Wireless retail postpaid phone18,306 17,703 3.4
Fios video 59 65 (9.2)
Fios internet 389 377 3.2
FWA broadband1,358 726 87.1
Wireline broadband 458 466 (1.7)
Total broadband1,816 1,192 52.3
Unaudited3 Mos. Ended 3/31/243 Mos. Ended 3/31/23%
Change
Gross Additions (‘000):
Wireless retail postpaid1,531 1,607 (4.7)
Wireless retail postpaid phone705 757 (6.9)
Net Additions Detail (‘000):
Wireless retail postpaid178 312 (42.9)
Wireless retail postpaid phone90 136 (33.8)
Fios video(2)(2)—
Fios internet4 4 —
FWA broadband151 137 10.2
Wireline broadband(1)(2)50.0
Total broadband 150 135 11.1
Churn Rate:
Wireless retail postpaid1.51 %1.50 %
Wireless retail postpaid phone1.13 %1.16 %
Revenue Statistics (in millions):
Wireless service revenue$3,379 $3,290 2.7
Fios revenue$311 $307 1.3
Other Operating Statistics:
Wireless retail postpaid upgrade rate2.5 %2.8 %
Footnotes:
Where applicable, the operating results reflect certain adjustments, including those related to the 3G network shutdowns, migration activity among different types of devices and plans, customer profile changes, and adjustments in connection with mergers, acquisitions and divestitures.
Certain intersegment transactions with corporate entities have not been eliminated.


Verizon Communications Inc.


Supplemental Information - Total Wireless Operating and Financial Statistics

The following supplemental schedule contains certain financial and operating metrics which reflect an aggregation of our Consumer and Business segments’ wireless results.
Unaudited3/31/243/31/23% Change
Connections (‘000)
Retail postpaid123,852 121,012 2.3
Retail prepaid
20,904 22,331 (6.4)
Total retail144,756 143,343 1.0
Retail prepaid excl. SafeLink
18,717 19,758 (5.3)
Retail postpaid phone92,867 92,314 0.6
Unaudited3 Mos. Ended 3/31/243 Mos. Ended 3/31/23%
Change
Net Additions Detail (‘000)
Retail postpaid phone(68)(127)46.5
Retail postpaid253 633 (60.0)
Retail prepaid(216)(351)38.5
Total retail37 282 (86.9)
Retail prepaid excl. SafeLink(131)(277)52.7
Account Statistics
Retail postpaid accounts (‘000)(1)
34,839 34,877 (0.1)
Retail postpaid connections per account(1)
3.55 3.47 2.3
Retail postpaid ARPA(2)
$158.25 $152.27 3.9
Retail prepaid ARPU(3)
$31.17 $30.71 1.5
Retail prepaid ARPU(3) excl. SafeLink
$32.26 $32.15 0.3
Churn Detail
Retail postpaid phone0.89 %0.90 %
Retail postpaid1.15 %1.15 %
Retail prepaid4.26 %4.31 %
Retail prepaid excl. SafeLink
3.61 %3.72 %
Retail1.60 %1.65 %
Retail Postpaid Connection Statistics
Upgrade rate3.0 %3.7 %
Revenue Statistics (in millions)(4)
FWA revenue$452 $255 77.3
Wireless service$19,513 $18,889 3.3
Wireless equipment5,361 5,760 (6.9)
Wireless other1,585 1,515 4.6
Total Wireless$26,459 $26,164 1.1
Footnotes:
(1) Statistics presented as of end of period.
(2) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
(3) Wireless retail prepaid ARPU - average service revenue per unit from retail prepaid connections.
(4) Intersegment transactions between Consumer or Business segment with corporate entities have not been eliminated.
Where applicable, the operating results reflect certain adjustments, including those related to the 3G network shutdowns, migration activity among different types of devices and plans, customer profile changes, and adjustments in connection with mergers, acquisitions and divestitures.

Verizon Communications Inc.
Non-GAAP Reconciliations - Consolidated Verizon
Consolidated EBITDA and Consolidated Adjusted EBITDA
(dollars in millions)
Unaudited3 Mos. Ended 3/31/243 Mos. Ended 12/31/233 Mos. Ended 9/30/233 Mos. Ended 6/30/233 Mos. Ended 3/31/23
Consolidated Net Income (Loss)$4,722 $(2,573)$4,884 $4,766 $5,018 
  Add:
Provision for income taxes1,353 756 1,308 1,346 1,482 
Interest expense1,635 1,599 1,433 1,285 1,207 
Depreciation and amortization expense(1)
4,445 4,516 4,431 4,359 4,318 
Consolidated EBITDA$12,155 $4,298 $12,056 $11,756 $12,025 
  Add/(subtract):
Other (income) expense, net(2)
$(198)$807 $(170)$(210)$(114)
Equity in losses (earnings) of unconsolidated businesses9 11 18 33 (9)
Severance charges— 296 — 237 — 
Legacy legal matter106 — — — — 
Verizon Business Group goodwill impairment— 5,841 — — — 
Asset rationalization— 325 — 155 — 
Legal settlement— 100 — — — 
Business transformation costs— — 176 — — 
Non-strategic business shutdown— — 158 — — 
(83)7,380 182 215 (123)
Consolidated Adjusted EBITDA$12,072 $11,678 $12,238 $11,971 $11,902 
Footnotes:
(1) Includes Amortization of acquisition-related intangible assets and a portion of the Non-strategic business shutdown, where applicable.
(2) Includes Pension and benefits remeasurement adjustments, where applicable.




Verizon Communications Inc.
Consolidated EBITDA and Consolidated Adjusted EBITDA (LTM)
(dollars in millions)
Unaudited12 Mos. Ended 3/31/2412 Mos. Ended 12/31/23
Consolidated Net Income$11,799 $12,095 
  Add:
Provision for income taxes4,763 4,892 
Interest expense5,952 5,524 
Depreciation and amortization expense(1)
17,751 17,624 
Consolidated EBITDA$40,265 $40,135 
  Add/(subtract):
Other expense, net(2)
$229 $313 
Equity in losses of unconsolidated businesses
71 53 
Severance charges533 533 
Legacy legal matter106 — 
Verizon Business Group goodwill impairment5,841 5,841 
Asset rationalization480 480 
Legal settlement100 100 
Business transformation costs176 176 
Non-strategic business shutdown158 158 
7,694 7,654 
Consolidated Adjusted EBITDA$47,959 $47,789 
Footnotes:
(1) Includes Amortization of acquisition-related intangible assets and a portion of the Non-strategic business shutdown, where applicable.
(2) Includes Pension and benefits remeasurement adjustments, where applicable.

Verizon Communications Inc.
Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio
(dollars in millions)
Unaudited3/31/2412/31/233/31/23
Debt maturing within one year$15,594 $12,973 $12,081 
Long-term debt136,104 137,701 140,772 
Total Debt151,698 150,674 152,853 
Less Secured debt23,290 22,183 20,835 
Unsecured Debt128,408 128,491 132,018 
Less Cash and cash equivalents2,365 2,065 2,234 
Net Unsecured Debt
$126,043 $126,426 $129,784 
Consolidated Net Income (LTM)$11,799 $12,095 
Unsecured Debt to Consolidated Net Income Ratio10.9 x10.6 x
Consolidated Adjusted EBITDA (LTM)$47,959 $47,789 
Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio2.6 x2.6 x

Adjusted Earnings per Common Share (Adjusted EPS)
(dollars in millions, except per share amounts)
Unaudited3 Mos. Ended 3/31/243 Mos. Ended 3/31/23
Pre-taxTaxAfter-Tax Pre-taxTaxAfter-Tax 
EPS$1.09 $1.17 
Amortization of acquisition-related intangible assets$221 $(56)$165 0.04 $208 $(53)$155 0.04 
Legacy legal matter106 (27)79 0.02 — — — — 
$327 $(83)$244 $0.06 $208 $(53)$155 $0.04 
Adjusted EPS$1.15 $1.20 
Footnote:
Adjusted EPS may not add due to rounding.
Free Cash Flow
(dollars in millions)
Unaudited3 Mos. Ended 3/31/243 Mos. Ended 3/31/23
Net Cash Provided by Operating Activities$7,084 $8,289 
Capital expenditures (including capitalized software)(4,376)(5,958)
Free Cash Flow$2,708 $2,331 


Verizon Communications Inc.
Non-GAAP Reconciliations - Segments
Segment EBITDA and Segment EBITDA Margin
Consumer
(dollars in millions)
Unaudited3 Mos. Ended 3/31/243 Mos. Ended 3/31/23
Operating Income$7,372 $7,099 
Add Depreciation and amortization expense3,309 3,214 
Segment EBITDA$10,681 $10,313 
Year over year change %3.6 %
Total operating revenues$25,057 $24,857 
Operating Income Margin29.4 %28.6 %
Segment EBITDA Margin42.6 %41.5 %
Business
(dollars in millions)
Unaudited3 Mos. Ended 3/31/243 Mos. Ended 3/31/23
Operating Income$399 $551 
Add Depreciation and amortization expense1,128 1,094 
Segment EBITDA$1,527 $1,645 
Year over year change %(7.2)%
Total operating revenues$7,376 $7,494 
Operating Income Margin5.4 %7.4 %
Segment EBITDA Margin20.7 %22.0 %