Latest news with #TonySkiadas
Reuters
21-07-2025
- Business
- Reuters
Verizon boosts annual forecast on demand for premium plans, tax law benefit
July 21 (Reuters) - U.S. wireless carrier Verizon raised the lower end of its annual profit forecast, riding on strong demand for its premium plans and benefits from the Trump administration's new tax law. Shares of the company rose 3.5% on Monday as it also surpassed Wall Street estimates for June-quarter sales and profit, thanks to a 2.2% rise in wireless service revenue. The telecom major has launched price-lock promotions and broadband-wireless bundles to retain users as competition intensifies from AT&T (T.N), opens new tab and T-Mobile (TMUS.O), opens new tab, as well as broadband providers Comcast (CMCSA.O), opens new tab and Charter (CHTR.O), opens new tab. Verizon is also benefiting from favorable U.S. tax reform that allows companies to immediately write off the full cost of certain new equipment, finance chief Tony Skiadas said. He estimated the legislation will boost free cash flow by $1.5 billion to $2 billion this year, prompting Verizon to raise its forecast for the metric to between $19.5 billion and $20.5 billion, up from $17.5 billion to $18.5 billion previously. The company now expects 2025 adjusted profit to grow between 1% and 3%, compared with 0% to 3% previously. Verizon pays the highest cash taxes among major U.S. telecoms, Wells Fargo analysts said earlier this month, adding the tax law will provide a big financial boost to the industry. Shares of AT&T and T-Mobile were both up 2.3%. However, Verizon posted a surprise drop of 9,000 monthly bill-paying wireless subscribers in the second quarter, reeling from user churn after price hikes in January. Analysts polled by FactSet were expecting an increase of 13,000 subscribers. To drive growth, Verizon and its rivals have been bulking up on fiber-optic assets that can tap growing consumer data use. Verizon in May won approval from the U.S. telecom regulator for its $20 billion acquisition of fiber-optic internet provider Frontier, after it agreed to end its diversity programs. The sharper focus on internet services helped it posted 293,000 broadband net additions in the second quarter. Overall, Verizon reported revenue of $34.5 billion, beating estimates of $33.74 billion, according to data compiled by LSEG. Its adjusted earnings per share of $1.22 also beat estimates.
Yahoo
21-07-2025
- Business
- Yahoo
Verizon Surges as Trump Tax Breaks, Fiber Gains, and EPS Beat Shock Wall Street
Verizon (NYSE:VZ) is finally showing signs of life. The telecom giant just posted Q2 revenue of $34.5 billionup 5.2% year over year and ahead of the Street's $33.7 billion estimatewhile also raising full-year guidance on several fronts. Adjusted EPS came in at $1.22, beating the $1.19 consensus. Management pointed to stronger phone upgrade activity, higher monthly rates, and a $1.5$2 billion tailwind from President Donald Trump's newly enacted tax bill. The legislation allows immediate depreciation of capital investments, which could free up additional cash this year. Shares jumped as much as 4.7%, their best day since January. Warning! GuruFocus has detected 3 Warning Signs with VZ. But it wasn't all clean. Verizon lost 51,000 monthly wireless phone subscribers, missing expectations for a net gain. The company blamed that on an earlier pullback in holiday promos, but said it has since pivoted. New three-year price locks, satellite texting, and free device upgrades have been rolled out to entice users. CFO Tony Skiadas also emphasized upcoming AI tools aimed at reducing churn by offering smarter, more personalized customer service. While the competitive pressure remains intense, Verizon seems to be playing a more calculated gameonly countering rival promos when there's a clear ROI. One bright spot: broadband. Verizon added 293,000 new internet customerswell ahead of the 209,000 forecastas it keeps chipping away at cable's market share using bundled fiber and 5G home internet. The firm also just cleared a major regulatory hurdle to acquire Frontier Communications Parent Inc., which could meaningfully expand its fiber reach when the deal closes in early 2026. CEO Hans Vestberg said the company now sees a clear path forward, and investors are watching closely as the U.S. prepares to auction off new wireless spectrum licensesessential for the 6G future. Full-year EBITDA is now expected to grow 2.5%3.5%, with free cash flow landing between $19.5 billion and $20.5 billion. This article first appeared on GuruFocus. Sign in to access your portfolio
Globe and Mail
21-07-2025
- Business
- Globe and Mail
Verizon Reports Record Q2 EBITDA Growth
Verizon Communications (NYSE:VZ) reported Q2 2025 results on July 21, 2025, achieving record quarterly adjusted EBITDA of $12.8 billion (up 4.1% year-over-year), wireless service revenue of $20.9 billion (up 2.2% year-over-year), and free cash flow of $5.2 billion. Management raised full-year 2025 guidance for adjusted EBITDA growth to 2.5%-3.5%, adjusted EPS to 1%-3% growth, and free cash flow guidance to $19.5 billion-$20.5 billion, citing operational outperformance, accelerated infrastructure deployment, and unexpected tax reform benefits. Verizon Raised 2025 Financial Guidance on Surging Cash Flow Year-to-date free cash flow reached $8.8 billion, representing a 3.6% increase versus the prior year period, while operating cash flow climbed to $16.8 billion. The recently approved federal tax reform law is expected to contribute $1.5 billion to $2 billion in additional free cash flow in 2025, significantly improving capital allocation flexibility. "We are raising our 2025 free cash flow guidance to a range of $19.5 billion to $20.5 billion. The increase is driven by an estimated benefit of $1.5 billion to $2 billion from the recently enacted tax legislation, as well as the disciplined operational execution that drove our strong adjusted EBITDA and free cash flow performance in the first half of the year." — Tony Skiadas, Chief Financial Officer Stronger free cash flow and tax benefits in 2025 enable faster deleveraging and position the company for greater flexibility in strategic investments and potential buybacks after the Frontier Communications merger closes. Verizon Has an Accelerated Infrastructure Build and Hit a Fixed Wireless Milestone The company surpassed 5 million fixed wireless access (FWA) subscribers, delivering 278,000 FWA net adds in the quarter and maintaining momentum toward its target of 8 million to 9 million FWA subscribers by 2028. The C-band spectrum deployment is now tracking ahead of schedule, expected to reach 80%-90% of planned sites by year-end, while the fiber build is also exceeding plan, aiming for 650,000 new passings this year. "Our fixed wireless base has surpassed 5 million subscribers, and our fiber build is tracking ahead of its plan. This demonstrates disciplined execution across our entire portfolio." — Hans Vestberg, Chairman and Chief Executive Officer Rapid network expansion broadens the addressable market and drives incremental revenue streams. Verizon Managed Disciplined Customer Strategy Amid Churn and Promotional Pressures Despite persistent consumer postpaid phone churn at 0.9% and increased industry promotional intensity, Verizon reduced consumer postpaid phone net losses to 51,000 versus 109,000 in the prior year period and improved core prepaid net additions by 62,000 year over year. Four consecutive quarters of core prepaid net adds have pushed prepaid ARPU above $32, marking a turning point for prepaid revenue contribution. "We have now reached an inflection point where, after four quarters of volume growth, we expect prepaid to positively contribute to wireless service revenue growth for the remainder of 2025." — Tony Skiadas, Chief Financial Officer The transformation in prepaid economics reduces reliance on postpaid for service revenue growth and reflects effective brand segmentation and execution across diverse customer tiers. Looking Ahead Verizon raised its full-year 2025 guidance for adjusted (non-GAAP) EBITDA growth to 2.5%-3.5%, adjusted EPS growth guidance to 1%-3%, and free cash flow guidance to $19.5-$20.5 billion for 2025, factoring in benefits from tax reform and superior first-half execution. The C-band build-out is on track to cover 80%-90% of planned sites by year-end, and fiber expansion targets 650,000 new passings for the full year. Management confirmed the Frontier acquisition remains on schedule for an early 2026 close. As Verizon nears the closing of the Frontier acquisition, the company will provide an update on its broadband expansion and capital allocation strategy; no additional quantitative guidance for 2026 or post-acquisition integration has been provided at this time. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,048%* — a market-crushing outperformance compared to 180% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of July 21, 2025
Hindustan Times
03-05-2025
- Business
- Hindustan Times
Verizon lost nearly 290,000 customers in just 3 months — But why are so many leaving?
Verizon, the American telecommunications company, revealed its 2025 Q1 data last week and it showed a loss of 289,000 postpaid phone customers in a single quarter, The Street reported. The postpaid phone customers are on Verizon's myPlan plans and are not the same as those subscribed to prepaid plans. The postpaid customers are more important to the wireless carriers as they subscribe for longer periods with a carrier, carry phone payment plans, and are the most reliable and steady. Losing postpaid customers is a risky move, especially if it's about 300,000 customers we're talking about. On the other hand, AT&T reported that they've added 324,000 postpaid customers in Q1 of 2025. Similarly, T-Mobile has reportedly been adding more postpaid customers, which won't change in the coming years, as their prices are considerably affordable and don't bug the customers. The company seems to be aware that the price increases have not helped, as their CFO, Tony Skiadas, said 'Our consumer postpaid phone net losses… reflect the impact of recent pricing actions.' Verizon started the price hikes last year by raising prices on older plans like 5G Get More, 5G Play More, 5G Do More, and 5G Start unlimited plans. However, they followed that by only allowing full autopay discounts to come from bank accounts. Further on, they raised smartwatch plan prices and then put a fresh reduction on autopay discounts for older plans by the end of 2024. This year, they raised the price of insurance for myPlan customers with 5 lines or more. As per their Q1 data, customers are not too fond of these changes to their plans. One would also argue that their speeds are not up to the mark – compared to T-Mobile's network coverage and lightning speeds. On the other hand, Verizon has been gaining prepaid customers – adding 137,000 customers in this quarter itself.
The Independent
13-03-2025
- Business
- The Independent
Verizon CFO warns company about this worrying customer trend
Verizon's chief financial officer has raised concerns about a trend in the telecommunications giant's customers. As the cost of living continues to surge worldwide, Verizon's chief financial officer Tony Skiadas revealed that mobile customers in the U.S. are now opting to hold onto their phones for a longer period. A brand-new phone can cost anywhere between $500 and $1,500, and a recent WalletHub survey showed 63 per cent of Americans would not buy a new cell due to inflation. Aside from the substantial expense, Skiadas said one other reason people were hesitant to upgrade as often is that phones are now 'made better.' 'Customers continue by choice to hang onto their phones for longer periods of time', Skiadas told the Morgan Stanley Technology, Media & Telecom Conference earlier this month. 'The average upgrade cycle for us is just over 40 months, it's like 42 months right now. 'So we're coming off a couple of years now where there have been declines in uptake. As always, we might see seasonality in that.' Nevertheless, Verizon continues to grow its business, earning $27.6 billion in total consumer revenue, a 2.2% increase on the year before, The Street reported. And the CFO told the conference Verizon would 'continue to be disciplined in our approach to retention', despite the shift in consumer habits. When pressed on whether they were experiencing a 'supercycle' - a period of strong economic growth with typically strong demand for commodities - he replied 'no'. The latest data from the Social Security Administration, as of 2023, suggest that the average salary in the U.S. is $66,622. Unlike many cost-of-living expenses, new cellphones cost the same nationwide. Wallethub analyst Chip Lupo said: 'This year, consumers are holding off on upgrading their phones, as 63% of people say they won't buy a new phone due to inflation. When day-to-day living costs are already high, it's hard for many people to justify an expensive phone upgrade. 'In fact, nine in 10 Americans think iPhones are overpriced, so Apple and other phone companies may need to consider lowering prices or offering more substantial feature differences between models to entice customers.'
