BlackRock, Inc., the world’s largest asset manager, has reported a highly successful third quarter for 2024, marked by strong financial growth. The firm’s total assets under management (AUM) surged to a record $11.5 trillion, driven by $221 billion in net inflows during the quarter. This represents a significant year-over-year increase of $2.4 trillion in AUM, showcasing BlackRock's continued leadership in the asset management industry.
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Verizon Reports First Quarter 2024 Financial Results
Verizon Communications Inc. (NYSE, Nasdaq: VZ) has announced its financial results for the first quarter of 2024, revealing a mix of stable earnings and robust revenue growth in key segments. The company reported earnings per share (EPS) of $1.09, a slight decrease from $1.17 in the first quarter of 2023. Adjusted EPS, which excludes special items, stood at $1.15, compared to $1.20 in the previous year.
The total operating revenue reached $33.0 billion, marking a marginal increase of 0.2 percent from the first quarter of 2023. This slight growth in revenue is attributed to pricing adjustments made in recent quarters and improved operational performance, which offset a decline in wireless equipment revenue due to lower upgrade volumes.
Net Income and EBITDA
Verizon's consolidated net income for the first quarter amounted to $4.7 billion, slightly lower than the $5.0 billion recorded in the same period last year. The adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a minor increase to $12.1 billion from $11.9 billion in the first quarter of 2023.
Cash Flow and Capital Expenditures
The company experienced a decrease in cash flow from operations, which totaled $7.1 billion, down from $8.3 billion in the previous year. Capital expenditures were significantly reduced to $4.4 billion in the first quarter of 2024, down from $6.0 billion in the same period of 2023. Despite these changes, Verizon reported an increase in free cash flow to $2.7 billion, up from $2.3 billion in the first quarter of 2023.
Segment-Specific Performance
Wireless Segment
The total wireless service revenue showed a notable increase of 3.3 percent year over year, reaching $19.5 billion. This growth was driven by strategic pricing actions, higher adoption of premium price plans, and the expansion of the fixed wireless subscriber base.
Broadband Segment
Verizon's broadband segment saw substantial growth with total net additions of 389,000, which includes 53,000 Fios Internet net additions. The first quarter also marked a record with 151,000 fixed wireless net additions, the best quarterly result to date. The fixed wireless revenue for the quarter was $452 million, up $197 million compared to the prior year period.
Verizon Consumer
The Consumer segment reported $25.1 billion in revenue, up 0.8 percent year over year. This segment saw a notable increase in wireless service revenue, which reached $16.1 billion, up 3.4 percent from the previous year. The Consumer segment also improved its postpaid phone churn and net losses figures, marking the best first-quarter performance since 2018.
Verizon Business
The Business segment faced a slight revenue decline of 1.6 percent year over year, totaling $7.4 billion. Despite the decrease, the segment witnessed an increase in wireless service revenue and continued strong net additions in mobility and fixed wireless. However, the operating income and EBITDA for the Business segment saw declines due to lower wireline revenues.
Debt and Financial Position
At the end of the first quarter of 2024, Verizon's total unsecured debt stood at $128.4 billion, a marginal decrease from the previous quarter and a $3.6 billion reduction year over year. The company's net unsecured debt to consolidated adjusted EBITDA ratio was 2.6 times, reflecting a stable financial position.
Outlook for 2024
Looking ahead, Verizon remains confident in achieving its financial targets for 2024, including total wireless service revenue growth of 2.0 percent to 3.5 percent and adjusted EBITDA growth of 1.0 percent to 3.0 percent. The company also anticipates adjusted EPS to be between $4.50 and $4.70, with capital expenditures projected between $17.0 billion and $17.5 billion.
Verizon continues to execute its strategy effectively, with a focus on expanding its wireless and broadband services, enhancing network capabilities, and maintaining a strong balance sheet.
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