Verizon CEO Says Turnaround Strategy Has Led to Big Improvements — Market Talk

What happened

A year into his role, Verizon CEO Dan Schulman said his strategy is working and delivering results sooner than expected. He said the company is stronger operationally, financially and competitively, with more mobility and broadband subscribers, better retention and lower acquisition and retention costs.

Confirmed

Global impact / market context

Lower costs tied to winning and keeping customers can let Verizon keep more profit from each sale, which means more cash available for debt, dividends or network investment. Adding subscribers also grows recurring service revenue, the steady income phone and internet bills provide.

Analyst inference

Verizon's turnaround is being judged on subscriber growth and cost control rather than one quarter alone. If those gains hold, investors may treat the stock as a steadier business with improving profit per sale, though rivals offering similar services can pressure pricing.

Analyst inference

What to watch

1. Verizon added mobility and broadband subscribers and improved retention over the past year, according to CEO Dan Schulman, who called the third quarter another proof point of a structurally different company. Confirmed
2. Watch whether Verizon keeps lowering the costs of acquiring and retaining customers, since savings there would lift profit per sale and free cash for network capital spending. Proposed
3. Track subscriber growth and retention in coming quarters; if growth slows while costs fall, revenue may weaken, while steady growth with lower costs would support the turnaround case. Analyst inference

Evidence

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