Verizon Communications Inc. delivered solid financial results for the third quarter of 2024, demonstrating significant growth in mobility and broadband services.
The company surpassed key milestones, including achieving its fixed wireless subscriber target 15 months ahead of schedule and reporting double-digit growth in total broadband connections.
Key Highlights:
- Wireless Growth: Verizon more than doubled its wireless postpaid phone net additions year over year, with 239,000 retail postpaid phone net additions and 349,000 retail postpaid net additions. Total wireless service revenue reached $19.8 billion, marking a 2.7% increase compared to the same quarter last year. Despite a slight rise in retail postpaid churn to 1.16%, Verizon continues to expand its customer base and improve retention.
- Broadband Expansion: The company added 389,000 broadband subscribers during the quarter, marking its ninth consecutive quarter of more than 375,000 broadband net additions. Fixed wireless connections accounted for 363,000 of these additions, bringing Verizon’s fixed wireless subscriber base to nearly 4.2 million. Total broadband connections increased by 16% year over year, reaching more than 11.9 million.
- Revenue and Profitability: While total operating revenue of $33.3 billion was essentially flat compared to Q3 2023, consolidated adjusted EBITDA rose to $12.5 billion from $12.2 billion in the previous year. However, net income declined to $3.4 billion from $4.9 billion, impacted by $1.7 billion in severance charges related to the company’s voluntary separation program and other headcount reduction initiatives. Earnings per share (EPS) were $0.78, down from $1.13 in Q3 2023, with adjusted EPS of $1.19.
Verizon introduced several new products during the quarter, including myPlan, myHome, and Verizon Business Complete, which have been well-received by customers. Additionally, the company is poised for further growth through its pending acquisition of Frontier Communications and a strategic agreement with Vertical Bridge to lease and manage wireless communication towers.
CEO Hans Vestberg highlighted the company’s operational excellence and its continued focus on mobility and broadband services.
“We are on track to meet our full-year 2024 financial guidance, with wireless service revenue and adjusted EBITDA trending at or above the midpoint of the guided range,” Vestberg stated.
For the remainder of 2024, Verizon maintains a positive outlook, with expectations of wireless service revenue growth between 2.0% and 3.5% and adjusted EBITDA growth of 1.0% to 3.0%. The company also expects to achieve positive consumer postpaid phone net additions for the full year, driven by ongoing customer growth in both mobility and broadband.
In summary, Verizon’s Q3 2024 performance underscores its ability to adapt and thrive in a competitive market, while maintaining financial discipline and preparing for future expansion.
With input from Verizon.
