Verizon Communications reported strong growth in customer acquisitions across both wireless and broadband services for the third quarter of 2024, while maintaining steady overall revenue. Wireless postpaid phone net additions more than doubled year-over-year, reaching 239,000, and total wireless service revenue climbed 2.7% year-over-year to $19.8 billion. Verizon added 349,000 retail postpaid subscribers in total, as well as 389,000 broadband connections, marking its ninth consecutive quarter with over 375,000 broadband net additions. The company also reached its fixed wireless subscriber target 15 months ahead of schedule, hitting nearly 4.2 million subscribers by the end of the quarter.
Broadband performance played a key role in Verizon’s Q3 results, with total broadband connections growing by nearly 16% year-over-year to 11.9 million. Fixed wireless access, a fast-growing segment, contributed 363,000 net additions, and fixed wireless revenue surged to $562 million, representing a $215 million year-over-year increase. These gains in connectivity helped offset a decline in wireless equipment revenue. Despite steady total operating revenue at $33.3 billion, consolidated net income dipped to $3.4 billion from $4.9 billion in the same period last year. This decline stemmed primarily from a $1.7 billion severance charge linked to a voluntary separation program for U.S.-based management employees and other workforce reduction initiatives.
In addition to its customer and broadband growth, Verizon continues to execute its long-term strategic initiatives, including its planned acquisition of Frontier Communications and an agreement with Vertical Bridge to manage thousands of its wireless communications towers. Consolidated adjusted EBITDA rose to $12.5 billion in Q3, up from $12.2 billion a year ago, showing Verizon’s ability to sustain profitability amid strategic shifts. Moving forward, the company remains focused on disciplined growth, bolstered by its new product offerings such as myPlan, myHome, and Verizon Business Complete.
Key Points:
• Wireless service revenue reached $19.8 billion, up 2.7% year-over-year.
• Retail postpaid phone net additions totaled 239,000, doubling year-over-year.
• Total broadband connections grew to 11.9 million, a 16% year-over-year increase.
• Fixed wireless access saw 363,000 net additions, contributing to total broadband net additions of 389,000 for the quarter.
• Fixed wireless revenue grew to $562 million, a year-over-year increase of $215 million.
• Total operating revenue held steady at $33.3 billion, while net income dropped to $3.4 billion due to severance-related charges.
• Consolidated adjusted EBITDA rose to $12.5 billion, up from $12.2 billion in Q3 2023.
• Verizon’s planned acquisition of Frontier Communications is expected to further enhance its growth prospects.
• Verizon entered into an agreement with Vertical Bridge to manage and operate its wireless communications towers.
• Retail postpaid churn was 1.16%, while postpaid phone churn stood at 0.89%.
• Verizon’s broadband base expanded to nearly 4.2 million fixed wireless subscribers by the end of Q3 2024.
• The company saw its ninth consecutive quarter with more than 375,000 broadband net additions.
• Verizon’s total unsecured debt increased by $1.1 billion in Q3, bringing total unsecured debt to $126.4 billion.
• Earnings per share (EPS) dropped to $0.78, down from $1.13 in Q3 2023. Adjusted EPS was $1.19, slightly below last year’s $1.22.
• Cash flow from operations year-to-date totaled $26.5 billion, down from $28.8 billion in the same period last year.
“We continue to deliver strong results in mobility and broadband, and we are on track to meet our full-year 2024 financial guidance,” said Verizon Chairman and CEO Hans Vestberg. “Our new products and strategic initiatives position Verizon for disciplined growth now and into the future.”
