Verizon Q4 Earnings: Revenue Beat, 1 Million Mobile And Broadband Subscriber Adds, Business Segment Margin Expands

Verizon Communications Inc VZ stock reported fiscal fourth-quarter results Friday. 

Its revenue growth was 1.6% year-over-year reaching $35.70 billion, topping the analyst consensus estimate of $35.32 billion. Adjusted EPS of $1.10 was in line with the analyst consensus estimate.

Total wireless service revenue was $20.0 billion, up 3.1% year over year, driven by pricing actions and growth from fixed wireless connections.

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Verizon added ~1 million postpaid mobile and broadband subscribers in the quarter, marking its best quarterly result in more than a decade. Postpaid phone net additions were 568,000 versus 449,000 Y/Y. Verizon Business’ retail postpaid net additions were 283,000.

The quarter saw 408,000 total broadband net additions, compared to 350,000 Y/Y. The company ended the quarter with over 12.3 million broadband subscribers, up 15.0% year over year.

At the end of the quarter of 2024, the company had ~4.6 million fixed wireless subscribers. Total fixed wireless access net additions reached 373,000 in the quarter.

It is well-positioned to achieve the next milestone of 8 to 9 million fixed wireless access subscribers by 2028.

Total Verizon Business revenues were $7.5 billion, down 1.5% Y/Y. Total Verizon Consumer revenue rose by 2.2% Y/Y to $27.6 billion. Consumer wireless retail postpaid churn was 1.12%, and wireless retail postpaid phone churn was 0.89%. 

Verizon Consumer clocked wireless retail postpaid phone net additions of 426,000, up 34% Y/Y. Verizon Consumer had fixed wireless net additions of 216,000.

Verizon’s net income stood at $5.1 billion versus $(2.6) billion a year ago.

The consumer segment EBITDA margin declined by 100 bps to 37.5%, while the business segment EBITDA margin grew by 100 bps to 22.1%. 

Company-level adjusted EBITDA of $11.9 billion, up from $11.7 billion Y/Y driven by wireless service revenue growth, partially offset by the impact of higher upgrade volumes and continued declines in Business wireline revenue.

Verizon’s 2024 free cash flow was $19.8 billion, up from $18.7 billion Y/Y.

FY25 Outlook: Verizon expects a 2.0%–2.8% growth in wireless service revenue. It projected an adjusted EPS of $4.59 – $4.73 versus consensus of $4.71.

Verizon expects $17.5 billion to $18.5 billion in 2025 free cash flow, $35 billion to $37 billion in operating cash flow and $17.5 billion to $18.5 billion in capital expenditure.

Price action: VZ stock is up 0.05% at $39.20 premarket at the last check on Friday.

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