‘We’re assured in our technique,’ declares CEO Hans Vestberg
Verizon reported stable numbers in cell postpaid buyer additions and powerful broadband additions pushed by Mounted Wi-fi Entry.
The provider famous that in the course of the fourth quarter of 2023, it noticed client postpaid telephone gross additions bounce practically 17% year-on-year; the corporate had beforehand seen weak point on gross additions.
Nonetheless, Verizon noticed a web loss within the fourth quarter of $2.6 billion, in comparison with web revenue of $6.7 billion within the fourth quarter of 2022. That fourth-quarter determine features a numerous changes and impairment costs totaling about $7.8 billion, the corporate mentioned, with one of many smaller quantities being $100 million associated to a litigation settlement.
Complete consolidated working income for the fourth quarter was at $35.1 billion, down simply 0.3% from the identical interval final yr. That slight lower was blamed on decrease wi-fi gear revenues, with whole postpaid gadget upgrades down virtually 18% within the fourth quarter.
FWA continues to see robust development. Verizon reported its fifth consecutive quarter of greater than 400,000 broadband web additions, hitting 413,000, of which 375,000 had been FWA clients and the remaining had been Fios. Verizon mentioned that its FWA buyer base now tops 3 million, and it’s forward of schedule to realize its said aim of getting 4-5 million FWA subscribers by the top of 2025.
Wi-fi service revenues for the full-year 2023 had been up 3.2% year-on-year, to $76.7 billion. Verizon gave steering that it expects to see wi-fi service income development of between 2-3.5% in 2024.
CEO Hans Vestberg mentioned that 2023 was “a yr of change” for Verizon, throughout which its efficiency improved over the course of the yr. “We’re assured and well-positioned to ship a stable 2024,” he mentioned.
Verizon reported retail postpaid web additions of 1.46 million; of that determine, retail postpaid telephone web additions had been 449,000, in comparison with 217,000 within the fourth quarter of 2022. Postpaid telephone gross additions (throughout each Client and Enterprise) had been up 12.1% year-on-year.
Retail postpaid churn was at 1.18% and retail postpaid telephone churn was at 0.93%, up 4 foundation factors. Nonetheless, the corporate acknowledged that it must stabilize its pay as you go enterprise in 2024. Pay as you go web losses for the fourth quarter of 2023 had been 289,000, in comparison with 175,000 in the identical interval in 2022.
Executives on the corporate’s quarterly name with buyers emphasised the variations that they’re seeing in markets the place Verizon has constructed out its C-Band protection, saying that greater than 80% of its FWA gross additions had been in its first 76 C-Band markets and that it sees the next fee of step-ups to premium service plans in these markets. Vestberg mentioned Verizon continues to broaden C-Band turn-up into new markets and can now lean into suburban and rural protection growth, with FWA having a “robust base for continued development”. Requested about capability for extra FWA development, Vestberg mentioned that the community has been constructed to deal with the extra calls for from FWA and that the elevated “fiberization” of Verizon’s community additionally signifies that it may well deal with the transport calls for.
Verizon additionally famous that its capex spend for the full-year 2023 was $18.8 billion, down from its C-Band spending peak in 2022 of $23.2 billion. The provider expects to trim its CapEx spend much more in 2024, to a variety between $17.0 billion and $17.5 billion—according to market expectations on persevering with decline in RAN funding.