Verizon Communications Inc (VZ, Financial) announced its fourth-quarter and full-year 2024 financial results on January 24, 2025, showcasing robust operational and financial performance. The company added nearly 1 million postpaid mobile and broadband subscribers in Q4, marking its best quarterly result in over a decade. Verizon reported industry-leading wireless service revenue of $20 billion for the quarter, driven by strategic pricing actions and increased demand for its Fios and fixed wireless access offerings. The company also highlighted its strong execution against capital allocation priorities and a positive outlook for 2025.
Positive Highlights
- Added nearly 1 million postpaid mobile and broadband subscribers in Q4 2024.
- Wireless service revenue reached $20 billion in Q4, a 3.1% year-over-year increase.
- Full-year 2024 EPS of $4.14, up from $2.75 in 2023.
- Free cash flow increased to $19.8 billion in 2024 from $18.7 billion in 2023.
- Strong growth in fixed wireless access, with net additions of 373,000 in Q4 2024.
Negative Highlights
- Full-year 2024 operating revenue growth was modest at 0.6% compared to 2023.
- Consumer segment operating income decreased by 1.9% year-over-year in Q4 2024.
- Business segment revenue declined by 1.5% year-over-year in Q4 2024.
- Higher cash taxes and interest expenses impacted cash flow from operations.
Financial Analyst Perspective
Verizon's financial results for 2024 demonstrate a strong recovery and growth trajectory, particularly in its wireless and broadband segments. The significant increase in EPS and free cash flow indicates effective cost management and strategic investments. However, the modest revenue growth and challenges in the business segment highlight areas for improvement. The company's focus on expanding its wireless service revenue and maintaining a strong cash flow position bodes well for future growth.
Market Research Analyst Perspective
Verizon's performance in 2024 reflects its ability to capitalize on the growing demand for reliable connectivity and innovative services. The company's strategic initiatives, such as the pending Frontier acquisition and new satellite partnerships, position it well to capture additional market share. The continued growth in fixed wireless access and Fios offerings underscores Verizon's competitive advantage in the broadband market. However, the company must address the challenges in its business segment to sustain long-term growth.
Frequently Asked Questions
Q: How many postpaid subscribers did Verizon add in Q4 2024?
A: Verizon added nearly 1 million postpaid mobile and broadband subscribers in Q4 2024.
Q: What was Verizon's wireless service revenue in Q4 2024?
A: Verizon's wireless service revenue was $20 billion in Q4 2024.
Q: How did Verizon's EPS change from 2023 to 2024?
A: Verizon's full-year 2024 EPS increased to $4.14 from $2.75 in 2023.
Q: What is Verizon's outlook for 2025?
A: Verizon expects wireless service revenue growth of 2.0% to 2.8%, adjusted EBITDA growth of 2.0% to 3.5%, and free cash flow of $17.5 billion to $18.5 billion in 2025.
Read the original press release here.
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