Consolidated numbers
$Verizon(VZ)$ Earnings per Share (EPS) were at $1.19 compared to the $(0.64) loss in 4Q23. It is important to note that there was a 5.8 billion goodwill impairment charge that impacted their numbers in 4Q23.
Quarter over quarter (QoQ), their EPS increased by 52% from $0.78, primarily driven by higher earnings in wireless equipment revenues due to increased upgrade volumes, along with an increase in their Other Income category (by 1006% to $797 million, yes you read that right) resulting from a revaluation of their pension and OPEB liabilities, making their future obligations less costly now.
Verizon reported an EBITDA of $12.7 billion, an increase of 21% QoQ, due to Wireless service revenue growth and a higher provision for income taxes from $891 million to $1.4 billion.
Business Segment
Compared to 4Q23, the segment's operating income had an impressive growth of 34% at $594 million, marking the highest quarterly figure in both 2023 and 2024.
The segment EBITDA had another modest growth of 2.98% at $1.65 billion compared to 3Q23, and a 3.11% growth QoQ. This was also the highest figure in the last two years.
As mentioned in my 3Q24 report, the segment has been on a downward trend (decrease of 40% so far) in the past four years, but the increases quarter over quarter seen in 2024 could indicate an upward trend. Should this trend continue, we may see Verizon report positive yearly growth for its business segment.
Consumer Segment
The segment’s operating income decreased by 1.86% compared to 4Q23 at $6.9 billion. Quarter over quarter, there was a much more significant drop of 9.20%. The decline in income was mainly due to the higher cost of wireless equipment (up 49%), even though revenues from wireless equipment increased by 44%.
The consumer EBITDA slightly decreased by 0.35% at $10.3 billion compared to 4Q23, but QoQ it decreased by 6.10%.
It is important to note that Verizon’s fourth-quarter numbers have typically been the lowest figures of the year for the past four years.
Their net broadband additions dropped by 7% at 251k compared to 4Q23. It is important to remember this reduction was expected since they shut down some of their plan programs in 2023. The quarter-over-quarter numbers rose by 6.8%, following a previous increase of 1.73%, primarily driven by sales of plan perks/add-on services and growth in fixed wireless access.
Regarding Verizon’s ARPA (average service revenue per account), there was a slight increase of 0.5% quarter over quarter at $139.77, the annual increase was 4.2%. On average, the churn rate decreased by 3.08%, primarily driven by lower churn levels in their wireless retail prepaid service, indicating higher customer retention. The average churn rate across all services is sitting at 2.29%.
Highlights of 4Q24
AI Connect
Verizon has announced AI Connect, an integrated suite of solutions designed to support and scale AI workloads across various industries. The company has partnered with Vultr (GPU-as-a-Service), NVIDIA, Google Cloud, and Meta to enhance this offering. This initiative positions Verizon as a key player in the AI ecosystem.
Satellite solutions
Verizon is continuing to collaborate with the satellite partners AST SpaceMobile and Skylo to expand its network coverage, aiming to provide 100% geographical coverage of the continental U.S.
Private Networks
The US Air Force selected Verizon to install 5G and 4G LTE network enhancements at 35 Air Force installations across the United States, deploying C-Band carrier additions, new macro builds, and small cells.
Revenue Reclassification
Management announced a reclassification of over $2.9 billion in annual recurring revenue from "Other Revenue" to "Wireless Service Revenue," effective from the first quarter of 2025. This adjustment refers to revenues generated from device protection and insurance-related plans, and can positively influence growth rates and key performance indicators.
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