Verizon Communications reported first-quarter 2024 results with strong wireless service revenue, solid cash flow, adjusted EBITDA expansion and fixed wireless subscriber base growth.
“Our strong results show that our team is delivering. Our performance in the first quarter sets us up for a successful 2024,” said Verizon Chairman and CEO Hans Vestberg. “We are on track to meet our financial guidance and to deliver positive Consumer postpaid phone net adds for the year. Our fixed wireless subscriber base is continuing to grow rapidly, and our network remains the best in the industry, by far.”
Positive Consolidated Results
According to the company’s statement, Verizon delivers on three key metrics during Q1 2024: wireless service revenue, adjusted EBITDA and cash flow.
The consolidated net income for first-quarter 2024 slightly decreased to USD 4.7 billion, compared to the USD 5 billion in first-quarter 2023 while the total consolidated operating revenue in Q1 2024 of USD 33 billion, up 0.2% from Q1 2023. The increase can be attributed to pricing actions implemented in recent quarters, combined with improved operating results offset by a decrease in wireless equipment revenue due to lower upgrade volumes.
Moreover, Verizon’s total wireless service revenue in Q1 2024 was USD 19.5 billion, up 3.3% YoY, driven primarily by pricing actions implemented in recent quarters, higher premium price plan adoption, and growth of our fixed wireless subscriber base.
The cash flow from operations also totaled USD 7.1 billion in during the first quarter of the year, down from USD 8.3 billion of the previous year. Accordingly, the first-quarter 2024 capital expenditures were at USD 4.4 billion, compared to USD 6 billion in Q1 2023.
Verizon also ended first-quarter 2024 with free cash flow of USD 2.7 billion, up from USD 2.3 billion of last year’s record. The adjusted EBITDA was USD 12.1 billion, up from USD 11.9 billion in first-quarter 2023.
For Q1 2024, Verizon reported earnings per share of USD 1.09, compared with earnings per share of USD 1.17 in Q1 2023.
Verizon Business
The Business wireless service revenue in first-quarter 2024 was USD 3.4 billion, an increase of 2.7% year over year. This was driven by continued strong net additions in the quarter for both mobility and fixed wireless, as well as benefits from pricing actions implemented in recent quarters.
Notably, Verizon Business reported 151,000 fixed wireless net additions in first-quarter 2024, representing a 10.2% increase from first-quarter 2023. This marked their best quarterly result to date.
Additionally, Verizon Business reported 178,000 wireless retail postpaid net additions in first-quarter 2024, including 90,000 postpaid phone net additions.
The Business wireless retail postpaid churn was 1.51% in first-quarter 2024, while the wireless retail postpaid phone churn was 1.13%.
Despite this, the Q1 2024 operating income of Verizon Business was USD 399 million, a decrease of 27.6% year over year, and segment operating income margin was 5.4%, a decrease from 7.4% in first-quarter 2023.
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