By Asmita - Jan 26, 2025
Verizon Communications experienced significant growth in wireless subscribers in the fourth quarter of 2024, surpassing expectations with 568,000 new postpaid phone subscribers. The company reported strong financial performance with consolidated net income exceeding analysts' forecasts. Looking towards 2025, Verizon remains cautiously optimistic, projecting moderate growth in wireless service revenue and adjusted earnings per share. CEO Hans Vestberg emphasized strategic initiatives to enhance network capabilities, positioning Verizon to navigate challenges in the competitive telecommunications market.
Verizon logo prominently displayed on a vibrant red background, showcasing brand identity and recognition. via Flickr
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Discover Verizon's Impressive Subscriber Growth: Navigating Telecom Challenges with Strategic Network Expansion in 2025. Verizon Communications has achieved a remarkable milestone in wireless subscriber growth, reporting its most significant postpaid phone subscriber gains in five years during the fourth quarter of 2024. The telecommunications giant added a net total of 568,000 new postpaid phone subscribers, substantially exceeding analysts' expectations of 488,000. Of these additions, 426,000 came from the retail consumer business, marking the highest growth in five years. The company's Second Number program, which allows users to add an additional phone number to eligible devices, played a crucial role in driving these impressive subscriber numbers.
The financial performance revealed a mixed picture for Verizon, with strong subscriber growth contrasting against a relatively conservative profit outlook. The company reported consolidated net income of $5.11 billion, or $1.18 per share, on $35.68 billion in revenue, surpassing analysts' expectations. Verizon's broadband segment also demonstrated robust growth, with 408,000 net additions, including 373,000 from its fixed wireless access service. CEO Hans Vestberg highlighted the company's strategic positioning, emphasizing ongoing improvements through the pending Frontier acquisition, new satellite partnerships, and AI enablement that are expected to enhance and broaden their network capabilities.
Looking ahead to 2025, Verizon has provided a cautious financial forecast that reflects measured expectations for the telecommunications market. The company projects wireless service revenue growth between 2% and 2.8%, with adjusted earnings per share anticipated to remain flat or increase up to 3%. Verizon's financial guidance includes a projected cash flow from operations ranging from $35.0 billion to $37.0 billion, with capital expenditures estimated between $17.5 billion and $18.5 billion. The company aims to achieve its next milestone of 8 to 9 million fixed wireless access subscribers by 2028, currently holding nearly 4.6 million subscribers after adding 373,000 in the fourth quarter of 2024.
The market's response to Verizon's performance was nuanced, with investors showing cautious optimism. Verizon shares experienced minimal movement following the earnings report, reflecting the balanced nature of the company's performance. The telecommunications landscape remains competitive, with rivals AT&T and T-Mobile expected to report their fourth-quarter earnings in the coming weeks. Verizon's strategy of focusing on innovative programs, such as the Second Number feature, and maintaining strong execution during traditionally robust quarters has positioned the company to navigate the challenging telecommunications market. The company's ability to continue driving subscriber growth while managing profitability will be crucial in maintaining its market leadership in the evolving digital connectivity ecosystem.