Verizon Communications’ third-quarter results highlights the company's performance in the period impacted by continued wireless service revenue growth, total broadband net additions and improved profitability.
"We continued to make steady progress in the third quarter with a clear focus on growing wireless service revenue, delivering healthy consolidated adjusted EBITDA and increasing free cash flow," said Verizon Chairman and CEO Hans Vestberg. "Our financial discipline, combined with our healthy balance sheet, enabled us to increase our dividend for the 17th consecutive year, which is the longest current streak of dividend increases in the US telecom industry."
3Q 2023 Highlights
- Total wireless service revenue of $19.3 billion in Q3 2023 increased by 2.9% YoY and 1.1% from Q2 2023. This increase was driven by targeted pricing actions implemented in recent quarters, the larger allocation of administrative and telco recovery fees from other revenue into wireless service revenue, and growth from fixed wireless offerings.
- Total operating revenue of $33.3 billion decreased by 2.6% from Q3 2022 due to reduced wireless equipment revenue and lower postpaid upgrade activity.
- Year-to-date cash flow from operations of $28.8 billion increased from $28.2 billion in 2022.
- Free cash flow year-to-date was $14.6 billion increased from $12.4 billion in 2022.
- Net income of $4.9 billion decreased by 2.8% from Q3 2022.
Verizon Business Results:
- Verizon Business’ wireless service revenue was $3.4 billion, an increase of 2.9% YoY. This growth was driven by continued strong net additions and pricing actions implemented in recent quarters.
- Verizon Business reported 330,000 wireless retail postpaid net additions in Q3 2023, including 151,000 postpaid phone net additions. This was the ninth consecutive quarter that it reported more than 125,000 postpaid phone net additions. Verizon Business continues to grow volumes and expand its relationships with customers strengthening its position as a wireless market share leader.
- Verizon Business reported 133,000 fixed wireless net additions in third-quarter 2023.
- In Q3 2023, Verizon Business’ operating income was $539 million, a decrease of 22.8% YoY, and segment operating income margin was 7.2%, a decrease from 8.9% in Q3 2022.
- Total broadband net additions of 434,000, represent the fourth consecutive quarter that Verizon reported more than 400,000 broadband net additions.
- Total broadband net additions included 384,000 fixed wireless net additions, an increase of 42,000 fixed wireless net additions from Q3 2022. Verizon now has approximately 10.3 million total broadband subscribers, including nearly 2.7 million subscribers on its fixed wireless service.
- 72,000 Fios Internet net additions increased from 61,000 Fios Internet net additions in Q3 2022.
- Postpaid phone net additions of 100,000 was recorded, along with retail postpaid net additions of 581,000.
- Total retail postpaid churn was 1.15%, and retail postpaid phone churn was 0.90%.