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Verizon Communications Inc. reported strong fourth-quarter and full-year 2023 results highlighted by total wireless postpaid net additions, fixed wireless net additions and increased wireless service revenue.

"After delivering continuous improvement throughout 2023, we ended the year strong and continue to pursue the right balance of growth and profitability," said Verizon Chairman and CEO Hans Vestberg. "2023 was a year of change. We have the right assets and the best team in place and are well-positioned for growth in 2024."

Consolidated Results

  • The total consolidated operating revenue of Verizon in Q4 2023 is $35.1 billion, down 0.3% YoY. Full-year 2023 consolidated operating revenue was $134 billion, down 2.1% YoY.
  • Total wireless service revenue in Q4 2023 was $19.4 billion, up 3.2% year over year, driven primarily by pricing actions implemented in recent quarters, the larger allocation of administrative and telco recovery fees from other revenue into wireless service revenue, higher premium price plan adoption and growth from fixed wireless access offerings.
  • Full-year 2023 cash flow from operations was $37.5 billion, an increase from $37.1 billion in 2022. This marks a YoY increase of over $300 million, primarily due to working capital improvements. Moreover, the company ended 2023 with free cash flow of $18.7 billion, an increase from $14.1 billion in 2022.
  • Full-year 2023 CAPEX were $18.8 billion, down from $23.1 billion in 2022.

Verizon Business Results

  • Total Verizon Business revenue was $7.6 billion in Q4 2023, a decrease of 3.6% YoY, as lower wireline revenue and lower wireless equipment revenue was partially offset by higher wireless service revenue. For full-year 2023, total Business revenue was $30.1 billion, a 3.1% decrease YoY.
  • Business wireless service revenue in Q4 2023 was $3.4 billion, an increase of 3% YoY. This was driven by the larger allocation of administration and telco recovery fees from other revenue into wireless service revenue, continued strong net additions and the benefit of pricing actions implemented earlier in the year. Full-year 2023 Business wireless service revenue was $13.4 billion, an increase of 4.1% compared to full-year 2022.
  • Business reported 292,000 wireless retail postpaid net additions in Q4 2023, including 131,000 postpaid phone net additions. This was the 10th consecutive quarter that Business reported more than 125,000 postpaid phone net additions. Business continues to grow volumes and expand its relationships with customers strengthening its position as a wireless market share leader.
  • Business reported 144,000 fixed wireless net additions in Q4 2023.
  • In Q4 2023, Verizon Business operating income was $443 million, a decrease of 24.3% YoY, and segment operating income margin was 5.8%, a decrease from 7.4% in Q4 2022. Full-year 2023 segment operating income was $2.1 billion, a decrease of 21.5% YoY, and segment operating income margin was 6.9%, compared with 8.5% in full-year 2022.

2024 Outlook

For 2024, some of Verizon’s expectation are the following:

  • Total wireless service revenue growth of 2% percent to 3.5%;
  • Adjusted EBITDA growth of 1% to 3%; and,
  • CAPEX between $17-17.5 billion.
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