Verizon Plans Further Reduction in Network Spending for 2024

Verizon Communications, the premier telecommunications operator in the United States, has disclosed its financial performance for the year 2023 and outlined its capital expenditure goals for the upcoming year.
Verizon FWAVerizon has revealed that its capital expenditures for 2024 are targeted to be between $17.0 billion and $17.5 billion. This follows a substantial reduction in its capital expenditures from $23.1 billion in 2022 to $18.8 billion in 2023, indicating a strategic shift in the company’s investment strategy.

Verizon highlighted its positive performance in markets where C-Band technology has been deployed. The fourth-quarter growth in Consumer postpaid phone gross additions in the first 76 C-Band markets exceeded 8 percentage points compared to non C-Band markets. Additionally, postpaid phone churn remained lower in C-Band markets. Verizon does not reveal the number of 5G customers on its mobile network.

Verizon’s Chairman and CEO, Hans Vestberg, expressed satisfaction with the company’s progress, stating, “After delivering continuous improvement throughout 2023, we ended the year strong and continue to pursue the right balance of growth and profitability. We have the right assets and the best team in place and are well-positioned for growth in 2024.”

In the fourth quarter of 2023, Verizon reported operating revenue of $35.1 billion, a marginal decrease of 0.3 percent from the same period in 2022. The decline was attributed to a 2.0 percent decrease in wireless equipment revenue, driven by a 17.9 percent reduction in total postpaid upgrades. Full-year 2023 consolidated operating revenue was $134.0 billion, down 2.1 percent year over year.

Verizon’s wireless service revenue in the fourth quarter of 2023 saw increase of 3.2 percent, amounting to $19.4 billion. This growth was attributed to pricing actions implemented in recent quarters, a larger allocation of administrative and telco recovery fees, higher premium price plan adoption, and increased contributions from fixed wireless access offerings.

Verizon reported a net loss of $2.6 billion for the fourth quarter of 2023, compared to a consolidated net income of $6.7 billion in the same period in 2022. Consolidated adjusted EBITDA remained steady at $11.7 billion, in line with the results from 2022.

Consumer revenue in the fourth quarter of 2023 reached $27.0 billion, reflecting a 0.7 percent increase year over year. The growth in service revenue was offset by declines in wireless equipment revenue and other revenue. Full-year 2023 total Consumer revenue was $101.6 billion, a decrease of 1.8 percent from the previous year.

For the same period, Business revenue was $7.6 billion, marking a 3.6 percent decrease year over year. Lower wireline revenue and reduced wireless equipment revenue were partially offset by higher wireless service revenue. Full-year 2023 total Business revenue amounted to $30.1 billion, a 3.1 percent decrease compared to the previous year.

Verizon Business reported 292,000 wireless retail postpaid net additions in the fourth quarter of 2023, including 131,000 postpaid phone net additions. The company maintained its position as a wireless market share leader, reporting the 10th consecutive quarter with more than 125,000 postpaid phone net additions. Business wireless retail postpaid churn was 1.48 percent in the fourth quarter of 2023, with wireless retail postpaid phone churn at 1.12 percent. Business also reported 144,000 fixed wireless net additions in the same period.