Verizon has improved its outlook for full-year results again, after reporting solid figures for Q3. Revenues in the three months to September were up 4.3 percent year-on-year to USD 32.9 billion, led by nearly 4 percent growth in wireless service revenue, and adjusted EBITDA increased 3.3 percent to USD 12.3 billion. Thanks to a one-time gain on the sale of Verizon Media, net profit jumped 45.5 percent to USD 6.6 billion.
Verizon said it now expects to report wireless service revenue growth around 4 percent for the full year, compared to its previous guidance of 3.5-4.0 percent growth. The EPS forecast was increased to USD 5.35-5.40 from an earlier estimate of USD 5.25-5.35.
The capex forecast remains at USD 17.5-18.5 billion, focusing on mmWave 5G expansion and 4G densification, plus another USD 2-3 billion for deploying the new C-band spectrum. In the year to date Verizon spent USD 13.9 billion, including over USD 1 billion on the C-band. The operator ended the quarter with USD 9.9 billion in cash and net debt of USD 131.6 billion, equal to around 2.7x annual adjusted EBITDA.Best consumer wireless phone net additions in 3 years
In the Consumer market, Verizon reported quarterly revenues up 7.3 percent to USD 23.3 billion, while EBITDA rose a slower 2.0 percent to USD 10.5 billion, for a drop in the margin to 45.0 percent. Verizon said it saw good momentum with its 'mix and match' offers, the focus on unlimited mobile plans and 5G adoption, which reached over 25 percent of consumer phones in Q3.
Consumer wireless service revenues were up 4.0 percent year-on-year to USD 14.0 billion. The company reported 423,000 wireless retail postpaid net additions, including 267,000 phone additions, the best Q3 result in three years.
The consumer fixed business Fios added another 92,000 internet subscribers in the quarter, while losing 68,000 video subscribers. Across the group, Verizon said it added 129,000 broadband subscribers in the quarter, including 74,000 on Fios or DSL and 55,000 using fixed-wireless services. In total, fixed wireless is available to 11.6 million households, and 16.4 million can use the Fios fibre services.
Business results still lower
Verizon Business revenues fell 0.8 percent to USD 7.7 billion in Q3, on the continued decline in legacy wireline services. EBITDA for the business segment was down 2.4 percent to USD 1.9 billion, for a margin of 24.8 percent.
Business wireless service revenues reached USD 3.1 billion, a 3.6 percent increase year over year, and the company added 276,000 retail postpaid lines in the three months, including 162,000 phone net additions. Verizon said it saw strong SMB momentum, the best quarter year-to-date for wireless subscriber growth in Global Enterprise and an increase in activity with enterprises in the private wireless and MEC space.
