Carrier breaks out FWA revenues
Verizon shared its Fixed Wireless Access revenues for the first time, reporting that during the first quarter its FWA revenue was $452 million—an increase of $197 million compared to the same time last year.
Chairman and CEO Hans Vestberg said that the company’s FWA subscriber base “is continuing to grow rapidly.” Verizon is also currently testing the use of millimeter-wave spectrum to use FWA to serve multi-dwelling units, he told investors on the quarterly call. Verizon Business also reported that it saw its best FWA quarterly adds to date during Q1 2024, at 151,000.
Verizon ended the first quarter with 11.1 million total broadband subscribers, of which 3.4 million were FWA customers.
“Our performance in the first quarter sets us up for a successful 2024,” said Vestberg. He added during the call: “We have the right strategy, and we’re working to keep this progress up quarter-by-quarter.”
Consolidated net income for the company’s first quarter was at $4.7 billion, down slightly from $5 billion in the year-ago quarter. The quarter included $327 in special-item losses, Verizon noted, including amortization of intangible assets related to Tracfone and other acquisitios of $221 million, plus a $106 million charge from litigation involving a legacy contract for telephone directors held by Verizon subsidiary in Costa Rica.
Wireless service revenues were up 3.3% to $19.5 billion. Despite gaining postpaid net additions of 253,000, however, Verizon recorded retail postpaid phone net losses of 68,000. Its consumer segment saw 158,000 wireless retail postpaid phone net losses (which company exec pointed out was 100,000 less than the year-ago period), with its business segment reporting 178,000 wireless retail postpaid net additions in the first quarter, including 90,000 postpaid phone net additions.
In Verizon’s Consumer segment, revenue was up 0.8% year-on-year, with wireless service revenue up 3.4% to $16.1 billion. Verizon credited the increase in wireless service revenue to postpaid pricing changes as well as to FWA adoption. For the Business segment, revenues increased 2.7% from the same time last year, due to both pricing changes and “strong net additions” in the quarter for mobility and FWA, the company said.
Verizon reiterated that it is on-track to meet its guidance for 2024, including positive consumer postpaid net additions for the year, total wireless service revenue growth between 2-3.5% and capital expenditures between $17.0-$17.5 billion.
