What impact did service revenue have on Verizon's Q3 2024 performance?

Verizon's Service Revenue had a significant impact on the company's Q3 2024 performance, though it's important to consider multiple factors for a comprehensive understanding:

1. **Service Revenue Growth**: Verizon's wireless service revenue grew by 3.5% year-over-year to $19.8 billion in Q2 2024. This increase reflects strong performance in the wireless service segment, which is a key driver for the company's revenue.
2. **Overall Revenue Impact**: While service revenue is a critical component, it is not the sole determinant of Verizon's total revenue. In Q3 2024, Verizon's total revenue growth rate was 0%. This suggests that while service revenue was growing, other factors, such as equipment sales and non-operating income, may not have contributed to overall revenue growth.

|code|Ticker|Name|Date|Total Revenue YoY|market_code|
|---|---|---|---|---|---|
|VZ|VZ.N|Verizon|2023 Q4|-0.34325267368301604|169|
|VZ|VZ.N|Verizon|2024 Q1|0.20964997569275645|169|
|VZ|VZ.N|Verizon|2024 Q2|0.6135722174499938|169|
|VZ|VZ.N|Verizon|2024 Q3|-0.017998560115190784|169|

3. **Challenges and Non-Revenue Factors**: Verizon faced challenges such as lower wireless equipment revenues due to lower upgrade volumes and a challenging macroeconomic environment. Additionally, the company's total revenue was slightly below analyst projections, which may indicate that service revenue growth was not fully offset by other revenue streams.
4. **Operational Efficiency and Growth Areas**: Despite the challenges, Verizon showed operational efficiency with an increase in adjusted EBITDA, which rose by 2.8%. The company also had strong gains in broadband subscriber growth, with a 17.2% year-over-year increase in total broadband subscribers. This suggests that service revenue growth, though modest, was part of a broader operational success.
5. **Strategic Initiatives**: Verizon's strategic initiatives, such as the voluntary separation program and asset sales, had an impact on the quarter's financials, with the company expecting to book a severance charge of $1.7 billion–$1.9 billion. These non-revenue related expenses can affect the overall financial performance, including the impact of service revenue growth.

In conclusion, while Verizon's service revenue growth was positive in Q3 2024, its impact on the company's total revenue was neutralized by other factors such as lower equipment sales and strategic initiatives. The company's operational efficiency and growth in broadband subscribers indicate a resilient business model despite the challenges.