Verizon's Q1 2025: Unpacking Contradictions on Tariffs, FWA Growth, and Broadband Performance
Wednesday, Apr 23, 2025 5:17 pm ET
2min read None
Financial Performance and Revenue Growth:
- verizon reported strong financial growth in the first quarter of 2025, with wireless service revenue up 2.7%, reaching the high end of their guided range.
- Adjusted EBITDA was $12.6 billion, growing 4%, marking the highest reported result and exceeding their guided range.
- This growth was driven by pricing actions, fixed wireless access subscriber growth, and continued adoption of premium plans.
Segment Performance and Customer Transformation:
- Verizon saw positive improvement in combined postpaid and prepaid phone net adds, with prepaid net adds reaching 137,000, the highest since the TracFone acquisition.
- Broadband contributed significantly with 339,000 net adds, as the company took market share due to its comprehensive offerings and strategic moves.
- The company's consumer transformation efforts, including product enhancements like myPlan, myhome, and AI Connect, resonated with customers, leading to improved customer retention and expansion.
Network Expansion and 5G Deployment:
- Verizon is on track to deploy C-Band to 80% to 90% of its planned sites by year-end, enhancing mobile services and broadening fixed wireless access capabilities.
- Network advancements have led to lower churn rates and increased step-ups in customer plans, contributing positively to financial growth.
- The expansion of 5G advanced features and fixed wireless access solutions is expected to continue driving growth and customer satisfaction.
Consumer Strategy and Marketing Initiatives:
- The launch of the Verizon Value Guarantee, offering a three-year price lock and free phone guarantee, is expected to drive higher gross adds and improve customer retention.
- This strategic move aims to provide predictability and value, aligning with consumer preferences for control and simplicity.
- The integration of value-added services, perks, and premium plans has led to an increase in perks subscriptions, contributing to the company's financial growth.
VZ Total Revenue YoY, Total Revenue
Financial Performance and Revenue Growth:
- verizon reported strong financial growth in the first quarter of 2025, with wireless service revenue up 2.7%, reaching the high end of their guided range.
- Adjusted EBITDA was $12.6 billion, growing 4%, marking the highest reported result and exceeding their guided range.
- This growth was driven by pricing actions, fixed wireless access subscriber growth, and continued adoption of premium plans.
Segment Performance and Customer Transformation:
- Verizon saw positive improvement in combined postpaid and prepaid phone net adds, with prepaid net adds reaching 137,000, the highest since the TracFone acquisition.
- Broadband contributed significantly with 339,000 net adds, as the company took market share due to its comprehensive offerings and strategic moves.
- The company's consumer transformation efforts, including product enhancements like myPlan, myhome, and AI Connect, resonated with customers, leading to improved customer retention and expansion.
Network Expansion and 5G Deployment:
- Verizon is on track to deploy C-Band to 80% to 90% of its planned sites by year-end, enhancing mobile services and broadening fixed wireless access capabilities.
- Network advancements have led to lower churn rates and increased step-ups in customer plans, contributing positively to financial growth.
- The expansion of 5G advanced features and fixed wireless access solutions is expected to continue driving growth and customer satisfaction.
Consumer Strategy and Marketing Initiatives:
- The launch of the Verizon Value Guarantee, offering a three-year price lock and free phone guarantee, is expected to drive higher gross adds and improve customer retention.
- This strategic move aims to provide predictability and value, aligning with consumer preferences for control and simplicity.
- The integration of value-added services, perks, and premium plans has led to an increase in perks subscriptions, contributing to the company's financial growth.
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