While the carrier’s consumer business has struggled in recent quarters, Verizon’s business segment, led by SMB growth, helped the company close out its 2022 fiscal year on a strong note.
Verizon is relying on its strengths in its core network capabilities and its growing business and SMB segments as it focuses on its wireless strategy and growing customer base.
The telecom titan’s final quarter of fiscal 2022 (ended Dec. 31) saw gains in business momentum as Verizon lost customers — namely consumers and enterprises — due to macroeconomic pressures throughout the year. fight for
“Network quality is the foundation of our strategy and growth … Although we have more work to do, I am encouraged by the developments and look forward to building momentum in 2023,” said Verizon CEO Hans Westberg (pictured) said during a career earnings call. Call on Tuesday morning.
The carrier is taking measures to run its business more efficiently. In October it announced the creation of the Verizon Global Services (VGS) organization, which the carrier said will organize shared services teams to free up $2 billion to $3 billion in additional capital so Verizon can Xi will invest more in its core network and communications. Services Later in December, Westberg took direct control of Verizon’s consumer unit from Manon Brouillet after she served less than a year to return the unit to growth as it lost AT&T and T-Mobile continues to lose customers.
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Verizon posted total broadband net additions of 416,000 customers during its fiscal 2022 Q4, marking its best broadband performance in more than a decade, which the carrier said was driven by Fios and fixed wireless products. Reflects strong demand.
Westberg said Verizon is growing its fixed wireless access business. The company hopes to have 5 million fixed wireless access subscribers by 2025, he said, especially as more businesses consider private wireless and 5G connectivity options and edge computing.
“We are making appropriate investments to ensure that such services provide significant support for future growth in the years to come, which differentiates us in the industry,” said Vestberg.
Verizon Business reported 455,000 wireless retail postpaid net additions in the third quarter of 2022, including 176,000 phone net additions. The results marked six consecutive quarters in which the business reported more than 150,000 postpaid phone net additions.
Business wireless service revenue was $3.3 billion, an increase of 4.7 percent year over year. Full-year 2022 business wireless service revenue was $12.8 billion, up 3.9 percent from 2021.
Total operating income for the Verizon business, which includes the company’s global enterprise solutions, SMB, public sector and wholesale businesses, was up 1.2 percent with revenue of $7.90 billion in the fourth quarter, compared to $7.81 billion in the year-ago quarter. raised up
Revenue at Global Enterprise Solutions, which has felt the brunt of the financial fallout during the pandemic, continued to decline, falling 4.2 percent to $2.43 billion in the fourth quarter of 2022, compared to $2.53 billion last year.
SMB revenue, on the other hand, continued to increase 5.5 percent in the quarter to $3.28 billion from $3.11 billion in the year-ago period. The public sector grew 0.9 percent to $1.53 billion in the quarter, compared to $1.52 billion a year ago. Wholesale revenue rose 1.7 percent to $662 million in the fourth quarter of 2022 from $651 million a year earlier.
Verizon reported operating income of $35.25 billion for the fourth quarter, up 3.5 percent from $34.07 billion in the fourth quarter of 2021. The carrier’s net income rose 41.4 percent in the quarter to $60.70 billion compared to $4.73 billion in the same period last year. Verizon reported fourth quarter 2022 diluted earnings per share of $1.56, a 40.5 percent increase from $1.11 in Q4 2021.
The Basking Ridge, NJ-based carrier beat Wall Street expectations on revenue of $35.09 billion in the last quarter of the year. However, Verizon’s expectation of adjusted earnings per share of $4.55 to $4.85 for the full year 2023 was lower than Wall Street’s expectation of $4.96, which weighed on the stock price on Tuesday.
For all of 2022, Verizon posted total operating revenue of $136.84 billion, up 2.4 percent from $133.61 billion in 2021. The carrier reported net income of $21.75 billion for the year, down 3.8 percent from $22.62 billion in 2021. Diluted $56 per share. in 2022, down 4.9 percent from $5.32 a year ago.
Verizon stock fell 1.4 percent on Tuesday after releasing its fiscal Q4 2022 earnings and 2023 guidance.