Verizon Maintains Network Build Outlook on Strong Q1 Financials
Verizon (NYSE: VZ) maintained its full-year financial performance guidance based on its 1Q25 results presented yesterday. The company turned in strong financial metrics with wireless service revenue growing three percent year-over-year to $20.8 billion, which was at the high end of the company’s guidance range.
Adjusted EBITDA grew four percent YoY to $12.6 billion while free cash flow reached $3.6 billion, up over $900 million from 1Q24. Aggregate wireless and wireline capital expenditure was $4.4 billion. The company maintained its full-year capex guidance range of $17.5 billion to $18.5 billion. Inside Towers Intelligence estimates that VZ’s wireless capex for the quarter was $2.5 billion, down five percent YoY in a typically slow start to the new calendar year.
Total retail postpaid and prepaid subscribers for the quarter reached 146 million, up one percent YoY. Within that total, however, the company experienced net losses of 159,000 postpaid subscribers and 289,000 postpaid phones, even as prepaid subscribers increased by 137,000. The company attributed revenue gains, even with the net losses, to consumers and businesses taking higher value data usage plans.
The company continues to expand and upgrade its network. In Mobility, Verizon says it is deploying C-band in suburban markets and is on track to deploy C-band in 80 percent to 90 percent of its planned sites by year-end along with rolling out 5G advanced features. Verizon spent $45.5 billion in FCC Auction 107 for 3,511 C-band licenses in all 406 PEAs across the country, Inside Towers reported. C-band capex is incorporated into the company’s business-as-usual capex and not broken out as a separate expenditure item.
Verizon says its FiOS fiber-to-the-premise expansion is ahead of its plan year-to-date to deliver 650,000 incremental passings in 2025. The company plans to cover 35 to 40 million premises, not counting additional passings that are part of the pending Fronter Communications (NASDAQ: FYBR) acquisition.
On fixed wireless access, a new multi-dwelling unit solution is expected to gradually ramp over time, along with continued expansion of homes and businesses covered with the ongoing C-band deployment. The company had 308,000 FWA net adds to reach 4.8 million subscribers at the end of the quarter as it strives for 8 to 9 million by 2028.
With a combination of its fixed wireless access and fiber assets, Verizon plans to offer broadband connections to more than 100 million premises over the time.
“This is a solid start to the year, and one we expect to build on as we expand our C-band and FiOS availability,” comments Tony Skiadas, Verizon CFO.
By John Celentano, Inside Towers Business Editor
