Verizon Communications (NYSE: VZ) is set to double its commitment to 5G, the hot mobile technology of the moment, the company said in its fourth quarter earnings report published on Tuesday.
In the quarter, the telecommunications giant’s revenue fell slightly, from $ 34.78 billion to $ 34.69 billion. The financial result fell sharply, dropping to just under $ 4.72 billion, or $ 1.11 per share, from $ 5.22 billion a year ago. On an adjusted basis, however, that value per share rose to $ 1.21 from $ 1.13 in the last period.
Net additions to Verizon’s wireless postpaid phone subscribers reached approximately 279,000.
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While the company recorded hits on the bottom and top lines (analysts collectively estimated $ 34.43 billion in revenue and adjusted net income per share of $ 1.17), that crucial number of subscriber “additions” fell far short . The forecasts that follow the company predicted 561,000. In comparison, that number was around 791,000 in the fourth quarter of 2019.
There were certainly positive points in the results release. The company recorded 92,000 net additions to its Fios Internet consumer service, almost three times the number for the previous year.
However, Verizon is clearly determined to continue fighting in the mobile segment. She wrote in her earnings report that capital expenditures in 2021 would range from $ 17.5 billion to $ 18.5 billion, and specifically named two wireless growth activities as investment goals: “further expansion of 5G Ultra broadband in new and existing markets [and] densifying the wireless network to manage future traffic demands. “
The company also offered selected financial guidance for 2021. The growth in services and other revenues is expected to be at least 2% year on year; an estimate of total revenue has not been provided. Adjusted earnings per share are estimated at $ 5.00 to $ 5.15.