Verizon (VZ) sees strong wireless broadband demand in Q1, profits fall

2 min read | April 22, 2022 12:52 PM EDT | By Team Kalkine Media

Image source: © Alexeynovikov | Megapixl.com

Solid demand for high-speed internet

The VZ growth trajectory is augmented by a huge demand for high-speed internet. High-speed internet is indispensable in facilitating the hybrid work culture and remote educational requirements.

However, Verizon’s reported net income of US$4.7 billion is a 12.4% decrease from the same quarter in 2021. Its adjusted EBITDA of US$12.0 billion is down by 1.1% percent year over year.

Analysts say that the demand for high-speed internet will begin to wane once the pandemic slackens.

The company managed to scoop up subscribers through plans bundled with extra services. The steady growth in demand for fixed wireless access (FWA), or home broadband delivered through a 5G network, in recent quarters also contributed to its overall revenue.

Verizon renewed its full-year guidance to assume wireless service revenue growth at the lower end of the previously guided range of 9% to 10%.

Bottom line:

According to Verizon Chairman and CEO Hans Vestberg, the company’s operational performance in quarter one further positions itself for long-term growth.

The results raise the competitive standing of the company in mobility, nationwide broadband, the value market, and network business solutions and applications.

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