For the quarter, the company reported net income of $4.7 billion a decrease of 9.6% compared to the same quarter in 2019. However, adjusted EBITDA totalled $11.7 billion up 5.3% compared to Q4 of 2019.
Operating revenue saw a decline of 0.2% at $34.7 billion compared with Q4 of 2019, due to ‘lower wireless equipment revenue and ongoing declines in legacy wireline products’.
Overall, earnings per share were slightly down reaching $1.11 compared with $1.23 in the fourth quarter of 2019 but again adjusted earnings per share were up at $1.21 compared to $1.13 back in Q4 2019.
Verizon’s consumer business also saw a decline in revenues at $23.9 billion, a decrease of 1.2% year on year, the company’s business unit also saw revenues fall 0.3% to $8.1 billion.
The company’s wireless service revenue came out on top however, with revenues up 2.2% year on year, with revenues of $16.7 billion. Specifically, the wireless unit added 703,000 retail postpaid, 279,000 phone and 442,000 postpaid smartphone customers.
The same was also true for Verizon Media whose revenues were $2.3 billion in the fourth quarter 2020, up 11.4% year on year.
"2020 was marked by transformational change, including the launch of our 5G nationwide network. We witnessed a mass shift toward virtual collaboration, touchless retail and delivery, remote work, distance learning, and telemedicine,” said Hans Vestberg (pictured), CEO and chairman of Verizon.
“We continued to execute our multi-use network strategy; we were recognized by RootMetrics as the best overall wireless provider, undefeated in all categories; and we continue to be the partner of choice for the world’s most innovative brands. Today, we are excited to lead technological advances beyond mobile devices and create new opportunities for growth across multiple industries."
Looking at the full year picture, earnings per share for 2020 totalled $4.30, compared with $4.65 in 2019, with an adjusted earnings per share of $4.90, compared to $4.81 in 2019.
Operating cash flow for the year reached $41.8 billion, up 16.8% year on year and a free cash flow of $23.6 billion up 32.4% from 2019.
For 2021, the company predicts service and other revenue growth of at least 2%, a 3% increase in wireless service revenue growth and earnings per share between $5.00 to $5.15.
The company has also committed to capital spending in the range of $17.5 billion to $18.5 billion, which includes the further expansion of its 5G Ultra-Wideband “in new and existing markets, the densification of the wireless network to manage future traffic demands, and the continued deployment of the company's fibre infrastructure”.
