(Reuters) -Verizon Communications forecast annual free money stream and revenue under Wall Avenue estimates on Friday, because the U.S. telecom main spends closely to increase high-speed web providers and appeal to prospects in a saturating wi-fi market.
The corporate has been pouring billions of {dollars} on the C-band spectrum, prized for its stability of velocity and vary, to enhance its 5G providing and outpace rivals AT&T (NYSE:) and T-Cell.
The spending can be key to hitting its purpose of doubling subscribers for its mounted wi-fi service to as a lot as 9 million by 2028.
Shares of the New York-based firm rose about 1% in premarket buying and selling.
The 2025 forecast adopted a powerful fourth quarter for subscriber progress as wi-fi additions hit a 5-year excessive due to its customizable myPlan, Black Friday promotions and trade-in offers for the AI-powered iPhone 16 sequence.
Verizon (NYSE:) expects 2025 adjusted revenue to develop between 0% and three%, with the midpoint coming in under analysts’ estimates for progress of two.7%, based on knowledge compiled by LSEG.
Free money stream, a metric that helps buyers decide dividend, is predicted to be between $17.5 billion and $18.5 billion this yr. The midpoint was under estimates of $18.44 billion, based on Seen Alpha.
Confronted with slowing progress within the U.S. telecom market, Verizon and its rivals have been betting on a ramp-up of high-speed web providers to draw subscribers. The corporate agreed to purchase Frontier Communications (OTC:) in a $20 billion deal final yr.
In October, it projected 2025 capital spending between $17.5 billion and $18.5 billion, in contrast with $17.1 billion in 2024.
Within the fourth quarter, Verizon added 568,000 month-to-month bill-paying wi-fi subscribers, outpacing FactSet estimates of 487,500 additions. It benefited from value will increase carried out in 2024 and the recognition of myPlan, which comes with streaming perks together with Disney+, Hulu and Max at an additional value.
Wi-fi gear income grew about 1% to $7.5 billion within the fourth quarter due to increased system improve volumes. General income was $35.7 billion, barely above estimates of $35.32 billion.
