Verizon Communications Inc. expects revenue growth of about 4% annually in 2024 and beyond, driven by gains from its new 5G mobile phone services.
Service and other revenue is expected to grow about 3% in 2022 and 2023 and 4% in 2024, Matt Ellis, chief financial officer, told investors at a conference Thursday. Analysts had expected gains of about 2% a year through 2024.
The target highlights near-term challenges Verizon faces as mobile subscriber growth cools off from record 2021 levels. The company and its peers AT&T Inc. and T-Mobile US Inc. are under pressure to show that more than $100 billion spent on 5G technology will start to show a payback soon.
Executives at the conference pointed to growth initiatives, like selling mobile subscribers higher-priced 5G unlimited data plans, offering wireless home broadband and securing partnerships with big tech companies.
On the partnership side, Verizon announced a collaboration with Facebook parent Meta Platforms Inc. The parties will explore “a range of metaverse opportunities from the future of hybrid work/collaboration to metaverse-related consumer experiences,” Verizon said.
Financial terms weren’t revealed.
Verizon rose as much as 1.9% to $55.14 Thursday in New York.