Verizon’s wireless service revenue in Q4 2018
Now let’s look at the two most important components of Verizon’s (VZ) wireless revenue. The smaller part is the company’s wireless equipment revenue, while the larger part is its wireless service revenue. In the fourth quarter, Verizon reported wireless service revenue of $15.9 billion, up ~0.1% YoY. However, excluding the impact of the adoption of the new revenue recognition accounting standard, Verizon reported wireless service revenue of $16.2 billion in the fourth quarter, which was up ~1.9% YoY.
About 84% of postpaid phone subscribers were on unsubsidized pricing plans at the end of the fourth quarter compared with 80% in the fourth quarter of 2017. The increase in penetration of unsubsidized plans has helped Verizon return to service revenue growth.
Performance of other US mobile operators
By comparison, AT&T (T) reported combined domestic wireless operations service revenue of $13.9 billion in the quarter ended December 31, a ~3.0% reduction YoY. Sprint’s (S) wireless service revenue fell ~3.0% YoY to reach $5.4 billion. T-Mobile (TMUS) has not yet reported its financial results. Wall Street expects T-Mobile’s wireless service revenue to grow by ~5.7% YoY to reach $8.2 billion.