Verizon Communications Q2 Profit Tops Estimates; Affirms Guidance

(RTTNews) - Verizon Communications Inc. (VZ) said its second-quarter results were highlighted by wireless service revenue growth, and increased cash flow from operation. Net income declined 10.3 percent from last year, while consolidated adjusted EBITDA increased 0.8 percent. Total consolidated operating revenue decreased 3.5 percent primarily due to reduced wireless equipment revenue and lower postpaid phone upgrade activity. Wireless retail postpaid phone gross adds were up 2.0% year-over-year, while Consumer wireless retail postpaid phone gross adds increased 6.9%.

Verizon Consumer reported 136,000 wireless retail postpaid phone net losses. Consumer postpaid phone gross additions increased 6.9 percent year over year. Consumer reported 304,000 wireless retail prepaid net losses in second-quarter. Consumer reported 251,000 fixed wireless net additions and 51,000 Fios Internet net additions.

Verizon Business reported 308,000 wireless retail postpaid net additions in second-quarter, including 144,000 postpaid phone net additions. Business reported more than 125,000 postpaid phone net additions. Business wireless service revenue increased 5.3 percent year over year driven by continued strong net additions and pricing actions implemented in recent quarters.

Second quarter net income was $4.77 billion compared to $5.32 billion, last year. Earnings per share was $1.10, compared with $1.24. Adjusted EPS, excluding special items, was $1.21, compared with $1.31. On average, 18 analysts polled by Thomson Reuters expected the company to report profit per share of $1.16, for the quarter. Analysts' estimates typically exclude special items. The company noted that its second-quarter earnings reflected a pre-tax loss from special items of approximately $598 million.

Second quarter total revenue was $32.6 billion, down 3.5% from prior year. Total operating revenues was $32.60 billion compared to $33.79 billion, previous year. Analysts on average had estimated $33.28 billion in revenue. Total Verizon Consumer revenue was $24.6 billion, a decrease of 4.1 percent.

For 2023, Verizon continues to expect: total wireless service revenue growth of 2.5 percent to 4.5 percent; adjusted EBITDA of $47.0 billion to $48.5 billion; adjusted EPS of $4.55 to $4.85; and capital spending in the range of $18.25 billion to $19.25 billion.

The company ended first-half 2023 with free cash flow of $8.0 billion. Verizon's unsecured debt as of the end of second-quarter decreased by $662 million sequentially to $131.4 billion.

Shares of Verizon Communications are up 2% in pre-market trade on Tuesday.

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