Verizon Q2 2024 Financial Results

Verizon Communications Inc. has released its second-quarter 2024 financial results, showcasing robust performance in wireless service revenue and broadband subscriber growth. The company remains on track to meet its full-year 2024 financial guidance.

Financial Highlights

Verizon reported total operating revenue of $32.8 billion for Q2 2024, marking a 0.6% increase from the same period in 2023. The company's consolidated net income for the quarter was $4.7 billion, slightly down from $4.8 billion in Q2 2023. Earnings per share (EPS) stood at $1.09, compared to $1.10 in the previous year. On an adjusted basis, EPS was $1.15, down from $1.21 in Q2 2023.

Business and Operational Highlights

Verizon's wireless service revenue grew by 3.5% year-over-year to $19.8 billion. The company added 148,000 retail postpaid phone net additions and 340,000 retail postpaid net additions. Retail postpaid phone churn was 0.85%, and retail postpaid churn was 1.11%. In the broadband segment, Verizon achieved 391,000 total broadband net additions, marking the eighth consecutive quarter with over 375,000 net additions. Fixed wireless net additions were 378,000, bringing the total fixed wireless subscribers to over 3.8 million, a 69% increase year-over-year.

Strategic Initiatives and Corporate Developments

Verizon's total unsecured debt decreased by $3.1 billion compared to Q1 2024, and by $6.1 billion year-over-year, ending Q2 2024 at $125.3 billion. The company's net unsecured debt was $122.8 billion. Verizon's capital expenditures for the first half of 2024 were $8.1 billion, down from $10.1 billion in the first half of 2023, indicating a return to historic levels of capital intensity.

Management's Perspective

Hans Vestberg, Verizon's Chairman and CEO, commented, "The sequential and year-over-year improvements in the second quarter were a reflection of operational excellence and the moves we made to bring choice, value, and control to our customers’ lives. Our industry-leading network serves as a catalyst for how our millions of customers live their lives and serves as the backbone for new and emerging technologies."

Future Outlook

Verizon continues to expect total wireless service revenue growth of 2.0% to 3.5% for 2024. The company also anticipates adjusted EBITDA growth of 1.0% to 3.0%, adjusted EPS of $4.50 to $4.70, and capital expenditures between $17.0 billion and $17.5 billion. The adjusted effective income tax rate is expected to be in the range of 22.5% to 24.0%.

SEC Filing: VERIZON COMMUNICATIONS INC [ VZ ] - 8-K - Jul. 22, 2024