Verizon Communications Inc
Its sales increased 0.6% year over year to $32.8 billion, marginally missing the analyst consensus estimate of $33.1 billion. Adjusted EPS of $1.15 was in line with the analyst consensus estimate.
Total wireless service revenue was $19.8 billion, up 3.5% year over year, driven primarily by growth in Consumer wireless service revenue.
Postpaid phone net additions were 148,000, beating estimates for 118,000, as Verizon strives to retain subscribers by offering perks like a bundled plan that includes Netflix Inc
The second quarter saw 391,000 total broadband net additions. The company ended the quarter with 11.5 million broadband subscribers, up 17.2% year over year.
Total Verizon Business revenues were $7.3 billion, down by 2.4% Y/Y.
Total Verizon Consumer revenue rose by 1.5% Y/Y to $24.9 billion. Consumer wireless retail postpaid churn was 1.00%, and wireless retail postpaid phone churn was 0.79%.
Verizon Consumer clocked wireless retail postpaid phone net losses of 8,000, up from 136,000 Y/Y. Verizon Consumer had fixed wireless net additions of 218,000.
The consumer segment EBITDA margin improved by 100 bps 44.1%, attributed to service revenue growth and lower upgrade volumes, while the business segment EBITDA margin declined 30 bps to 21.6%, driven by wireline revenue declines.
Company-level adjusted EBITDA of $12.3 billion, up from $12.0 billion Y/Y.
Verizon ended the first of 2024 with a free cash flow of $8.5 billion, up from $8.0 billion Y/Y.
FY24 Outlook: Verizon reiterated a 2.0% - 3.5% wireless service revenue growth. It maintained an adjusted EPS of $4.50 - $4.70 versus consensus of $4.58.
Price action: VZ shares traded lower by 3.89% at $40.01 premarket at the last check on Monday.
