Verizon Communications Inc
It clocked a sales decline of 2.6% year-on-year to $33.34 billion, beating the consensus of $33.25 billion. Adjusted EPS of $1.22 beat the consensus of $1.18.
Total wireless service revenue was $19.3 billion, up 2.9% Y/Y, reflecting the company's ownership of TracFone, premium Unlimited strategy, and pricing actions. Postpaid phone net additions were 100,000, and retail postpaid net additions were 581,000.
The quarter marked 434,000 total broadband net additions, reflecting strong demand for fixed wireless and Fios products.
The company ended the quarter with approximately 10.3 million broadband subscribers, up 21% Y/Y.
Total Verizon Business revenues were $7.5 billion, down by 4% Y/Y. Total Verizon Consumer revenue declined by 2.3% Y/Y to $25.3 billion.
Consumer wireless retail postpaid churn was 1.04%, and wireless retail postpaid phone churn was 0.85%.
Verizon Consumer clocked wireless retail postpaid phone net losses of 51,000. Verizon Consumer had fixed wireless net additions of 251,000.
The consumer segment EBITDA margin improved by 190 bps 42.8%, attributed to service revenue growth and lower upgrade volumes, while the business segment EBITDA margin declined by 60 bps to 22.1%, driven by continued declines in high-margin wireline revenues.
Adjusted EBITDA of $12.2 billion was up 0.2% Y/Y.
FY23 Outlook: Verizon reiterated a 2.5% - 4.5% wireless service revenue growth. It reiterated its adjusted EPS outlook of $4.55 - $4.85 versus the consensus of $4.68.
The company expects free cash flow above $18 billion, a $1 billion increase from the previously issued guidance.
Price action: VZ shares traded higher by 3.82% at $32.59 in premarket on the last check Tuesday.
