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Jun 30, 2022

Verizon Q2 2022 Earnings Report

Verizon's Q2 2022 performance was marked by a slight revenue increase, offset by declines in net income and adjusted EBITDA, as the company focused on strategic improvements and competitive positioning.

Key Takeaways

Verizon reported a relatively flat total revenue of $33.8 billion compared to Q2 2021. EPS decreased to $1.24 from $1.40 year-over-year, with adjusted EPS at $1.31. Net income saw a decrease of 10.7% to $5.3 billion, while adjusted EBITDA declined by 2.6% to $11.9 billion. The company focused on improving operational and financial performance through strategic decisions and new consumer mobility plans.

Total revenue remained relatively flat at $33.8 billion compared to the second quarter of 2021.

Net income decreased by 10.7% to $5.3 billion year-over-year.

Total broadband net additions reached 268,000, including 256,000 fixed wireless net additions.

Business segment reported 430,000 wireless retail postpaid net additions, including 227,000 postpaid phone net additions.

Total Revenue
$33.8B
Previous year: $33.8B
+0.1%
EPS
$1.31
Previous year: $1.37
-4.4%
Consumer postpaid adds
84K
Previous year: 350K
-76.0%
Fios internet net adds
181K
Business postpaid adds
430K
Previous year: 178K
+141.6%
Gross Profit
$19.4B
Previous year: $19.5B
-0.7%
Cash and Equivalents
$1.86B
Previous year: $4.66B
-60.1%
Total Assets
$370B
Previous year: $349B
+6.0%

Verizon

Verizon

Verizon Revenue by Segment

Forward Guidance

Verizon is updating its financial guidance for the full year 2022, reflecting adjustments in expected revenue and profitability amid a competitive market.

Positive Outlook

  • Wireless service revenue growth is projected to be between 8.5% and 9.5%.
  • The company anticipates capital spending, excluding C-Band, to range from $16.5 billion to $17.5 billion.
  • Continued expectations for an adjusted effective income tax rate in the range of 23% to 25%.
  • Ongoing deployment of the company's C-Band 5G network is expected, with related expenditures between $5 billion and $6 billion.
  • Focus on strategic decisions to improve profitable growth opportunities.

Challenges Ahead

  • Reported service and other revenue growth is updated to a range of -1% to flat.
  • Adjusted EBITDA growth is revised to a range of -1.5% to flat.
  • Adjusted EPS is updated to a range of $5.10 to $5.25.
  • Recent performance did not meet company expectations.
  • The market remains very competitive.