Summary
Verizon Communications Inc. reported strong financial results for the second quarter and first half of 2013, demonstrating robust revenue growth and increased profitability. Total operating revenues reached $29.79 billion for the quarter, a 4.3% increase year-over-year, driven primarily by a 7.5% surge in the Wireless segment's revenues. The company's strategic focus on higher-margin growth areas like wireless data and wireline data services continues to pay off. The Wireless segment, in particular, showed significant strength, with service revenues up 8.3% due to increased retail postpaid connections, higher smartphone penetration, and greater adoption of data devices. The Wireline segment, while facing some declines in traditional services, saw growth in Mass Markets driven by FiOS services and an increase in Strategic services within Global Enterprise. Profitability also improved, with net income attributable to Verizon increasing to $2.25 billion for the quarter, up from $1.83 billion in the prior year. Earnings per share rose to $0.78 from $0.64. The company also highlighted substantial free cash flow generation, underscoring its financial health and ability to return value to shareholders.
Financial Highlights
51 data points| Revenue | $29.79B |
| Cost of Revenue | $11.03B |
| Gross Profit | $18.75B |
| SG&A Expenses | $8.05B |
| Operating Expenses | $23.23B |
| Operating Income | $6.55B |
| Interest Expense | $514.00M |
| Net Income | $2.25B |
| EPS (Basic) | $0.78 |
| EPS (Diluted) | $0.78 |
| Shares Outstanding (Basic) | 2.87B |
| Shares Outstanding (Diluted) | 2.87B |
Key Highlights
- 1Total operating revenues increased by 4.3% to $29.79 billion for the three months ended June 30, 2013, compared to the same period in 2012.
- 2Wireless segment revenues grew by 7.5% to $19.98 billion, driven by an 8.3% increase in service revenue, largely due to higher retail postpaid connections and increased smartphone penetration.
- 3Net income attributable to Verizon increased to $2.25 billion for the quarter, up from $1.83 billion in the prior year, with diluted EPS rising to $0.78 from $0.64.
- 4The company generated $17.15 billion in net cash from operating activities for the six months ended June 30, 2013, an increase of $1.88 billion year-over-year.
- 5Free cash flow for the first six months of 2013 was $9.53 billion, up from $7.84 billion in the same period of 2012, indicating strong operational cash generation.
- 6Capital expenditures increased slightly to $7.62 billion for the first six months of 2013, primarily for the continued build-out of the 4G LTE network.
- 7Dividends paid increased to $2.95 billion for the first six months of 2013 from $2.59 billion in the prior year, reflecting a commitment to shareholder returns.