Summary
Verizon Communications Inc. (VZ) reported its financial results for the quarter and six months ended June 30, 2019. Total operating revenues remained relatively flat for the quarter, decreasing by 0.4%, but saw a slight increase of 0.4% for the six-month period compared to the prior year. Net income attributable to Verizon was $3,944 million for the quarter, a decrease from $4,120 million in the same period last year, and $8,976 million for the six months, an increase from $8,665 million in the prior year. Diluted earnings per share were $0.95 for the quarter and $2.17 for the six months. The company implemented a new two-segment reporting structure, comprising Verizon Consumer Group and Verizon Business Group. The Consumer segment showed stable revenues for the quarter and a 1.2% increase for the six months, driven by service and other revenues, though wireless equipment revenue declined. The Business segment experienced a slight revenue decrease in both periods, mainly due to lower revenues in Global Enterprise and Wholesale. Significant capital expenditures, totaling $7.97 billion for the first six months, were directed towards network modernization, including 4G LTE densification and 5G technology deployment.
Financial Highlights
46 data points| Revenue | $32.07B |
| SG&A Expenses | $7.27B |
| Operating Expenses | $24.22B |
| Operating Income | $7.85B |
| Interest Expense | $1.22B |
| Net Income | $3.94B |
| EPS (Basic) | $0.95 |
| EPS (Diluted) | $0.95 |
| Shares Outstanding (Basic) | 4.14B |
| Shares Outstanding (Diluted) | 4.14B |
Key Highlights
- 1Total operating revenues for the six months ended June 30, 2019, increased slightly by 0.4% to $64.2 billion, while quarterly revenues saw a marginal decrease of 0.4% to $32.1 billion.
- 2Net income attributable to Verizon for the second quarter of 2019 was $3,944 million, a decrease from $4,120 million in the prior year's quarter.
- 3Diluted Earnings Per Share (EPS) was $0.95 for the quarter and $2.17 for the six months, showing an increase from $2.10 in the comparable prior year period.
- 4The company reorganized into two reportable segments: Verizon Consumer Group and Verizon Business Group, effective April 1, 2019.
- 5Capital expenditures for the first six months of 2019 were $7.97 billion, up from $7.84 billion in the prior year, primarily for network infrastructure and 5G deployment.
- 6Free cash flow for the first six months of 2019 decreased to $7.87 billion from $8.60 billion in the prior year, reflecting lower operating cash flows and higher capital expenditures.
- 7Verizon paid $5.0 billion in cash dividends during the first six months of 2019, compared to $4.8 billion in the prior year.