Summary
Verizon Communications Inc. (VZ) reported strong financial performance for the second quarter and first half of 2021, driven by significant revenue growth across its Consumer and Business segments. Total operating revenues increased by 10.9% in Q2 2021 and 7.4% for the first half compared to the prior year, reaching $33.8 billion and $66.6 billion, respectively. This growth was supported by robust wireless equipment sales and continued strength in service revenues. The company's strategic investments in network expansion, particularly 5G, are underpinning this performance. Significant capital expenditures were noted, including substantial investments in C-Band spectrum. Despite these investments and ongoing operational costs, Verizon demonstrated solid profitability with net income attributable to Verizon increasing to $5.8 billion for the quarter and $11.0 billion for the first half. The company also announced progress on strategic divestitures, including the pending sale of Verizon Media, which is expected to close in the second half of 2021.
Financial Highlights
48 data points| Revenue | $33.76B |
| SG&A Expenses | $7.32B |
| Operating Expenses | $25.60B |
| Operating Income | $8.16B |
| Interest Expense | $844.00M |
| Net Income | $5.80B |
| EPS (Basic) | $1.40 |
| EPS (Diluted) | $1.40 |
| Shares Outstanding (Basic) | 4.14B |
| Shares Outstanding (Diluted) | 4.14B |
Key Highlights
- 1Total operating revenues increased by 10.9% year-over-year to $33.8 billion in Q2 2021 and by 7.4% to $66.6 billion for the first six months of 2021.
- 2Net income attributable to Verizon increased to $5.8 billion for Q2 2021, up from $4.7 billion in Q2 2020.
- 3The Consumer segment saw revenue growth of 11.2% in Q2 2021, driven by wireless equipment and service revenues.
- 4The Business segment reported a revenue increase of 3.7% in Q2 2021, primarily due to growth in Public Sector and Other, and Small and Medium Business.
- 5Verizon made significant capital expenditures, with $8.7 billion invested in the first half of 2021, including substantial outlays for C-Band spectrum licenses.
- 6The company is progressing with its strategy to sell Verizon Media, with the transaction expected to close in the second half of 2021.
- 7Free cash flow for the first six months of 2021 was $11.7 billion, a decrease from $13.7 billion in the prior year, reflecting higher operating cash flows and reduced capital expenditures.