Summary
Verizon Communications Inc. reported solid financial results for the third quarter of 2021, demonstrating resilience and growth across its key segments. Total operating revenues increased by 4.3% year-over-year to $32.9 billion, driven by a strong performance in the Consumer segment, which saw a 7.3% revenue increase. The Business segment also showed modest growth of 1.4% year-over-year for the nine-month period. Net income attributable to Verizon saw a significant jump to $6.4 billion for the quarter, compared to $4.4 billion in the prior year, reflecting improved operational efficiency and the favorable impact of certain one-time items, including the gain from the sale of Verizon Media. The company continues to make substantial investments in its network infrastructure, particularly in 5G technology and spectrum acquisition, highlighted by the significant capital expenditures for C-Band spectrum. Despite these investments and ongoing operational costs, Verizon maintained healthy operating income and EBITDA. The company's strategic focus on network leadership and customer base retention appears to be paying off, positioning it well for future growth in the evolving telecommunications landscape.
Financial Highlights
48 data points| Revenue | $32.91B |
| SG&A Expenses | $6.52B |
| Operating Expenses | $24.01B |
| Operating Income | $8.90B |
| Interest Expense | $801.00M |
| Net Income | $6.41B |
| EPS (Basic) | $1.55 |
| EPS (Diluted) | $1.55 |
| Shares Outstanding (Basic) | 4.14B |
| Shares Outstanding (Diluted) | 4.14B |
Key Highlights
- 1Total Operating Revenues increased by 4.3% to $32.9 billion in Q3 2021 compared to Q3 2020.
- 2Net income attributable to Verizon increased significantly to $6.4 billion in Q3 2021, up from $4.4 billion in Q3 2020.
- 3Consumer segment revenue grew 7.3% year-over-year, driven by increases in service and wireless equipment revenue.
- 4Verizon completed the sale of Verizon Media on September 1, 2021, recognizing a pre-tax gain of approximately $1.1 billion.
- 5Capital expenditures for the nine months ended September 30, 2021, were $13.9 billion, including significant investments in 5G and C-Band spectrum.
- 6Total debt increased to $151.0 billion as of September 30, 2021, from $129.1 billion at December 31, 2020, largely due to spectrum acquisitions.
- 7Free cash flow for the nine months ended September 30, 2021, was $17.3 billion, a decrease from $18.3 billion in the prior year, reflecting changes in operating cash flows and capital expenditures.