Summary
Verizon Communications Inc. reported total operating revenues of $33.55 billion for the first quarter of 2022, a 2.1% increase year-over-year, driven primarily by a 10.9% surge in its Consumer segment revenues to $25.3 billion. This growth in the Consumer segment was significantly boosted by the inclusion of TracFone's results and an increase in wireless equipment sales. Conversely, the Business segment experienced a slight revenue decline of 0.9%, totaling $7.7 billion. The company's net income attributable to Verizon for the quarter was $4.58 billion, a decrease from $5.25 billion in the prior year, resulting in diluted earnings per share of $1.09, down from $1.27 in Q1 2021. This net income decrease was largely influenced by significant debt extinguishment costs of $1.2 billion recorded in the current quarter. Cash flow from operations saw a notable decrease to $6.82 billion from $9.69 billion in the prior year, impacting free cash flow to $1 billion from $5.2 billion. This reduction is attributed to changes in working capital and a decrease in earnings. Capital expenditures increased to $5.8 billion, with a substantial portion allocated to the 5G network deployment, particularly C-Band spectrum. Despite the operational and financial shifts, Verizon continues to invest heavily in network infrastructure to maintain its competitive edge and drive future growth.
Financial Highlights
48 data points| Revenue | $33.55B |
| SG&A Expenses | $7.17B |
| Operating Expenses | $25.76B |
| Operating Income | $7.80B |
| Interest Expense | $786.00M |
| Net Income | $4.58B |
| EPS (Basic) | $1.09 |
| EPS (Diluted) | $1.09 |
| Shares Outstanding (Basic) | 4.20B |
| Shares Outstanding (Diluted) | 4.20B |
Key Highlights
- 1Total operating revenues increased by 2.1% to $33.55 billion in Q1 2022, primarily driven by the Consumer segment.
- 2The Consumer segment revenue grew by 10.9% to $25.3 billion, bolstered by wireless equipment sales and the inclusion of TracFone results.
- 3Net income attributable to Verizon decreased to $4.58 billion from $5.25 billion in Q1 2021, with diluted EPS falling to $1.09 from $1.27.
- 4Significant debt extinguishment costs of $1.2 billion negatively impacted net income.
- 5Cash flow from operations decreased by $2.87 billion to $6.82 billion, leading to a substantial drop in free cash flow to $1 billion.
- 6Capital expenditures increased by $1.3 billion to $5.8 billion, largely due to investments in 5G and C-Band spectrum deployment.
- 7The Business segment revenue saw a slight decrease of 0.9% to $7.7 billion.