VERIZON COMMUNICATIONS INC Quarterly Report for Q1 Ended Mar 31, 2023

Summary

Verizon Communications Inc. reported its first-quarter 2023 results, showing a slight decrease in total operating revenues to $32.91 billion from $33.55 billion in the prior year. This decline was primarily driven by lower wireless equipment revenues and a slight decrease in service revenues within the Consumer segment. Despite the revenue dip, Net Income attributable to Verizon increased to $4.91 billion from $4.58 billion, resulting in Diluted Earnings Per Common Share of $1.17, up from $1.09 in the first quarter of 2022. The company's operational focus remains on network investments and customer retention. Capital expenditures for the quarter were $6.0 billion, largely for 5G network deployment and C-Band spectrum. While the Business segment saw a revenue decline, the Consumer segment experienced an increase in service revenue, driven by pricing actions and subscriber growth in FWA. Management highlights a significant increase in cash flow from operating activities and free cash flow, signaling improved liquidity and operational efficiency.

Key Highlights

• 1Total operating revenues decreased by 1.9% year-over-year to $32.91 billion.
• 2Net income attributable to Verizon increased by 7.0% to $4.91 billion.
• 3Diluted Earnings Per Common Share grew to $1.17 from $1.09 year-over-year.
• 4Capital expenditures increased to $6.0 billion from $5.8 billion, primarily for network investments.
• 5Cash flow from operating activities increased significantly by $1.47 billion to $8.29 billion.
• 6Free cash flow saw a substantial rise of $1.33 billion to $2.33 billion.
• 7The Consumer segment's service revenue increased, driven by pricing actions and FWA growth, while the Business segment experienced a revenue decline.

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