10-QPeriod: Q1 FY2023

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

Filed April 27, 2023For Securities:VZ

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.

Financial Highlights

47 data points
Beta

Revenue

$32.91B

Net Income

$4.91B

14.9% Net Margin

EPS (Diluted)

$1.17

Total Assets

$377.72B

Cash & Equivalents

$2.23B

Free Cash Flow

$8.29B

Financial Statements
Beta
Revenue$32.91B
SG&A Expenses$7.51B
Operating Expenses$25.33B
Operating Income$7.58B
Interest Expense$1.21B
Net Income$4.91B
EPS (Basic)$1.17
EPS (Diluted)$1.17
Shares Outstanding (Basic)4.21B
Shares Outstanding (Diluted)4.21B

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.

Frequently Asked Questions

The decrease in total operating revenues was primarily driven by lower wireless equipment revenues due to fewer phone upgrades and a slight decline in overall service revenues, particularly within the Consumer segment. The Business segment also saw a revenue decrease.

Verizon's profitability improved significantly, with Net Income attributable to Verizon increasing by 7.0% to $4.91 billion. This growth in net income, despite a slight dip in overall revenue, led to an increase in Diluted Earnings Per Common Share to $1.17 from $1.09 in the prior year's quarter.

Verizon continues to make substantial investments in its network infrastructure. Capital expenditures for the first quarter of 2023 were $6.0 billion, an increase from the prior year, with a focus on deploying 5G technology, expanding C-Band spectrum coverage, and enhancing fiber optic networks to support future growth and maintain network leadership.

Cash flow from operating activities saw a robust increase of $1.47 billion, reaching $8.29 billion. Consequently, free cash flow also experienced a significant rise of $1.33 billion, totaling $2.33 billion for the quarter. This improvement is attributed to better working capital management and increased earnings.