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10-QPeriod: Q2 FY2024

VERIZON COMMUNICATIONS INC Quarterly Report for Q2 Ended Jun 30, 2024

Filed July 25, 2024For Securities:VZ

Summary

Verizon Communications Inc. reported its financial results for the quarter and six months ending June 30, 2024. Total operating revenues saw a slight increase of 0.6% to $32.8 billion for the quarter and 0.4% to $65.8 billion for the six-month period, driven primarily by the Consumer segment. However, the Business segment experienced a revenue decline. Net income attributable to Verizon was $4.6 billion for the quarter and $9.2 billion for the six months, showing slight decreases compared to the prior year. Diluted earnings per share were $1.09 for the quarter and $2.18 for the six months. Significant investments in network infrastructure continue, with capital expenditures totaling $8.1 billion for the six-month period. The company maintained a strong liquidity position with $3.9 billion in cash, cash equivalents, and restricted cash. Despite a slight increase in interest expense and a decrease in cash from operations, Verizon's free cash flow improved to $8.5 billion for the six months, primarily due to reduced capital expenditures. The company remains focused on network monetization, customer base growth, and operational efficiency.

Financial Statements
Beta
Revenue$32.80B
SG&A Expenses$8.02B
Operating Expenses$24.98B
Operating Income$7.82B
Interest Expense$1.70B
Net Income$4.59B
EPS (Basic)$1.09
EPS (Diluted)$1.09
Shares Outstanding (Basic)4.21B
Shares Outstanding (Diluted)4.22B

Key Highlights

  • 1Total operating revenues increased slightly by 0.6% to $32.8 billion for the three months ended June 30, 2024, and by 0.4% to $65.8 billion for the six months ended June 30, 2024, driven by the Consumer segment.
  • 2Net income attributable to Verizon decreased slightly to $4.6 billion for the three months and $9.2 billion for the six months, compared to the same periods in 2023.
  • 3Diluted earnings per share were $1.09 for the three months and $2.18 for the six months, down from $1.10 and $2.27, respectively, in the prior year.
  • 4Capital expenditures for the six months ended June 30, 2024, were $8.1 billion, a decrease from $10.1 billion in the prior year, reflecting the completion of accelerated C-Band deployment.
  • 5Free cash flow for the six months ended June 30, 2024, increased by $548 million to $8.5 billion, primarily due to lower capital expenditures.
  • 6The Business segment saw a revenue decline of 2.4% for the quarter and 2.0% for the six months, impacted by decreases in Enterprise and Public Sector, and Wholesale revenues.
  • 7The company announced a Voluntary Separation Program for select U.S.-based management employees, with an expected severance charge in the third quarter of 2024.

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