01—Abstract
Summary
Summary of the 10-Q filed July 25, 2024. Cited figures are marked; the original filing is the authoritative source.
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 billiona 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 $1.09b 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 billionc for the six months, primarily due to reduced capital expenditures. The company remains focused on network monetization, customer base growth, and operational efficiency.
02—Key points
Key Highlights
- Total 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.
- Net 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.
- Diluted 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.
- Capital 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.
- Free cash flow for the six months ended June 30, 2024, increased by $548 million to $8.5 billion, primarily due to lower capital expenditures.
- The 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.
- The company announced a Voluntary Separation Program for select U.S.-based management employees, with an expected severance charge in the third quarter of 2024.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2024filed July 25, 2024Financial Statements
Q2 FY2024 against Q2 FY2023
| Line item | Q2 FY2024Q2 FY2023 | Change |
|---|---|---|
| Revenue | $32.80B$32.60B | +0.6% |
| SG&A Expenses | $8.02B$8.25B | −2.8% |
| Operating Expenses | $24.98B$25.38B | −1.6% |
| Operating Income | $7.82B$7.22B | +8.3% |
| Interest Expense | $1.70B$1.28B | +32.1% |
| Net Income | $4.59B$4.65B | −1.2% |
| EPS (Basic) | $1.09$1.10 | −0.9% |
| EPS (Diluted) | $1.09$1.10 | −0.9% |
| Shares Outstanding (Basic) | 4.21B4.21B | +0.2% |
| Shares Outstanding (Diluted) | 4.22B4.21B | +0.2% |
05—Questions
Frequently Asked Questions
What was Verizon's overall revenue performance in this quarter?
Verizon reported a slight increase in total operating revenues, up 0.6% to $32.8 billion for the three months ended June 30, 2024, and up 0.4% to $65.8 billion for the six-month period. This growth was primarily driven by the Consumer segment, while the Business segment experienced a revenue decline.
How did profitability change compared to the previous year?
Net income attributable to Verizon saw a slight decrease, with $4.6 billion reported for the three months and $9.2 billion for the six months ended June 30, 2024, compared to the same periods in 2023. Diluted earnings per share also decreased to $1.09 for the quarter and $2.18 for the six months.
What is the company's capital expenditure and cash flow situation?
Capital expenditures for the first six months of 2024 were $8.1 billion, a reduction from the prior year, mainly due to the completion of C-Band deployment. This decrease in spending contributed to an increase in free cash flow to $8.5 billion for the six-month period, demonstrating improved cash generation.
Are there any significant strategic initiatives or upcoming events mentioned?
Verizon announced a Voluntary Separation Program for select U.S.-based management employees. The company expects to record a severance charge in the third quarter of 2024 related to this program, the impact of which will depend on the number of volunteers accepted.
06—Continue