Verizon Communications beat wireless and wireline subscriber growth expectations in the second quarter with 148K postpaid phone net additions, beating estimates for 118,000. There were 391,000 total broadband wireline net additions. The company ended the quarter with 11.5 million broadband subscribers, up 17.2% year over year. However, the telecom company posted lower operating revenue that was below expectations. Earnings mostly matched expectations, but were below the year ago level.
2Q 2024 Highlights:
Wireless: Accelerated growth in wireless service revenue
Total wireless service revenue1 of $19.8 billion, a 3.5 percent increase year over year.
Retail postpaid phone net additions of 148,000, and retail postpaid net additions of 340,000.
Retail postpaid phone churn of 0.85 percent, and retail postpaid churn of 1.11 percent.
Broadband: Double-digit broadband subscriber growth
Total broadband net additions of 391,000. This was the eighth consecutive quarter with more than 375,000 broadband net additions.
Total fixed wireless net additions of 378,000. At the end of second-quarter 2024, the company had a base of more than 3.8 million fixed wireless subscribers, representing an increase of nearly 69 percent year over year.
11.5 million total broadband subscribers as of the end of second-quarter 2024, representing a 17.2 percent increase year over year.
Fixed wireless revenue for second-quarter 2024 was $514 million, up more than $200 million year over year.
Other results and FY 2024 forecast:
Verizon reported adjusted earnings of $1.15 a share for the quarter, in line with analyst expectations, but a slowdown from last year’s adjusted earnings of $1.21 a share. This was also the lowest earnings per share for a second quarter since 2017.
Total operating revenue came in at $32.8 billion, 0.6% higher than a year ago, but below estimates of $33.8 billion.
Total wireless service revenue was $19.8 billion, up 3.5% year over year, driven primarily by growth in Consumer wireless service revenue.
FY-2024 Outlook: Verizon reiterated a 2.0% – 3.5% wireless service revenue growth. It maintained an adjusted EPS of $4.50 – $4.70 versus consensus of $4.58.
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