Verizon Communications Inc. Verizon (VZ) NYSE:- Yahoo’s parent company beat estimates for second-quarter profit and revenue with strong demand cell service and internet connections. Even with many Verizon stores closed due to COVID-19, the services were in high demand. Verizon offers curbside delivery and appointment only in store shopping.
Verizon also owns Tech Crunch and The Huffington Post. Revenue was down due to advertising cuts amid the COVID-19 pandemic.
The consumer-based unit contributed revenue of $21.1 billion, a decrease of 4% year over year. Wireless service revenue was $15.9 billion. Verizon added 76K accounts. Analysts were looking for 100,000 subscribers.
Strong wireless customer additions and cash flow highlight Verizon’s 2Q and first-half 2020 results
2Q 2020 highlights:
Consolidated:$1.13 in earnings per share (EPS), compared with $0.95 in 2Q 2019; adjusted EPS (non-GAAP), excluding special items, of $1.18, compared with $1.23 in 2Q 2019.Operating revenue decline of 5.1 percent from second-quarter 2019.First-half 2020 cash flow from operations of $23.6 billion, an increase of $7.7 billion from first-half 2019.Second-quarter 2020 total debt reduction of $4.9 billion, and net debt (non-GAAP) reduction of $5.7 billion.
Consumer:Total revenue of $21.1 billion, a decrease of 4.0 percent year over year.72,000 retail postpaid net additions, including 97,000 phone net additions and 199,000 postpaid smartphone net additions.Total retail postpaid churn of 0.69 percent, and retail postpaid phone churn of 0.51 percent.10,000 Fios Internet net additions.
Business:Total revenue of $7.5 billion, a decrease of 3.7 percent year over year.280,000 retail postpaid net additions, including 76,000 phone net additions.Total retail postpaid churn of 1.12 percent, and retail postpaid phone churn of 0.90 percent.
Total Wireless:Total wireless service revenue of $15.9 billion, a 1.7 percent decrease year over year.352,000 retail postpaid net additions, including 173,000 phone net additions and 287,000 postpaid smartphone net additions.
Total retail postpaid churn of 0.78 percent, and retail postpaid phone churn of 0.58 percent. Going forward with many work at home lifestyles that companies are embracing. and more staying at home as schools focus on online learning will remain strong. Financial Reposts Source Verizon
Verizon’s dividend of $1.23 per share will be paid out August 3rd 2020.
“For second-quarter 2020, Verizon reported EPS of $1.13, compared with $0.95 in second-quarter 2019. On an adjusted basis (non-GAAP), second-quarter 2020 EPS, excluding special items, was $1.18, compared with adjusted EPS of $1.23 in second-quarter 2019. The company estimates that second-quarter 2020 EPS and adjusted EPS included approximately 14 cents of COVID-19-related net impacts, primarily driven by impacts to wireless service revenue and lower advertising and search revenue from Verizon Media. The company expects total wireless service revenue growth for third-quarter 2020 of -1 percent to flat year over year.” Source Verizon https://www.verizon.com/about/news/strong-wireless-customer-additions-and-cash-flow-highlight-verizons-2q-and-first-half-2020
Hans Vestberg is chairman and chief executive officer of Verizon Communications, a leading provider of wireless, fiber-optic and global Internet networks and services. Prior to assuming the role of CEO in August 2018 and the role of Chairman in March 2019, Mr. Vestberg served as Verizon’s chief technology officer and president of Global Networks from 2017, with responsibility for further developing the architecture for Verizon’s fiber-centric networks. At Verizon, he has focused on transforming the businesses 2.0 customer-centric strategy, leading the company to be first in the world to deploy 5G home and mobile technology, delivering seamless experiences for customers over network assets consisting of the country’s leading 4G LTE network, the nation’s biggest residential fiber network, a global internet backbone and undersea cable network carrying much of the world’s internet traffic, and fiber assets in 45 of the top 50 markets in the U.S. Source: Verizon