Verizon reported consolidated operating revenues of $32.2 billion for Q2 2018, up 5.4 percent from second-quarter 2017. On a comparable basis excluding the impacts of Oath, divested businesses and the revenue recognition standard (non-GAAP), consolidated revenues were $30.2 billion, up approximately 2.6 percent. Net income was $4.2 billion and EBITDA (non-GAAP) totaled approximately $11 billion. EPS was $1.00, compared with $1.07 in second-quarter 2017.
“Verizon is extremely well-positioned for the future,” said Chairman and CEO Lowell McAdam. “Our financial and operating results for the first half of 2018 were strong, as evidenced by service revenue, earnings and operating cash flow growth delivered in a highly competitive marketplace.”
Highlights
Wireless
- Total revenues were $22.4 billion, an increase of 5.5 percent year over year.
- Service revenues for the quarter on a reported basis grew 0.8 percent year over year.
- Approximately 82 percent of Verizon’s postpaid phone base were on unsubsidized plans, compared with 81 percent in first-quarter 2018 and 75 percent in the same period last year.
- Net increase of 531,000 retail postpaid additions, consisting of net phone additions of 199,000, tablet losses of 37,000 and 369,000 other connected devices additions, primarily wearables. Postpaid smartphone net additions for the quarter were 398,000.
- Total retail postpaid churn was 0.97 percent, slightly up year-over-year. Retail postpaid phone churn of 0.75 percent in second-quarter 2018 was the fifth consecutive quarter of retail postpaid phone churn of 0.80 percent or better.
Wireline
- Total wireline revenues were $7.5 billion. Excluding the impact of the revenue recognition standard, total wirelines revenues decreased 3.4 percent year over year in second-quarter 2018.
- Total Fios revenues were $3.0 billion, an increase of 2.0 percent year over year.
- Added a net of 43,000 Fios Internet connections, indicative of strong demand as customers value broadband connections more than ever. Verizon lost 37,000 Fios Video connections in second-quarter 2018 amid pressures from cord-cutting of video bundles.
- Wireline operating loss was $19 million in second-quarter 2018, and segment operating loss margin was 0.3 percent.
- CAPEX for 1H 2018 was $7.8 billion, compared to $7.0 billion for 1H 2017
https://www.verizon.com/about/investors/quarterly-reports/2q-2018-quarter-earnings-conference-call-webcast