Verizon revenue drops 3.5% to $32.6 bn in second-quarter

Verizon Communications said revenue decreased 3.5 percent to $32.6 billion in the second-quarter of 2023.
Q2 2023 Verizon resultVerizon has posted 10.3 percent drop in net income to $4.8 billion.

Capital expenditures in first-half 2023 were $10.1 billion.

Verizon, whose plans cost more than its rivals, has added 8,000 net monthly bill-paying wireless phone subscribers in the second quarter.

The carrier has been trying to aggressively build out its 5G network in the United States, in hopes that it would give it an edge over cheaper offerings from rival telecom players such as T-Mobile in a fiercely competitive market.

The decrease in total revenue was primarily due to reduced wireless equipment revenue and lower postpaid phone upgrade activity. Wireless retail postpaid phone churn was 0.83 percent.

Verizon has generated revenue of $19.1 billion (+3.8 percent) from Wireless; $24.6 billion (–4.1 percent) from total Consumer; and $7.5 billion (–1.9 percent) from Business.

The increase in wireless service revenue was driven primarily by pricing actions implemented in recent quarters, the larger allocation of administrative and telco recovery fees from other revenue into wireless service revenue, and a growing contribution from fixed wireless offerings.

Verizon expects the following:

Total wireless service revenue growth2 3 of 2.5 percent to 4.5 percent
Adjusted EBITDA of $47 billion to $48.5 billion
Capital spending in the range of $18.25 billion to $19.25 billion
Q2 2023 Verizon financial result
The increase of 3.5 percent in Wireless service revenue was driven by growth in retail postpaid Average Revenue Per Account (ARPA), partially offset by a decline in retail postpaid phone connections and prepaid connections.

Consumer wireless retail postpaid churn was 0.95 percent in second-quarter 2023, and wireless retail postpaid phone churn was 0.76 percent.

Consumer reported 136,000 wireless retail postpaid phone net losses. Consumer postpaid phone gross additions increased 6.9 percent.

Consumer reported 304,000 wireless retail prepaid net losses in second-quarter 2023. Consumer posted 251,000 fixed wireless net additions and 51,000 Fios Internet net additions in second-quarter 2023. Consumer Fios revenue was $2.9 billion in second-quarter 2023, a decrease of 0.3 percent.