Verizon (VZ) Q2 2024 earnings summary

Executive summary

• Wireless service revenue grew 3.5% year-over-year to $19.8 billion, with strong broadband subscriber growth and operational momentum; total operating revenue increased 0.6% to $32.8 billion, while net income was $4.7 billion, slightly down from $4.8 billion.

• Adjusted EBITDA rose 2.8% to $12.3 billion, and free cash flow for the first half was $8.5 billion, up from $8.0 billion, reflecting lower capital expenditures.

• Brand refresh, new offerings, and operational execution drove strong customer adoption, with consumer postpaid phone gross adds up 12% year-over-year and broadband net adds at 391,000.

• Announced a Voluntary Separation Program for select U.S.-based management employees, with severance charges expected in Q3 2024.

• Company remains on track to meet full-year 2024 financial guidance, citing improvements in wireless, EBITDA, and free cash flow.

Financial highlights

• Q2 2024 total operating revenues were $32.8 billion, up 0.6% year-over-year; wireless service revenue reached $19.8 billion, up 3.5%.

• Adjusted EBITDA was $12.3 billion, up 2.8% year-over-year; adjusted EPS was $1.15, down 5% due to higher interest expense.

• Free cash flow for the first half was $8.5 billion, up from $8.0 billion; capital expenditures were $8.1 billion, down from $10.1 billion.

• Net income for Q2 2024 was $4.7 billion; operating income was $7.8 billion, up 8.3% year-over-year.

• Cash dividends paid in the first half were $5.6 billion.

Outlook and guidance

• On track to meet 2024 financial guidance, with expectations for positive consumer postpaid phone net adds and sequential growth in service revenue in the second half.

• Expects 2024 wireless service revenue growth of 2.0% to 3.5%, adjusted EBITDA growth of 1.0% to 3.0%, and adjusted EPS between $4.50 and $4.70.

• Capital expenditures projected at $17.0–$17.5 billion for 2024; CapEx guidance unchanged.

• Continued focus on reducing leverage, with net unsecured debt to adjusted EBITDA at 2.5x, targeting 2.25x before considering share buybacks.

• Emphasis on operational excellence, customer experience, and leveraging AI at scale.