Verizon Communications Inc. (NYSE, Nasdaq: VZ) released its second-quarter results, demonstrating impressive wireless service revenue growth and increased cash flow from operations. The company is heading into the second half of the year with strong momentum.
According to Chairman and CEO Hans Vestberg, Verizon made significant progress on its key priorities during the second quarter. These priorities include growing wireless service revenue, delivering healthy consolidated adjusted EBITDA and increasing free cash flow. Vestberg expressed confidence in achieving the company's financial targets for the full year.
For the second quarter of 2023, Verizon reported earnings per share (EPS) of $1.10, compared to $1.24 in the same quarter of 2022. On an adjusted basis, excluding special items, the EPS was $1.21 in the second quarter of 2023, compared to $1.31 in the second quarter of 2022.The second-quarter 2023 earnings also reflected a pre-tax loss from special items, including a pre-tax severance charge of $237 million, impacts of amortization of intangible assets related to TracFone and other acquisitions of $206 million, and a pre-tax asset rationalization charge of $155 million related to certain real estate and non-strategic assets.
Consolidated results showed that total operating revenue in the second quarter of 2023 was $32.6 billion, a 3.5% decrease from the second quarter of 2022. This decrease was mainly due to reduced wireless equipment revenue and lower postpaid phone upgrade activity. However, total wireless service revenue in the second quarter of 2023 increased by 3.8% year over year, driven primarily by pricing actions and a growing contribution from fixed wireless offerings.
Verizon's net income for the second quarter of 2023 was $4.8 billion, a 10.3% decrease compared to the same period in 2022. Nevertheless, consolidated adjusted EBITDA1 reached $12.0 billion, showing an increase of 0.8% year over year.During the first half of 2023, Verizon's cash flow from operations totaled $18.0 billion, an increase from $17.7 billion in the first half of 2022. The company's unsecured debt decreased, and its net unsecured debt balance improved, indicating positive financial developments.
Verizon Consumer results for the second quarter of 2023 included total revenue of $24.6 billion, with a decrease of 4.1% year over year. The growth in service and other revenue was offset by wireless equipment revenue declines. However, wireless service revenue increased by 3.5% year over year, driven by growth in retail postpaid Average Revenue Per Account (ARPA) and pricing actions.Verizon Business results for the second quarter of 2023 showed total revenue of $7.5 billion, with a decrease of 1.9% year over year. Business wireless service revenue increased by 5.3% year over year, driven by strong net additions and pricing actions.
Overall, Verizon's second-quarter results reflect the company's commitment to improving its operational performance and delivering value to its customers. The positive growth in wireless service revenue and cash flow sets a promising trajectory for the company in the second half of the year.