Verizon Communications IncVZ reported a flat second-quarter FY22 sales growth year-on-year to $33.79 billion, beating the consensus of $33.77 billion. Adjusted EPS of $1.31 missed the consensus of $1.32.
Total wireless service revenue was $18.4 billion, up 9.1% Y/Y, reflecting the company’s ownership of TracFone, further progress on its premium Unlimited strategy, and substantial Business volumes. Service and other revenue were down 3.9%due to revenues lost from Verizon Media Group.
The quarter marked 268,000 total broadband net additions.
Total Verizon Business revenues were $7.6 billion, down 1.8% Y/Y. Total Verizon Consumer revenue grew 9.1% Y/Y to $25.6 billion. Consumer wireless service revenues rose 10.5% Y/Y.
Consumer wireless retail postpaid churn was 0.93%, and wireless retail postpaid phone churn was 0.75%. The competitive dynamics drove wireless retail postpaid phone net losses of 215,000 due to a decline in gross additions. Verizon Consumer had fixed wireless net additions of 168,000.
The consumer segment EBITDA margin was 40.5% versus 44.3% a year earlier.
The business segment EBITDA margin was 22.9% versus 24.1% a year ago.
Adjusted EBITDA of $11.9 billion was down 2.6% Y/Y.
Chairman and CEO Hans Vestberg said, “With our network-as-a-service foundation, our new consumer mobility plans, and recent pricing actions, we are being deliberate in our decisions to improve our profitable growth opportunities today and into the future.”
Outlook: Verizon cut the outlook for FY22 revenue growth guidance. It expects FY22 reported wireless service revenue growth of 8.5% – 9.5%, down from the previously guided range of 9% – 10%.
Verizon sees service and other revenue growth of (1)% – 0, down from prior guidance of 0%.
Verizon sees FY22 adjusted EPS as $5.10 – $5.25, down from the previously guided range of $5.40 – $5.55.
Price action: VZ shares traded lower by4.53% at $45.50 in premarket on the last check Friday.
