Sunday, July 26, 2020

Verizon's Q2 revenue dips 5% to $30.4 billion due to COVID

Citing significant declines in wireless equipment revenue in its consumer and business segments, Verizon reported total consolidated operating revenues in second-quarter 2020 of $30.4 billion, down 5.1 percent from second-quarter 2019. The decline was attributed to stores being closed due to the COVID-19 pandemic.

The company delivered $1.13 in earnings per share (EPS), compared with $0.95 in 2Q 2019; adjusted EPS (non-GAAP), excluding special items, of $1.18, compared with $1.23 in 2Q 2019.

Capital expenditures in first-half 2020 were $9.9 billion.

Some highlights:

  • Consumer wireless service revenues were $13.1 billion in second-quarter 2020, a 2.7 percent decrease year over year, and include impacts related to reduced roaming, usage, and waived fees, primarily due to COVID-19.
  • Total retail postpaid churn was 0.69 percent in second-quarter 2020, and retail postpaid phone churn was 0.51 percent.
  • Consumer reported 10,000 Fios Internet net additions as Fios installations were limited during the quarter due to temporary restrictions put in place on work inside customers' homes. Consumer reported 81,000 Fios Video net losses in second-quarter 2020, reflecting the ongoing shift from traditional linear video to over-the-top offerings.
  • Business reported 280,000 wireless retail postpaid net additions in second-quarter 2020. This consisted of 76,000 phone net additions, 61,000 tablet net additions, and 143,000 other connected device additions.
  • Total retail postpaid churn was 1.12 percent in second-quarter 2020, and retail postpaid phone churn was 0.90 percent. 
  • Total Verizon Media revenues were $1.4 billion, down 24.5 percent year over year, primarily as a result of COVID-19 related impacts.