- Verizon Communications Inc VZ reported a first-quarter FY23 sales decline of 1.9% year-on-year to $32.9 billion, missing the consensus of $33.6 billion.
- Adjusted EPS of $1.20 was in line with the consensus.
- Total wireless service revenue was $18.9 billion, up 3% Y/Y, reflecting the company's ownership of TracFone, premium Unlimited strategy, and pricing actions. Postpaid phone net losses were 127,000, and retail postpaid net additions were 633,000.
- The quarter marked 437,000 total broadband net additions reflecting strong demand for fixed wireless and Fios products.
- Total Verizon Business revenues were $7.5 billion, down by 2.8% Y/Y. Total Verizon Consumer revenue declined by 1.7% Y/Y to $24.9 billion.
- Consumer wireless retail postpaid churn was 1.05%, and wireless retail postpaid phone churn was 0.84%.
- Verizon Consumer clocked wireless retail postpaid phone net losses of 263,000. Verizon Consumer had fixed wireless net additions of 256,000.
- The consumer segment EBITDA margin was flattish at 41.5%, while the business segment EBITDA margin declined by 50 bps to 22%.
- Adjusted EBITDA of $11.9 billion was down 1.1% Y/Y.
- "Last month, we announced that our 5G Ultra Wideband now reaches more than 200 million people as we continue to undergo the most aggressive network deployment in our company's history," said Verizon Chairman and CEO Hans Vestberg.
- FY23 Outlook: Verizon reiterates wireless service revenue growth of 2.5% - 4.5%.
- Verizon reiterates adjusted EPS of $4.55 - $4.85, below the consensus of $4.70.
- Price action: VZ shares traded lower by 1.40% at $36.58 in premarket on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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