Key Points:
- Verizon grew revenue to $34.5 billion during Q2, up 5.2 percent on a year-over basis.
- Wireless service revenue upped to $20.9 billion during Q2 (+2.2%)
- Company lost 9,000 net wireless subscribers amid ongoing pressure from rival telecoms.
- Fios TV ends Q2 with 2.56 million connections (-9%), Fios Internet increases to 7.2 million connections (+2.2%).
Verizon Communications reported second-quarter earnings on Monday that exceeded Wall Street expectations, though the company continued to feel the impact of fierce wireless competition, losing more postpaid phone subscribers than analysts had forecast.
For the quarter ending June 30, Verizon posted adjusted earnings of $1.22 per share, up seven cents from the same period last year. Revenue climbed 5.2 percent year over year to $34.5 billion. Analysts polled by FactSet had expected earnings of $1.19 per share on revenue of $33.74 billion.
Wireless service revenue grew 2.2 percent to $20.9 billion, slightly underperforming analyst projections of $21.8 billion. Earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $12.8 billion, narrowly surpassing expectations of $12.7 billion.
Despite the strong financial results, Verizon said it lost 9,000 postpaid phone subscribers—those typically considered the most valuable to wireless providers. Analysts had projected a gain of 13,000. “The outlook for Verizon’s consumer wireless business has been key for investors,” analysts noted, adding that early 2025 has seen “more aggressive promotions” across the industry.
Verizon did add 278,000 fixed wireless broadband customers during the quarter, although that too fell slightly short of the 296,000 additions forecasted by analysts. Fios TV continued to shed paying subscribers as well, with Verizon ending the quarter with 2.56 million connections, down 9 percent compared to last year. Fios Internet fared slightly better, growing to 7.2 million connections, up 2.2 percent.
The company raised the low end of its full-year adjusted earnings guidance, now projecting annual earnings per share growth of between 1 percent and 3 percent, up from its prior forecast of flat to 3 percent growth.
Verizon shares rose 4.6 percent to $42.72 in morning trading Monday, extending their year-to-date gain to 2 percent. Shares could soon test resistance levels at the 50-day and 200-day moving averages.
