Verizon(US:VZ)2025-07-25 13:47Financial Performance - Verizon Consumer Group's operating revenues for Q2 2025 reached $26.6 billion, a 6.9% increase from $24.9 billion in Q2 2024[166] - Verizon Business Group's operating revenues for Q2 2025 totaled $7.3 billion, reflecting a slight decrease of 0.3% compared to $7.3 billion in Q2 2024[168] - Consolidated operating revenues for the first half of 2025 were $67.99 billion, up 3.4% from $65.78 billion in the same period of 2024[179] - The Consumer segment's operating revenues for the first half of 2025 were $52.3 billion, a 4.6% increase from $50.0 billion in the same period of 2024[166] - The Business segment's operating revenues for the first half of 2025 were $14.6 billion, down 0.8% from $14.7 billion in the same period of 2024[168] - Consolidated net income for the three months ended June 30, 2025, was $5,121 million, an increase of $419 million or 8.9% from $4,702 million in 2024[201] - Consolidated EBITDA for the three months ended June 30, 2025, was $12,883 million, up from $12,215 million in 2024, representing an increase of $668 million or 5.5%[201] - Consolidated adjusted EBITDA for the three months ended June 30, 2025, was $12,807 million, an increase of $506 million or 4.1% from $12,301 million in 2024[201] - Total operating revenues increased by 6.9% to $26,648 million for the three months ended June 30, 2025, compared to $24,927 million in the same period of 2024[229] Operating Expenses - Consolidated operating expenses for the first half of 2025 were $51.84 billion, an increase of 2.8% from $50.44 billion in the same period of 2024[180] - Total operating expenses rose to $19,005 million for the three months ended June 30, 2025, an increase of 9.7% compared to 2024, and $37,199 million for the six months, up 6.3%[234] - Total operating expenses for the three months ended June 30, 2025, were $6,637 million, a decrease of $163 million (2.4%) compared to the same period in 2024[251] Capital Expenditures - Capital expenditures for the first half of 2025 amounted to $8.0 billion, with full-year expectations ranging from $17.5 billion to $18.5 billion[170] - Capital expenditures for the six months ended June 30, 2025, were $8.0 billion, a decrease of $118 million compared to $8.1 billion in 2024[271] Wireless Services - Wireless retail connections increased significantly, driven by a higher volume of wireless devices sold, with upgrades increasing by 31% and 14% for the three and six months ended June 30, 2025, respectively[188] - Wireless service revenue rose by 2.3% to $17,369 million for the three months ended June 30, 2025, compared to $16,985 million in the same period of 2024[229] - Wireless retail postpaid accounts decreased by 0.7% to 32,550,000 as of June 30, 2025, compared to 32,769,000 in the same period of 2024[229] - Wireless retail postpaid ARPA increased by 2.3% to $147.50 for the three months ended June 30, 2025, compared to $144.15 in the same period of 2024[229] - Wireless retail churn rate was 1.58% for the three months ended June 30, 2025, unchanged from the same period in 2024[229] - Wireless equipment revenue increased by 29.6% to $5,369 million for the three months ended June 30, 2025, compared to $4,143 million in the same period of 2024[229] Broadband Services - FWA broadband connections increased by 34.2% to 3,077,000 as of June 30, 2025, compared to 2,292,000 in the same period of 2024[229] - Total broadband connections grew by 9.4% to 10,425,000 as of June 30, 2025, compared to 9,530,000 in the same period of 2024[229] - Total broadband net additions were 181,000 for the three months ended June 30, 2025, a decrease of 21.6% compared to 231,000 in the same period of 2024[229] - Fios revenue increased by 1.0% to $2,924 million for the three months ended June 30, 2025, compared to $2,896 million in the same period of 2024[229] Tax and Income - Verizon anticipates a decrease in its 2025 cash income tax liability due to the One Big Beautiful Bill Act, estimating an increase in deferred tax liability by $1.5 billion to $2.0 billion by year-end 2025[174] - Provision for income taxes increased by $156 million or 11.7% to $1,488 million for the three months ended June 30, 2025, compared to $1,332 million in 2024[192] - The effective income tax rate increased to 22.5% for the three months ended June 30, 2025, compared to 22.1% in 2024, primarily due to higher income before taxes[192] Debt and Cash Flow - Average debt outstanding was $144,695 million for the three months ended June 30, 2025, compared to $151,410 million in 2024, indicating a decrease in debt levels[191] - Total debt as of June 30, 2025, was $146.0 billion, an increase from $144.0 billion at December 31, 2024[277] - Free cash flow for the six months ended June 30, 2025, was $8.804 billion, an increase of $306 million from $8.498 billion in the same period of 2024[290] - Net cash provided by operating activities increased by $188 million to $16,757 million for the six months ended June 30, 2025, compared to $16,569 million in 2024[266] Acquisitions and Investments - Verizon entered into a license purchase agreement to acquire spectrum licenses from UScellular for total consideration of $1.0 billion[304] - Verizon's acquisition of Frontier Communications is structured as a merger with a per share consideration of $38.50, subject to regulatory approvals[305] Risks and Controls - The company faces risks including high levels of indebtedness and significant litigation expenses, which could impact financial performance[313] - The company is involved in various litigation and regulatory proceedings but does not believe any are material as of the report date[314] - The Chief Executive Officer and Chief Financial Officer concluded that the registrant's disclosure controls and procedures were effective as of June 30, 2025[309] - There were no changes in the Company's internal control over financial reporting during the second quarter of 2025 that materially affected internal controls[312] Renewable Energy - Verizon has 28 renewable energy purchase agreements totaling approximately 3.7 gigawatts of anticipated renewable energy capacity[291]