EX-99 2 a2022q2exhibit99.htm EX-99 Document

Exhibit 99
vzlogoa58a.jpg

News Release

FOR IMMEDIATE RELEASE
Media contacts:
July 22, 2022Kim Ancin
908-559-3227
kimberly.ancin@verizon.com
Eric Wilkens
201-572-9317
eric.wilkens@verizon.com


Verizon reports 2Q and first-half 2022 results

2Q 2022 highlights

Consolidated:
•$1.24 in earnings per share (EPS), compared with $1.40 in second-quarter 2021; adjusted EPS1, excluding special items, of $1.31 compared with $1.39 in second-quarter 20212.
•Total revenue of $33.8 billion, relatively flat from second-quarter 2021.
•Net income of $5.3 billion, a decrease of 10.7 percent from second-quarter 2021, and adjusted EBITDA1 of $11.9 billion, down 2.6 percent year over year.

Total Broadband:
•Total broadband net additions of 268,000, including 256,000 fixed wireless net additions. Total broadband net additions increased 39,000 from first-quarter 2022, and fixed wireless net additions increased 62,000 from first-quarter 2022.
•36,000 Fios Internet net additions.

Total Wireless:
•Total wireless service revenue of $18.4 billion, a 9.1 percent increase year over year.
•Total retail postpaid churn of 1.03 percent, and retail postpaid phone churn of 0.81 percent.
•Postpaid phone net additions of 12,000.

NEW YORK - Verizon Communications Inc. (NYSE, Nasdaq: VZ) today reported its second-quarter and half-year 2022 results.
"As the market leader, in a very competitive industry, we are determined to improve our operational and financial performance for the second half of the year,” said Verizon Chairman and CEO Hans Vestberg. "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."
For second-quarter 2022, Verizon reported EPS of $1.24, compared with $1.40 in second-quarter 2021. On an adjusted basis1, excluding special items, EPS was $1.31 in second-quarter 2022, compared with adjusted EPS1 of $1.39 in second-quarter 20212.
Second-quarter 2022 EPS included a pre-tax loss from special items of approximately $435 million, including a net pre-tax charge of $198 million related to a mark-to-market adjustment for pension liabilities. In addition, the impact of amortization of intangible assets related to TracFone and other acquisitions was $237 million.
"Although recent performance did not meet our expectations, we remain confident in our long-term strategy,” said Verizon Chief Financial Officer Matt Ellis. “We believe that our assets position us well to generate long-term shareholder value."
Consolidated results
•Total consolidated operating revenue in second-quarter 2022 of $33.8 billion, relatively flat from second-quarter 2021. Wireless service revenue growth and higher wireless equipment revenue were offset primarily by wireline declines and the net impact of merger and acquisition (M&A) activity in 2021.
•Total wireless service revenue growth of 9.1 percent, reflecting the company's ownership of TracFone, further progress on its premium Unlimited strategy and its strong Business volumes.
•Service and other revenue declined 3.9 percent year over year in second-quarter 2022, as the revenue lost from Verizon Media more than offset net incremental revenue from the company's acquisition of TracFone.
•Net income of $5.3 billion, a decrease of 10.7 percent from second-quarter 2021, and adjusted EBITDA1 of $11.9 billion, a decline of 2.6 percent year over year, due to the divestiture of Verizon Media, higher device subsidies and promotional spending associated with increased wireless activations, wireline revenue declines and inflationary cost pressures.
•First-half 2022 cash flow from operating activities totaled $17.7 billion, compared with $20.4 billion in first-half 2021. The reduction was primarily due to working capital impacts from higher device activations, and increased inventory levels as part of the company's supply chain management in the current environment.

•Capital expenditures in first-half 2022 were $10.5 billion, including C-Band spending of $2.8 billion.

•Verizon's unsecured debt as of the end of second-quarter 2022 decreased by $4.8 billion sequentially to $132.5 billion. The company's net unsecured debt1 balance decreased sequentially by $5.0 billion to $130.6 billion, and its net unsecured debt to adjusted EBITDA ratio1 at quarter-end was approximately 2.7 times.
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Verizon Consumer results
•Total Verizon Consumer revenue was $25.6 billion, an increase of 9.1 percent year over year, driven by the inclusion of TracFone, higher equipment revenue and core wireless service revenue growth.

•Wireless service revenue increased 10.5 percent year over year, driven by the inclusion of TracFone and growth in postpaid Average Revenue Per Account (ARPA).

•Consumer wireless retail postpaid churn was 0.93 percent in second-quarter 2022, and wireless retail postpaid phone churn was 0.75 percent.

•Consumer reported 168,000 fixed wireless net additions and 30,000 Fios Internet net additions in second-quarter 2022. Consumer Fios revenue was $2.9 billion in second-quarter 2022, flat year over year.
•In second-quarter 2022, Consumer reported 215,000 wireless retail postpaid phone net losses, due to a year over year increase in churn and a year over year decline in phone gross additions. Consumer ended second-quarter 2022 with nearly half of its wireless phone customers having 5G-capable devices.
•In second-quarter 2022, Consumer operating income was $7.2 billion, a decrease of 4.6 percent year over year, and segment operating income margin was 27.9 percent, a decrease from 31.9 percent in second-quarter 2021. Segment EBITDA1 in second-quarter 2022 was $10.4 billion, a decrease of 0.3 percent year over year. A higher contribution from TracFone was more than offset primarily by higher promotional activity. Segment EBITDA margin1 was 40.5 percent, a decrease from 44.3 percent in second-quarter 2021.

Verizon Business results
•Total Verizon Business revenue was $7.6 billion in second-quarter 2022, down 1.8 percent year over year.
•Business wireless service revenue was $3.2 billion, an increase of 3.0 percent year over year. This increase was driven by momentum in Small and Medium Business, and the best performance in Global Enterprise since first-quarter 2020.
•Business reported 430,000 wireless retail postpaid net additions in second-quarter 2022, including 227,000 postpaid phone net additions. This was the third consecutive quarter that Business reported more than 200,000 postpaid phone net additions. Phone gross additions in Business increased nearly 30 percent year over year.
•Wireless retail postpaid churn was 1.37 percent in second-quarter 2022, and wireless retail postpaid phone churn was 1.07 percent.
•Business reported 88,000 fixed wireless net additions in second-quarter 2022.
•In second-quarter 2022, Verizon Business operating income was $675 million, a decrease of 21.1 percent year over year, and segment operating income margin was 8.9 percent, a decrease from 11.0 percent in second-quarter 2021. Segment EBITDA1 was $1.7 billion in second-quarter 2022, a decrease of 6.5 percent year over year. In addition to Wireline revenue declines, Business experienced elevated device subsidies related to wireless activations in the quarter. Segment EBITDA margin1 was 22.9 percent, a decrease from 24.1 percent in second-quarter 2021.
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Outlook and guidance
Verizon is updating financial guidance for full-year 2022. The company now expects the following:
•Reported wireless service revenue growth of 8.5 to 9.5 percent, an update from prior guidance for reported wireless service revenue growth of 9 to 10 percent.
•Reported service and other revenue growth of minus 1 percent to flat, an update from prior guidance for reported service and other revenue growth to be approximately flat.
•Adjusted EBITDA1 growth of minus 1.5 percent to flat, an update from prior guidance for adjusted EBITDA1 growth of 2 to 3 percent.
•Adjusted EPS1 of $5.10 to $5.25, an update from prior guidance for adjusted EPS1 of $5.40 to $5.55.
Additionally, Verizon continues to expect the following results for full-year 2022:
•Adjusted effective income tax rate1 in the range of 23 percent to 25 percent.
•Capital spending, excluding C-Band, in the range of $16.5 billion to $17.5 billion. Additional expenditures related to the deployment of the company's C-Band 5G network are expected to be in the range of $5 billion to $6 billion.
1Non-GAAP financial measure. See the accompanying schedules and www.verizon.com/about/investors for reconciliations of non-GAAP financial measures cited in this document to most directly comparable financial measures under generally accepted accounting principles (GAAP).

2Adjusted EPS for the prior year period has been reclassified to conform to current period presentation.

Verizon Communications Inc. (NYSE, Nasdaq: VZ) was formed on June 30, 2000 and is one of the world’s leading providers of technology and communications services. Headquartered in New York City and with a presence around the world, Verizon generated revenues of $133.6 billion in 2021. The company offers data, video and voice services and solutions on its award-winning networks and platforms, delivering on customers’ demand for mobility, reliable network connectivity, security and control.

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VERIZON’S ONLINE MEDIA CENTER: News releases, stories, media contacts and other resources are available at verizon.com/news. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.

Forward-looking statements
In this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words “anticipates,” “believes,” “estimates,” “expects,” “hopes,” “forecasts,” “plans” or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the “SEC”), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: cyber attacks impacting our networks or systems and any resulting financial or reputational impact; damage to our infrastructure or disruption of our operations from natural disasters, extreme weather conditions or terrorist attacks and any resulting financial or reputational impact; the impact of public health crises, including the COVID-19 pandemic, on our operations, our employees and the ways in which our customers use our networks and other products and services; disruption of our key suppliers’ or vendors' provisioning of products or services, including as a result of geopolitical factors, the COVID-19 pandemic or the potential impacts of
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global climate change; material adverse changes in labor matters and any resulting financial or operational impact; the effects of competition in the markets in which we operate; failure to take advantage of developments in technology and address changes in consumer demand; performance issues or delays in the deployment of our 5G network resulting in significant costs or a reduction in the anticipated benefits of the enhancement to our networks; the inability to implement our business strategy; adverse conditions in the U.S. and international economies, including inflation in the markets in which we operate; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; our high level of indebtedness; significant litigation and any resulting material expenses incurred in defending against lawsuits or paying awards or settlements; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or treaties, or in their interpretation; and changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings.

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Verizon Communications Inc.


Condensed Consolidated Statements of Income
(dollars in millions, except per share amounts)
Unaudited3 Mos. Ended 6/30/223 Mos. Ended 6/30/21%
Change		6 Mos. Ended 6/30/226 Mos. Ended 6/30/21%
Change
Operating Revenues
Service revenues and other$27,115 $28,221 (3.9)$54,333 $56,144 (3.2)
Wireless equipment revenues6,674 5,543 20.413,010 10,487 24.1
Total Operating Revenues33,789 33,764 0.167,343 66,631 1.1
Operating Expenses
Cost of services6,932 8,324 (16.7)14,159 16,344 (13.4)
Cost of wireless equipment7,488 5,931 26.314,611 11,433 27.8
Selling, general and administrative expense7,496 7,324 2.314,668 14,725 (0.4)
Depreciation and amortization expense4,321 4,020 7.58,557 8,194 4.4
Total Operating Expenses26,237 25,599 2.551,995 50,696 2.6
Operating Income7,552 8,165 (7.5)15,348 15,935 (3.7)
Equity in earnings of unconsolidated businesses41 1 *38 9 *
Other income (expense), net49 502 (90.2)(875)903 *
Interest expense(785)(844)(7.0)(1,571)(1,945)(19.2)
Income Before Provision For Income Taxes6,857 7,824 (12.4)12,940 14,902 (13.2)
Provision for income taxes(1,542)(1,875)(17.8)(2,914)(3,575)(18.5)
Net Income$5,315 $5,949 (10.7)$10,026 $11,327 (11.5)
Net income attributable to noncontrolling interests$116 $149 (22.1)$247 $282 (12.4)
Net income attributable to Verizon5,199 5,800 (10.4)9,779 11,045 (11.5)
Net Income$5,315 $5,949 (10.7)$10,026 $11,327 (11.5)
Basic Earnings Per Common Share
Net income attributable to Verizon$1.24 $1.40 (11.4)$2.33 $2.67 (12.7)
Weighted-average shares outstanding (in millions)4,201 4,141 4,201 4,141 
Diluted Earnings Per Common Share (1)
Net income attributable to Verizon$1.24 $1.40 (11.4)$2.33 $2.67 (12.7)
Weighted-average shares outstanding (in millions)4,202 4,143 4,202 4,143 
Footnotes:
(1)Diluted Earnings per Common Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represents the only potential dilution.
*Not meaningful

Verizon Communications Inc.


Condensed Consolidated Balance Sheets

(dollars in millions)
Unaudited6/30/2212/31/21$ Change
Assets
Current assets
Cash and cash equivalents$1,857 $2,921 $(1,064)
Accounts receivable24,740 24,742 (2)
Less Allowance for credit losses831 896 (65)
Accounts receivable, net23,909 23,846 63 
Inventories3,646 3,055 591 
Prepaid expenses and other8,087 6,906 1,181 
Total current assets37,499 36,728 771 
Property, plant and equipment296,700 289,897 6,803 
Less Accumulated depreciation195,390 190,201 5,189 
Property, plant and equipment, net101,310 99,696 1,614 
Investments in unconsolidated businesses1,113 1,061 52 
Wireless licenses148,724 147,619 1,105 
Goodwill28,638 28,603 35 
Other intangible assets, net11,286 11,677 (391)
Operating lease right-of-use assets27,098 27,883 (785)
Other assets14,479 13,329 1,150 
Total assets$370,147 $366,596 $3,551 
Liabilities and Equity
Current liabilities
Debt maturing within one year$12,873 $7,443 $5,430 
Accounts payable and accrued liabilities20,956 24,833 (3,877)
Current operating lease liabilities3,912 3,859 53 
Other current liabilities11,483 11,025 458 
Total current liabilities49,224 47,160 2,064 
Long-term debt136,184 143,425 (7,241)
Employee benefit obligations15,125 15,410 (285)
Deferred income taxes42,154 40,685 1,469 
Non-current operating lease liabilities22,597 23,203 (606)
Other liabilities17,506 13,513 3,993 
Total long-term liabilities233,566 236,236 (2,670)
Equity
Common stock429 429 — 
Additional paid in capital13,872 13,861 11 
Retained earnings76,401 71,993 4,408 
Accumulated other comprehensive loss(1,320)(927)(393)
Common stock in treasury, at cost(4,020)(4,104)84 
Deferred compensation – employee stock ownership plans and other654 538 116 
Noncontrolling interests1,341 1,410 (69)
Total equity87,357 83,200 4,157 
Total liabilities and equity$370,147 $366,596 $3,551 







Verizon Communications Inc.


Consolidated - Selected Financial and Operating Statistics

(dollars in millions, except per share amounts)
Unaudited6/30/2212/31/21
Total debt$149,057 $150,868 
Net unsecured debt$130,628 $133,745 
Net unsecured debt / Consolidated Adjusted EBITDA(1)
2.7x2.8x
Common shares outstanding end of period (in millions)4,200 4,198 
Total employees (‘000)119.4 118.4 
Quarterly cash dividends declared per common share$0.6400 $0.6400 
Footnotes: 
(1)Consolidated Adjusted EBITDA excludes the effects of non-operational items and special items.

Verizon Communications Inc.


Condensed Consolidated Statements of Cash Flows
(dollars in millions)
Unaudited6 Mos. Ended 6/30/226 Mos. Ended 6/30/21$ Change
Cash Flows from Operating Activities
Net Income$10,026 $11,327 $(1,301)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense8,557 8,194 363 
Employee retirement benefits(121)(1,819)1,698 
Deferred income taxes1,514 1,978 (464)
Provision for expected credit losses665 409 256 
Equity in losses (earnings) of unconsolidated businesses, net of dividends received(18)25 (43)
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses
(1,959)82 (2,041)
Other, net(999)242 (1,241)
Net cash provided by operating activities17,665 20,438 (2,773)
Cash Flows from Investing Activities
Capital expenditures (including capitalized software)(10,491)(8,716)(1,775)
Cash received (paid) related to acquisitions of businesses, net of cash acquired247 (458)705 
Acquisitions of wireless licenses(2,275)(45,278)43,003 
Other, net(2,137)51 (2,188)
Net cash used in investing activities(14,656)(54,401)39,745 
Cash Flows from Financing Activities
Proceeds from long-term borrowings3,617 31,444 (27,827)
Proceeds from asset-backed long-term borrowings5,053 2,695 2,358 
Repayments of long-term borrowings and finance lease obligations(7,405)(7,559)154 
Repayments of asset-backed long-term borrowings(2,695)(2,993)298 
Dividends paid(5,378)(5,198)(180)
Other, net2,971 (1,839)4,810 
Net cash provided by (used in) financing activities(3,837)16,550 (20,387)
Decrease in cash, cash equivalents and restricted cash(828)(17,413)16,585 
Cash, cash equivalents and restricted cash, beginning of period4,161 23,498 (19,337)
Cash, cash equivalents and restricted cash, end of period$3,333 $6,085 $(2,752)


Verizon Communications Inc.


Consumer - Selected Financial Results
(dollars in millions)
Unaudited3 Mos. Ended 6/30/223 Mos. Ended 6/30/21%
Change		6 Mos. Ended 6/30/226 Mos. Ended 6/30/21%
Change
Operating Revenues
Service$18,149 $16,709 8.6$36,275 $33,278 9.0
Wireless equipment5,708 4,739 20.411,082 8,931 24.1
Other1,747 2,029 (13.9)3,539 4,066 (13.0)
Total Operating Revenues25,604 23,477 9.150,896 46,275 10.0
Operating Expenses
Cost of services4,284 4,181 2.58,730 8,181 6.7
Cost of wireless equipment6,221 4,854 28.212,034 9,246 30.2
Selling, general and administrative expense4,738 4,045 17.19,290 8,071 15.1
Depreciation and amortization expense3,211 2,900 10.76,373 5,761 10.6
Total Operating Expenses18,454 15,980 15.536,427 31,259 16.5
Operating Income$7,150 $7,497 (4.6)$14,469 $15,016 (3.6)
Operating Income Margin27.9 %31.9 %28.4 %32.4 %
Segment EBITDA$10,361 $10,397 (0.3)$20,842 $20,777 0.3
Segment EBITDA Margin40.5 %44.3 %41.0 %44.9 %
Footnotes:
The segment financial results and metrics above exclude the effects of special items (other than the effects of acquisition-related intangible asset amortization), which the Company’s chief operating decision maker does not consider in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.
 

Verizon Communications Inc.


Consumer - Selected Operating Statistics
Unaudited6/30/226/30/21% Change
Connections (‘000):
Wireless retail postpaid 91,475 90,514 1.1
Wireless retail prepaid (1) (2)
23,138 4,075 *
Total wireless retail 114,613 94,589 21.2
Wireless retail postpaid phones75,197 75,118 0.1
Fios video 3,409 3,710 (8.1)
Fios internet6,626 6,392 3.7
Fixed wireless access (FWA) broadband384 37 *
Wireline broadband 6,938 6,783 2.3
Total broadband7,322 6,820 7.4
Unaudited3 Mos. Ended 6/30/223 Mos. Ended 6/30/21%
Change		6 Mos. Ended 6/30/226 Mos. Ended 6/30/21%
Change
Gross Additions (‘000):
Wireless retail postpaid 2,622 2,592 1.25,103 4,899 4.2
Net Additions Detail (‘000) :
Wireless retail postpaid (3)
84 350 (76.0)(42)24 *
Wireless retail prepaid (1) (3) (4)
(229)18 *(309)37 *
Total wireless retail (3)
(145)368 *(351)61 *
Wireless retail postpaid phones (3)
(215)197 *(507)(28)*
Fios video (86)(62)(38.7)(164)(144)(13.9)
Fios internet30 92 (67.4)85 190 (55.3)
FWA broadband (3)
168 11 *280 23 *
Wireline broadband 13 70 (81.4)50 136 (63.2)
Total broadband (3)
181 81 *330 159 *
Churn Rate:
Wireless retail postpaid0.93 %0.83 %0.94 %0.90 %
Wireless retail postpaid phones0.75 %0.65 %0.76 %0.71 %
Wireless retail prepaid (1) (4)
3.90 %4.12 %3.79 %4.17 %
Wireless retail1.53 %0.97 %1.52 %1.04 %
Revenue Statistics (in millions):
Wireless service revenue$15,236 $13,794 10.5$30,453 $27,478 10.8
Fios revenues$2,895 $2,895 —$5,806 $5,755 0.9

Verizon Communications Inc.


Consumer - Selected Operating Statistics (continued)
Unaudited3 Mos. Ended 6/30/223 Mos. Ended 6/30/21%
Change		6 Mos. Ended 6/30/226 Mos. Ended 6/30/21%
Change
Other Wireless Statistics:
Wireless retail postpaid ARPA (5)
$124.16 $121.24 2.4$124.06 $121.05 2.5
Wireless retail postpaid upgrade rate
5.6 %4.9 %
Wireless retail postpaid accounts (‘000) (6)
33,386 33,606 (0.7)
Wireless retail postpaid connections per account (6)
2.74 2.69 1.9
Wireless retail prepaid ARPU (1) (7)
$31.26 $35.70 (12.4)$31.07 $35.68 (12.9)
Footnotes:
(1) Acquisition of TracFone Wireless, Inc. was completed on November 23, 2021.
(2) Reflects a decline in the customer base for wireless retail prepaid connections of approximately 402,000 as of June 30, 2022, resulting from the shutdown of a competitor's 3G network.
(3) Connection net additions include certain adjustments.
(4) Excludes the impact from the shutdown of a competitor's 3G network resulting in approximately 402,000 retail prepaid disconnects in the second quarter of 2022.
(5) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
(6) Statistics presented as of end of period.
(7) Wireless retail prepaid ARPU - average service revenue per unit from retail prepaid connections.
Certain intersegment transactions with corporate entities have not been eliminated.
* Not meaningful


Verizon Communications Inc.


Business - Selected Financial Results
(dollars in millions)
Unaudited3 Mos. Ended 6/30/223 Mos. Ended 6/30/21%
Change		6 Mos. Ended 6/30/226 Mos. Ended 6/30/21%
Change
Operating Revenues
Small and Medium Business$3,092 $2,895 6.8$6,133 $5,725 7.1
Global Enterprise2,401 2,583 (7.0)4,862 5,142 (5.4)
Public Sector and Other1,504 1,614 (6.8)3,056 3,260 (6.3)
Wholesale629 670 (6.1)1,284 1,416 (9.3)
Total Operating Revenues7,626 7,762 (1.8)15,335 15,543 (1.3)
Operating Expenses
Cost of services2,559 2,729 (6.2)5,165 5,419 (4.7)
Cost of wireless equipment1,268 1,076 17.82,578 2,187 17.9
Selling, general and administrative expense2,050 2,086 (1.7)4,109 4,154 (1.1)
Depreciation and amortization expense1,074 1,015 5.82,135 2,028 5.3
Total Operating Expenses6,951 6,906 0.713,987 13,788 1.4
Operating Income$675 $856 (21.1)$1,348 $1,755 (23.2)
Operating Income Margin8.9 %11.0 %8.8 %11.3 %
Segment EBITDA$1,749 $1,871 (6.5)$3,483 $3,783 (7.9)
Segment EBITDA Margin22.9 %24.1 %22.7 %24.3 %
Footnotes:
The segment financial results and metrics above exclude the effects of special items (other than the effects of acquisition-related intangible asset amortization), which the Company’s chief operating decision maker does not consider in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.

Verizon Communications Inc.


Business - Selected Operating Statistics
Unaudited6/30/226/30/2021%
Change
Connections (‘000):
Wireless retail postpaid 28,208 26,740 5.5
Wireless retail postpaid phones17,586 16,708 5.3
Fios video 70 72 (2.8)
Fios internet 367 346 6.1
FWA broadband316 43 *
Wireline broadband 474 480 (1.3)
Total broadband790 523 51.1
Unaudited3 Mos. Ended 6/30/223 Mos. Ended 6/30/21%
Change		6 Mos. Ended 6/30/226 Mos. Ended 6/30/21%
Change
Gross Additions (‘000):
Wireless retail postpaid1,582 1,220 29.73,084 2,361 30.6
Net Additions Detail (‘000):
Wireless retail postpaid (1)
430 178 *825 334 *
Wireless retail postpaid phones (1)
227 78 *483 125 *
Fios video(1)(1)—(1)(1)—
Fios internet6 7 (14.3)11 11 —
FWA broadband (1)
88 12 *170 17 *
Wireline broadband (1)
(1)— *(3)(2)(50.0)
Total broadband (1)
87 12 *167 15 *
Churn Rate:
Wireless retail postpaid1.37 %1.30 %1.35 %1.27 %
Wireless retail postpaid phones1.07 %1.07 %1.07 %1.04 %
Revenue Statistics (in millions):
Wireless service revenue$3,182 $3,090 3.0$6,307 $6,150 2.6
Fios revenues$298 $281 6.0$593 $557 6.5
Other Operating Statistics:
Wireless retail postpaid upgrade rate3.1 %3.4 %
Footnotes:
(1) Connection net additions include certain adjustments.
Certain intersegment transactions with corporate entities have not been eliminated.
*Not meaningful


Verizon Communications Inc.


Supplemental Information - Total Wireless Operating and Financial Statistics

The following supplemental schedule contains certain financial and operating metrics which reflect an aggregation of our Consumer and Business segments’ wireless results.
Unaudited6/30/226/30/21% Change
Connections (‘000)
Retail postpaid119,683 117,254 2.1
Retail prepaid (1) (2)
23,138 4,075 *
Total retail142,821 121,329 17.7
Retail postpaid phones92,783 91,826 1.0
Unaudited3 Mos. Ended 6/30/223 Mos. Ended 6/30/21%
Change		6 Mos. Ended 6/30/226 Mos. Ended 6/30/21%
Change
Net Additions Detail (‘000) (3)
Retail postpaid phones12 275 (95.6)(24)97 *
Retail postpaid514 528 (2.7)783 358 *
Retail prepaid (1) (4)
(229)18 *(309)37 *
Total retail285 546 (47.8)474 395 20.0
Account Statistics
Retail postpaid accounts (‘000) (5)
35,132 35,223 (0.3)
Retail postpaid connections per account (5)
3.41 3.33 2.4
Retail postpaid ARPA (6)
$145.50 $142.23 2.3$145.18 $141.98 2.3
Retail prepaid ARPU (1) (7)
$31.26 $35.70 (12.4)$31.07 $35.68 (12.9)
Churn Detail
Retail postpaid phone0.81 %0.72 %0.82 %0.77 %
Retail postpaid1.03 %0.94 %1.03 %0.98 %
Retail prepaid (1) (4)
3.90 %4.12 %3.79 %4.17 %
Retail1.50 %1.04 %1.49 %1.09 %
Retail Postpaid Connection Statistics
Upgrade rate5.0 %4.6 %
Revenue Statistics (in millions) (8)
Wireless service$18,418 $16,884 9.1$36,760 $33,628 9.3
Wireless equipment6,674 5,543 20.413,010 10,487 24.1
Wireless other1,800 2,043 (11.9)3,618 4,086 (11.5)
Total Wireless$26,892 $24,470 9.9$53,388 $48,201 10.8
Footnotes:
(1) Acquisition of TracFone Wireless, Inc. was completed on November 23, 2021.
(2) Reflects a decline in the customer base for wireless retail prepaid connections of approximately 402,000 as of June 30, 2022, resulting from the shutdown of a competitor's 3G network.
(3) Connection net additions include certain adjustments.
(4) Excludes the impact from the shutdown of a competitor's 3G network resulting in approximately 402,000 retail prepaid disconnects in the second quarter of 2022.
(5) Statistics presented as of end of period.
(6) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
(7) Wireless retail prepaid ARPU - average service revenue per unit from retail prepaid connections.
(8) Intersegment transactions between Consumer or Business segment with corporate entities have not been eliminated.

Verizon Communications Inc.


Non-GAAP Reconciliations - Consolidated Verizon
Consolidated EBITDA and Consolidated Adjusted EBITDA
(dollars in millions)
Unaudited3 Mos. Ended 6/30/223 Mos. Ended 3/31/223 Mos. Ended 12/31/213 Mos. Ended 9/30/213 Mos. Ended 6/30/213 Mos. Ended 3/31/21
Consolidated Net Income$5,315 $4,711 $4,737 $6,554 $5,949 $5,378 
  Add:
Provision for income taxes1,542 1,372 1,407 1,820 1,875 1,700 
Interest expense785 786 739 801 844 1,101 
Depreciation and amortization expense (1)
4,321 4,236 4,051 3,961 4,020 4,174 
Consolidated EBITDA$11,963 $11,105 $10,934 $13,136 $12,688 $12,353 
  Add/(subtract):
Other (income) expense, net (2)
$(49)$924 $860 $(269)$(502)$(401)
Equity in losses (earnings) of unconsolidated businesses (3)
(41)3 (135)(1)(1)(8)
Severance charges— — 106 103 — — 
Loss on spectrum licenses— — — — — 223 
Net gain from disposition of business— — — (706)— — 
(90)927 831 (873)(503)(186)
Consolidated Adjusted EBITDA$11,873 $12,032 $11,765 $12,263 $12,185 $12,167 
Consolidated Adjusted EBITDA - Year Over Year Change(2.6)%
Footnotes:
(1)    Includes Amortization of acquisition-related intangible assets.
(2)    Includes Pension and benefits mark-to-market adjustments and Early debt redemption costs, where applicable.
(3)    Includes Net gain from disposition of assets, where applicable.    
    
Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio
(dollars in millions)
Unaudited6/30/223/31/2212/31/21
Debt maturing within one year$12,873 $13,421 $7,443 
Long-term debt136,184 139,961 143,425 
Total Debt149,057 153,382 150,868 
Less Secured debt16,572 16,102 14,202 
Unsecured Debt132,485 137,280 136,666 
Less Cash and cash equivalents1,857 1,661 2,921 
Net Unsecured Debt
$130,628 $135,619 $133,745 
Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio2.7x2.8x
Unsecured Debt - Quarter over quarter change$(4,795)
Net Unsecured Debt - Quarter over quarter change$(4,991)


Verizon Communications Inc.


Adjusted Earnings per Common Share (Adjusted EPS)
(dollars in millions, except per share amounts)
Unaudited3 Mos. Ended 6/30/223 Mos. Ended 6/30/21
Pre-taxTaxAfter-Tax Pre-taxTaxAfter-Tax 
EPS$1.24 $1.40 
Amortization of acquisition-related intangible assets$237 $(62)$175 0.04 $126 $(31)$95 0.02 
Net pension remeasurement charge (credit) 198 (51)147 0.03 (1,314)334 (980)(0.24)
Early debt redemption costs— — — — 1,132 (288)844 0.20 
$435 $(113)$322 $0.08 $(56)$15 $(41)$(0.01)
Adjusted EPS$1.31 $1.39 
Footnotes:
Adjusted EPS may not add due to rounding.
Certain amounts have been reclassified to conform to the current period presentation.



Verizon Communications Inc.
Non-GAAP Reconciliations - Segments
Segment EBITDA and Segment EBITDA Margin
Consumer
(dollars in millions)
Unaudited3 Mos. Ended 6/30/223 Mos. Ended 6/30/216 Mos. Ended 6/30/226 Mos. Ended 6/30/21
Operating Income$7,150 $7,497 $14,469 $15,016 
Add Depreciation and amortization expense3,211 2,900 6,373 5,761 
Segment EBITDA$10,361 $10,397 $20,842 $20,777 
Year over year change %(0.3)%0.3 %
Total operating revenues$25,604 $23,477 $50,896 $46,275 
Operating Income Margin27.9 %31.9 %28.4 %32.4 %
Segment EBITDA Margin40.5 %44.3 %41.0 %44.9 %
Business
(dollars in millions)
Unaudited3 Mos. Ended 6/30/223 Mos. Ended 6/30/216 Mos. Ended 6/30/226 Mos. Ended 6/30/21
Operating Income$675 $856 $1,348 $1,755 
Add Depreciation and amortization expense1,074 1,015 2,135 2,028 
Segment EBITDA$1,749 $1,871 $3,483 $3,783 
Year over year change %(6.5)%(7.9)%
Total operating revenues$7,626 $7,762 $15,335 $15,543 
Operating Income Margin8.9 %11.0 %8.8 %11.3 %
Segment EBITDA Margin22.9 %24.1 %22.7 %24.3 %