Verizon Reports Mixed Q3 Results, Revenue Growth in Consumer Segment

Verizon Communications Inc. reported its financial results for the third quarter and the first nine months of 2024, revealing a mixed performance in revenue and profitability compared to the previous fiscal period. For the three months ended September 30, 2024, consolidated operating revenues were $33,330 million, a slight decrease from $33,336 million in the same period of 2023. However, for the nine months ended September 30, 2024, revenues increased to $99,107 million from $98,844 million year-over-year.

Service revenues for the third quarter rose to $27,987 million, up from $27,523 million in 2023, while operating expenses surged to $27,404 million, compared to $25,863 million in the prior year. This led to a decline in operating income to $5,926 million from $7,473 million, and net income fell to $3,411 million from $4,884 million. Basic earnings per share also decreased to $0.78 from $1.13.

The Consumer segment showed resilience, with operating revenues increasing to $25,360 million for the third quarter, up from $25,257 million in 2023. The Business segment, however, experienced a decline, with revenues falling to $7,351 million from $7,527 million in the same quarter last year. Notably, wireless service revenue increased to $19,843 million, driven by pricing actions and growth in the fixed wireless access subscriber base.

Strategically, Verizon announced a significant transaction with Vertical Bridge REIT, LLC, to lease, operate, and manage over 6,000 wireless towers for approximately $2.8 billion, with an average lease term of 30 years. Additionally, Verizon entered into a merger agreement to acquire Frontier Communications for $38.50 per share, pending regulatory approvals.

The company also faced challenges, including a voluntary separation program affecting approximately 4,800 employees, resulting in a severance charge of $1.7 billion. This program is part of Verizon's broader strategy to streamline operations and improve financial performance.

Cash and cash equivalents as of September 30, 2024, stood at $4,987 million, a significant increase from $2,065 million at the end of 2023. Total current assets rose to $40,641 million, while total current liabilities increased to $61,816 million. The company reported net cash provided by operating activities of $26,480 million for the nine months ended September 30, 2024, down from $28,798 million in the same period of 2023.

Overall, Verizon's financial results reflect a complex landscape of growth in certain areas, particularly within the Consumer segment, while facing pressures in profitability and strategic adjustments in workforce and operations.