Verizon’s revenue in 2Q17
In the earlier part of the series, we discussed that Verizon’s (VZ) earnings rose YoY (year-over-year) during 2Q17. In this part, let’s look at Verizon’s 2Q17 performance in terms of its top line. Verizon’s consolidated total revenues came in ~$0.6 billion above Wall Street analysts’ consensus estimates.
Verizon generated total revenues of $30.55 billion in 2Q17 as compared to $30.53 billion in 2Q16. However, excluding the impact of acquisitions and divestitures during the period, YoY consolidated revenue fell ~2.0% on a comparable basis. The main reason for this decline in total revenue is due to a decrease in wireless service revenue.
About 75% of postpaid phone subscribers are now on an unsubsidized pricing plan as compared with 71% in 1Q17. Increased penetration of unsubsidized plans could help Verizon improve service revenue declines. Verizon management anticipates wireless service revenue growth to stay negative in 2017 with positive growth beginning in 2018.
Verizon reported wireless equipment revenue of $4.3 billion in 2Q17, a 16.0% increase YoY. This increase in equipment revenue was driven by a higher retail postpaid base upgrade rate as compared to a year ago.
Verizon’s peer comparison of total revenue in 2Q17
In comparison, AT&T’s (T) total revenue fell ~1.7% YoY to reach $39.8 billion in 2Q17, whereas T-Mobile’s (TMUS) total revenue rose ~10.0% YoY to reach $10.2 billion in 2Q17. Meanwhile, Sprint’s (S) total revenue rose ~1.8% YoY to reach $8.2 billion in fiscal 1Q17, which ended in June 2017.
Continue to the next part of this series for a discussion on Verizon’s consolidated adjusted EBITDA (earnings before interest, tax, depreciation, and amortization).