Verizon Communications Inc. (VZ) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 25, 2023 8:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, and welcome to the Verizon Second Quarter 2023 Earnings Conference Call. At this time, all participants have been placed in a listen-only mode and the floor will be opened for questions following the presentation. [Operator Instructions] Today's conference is being recorded. If you have any objections, you may disconnect at this time.

It is now my pleasure to turn the call over to your host, Mr. Brady Connor, Senior Vice President Investor Relations.

Brady Connor

Thanks, Brad. Good morning, everyone, and welcome to our second quarter earnings conference call. I'm Brady Connor, and I'm joined by our Chairman and Chief Executive Officer, Hans Vestberg, as well as our Chief Financial Officer, Tony Skiadas.

Before we begin, I’d like to draw your attention to our Safe Harbor statement which can be found on Slide 2 of the presentation. Information in this presentation contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Discussion of factors that may affect future results is contained in Verizon's filings with the SEC which are available on our website. This presentation contains certain non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in the financial materials posted on our website.

Earlier this morning, we posted to our Investor Relations website, a detailed review of our second quarter results. You will find additional details in the earnings materials on our Investor Relations website.

With that, I'll now turn the call over to Hans.

Hans Vestberg

Thank you, Brady, and good morning, everyone, and welcome to our second quarter earnings call. Me and my team are pleased to report another solid quarter as we continue to advance across all of our strategic key performance indicators. Our newly appointed leadership team remains committed on delivering on our key metrics, growth on wireless service revenue, and expansion on consolidated adjusted EBITDA and free cash flow. We're seeing operational improvements throughout our business and our results are strong. Wireless service revenue was up 3.8% year-over-year, and adjusted EBITDA was $12 billion for the quarter. Cashflow from operation was very strong in the quarter at $9.7 billion, and free cash flow was $5.6 billion. The actions we’re taking to accelerate growth, improve operations, and ensure solid balance sheet, are working. Our results today illustrate our ability to adapt, innovate, and excel, even in times of economic uncertainty, and we're encouraged by the growing importance of mobility, broadband cloud services in the 5G era in all customer segments. Based on our results this quarter and what we see ahead, I'm confident that we will deliver on our 2023 financial guidance. This is a testament to the hard work and a dedication of our team.