Verizon Communications Inc. (VZ) reported a year-on-year decline of 0.7% in its first-quarter adjusted earnings per share. Operating revenue increased 2.1% from last year. The company said its performance produced best broadband result in over a decade, a surge in upgrades and increased wireless service revenue growth.
On an adjusted basis, first-quarter EPS excluding special items, was $1.35, compared to $1.36, last year. On average, 18 analysts polled by Thomson Reuters expected the company to report profit per share of $1.34, for the quarter. Analysts’ estimates typically exclude special items. Adjusted EBITDA was $12.0 billion, down 1.1 percent year over year.
Net income was $4.7 billion, a decrease of 12.4 percent from previous year. Earnings per share was $1.09 compared to $1.27. The company noted that its reported first-quarter earnings consisted of a pre-tax loss from special items of approximately $1.5 billion, including a pre-tax loss of approximately $1.2 billion from early debt redemption costs.
Total consolidated operating revenues were $33.55 billion, up 2.1 percent from a year ago. Analysts on average had estimated $33.53 billion in revenue. Total Wireless service revenue was $18.3 billion, up 9.5% from last year. Service and other revenue was down 2.5 percent, for the quarter. Excluding the impact of the sale of Verizon Media, service and other revenue was up 4.2 percent.
Total retail postpaid churn was 1.04 percent, and retail postpaid phone churn was 0.83 percent, for the quarter. Total wireless activations were up 11 percent year over year.
The company recorded 229,000 total broadband net additions, the best quarter in over a decade, including 194,000 fixed wireless net additions, 2.5 times the fourth quarter 2021 level. Wireline broadband net additions were 35,000, driven by 60,000 Fios Internet net additions in first-quarter 2022.
For full-year 2022, the company now expects adjusted EPS at the lower end of the previously guided range of $5.40 to $5.55. Adjusted EBITDA growth is projected at the lower end of the previously guided range of 2 percent to 3 percent. Reported wireless service revenue growth is now expected at the lower end of the previously guided range of 9 percent to 10 percent. Service and other revenue which is now expected to be approximately flat compared to 2021. Analysts polled by Thomson Reuters expect the company to report profit per share of $5.45.
Shares of Verizon Communications were down 2% in pre-market trade on Friday.
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