Verizon reported consolidated Q3 operating revenues of $31.5 billion, down 4.1 percent from third-quarter 2019. EPS was $1.05, compared with $1.25 in third-quarter 2019, including approximately negative 5 cents of COVID-19-related net impacts. Third-quarter 2020 EPS included a net pre-tax charge of about $1.1 billion related to a mark-to-market adjustment for pension liabilities.
“We continue to demonstrate our strength and resilience by delivering very strong third quarter financial results,” said Verizon Chairman and CEO Hans Vestberg. “We are energized by the transformational technology that our 5G Ultra Wideband and 5G nationwide bring. Our purpose-driven culture paired with our network leadership will shape the future, for the better.”
Year-to-date capital expenditures were $14.2 billion.
Some highlights:
Consumer
- Total Verizon Consumer revenues were $21.7 billion, a decrease of 4.3 percent year over year, primarily driven by a significant decrease in wireless equipment revenue due to reduced customer activity.
- Consumer reported 136,000 wireless retail postpaid net additions. This consisted of 142,000 phone net additions and 113,000 tablet net losses, offset by 107,000 other connected device net additions. Postpaid smartphone net additions were 258,000.
- Consumer wireless service revenues were $13.4 billion in third-quarter 2020, a 0.7 percent decrease year over year.
- Total retail postpaid churn was 0.80 percent in third-quarter 2020, and retail postpaid phone churn was 0.63 percent.
- Consumer reported 139,000 Fios Internet net additions in third-quarter 2020, an increase from 30,000 Fios Internet net additions in third-quarter 2019. Consumer and Business reported 144,000 total Fios Internet net additions, the most Fios Internet net additions since fourth-quarter 2014. Consumer reported 61,000 Fios Video net losses in third-quarter 2020, reflecting the ongoing shift from traditional linear video to over-the-top offerings.
- In third-quarter 2020, segment operating income was $7.4 billion, a decrease of 0.7 percent year over year, and segment operating income margin was 34.2 percent, an increase from 33.0 percent in third-quarter 2019. Segment EBITDA (non-GAAP) totaled $10.3 billion in third-quarter 2020, flat year over year. Segment EBITDA margin (non-GAAP) was 47.4 percent in third-quarter 2020, up from 45.3 percent in third-quarter 2019, and included approximately 60 basis points of headwind from the deferral of commission expense.
Business results
- Total Verizon Business revenues were $7.7 billion, down 1.7 percent year over year. The Business segment continues to be resilient through a challenging environment as the company provides critical solutions to customers across state and local government agencies and education providers.
- Business reported 417,000 wireless retail postpaid net additions in third-quarter 2020. This consisted of 141,000 phone net additions, 86,000 tablet net additions, and 190,000 other connected device additions.
- Business wireless service revenues were $3.0 billion in third-quarter 2020, a 4.9 percent increase year over year, primarily driven by Public Sector and Small and Medium Business.
- Total retail postpaid churn was 1.19 percent in third-quarter 2020, and retail postpaid phone churn was 0.96 percent.
- In third-quarter 2020, segment operating income was $923 million, a decrease of 5.5 percent year over year, and segment operating income margin was 11.9 percent, compared with 12.4 percent in third-quarter 2019. Segment EBITDA (non-GAAP) totaled $2.0 billion in third-quarter 2020, a decrease of 1.9 percent year over year. Segment EBITDA margin (non-GAAP) was 25.2 percent, which was flat year over year.
Media results
- Total Verizon Media revenues were $1.7 billion, down 7.4 percent year over year, but an increase of 21.2 percent from second-quarter 2020.
- Year over year revenue trends improved each month during third-quarter 2020.
- Trends resulting from the COVID-19 pandemic continued to impact both search and advertising in the quarter, though Media continues to drive increased customer engagement on its owned and operated properties.