Strong Customer Additions and Cash Flow Highlight Verizon's 2Q Results

Verizon reported second-quarter results highlighted by increased cash flow and strong momentum heading into the second half of the year. Total consolidated operating revenues in second-quarter 2020 were $30.4 billion, down 5.1 percent from second-quarter 2019.

"Through extraordinary circumstances, Verizon delivered a strong operational performance in the second quarter," said Chairman and CEO Hans Vestberg. "We remain focused on our strategic direction as a technology leader, quickly adapting to the new environment and providing our customers with reliable and vital connections and technology services, while working to keep our employees safe and accelerating our 5G network deployment. We have embraced, engaged in and responded to important social movements happening throughout the world, and will continue to be at the forefront of initiatives that move the world forward for everyone. We are proud of what we have done, and continue to do, for our customers, shareholders, employees, and society.

Verizon reported EPS of $1.13, compared with $0.95 in second-quarter 2019. On an adjusted basis (non-GAAP), second-quarter 2020 EPS, excluding special items, was $1.18, compared with adjusted EPS of $1.23 in second-quarter 2019. The company estimates that EPS and adjusted EPS included approximately 14 cents of COVID-19-related net impacts, primarily driven by impacts to wireless service revenue and lower advertising and search revenue from Verizon Media.

The company expects total wireless service revenue growth for third-quarter 2020 of -1 percent to flat year over year. The company also recognized an aggregate tax benefit of $156 million in connection with a series of legal entity restructurings related to an internal reorganization, which resulted in an approximately 4 cent benefit to second-quarter 2020 EPS and adjusted EPS.