EX-99.1 2 a2024q2exhibit991.htm EX-99.1
Exhibit 99.1
News Release

FOR IMMEDIATE RELEASE | Media contacts:
July 22, 2024 | Katie Magnotta
| 201-602-9235
| katie.magnotta@verizon.com
| Eric Wilkens
| 201-572-9317
| eric.wilkens@verizon.com

Verizon delivers strong wireless service revenue
and broadband subscriber growth in Q2
Company remains on track to meet full-year 2024 financial guidance
2Q 2024 Highlights
Wireless: Accelerated growth in wireless service revenue
•Total wireless service revenue 1 of $19.8 billion, a 3.5 percent increase year over year.
•Retail postpaid phone net additions of 148,000, and retail postpaid net additions of 340,000.
•Retail postpaid phone churn of 0.85 percent, and retail postpaid churn of 1.11 percent.
Broadband: Double-digit broadband subscriber growth
•Total broadband net additions of 391,000. This was the eighth consecutive quarter with more than 375,000 broadband net additions.
•Total fixed wireless net additions of 378,000. At the end of second-quarter 2024, the company had a base of more than 3.8 million fixed wireless subscribers, representing an increase of nearly 69 percent year over year.
•11.5 million total broadband subscribers as of the end of second-quarter 2024, representing a 17.2 percent increase year over year.
•Fixed wireless revenue for second-quarter 2024 was $514 million, up more than $200 million year over year.
Consolidated: Verizon's operational excellence drives upward momentum
•Total operating revenue of $32.8 billion, up 0.6 percent from second-quarter 2023.
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•Consolidated net income for the second quarter of $4.7 billion, down from consolidated net income of $4.8 billion in second-quarter 2023, and consolidated adjusted EBITDA 2 of $12.3 billion, up from $12.0 billion in second-quarter 2023.
•Earnings per share of $1.09, compared with earnings per share of $1.10 in second-quarter 2023; adjusted EPS 2, excluding special items, of $1.15, compared with $1.21 in second-quarter 2023.
NEW YORK - Verizon Communications Inc. (NYSE, Nasdaq: VZ) reported second-quarter 2024 results today with strong wireless service revenue, broadband subscriber growth, and continued momentum in its three financial priorities of wireless service revenue, consolidated adjusted EBITDA and free cash flow. The company remains on track to achieve its full-year 2024 financial guidance.
“The sequential and year over year improvements in the second quarter were a reflection of operational excellence and the moves we made to bring choice, value and control to our customers’ lives,” said Verizon Chairman and CEO Hans Vestberg. “Our industry-leading network serves as a catalyst for how our millions of customers live their lives, and serves as the backbone for new and emerging technologies. We continue to build and expand on our strengths and successes with new products and services, and we are confident that this upward momentum will position us for future growth."
For second-quarter 2024, Verizon reported earnings per share of $1.09, compared with earnings per share of $1.10 in second-quarter 2023. On an adjusted basis 2, excluding special items, EPS was $1.15 in second-quarter 2024, compared with adjusted EPS 2 of $1.21 in second-quarter 2023.
Second-quarter 2024 financial results reflected a pre-tax loss from special items of $355 million. This included the amortization of intangible assets related to Tracfone and other acquisitions of $219 million, and a $136 million charge associated with a mark-to-market adjustment for pension liabilities.
Consolidated results: Upward momentum in key areas
•Total consolidated operating revenue in second-quarter 2024 was $32.8 billion, up 0.6 percent from second-quarter 2023. This growth can be attributed to an increase in
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service and other revenue, offset by a decrease in wireless equipment revenue due to lower upgrade volumes.
•Total wireless service revenue 1 in second-quarter 2024 was $19.8 billion, a sequential increase of more than $250 million, and an increase of 3.5 percent year over year. This increase was driven primarily by growth of Consumer wireless service revenue.
•Cash flow from operations in first-half 2024 totaled $16.6 billion, down from $18.0 billion in first-half 2023. This decrease was due to higher cash taxes, and higher interest expense primarily related to a reduction in capitalized interest, as well as higher interest rates.
•Capital expenditures in first-half 2024 were $8.1 billion, compared to $10.1 billion in first-half 2023. The company has returned to historic levels of capital intensity.
•The company ended first-half 2024 with free cash flow 2 of $8.5 billion, up from $8.0 billion in first-half 2023.
•Consolidated net income for second-quarter 2024 was $4.7 billion, down from consolidated net income of $4.8 billion in second-quarter 2023, and consolidated adjusted EBITDA 2 was $12.3 billion, up from $12.0 billion in second-quarter 2023.
•Verizon's total unsecured debt as of the end of second-quarter 2024 was $125.3 billion, a $3.1 billion decrease compared to first-quarter 2024, and $6.1 billion lower year over year. The company's net unsecured debt 2 at the end of second-quarter 2024 was $122.8 billion. At the end of second-quarter 2024, Verizon's ratio of unsecured debt to net income (LTM) was 10.7 times and net unsecured debt to consolidated adjusted EBITDA ratio 2 was 2.5 times.
Verizon Consumer: Revenue up, continued improvement in postpaid phone net additions
•Total Verizon Consumer revenue in second-quarter 2024 was $24.9 billion, an increase of 1.5 percent year over year as gains in service revenue were partially offset by declines in wireless equipment revenue.
•Wireless service revenue in second-quarter 2024 was $16.3 billion, up 3.7 percent year over year, driven by growth in Consumer wireless postpaid average revenue per account (ARPA) from pricing actions and continued fixed wireless adoption.
•Consumer wireless retail postpaid churn was 1.00 percent in second-quarter 2024, and wireless retail postpaid phone churn was 0.79 percent.
•In second-quarter 2024, Consumer reported 8,000 wireless retail postpaid phone net losses, compared with 136,000 wireless retail postpaid phone net losses in second-quarter 2023.
•Consumer wireless postpaid phone gross additions of approximately 1.8 million in second-quarter 2024 represented a 12.0 percent increase year over year. Excluding the contribution from the company's second number offering, wireless postpaid phone gross additions grew approximately 5.0 percent year over year.
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•Consumer reported 624,000 wireless retail prepaid net losses in second-quarter 2024. This result included 410,000 wireless retail prepaid net losses related to the shutdown of the Affordable Connectivity Program, the majority of which were in SafeLink Wireless, Verizon's brand offering access to government-sponsored connectivity benefits and programs. Wireless retail prepaid net losses, excluding SafeLink, were 12,000.
•Consumer reported 218,000 fixed wireless net additions and 24,000 Fios Internet net additions in second-quarter 2024. Consumer Fios revenue was $2.9 billion in second-quarter 2024.
•In second-quarter 2024, Consumer operating income was $7.6 billion, an increase of 3.7 percent year over year, and segment operating income margin was 30.5 percent, an increase from 29.8 percent in second-quarter 2023. Segment EBITDA 2 in second-quarter 2024 was $11.0 billion, an increase of 4.0 percent year over year. This improvement can be attributed to service revenue growth and lower upgrade volumes. Segment EBITDA margin 2 in second-quarter 2024 was 44.1 percent, an increase from 43.1 percent in second-quarter 2023.
Verizon Business: Strong mobility and broadband growth
•Total Verizon Business revenue was $7.3 billion in second-quarter 2024, a decrease of 2.4 percent year over year, as increases in wireless service revenue were more than offset by decreases in wireline revenue.
•Business wireless service revenue in second-quarter 2024 was $3.4 billion, an increase of 2.4 percent year over year. This result was driven by continued strong net additions for both mobility and fixed wireless, as well as benefits from pricing actions implemented in recent quarters.
•Business reported 268,000 wireless retail postpaid net additions in second-quarter 2024. This included 156,000 postpaid phone net additions, the highest result since fourth-quarter 2022. The company experienced sequential improvement in phone net additions across its small and medium business, enterprise, and public sector customers.
•Business wireless retail postpaid churn was 1.45 percent in second-quarter 2024, and wireless retail postpaid phone churn was 1.10 percent.
•Business reported 160,000 fixed wireless net additions in second-quarter 2024, the highest quarterly result to date.
•In second-quarter 2024, Verizon Business operating income was $500 million, a decrease of 6.2 percent year over year, and segment operating income margin was 6.8 percent, a decrease from 7.1 percent in second-quarter 2023. Segment EBITDA 2 in second-quarter 2024 was $1.6 billion, a decrease of 3.5 percent year over year, driven by continued declines in wireline revenues. Segment EBITDA margin 2 in second-quarter 2024 was 21.6 percent, a decrease from 21.9 percent in second-quarter 2023.
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Outlook and guidance: Verizon is on track to meet financial guidance
The company does not provide a reconciliation for any of the following adjusted (non-GAAP) forecasts because it cannot, without unreasonable effort, predict the special items that could arise, and the company is unable to address the probable significance of the unavailable information.
For 2024, Verizon continues to expect the following:
•Total wireless service revenue growth 1 of 2.0 percent to 3.5 percent.
•Adjusted EBITDA growth 2 of 1.0 percent to 3.0 percent.
•Adjusted EPS 2 of $4.50 to $4.70.
•Capital expenditures between $17.0 billion and $17.5 billion.
•Adjusted effective income tax rate 2 in the range of 22.5 percent to 24.0 percent.
1 Total wireless service revenue represents the sum of Consumer and Business segments.
2 Non-GAAP financial measure. See the accompanying schedules and www.verizon.com/about/investors for reconciliations of non-GAAP financial measures cited in this document to most directly comparable financial measures under generally accepted accounting principles (GAAP).
Verizon Communications Inc. (NYSE, Nasdaq: VZ) powers and empowers how its millions of customers live, work and play, delivering on their demand for mobility, reliable network connectivity and security. Headquartered in New York City, serving countries worldwide and nearly all of the Fortune 500, Verizon generated revenues of $134.0 billion in 2023. Verizon’s world-class team never stops innovating to meet customers where they are today and equip them for the needs of tomorrow. For more, visit verizon.com or find a retail location at verizon.com/stores.
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Forward-looking statements
In this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “forecasts,” “hopes,” “intends,” “plans,” “targets” or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the “SEC”), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of competition in the markets in which we operate, including the inability to successfully respond to competitive factors such as prices, promotional incentives and evolving consumer preferences; failure to take advantage of, or respond to competitors' use of, developments in technology and address changes in consumer demand; performance issues or delays in the deployment of our 5G network resulting in significant costs or a reduction in the anticipated benefits of the enhancement to our networks; the inability to implement our business strategy; adverse conditions in the U.S. and international economies, including inflation and changing interest rates in the markets in which we operate; cyber attacks impacting our networks or systems and any resulting financial or reputational impact; damage to our infrastructure or disruption of our operations from natural disasters, extreme weather conditions, acts of war, terrorist attacks or other hostile acts and any resulting financial or reputational impact; disruption of our key suppliers’ or vendors' provisioning of products or services, including as a result of geopolitical factors or the potential impacts of global climate change; material adverse changes in labor matters and any resulting financial or operational impact;
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damage to our reputation or brands; the impact of public health crises on our operations, our employees and the ways in which our customers use our networks and other products and services; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; allegations regarding the release of hazardous materials or pollutants into the environment from our, or our predecessors’, network assets and any related government investigations, regulatory developments, litigation, penalties and other liability, remediation and compliance costs, operational impacts or reputational damage; our high level of indebtedness; significant litigation and any resulting material expenses incurred in defending against lawsuits or paying awards or settlements; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or regulations, or in their interpretation, or challenges to our tax positions, resulting in additional tax expense or liabilities; and changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings.
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Verizon Communications Inc.
Condensed Consolidated Statements of Income

(dollars in millions, except per share amounts)
Unaudited |  | 3 Mos. Ended 6/30/24 |  | 3 Mos. Ended 6/30/23 |  | % Change |  | 6 Mos. Ended 6/30/24 |  | 6 Mos. Ended 6/30/23 |  | % Change
Operating Revenues |  |  |  |  |  |  |  |  |  |  |  |
Service revenues and other |  | $ | 27,798 |  |  | $ | 27,319 |  |  | 1.8 |  | $ | 55,418 |  |  | $ | 54,471 |  |  | 1.7
Wireless equipment revenues |  | 4,998 |  |  | 5,277 |  |  | (5.3) |  | 10,359 |  |  | 11,037 |  |  | (6.1)
Total Operating Revenues |  | 32,796 |  |  | 32,596 |  |  | 0.6 |  | 65,777 |  |  | 65,508 |  |  | 0.4
Operating Expenses |  |  |  |  |  |  |  |  |  |  |  |
Cost of services |  | 6,904 |  |  | 6,986 |  |  | (1.2) |  | 13,871 |  |  | 14,064 |  |  | (1.4)
Cost of wireless equipment |  | 5,567 |  |  | 5,778 |  |  | (3.7) |  | 11,472 |  |  | 12,204 |  |  | (6.0)
Selling, general and administrative expense |  | 8,024 |  |  | 8,253 |  |  | (2.8) |  | 16,167 |  |  | 15,759 |  |  | 2.6
Depreciation and amortization expense |  | 4,483 |  |  | 4,359 |  |  | 2.8 |  | 8,928 |  |  | 8,677 |  |  | 2.9
Total Operating Expenses |  | 24,978 |  |  | 25,376 |  |  | (1.6) |  | 50,438 |  |  | 50,704 |  |  | (0.5)
Operating Income |  | 7,818 |  |  | 7,220 |  |  | 8.3 |  | 15,339 |  |  | 14,804 |  |  | 3.6
Equity in losses of unconsolidated businesses |  | (14) |  |  | (33) |  |  | (57.6) |  | (23) |  |  | (24) |  |  | (4.2)
Other income (expense), net |  | (72) |  |  | 210 |  |  | * |  | 126 |  |  | 324 |  |  | (61.1)
Interest expense |  | (1,698) |  |  | (1,285) |  |  | 32.1 |  | (3,333) |  |  | (2,492) |  |  | 33.7
Income Before Provision For Income Taxes |  | 6,034 |  |  | 6,112 |  |  | (1.3) |  | 12,109 |  |  | 12,612 |  |  | (4.0)
Provision for income taxes |  | (1,332) |  |  | (1,346) |  |  | (1.0) |  | (2,685) |  |  | (2,828) |  |  | (5.1)
Net Income |  | $ | 4,702 |  |  | $ | 4,766 |  |  | (1.3) |  | $ | 9,424 |  |  | $ | 9,784 |  |  | (3.7)
Net income attributable to noncontrolling interests |  | $ | 109 |  |  | $ | 118 |  |  | (7.6) |  | $ | 229 |  |  | $ | 227 |  |  | 0.9
Net income attributable to Verizon |  | 4,593 |  |  | 4,648 |  |  | (1.2) |  | 9,195 |  |  | 9,557 |  |  | (3.8)
Net Income |  | $ | 4,702 |  |  | $ | 4,766 |  |  | (1.3) |  | $ | 9,424 |  |  | $ | 9,784 |  |  | (3.7)
Basic Earnings Per Common Share |  |  |  |  |  |  |  |  |  |  |  |
Net income attributable to Verizon |  | $ | 1.09 |  |  | $ | 1.10 |  |  | (0.9) |  | $ | 2.18 |  |  | $ | 2.27 |  |  | (4.0)
Weighted-average shares outstanding (in millions) |  | 4,215 |  |  | 4,208 |  |  |  |  | 4,215 |  |  | 4,207 |  |  |
Diluted Earnings Per Common Share(1) |  |  |  |  |  |  |  |  |  |  |  |
Net income attributable to Verizon |  | $ | 1.09 |  |  | $ | 1.10 |  |  | (0.9) |  | $ | 2.18 |  |  | $ | 2.27 |  |  | (4.0)
Weighted-average shares outstanding (in millions) |  | 4,221 |  |  | 4,213 |  |  |  |  | 4,220 |  |  | 4,212 |  |  |

Footnotes:
(1)Diluted Earnings per Common Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represents the only potential dilution.
*Not meaningful

Verizon Communications Inc.
Condensed Consolidated Balance Sheets

(dollars in millions)
Unaudited |  | 6/30/24 |  | 12/31/23 |  | $ Change
Assets |  |  |  |  |  |
Current assets |  |  |  |  |  |
Cash and cash equivalents |  | $ | 2,432 |  |  | $ | 2,065 |  |  | $ | 367 |
Accounts receivable |  | 26,702 |  |  | 26,102 |  |  | 600 |
Less Allowance for credit losses |  | 1,095 |  |  | 1,017 |  |  | 78 |
Accounts receivable, net |  | 25,607 |  |  | 25,085 |  |  | 522 |
Inventories |  | 1,841 |  |  | 2,057 |  |  | (216) |
Prepaid expenses and other |  | 8,176 |  |  | 7,607 |  |  | 569 |
Total current assets |  | 38,056 |  |  | 36,814 |  |  | 1,242 |
Property, plant and equipment |  | 324,978 |  |  | 320,108 |  |  | 4,870 |
Less Accumulated depreciation |  | 217,088 |  |  | 211,798 |  |  | 5,290 |
Property, plant and equipment, net |  | 107,890 |  |  | 108,310 |  |  | (420) |
Investments in unconsolidated businesses |  | 908 |  |  | 953 |  |  | (45) |
Wireless licenses |  | 156,291 |  |  | 155,667 |  |  | 624 |
Goodwill |  | 22,842 |  |  | 22,843 |  |  | (1) |
Other intangible assets, net |  | 10,680 |  |  | 11,057 |  |  | (377) |
Operating lease right-of-use assets |  | 24,064 |  |  | 24,726 |  |  | (662) |
Other assets |  | 18,415 |  |  | 19,885 |  |  | (1,470) |
Total assets |  | $ | 379,146 |  |  | $ | 380,255 |  |  | $ | (1,109) |
Liabilities and Equity |  |  |  |  |  |
Current liabilities |  |  |  |  |  |
Debt maturing within one year |  | $ | 23,255 |  |  | $ | 12,973 |  |  | $ | 10,282 |
Accounts payable and accrued liabilities |  | 19,727 |  |  | 23,453 |  |  | (3,726) |
Current operating lease liabilities |  | 4,247 |  |  | 4,266 |  |  | (19) |
Other current liabilities |  | 13,577 |  |  | 12,531 |  |  | 1,046 |
Total current liabilities |  | 60,806 |  |  | 53,223 |  |  | 7,583 |
Long-term debt |  | 126,022 |  |  | 137,701 |  |  | (11,679) |
Employee benefit obligations |  | 12,812 |  |  | 13,189 |  |  | (377) |
Deferred income taxes |  | 46,082 |  |  | 45,781 |  |  | 301 |
Non-current operating lease liabilities |  | 19,456 |  |  | 20,002 |  |  | (546) |
Other liabilities |  | 16,429 |  |  | 16,560 |  |  | (131) |
Total long-term liabilities |  | 220,801 |  |  | 233,233 |  |  | (12,432) |
Equity |  |  |  |  |  |
Common stock |  | 429 |  |  | 429 |  |  | — |
Additional paid in capital |  | 13,539 |  |  | 13,631 |  |  | (92) |
Retained earnings |  | 86,504 |  |  | 82,915 |  |  | 3,589 |
Accumulated other comprehensive loss |  | (1,287) |  |  | (1,380) |  |  | 93 |
Common stock in treasury, at cost |  | (3,590) |  |  | (3,821) |  |  | 231 |
Deferred compensation – employee stock ownership plans and other |  | 577 |  |  | 656 |  |  | (79) |
Noncontrolling interests |  | 1,367 |  |  | 1,369 |  |  | (2) |
Total equity |  | 97,539 |  |  | 93,799 |  |  | 3,740 |
Total liabilities and equity |  | $ | 379,146 |  |  | $ | 380,255 |  |  | $ | (1,109) |

Verizon Communications Inc.
Consolidated - Selected Financial and Operating Statistics

(dollars in millions, except per share amounts) |  |  |  |
Unaudited |  | 6/30/24 |  | 12/31/23 |  |  |  |
Total debt |  | $ | 149,277 |  |  | $ | 150,674 |  |  |  |  |
Unsecured debt |  | $ | 125,262 |  |  | $ | 128,491 |  |  |  |  |
Net unsecured debt(1) |  | $ | 122,830 |  |  | $ | 126,426 |  |  |  |  |
Unsecured debt / Consolidated Net Income (LTM) |  | 10.7 | x |  | 10.6 | x |  |  |  |
Net unsecured debt / Consolidated Adjusted EBITDA(1)(2) |  | 2.5 | x |  | 2.6 | x |  |  |  |
Common shares outstanding end of period (in millions) |  | 4,210 |  |  | 4,204 |  |  |  |  |
Total employees (‘000)(3) |  | 103.9 |  |  | 105.4 |  |  |  |  |
Quarterly cash dividends declared per common share |  | $ | 0.6650 |  |  | $ | 0.6650 |  |  |  |  |

Footnotes:
(1)Non-GAAP financial measure.
(2)Consolidated Adjusted EBITDA excludes the effects of non-operational items and special items.
(3)Number of employees on a full-time equivalent basis.

Verizon Communications Inc.
Condensed Consolidated Statements of Cash Flows

(dollars in millions)
Unaudited |  | 6 Mos. Ended 6/30/24 |  | 6 Mos. Ended 6/30/23 |  | $ Change
Cash Flows from Operating Activities |  |  |  |  |  |
Net Income |  | $ | 9,424 |  |  | $ | 9,784 |  |  | $ | (360) |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |
Depreciation and amortization expense |  | 8,928 |  |  | 8,677 |  |  | 251 |
Employee retirement benefits |  | 354 |  |  | 108 |  |  | 246 |
Deferred income taxes |  | 282 |  |  | 633 |  |  | (351) |
Provision for expected credit losses |  | 1,119 |  |  | 1,061 |  |  | 58 |
Equity in losses of unconsolidated businesses, inclusive of dividends received |  | 33 |  |  | 49 |  |  | (16) |
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses |  | (3,572) |  |  | (620) |  |  | (2,952) |
Other, net |  | 1 |  |  | (1,672) |  |  | 1,673 |
Net cash provided by operating activities |  | 16,569 |  |  | 18,020 |  |  | (1,451) |
Cash Flows from Investing Activities |  |  |  |  |  |
Capital expenditures (including capitalized software) |  | (8,071) |  |  | (10,070) |  |  | 1,999 |
Acquisitions of wireless licenses |  | (613) |  |  | (1,085) |  |  | 472 |
Collateral receipts (payments) related to derivative contracts, net |  | (424) |  |  | 824 |  |  | (1,248) |
Other, net |  | (2) |  |  | 131 |  |  | (133) |
Net cash used in investing activities |  | (9,110) |  |  | (10,200) |  |  | 1,090 |
Cash Flows from Financing Activities |  |  |  |  |  |
Proceeds from long-term borrowings |  | 3,122 |  |  | 1,503 |  |  | 1,619 |
Proceeds from asset-backed long-term borrowings |  | 5,828 |  |  | 3,705 |  |  | 2,123 |
Net proceeds from (repayments of) short-term commercial paper |  | 603 |  |  | (167) |  |  | 770 |
Repayments of long-term borrowings and finance lease obligations |  | (5,719) |  |  | (2,600) |  |  | (3,119) |
Repayments of asset-backed long-term borrowings |  | (4,008) |  |  | (2,383) |  |  | (1,625) |
Dividends paid |  | (5,598) |  |  | (5,487) |  |  | (111) |
Other, net |  | (1,290) |  |  | (157) |  |  | (1,133) |
Net cash used in financing activities |  | (7,062) |  |  | (5,586) |  |  | (1,476) |
Increase in cash, cash equivalents and restricted cash |  | 397 |  |  | 2,234 |  |  | (1,837) |
Cash, cash equivalents and restricted cash, beginning of period |  | 3,497 |  |  | 4,111 |  |  | (614) |
Cash, cash equivalents and restricted cash, end of period |  | $ | 3,894 |  |  | $ | 6,345 |  |  | $ | (2,451) |

Verizon Communications Inc.
Consumer - Selected Financial Results

(dollars in millions)
Unaudited |  | 3 Mos. Ended 6/30/24 |  | 3 Mos. Ended 6/30/23 |  | % Change |  | 6 Mos. Ended 6/30/24 |  | 6 Mos. Ended 6/30/23 |  | % Change
Operating Revenues |  |  |  |  |  |  |  |  |  |  |  |
Service |  | $ | 19,208 |  |  | $ | 18,641 |  |  | 3.0 |  | $ | 38,206 |  |  | $ | 37,097 |  |  | 3.0
Wireless equipment |  | 4,143 |  |  | 4,430 |  |  | (6.5) |  | 8,633 |  |  | 9,308 |  |  | (7.3)
Other |  | 1,576 |  |  | 1,487 |  |  | 6.0 |  | 3,145 |  |  | 3,010 |  |  | 4.5
Total Operating Revenues |  | 24,927 |  |  | 24,558 |  |  | 1.5 |  | 49,984 |  |  | 49,415 |  |  | 1.2
Operating Expenses |  |  |  |  |  |  |  |  |  |  |  |
Cost of services |  | 4,450 |  |  | 4,367 |  |  | 1.9 |  | 8,987 |  |  | 8,799 |  |  | 2.1
Cost of wireless equipment |  | 4,432 |  |  | 4,626 |  |  | (4.2) |  | 9,182 |  |  | 9,817 |  |  | (6.5)
Selling, general and administrative expense |  | 5,047 |  |  | 4,988 |  |  | 1.2 |  | 10,136 |  |  | 9,909 |  |  | 2.3
Depreciation and amortization expense |  | 3,394 |  |  | 3,247 |  |  | 4.5 |  | 6,703 |  |  | 6,461 |  |  | 3.7
Total Operating Expenses |  | 17,323 |  |  | 17,228 |  |  | 0.6 |  | 35,008 |  |  | 34,986 |  |  | 0.1
Operating Income |  | $ | 7,604 |  |  | $ | 7,330 |  |  | 3.7 |  | $ | 14,976 |  |  | $ | 14,429 |  |  | 3.8
Operating Income Margin |  | 30.5 | % |  | 29.8 | % |  |  |  | 30.0 | % |  | 29.2 | % |  |
Segment EBITDA(1) |  | $ | 10,998 |  |  | $ | 10,577 |  |  | 4.0 |  | $ | 21,679 |  |  | $ | 20,890 |  |  | 3.8
Segment EBITDA Margin(1) |  | 44.1 | % |  | 43.1 | % |  |  |  | 43.4 | % |  | 42.3 | % |  |

Footnotes:
(1) Non-GAAP financial measure.
The segment financial results and metrics above exclude the effects of special items (other than the effects of acquisition-related intangible asset amortization), which the Company’s chief operating decision maker does not consider in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.

Verizon Communications Inc.
Consumer - Selected Operating Statistics

Unaudited |  |  |  |  |  |  |  | 6/30/24 |  | 6/30/23 |  | % Change
Connections (‘000): |  |  |  |  |  |  |  |  |  |  |  |
Wireless retail postpaid |  |  |  |  |  |  |  | 93,960 |  |  | 92,474 |  |  | 1.6
Wireless retail prepaid |  |  |  |  |  |  |  | 20,276 |  |  | 21,646 |  |  | (6.3)
Total wireless retail |  |  |  |  |  |  |  | 114,236 |  |  | 114,120 |  |  | 0.1
Wireless retail prepaid excl. SafeLink |  |  |  |  |  |  |  | 18,702 |  |  | 19,362 |  |  | (3.4)
Wireless retail postpaid phone |  |  |  |  |  |  |  | 74,551 |  |  | 74,465 |  |  | 0.1
Fios video |  |  |  |  |  |  |  | 2,818 |  |  | 3,091 |  |  | (8.8)
Fios internet |  |  |  |  |  |  |  | 7,049 |  |  | 6,854 |  |  | 2.8
Fixed wireless access (FWA) broadband |  |  |  |  |  |  |  | 2,292 |  |  | 1,390 |  |  | 64.9
Wireline broadband |  |  |  |  |  |  |  | 7,238 |  |  | 7,098 |  |  | 2.0
Total broadband |  |  |  |  |  |  |  | 9,530 |  |  | 8,488 |  |  | 12.3
Unaudited |  | 3 Mos. Ended 6/30/24 |  | 3 Mos. Ended 6/30/23 |  | % Change |  | 6 Mos. Ended 6/30/24 |  | 6 Mos. Ended 6/30/23 |  | % Change
Gross Additions (‘000): |  |  |  |  |  |  |  |  |  |  |  |
Wireless retail postpaid |  | 2,901 |  |  | 2,928 |  |  | (0.9) |  | 5,884 |  |  | 6,138 |  |  | (4.1)
Wireless retail postpaid phone |  | 1,758 |  |  | 1,570 |  |  | 12.0 |  | 3,468 |  |  | 3,194 |  |  | 8.6
Net Additions Detail (‘000): |  |  |  |  |  |  |  |  |  |  |  |
Wireless retail postpaid |  | 72 |  |  | 304 |  |  | (76.3) |  | 147 |  |  | 625 |  |  | (76.5)
Wireless retail prepaid |  | (624) |  |  | (304) |  |  | * |  | (840) |  |  | (655) |  |  | (28.2)
Total wireless retail |  | (552) |  |  | — |  |  | * |  | (693) |  |  | (30) |  |  | *
Wireless retail prepaid excl. SafeLink |  | (12) |  |  | (317) |  |  | 96.2 |  | (143) |  |  | (594) |  |  | 75.9
Wireless retail postpaid phone |  | (8) |  |  | (136) |  |  | 94.1 |  | (166) |  |  | (399) |  |  | 58.4
Fios video |  | (65) |  |  | (69) |  |  | 5.8 |  | (133) |  |  | (143) |  |  | 7.0
Fios internet |  | 24 |  |  | 51 |  |  | (52.9) |  | 73 |  |  | 114 |  |  | (36.0)
FWA broadband |  | 218 |  |  | 251 |  |  | (13.1) |  | 421 |  |  | 507 |  |  | (17.0)
Wireline broadband |  | 13 |  |  | 36 |  |  | (63.9) |  | 49 |  |  | 82 |  |  | (40.2)
Total broadband |  | 231 |  |  | 287 |  |  | (19.5) |  | 470 |  |  | 589 |  |  | (20.2)
Churn Rate: |  |  |  |  |  |  |  |  |  |  |  |
Wireless retail postpaid |  | 1.00 | % |  | 0.95 | % |  |  |  | 1.02 | % |  | 1.00 | % |  |
Wireless retail postpaid phone |  | 0.79 | % |  | 0.76 | % |  |  |  | 0.81 | % |  | 0.80 | % |  |
Wireless retail prepaid |  | 4.49 | % |  | 4.24 | % |  |  |  | 4.37 | % |  | 4.28 | % |  |
Wireless retail prepaid excl. SafeLink |  | 3.59 | % |  | 3.71 | % |  |  |  | 3.60 | % |  | 3.72 | % |  |
Wireless retail |  | 1.63 | % |  | 1.58 | % |  |  |  | 1.63 | % |  | 1.63 | % |  |
Revenue Statistics (in millions): |  |  |  |  |  |  |  |  |  |  |  |
Wireless service revenue |  | $ | 16,342 |  |  | $ | 15,762 |  |  | 3.7 |  | $ | 32,476 |  |  | $ | 31,361 |  |  | 3.6
Fios revenue |  | $ | 2,896 |  |  | $ | 2,886 |  |  | 0.3 |  | $ | 5,792 |  |  | $ | 5,775 |  |  | 0.3

Verizon Communications Inc.
Consumer - Selected Operating Statistics (continued)

Unaudited |  | 3 Mos. Ended 6/30/24 |  | 3 Mos. Ended 6/30/23 |  | % Change |  | 6 Mos. Ended 6/30/24 |  | 6 Mos. Ended 6/30/23 |  | % Change
Other Wireless Statistics: |  |  |  |  |  |  |  |  |  |  |  |
Wireless retail postpaid ARPA(1) |  | $ | 138.44 |  |  | $ | 131.83 |  |  | 5.0 |  | $ | 137.09 |  |  | $ | 130.95 |  |  | 4.7
Wireless retail postpaid upgrade rate |  | 2.9 | % |  | 3.5 | % |  |  |  |  |  |  |  |
Wireless retail postpaid accounts (‘000)(2) |  |  |  |  |  |  |  | 32,769 |  |  | 32,976 |  |  | (0.6)
Wireless retail postpaid connections per account(2) |  |  |  |  |  |  |  | 2.87 |  |  | 2.80 |  |  | 2.5
Wireless retail prepaid ARPU(3) |  | $ | 30.90 |  |  | $ | 31.42 |  |  | (1.7) |  | $ | 31.04 |  |  | $ | 31.06 |  |  | (0.1)
Wireless retail prepaid ARPU(3) excl. SafeLink |  | $ | 32.48 |  |  | $ | 32.90 |  |  | (1.3) |  | $ | 32.37 |  |  | $ | 32.52 |  |  | (0.5)

Footnotes:
(1) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
(2) Statistics presented as of end of period.
(3) Wireless retail prepaid ARPU - average service revenue per unit from retail prepaid connections.
Where applicable, the operating results reflect certain adjustments, including those related to the 3G network shutdowns, migration activity among different types of devices and plans, customer profile changes, and adjustments in connection with mergers, acquisitions and divestitures.
Certain intersegment transactions with corporate entities have not been eliminated.
* Not meaningful

Verizon Communications Inc.
Business - Selected Financial Results

(dollars in millions)
Unaudited |  | 3 Mos. Ended 6/30/24 |  | 3 Mos. Ended 6/30/23 |  | % Change |  | 6 Mos. Ended 6/30/24 |  | 6 Mos. Ended 6/30/23 |  | % Change
Operating Revenues |  |  |  |  |  |  |  |  |  |  |  |
Enterprise and Public Sector |  | $ | 3,545 |  |  | $ | 3,784 |  |  | (6.3) |  | $ | 7,132 |  |  | $ | 7,571 |  |  | (5.8)
Business Markets and Other |  | 3,203 |  |  | 3,109 |  |  | 3.0 |  | 6,398 |  |  | 6,213 |  |  | 3.0
Wholesale |  | 552 |  |  | 590 |  |  | (6.4) |  | 1,146 |  |  | 1,193 |  |  | (3.9)
Total Operating Revenues |  | 7,300 |  |  | 7,483 |  |  | (2.4) |  | 14,676 |  |  | 14,977 |  |  | (2.0)
Operating Expenses |  |  |  |  |  |  |  |  |  |  |  |
Cost of services |  | 2,455 |  |  | 2,543 |  |  | (3.5) |  | 4,887 |  |  | 5,125 |  |  | (4.6)
Cost of wireless equipment |  | 1,135 |  |  | 1,152 |  |  | (1.5) |  | 2,290 |  |  | 2,386 |  |  | (4.0)
Selling, general and administrative expense |  | 2,132 |  |  | 2,152 |  |  | (0.9) |  | 4,394 |  |  | 4,185 |  |  | 5.0
Depreciation and amortization expense |  | 1,078 |  |  | 1,103 |  |  | (2.3) |  | 2,206 |  |  | 2,197 |  |  | 0.4
Total Operating Expenses |  | 6,800 |  |  | 6,950 |  |  | (2.2) |  | 13,777 |  |  | 13,893 |  |  | (0.8)
Operating Income |  | $ | 500 |  |  | $ | 533 |  |  | (6.2) |  | $ | 899 |  |  | $ | 1,084 |  |  | (17.1)
Operating Income Margin |  | 6.8 | % |  | 7.1 | % |  |  |  | 6.1 | % |  | 7.2 | % |  |
Segment EBITDA(1) |  | $ | 1,578 |  |  | $ | 1,636 |  |  | (3.5) |  | $ | 3,105 |  |  | $ | 3,281 |  |  | (5.4)
Segment EBITDA Margin(1) |  | 21.6 | % |  | 21.9 | % |  |  |  | 21.2 | % |  | 21.9 | % |  |

Footnotes:
(1) Non-GAAP financial measure.
The segment financial results and metrics above exclude the effects of special items (other than the effects of acquisition-related intangible asset amortization), which the Company’s chief operating decision maker does not consider in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.

Verizon Communications Inc.
Business - Selected Operating Statistics

Unaudited |  |  |  |  |  |  |  | 6/30/24 |  | 6/30/23 |  | % Change
Connections (‘000): |  |  |  |  |  |  |  |  |  |  |  |
Wireless retail postpaid |  |  |  |  |  |  |  | 30,230 |  |  | 29,105 |  |  | 3.9
Wireless retail postpaid phone |  |  |  |  |  |  |  | 18,480 |  |  | 17,856 |  |  | 3.5
Fios video |  |  |  |  |  |  |  | 58 |  |  | 64 |  |  | (9.4)
Fios internet |  |  |  |  |  |  |  | 393 |  |  | 380 |  |  | 3.4
FWA broadband |  |  |  |  |  |  |  | 1,523 |  |  | 870 |  |  | 75.1
Wireline broadband |  |  |  |  |  |  |  | 458 |  |  | 464 |  |  | (1.3)
Total broadband |  |  |  |  |  |  |  | 1,981 |  |  | 1,334 |  |  | 48.5
Unaudited |  | 3 Mos. Ended 6/30/24 |  | 3 Mos. Ended 6/30/23 |  | % Change |  | 6 Mos. Ended 6/30/24 |  | 6 Mos. Ended 6/30/23 |  | % Change
Gross Additions (‘000): |  |  |  |  |  |  |  |  |  |  |  |
Wireless retail postpaid |  | 1,579 |  |  | 1,590 |  |  | (0.7) |  | 3,110 |  |  | 3,197 |  |  | (2.7)
Wireless retail postpaid phone |  | 760 |  |  | 733 |  |  | 3.7 |  | 1,465 |  |  | 1,490 |  |  | (1.7)
Net Additions Detail (‘000): |  |  |  |  |  |  |  |  |  |  |  |
Wireless retail postpaid |  | 268 |  |  | 308 |  |  | (13.0) |  | 446 |  |  | 620 |  |  | (28.1)
Wireless retail postpaid phone |  | 156 |  |  | 144 |  |  | 8.3 |  | 246 |  |  | 280 |  |  | (12.1)
Fios video |  | (1) |  |  | (1) |  |  | — |  | (3) |  |  | (3) |  |  | —
Fios internet |  | 4 |  |  | 3 |  |  | 33.3 |  | 8 |  |  | 7 |  |  | 14.3
FWA broadband |  | 160 |  |  | 133 |  |  | 20.3 |  | 311 |  |  | 270 |  |  | 15.2
Wireline broadband |  | — |  |  | (2) |  |  | * |  | (1) |  |  | (4) |  |  | 75.0
Total broadband |  | 160 |  |  | 131 |  |  | 22.1 |  | 310 |  |  | 266 |  |  | 16.5
Churn Rate: |  |  |  |  |  |  |  |  |  |  |  |
Wireless retail postpaid |  | 1.45 | % |  | 1.48 | % |  |  |  | 1.48 | % |  | 1.49 | % |  |
Wireless retail postpaid phone |  | 1.10 | % |  | 1.10 | % |  |  |  | 1.11 | % |  | 1.13 | % |  |
Revenue Statistics (in millions): |  |  |  |  |  |  |  |  |  |  |  |
Wireless service revenue |  | $ | 3,431 |  |  | $ | 3,351 |  |  | 2.4 |  | $ | 6,810 |  |  | $ | 6,641 |  |  | 2.5
Fios revenue |  | $ | 313 |  |  | $ | 308 |  |  | 1.6 |  | $ | 624 |  |  | $ | 615 |  |  | 1.5
Other Operating Statistics: |  |  |  |  |  |  |  |  |  |  |  |
Wireless retail postpaid upgrade rate |  | 2.4 | % |  | 2.7 | % |  |  |  |  |  |  |  |

Footnotes:
Where applicable, the operating results reflect certain adjustments, including those related to the 3G network shutdowns, migration activity among different types of devices and plans, customer profile changes, and adjustments in connection with mergers, acquisitions and divestitures.
Certain intersegment transactions with corporate entities have not been eliminated.
* Not meaningful

Verizon Communications Inc.
Supplemental Information - Total Wireless Operating and Financial Statistics
The following supplemental schedule contains certain financial and operating metrics which reflect an aggregation of our Consumer and Business segments’ wireless results.

Unaudited |  | 6/30/24 |  | 6/30/23 |  | % Change
Connections (‘000) |  |  |  |  |  |  |  |  |  |  |  |
Retail postpaid |  |  |  |  |  |  |  | 124,190 |  |  | 121,579 |  |  | 2.1
Retail prepaid |  |  |  |  |  |  |  | 20,276 |  |  | 21,646 |  |  | (6.3)
Total retail |  |  |  |  |  |  |  | 144,466 |  |  | 143,225 |  |  | 0.9
Retail prepaid excl. SafeLink |  |  |  |  |  |  |  | 18,702 |  |  | 19,362 |  |  | (3.4)
Retail postpaid phone |  |  |  |  |  |  |  | 93,031 |  |  | 92,321 |  |  | 0.8
Unaudited |  | 3 Mos. Ended 6/30/24 |  | 3 Mos. Ended 6/30/23 |  | % Change |  | 6 Mos. Ended 6/30/24 |  | 6 Mos. Ended 6/30/23 |  | % Change
Net Additions Detail (‘000) |  |  |  |  |  |  |  |  |  |  |  |
Retail postpaid phone |  | 148 |  |  | 8 |  |  | * |  | 80 |  |  | (119) |  |  | *
Retail postpaid |  | 340 |  |  | 612 |  |  | (44.4) |  | 593 |  |  | 1,245 |  |  | (52.4)
Retail prepaid |  | (624) |  |  | (304) |  |  | * |  | (840) |  |  | (655) |  |  | (28.2)
Total retail |  | (284) |  |  | 308 |  |  | * |  | (247) |  |  | 590 |  |  | *
Retail prepaid excl. SafeLink |  | (12) |  |  | (317) |  |  | 96.2 |  | (143) |  |  | (594) |  |  | 75.9
Account Statistics |  |  |  |  |  |  |  |  |  |  |  |
Retail postpaid accounts (‘000)(1) |  |  |  |  |  |  |  | 34,766 |  |  | 34,855 |  |  | (0.3)
Retail postpaid connections per account(1) |  |  |  |  |  |  |  | 3.57 |  |  | 3.49 |  |  | 2.3
Retail postpaid ARPA(2) |  | $ | 161.20 |  |  | $ | 154.51 |  |  | 4.3 |  | $ | 159.72 |  |  | $ | 153.39 |  |  | 4.1
Retail prepaid ARPU(3) |  | $ | 30.90 |  |  | $ | 31.42 |  |  | (1.7) |  | $ | 31.04 |  |  | $ | 31.06 |  |  | (0.1)
Retail prepaid ARPU(3) excl. SafeLink |  | $ | 32.48 |  |  | $ | 32.90 |  |  | (1.3) |  | $ | 32.37 |  |  | $ | 32.52 |  |  | (0.5)
Churn Detail |  |  |  |  |  |  |  |  |  |  |  |
Retail postpaid phone |  | 0.85 | % |  | 0.83 | % |  |  |  | 0.87 | % |  | 0.87 | % |  |
Retail postpaid |  | 1.11 | % |  | 1.07 | % |  |  |  | 1.13 | % |  | 1.11 | % |  |
Retail prepaid |  | 4.49 | % |  | 4.24 | % |  |  |  | 4.37 | % |  | 4.28 | % |  |
Retail prepaid excl. SafeLink |  | 3.59 | % |  | 3.71 | % |  |  |  | 3.60 | % |  | 3.72 | % |  |
Retail |  | 1.59 | % |  | 1.56 | % |  |  |  | 1.60 | % |  | 1.60 | % |  |
Retail Postpaid Connection Statistics |  |  |  |  |  |  |  |  |  |  |  |
Upgrade rate |  | 2.8 | % |  | 3.3 | % |  |  |  |  |  |  |  |
Revenue Statistics (in millions)(4) |  |  |  |  |  |  |  |  |  |  |  |
FWA revenue |  | $ | 514 |  |  | $ | 297 |  |  | 73.1 |  | $ | 966 |  |  | $ | 552 |  |  | 75.0
Wireless service |  | $ | 19,773 |  |  | $ | 19,113 |  |  | 3.5 |  | $ | 39,286 |  |  | $ | 38,002 |  |  | 3.4
Wireless equipment |  | 4,998 |  |  | 5,277 |  |  | (5.3) |  | 10,359 |  |  | 11,037 |  |  | (6.1)
Wireless other |  | 1,600 |  |  | 1,486 |  |  | 7.7 |  | 3,185 |  |  | 3,001 |  |  | 6.1
Total Wireless |  | $ | 26,371 |  |  | $ | 25,876 |  |  | 1.9 |  | $ | 52,830 |  |  | $ | 52,040 |  |  | 1.5

Footnotes:
(1) Statistics presented as of end of period.
(2) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
(3) Wireless retail prepaid ARPU - average service revenue per unit from retail prepaid connections.
(4) Intersegment transactions between Consumer or Business segment with corporate entities have not been eliminated.
Where applicable, the operating results reflect certain adjustments, including those related to the 3G network shutdowns, migration activity among different types of devices and plans, customer profile changes, and adjustments in connection with mergers, acquisitions and divestitures.
* Not meaningful

Verizon Communications Inc.
Non-GAAP Reconciliations - Consolidated Verizon

Consolidated EBITDA and Consolidated Adjusted EBITDA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(dollars in millions)
Unaudited |  |  |  |  |  |  |  |  |  | 3 Mos. Ended 6/30/24 |  | 3 Mos. Ended 3/31/24 |  |  |  |  |  | 3 Mos. Ended 12/31/23 |  | 3 Mos. Ended 9/30/23 |  | 3 Mos. Ended 6/30/23 |  | 3 Mos. Ended 3/31/23
Consolidated Net Income (Loss) |  |  |  |  |  |  |  |  |  | $ | 4,702 |  |  | $ | 4,722 |  |  |  |  |  |  | $ | (2,573) |  |  | $ | 4,884 |  |  | $ | 4,766 |  |  | $ | 5,018 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Provision for income taxes |  |  |  |  |  |  |  |  |  | 1,332 |  |  | 1,353 |  |  |  |  |  |  | 756 |  |  | 1,308 |  |  | 1,346 |  |  | 1,482 |
Interest expense |  |  |  |  |  |  |  |  |  | 1,698 |  |  | 1,635 |  |  |  |  |  |  | 1,599 |  |  | 1,433 |  |  | 1,285 |  |  | 1,207 |
Depreciation and amortization expense(1) |  |  |  |  |  |  |  |  |  | 4,483 |  |  | 4,445 |  |  |  |  |  |  | 4,516 |  |  | 4,431 |  |  | 4,359 |  |  | 4,318 |
Consolidated EBITDA |  |  |  |  |  |  |  |  |  | $ | 12,215 |  |  | $ | 12,155 |  |  |  |  |  |  | $ | 4,298 |  |  | $ | 12,056 |  |  | $ | 11,756 |  |  | $ | 12,025 |
Add/(subtract): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other (income) expense, net(2) |  |  |  |  |  |  |  |  |  | $ | 72 |  |  | $ | (198) |  |  |  |  |  |  | $ | 807 |  |  | $ | (170) |  |  | $ | (210) |  |  | $ | (114) |
Equity in (earnings) losses of unconsolidated businesses |  |  |  |  |  |  |  |  |  | 14 |  |  | 9 |  |  |  |  |  |  | 11 |  |  | 18 |  |  | 33 |  |  | (9) |
Severance charges |  |  |  |  |  |  |  |  |  | — |  |  | — |  |  |  |  |  |  | 296 |  |  | — |  |  | 237 |  |  | — |
Legacy legal matter |  |  |  |  |  |  |  |  |  | — |  |  | 106 |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |
Verizon Business Group goodwill impairment |  |  |  |  |  |  |  |  |  | — |  |  | — |  |  |  |  |  |  | 5,841 |  |  | — |  |  | — |  |  | — |
Asset rationalization |  |  |  |  |  |  |  |  |  | — |  |  | — |  |  |  |  |  |  | 325 |  |  | — |  |  | 155 |  |  | — |
Legal settlement |  |  |  |  |  |  |  |  |  | — |  |  | — |  |  |  |  |  |  | 100 |  |  | — |  |  | — |  |  | — |
Business transformation costs |  |  |  |  |  |  |  |  |  | — |  |  | — |  |  |  |  |  |  | — |  |  | 176 |  |  | — |  |  | — |
Non-strategic business shutdown |  |  |  |  |  |  |  |  |  | — |  |  | — |  |  |  |  |  |  | — |  |  | 158 |  |  | — |  |  | — |
|  |  |  |  |  |  |  |  |  | 86 |  |  | (83) |  |  |  |  |  |  | 7,380 |  |  | 182 |  |  | 215 |  |  | (123) |
Consolidated Adjusted EBITDA |  |  |  |  |  |  |  |  |  | $ | 12,301 |  |  | $ | 12,072 |  |  |  |  |  |  | $ | 11,678 |  |  | $ | 12,238 |  |  | $ | 11,971 |  |  | $ | 11,902 |
Footnotes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(1) Includes Amortization of acquisition-related intangible assets and a portion of the Non-strategic business shutdown, where applicable. |  |
(2) Includes Pension and benefits remeasurement adjustments, where applicable. |  |  |  |  |  |

Verizon Communications Inc.

Consolidated EBITDA and Consolidated Adjusted EBITDA (LTM) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(dollars in millions) |  |  |  |  |  |  |  |  |  |  |  |
Unaudited |  |  |  |  |  | 12 Mos. Ended 6/30/24 |  |  |  | 12 Mos. Ended 12/31/23 |  |  |  |  |  |  |  |  |  |  |  |
Consolidated Net Income |  |  |  |  |  | $ | 11,735 |  |  |  |  | $ | 12,095 |  |  |  |  |  |  |  |  |  |  |  |  |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Provision for income taxes |  |  |  |  |  | 4,749 |  |  |  |  | 4,892 |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  |  |  |  |  | 6,365 |  |  |  |  | 5,524 |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization expense(1) |  |  |  |  |  | 17,875 |  |  |  |  | 17,624 |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated EBITDA |  |  |  |  |  | $ | 40,724 |  |  |  |  | $ | 40,135 |  |  |  |  |  |  |  |  |  |  |  |  |
Add/(subtract): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other expense, net(2) |  |  |  |  |  | $ | 511 |  |  |  |  | $ | 313 |  |  |  |  |  |  |  |  |  |  |  |  |
Equity in losses of unconsolidated businesses |  |  |  |  |  | 52 |  |  |  |  | 53 |  |  |  |  |  |  |  |  |  |  |  |  |
Severance charges |  |  |  |  |  | 296 |  |  |  |  | 533 |  |  |  |  |  |  |  |  |  |  |  |  |
Legacy legal matter |  |  |  |  |  | 106 |  |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  |  |
Verizon Business Group goodwill impairment |  |  |  |  |  | 5,841 |  |  |  |  | 5,841 |  |  |  |  |  |  |  |  |  |  |  |  |
Asset rationalization |  |  |  |  |  | 325 |  |  |  |  | 480 |  |  |  |  |  |  |  |  |  |  |  |  |
Legal settlement |  |  |  |  |  | 100 |  |  |  |  | 100 |  |  |  |  |  |  |  |  |  |  |  |  |
Business transformation costs |  |  |  |  |  | 176 |  |  |  |  | 176 |  |  |  |  |  |  |  |  |  |  |  |  |
Non-strategic business shutdown |  |  |  |  |  | 158 |  |  |  |  | 158 |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  | 7,565 |  |  |  |  | 7,654 |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated Adjusted EBITDA |  |  |  |  |  | $ | 48,289 |  |  |  |  | $ | 47,789 |  |  |  |  |  |  |  |  |  |  |  |  |
Footnotes: |  |  |  |  |  |  |  |  |  |  |  |
(1) Includes Amortization of acquisition-related intangible assets and a portion of the Non-strategic business shutdown, where applicable. |  |  |  |  |  |  |  |  |  |  |  |
(2) Includes Pension and benefits remeasurement adjustments, where applicable. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

Verizon Communications Inc.

Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio |  |  |  |  |  |  |  |  |  |
(dollars in millions) |  |  |  |
Unaudited |  | 6/30/24 |  | 3/31/24 |  |  |  | 12/31/23 |  | 6/30/23 |  |  |  |
Debt maturing within one year |  | $ | 23,255 |  |  | $ | 15,594 |  |  |  |  | $ | 12,973 |  |  | $ | 14,827 |  |  |  |  |
Long-term debt |  | 126,022 |  |  | 136,104 |  |  |  |  | 137,701 |  |  | 137,871 |  |  |  |  |
Total Debt |  | 149,277 |  |  | 151,698 |  |  |  |  | 150,674 |  |  | 152,698 |  |  |  |  |
Less Secured debt |  | 24,015 |  |  | 23,290 |  |  |  |  | 22,183 |  |  | 21,342 |  |  |  |  |
Unsecured Debt |  | 125,262 |  |  | 128,408 |  |  |  |  | 128,491 |  |  | 131,356 |  |  |  |  |
Less Cash and cash equivalents |  | 2,432 |  |  | 2,365 |  |  |  |  | 2,065 |  |  | 4,803 |  |  |  |  |
Net Unsecured Debt |  | $ | 122,830 |  |  | $ | 126,043 |  |  |  |  | $ | 126,426 |  |  | $ | 126,553 |  |  |  |  |
Consolidated Net Income (LTM) |  | $ | 11,735 |  |  |  |  |  |  | $ | 12,095 |  |  |  |  |  |  |
Unsecured Debt to Consolidated Net Income Ratio |  | 10.7 | x |  |  |  |  |  | 10.6 | x |  |  |  |  |  |
Consolidated Adjusted EBITDA (LTM) |  | $ | 48,289 |  |  |  |  |  |  | $ | 47,789 |  |  |  |  |  |  |
Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio |  | 2.5 | x |  |  |  |  |  | 2.6 | x |  |  |  |  |  |

Adjusted Earnings per Common Share (Adjusted EPS) |  |  |  |  |  |  |  |
(dollars in millions, except per share amounts)
Unaudited |  | 3 Mos. Ended 6/30/24 |  | 3 Mos. Ended 6/30/23
|  | Pre-tax | Tax | After-Tax |  |  | Pre-tax | Tax | After-Tax |
EPS |  |  |  |  | $ | 1.09 |  |  |  |  |  | $ | 1.10 |
Amortization of acquisition-related intangible assets |  | $ | 219 |  | $ | (55) |  | $ | 164 |  | 0.04 |  |  | $ | 206 |  | $ | (53) |  | $ | 153 |  | 0.04 |
Severance, pension and benefits charges |  | 136 |  | (34) |  | 102 |  | 0.02 |  |  | 237 |  | (59) |  | 178 |  | 0.04 |
Asset rationalization |  | — |  | — |  | — |  | — |  |  | 155 |  | (33) |  | 122 |  | 0.03 |
|  | $ | 355 |  | $ | (89) |  | $ | 266 |  | $ | 0.06 |  |  | $ | 598 |  | $ | (145) |  | $ | 453 |  | $ | 0.11 |
Adjusted EPS |  |  |  |  | $ | 1.15 |  |  |  |  |  | $ | 1.21 |
Footnote: |  |  |  |  |  |  |  |  |  |
Adjusted EPS may not add due to rounding. |  |  |  |  |  |  |  |  |  |

Free Cash Flow |  |  |  |  |  |  |
(dollars in millions) |
Unaudited |  | 6 Mos. Ended 6/30/24 |  |  |  | 6 Mos. Ended 6/30/23 |
Net Cash Provided by Operating Activities |  | $ | 16,569 |  |  |  |  | $ | 18,020 |  |
Capital expenditures (including capitalized software) |  | (8,071) |  |  |  |  | (10,070) |  |
Free Cash Flow |  | $ | 8,498 |  |  |  |  | $ | 7,950 |  |

Verizon Communications Inc.
Non-GAAP Reconciliations - Segments

Segment EBITDA and Segment EBITDA Margin |  |  |  |  |  |  |  |
Consumer |  |  |  |  |  |  |  |
(dollars in millions)
Unaudited |  | 3 Mos. Ended 6/30/24 |  | 3 Mos. Ended 6/30/23 |  | 6 Mos. Ended 6/30/24 |  | 6 Mos. Ended 6/30/23
Operating Income |  | $ | 7,604 |  |  | $ | 7,330 |  |  | $ | 14,976 |  |  | $ | 14,429 |
Add Depreciation and amortization expense |  | 3,394 |  |  | 3,247 |  |  | 6,703 |  |  | 6,461 |
Segment EBITDA |  | $ | 10,998 |  |  | $ | 10,577 |  |  | $ | 21,679 |  |  | $ | 20,890 |
Year over year change % |  | 4.0 | % |  |  |  | 3.8 | % |  |
Total operating revenues |  | $ | 24,927 |  |  | $ | 24,558 |  |  | $ | 49,984 |  |  | $ | 49,415 |
Operating Income Margin |  | 30.5 | % |  | 29.8 | % |  | 30.0 | % |  | 29.2 | %
Segment EBITDA Margin |  | 44.1 | % |  | 43.1 | % |  | 43.4 | % |  | 42.3 | %

Business |  |  |  |  |  |  |  |
(dollars in millions)
Unaudited |  | 3 Mos. Ended 6/30/24 |  | 3 Mos. Ended 6/30/23 |  | 6 Mos. Ended 6/30/24 |  | 6 Mos. Ended 6/30/23
Operating Income |  | $ | 500 |  |  | $ | 533 |  |  | $ | 899 |  |  | $ | 1,084 |
Add Depreciation and amortization expense |  | 1,078 |  |  | 1,103 |  |  | 2,206 |  |  | 2,197 |
Segment EBITDA |  | $ | 1,578 |  |  | $ | 1,636 |  |  | $ | 3,105 |  |  | $ | 3,281 |
Year over year change % |  | (3.5) | % |  |  |  | (5.4) | % |  |
Total operating revenues |  | $ | 7,300 |  |  | $ | 7,483 |  |  | $ | 14,676 |  |  | $ | 14,977 |
Operating Income Margin |  | 6.8 | % |  | 7.1 | % |  | 6.1 | % |  | 7.2 | %
Segment EBITDA Margin |  | 21.6 | % |  | 21.9 | % |  | 21.2 | % |  | 21.9 | %