Below are my key takeaways from the Verizon Q2 2016 Earnings Call on July 26:

Summary:

Agreed to buy Yahoo’s operating business for $4.8B (technically in Q3), which they see as a compliment to their AOL purchase last year.  Acquired a private company called Telogis for its suite of connected vehicle solutions.  Saw new revenue streams from the Internet of Things, or IoT, grow by 25% to $205MM.

Completed the Frontier deal of selling systems in California, Texas and Florida for $10.54B. Negotiated new labor contracts will generate $500MM in cash savings over the term of the contracts.

Converted go90 application to the AOL platform.

Financial Metrics:

• Total Revenue: $30,532MM, -5.3% YoY
  • Q2 2015: $32,224MM
• Operating Income: $4,554MM, -41.8% YoY
  • Q2 2016: $7,821MM
• Net Income: $831MM, -80.9% YoY
  • Q2 2015: $4,353MM
• EPS: $0.17, -83.7% YoY
  • Q2 2015: $1.04

• Wireless Revenue: $21,704MM, -4.0%
  • Q2 2015: $22,613MM
• Wireless EBITDA: $10,299MM, +3.8% YoY / Margin: 47.5%
  • Q2 2015: $9,921MM / Margin: 43.9%

• Wireline Revenue: $7,823MM, -2.4% YoY
  • Q2 2015: $8,013MM
• Wireline EBITDA:$1,099MM, -26.5% YoY / Margin: 14.0%
  • Q2 2015: $1,496MM / Margin: 18.7%

Subscribers Metrics:

• Total Wireless Connections: 113.2MM, +3.3% YoY
  • Q2 2015: 109.5MM
  • Postpaid: 107.8MM
    • Net Additions: +0.615MM
    • Churn: 0.94%
  • Prepaid: 5.374MM
    • Net Additions: -0.003MM
    • Churn: 1.19%
• FiOS Video: 4.637MM, +1.6% YoY
  • Q2 2015: 4.565MM
• FiOS Internet: 5.495MM, +4.9%
  • Q2 2015: 5.240MM
• FiOS Digital Voice: 3.879MM, +2.4% YoY
  • Q2 2015: 3.788MM
• Verizon High Speed: 1.519MM, -16.5% YoY
  • Q2 2015: 1.820MM

List of Key Properties:

• Verizon FiOS
• Verizon Wireless 3G/4GLTE/5G
• Yahoo
• AOL
  • Engadget
  • TechCrunch
• Huffington Post
• Awesomeness TV
• Complex Magazine
• Go90 (Mobile only streaming video service)
• Hum (Car Diagnostics, Assistance and Location)

Forward Thinking:

• Wants to compete with Google and Facebook over digital ad revenue
• Looking to NFL and NBA to expand sports content on their mobile properties
• Developing infrastructure for eventual 5G launch in 2017

Links to Company Website:

• Q2 2016 Press Release
• Webcast of Q2 2016 Earnings Call
• Transcript
• Q2 2016 Earnings Slides
• Q2 2016 Financial Statements

Please comment below if there are data points from Verizon you’d like me to include in their next Earnings Call Summary.