On July 22, the largest mobile operator in the USA announced its financial performance for the second quarter, which was lower than analysts' expectations due to a decrease in users upgrading wireless devices. The total revenue was $32.8 billion, a YoY increase of 0.6%, while the average analyst expectation was $33.1 billion. Non-GAAP EPS was $1.15, in line with expectations. $Verizon (VZ.US)$The financial performance for the second quarter was announced, and due to the decrease in users upgrading their wireless equipment, the revenue was lower than analysts' expectations. The total revenue is 32.8 billion US dollars, a year-on-year increase of 0.6%, while analysts' average expectation was 33.1 billion US dollars. The non-GAAP earnings per share were $1.15, consistent with expectations.

On July 22nd, the opening price fell sharply by 5%, dropping nearly 7% at one point.$Verizon (VZ.US)$The opening price plunged 5%, falling nearly 7% at one point.

In Q2, Verizon added 0.148 million postpaid wireless phone users, exceeding the expected 0.118 million. The company has been working to prevent users from defecting to competitors, launching monthly additional payment packages of $10, including Netflix and Hulu Max, and users can also add Disney+ or Apple bundle. The total postpaid user churn rate in the second quarter was 1.11%. Q2 wireless service revenue was $19.8 billion, a year-on-year increase of 3.5%, in line with analysts' expectations.

This New York-based operator has always focused on its fixed wireless product, which provides high-speed internet through wireless signals rather than wired connections to homes. The company said it added 0.218 million consumer users in the second quarter, up 7.4% from the first quarter this year, and signed up 0.16 million enterprise users, the highest quarterly performance to date. This gives the company more than 3.8 million fixed wireless users, nearly a 69% increase from the same period last year.

Analysts say Verizon is being affected by historically low numbers of users upgrading their phones, but that could change when Apple releases its latest iPhone later this year.

Following the end of the US government subsidy program in June, the growth of its fixed wireless business helps offset the overall decline in broadband users. The US government's "Affordable Connectivity Program" provides a monthly discount for broadband internet services for low-income families. Verizon said the company added a total of 0.391 million broadband network users in the second quarter, down 6.5% from the same period last year, but better than expected, thanks mainly to growth in fixed wireless and Fios cable products. As of the end of the second quarter, the total number of broadband users was 11.5 million, a year-on-year increase of 17.2%.

Looking ahead, the company reiterated its expectation of wireless service revenue growth of 2% to 3.5% this year; expects adjusted earnings per share of $4.50 to $4.70, with the market's expectation of $4.57; and expects adjusted EBITDA growth of 1.0% to 3.0%.

So far this year, Verizon's stock has risen by about 10%, lagging behind its competitors AT&T (T.US) and T-Mobile US Inc. (TMUS.US), both of which have risen by around 14% over the same period. As of the time of publication, Verizon's stock price fell by nearly 4% in pre-market trading.