TIDMVZC
Verizon Reports High-Quality Customer Additions in 4Q, Caps Year in Position to
Drive Continued Profitable Growth
4Q 2014 Earnings Impacted by Non-Operational Items
NEW YORK, Jan. 22, 2015 --
4Q 2014 HIGHLIGHTS
Consolidated
* A loss of 54 cents per share, compared with earnings per share (EPS) of
$1.76 in 4Q 2013, including significant non-operational items in both
quarters, primarily related to the annual actuarial valuation of benefit
plans and mark-to-market pension adjustments.
* 71 cents in adjusted EPS (non-GAAP), a 7.6 percent increase compared with
adjusted EPS of 66 cents per share in 4Q 2013.
Wireless
* 2.1 million net retail connections; 2.0 million net retail postpaid
connections, including net additions of 672,000 postpaid phones; retail
postpaid churn of 1.14 percent; 108.2 million total retail connections and
102.1 million total retail postpaid connections.
* 11.0 percent increase in total operating revenues in 4Q 2014, bringing
full-year total revenues to $87.6 billion, up 8.2 percent compared with
full-year 2013.
* 23.5 percent operating income margin and 42.0 percent segment EBITDA margin
on service revenues (non-GAAP) in 4Q; 30.5 percent and 48.5 percent,
respectively, for the full year.
Wireline
* 4.1 percent year-over-year quarterly increase in consumer revenues, the
10th consecutive quarter of more than 4 percent growth.
* 11.6 percent year-over-year quarterly increase in FiOS revenues; 145,000
FiOS Internet and 116,000 FiOS Video net additions; 59,000 increase in net
broadband connections.
Verizon Communications Inc. (NYSE, Nasdaq: VZ) today reported a healthy quarter
of high-quality wireless connections growth, and customer and revenue growth
for fiber-optic broadband services.
Chairman and CEO Lowell McAdam said: "Verizon posted another year of
consistently high operating and financial performance in 2014, with strong cash
generation and the return of $7.8 billion to our shareowners. I am confident
that Verizon's assets and market momentum position us to continue to drive
profitable growth in 2015."
Due to the impact of non-operational items, Verizon reported a loss of 54 cents
per share in fourth-quarter 2014, compared with a gain of $1.76 in EPS in
fourth-quarter 2013.
On an adjusted basis (non-GAAP), Verizon reported a gain of 71 cents per share
in fourth-quarter 2014, a 7.6 percent increase compared with adjusted earnings
of 66 cents per share in fourth-quarter 2013.
Fourth-quarter 2014 charges totaled $1.25 per share: $1.12 per share related to
the company's year-end mark-to-market adjustment for pension and Other
Post-Employment Benefits liabilities, as well as severance costs; and 13 cents
per share related to the early retirement of debt and other costs.
Fourth-quarter 2013 charges included a non-operational gain of $1.29 per share
related to the annual actuarial valuation of benefit plans and mark-to-market
pension adjustments. This was partially offset by non-operational charges of 19
cents per share for transaction costs related to the acquisition of Vodafone
Group PLC's indirect 45 percent interest in Verizon Wireless (completed in
February 2014).
For the full year, Verizon reported $2.42 in EPS in 2014, compared with $4.00
in 2013. On an adjusted basis (non-GAAP), Verizon reported $3.35 in EPS in
2014, an increase of 18.0 percent compared with $2.84 in adjusted EPS in 2013.
Following are highlights of fourth-quarter and full-year 2014 consolidated
results and outlook items for 2015:
Consolidated Highlights
* Total operating revenues in fourth-quarter 2014 were $33.2 billion, a 6.8
percent increase compared with fourth-quarter 2013. Full-year 2014
operating revenues were $127.1 billion, up 5.4 percent or $6.5 billion,
compared with full-year 2013.
* Excluding 2013 revenues of the public sector business Verizon divested at
the beginning of third-quarter 2014, the comparable revenue growth rates
(non-GAAP) would have been 7.3 percent for fourth-quarter 2014 and 5.7
percent for the full year.
* New revenue streams from the Internet of Things and telematics totaled
approximately $585 million in 2014, with an annual growth rate of more than
45 percent. The company recently launched Verizon Vehicle, a
connected-vehicle service for consumers, with an addressable market of more
than 200 million vehicles.
* In 2014, cash flows from operations totaled $30.6 billion, and free cash
flow (non-GAAP, cash from operations less capital expenditures) totaled
$13.4 billion. Capital expenditures totaled $17.2 billion for 2014, up 3.5
percent year over year.
2015 Outlook
For 2015, Verizon expects:
* Consolidated revenue growth of at least 4 percent.
* Sustained profitability with a consolidated adjusted EBITDA margin at a
level consistent with full-year 2014 performance.
* Strong free cash flow generation with consolidated capital spending of
between $17.5 billion and $18.0 billion.
* A minimum pension-funding requirement of approximately $700 million.
* An increase in total cash income taxes, with an expected effective tax rate
for book purposes in the range of 34 to 36 percent.
Verizon Wireless Delivers Another Quarter of Strong Connections Growth
In fourth-quarter 2014, Verizon activated an unprecedented number of new
wireless devices, driven by demand from the company's high-quality retail
postpaid customer base. Verizon Wireless delivered strong growth in retail
postpaid net connections, a high number of tablet additions and an increase in
smartphone penetration.
Wireless Financial Highlights
* Total revenues were $23.4 billion in fourth-quarter 2014, up 11.0 percent
year over year. Service revenues in the quarter totaled $18.2 billion, up
2.8 percent year over year. Retail service revenues grew 2.6 percent year
over year, to $17.4 billion.
* Verizon Wireless full-year total revenues were $87.6 billion, an increase
of 8.2 percent compared with full-year 2013 revenues of $81.0 billion.
* Verizon Edge installment billings totaled $443 million in fourth-quarter
2014 and $976 million for the full year. Service revenues plus Edge
installment billings grew 5.2 percent in fourth-quarter 2014 and 6.6
percent for the full year compared with 2013.
* Retail postpaid ARPA (average revenue per account) increased 1.0 percent
over fourth-quarter 2013 to $158.82 per month, and 3.9 percent over the
full year. Adding Edge installment billings, these growth rates increase to
3.5 percent for the quarter and 5.3 percent for the full year.
* In fourth-quarter 2014, wireless operating income margin was 23.5 percent
and segment EBITDA margin on service revenues (non-GAAP, based on earnings
before interest, taxes, depreciation and amortization) was 42.0 percent.
This compares with 29.5 percent and 47.0 percent, respectively, in
fourth-quarter 2013.
* For full-year 2014, wireless operating income margin was 30.5 percent and
segment EBITDA margin on service revenues was 48.5 percent, compared with
32.1 percent and 49.5 percent, respectively, in 2013.
Wireless Operational Highlights
* Verizon Wireless added 2.1 million retail net connections, including 2.0
million retail postpaid connections, in the fourth quarter. These additions
exclude acquisitions and adjustments.
* At the end of the year, the company had 108.2 million retail connections.
This includes 102.1 million retail postpaid connections, a 5.5 percent
increase year over year.
* Verizon Wireless had 35.6 million retail postpaid accounts at the end of
the fourth quarter, up 1.5 percent compared with fourth-quarter 2013, and
2.87 connections per account, up 4.0 percent year over year.
* During fourth-quarter 2014, retail postpaid device activations were up
nearly 34 percent over the same period in 2013. About three-quarters of
phone activations in the quarter were customer upgrades. Approximately 9.8
percent of the retail postpaid base upgraded devices, and 93 percent of
these upgrades were 4G smartphones.
* The company added a net of 672,000 postpaid phones, as 4G smartphone
additions of 1.5 million were offset by net declines in basic and 3G
smartphones. In terms of Internet devices, the company added 1.4 million
new 4G LTE tablets.
* At the end of 2014, smartphones accounted for 78.6 percent of the Verizon
Wireless retail postpaid customer phone base, up from 70.0 percent at the
end of 2013.
* Retail postpaid churn was 1.14 percent in the fourth quarter, an increase
of 14 basis points sequentially and 18 basis points year over year. Retail
churn was 1.39 percent in the fourth quarter, up 10 basis points
sequentially and 12 basis points year over year.
* In the fourth quarter, Verizon Wireless added new devices to its lineup,
including: DROID Turbo by Motorola; Sony Xperia Z3v; iPad Air 2 with Wi-Fi
+ Cellular and iPad mini 3 with Wi-Fi + Cellular; the LG G Pad 7.0 LTE and
10.1 LTE; the Ellipsis Jetpack; and the connected wearable devices GizmoPal
by LG and Samsung Gear S.
Wireline Consumer Revenue Growth Remains Strong
Verizon's wireline segment reported continued strong results for consumer
services, where year-over-year quarterly revenues now have grown by more than 4
percent for 10 consecutive quarters.
Wireline Financial Highlights
* Total revenues were $9.6 billion in fourth-quarter 2014, down 1.6 percent
year over year. Consumer revenues were $4.0 billion, up 4.1 percent
compared with fourth-quarter 2013, with FiOS revenues representing 77
percent of the total.
* Total FiOS revenues grew 11.6 percent, to $3.3 billion, comparing
fourth-quarter 2014 with fourth-quarter 2013. For the full year, FiOS
revenues totaled $12.7 billion in 2014, up 13.6 percent compared with $11.2
billion in 2013.
* Wireline operating income margin was 4.4 percent in fourth-quarter 2014, up
from 1.2 percent in fourth-quarter 2013. Segment EBITDA margin (non-GAAP)
was 23.9 percent in fourth-quarter 2014, compared with 22.5 percent in
fourth-quarter 2013. For the full year, wireline operating income margin
expanded to 2.7 percent and segment EBITDA margin expanded to 23.2 percent,
compared with 0.9 percent and 22.4 percent, respectively, in 2013.
* Sales of strategic services to enterprise customers increased 1.5 percent,
to $2.1 billion, compared with fourth-quarter 2013. Strategic services
include private IP, Ethernet, data center, cloud, security and managed
services.
Wireline Operational Highlights
* In fourth-quarter 2014, Verizon added 145,000 net new FiOS Internet
connections and 116,000 net new FiOS Video connections. Verizon had totals
of 6.6 million FiOS Internet and 5.6 million FiOS Video connections at
year-end 2014, representing year-over-year increases of 9.0 percent and 7.4
percent, respectively.
* FiOS Internet penetration (subscribers as a percentage of potential
subscribers) was 41.1 percent at the end of 2014, compared with 39.5
percent at the end of 2013. In the same periods, FiOS Video penetration was
35.8 percent, compared with 35.0 percent. The FiOS network passed more than
19.8 million premises by year-end 2014.
* By year-end 2014, 59 percent of consumer FiOS Internet customers subscribed
to FiOS Quantum, which provides speeds ranging from 50 to 500 megabits per
second, up from 57 percent at the end of third-quarter 2014.
* In November, the company began selling the FiOS Quantum Gateway Router,
capable of delivering speeds up to 800 megabits per second over Wi-Fi. The
device separates high-bandwidth activities (HD video streaming and online
gaming) from regular data consumption (Web browsing and email). It will
receive seamless updates regularly to provide increased functionality, such
as guest Wi-Fi and enhanced parental controls.
* Broadband connections totaled 9.2 million at year-end 2014, a 2.1 percent
year-over-year increase. Net broadband connections increased by 59,000 in
fourth-quarter 2014 and 190,000 for the full year, as FiOS Internet net
additions more than offset declines in DSL-based High Speed Internet
connections.
* Verizon has been replacing high-maintenance portions of its residential
copper network with fiber optics to provide customers with a more resilient
infrastructure, which improves customer satisfaction and reduces repair
costs. In fourth-quarter 2014, Verizon migrated an additional 52,000
customers who had been using copper connections, bringing the full-year
total to around 255,000. Verizon has converted more than 800,000 customers
to fiber since starting this initiative in 2011.
* In the fourth quarter, Verizon Enterprise Solutions began deploying
innovative enterprise-grade network, cloud, security, mobility and other
business solutions for some of the world's strongest brands, including
Allstate, Benihana, JetBlue, Kronos Incorporated, Marriott International,
Pitney Bowes, Spirax Sarco, Warner Bros. Entertainment Inc. and
WoundMatrix, and critical public sector organizations such as Boston City
Public Schools, Centers for Medicare and Medicaid Services, Defense
Information Systems Agency, GOV.UK and the U.S. General Services
Administration.
NOTE: See the accompanying schedules and www.verizon.com/about/investors for
reconciliations to generally accepted accounting principles (GAAP) for non-GAAP
financial measures cited in this document.
Verizon Communications Inc. (NYSE, Nasdaq: VZ), headquartered in New York, is a
global leader in delivering broadband and other wireless and wireline
communications services to consumer, business, government and wholesale
customers. Verizon Wireless operates America's most reliable wireless network,
with more than 108 million retail connections nationwide. Verizon also provides
converged communications, information and entertainment services over America's
most advanced fiber-optic network, and delivers integrated business solutions
to customers worldwide. A Dow 30 company with more than $127 billion in 2014
revenues, Verizon employs a diverse workforce of 177,300. For more information,
visit www.verizon.com/news/.
VERIZON'S ONLINE NEWS CENTER: Verizon news releases, executive speeches and
biographies, media contacts and other information are available at Verizon's
online News Center at www.verizon.com/news/. The news releases are available
through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.
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,"
"believes," "estimates," "hopes" 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. 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: adverse conditions in the U.S. and international
economies; the effects of competition in the markets in which we operate;
material changes in technology or technology substitution; disruption of our
key suppliers' provisioning of products or services; changes in the regulatory
environment in which we operate, including any increase in restrictions on our
ability to operate our networks; breaches of network or information technology
security, natural disasters, terrorist attacks or acts of war or significant
litigation and any resulting financial impact not covered by insurance; our
high level of indebtedness; 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; material adverse changes in labor matters,
including labor negotiations, and any resulting financial and/or operational
impact; significant increases in benefit plan costs or lower investment returns
on plan assets; changes in tax laws or treaties, or in their interpretation;
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; and the inability to
implement our business strategies.
Verizon Communications Inc.
Condensed Consolidated Statements of Income
(dollars in millions, except per share amounts)
3 Mos. Ended 3 Mos. Ended 12 Mos. Ended 12 Mos. Ended
Unaudited 12/31/14 12/31/13 % Change 12/31/14 12/31/13 % Change
Operating Revenues $ 33,192 $ 31,065 6.8 $ 127,079 $ 120,550 5.4
Operating Expenses
Cost of services and sales 14,403 11,962 20.4 49,931 44,887 11.2
Selling, general and
administrative expense 16,857 2,857 * 41,016 27,089 51.4
Depreciation and
amortization expense 4,068 4,183 (2.7) 16,533 16,606 (0.4)
Total Operating Expenses 35,328 19,002 85.9 107,480 88,582 21.3
Operating Income (Loss) (2,136) 12,063 * 19,599 31,968 (38.7)
Equity in earnings (losses)
of unconsolidated businesses (31) 8 * 1,780 142 *
Other income and (expense), net (437) (250) 74.8 (1,194) (166) *
Interest expense (1,282) (1,061) 20.8 (4,915) (2,667) 84.3
Income (Loss) Before
(Provision) Benefit for
Income Taxes (3,886) 10,760 * 15,270 29,277 (47.8)
(Provision) Benefit for
income taxes 1,738 (2,844) * (3,314) (5,730) (42.2)
Net Income (Loss) $ (2,148) $ 7,916 * $ 11,956 $ 23,547 (49.2)
Net income attributable to
noncontrolling interests $ 83 $ 2,849 (97.1) $ 2,331 $ 12,050 (80.7)
Net income (loss)
attributable to Verizon (2,231) 5,067 * 9,625 11,497 (16.3)
Net Income (Loss) $ (2,148) $ 7,916 * $ 11,956 $ 23,547 (49.2)
Basic Earnings (Loss)
per Common Share
Net income (loss)
attributable to Verizon $ (.54) $ 1.77 * $ 2.42 $ 4.01 (39.7)
Weighted average number of
common shares (in millions) 4,157 2,867 3,974 2,866
Diluted Earnings (Loss) per
Common Share (1)
Net income (loss)
attributable to Verizon $ (.54) $ 1.76 * $ 2.42 $ 4.00 (39.5)
Weighted average number of
common shares-assuming
dilution (in millions) 4,157 2,875 3,981 2,874
Footnotes:
(1) If there is a net loss, diluted EPS is the same as basic EPS. Diluted
Earnings per Common Share includes the dilutive effect of shares issuable
under our stock-based compensation plans, which represents the only
potential dilution.
Certain reclassifications have been made, where appropriate, to reflect
comparable operating results.
* Not meaningful
Verizon Communications Inc.
Condensed Consolidated Balance Sheets
(dollars in millions)
Unaudited 12/31/14 12/31/13 $ Change
Assets
Current assets
Cash and cash equivalents $ 10,598 $ 53,528 $ (42,930)
Short-term investments 555 601 (46)
Accounts receivable, net 13,993 12,439 1,554
Inventories 1,153 1,020 133
Prepaid expenses and other 3,324 3,406 (82)
Total current assets 29,623 70,994 (41,371)
Plant, property and equipment 230,508 220,865 9,643
Less accumulated depreciation 140,561 131,909 8,652
89,947 88,956 991
Investments in unconsolidated
businesses 802 3,432 (2,630)
Wireless licenses 75,341 75,747 (406)
Goodwill 24,639 24,634 5
Other intangible assets, net 5,728 5,800 (72)
Other assets 6,628 4,535 2,093
Total Assets $ 232,708 $ 274,098 $ (41,390)
Liabilities and Equity
Current liabilities
Debt maturing within one year $ 2,735 $ 3,933 $ (1,198)
Accounts payable and accrued
liabilities 16,680 16,453 227
Other 8,649 6,664 1,985
Total current liabilities 28,064 27,050 1,014
Long-term debt 110,536 89,658 20,878
Employee benefit obligations 33,280 27,682 5,598
Deferred income taxes 41,578 28,639 12,939
Other liabilities 5,574 5,653 (79)
Equity
Common stock 424 297 127
Contributed capital 11,155 37,939 (26,784)
Reinvested earnings 2,447 1,782 665
Accumulated other
comprehensive income 1,111 2,358 (1,247)
Common stock in treasury, at cost (3,263) (3,961) 698
Deferred compensation - employee
stock ownership plans and other 424 421 3
Noncontrolling interests 1,378 56,580 (55,202)
Total equity 13,676 95,416 (81,740)
Total Liabilities and Equity $ 232,708 $ 274,098 $ (41,390)
Verizon - Selected Financial and Operating Statistics
Unaudited 12/31/14 12/31/13
Total debt (in millions) $ 113,271 $ 93,591
Net debt (in millions) $ 102,673 $ 40,063
Net debt / Adjusted EBITDA(1) 2.4x 1.0x
Common shares outstanding end of
period (in millions) 4,155 2,862
Total employees 177,300 176,800
Quarterly cash dividends
declared per common share $ 0.550 $ 0.530
Footnotes:
(1) Adjusted EBITDA excludes the effects of non-operational items.
The unaudited condensed consolidated balance sheets are based on preliminary
information.
Verizon Communications Inc.
Condensed Consolidated Statements of Cash Flows
(dollars in millions)
12 Mos. Ended 12 Mos. Ended
Unaudited 12/31/14 12/31/13 $ Change
Cash Flows from Operating Activities
Net Income $ 11,956 $ 23,547 $ (11,591)
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and amortization expense 16,533 16,606 (73)
Employee retirement benefits 8,130 (5,052) 13,182
Deferred income taxes (92) 5,785 (5,877)
Provision for uncollectible accounts 1,095 993 102
Equity in earnings of
unconsolidated businesses,
net of dividends received (1,743) (102) (1,641)
Changes in current assets
and liabilities, net of
effects from acquisition/
disposition of businesses (2,160) (5) (2,155)
Other, net (3,088) (2,954) (134)
Net cash provided by operating activities 30,631 38,818 (8,187)
Cash Flows from Investing Activities
Capital expenditures (including
capitalized software) (17,191) (16,604) (587)
Acquisitions of investments
and businesses, net of cash acquired (182) (494) 312
Acquisitions of wireless licenses (354) (580) 226
Proceeds from dispositions of wireless licenses 2,367 2,111 256
Proceeds from dispositions of businesses 120 - 120
Other, net (616) 734 (1,350)
Net cash used in investing activities (15,856) (14,833) (1,023)
Cash Flows from Financing Activities
Proceeds from long-term borrowings 30,967 49,166 (18,199)
Repayments of long-term borrowings
and capital lease obligations (17,669) (8,163) (9,506)
Decrease in short-term obligations,
excluding current maturities (475) (142) (333)
Dividends paid (7,803) (5,936) (1,867)
Proceeds from sale of common stock 34 85 (51)
Purchase of common stock for treasury - (153) 153
Special distribution to noncontrolling interest - (3,150) 3,150
Acquisition of noncontrolling interest (58,886) - (58,886)
Other, net (3,873) (5,257) 1,384
Net cash provided by (used in)
financing activities (57,705) 26,450 (84,155)
Increase (decrease) in cash and
cash equivalents (42,930) 50,435 (93,365)
Cash and cash equivalents,
beginning of period 53,528 3,093 50,435
Cash and cash equivalents, end of period $ 10,598 $ 53,528 $ (42,930)
Footnotes:
Certain reclassifications of prior period amounts have been made, where
appropriate, to reflect comparable operating results.
Verizon Communications Inc.
Wireless - Selected Financial Results
(dollars in millions)
3 Mos. Ended 3 Mos. Ended 12 Mos. Ended 12 Mos. Ended
Unaudited 12/31/14 12/31/13 % Change 12/31/14 12/31/13 % Change
Operating Revenues
Retail service $ 17,411 $ 16,967 2.6 $ 69,501 $ 66,334 4.8
Other service 798 744 7.3 3,129 2,699 15.9
Service 18,209 17,711 2.8 72,630 69,033 5.2
Equipment 4,222 2,421 74.4 10,959 8,111 35.1
Other 1,018 993 2.5 4,057 3,879 4.6
Total Operating Revenues 23,449 21,125 11.0 87,646 81,023 8.2
Operating Expenses
Cost of services and sales 9,184 6,546 40.3 28,825 23,648 21.9
Selling, general and
administrative expense 6,611 6,261 5.6 23,602 23,176 1.8
Depreciation and
amortization expense 2,152 2,089 3.0 8,459 8,202 3.1
Total Operating Expenses 17,947 14,896 20.5 60,886 55,026 10.6
Operating Income $ 5,502 $ 6,229 (11.7) $ 26,760 $ 25,997 2.9
Operating Income Margin 23.5% 29.5% 30.5% 32.1%
Segment EBITDA $ 7,654 $ 8,318 (8.0) $ 35,219 $ 34,199 3.0
Segment EBITDA Margin 32.6% 39.4% 40.2% 42.2%
Segment EBITDA Service
Margin 42.0% 47.0% 48.5% 49.5%
Footnotes:
The segment financial results and metrics above are adjusted to exclude the
effects of non-operational items, as the Company's chief operating decision
maker excludes these items in assessing business unit performance.
Intersegment transactions have not been eliminated.
Certain reclassifications have been made, where appropriate, to reflect
comparable operating results.
Verizon Communications Inc.
Wireless - Selected Operating Statistics
Unaudited 12/31/14 12/31/13 % Change
Connections ('000)
Retail postpaid 102,079 96,752 5.5
Retail prepaid 6,132 6,047 1.4
Retail 108,211 102,799 5.3
3 Mos. Ended 3 Mos. Ended 12 Mos. Ended 12 Mos. Ended
Unaudited 12/31/14 12/31/13 % Change 12/31/14 12/31/13 % Change
Net Add Detail ('000) (1)
Retail postpaid 1,986 1,573 26.3 5,482 4,118 33.1
Retail prepaid 81 80 1.3 86 354 (75.7)
Retail 2,067 1,653 25.0 5,568 4,472 24.5
Account Statistics
Retail Postpaid
Accounts ('000) (2) 35,616 35,083 1.5
Retail postpaid ARPA $ 158.82 $ 157.21 1.0 $ 159.86 $ 153.93 3.9
Retail postpaid
connections per
account (2) 2.87 2.76 4.0
Churn Detail
Retail postpaid 1.14% 0.96% 1.04% 0.97%
Retail 1.39% 1.27% 1.33% 1.27%
Retail Postpaid Connection
Statistics
Total Smartphone postpaid
% of phones activated 93.6% 88.9% 91.6% 85.7%
Total Smartphone postpaid
phone base (2) 78.6% 70.0%
Total Internet postpaid
base (2) 14.1% 10.7%
Other Operating Statistics
Capital expenditures
(in millions) $ 2,707 $ 2,705 0.1 $ 10,515 $ 9,425 11.6
Footnotes:
(1) Connection net additions exclude acquisitions and adjustments.
(2) Statistics presented as of end of period.
The segment financial results and metrics above are adjusted to exclude the
effects of non-operational items, as the Company's chief operating decision
maker excludes these items in assessing business unit performance.
Intersegment transactions have not been eliminated.
Certain reclassifications have been made, where appropriate, to reflect
comparable operating results.
Verizon Communications Inc.
Wireline - Selected Financial Results
(dollars in millions)
3 Mos. Ended 3 Mos. Ended 12 Mos. Ended 12 Mos. Ended
Unaudited 12/31/14 12/31/13 % Change 12/31/14 12/31/13 % Change
Operating Revenues
Consumer retail $ 3,977 $ 3,822 4.1 $ 15,583 $ 14,842 5.0
Small business 606 629 (3.7) 2,464 2,541 (3.0)
Mass Markets 4,583 4,451 3.0 18,047 17,383 3.8
Strategic services 2,112 2,081 1.5 8,326 8,140 2.3
Core 1,259 1,452 (13.3) 5,358 6,042 (11.3)
Global Enterprise 3,371 3,533 (4.6) 13,684 14,182 (3.5)
Global Wholesale 1,509 1,602 (5.8) 6,222 6,594 (5.6)
Other 97 126 (23.0) 476 465 2.4
Total Operating Revenues 9,560 9,712 (1.6) 38,429 38,624 (0.5)
Operating Expenses
Cost of services and sales 5,326 5,471 (2.7) 21,332 21,396 (0.3)
Selling, general and
administrative expense 1,952 2,054 (5.0) 8,180 8,571 (4.6)
Depreciation and
amortization expense 1,866 2,073 (10.0) 7,882 8,327 (5.3)
Total Operating Expenses 9,144 9,598 (4.7) 37,394 38,294 (2.4)
Operating Income $ 416 $ 114 * $ 1,035 $ 330 *
Operating Income Margin 4.4% 1.2% 2.7% 0.9%
Segment EBITDA $ 2,282 $ 2,187 4.3 $ 8,917 $ 8,657 3.0
Segment EBITDA Margin 23.9% 22.5% 23.2% 22.4%
Footnotes:
The segment financial results and metrics above are adjusted to exclude the
effects of non-operational items, as the Company's chief operating decision
maker excludes these items in assessing business unit performance.
Intersegment transactions have not been eliminated.
Certain reclassifications have been made, where appropriate, to reflect
comparable operating results.
* Not meaningful
Verizon Communications Inc.
Wireline - Selected Operating Statistics
Unaudited 12/31/14 12/31/13 % Change
Connections ('000)
FiOS Video Subscribers 5,649 5,262 7.4
FiOS Internet Subscribers 6,616 6,072 9.0
FiOS Digital Voice residence connections 4,602 4,248 8.3
FiOS Digital connections 16,867 15,582 8.2
HSI 2,589 2,943 (12.0)
Total Broadband connections 9,205 9,015 2.1
Primary residence switched access connections 5,596 6,481 (13.7)
Primary residence connections 10,198 10,729 (4.9)
Total retail residence voice connections 10,615 11,229 (5.5)
Total voice connections 19,795 21,085 (6.1)
3 Mos. Ended 3 Mos. Ended 12 Mos. Ended 12 Mos. Ended
Unaudited 12/31/14 12/31/13 % Change 12/31/14 12/31/13 % Change
Net Add Detail ('000)
FiOS Video Subscribers 116 92 26.1 387 536 (27.8)
FiOS Internet Subscribers 145 126 15.1 544 648 (16.0)
FiOS Digital Voice
residence connections 88 179 (50.8) 354 1,021 (65.3)
FiOS Digital connections 349 397 (12.1) 1,285 2,205 (41.7)
HSI (86) (106) (18.9) (354) (428) (17.3)
Total Broadband connections 59 20 * 190 220 (13.6)
Primary residence
switched access connections (198) (340) (41.8) (885) (1,501) (41.0)
Primary residence connections (110) (161) (31.7) (531) (480) 10.6
Total retail residence
voice connections (128) (192) (33.3) (614) (620) (1.0)
Total voice connections (294) (372) (21.0) (1,290) (1,418) (9.0)
Revenue and ARPU Statistics
Consumer ARPU $ 129.29 $ 117.88 9.7 $ 124.11 $ 112.77 10.1
FiOS revenues (in millions) $ 3,308 $ 2,965 11.6 $ 12,674 $ 11,152 13.6
Strategic services as a
% of total Enterprise revenues 62.7% 58.9% 60.8% 57.4%
Other Operating Statistics
Capital expenditures
(in millions) $ 1,556 $ 1,762 (11.7) $ 5,750 $ 6,229 (7.7)
Wireline employees ('000) 76.8 81.9
FiOS Video Open for Sale ('000) 15,776 15,022
FiOS Video penetration 35.8% 35.0%
FiOS Internet Open for Sale ('000) 16,109 15,368
FiOS Internet penetration 41.1% 39.5%
Footnotes:
The segment financial results and metrics above are adjusted to exclude the
effects of non-operational items, as the Company's chief operating decision
maker excludes these items in assessing business unit performance.
Intersegment transactions have not been eliminated.
Certain reclassifications have been made, where appropriate, to reflect
comparable operating results.
* Not meaningful
SOURCE Verizon Communications Inc.
CONTACT: Bob Varettoni, 908-559-6388, robert.a.varettoni@verizon.com; or Ray
McConville, 908-559-3504, raymond.mcconville@verizon.com
END
Verizon Comms (LSE:VZC)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Verizon Comms (LSE:VZC)
Historical Stock Chart
Von Jul 2023 bis Jul 2024
