Company sees strong customer loyalty and
increased net wireless customer additions with seamless transition
to new customer-focused operating structure
As previously disclosed, beginning second
quarter 2019, Verizon will report financial and operational results
under its new reporting structure, Verizon 2.0. Under this
structure, there are two reportable segments that the company
operates and manages as strategic business units: Consumer and
Business. Verizon previously reported results for its Wireless and
Wireline segments. For comparison purposes, results for both the
current and previous operating structures are presented
below.
2Q 2019 highlights
Consolidated:
- 95 cents in earnings per share (EPS), compared with $1.00 in 2Q
2018; adjusted EPS (non-GAAP), excluding a special item, of $1.23,
compared with $1.20 in 2Q 2018.
Consumer:
- Total revenue of $22.0 billion.
- 126,000 retail postpaid net additions, including 73,000 phone
net additions and 209,000 postpaid smartphone net additions.
- Total retail postpaid churn of 0.97 percent, and retail
postpaid phone churn of 0.72 percent.
- 28,000 Fios Internet net additions.
Business:
- Total revenue of $7.8 billion.
- 325,000 retail postpaid net additions, including 172,000 phone
net additions.
- Retail postpaid churn of 1.21 percent, and retail postpaid
phone churn of 0.97 percent.
Wireless (non-GAAP):
- Total revenue growth of 1.0 percent year over year to $22.7
billion, driven by a 3.1 percent increase in service revenue.
- 451,000 retail postpaid net additions, including 420,000
postpaid smartphone net additions, and 245,000 phone net additions,
an increase from the 199,000 phone net additions in second-quarter
2018.
- Retail postpaid churn of 1.02 percent, and industry-leading
retail postpaid phone churn of 0.76 percent.
Wireline (non-GAAP):
- Total revenue of $7.1 billion.
- 34,000 Fios Internet net additions; Fios total revenue growth
of 1.9 percent year over year.
NEW YORK, Aug. 01, 2019 (GLOBE NEWSWIRE) -- Verizon
Communications Inc. (NYSE, Nasdaq: VZ) today reported strong
second-quarter 2019 results highlighted by an increase in net
wireless customer additions, continued customer loyalty and
industry-leading wireless products and services.
"Verizon finished strong in the first half of 2019 by delivering
solid financial results while transforming the business under the
new operating structure and advancing our leadership in 5G," said
Chairman and CEO Hans Vestberg. "Verizon made history this quarter
by becoming the first carrier in the world to launch 5G mobility.
We are focused on optimizing our next-generation networks and
enhancing the customer experience while we head into the second
half of the year with great momentum."
For second-quarter 2019, Verizon reported EPS of 95 cents,
compared with $1.00 in second-quarter 2018. On an adjusted basis
(non-GAAP), second-quarter 2019 EPS, excluding a special item, was
$1.23, compared with adjusted EPS of $1.20 in second-quarter 2018.
Verizon’s second-quarter 2019 EPS included 28 cents in early debt
redemption costs.
In second-quarter 2019, Verizon's results included the effects
of a reduction in benefits from the adoption of a revenue
recognition standard, primarily due to the deferral of commission
expense, and the adoption of a lease accounting standard. The
combined net impact was a 4 cent year-over-year headwind, which is
included in the year-over-year increase in adjusted EPS.
Consolidated results
Total consolidated operating revenues in
second-quarter 2019 were $32.1 billion, down 0.4 percent from
second-quarter 2018. Wireless service revenue growth was offset by
lower wireless equipment revenue and wireline service
revenue.
Cash flow from operations totaled $15.8 billion in
second-quarter 2019, a decline of approximately $600 million year
over year. Operational improvements in Verizon's businesses were
offset by higher cash taxes and cash payments related to the
Voluntary Separation Program.
First half 2019 capital expenditures totaled $8.0
billion. Verizon's capital expenditures continue to support the
launch and build-out of its 5G Ultra Wideband network, the growth
in data and video traffic on the company's 4G LTE network, the
deployment of significant fiber in markets nationwide and the
upgrade to Verizon's Intelligent Edge Network architecture.
In 2018, Verizon announced a goal to achieve $10
billion in cumulative cash savings by 2021. This initiative has
yielded $4.1 billion of cumulative cash savings since this program
began. At the end of second-quarter 2019, Verizon completed the
third and final phase of its Voluntary Separation Program and has
realized approximately $480 million of expense savings
year-to-date. The company expects additional incremental savings in
third-quarter 2019, and is on track to achieve its cumulative cash
savings goal.
Net income was $4.1 billion in second-quarter 2019.
EBITDA (non-GAAP, earnings before interest, taxes, depreciation and
amortization) totaled approximately $10.8 billion. Consolidated
operating income margin was 24.5 percent in second-quarter 2019,
compared with 20.5 percent in second-quarter 2018. Consolidated
EBITDA margin (non-GAAP) was 33.5 percent in second-quarter 2019,
compared with 34.5 percent in second-quarter 2018. Adjusted EBITDA
margin (non-GAAP) in second-quarter 2019 was 37.7 percent.
Consolidated adjusted EBITDA (non-GAAP) in second-quarter 2019 was
$12.1 billion, an increase of approximately $200 million year over
year.
Consumer results
- Total Verizon Consumer revenues were $22.0 billion, flat year
over year, reflecting continued strong growth in wireless service
revenue and Fios service offerings, offset by declines in wireless
equipment and legacy wireline services.
- Verizon Consumer Group reported 126,000 wireless retail
postpaid net additions in second-quarter 2019, consisting of 73,000
phone net additions and tablet net losses of 134,000, offset by
187,000 other connected device net additions, primarily wearables.
Postpaid smartphone net additions were 209,000, up 17 percent year
over year, driven by a 5 percent year over year increase in phone
gross additions.
- Consumer wireless service revenues increased 2.5 percent in
second-quarter 2019, driven by customer step-ups to higher-priced
plans and an increase in connections per account.
- Total retail postpaid churn was 0.97 percent in second-quarter
2019, and retail postpaid phone churn was 0.72 percent.
- In second-quarter 2019, Verizon Consumer Group reported 28,000
Fios Internet net additions and 52,000 Fios Video net losses,
reflecting the ongoing shift from traditional linear video to
over-the-top offerings. Fios revenues increased by 1.2 percent,
primarily due to the demand for broadband offerings.
- Segment operating income was $7.3 billion, an increase of 3.9
percent year over year, and segment operating income margin was
33.4 percent. Segment EBITDA (non-GAAP) totaled $10.2 billion in
second-quarter 2019, an increase of 1.6 percent year over year.
Segment EBITDA margin (non-GAAP) was 46.5 percent, including
approximately 100 basis points in headwinds from the deferral of
commission expense and the lease accounting standard.
Business results
- Total Verizon Business revenues were $7.8 billion, down 1.1
percent year over year, as growth in wireless services and high
quality fiber products was offset by declines in legacy
products.
- Verizon Business Group reported 325,000 wireless retail
postpaid net additions in second-quarter 2019, consisting of
172,000 phone net additions, 90,000 tablet net additions and 63,000
other connected device additions.
- Total retail postpaid churn was 1.21 percent in second-quarter
2019, and retail postpaid phone churn was 0.97 percent.
- Segment operating income was $1.1 billion, a decrease of 2.7
percent year over year, and segment operating income margin was
13.8 percent. Segment EBITDA (non-GAAP) totaled $2.1 billion in
second-quarter 2019, a decrease of 2.0 percent year over year.
Segment EBITDA margin (non-GAAP) was 27.3 percent, down 20 basis
points year over year due to declines in legacy wireline product
revenues.
Media results
- Total Verizon Media revenues in second-quarter 2019 were $1.8
billion, down 2.9 percent year over year. This is an improvement
from first-quarter 2019, when total Verizon Media revenues were
down 7.2 percent year over year. Gains in native and mobile
advertising continue to be offset by declines in desktop
advertising.
Outlook and guidance
As outlined in Verizon's first-quarter 2019 earnings release,
the company expects the following:
- Low single-digit percentage growth in adjusted 2019 EPS,
excluding the impact of the lease accounting standard.
- Low single-digit percentage growth in full-year consolidated
revenues on a GAAP reported basis.
- Cash taxes to be $2 billion to $3 billion higher than in 2018
due to benefits that were realized in 2018 that are not expected to
repeat in 2019.
- Capital spending for 2019 to be in the range of $17 billion to
$18 billion, including the expanded commercial launch of
5G.
The company now expects the adjusted effective income tax rate
(non-GAAP) for full-year 2019 to be at the lower end of its
previously disclosed range of 24 percent to 26 percent.
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 City, generated revenues of $130.9 billion in 2018. The
company operates America’s most reliable wireless network and the
nation’s premier all-fiber network, and delivers integrated
solutions to businesses worldwide. With brands like Yahoo,
TechCrunch and HuffPost, the company’s media group helps consumers
stay informed and entertained, communicate and transact, while
creating new ways for advertisers and partners to connect.
Verizon’s corporate responsibility prioritizes the environmental,
social and governance issues most relevant to its business and
impact to society.
VERIZON’S ONLINE MEDIA CENTER: News releases, stories, media
contacts and other resources are available at
www.verizon.com/about/news/. News releases are also 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,” “expects,” “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. 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: 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; the inability to implement
our business strategies; and the inability to realize the expected
benefits of strategic transactions.
Media
contacts: |
Kim Ancin |
908.559.3227 |
kimberly.ancin@verizon.com |
|
Eric Wilkens |
908.559.3063 |
eric.wilkens@verizon.com |
|
|
Verizon
Communications Inc. |
Condensed
Consolidated Statements of Income |
|
|
|
|
|
|
|
(dollars in millions, except per share amounts) |
|
|
3 Mos. Ended |
|
3 Mos. Ended |
|
|
|
|
6 Mos. Ended |
|
6 Mos. Ended |
|
|
|
Unaudited |
|
6/30/19 |
|
6/30/18 |
|
% Change |
|
6/30/19 |
|
6/30/18 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Global Enterprise |
|
$ |
2,673 |
|
|
$ |
2,808 |
|
|
(4.8 |
) |
|
$ |
5,364 |
|
|
$ |
5,634 |
|
|
(4.8 |
) |
Small and Medium Business |
|
|
2,785 |
|
|
|
2,642 |
|
|
5.4 |
|
|
|
5,493 |
|
|
|
5,176 |
|
|
6.1 |
|
Public Sector and Other |
|
|
1,492 |
|
|
|
1,437 |
|
|
3.8 |
|
|
|
2,963 |
|
|
|
2,867 |
|
|
3.3 |
|
Wholesale |
|
|
818 |
|
|
|
964 |
|
|
(15.1 |
) |
|
|
1,667 |
|
|
|
1,957 |
|
|
(14.8 |
) |
Total Operating
Revenues |
|
|
7,768 |
|
|
|
7,851 |
|
|
(1.1 |
) |
|
|
15,487 |
|
|
|
15,634 |
|
|
(0.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
|
|
2,581 |
|
|
|
2,660 |
|
|
(3.0 |
) |
|
|
5,172 |
|
|
|
5,370 |
|
|
(3.7 |
) |
Cost of wireless equipment |
|
|
1,109 |
|
|
|
1,101 |
|
|
0.7 |
|
|
|
2,166 |
|
|
|
2,137 |
|
|
1.4 |
|
Selling, general and administrative expense |
|
|
1,961 |
|
|
|
1,930 |
|
|
1.6 |
|
|
|
3,942 |
|
|
|
3,794 |
|
|
3.9 |
|
Depreciation and amortization expense |
|
|
1,046 |
|
|
|
1,059 |
|
|
(1.2 |
) |
|
|
2,088 |
|
|
|
2,118 |
|
|
(1.4 |
) |
Total Operating
Expenses |
|
|
6,697 |
|
|
|
6,750 |
|
|
(0.8 |
) |
|
|
13,368 |
|
|
|
13,419 |
|
|
(0.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income |
|
$ |
1,071 |
|
|
$ |
1,101 |
|
|
(2.7 |
) |
|
$ |
2,119 |
|
|
$ |
2,215 |
|
|
(4.3 |
) |
Operating Income
Margin |
|
|
13.8 |
% |
|
|
14.0 |
% |
|
|
|
|
13.7 |
% |
|
|
14.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
EBITDA |
|
$ |
2,117 |
|
|
$ |
2,160 |
|
|
(2.0 |
) |
|
$ |
4,207 |
|
|
$ |
4,333 |
|
|
(2.9 |
) |
Segment EBITDA
Margin |
|
|
27.3 |
% |
|
|
27.5 |
% |
|
|
|
|
27.2 |
% |
|
|
27.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes: |
|
|
|
|
|
|
|
|
|
|
|
|
The segment
financial results and metrics above are adjusted to exclude the
effects of special items, as the Company’s chief operating decision
maker excludes these items in assessing segment performance. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain
intersegment transactions with corporate entities have not been
eliminated. |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Not
meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Verizon
Communications Inc. |
|
|
Condensed
Consolidated Balance Sheets |
|
|
|
|
|
|
|
|
|
|
|
(dollars in millions) |
Unaudited |
6/30/19 |
|
12/31/18 |
|
$ Change |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,949 |
|
|
$ |
2,745 |
|
|
$ |
(796 |
) |
Accounts receivable, net |
|
|
24,926 |
|
|
|
25,102 |
|
|
|
(176 |
) |
Inventories |
|
|
1,167 |
|
|
|
1,336 |
|
|
|
(169 |
) |
Prepaid expenses and other |
|
|
5,266 |
|
|
|
5,453 |
|
|
|
(187 |
) |
Total current assets |
|
|
33,308 |
|
|
|
34,636 |
|
|
|
(1,328 |
) |
|
|
|
|
|
|
|
Property, plant and equipment |
|
|
257,395 |
|
|
|
252,835 |
|
|
|
4,560 |
|
Less accumulated depreciation |
|
|
169,577 |
|
|
|
163,549 |
|
|
|
6,028 |
|
Property, plant and equipment, net |
|
|
87,818 |
|
|
|
89,286 |
|
|
|
(1,468 |
) |
Investments in unconsolidated businesses |
|
|
650 |
|
|
|
671 |
|
|
|
(21 |
) |
Wireless licenses |
|
|
94,333 |
|
|
|
94,130 |
|
|
|
203 |
|
Goodwill |
|
|
24,632 |
|
|
|
24,614 |
|
|
|
18 |
|
Other intangible assets, net |
|
|
9,474 |
|
|
|
9,775 |
|
|
|
(301 |
) |
Operating lease right-of-use assets |
|
|
22,467 |
|
|
|
0 |
|
|
|
22,467 |
|
Other assets |
|
|
10,426 |
|
|
|
11,717 |
|
|
|
(1,291 |
) |
Total
assets |
|
$ |
283,108 |
|
|
$ |
264,829 |
|
|
$ |
18,279 |
|
|
|
|
|
|
|
|
Liabilities and
Equity |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Debt maturing within one year |
|
$ |
8,773 |
|
|
$ |
7,190 |
|
|
$ |
1,583 |
|
Accounts payable and accrued liabilities |
|
|
17,633 |
|
|
|
22,501 |
|
|
|
(4,868 |
) |
Current operating lease liabilities |
|
|
3,154 |
|
|
|
0 |
|
|
|
3,154 |
|
Other current liabilities |
|
|
8,654 |
|
|
|
8,239 |
|
|
|
415 |
|
Total current liabilities |
|
|
38,214 |
|
|
|
37,930 |
|
|
|
284 |
|
|
|
|
|
|
|
|
Long-term debt |
|
|
104,598 |
|
|
|
105,873 |
|
|
|
(1,275 |
) |
Employee benefit obligations |
|
|
18,040 |
|
|
|
18,599 |
|
|
|
(559 |
) |
Deferred income taxes |
|
|
34,225 |
|
|
|
33,795 |
|
|
|
430 |
|
Non-current operating lease liabilities |
|
|
18,254 |
|
|
|
0 |
|
|
|
18,254 |
|
Other liabilities |
|
|
11,830 |
|
|
|
13,922 |
|
|
|
(2,092 |
) |
Total long-term liabilities |
|
|
186,947 |
|
|
|
172,189 |
|
|
|
14,758 |
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
Common stock |
|
|
429 |
|
|
|
429 |
|
|
|
0 |
|
Additional paid in capital |
|
|
13,419 |
|
|
|
13,437 |
|
|
|
(18 |
) |
Retained earnings |
|
|
47,945 |
|
|
|
43,542 |
|
|
|
4,403 |
|
Accumulated other comprehensive income |
|
|
1,447 |
|
|
|
2,370 |
|
|
|
(923 |
) |
Common stock in treasury, at cost |
|
|
(6,823 |
) |
|
|
(6,986 |
) |
|
|
163 |
|
Deferred compensation – employee stock ownership plans and
other |
|
|
165 |
|
|
|
353 |
|
|
|
(188 |
) |
Noncontrolling interests |
|
|
1,365 |
|
|
|
1,565 |
|
|
|
(200 |
) |
Total equity |
|
|
57,947 |
|
|
|
54,710 |
|
|
|
3,237 |
|
Total liabilities and
equity |
|
$ |
283,108 |
|
|
$ |
264,829 |
|
|
$ |
18,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Verizon
-Selected Financial and Operating Statistics |
|
|
(dollars in millions, except per share amounts) |
|
|
|
|
|
|
|
|
|
Unaudited |
6/30/19 |
|
12/31/18 |
|
|
|
|
|
|
|
|
|
Total debt |
|
$ |
113,371 |
|
|
$ |
113,063 |
|
|
|
Net debt |
|
$ |
111,422 |
|
|
$ |
110,318 |
|
|
|
Net unsecured debt |
|
$ |
100,170 |
|
|
$ |
100,242 |
|
|
|
Net debt / Consolidated
Adjusted EBITDA(1) |
|
2.3x |
|
2.3x |
|
|
Net unsecured debt /
Consolidated Adjusted EBITDA(1) |
|
2.1x |
|
2.1x |
|
|
Common shares outstanding end
of period (in millions) |
|
|
4,136 |
|
|
|
4,132 |
|
|
|
Total employees (‘000) |
|
|
135.9 |
|
|
|
144.5 |
|
|
|
Quarterly cash dividends
declared per common share |
|
$ |
0.6025 |
|
|
$ |
0.6025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes: |
|
|
|
|
|
|
(1) Consolidated
adjusted EBITDA excludes the effects of non-operational items and
special items. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Verizon
Communications Inc. |
Condensed
Consolidated Statements of Cash Flows |
|
|
|
|
|
|
|
|
|
|
(dollars in millions) |
|
|
6 Mos. Ended |
|
6 Mos. Ended |
|
|
Unaudited |
6/30/19 |
|
6/30/18 |
|
$ Change |
|
|
|
|
|
|
|
Cash Flows from
Operating Activities |
|
|
|
|
|
|
Net Income |
|
$ |
9,234 |
|
|
$ |
8,912 |
|
|
$ |
322 |
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
|
|
|
Depreciation and amortization expense |
|
|
8,463 |
|
|
|
8,674 |
|
|
|
(211 |
) |
Employee retirement benefits |
|
|
(294 |
) |
|
|
(300 |
) |
|
|
6 |
|
Deferred income taxes |
|
|
588 |
|
|
|
1,354 |
|
|
|
(766 |
) |
Provision for uncollectible accounts |
|
|
738 |
|
|
|
462 |
|
|
|
276 |
|
Equity in losses of unconsolidated businesses, net of dividends
received |
|
|
50 |
|
|
|
268 |
|
|
|
(218 |
) |
Changes in current assets and liabilities, net of effects from
acquisition/disposition of businesses |
|
|
(4,593 |
) |
|
|
(1,538 |
) |
|
|
(3,055 |
) |
Discretionary employee
benefits contributions |
|
|
(300 |
) |
|
|
(1,679 |
) |
|
|
1,379 |
|
Other, net |
|
|
1,950 |
|
|
|
280 |
|
|
|
1,670 |
|
Net cash provided by operating
activities |
|
|
15,836 |
|
|
|
16,433 |
|
|
|
(597 |
) |
|
|
|
|
|
|
|
Cash Flows from
Investing Activities |
|
|
|
|
|
|
Capital expenditures
(including capitalized software) |
|
|
(7,967 |
) |
|
|
(7,838 |
) |
|
|
(129 |
) |
Acquisitions of businesses,
net of cash acquired |
|
|
(28 |
) |
|
|
(38 |
) |
|
|
10 |
|
Acquisitions of wireless
licenses |
|
|
(199 |
) |
|
|
(1,155 |
) |
|
|
956 |
|
Other, net |
|
|
(395 |
) |
|
|
303 |
|
|
|
(698 |
) |
Net cash used in investing
activities |
|
|
(8,589 |
) |
|
|
(8,728 |
) |
|
|
139 |
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities |
|
|
|
|
|
|
Proceeds from long-term
borrowings |
|
|
6,237 |
|
|
|
4,584 |
|
|
|
1,653 |
|
Proceeds from asset-backed
long-term borrowings |
|
|
3,982 |
|
|
|
1,716 |
|
|
|
2,266 |
|
Repayments of long-term
borrowings and finance lease obligations |
|
|
(9,630 |
) |
|
|
(6,568 |
) |
|
|
(3,062 |
) |
Repayments of asset-backed
long-term borrowings |
|
|
(2,817 |
) |
|
|
(2,000 |
) |
|
|
(817 |
) |
Dividends paid |
|
|
(4,981 |
) |
|
|
(4,845 |
) |
|
|
(136 |
) |
Other, net |
|
|
(834 |
) |
|
|
(752 |
) |
|
|
(82 |
) |
Net cash used in financing
activities |
|
|
(8,043 |
) |
|
|
(7,865 |
) |
|
|
(178 |
) |
|
|
|
|
|
|
|
Decrease in cash, cash
equivalents and restricted cash |
|
|
(796 |
) |
|
|
(160 |
) |
|
|
(636 |
) |
Cash, cash equivalents
and restricted cash, beginning of period |
|
|
3,916 |
|
|
|
2,888 |
|
|
|
1,028 |
|
Cash, cash equivalents
and restricted cash, end of period |
|
$ |
3,120 |
|
|
$ |
2,728 |
|
|
$ |
392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Verizon
Communications Inc. |
Consumer
- Selected Financial Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Mos. Ended |
|
3 Mos. Ended |
|
|
|
6 Mos. Ended |
|
6 Mos. Ended |
|
|
Unaudited |
6/30/19 |
|
6/30/18 |
|
% Change |
|
6/30/19 |
|
6/30/18 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Service |
|
$ |
16,350 |
|
|
$ |
16,049 |
|
|
1.9 |
|
|
$ |
32,609 |
|
|
$ |
31,873 |
|
|
2.3 |
|
Wireless equipment |
|
|
3,903 |
|
|
|
4,251 |
|
|
(8.2 |
) |
|
|
8,069 |
|
|
|
8,521 |
|
|
(5.3 |
) |
Other |
|
|
1,742 |
|
|
|
1,703 |
|
|
2.3 |
|
|
|
3,465 |
|
|
|
3,236 |
|
|
7.1 |
|
Total Operating
Revenues |
|
|
21,995 |
|
|
|
22,003 |
|
|
- |
|
|
|
44,143 |
|
|
|
43,630 |
|
|
1.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
|
|
3,847 |
|
|
|
3,842 |
|
|
0.1 |
|
|
|
7,726 |
|
|
|
7,615 |
|
|
1.5 |
|
Cost of wireless equipment |
|
|
3,909 |
|
|
|
4,296 |
|
|
(9.0 |
) |
|
|
8,051 |
|
|
|
8,569 |
|
|
(6.0 |
) |
Selling, general and administrative expense |
|
|
4,022 |
|
|
|
3,808 |
|
|
5.6 |
|
|
|
8,005 |
|
|
|
7,479 |
|
|
7.0 |
|
Depreciation and amortization expense |
|
|
2,881 |
|
|
|
2,997 |
|
|
(3.9 |
) |
|
|
5,775 |
|
|
|
5,972 |
|
|
(3.3 |
) |
Total Operating
Expenses |
|
$ |
14,659 |
|
|
$ |
14,943 |
|
|
(1.9 |
) |
|
$ |
29,557 |
|
|
$ |
29,635 |
|
|
(0.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income |
|
$ |
7,336 |
|
|
$ |
7,060 |
|
|
3.9 |
|
|
$ |
14,586 |
|
|
$ |
13,995 |
|
|
4.2 |
|
Operating Income
Margin |
|
|
33.4 |
% |
|
|
32.1 |
% |
|
|
|
|
33.0 |
% |
|
|
32.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
EBITDA |
|
$ |
10,217 |
|
|
$ |
10,057 |
|
|
1.6 |
|
|
$ |
20,361 |
|
|
$ |
19,967 |
|
|
2.0 |
|
Segment EBITDA
Margin |
|
|
46.5 |
% |
|
|
45.7 |
% |
|
|
|
|
46.1 |
% |
|
|
45.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes: |
|
|
|
|
|
|
|
|
|
|
|
The segment
financial results and metrics above are adjusted to exclude the
effects of special items, as the Company’s chief operating decision
maker excludes these items in assessing segment
performance. |
|
|
|
|
|
|
|
|
|
|
|
|
Certain
intersegment transactions with corporate entities have not been
eliminated. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Verizon
Communications Inc. |
Consumer - Selected Operating Statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
6/30/19 |
|
6/30/18 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Connections
(‘000): |
|
|
|
|
|
|
|
|
|
|
|
|
Wireless retail postpaid connections |
|
|
|
|
|
|
|
|
89,630 |
|
|
|
88,984 |
|
|
0.7 |
|
Wireless retail prepaid connections |
|
|
|
|
|
|
|
|
4,266 |
|
|
|
4,832 |
|
|
(11.7 |
) |
Total wireless retail connections |
|
|
|
|
|
|
|
|
93,896 |
|
|
|
93,816 |
|
|
0.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fios video connections |
|
|
|
|
|
|
|
|
4,270 |
|
|
|
4,487 |
|
|
(4.8 |
) |
Fios Internet connections |
|
|
|
|
|
|
|
|
5,837 |
|
|
|
5,663 |
|
|
3.1 |
|
Fios digital voice residence connections |
|
|
|
|
|
|
|
|
3,725 |
|
|
|
3,863 |
|
|
(3.6 |
) |
Fios digital connections |
|
|
|
|
|
|
|
|
13,832 |
|
|
|
14,013 |
|
|
(1.3 |
) |
Broadband connections |
|
|
|
|
|
|
|
|
6,474 |
|
|
|
6,447 |
|
|
0.4 |
|
Voice connections |
|
|
|
|
|
|
|
|
6,058 |
|
|
|
6,631 |
|
|
(8.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Mos. Ended |
|
3 Mos. Ended |
|
|
|
6 Mos. Ended |
|
6 Mos. Ended |
|
|
Unaudited |
6/30/19 |
|
6/30/18 |
|
% Change |
|
6/30/19 |
|
6/30/18 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Additions
(‘000): |
|
|
|
|
|
|
|
|
|
|
|
|
Wireless retail postpaid |
|
|
2,725 |
|
|
|
2,617 |
|
|
4.1 |
|
|
|
5,439 |
|
|
|
5,251 |
|
|
3.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Additions Detail
(‘000)
(1): |
|
|
|
|
|
|
|
|
|
|
|
|
Wireless retail postpaid |
|
|
126 |
|
|
|
147 |
|
|
(14.3 |
) |
|
|
(75 |
) |
|
|
92 |
|
|
* |
Wireless retail prepaid |
|
|
(213 |
) |
|
|
(236 |
) |
|
9.7 |
|
|
|
(389 |
) |
|
|
(571 |
) |
|
31.9 |
|
Total wireless retail |
|
|
(87 |
) |
|
|
(89 |
) |
|
2.2 |
|
|
|
(464 |
) |
|
|
(479 |
) |
|
3.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless retail postpaid phones |
|
|
73 |
|
|
|
17 |
|
|
* |
|
|
(90 |
) |
|
|
(136 |
) |
|
33.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fios video |
|
|
(52 |
) |
|
|
(38 |
) |
|
(36.8 |
) |
|
|
(107 |
) |
|
|
(61 |
) |
|
(75.4 |
) |
Fios Internet |
|
|
28 |
|
|
|
36 |
|
|
(22.2 |
) |
|
|
76 |
|
|
|
98 |
|
|
(22.4 |
) |
Fios digital voice residence |
|
|
(32 |
) |
|
|
(28 |
) |
|
(14.3 |
) |
|
|
(77 |
) |
|
|
(42 |
) |
|
(83.3 |
) |
Fios digital |
|
|
(56 |
) |
|
|
(30 |
) |
|
(86.7 |
) |
|
|
(108 |
) |
|
|
(5 |
) |
|
* |
Broadband |
|
|
(2 |
) |
|
|
(7 |
) |
|
71.4 |
|
|
|
14 |
|
|
|
6 |
|
|
* |
Voice |
|
|
(126 |
) |
|
|
(155 |
) |
|
18.7 |
|
|
|
(274 |
) |
|
|
(297 |
) |
|
7.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Churn
Rate: |
|
|
|
|
|
|
|
|
|
|
|
|
Wireless retail postpaid |
|
|
0.97 |
% |
|
|
0.93 |
% |
|
|
|
|
1.03 |
% |
|
|
0.97 |
% |
|
|
Wireless retail postpaid phones |
|
|
0.72 |
% |
|
|
0.71 |
% |
|
|
|
|
0.76 |
% |
|
|
0.74 |
% |
|
|
Wireless retail |
|
|
1.23 |
% |
|
|
1.19 |
% |
|
|
|
|
1.28 |
% |
|
|
1.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Statistics (in
millions): |
|
|
|
|
|
|
|
|
|
|
|
|
Wireless service revenue |
|
$ |
13,456 |
|
|
$ |
13,122 |
|
|
2.5 |
|
|
$ |
26,813 |
|
|
$ |
26,003 |
|
|
3.1 |
|
Fios revenues |
|
$ |
2,772 |
|
|
$ |
2,738 |
|
|
1.2 |
|
|
$ |
5,536 |
|
|
$ |
5,472 |
|
|
1.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Wireless
Statistics: |
|
|
|
|
|
|
|
|
|
|
|
|
Wireless retail postpaid ARPA (2) |
|
$ |
118.15 |
|
|
$ |
115.53 |
|
|
2.3 |
|
|
$ |
117.80 |
|
|
$ |
114.49 |
|
|
2.9 |
|
Wireless retail postpaid upgrade rate |
|
|
4.3 |
% |
|
|
5.1 |
% |
|
|
|
|
|
|
|
|
Wireless retail postpaid accounts (‘000) (3) |
|
|
|
|
|
|
|
|
33,924 |
|
|
|
34,045 |
|
|
(0.4 |
) |
Wireless retail postpaid connections per account
(3) |
|
|
|
|
|
|
|
|
2.64 |
|
|
|
2.61 |
|
|
1.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total wireless Internet postpaid base (3) |
|
|
|
|
|
|
|
|
16.2 |
% |
|
|
15.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes: |
|
|
|
|
|
|
|
|
|
|
|
(1) Connection net additions exclude acquisitions and
adjustments. |
(2) Wireless retail postpaid ARPA - average service revenue
per account from retail postpaid accounts. |
(3) Statistics presented as of end of period. |
|
|
|
|
|
|
|
|
|
|
|
|
|
The segment financial results and metrics above are adjusted to
exclude the effects of special items, as the Company’s chief
operating decision maker excludes these items in assessing segment
performance. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain intersegment transactions with corporate entities have not
been eliminated. |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Not
meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Verizon
Communications Inc. |
Business - Selected Financial Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Mos. Ended |
|
3 Mos. Ended |
|
|
|
6 Mos. Ended |
|
6 Mos. Ended |
|
|
Unaudited |
6/30/19 |
|
6/30/18 |
|
% Change |
|
6/30/19 |
|
6/30/18 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Global Enterprise |
|
$ |
2,673 |
|
|
$ |
2,808 |
|
|
(4.8 |
) |
|
$ |
5,364 |
|
|
$ |
5,634 |
|
|
(4.8 |
) |
Small and Medium Business |
|
|
2,785 |
|
|
|
2,642 |
|
|
5.4 |
|
|
|
5,493 |
|
|
|
5,176 |
|
|
6.1 |
|
Public Sector and Other |
|
|
1,492 |
|
|
|
1,437 |
|
|
3.8 |
|
|
|
2,963 |
|
|
|
2,867 |
|
|
3.3 |
|
Wholesale |
|
|
818 |
|
|
|
964 |
|
|
(15.1 |
) |
|
|
1,667 |
|
|
|
1,957 |
|
|
(14.8 |
) |
Total Operating
Revenues |
|
|
7,768 |
|
|
|
7,851 |
|
|
(1.1 |
) |
|
|
15,487 |
|
|
|
15,634 |
|
|
(0.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
|
|
2,581 |
|
|
|
2,660 |
|
|
(3.0 |
) |
|
|
5,172 |
|
|
|
5,370 |
|
|
(3.7 |
) |
Cost of wireless equipment |
|
|
1,109 |
|
|
|
1,101 |
|
|
0.7 |
|
|
|
2,166 |
|
|
|
2,137 |
|
|
1.4 |
|
Selling, general and administrative expense |
|
|
1,961 |
|
|
|
1,930 |
|
|
1.6 |
|
|
|
3,942 |
|
|
|
3,794 |
|
|
3.9 |
|
Depreciation and amortization expense |
|
|
1,046 |
|
|
|
1,059 |
|
|
(1.2 |
) |
|
|
2,088 |
|
|
|
2,118 |
|
|
(1.4 |
) |
Total Operating
Expenses |
|
|
6,697 |
|
|
|
6,750 |
|
|
(0.8 |
) |
|
|
13,368 |
|
|
|
13,419 |
|
|
(0.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income |
|
$ |
1,071 |
|
|
$ |
1,101 |
|
|
(2.7 |
) |
|
$ |
2,119 |
|
|
$ |
2,215 |
|
|
(4.3 |
) |
Operating Income
Margin |
|
|
13.8 |
% |
|
|
14.0 |
% |
|
|
|
|
13.7 |
% |
|
|
14.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
EBITDA |
|
$ |
2,117 |
|
|
$ |
2,160 |
|
|
(2.0 |
) |
|
$ |
4,207 |
|
|
$ |
4,333 |
|
|
(2.9 |
) |
Segment EBITDA
Margin |
|
|
27.3 |
% |
|
|
27.5 |
% |
|
|
|
|
27.2 |
% |
|
|
27.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes: |
The segment
financial results and metrics above are adjusted to exclude the
effects of special items, as the Company’s chief operating decision
maker excludes these items in assessing segment performance. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain
intersegment transactions with corporate entities have not been
eliminated. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Verizon
Communications Inc. |
Business - Selected Operating Statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
6/30/19 |
|
6/30/18 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Connections
(‘000): |
|
|
|
|
|
|
|
|
|
|
|
|
Wireless retail postpaid connections |
|
|
|
|
|
|
|
|
24,221 |
|
|
|
22,638 |
|
|
7.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fios video connections |
|
|
|
|
|
|
|
|
76 |
|
|
|
73 |
|
|
4.1 |
|
Fios Internet connections |
|
|
|
|
|
|
|
|
316 |
|
|
|
296 |
|
|
6.8 |
|
Fios digital connections |
|
|
|
|
|
|
|
|
392 |
|
|
|
369 |
|
|
6.2 |
|
Broadband connections |
|
|
|
|
|
|
|
|
494 |
|
|
|
509 |
|
|
(2.9 |
) |
Voice connections |
|
|
|
|
|
|
|
|
5,163 |
|
|
|
5,639 |
|
|
(8.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Mos. Ended |
|
3 Mos. Ended |
|
|
|
6 Mos. Ended |
|
6 Mos. Ended |
|
|
Unaudited |
|
6/30/19 |
|
6/30/18 |
|
% Change |
|
6/30/19 |
|
6/30/18 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Additions
('000): |
|
|
|
|
|
|
|
|
|
|
|
|
Wireless retail postpaid |
|
|
1,199 |
|
|
|
1,162 |
|
|
3.2 |
|
|
|
2,342 |
|
|
|
2,242 |
|
|
4.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Add Detail
(‘000)
(1): |
|
|
|
|
|
|
|
|
|
|
|
|
Wireless retail postpaid |
|
|
325 |
|
|
|
384 |
|
|
(15.4 |
) |
|
|
587 |
|
|
|
699 |
|
|
(16.0 |
) |
Wireless retail postpaid phones |
|
|
172 |
|
|
|
182 |
|
|
(5.5 |
) |
|
|
291 |
|
|
|
311 |
|
|
(6.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fios video |
|
|
- |
|
|
|
1 |
|
|
* |
|
|
2 |
|
|
|
2 |
|
|
- |
|
Fios Internet |
|
|
6 |
|
|
|
7 |
|
|
(14.3 |
) |
|
|
10 |
|
|
|
11 |
|
|
(9.1 |
) |
Fios digital |
|
|
6 |
|
|
|
8 |
|
|
(25.0 |
) |
|
|
12 |
|
|
|
13 |
|
|
(7.7 |
) |
Broadband |
|
|
(3 |
) |
|
|
(3 |
) |
|
- |
|
|
|
(7 |
) |
|
|
(9 |
) |
|
22.2 |
|
Voice |
|
|
(105 |
) |
|
|
(130 |
) |
|
19.2 |
|
|
|
(237 |
) |
|
|
(254 |
) |
|
6.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Churn
Rate: |
|
|
|
|
|
|
|
|
|
|
|
|
Wireless retail postpaid |
|
|
1.21 |
% |
|
|
1.16 |
% |
|
|
|
|
1.23 |
% |
|
|
1.16 |
% |
|
|
Wireless retail postpaid phones |
|
|
0.97 |
% |
|
|
0.96 |
% |
|
|
|
|
0.99 |
% |
|
|
0.96 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Statistics (in
millions): |
|
|
|
|
|
|
|
|
|
|
|
|
Wireless service revenue |
|
$ |
2,775 |
|
|
$ |
2,615 |
|
|
6.1 |
|
|
$ |
5,469 |
|
|
$ |
5,116 |
|
|
6.9 |
|
Fios revenues |
|
$ |
239 |
|
|
$ |
218 |
|
|
9.6 |
|
|
$ |
482 |
|
|
$ |
435 |
|
|
10.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operating
Statistics: |
|
|
|
|
|
|
|
|
|
|
|
|
Wireless retail postpaid upgrade rate |
|
|
4.2 |
% |
|
|
4.6 |
% |
|
|
|
|
|
|
|
|
Total wireless Internet postpaid base (2) |
|
|
|
|
|
|
|
|
33.5 |
% |
|
|
33.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 special items, as the Company’s chief
operating decision maker excludes these items in assessing segment
performance. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain intersegment transactions with corporate entities have not
been eliminated. |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Verizon
Communications Inc. |
|
|
Supplemental Information - Wireless Historical Financial
Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
supplemental schedule contains historical wireless segment results
and is provided to help investors understand trends in our new
segment results.
|
|
(dollars in millions) |
Unaudited |
|
3 Mos. Ended
6/30/19 |
|
3 Mos. Ended
6/30/18 |
|
%
Change |
|
6 Mos. Ended
6/30/19 |
|
6 Mos. Ended
6/30/18 |
|
%
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Service |
|
$ |
16,244 |
|
|
$ |
15,754 |
|
|
3.1 |
|
|
$ |
32,316 |
|
|
$ |
31,156 |
|
|
3.7 |
|
Equipment |
|
|
4,720 |
|
|
|
5,044 |
|
|
(6.4 |
) |
|
|
9,651 |
|
|
|
10,084 |
|
|
(4.3 |
) |
Other |
|
|
1,718 |
|
|
|
1,651 |
|
|
4.1 |
|
|
|
3,415 |
|
|
|
3,109 |
|
|
9.8 |
|
Total Operating
Revenues |
|
|
22,682 |
|
|
|
22,449 |
|
|
1.0 |
|
|
|
45,382 |
|
|
|
44,349 |
|
|
2.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
|
|
2,422 |
|
|
|
2,335 |
|
|
3.7 |
|
|
|
4,878 |
|
|
|
4,550 |
|
|
7.2 |
|
Cost of equipment |
|
|
5,019 |
|
|
|
5,397 |
|
|
(7.0 |
) |
|
|
10,217 |
|
|
|
10,706 |
|
|
(4.6 |
) |
Selling, general and administrative expense |
|
|
4,318 |
|
|
|
3,984 |
|
|
8.4 |
|
|
|
8,599 |
|
|
|
7,883 |
|
|
9.1 |
|
Depreciation and amortization expense |
|
|
2,282 |
|
|
|
2,459 |
|
|
(7.2 |
) |
|
|
4,581 |
|
|
|
4,887 |
|
|
(6.3 |
) |
Total Operating
Expenses |
|
|
14,041 |
|
|
|
14,175 |
|
|
(0.9 |
) |
|
|
28,275 |
|
|
|
28,026 |
|
|
0.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income |
|
$ |
8,641 |
|
|
$ |
8,274 |
|
|
4.4 |
|
|
$ |
17,107 |
|
|
$ |
16,323 |
|
|
4.8 |
|
Operating Income
Margin |
|
|
38.1 |
% |
|
|
36.9 |
% |
|
|
|
|
37.7 |
% |
|
|
36.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
EBITDA |
|
$ |
10,923 |
|
|
$ |
10,733 |
|
|
1.8 |
|
|
$ |
21,688 |
|
|
$ |
21,210 |
|
|
2.3 |
|
Segment EBITDA
Margin |
|
|
48.2 |
% |
|
|
47.8 |
% |
|
|
|
|
47.8 |
% |
|
|
47.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes: |
|
|
|
|
|
|
|
|
|
|
|
|
The segment financial results and metrics above are adjusted to
exclude the effects of special items. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain
intersegment transactions with corporate entities have not been
eliminated. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Verizon
Communications Inc. |
|
|
|
|
|
|
|
|
|
|
|
Supplemental Information - Wireless Historical Operating
Statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
supplemental schedule contains historical wireless segment results
and is provided to help investors understand trends in our new
segment results.
|
|
Unaudited |
|
6/30/19 |
|
6/30/18 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Connections
(‘000) |
|
|
|
|
|
|
|
|
|
|
|
|
Retail postpaid |
|
|
|
|
|
|
|
|
113,851 |
|
|
|
111,622 |
|
|
2.0 |
|
Retail prepaid |
|
|
|
|
|
|
|
|
4,266 |
|
|
|
4,832 |
|
|
(11.7 |
) |
Total retail |
|
|
|
|
|
|
|
|
118,117 |
|
|
|
116,454 |
|
|
1.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited |
|
3 Mos. Ended
6/30/19 |
|
3 Mos. Ended
6/30/18 |
|
%
Change |
|
6 Mos. Ended
6/30/19 |
|
6 Mos. Ended
6/30/18 |
|
%
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Add Detail
(‘000) (1) |
|
|
|
|
|
|
|
|
|
|
|
|
Retail postpaid |
|
|
451 |
|
|
|
531 |
|
|
(15.1 |
) |
|
|
512 |
|
|
|
791 |
|
|
(35.3 |
) |
Retail prepaid |
|
|
(213 |
) |
|
|
(236 |
) |
|
9.7 |
|
|
|
(389 |
) |
|
|
(571 |
) |
|
31.9 |
|
Total retail |
|
|
238 |
|
|
|
295 |
|
|
(19.3 |
) |
|
|
123 |
|
|
|
220 |
|
|
(44.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Account
Statistics |
|
|
|
|
|
|
|
|
|
|
|
|
Retail postpaid accounts
(‘000) (2) |
|
|
|
|
|
|
|
|
35,346 |
|
|
|
35,309 |
|
|
0.1 |
|
Retail postpaid connections
per account (2) |
|
|
|
|
|
|
|
|
3.22 |
|
|
|
3.16 |
|
|
1.9 |
|
Retail postpaid ARPA (3)
(4) |
|
$ |
137.80 |
|
|
$ |
134.56 |
|
|
2.4 |
|
|
$ |
137.24 |
|
|
$ |
133.13 |
|
|
3.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Churn
Detail |
|
|
|
|
|
|
|
|
|
|
|
|
Retail postpaid |
|
|
1.02 |
% |
|
|
0.97 |
% |
|
|
|
|
1.07 |
% |
|
|
1.01 |
% |
|
|
Retail |
|
|
1.22 |
% |
|
|
1.18 |
% |
|
|
|
|
1.27 |
% |
|
|
1.23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Postpaid
Connection Statistics (2) |
|
|
|
|
|
|
|
|
|
|
|
|
Total smartphone postpaid phone base |
|
|
|
|
|
|
|
|
93.1 |
% |
|
|
91.2 |
% |
|
|
Total Internet postpaid base |
|
|
|
|
|
|
|
|
19.8 |
% |
|
|
19.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes: |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Connection net additions exclude acquisitions and
adjustments. |
(2) Statistics presented as of end of period. |
(3) Wireless retail postpaid ARPA - average service revenue
per account from retail postpaid accounts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
The segment financial results and metrics above are adjusted to
exclude the effects of special items. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain intersegment transactions with corporate entities have not
been eliminated. |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Verizon
Communications Inc. |
Supplemental Information - Wireline Historical Financial
Results |
|
The following supplemental schedule contains historical wireline
segment results and is provided to help investors understand trends
in our new segment results. |
|
(dollars in millions) |
Unaudited |
|
3 Mos. Ended
6/30/19 |
|
3 Mos. Ended
6/30/18 |
|
%
Change |
|
6 Mos. Ended
6/30/19 |
|
6 Mos. Ended
6/30/18 |
|
%
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Markets |
|
$ |
3,120 |
|
|
$ |
3,132 |
|
|
(0.4 |
) |
|
$ |
6,273 |
|
|
$ |
6,282 |
|
|
(0.1 |
) |
Enterprise Solutions |
|
|
2,084 |
|
|
|
2,211 |
|
|
(5.7 |
) |
|
|
4,224 |
|
|
|
4,451 |
|
|
(5.1 |
) |
Partner Solutions |
|
|
1,043 |
|
|
|
1,200 |
|
|
(13.1 |
) |
|
|
2,118 |
|
|
|
2,428 |
|
|
(12.8 |
) |
Business Markets |
|
|
820 |
|
|
|
850 |
|
|
(3.5 |
) |
|
|
1,648 |
|
|
|
1,721 |
|
|
(4.2 |
) |
Other |
|
|
59 |
|
|
|
66 |
|
|
(10.6 |
) |
|
|
127 |
|
|
|
134 |
|
|
(5.2 |
) |
Total Operating
Revenues |
|
|
7,126 |
|
|
|
7,459 |
|
|
(4.5 |
) |
|
|
14,390 |
|
|
|
15,016 |
|
|
(4.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
|
|
4,197 |
|
|
|
4,377 |
|
|
(4.1 |
) |
|
|
8,383 |
|
|
|
8,852 |
|
|
(5.3 |
) |
Selling, general and administrative expense |
|
|
1,553 |
|
|
|
1,577 |
|
|
(1.5 |
) |
|
|
3,159 |
|
|
|
3,056 |
|
|
3.4 |
|
Depreciation and amortization expense |
|
|
1,566 |
|
|
|
1,524 |
|
|
2.8 |
|
|
|
3,126 |
|
|
|
3,058 |
|
|
2.2 |
|
Total Operating
Expenses |
|
|
7,316 |
|
|
|
7,478 |
|
|
(2.2 |
) |
|
|
14,668 |
|
|
|
14,966 |
|
|
(2.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) |
|
$ |
(190 |
) |
|
$ |
(19 |
) |
|
* |
|
$ |
(278 |
) |
|
$ |
50 |
|
|
* |
Operating Income
(Loss) Margin |
|
|
(2.7 |
)% |
|
|
(0.3 |
)% |
|
|
|
|
(1.9 |
)% |
|
|
0.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
EBITDA |
|
$ |
1,376 |
|
|
$ |
1,505 |
|
|
(8.6 |
) |
|
$ |
2,848 |
|
|
$ |
3,108 |
|
|
(8.4 |
) |
Segment EBITDA
Margin |
|
|
19.3 |
% |
|
|
20.2 |
% |
|
|
|
|
19.8 |
% |
|
|
20.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
The segment
financial results and metrics above are adjusted to exclude the
effects of special items. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain
intersegment transactions with corporate entities have not been
eliminated. |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Not
meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Verizon
Communications Inc. |
Supplemental Information - Wireline Historical Operating
Statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following supplemental schedule contains historical wireline
segment results and is provided to help investors understand trends
in our new segment results. |
|
Unaudited |
|
|
|
|
|
|
|
6/30/2019 |
|
6/30/2018 |
|
%
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Connections
(‘000) |
|
|
|
|
|
|
|
|
|
|
|
|
Fios video connections |
|
|
|
|
|
|
|
|
4,346 |
|
|
|
4,560 |
|
|
(4.7 |
) |
Fios Internet connections |
|
|
|
|
|
|
|
|
6,153 |
|
|
|
5,959 |
|
|
3.3 |
|
Fios digital voice residence connections |
|
|
|
|
|
|
|
|
3,725 |
|
|
|
3,863 |
|
|
(3.6 |
) |
Fios digital connections |
|
|
|
|
|
|
|
|
14,224 |
|
|
|
14,382 |
|
|
(1.1 |
) |
Broadband connections |
|
|
|
|
|
|
|
|
6,968 |
|
|
|
6,956 |
|
|
0.2 |
|
Voice connections |
|
|
|
|
|
|
|
|
11,221 |
|
|
|
12,270 |
|
|
(8.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited |
|
3 Mos. Ended
6/30/19 |
|
3 Mos. Ended
6/30/18 |
|
%
Change |
|
6 Mos. Ended
6/30/19 |
|
6 Mos. Ended
6/30/18 |
|
%
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Add Detail
(‘000) |
|
|
|
|
|
|
|
|
|
|
|
|
Fios video connections |
|
|
(52 |
) |
|
|
(37 |
) |
|
(40.5 |
) |
|
|
(105 |
) |
|
|
(59 |
) |
|
(78.0 |
) |
Fios Internet connections |
|
|
34 |
|
|
|
43 |
|
|
(20.9 |
) |
|
|
86 |
|
|
|
109 |
|
|
(21.1 |
) |
Fios digital voice residence connections |
|
|
(32 |
) |
|
|
(28 |
) |
|
(14.3 |
) |
|
|
(77 |
) |
|
|
(42 |
) |
|
(83.3 |
) |
Fios digital connections |
|
|
(50 |
) |
|
|
(22 |
) |
|
* |
|
|
(96 |
) |
|
|
8 |
|
|
* |
Broadband connections |
|
|
(5 |
) |
|
|
(10 |
) |
|
50.0 |
|
|
|
7 |
|
|
|
(3 |
) |
|
* |
Voice connections |
|
|
(232 |
) |
|
|
(285 |
) |
|
18.6 |
|
|
|
(511 |
) |
|
|
(551 |
) |
|
7.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
Statistics |
|
|
|
|
|
|
|
|
|
|
|
|
Fios revenues (in millions) |
|
$ |
3,011 |
|
|
$ |
2,956 |
|
|
1.9 |
|
|
$ |
6,018 |
|
|
$ |
5,907 |
|
|
1.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes: |
The segment
financial results and metrics above are adjusted to exclude the
effects of special items. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain
intersegment transactions with corporate entities have not been
eliminated. |
|
|
|
|
|
|
|
|
|
|
|
|
|
* Not
meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Verizon Communications Inc. |
Non-GAAP Reconciliations - Consolidated
Verizon |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated EBITDA, Consolidated EBITDA Margin,
Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA
Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in millions) |
Unaudited |
|
3 Mos. Ended
6/30/2019 |
|
3 Mos. Ended
3/31/2019 |
|
3 Mos. Ended
12/31/2018 |
|
3 Mos. Ended
9/30/2018 |
|
3 Mos. Ended
6/30/2018 |
|
3 Mos. Ended
3/31/2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net Income |
|
$ |
4,074 |
|
|
$ |
5,160 |
|
|
$ |
2,065 |
|
|
$ |
5,062 |
|
|
$ |
4,246 |
|
|
$ |
4,666 |
|
Add/(subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for income taxes |
|
|
1,236 |
|
|
|
1,628 |
|
|
|
(698 |
) |
|
|
1,613 |
|
|
|
1,281 |
|
|
|
1,388 |
|
Interest expense |
|
|
1,215 |
|
|
|
1,210 |
|
|
|
1,199 |
|
|
|
1,211 |
|
|
|
1,222 |
|
|
|
1,201 |
|
Depreciation and amortization expense |
|
|
4,232 |
|
|
|
4,231 |
|
|
|
4,352 |
|
|
|
4,377 |
|
|
|
4,350 |
|
|
|
4,324 |
|
Consolidated
EBITDA |
|
$ |
10,757 |
|
|
$ |
12,229 |
|
|
$ |
6,918 |
|
|
$ |
12,263 |
|
|
$ |
11,099 |
|
|
$ |
11,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add/subtract: |
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense, net* |
|
$ |
1,312 |
|
|
$ |
(295 |
) |
|
$ |
(1,865 |
) |
|
$ |
(214 |
) |
|
$ |
(360 |
) |
|
$ |
75 |
|
Equity in losses (earnings) of unconsolidated businesses† |
|
|
13 |
|
|
|
6 |
|
|
|
(64 |
) |
|
|
3 |
|
|
|
228 |
|
|
|
19 |
|
Oath goodwill impairment |
|
|
- |
|
|
|
- |
|
|
|
4,591 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Severance charges |
|
|
- |
|
|
|
- |
|
|
|
1,818 |
|
|
|
- |
|
|
|
339 |
|
|
|
- |
|
Product realignment charges‡ |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
450 |
|
|
|
- |
|
Acquisition and integration related charges‡ |
|
|
- |
|
|
|
- |
|
|
|
187 |
|
|
|
130 |
|
|
|
109 |
|
|
|
105 |
|
|
|
|
1,325 |
|
|
|
(289 |
) |
|
|
4,667 |
|
|
|
(81 |
) |
|
|
766 |
|
|
|
199 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Adjusted EBITDA |
|
$ |
12,082 |
|
|
$ |
11,940 |
|
|
$ |
11,585 |
|
|
$ |
12,182 |
|
|
$ |
11,865 |
|
|
$ |
11,778 |
|
Consolidated Operating
Revenues - Quarter to Date |
|
$ |
32,071 |
|
|
|
|
|
|
|
|
$ |
32,203 |
|
|
|
Operating
Income |
|
$ |
7,850 |
|
|
|
|
|
|
|
|
$ |
6,617 |
|
|
|
Operating Income
Margin - Quarter to Date |
|
|
24.5 |
% |
|
|
|
|
|
|
|
|
20.5 |
% |
|
|
Consolidated EBITDA
Margin - Quarter to Date |
|
|
33.5 |
% |
|
|
|
|
|
|
|
|
34.5 |
% |
|
|
Consolidated Adjusted
EBITDA Margin - Quarter to Date |
|
|
37.7 |
% |
|
|
|
|
|
|
|
|
36.8 |
% |
|
|
Consolidated Adjusted
EBITDA - Year Over Year Change |
|
$ |
217 |
|
|
|
|
|
|
|
|
|
|
|
Consolidated Adjusted
EBITDA - Year Over Year
Change % |
|
|
1.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Includes Pension and benefits mark-to-market adjustments
and Early debt redemption costs, where applicable. |
† Includes Product realignment charges, where
applicable. |
‡ Excludes depreciation and amortization expense, where
applicable. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Verizon
Communications Inc. |
Non-GAAP
Reconciliations - Consolidated Verizon |
|
|
|
|
|
|
|
|
|
|
|
Net Debt
and Net Debt to Consolidated Adjusted EBITDA Ratio |
|
|
(dollars in millions) |
Unaudited |
|
|
|
|
|
|
|
6/30/19 |
|
12/31/18 |
|
|
|
|
|
|
|
|
|
|
|
Debt maturing within one year |
|
|
|
|
|
|
|
$ |
8,773 |
|
|
$ |
7,190 |
|
Long-term debt |
|
|
|
|
|
|
|
|
104,598 |
|
|
|
105,873 |
|
Total
Debt |
|
|
|
|
|
|
|
|
113,371 |
|
|
|
113,063 |
|
Less Cash and cash equivalents |
|
|
|
|
|
|
|
|
1,949 |
|
|
|
2,745 |
|
Net Debt |
|
|
|
|
|
|
|
$ |
111,422 |
|
|
$ |
110,318 |
|
Net Debt to
Consolidated Adjusted EBITDA Ratio |
|
|
|
|
|
|
|
2.3x |
|
2.3x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted
EBITDA Ratio |
|
|
|
|
|
|
|
|
|
(dollars in millions) |
Unaudited |
|
|
|
|
|
|
|
6/30/19 |
|
12/31/18 |
|
|
|
|
|
|
|
|
|
|
|
Total
Debt |
|
|
|
|
|
|
|
$ |
113,371 |
|
|
$ |
113,063 |
|
Less Secured debt |
|
|
|
|
|
|
|
|
11,252 |
|
|
|
10,076 |
|
Unsecured
debt |
|
|
|
|
|
|
|
|
102,119 |
|
|
|
102,987 |
|
Less Cash and cash equivalents |
|
|
|
|
|
|
|
|
1,949 |
|
|
|
2,745 |
|
Net Unsecured
Debt |
|
|
|
|
|
|
|
$ |
100,170 |
|
|
$ |
100,242 |
|
Net
Unsecured Debt to Consolidated Adjusted EBITDA Ratio |
|
|
|
|
|
|
2.1x |
|
2.1x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Earnings per Common Share (Adjusted
EPS)(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited |
|
3 Mos. Ended
6/30/19 |
|
|
3 Mos. Ended
6/30/18 |
|
Pre-tax |
Tax |
After-Tax |
|
Pre-tax |
Tax |
|
After-Tax |
|
|
EPS |
|
|
|
$ |
0.95 |
|
|
|
|
|
|
$ |
1.00 |
|
Severance charges |
$ |
- |
$ |
- |
|
$ |
- |
|
- |
|
$ |
339 |
$ |
(89 |
) |
|
$ |
250 |
|
|
|
0.06 |
|
Acquisition and integration-related charges |
|
- |
|
- |
|
|
- |
|
- |
|
|
120 |
|
(28 |
) |
|
|
92 |
|
|
|
0.02 |
|
Early debt redemption costs |
|
1,544 |
|
(404 |
) |
|
1,140 |
|
0.28 |
|
|
- |
|
- |
|
|
|
- |
|
|
|
- |
|
Product realignment charges |
|
- |
|
- |
|
|
- |
|
- |
|
|
658 |
|
(149 |
) |
|
|
509 |
|
|
|
0.12 |
|
|
$ |
1,544 |
$ |
(404 |
) |
$ |
1,140 |
|
0.28 |
|
$ |
1,117 |
$ |
(266 |
) |
|
$ |
851 |
|
|
|
0.20 |
|
Adjusted
EPS |
|
|
|
$ |
1.23 |
|
|
|
|
|
|
$ |
1.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Adjusted EPS may not add due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
Verizon
Communications Inc. |
Non-GAAP
Reconciliations - Segments |
|
|
|
|
|
|
|
|
Segment EBITDA and Segment EBITDA Margin |
|
|
|
|
|
Consumer |
|
(dollars in millions) |
|
|
|
|
|
Unaudited |
|
3 Mos. Ended
6/30/19 |
|
3 Mos. Ended
6/30/18 |
|
|
|
|
|
Operating Income |
|
$ |
7,336 |
|
|
$ |
7,060 |
|
Add Depreciation and amortization expense |
|
|
2,881 |
|
|
|
2,997 |
|
Segment
EBITDA |
|
$ |
10,217 |
|
|
$ |
10,057 |
|
Year over year change |
|
|
1.6 |
% |
|
|
|
|
|
|
|
Total operating revenues |
|
$ |
21,995 |
|
|
$ |
22,003 |
|
Operating Income
Margin |
|
|
33.4 |
% |
|
|
32.1 |
% |
Segment EBITDA
Margin |
|
|
46.5 |
% |
|
|
45.7 |
% |
|
|
|
|
|
|
|
|
|
|
Business |
|
(dollars in millions) |
|
|
|
|
|
Unaudited |
|
3 Mos. Ended
6/30/19 |
|
3 Mos. Ended
6/30/18 |
|
|
|
|
|
Operating
Income |
|
$ |
1,071 |
|
|
$ |
1,101 |
|
Add Depreciation and amortization expense |
|
|
1,046 |
|
|
|
1,059 |
|
Segment
EBITDA |
|
$ |
2,117 |
|
|
$ |
2,160 |
|
|
|
|
|
|
Total operating revenues |
|
$ |
7,768 |
|
|
$ |
7,851 |
|
Operating Income
Margin |
|
|
13.8 |
% |
|
|
14.0 |
% |
Segment EBITDA
Margin |
|
|
27.3 |
% |
|
|
27.5 |
% |
Segment EBITDA Margin - Year
Over Year Change |
|
(20) bps |
|
|
|
|
|
|
|
Verizon
Communications Inc. |
|
Supplemental Information
- VZ 2.0 to Historical Financial Results
Reconciliation(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables present a reconciliation of financial results
for our current reportable segments, Consumer and Business, to our
historical reportable segments, Wireless and Wireline. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Mos. Ended 6/30/19 |
|
|
|
(dollars in millions) |
|
VZ 2.0 |
Historical |
|
Consumer |
Business |
Total
Reportable
Segments |
Adjustments (2) |
Adjusted
Total
Reportable
Segments |
Wireless |
Wireline |
Historical
Total
Reportable
Segments |
Unaudited |
Service |
Equipment |
Other |
Total
Wireless |
Consumer Markets |
Enterprise Solutions |
Partner Solutions |
Business Markets |
Other |
Total
Wireline |
External Operating Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Revenues |
$ |
21,995 |
|
$ |
7,768 |
|
$ |
29,763 |
$ |
45 |
|
$ |
29,808 |
$ |
16,244 |
$ |
4,720 |
$ |
1,718 |
$ |
22,682 |
|
$ |
3,120 |
$ |
2,084 |
$ |
1,043 |
$ |
820 |
$ |
59 |
$ |
7,126 |
|
$ |
29,808 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
|
3,847 |
|
|
2,581 |
|
|
6,428 |
|
191 |
|
|
6,619 |
|
|
|
|
2,422 |
|
|
|
|
|
|
|
4,197 |
|
|
6,619 |
Cost of wireless equipment |
|
3,909 |
|
|
1,109 |
|
|
5,018 |
|
1 |
|
|
5,019 |
|
|
|
|
5,019 |
|
|
|
|
|
|
|
- |
|
|
5,019 |
Selling, general and administrative expense |
|
4,022 |
|
|
1,961 |
|
|
5,983 |
|
(112 |
) |
|
5,871 |
|
|
|
|
4,318 |
|
|
|
|
|
|
|
1,553 |
|
|
5,871 |
Depreciation and amortization expense |
|
2,881 |
|
|
1,046 |
|
|
3,927 |
|
(79 |
) |
|
3,848 |
|
|
|
|
2,282 |
|
|
|
|
|
|
|
1,566 |
|
|
3,848 |
Total Operating Expenses |
|
14,659 |
|
|
6,697 |
|
|
21,356 |
|
1 |
|
|
21,357 |
|
|
|
|
14,041 |
|
|
|
|
|
|
|
7,316 |
|
|
21,357 |
Operating Income |
$ |
7,336 |
|
$ |
1,071 |
|
$ |
8,407 |
$ |
44 |
|
$ |
8,451 |
|
|
|
$ |
8,641 |
|
|
|
|
|
|
$ |
(190 |
) |
$ |
8,451 |
Add Depreciation and amortization expense |
|
2,881 |
|
|
1,046 |
|
|
3,927 |
|
(79 |
) |
|
3,848 |
|
|
|
|
2,282 |
|
|
|
|
|
|
|
1,566 |
|
|
3,848 |
Segment EBITDA |
$ |
10,217 |
|
$ |
2,117 |
|
$ |
12,334 |
$ |
(35 |
) |
$ |
12,299 |
|
|
|
$ |
10,923 |
|
|
|
|
|
|
$ |
1,376 |
|
$ |
12,299 |
Operating Income Margin |
|
33.4 |
% |
|
13.8 |
% |
|
|
|
|
|
|
|
38.1 |
% |
|
|
|
|
|
|
(2.7 |
)% |
|
Segment EBITDA Margin |
|
46.5 |
% |
|
27.3 |
% |
|
|
|
|
|
|
|
48.2 |
% |
|
|
|
|
|
|
19.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes: |
|
(1) Information presented for VZ 2.0 and historical financial
results includes intersegment transactions. |
(2) Adjustment represents intersegment revenues that have been
eliminated under the new structure net of the impact of VZ Connect
and other early-stage development businesses previously included in
Corporate. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Mos. Ended 6/30/18 |
|
|
|
(dollars in millions) |
|
VZ 2.0 |
Historical |
|
Consumer |
Business |
Total
Reportable
Segments |
Adjustments (2) |
Adjusted
Total
Reportable
Segments |
Wireless |
Wireline |
Historical
Total
Reportable
Segments |
Unaudited |
Service |
Equipment |
Other |
Total
Wireless |
Consumer Markets |
Enterprise Solutions |
Partner Solutions |
Business Markets |
Other |
Total
Wireline |
External Operating Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Revenues |
$ |
22,003 |
|
$ |
7,851 |
|
$ |
29,854 |
$ |
54 |
|
$ |
29,908 |
$ |
15,754 |
$ |
5,044 |
$ |
1,651 |
$ |
22,449 |
|
$ |
3,132 |
$ |
2,211 |
$ |
1,200 |
$ |
850 |
$ |
66 |
$ |
7,459 |
|
$ |
29,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
|
3,842 |
|
|
2,660 |
|
|
6,502 |
|
210 |
|
|
6,712 |
|
|
|
|
2,335 |
|
|
|
|
|
|
|
4,377 |
|
|
6,712 |
Cost of wireless equipment |
|
4,296 |
|
|
1,101 |
|
|
5,397 |
|
— |
|
|
5,397 |
|
|
|
|
5,397 |
|
|
|
|
|
|
|
— |
|
|
5,397 |
Selling, general and administrative expense |
|
3,808 |
|
|
1,930 |
|
|
5,738 |
|
(177 |
) |
|
5,561 |
|
|
|
|
3,984 |
|
|
|
|
|
|
|
1,577 |
|
|
5,561 |
Depreciation and amortization expense |
|
2,997 |
|
|
1,059 |
|
|
4,056 |
|
(73 |
) |
|
3,983 |
|
|
|
|
2,459 |
|
|
|
|
|
|
|
1,524 |
|
|
3,983 |
Total Operating Expenses |
|
14,943 |
|
|
6,750 |
|
|
21,693 |
|
(40 |
) |
|
21,653 |
|
|
|
|
14,175 |
|
|
|
|
|
|
|
7,478 |
|
|
21,653 |
Operating Income |
$ |
7,060 |
|
$ |
1,101 |
|
$ |
8,161 |
$ |
94 |
|
$ |
8,255 |
|
|
|
$ |
8,274 |
|
|
|
|
|
|
$ |
(19 |
) |
$ |
8,255 |
Add Depreciation and amortization expense |
|
2,997 |
|
|
1,059 |
|
|
4,056 |
|
(73 |
) |
|
3,983 |
|
|
|
|
2,459 |
|
|
|
|
|
|
|
1,524 |
|
|
3,983 |
Segment EBITDA |
$ |
10,057 |
|
$ |
2,160 |
|
$ |
12,217 |
$ |
21 |
|
$ |
12,238 |
|
|
|
$ |
10,733 |
|
|
|
|
|
|
$ |
1,505 |
|
$ |
12,238 |
Operating Income Margin |
|
32.1 |
% |
|
14.0 |
% |
|
|
|
|
|
|
|
36.9 |
% |
|
|
|
|
|
|
(0.3 |
)% |
|
Segment EBITDA Margin |
|
45.7 |
% |
|
27.5 |
% |
|
|
|
|
|
|
|
47.8 |
% |
|
|
|
|
|
|
20.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes: |
|
|
(1) Information presented for VZ 2.0 and historical financial
results includes intersegment transactions. |
(2) Adjustment represents intersegment revenues that have been
eliminated under the new structure net of the impact of VZ Connect
and other early-stage development businesses previously included in
Corporate. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 Mos. Ended 6/30/19 |
|
|
|
(dollars in millions) |
|
VZ 2.0 |
Historical |
|
Consumer |
Business |
Total
Reportable
Segments |
Adjustments (2) |
Adjusted
Total
Reportable
Segments |
Wireless |
Wireline |
Historical
Total
Reportable
Segments |
Unaudited |
Service |
Equipment |
Other |
Total
Wireless |
Consumer Markets |
Enterprise Solutions |
Partner Solutions |
Business Markets |
Other |
Total
Wireline |
External Operating Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Revenues |
$ |
44,143 |
|
$ |
15,487 |
|
$ |
59,630 |
$ |
142 |
|
$ |
59,772 |
$ |
32,316 |
$ |
9,651 |
$ |
3,415 |
$ |
45,382 |
|
$ |
6,273 |
$ |
4,224 |
$ |
2,118 |
$ |
1,648 |
$ |
127 |
$ |
14,390 |
|
$ |
59,772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
|
7,726 |
|
|
5,172 |
|
|
12,898 |
|
363 |
|
|
13,261 |
|
|
|
|
4,878 |
|
|
|
|
|
|
|
8,383 |
|
|
13,261 |
Cost of wireless equipment |
|
8,051 |
|
|
2,166 |
|
|
10,217 |
|
— |
|
|
10,217 |
|
|
|
|
10,217 |
|
|
|
|
|
|
|
— |
|
|
10,217 |
Selling, general and administrative expense |
|
8,005 |
|
|
3,942 |
|
|
11,947 |
|
(189 |
) |
|
11,758 |
|
|
|
|
8,599 |
|
|
|
|
|
|
|
3,159 |
|
|
11,758 |
Depreciation and amortization expense |
|
5,775 |
|
|
2,088 |
|
|
7,863 |
|
(156 |
) |
|
7,707 |
|
|
|
|
4,581 |
|
|
|
|
|
|
|
3,126 |
|
|
7,707 |
Total Operating Expenses |
|
29,557 |
|
|
13,368 |
|
|
42,925 |
|
18 |
|
|
42,943 |
|
|
|
|
28,275 |
|
|
|
|
|
|
|
14,668 |
|
|
42,943 |
Operating Income |
$ |
14,586 |
|
$ |
2,119 |
|
$ |
16,705 |
$ |
124 |
|
$ |
16,829 |
|
|
|
$ |
17,107 |
|
|
|
|
|
|
$ |
(278 |
) |
$ |
16,829 |
Add Depreciation and amortization expense |
|
5,775 |
|
|
2,088 |
|
|
7,863 |
|
(156 |
) |
|
7,707 |
|
|
|
|
4,581 |
|
|
|
|
|
|
|
3,126 |
|
|
7,707 |
Segment EBITDA |
$ |
20,361 |
|
$ |
4,207 |
|
$ |
24,568 |
$ |
(32 |
) |
$ |
24,536 |
|
|
|
$ |
21,688 |
|
|
|
|
|
|
$ |
2,848 |
|
$ |
24,536 |
Operating Income Margin |
|
33.0 |
% |
|
13.7 |
% |
|
|
|
|
|
|
|
37.7 |
% |
|
|
|
|
|
|
(1.9 |
)% |
|
Segment EBITDA Margin |
|
46.1 |
% |
|
27.2 |
% |
|
|
|
|
|
|
|
47.8 |
% |
|
|
|
|
|
|
19.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Information presented for VZ 2.0 and historical financial
results includes intersegment transactions. |
(2) Adjustment represents intersegment revenues that have been
eliminated under the new structure net of the impact of VZ Connect
and other early-stage development businesses previously included in
Corporate. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 Mos. Ended 6/30/18 |
|
|
|
(dollars in millions) |
|
VZ 2.0 |
Historical |
|
Consumer |
Business |
Total
Reportable
Segments |
Adjustments (2) |
Adjusted
Total
Reportable
Segments |
Wireless |
Wireline |
Historical
Total
Reportable
Segments |
Unaudited |
Service |
Equipment |
Other |
Total
Wireless |
Consumer Markets |
Enterprise Solutions |
Partner Solutions |
Business Markets |
Other |
Total
Wireline |
External Operating Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Revenues |
$ |
43,630 |
|
$ |
15,634 |
|
$ |
59,264 |
$ |
101 |
|
$ |
59,365 |
$ |
31,156 |
$ |
10,084 |
$ |
3,109 |
$ |
44,349 |
|
$ |
6,282 |
$ |
4,451 |
$ |
2,428 |
$ |
1,721 |
$ |
134 |
$ |
15,016 |
|
$ |
59,365 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
|
7,615 |
|
|
5,370 |
|
|
12,985 |
|
417 |
|
|
13,402 |
|
|
|
|
4,550 |
|
|
|
|
|
|
|
8,852 |
|
|
13,402 |
Cost of wireless equipment |
|
8,569 |
|
|
2,137 |
|
|
10,706 |
|
— |
|
|
10,706 |
|
|
|
|
10,706 |
|
|
|
|
|
|
|
— |
|
|
10,706 |
Selling, general and administrative expense |
|
7,479 |
|
|
3,794 |
|
|
11,273 |
|
(334 |
) |
|
10,939 |
|
|
|
|
7,883 |
|
|
|
|
|
|
|
3,056 |
|
|
10,939 |
Depreciation and amortization expense |
|
5,972 |
|
|
2,118 |
|
|
8,090 |
|
(145 |
) |
|
7,945 |
|
|
|
|
4,887 |
|
|
|
|
|
|
|
3,058 |
|
|
7,945 |
Total Operating Expenses |
|
29,635 |
|
|
13,419 |
|
|
43,054 |
|
(62 |
) |
|
42,992 |
|
|
|
|
28,026 |
|
|
|
|
|
|
|
14,966 |
|
|
42,992 |
Operating Income |
$ |
13,995 |
|
$ |
2,215 |
|
$ |
16,210 |
$ |
163 |
|
$ |
16,373 |
|
|
|
$ |
16,323 |
|
|
|
|
|
|
$ |
50 |
|
$ |
16,373 |
Add Depreciation and amortization expense |
|
5,972 |
|
|
2,118 |
|
|
8,090 |
|
(145 |
) |
|
7,945 |
|
|
|
|
4,887 |
|
|
|
|
|
|
|
3,058 |
|
|
7,945 |
Segment EBITDA |
$ |
19,967 |
|
$ |
4,333 |
|
$ |
24,300 |
$ |
18 |
|
$ |
24,318 |
|
|
|
$ |
21,210 |
|
|
|
|
|
|
$ |
3,108 |
|
$ |
24,318 |
Operating Income Margin |
|
32.1 |
% |
|
14.2 |
% |
|
|
|
|
|
|
|
36.8 |
% |
|
|
|
|
|
|
0.3 |
% |
|
Segment EBITDA Margin |
|
45.8 |
% |
|
27.7 |
% |
|
|
|
|
|
|
|
47.8 |
% |
|
|
|
|
|
|
20.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Information presented for VZ 2.0 and historical financial
results includes intersegment transactions. |
(2) Adjustment represents intersegment revenues that have been
eliminated under the new structure net of the impact of VZ Connect
and other early-stage development businesses previously included in
Corporate. |
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