Verizon Communications Inc. · NYSE:VZ
Verizon Communications — Q1 2018 Earnings Presentation
15 slides from Verizon Communications's earnings presentation, Apr 24, 2018
Slide 1: 1st Quarter 2018 Earnings Results
1st Quarter 2018 Earnings Results April 24, 2018
Slide 2: “Safe Harbor” statement
“Safe Harbor” statement NOTE: In this presentation 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
Slide 3: Consolidated: Consistent earnings performance
Consolidated Consistent earnings performance 1Q ’18 Reported EPS $1.11 Includes ~$0.21 due to the net impact of tax reform and ASC 606* Special items: Early debt redemption costs $0.04 Acquisition and integration-related charges $0.02 Adjusted EPS** $1.17 Includes ~$0.21 due to the net impact of tax
Slide 4: Supplemental Information: Impact of ASC 606
Supplemental Information Impact of ASC 606* ($ in millions) w/o ASC 606 1Q ’18 ASC 606 Impact Impact Consolidated Total revenue $31,772 ($45) $31,727 Y/Y Growth 6.6% 6.4% Adjusted EBITDA** $11,778 ($423) $11,355 Adjusted EBITDA Margin** 37.1% 35.8% Wireless Service revenue $15,402 $380 $15,782 Y/Y G
Slide 5: Strategic positioning
Strategic positioning Network Leadership • Award-winning 4G LTE • Intelligent Edge Network • High-quality base Customer relationships • Service revenue momentum • Customer loyalty • 5G New ecosystems • Oath • Verizon Connect & IoT • Profitable growth Long-term value creation • Business excellence •
Slide 6: Consolidated: Delivering profitable results
Consolidated Delivering profitable results Total Revenue ($B) $34.0 $31.8 Total revenue of $31.8B, up 6.6% Y/Y $29.8 in 1Q ’18 • Excluding Oath, divested businesses and impact of ASC 606, total revenue of $29.9B, up 3.2% Y/Y in 1Q ’18* 1Q '17 4Q '17 1Q '18 1Q ’18 Adjusted EBITDA of $11.8B** Y/Y Grow
Slide 7: Consolidated: Generating strong free cash flow
Consolidated Generating strong free cash flow ($ in billions) 1Q ’17 1Q ’18 Cash flow from operations $1.4 $6.6 Discretionary pension contribution $3.4 $1.0 Capital expenditures $3.1 $4.6 Free cash flow* ($1.7) $2.1 Dividends paid $2.4 $2.4 Total debt $116.5 $119.1 Total asset-backed long-term borro
Slide 8: Wireless: Improving service revenue trends
Wireless Improving service revenue trends Total Revenue ($B) Segment EBITDA ($B)* Total revenue, excluding impact of $23.8 $21.9 $10.5 $20.9 $9.4 $9.5 ASC 606, up 4.7% Y/Y in 1Q ’18 Service revenue of $15.4B, down 47.8% 45.1% 2.4% Y/Y in 1Q ’18 39.8% • Excluding impact of ASC 606, service revenue wa
Slide 9: Wireless: Industry leading, high-quality retail base
Wireless Industry leading, high-quality retail base Retail Connections (M) 113.9 116.3 116.2 ■ Retail Postpaid ■ Retail Prepaid 111.1 220K postpaid smartphone net 108.5 110.9 adds in 1Q ’18 24K phone net losses in 1Q ’18 1Q '17 4Q '17 1Q '18 Y/Y Growth 2.0% 260K retail postpaid net adds in 1Q ’18* R
Slide 10: Wireline: Broadband driving Fios revenue
Wireline Broadband driving Fios revenue Consumer Markets Revenue ($B) Total Wireline revenue excluding $3.2 $3.2 $3.2 impact of ASC 606 of $7.5B, down 1.8% Y/Y in 1Q ’18; down 2.8% excluding XO Communications* • Consumer Markets revenue excluding impact of ASC 606 of $3.1B, down 1.7% Y/Y in 1Q ’18 1
Slide 11: Media and IoT: Strategic positioning for future growth
Media and IoT Strategic positioning for future growth Media 1Q ’18 revenue of $1.9B Premium content distribution and programmatic advertising capabilities © 2018 Verizon VlpHU09DSUQyMDE3UTQ= 11
Slide 12: Confident in execution of strategy
Confident in execution of strategy Leading in technology development and network performance Positive wireless service revenue trajectory Business excellence initiatives Pre-positioning for future growth opportunities 5G residential broadband launch in 2H 2018 Delivering solid financials, strengthen
Slide 13: 1Q ’18 Supplemental Information
1Q ’18 Supplemental Information
Slide 14: Selected metrics
Selected metrics Wireless 1Q ’18 Retail postpaid upgrade rate (%) 5.0% Postpaid gross adds (M) 3.7 Postpaid smartphone net adds (000) 220 Postpaid phone net losses (000) (24) Postpaid tablet net losses (000) (75) Wireline Fios consumer revenue growth rate Y/Y (%) 1.2%* * Excludes impact of ASC 606.
Slide 15: Verizon
verizon’
Verizon Communications — Q1 2018 Earnings Presentation on 6ix