Verizon Communications Inc. · NYSE:VZ
Verizon Communications — Q3 2014 Earnings Presentation
13 slides from Verizon Communications's earnings presentation, Oct 21, 2014
Slide 1: 3rd Quarter 2014 Earnings Results
VlpHU09DSUQyMDE0UTM 3rd QUARTER 2014 EARNINGS RESULTS Fran Shammo Chief Financial Officer October 21, 2014 VlpHU09DSUQyMDE0UTM=
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: 3Q '14 Overview
CONSOLIDATED 3Q ’14 Overview • Revenue growth and cost efficiency driving consistent financial performance • Double-digit earnings growth in 10 of last 11 quarters • Strong quarter of high-quality wireless connection base growth and profitability • FiOS driving consistent growth in consumer market •
Slide 4: 3Q '14 Financial Summary
CONSOLIDATED 3Q ’14 Financial Summary Total Revenue ($B) Net Income Attributable to Verizon ($B) $30.3 $31.5 $31.6 $3.8* $3.7 4.3% $2.2* Y/Y Growth 3Q '13 2Q '14 3Q '14 3Q '13 2Q '14 3Q '14 ■ Wireless ■ Wireline * 3Q ’13 and 2Q ’14 are adjusted for non-operational items Earnings Per Share • 3Q ’14 T
Slide 5: Cash Flow Summary
CONSOLIDATED Cash Flow Summary ($ in billions) 1Q ’14 2Q ’14 3Q ’14 2014 YTD Cash flow from operations $7.1 $7.7 $8.4 $23.2 Capital expenditures $4.2 $4.3 $4.1 $12.6 Free cash flow $3.0 $3.3 $4.2 $10.5 Total debt $109.8 $110.0 $109.2 $109.2 Net debt to adjusted EBITDA 2.5x 2.4x 2.3x 2.3x Note: Amoun
Slide 6: Wireless Revenue & Profitability
WIRELESS Revenue & Profitability Total Revenue ($B) $21.5 $21.8 $20.4 7.0% Y/Y Growth $17.5 $18.1 $18.4 • Service revenue growth of 4.8% Y/Y in 3Q ’14 3Q '13 2Q '14 3Q '14 ■ Service Revenue ■ Other Revenue • Exceptional quarter of 4G LTE device adoption Segment EBITDA ($B) • 3Q ’14 EBITDA service ma
Slide 7: Wireless ARPA
WIRELESS ARPA Retail Postpaid ARPA $159.73 $161.24 $155.74 3.5% Y/Y Growth • 35.4M retail postpaid accounts • 2.82 connections per account, 3Q '13 2Q '14 3Q '14 up 3.7% Y/Y • 57% of postpaid accounts on More Everything Plans More Everything Accounts • Monthly average usage per More Everything accoun
Slide 8: Connections / Net Adds / Churn
WIRELESS Connections / Net Adds / Churn Retail Connections (M) • 4.5M retail postpaid gross adds 106.2 101.2 104.6 in 3Q ’14, up 22.6% Y/Y 4.9% Y/Y Growth • 1.5M retail postpaid net adds in 95.2 98.6 100.1 3Q ’14* 3Q '13 2Q '14 3Q '14 • Retail postpaid churn of 1.00% ■ Retail Postpaid ■ Retail Prepa
Slide 9: Devices / 4G LTE
WIRELESS Devices / 4G LTE Retail Postpaid Device Activations (M) 11.5 11.7 • Retail postpaid device 11.1 10.2 9.9 activations up 14.9% Y/Y • 8.9M smartphones activated in 3Q ’14 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 • Smartphone penetration of 77%, ■ Smartphones ■ Other up from 67% a year ago 4G LTE De
Slide 10: Wireline Mass Markets
WIRELINE Mass Markets Consumer Revenue ($B) $3.9 $3.9 • 9th consecutive quarter of $3.7 4.5% over 4% consumer revenue Y/Y Growth growth Y/Y • FiOS now 76% of consumer revenue 3Q '13 2Q '14 3Q '14 – FiOS consumer revenue growth of 12.3% Y/Y Consumer FiOS Internet Subscribers • FiOS Internet subscribe
Slide 11: Wireline Revenue & Profitability
WIRELINE Revenue & Profitability Total Revenue ($B) Y/Y Growth $9.7 $9.6 $9.6 (0.8%) • Total FiOS revenue grew 13.4% Y/Y • Global Enterprise revenue down 4.4% Y/Y 3Q '13 2Q '14 3Q '14 – Strategic services revenue up 1.0% Y/Y Segment EBITDA ($B) • Global Wholesale revenue $2.2 $2.3 $2.2 Y/Y Growth do
Slide 12: Summary
CONSOLIDATED Summary • Continued investment in network and platforms • Delivered high-quality, double-digit earnings growth • Growth in valuable wireless retail postpaid connections • Scaled our FiOS platform • Increased dividend Strong execution driving shareholder value creation Confidential and p
Slide 13: 3rd Quarter 2014 Earnings Results
3rd QUARTER 2014 EARNINGS RESULTS Fran Shammo Chief Financial Officer October 21, 2014 VlpHU09DSUQyMDE0UTM=
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