Verizon Communications Inc. · NYSE:VZ
Verizon Communications — Q1 2017 Earnings Presentation
16 slides from Verizon Communications's earnings presentation, Apr 20, 2017
Slide 1: 1st Quarter 2017 Earnings Results
1st Quarter 2017 Earnings Results Matt Ellis Executive Vice President and Chief Financial Officer April 20, 2017
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: Important Additional Information and Where to Find It
Important Additional Information and Where to Find It On April 10, 2017, Yahoo! Inc. ("Yahoo") filed with the Securities and Exchange Commission (the "SEC") Amendment No. 2 to the preliminary proxy statement regarding the proposed sale of Yahoo’s operating business to Verizon Communications Inc. ("V
Slide 4: Consolidated: Consistent earnings performance
Consolidated Consistent earnings performance 1Q ’17 Reported EPS $0.84 Add: Early debt redemption costs $0.13 Less: Gain on spectrum license transaction $0.02 Adjusted EPS* $0.95 * Non-GAAP measure. Adjusted for non-operational items. Note: Amounts may not add due to rounding. © 2017 Verizon 4
Slide 5: Strategic Positioning
Strategic Positioning • Fiber & densification Network Leadership • Spectral efficiency • New technologies • High-quality base Customer relationships • Brand loyalty • Scale • Media New ecosystems • Telematics • IoT • Cash generation Long-term value creation • Profitability • Return on investment © 2
Slide 6: Consolidated: Generating profitable results
Consolidated Generating profitable results Total Revenue ($B) $32.2 $32.3 $29.8 Total revenue of $29.8B, down 7.3% ■ Wireless ■ Wireline Y/Y in 1Q ’17 • Excluding Telogis, Fleetmatics, XO Communications and divested 1Q '16 4Q '16 1Q '17 Wireline properties, total revenue Y/Y Growth (7.3%) down 4.5%
Slide 7: Consolidated: Strong cash generation
Consolidated Strong cash generation ($ in billions) 1Q ’16 1Q ’17 Cash flow from operations $7.5 $1.7 Discretionary pension contributions – $3.4 Capital expenditures $3.4 $3.1 Free cash flow* $4.1 ($1.4) Asset-backed long-term borrowings – $1.3 Dividends paid $2.3 $2.4 Total debt $109.9 $116.5 Total
Slide 8: Wireless: Industry leading, high-quality retail base
Wireless Industry leading, high-quality retail base Retail Connections (M) 112.6 114.2 113.9 49K postpaid smartphone net adds ■ Retail Postpaid 108.5 ■ Retail Prepaid (398K) phone net adds pre- 107.2 108.8 unlimited in 1Q ’17 109K phone net adds post- 1Q '16 4Q '16 1Q '17 unlimited in 1Q ’17 Y/Y Gro
Slide 9: Wireless: Balanced performance in competitive environment
Wireless Balanced performance in competitive environment Total Revenue ($B) $23.4 $22.0 $20.9 Service revenue of $15.8B, ■ Service Revenue down 6.1% Y/Y in 1Q ’17 ■ Other Revenue 1Q ’17 segment EBITDA margin on total revenue of 45.1%* 1Q '16 4Q '16 1Q '17 71% of postpaid phone base on Y/Y Growth (5.
Slide 10: Wireline: Fios driving consumer growth
Wireline Fios driving consumer growth Consumer Markets Revenue ($B) $3.2 $3.2 $3.2 Total Wireline revenue of $7.9B, down 0.6% Y/Y in 1Q ’17 • Consumer Markets revenue grew 0.7% Y/Y in 1Q ’17 1Q '16 4Q '16 1Q '17 Y/Y Growth 0.7% • Fios revenue grew 4.7% Y/Y in 1Q ’17 Segment EBITDA ($B)* • 35K Fios I
Slide 11: New Businesses: Positioning to deliver long-term shareholder value
New Businesses Positioning to deliver long-term shareholder value Media Telematics & IoT AOL programmatic ad growth 1Q ’17 telematics revenue of $214M Integration planning for Yahoo 1Q ’17 IoT revenue growth Unique digital content Integrating Fleetmatics and Telogis Telematics market share leader ©
Slide 12: Driving long-term strategy
Driving long-term strategy Network & Technology Densification Network leadership confirmed by third party testing results Market-leading fiber assets OneFiber in Boston Launching 11 pre- commercial 5G fixed wireless pilots in 2Q ’17 © 2017 Verizon 12
Slide 13: Confident in strategy and priorities
Confident in strategy and priorities Executing in a highly competitive market Delivering solid financials, a strong balance sheet and dividends Allocating capital consistently Positioning for long-term growth Returning value to shareholders © 2017 Verizon 13
Slide 14: 1Q '17 Supplemental Information
1Q ’17 Supplemental Information
Slide 15: Selected Metrics
Selected Metrics Wireless 1Q ’17 Retail postpaid upgrade rate (%) 5.2% Postpaid gross adds (M) 3.4 Postpaid smartphone net adds (000) 49 Postpaid phone net adds (000) (289) Postpaid tablet net adds (000) (255) Retail postpaid 4G LTE connections (M) 93.2 % 4G LTE data traffic increase Y/Y 57% Wirelin
Slide 16: verizon
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