Verizon Communications Inc. · NYSE:VZ
Verizon Communications — Q1 2022 Earnings Presentation
20 slides from Verizon Communications's earnings presentation, Apr 22, 2022
Slide 1: 1Q 2022 Earnings
1Q 2022 EARNINGS April 22, 2022
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 Earnings Summary
Consolidated Earnings Summary 1Q 2022 Reported EPS $1.09 Special items: Early debt redemption costs $0.22 Amortization of acquisition-related intangible assets $0.04 Adjusted EPS* $1.35 Note: Amounts may not add due to rounding. * Non-GAAP measure. © 2022 Verizon 3 VZQTR20FIN VlpHU09DSUQyMDE4UTQ =
Slide 4: Hans Vestberg
Hans Vestberg Hans Vestberg 4
Slide 5: Continued execution on NaaS strategy
Continued execution on NaaS strategy Network-as-a-Service Strategy Enabling the 5G Economy Mobility Broadband Cloud © 2022 Verizon 5 VZQTR20FIN VlpHU09DSUQyMDE4UTQ =
Slide 6: Significant progress this quarter
Significant progress this quarter Financial Operational Network • Best VBG quarterly • MEC and Private 5G • 35% mmWave traffic phone net adds on Network Partnerships growth Q/Q and 155% record with Cisco & Celona C-Band traffic growth during March • Highest quarterly • 5G Ultra Show, C-Band broadban
Slide 7: Early Spectrum Clearance
Early Spectrum Clearance Phase 2: Phase 1 Early Clearing (4Q22) Markets 46 PEAs* + 30 PEAs* Coverage 190M Addressable POPs + ~40M Addressable POPs Spectrum Depth 60MHz Avg. National Depth + 100MHz Avg. National Depth * Partial Economic Areas © 2022 Verizon 7 VZQTR20FIN VlpHU09DSUQyMDE4UTQ =
Slide 8: ESG 1Q 2022 Highlights
ESG 1Q 2022 Highlights Issued our fourth $1 billion MSCI raised our ESG rating to AA, Extended free calling to and from Green Bond our highest rating to date Ukraine since the start of the war Responsible business practices drive our business © 2022 Verizon 8 VZQTR20FIN VlpHU09DSUQyMDE4UTQ =
Slide 9: Matt Ellis
Hans Vestberg Matt Ellis 9
Slide 10: Mobility 1Q 2022 Operating Metrics
Mobility Wireless retail postpaid phone net adds* (K) 1Q 2022 558 Consumer (292K) Operating Metrics 275 429 Business 256K (178) (36) 5.3M Wireless postpaid upgrades (up 7.3% Y/Y) 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 4.0M Postpaid phone churn Wireless retail postpaid gross adds Consumer 0.77% (up
Slide 11: Broadband 1Q 2022 Operating Metrics
Broadband Broadband net adds (K) 1Q 2022 229 Operating Metrics 129 106 194 81 93 55 17 23 78 64 70 74 Record low 28 35 Fios churn 1Q 2021 Fixed Wireless 2Q 2021 3Q 2021 Wireline (Fios + DSL) 4Q 2021 1Q 2022 60K FWA net adds by segment (K) 194 Fios internet net adds $3.2B 112 Total Fios revenue 78 (u
Slide 12: MEC & B2B Solutions 1Q 2022
MEC & B2B Solutions 1Q 2022 IoT net adds (M) M2M & Industrial IoT • Continued trend of delivering 1M+ net adds • Double digit year-over-year connectivity growth 1M B2B Solutions • Public MEC expansion into 4 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 additional markets • Ongoing deployments of Private
Slide 13: Value Market 1Q 2022 Operating Metrics
Value Market Prepaid net adds (K) 1Q 2022 Operating Metrics 19 18 (4) (85) (80) Tracfone off-net migration on track 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Prepaid ARPU (77K) Tracfone net adds $35.66 $35.70 $35.75 $37.83 23.8M $30.89 Prepaid subscribers 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Tracfo
Slide 14: Consolidated 1Q 2022 Financial Summary
Consolidated Total revenue ($B) 1Q 2022 2.1% Y/Y Financial $32.9 $33.8 $32.9 $34.1 $33.6 Summary $27.9 $28.2 $27.6 $26.7 $27.2 $33.6B Total revenue (up 2.1% Y/Y) 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Wireless equipment Service & other $12.0B Total Wireless service revenue** ($B) Adjusted EBITDA* (
Slide 15: Consumer 1Q 2022 Financial Summary
Consumer Total revenue ($B) 1Q 2022 10.9% Y/Y Financial $22.8 $23.5 $23.3 $25.7 $25.3 Summary $18.7 $18.8 $19.4 $19.9 $25.3B $18.6 Total revenue (up 10.9% Y/Y) 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Wireless equipment Service & other $2.9B Wireless service revenue ($B) Fios revenue (up 1.8% Y/Y) 11
Slide 16: Business 1Q 2022 Financial Summary
Business Total revenue ($B) 1Q 2022 (0.9%) Y/Y Financial $7.8 $7.8 $7.7 $7.8 $7.7 Summary $0.7 $1.6 $0.7 $1.6 $0.7 $1.5 $0.7 $1.5 $2.5 $0.7 $1.6 $2.6 $2.6 $2.6 $2.5 $7.7B $2.8 $2.9 $2.9 $3.1 $3.0 Total revenue 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 (down 0.9% Y/Y) Small and Global Enterprise Public
Slide 17: Consolidated Cash Flow Summary
Consolidated Cash Flow Summary ($ in billions) 1Q 2021 1Q 2022 Cash flow from operations $9.7 $6.8 Capital expenditures $4.5 $5.8 Free cash flow* $5.2 $1.0 Dividends paid $2.6 $2.7 Total debt $158.5 $153.4 Unsecured debt $147.6 $137.3 Cash and cash equivalents $10.2 $1.7 Net unsecured debt* $137.4 $
Slide 18: 2022 Guidance
2022 Guidance Prior Guidance Current Guidance Service and other revenue growth 1.0% – 1.5% as reported Approximately flat Total Wireless service revenue growth* 9% – 10% as reported UNCHANGED Adjusted EBITDA growth** 2% – 3% as reported UNCHANGED Adjusted effective tax rate** 23% — 25% UNCHANGED Adj
Slide 19: Solid momentum going into 2Q
Solid momentum going into 2Q Demonstrated strength in core business and strategy Our Priority is to continue to execute on our Expanded our consumer market and postpaid ARPA Network-as-a-Service Strategy and drive Delivered strong growth in broadband and VBG growth across all of our five vectors Gai
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