Verizon Communications Inc. · NYSE:VZ
Verizon Communications — Q3 2015 Earnings Presentation
12 slides from Verizon Communications's earnings presentation, Oct 20, 2015
Slide 1: 3rd Quarter 2015 Earnings Results
3rd Quarter 2015 Earnings Results Fran Shammo Chief Financial Officer October 20, 2015
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 ’15 Overview
Consolidated 3Q ’15 Overview Strong earnings growth and free cash flow generation High-quality connections growth and profitability in Wireless Improved fios customer growth in Wireline Positioning business for future growth Returning value to shareholders Strong execution of the fundamentals © 2015
Slide 4: Financial Summary
Consolidated Total Revenue ($B) Financial $31.6 $32.2 $33.2 Summary 5.0% Y/Y Growth Total revenue growth excluding AOL of 3.1% Y/Y in 3Q ’15 3Q '14 2Q '15 3Q '15 ■ Wireless ■ Wireline 3Q ’15 EBITDA of $11.9B, up 7.5% Y/Y* Earnings Per Share 3Q ’15 EBITDA margin of $1.04* $1.04 35.8%, up 80 bps Y/Y*
Slide 5: Cash Flow Summary
Consolidated Cash Flow Summary ($ in billions) 1Q’15 2Q’15 3Q’15 2015 YTD Cash flow from operations $10.2 $8.7 $9.5 $28.4 Capital expenditures $3.7 $4.5 $4.4 $12.5 Free cash flow $6.5 $4.2 $5.1 $15.9 Dividends paid $2.2 $2.1 $2.1 $6.4 Total debt $113.4 $113.7 $112.3 $112.3 Net debt to adjusted EBITD
Slide 6: Wireless Revenue & Profitability
Wireless Total Revenue ($B) Revenue & $21.8 $22.6 $23.0 Profitability 5.4% Y/Y Growth Service revenue plus installment billings up 1.2% Y/Y in 3Q ’15 3Q '14 2Q '15 3Q '15 ■ Service Revenue ■ Other Revenue 3Q ’15 phone activations on installment plans were about Segment EBITDA ($B) 58%; 22% of postpa
Slide 7: Wireless Connections / Net Adds / Churn
Wireless Retail Connections (M) Connections / 106.2 109.5 110.8 Net Adds / Churn 4.3% Retail postpaid connections 103.7 105.0 Y/Y Growth growth of 4.9% Y/Y in 3Q ’15 100.1 1.3M retail postpaid net adds in 3Q ’15* 3Q '14 2Q '15 3Q '15 • 889K new 4G LTE ■ Retail Postpaid ■ Retail Prepaid smartphones R
Slide 8: Wireless Devices / 4G LTE
Wireless Retail Postpaid Device Activations (M) Devices / 4G LTE 15.3 11.7 11.3 11.6 10.3 Smartphone penetration of 82%, up from 77% a year ago Industry leading 4G LTE connections 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 • Added 4.0M 4G LTE devices ■ Smartphones ■ Other in 3Q ’15 4G LTE Devices (M) • Abou
Slide 9: Wireline Mass Markets
Wireline Consumer Revenue ($B) Mass Markets $3.9 $4.0 $4.0 2.8% Y/Y Growth fios now 79% of consumer revenue • fios consumer revenue growth of 7.1% Y/Y in 3Q ’15 fios Internet subscribers 3Q '14 2Q '15 3Q '15 • 114K net adds • 6.9M subscribers, 41.7% Consumer fios Internet Subscribers penetration fio
Slide 10: Wireline Revenue & Profitability
Wireline Total Revenue ($B) Revenue & Y/Y Growth $9.6 Profitability $9.4 $9.4 (2.3%) Total fios revenue grew 7.5% Y/Y in 3Q ’15 3Q '14 2Q '15 3Q '15 Global Enterprise revenue down 4.9% Y/Y in 3Q ’15 Segment EBITDA ($B) Global Wholesale revenue Y/Y Growth down 5.1% Y/Y in 3Q ’15 $2.2 $2.2 $2.2 (0.1%)
Slide 11: Summary
Summary High-value customer growth Strong financial and operating results Free cash flow generation Consistent investment in networks and platforms Developing future revenue opportunities in mobile video and IoT 9th consecutive year of quarterly dividend increase Execution of fundamentals while inve
Slide 12: 3rd Quarter 2015 Earnings Results
3rd Quarter 2015 Earnings Results Fran Shammo Chief Financial Officer October 20, 2015
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