Verizon Communications Inc. · NYSE:VZ
Verizon Communications — Q2 2015 Earnings Presentation
12 slides from Verizon Communications's earnings presentation, Jul 21, 2015
Slide 1: 2nd Quarter 2015 Earnings Results
VlpHU09DSUQyMDE1UTI= 2nd QUARTER 2015 EARNINGS RESULTS Fran Shammo Chief Financial Officer July 21, 2015 VlpHU09DSUQyMDE1UTI=
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: 2Q '15 Overview
CONSOLIDATED 2Q ’15 Overview • Strong operating and financial performance with double- digit growth in adjusted earnings • Consistent investment in networks and platforms • Strong free cash flow generation • Completed $5B accelerated share repurchase program • Completed acquisition of AOL • Position
Slide 4: Financial Summary
CONSOLIDATED Financial Summary Total Revenue ($B) $31.5 $32.0 $32.2 2.4% • Total revenue growth excluding Y/Y Growth divested public sector business of 2.8% Y/Y in 2Q ’15 2Q '14 1Q '15 2Q '15 • IoT and telematics revenue of ■ Wireless ■ Wireline $165M in 2Q ’15 and approximately $320M YTD Earnings P
Slide 5: Cash Flow Summary
CONSOLIDATED Cash Flow Summary ($ in billions) 1Q ’15 2Q ’15 1H ’15 Cash flow from operations $10.2 $8.7 $18.9 Capital expenditures $3.7 $4.5 $8.2 Free cash flow $6.5 $4.2 $10.8 Dividends paid $2.2 $2.1 $4.3 Total debt $113.4 $113.7 $113.7 Net debt to adjusted EBITDA 2.5x 2.5x 2.5x Note: Amounts may
Slide 6: Wireless Revenue & Profitability
WIRELESS Revenue & Profitability Total Revenue ($B) $21.5 $22.3 $22.6 5.3% • Service revenue plus installment Y/Y Growth billings up 2.3% Y/Y in 2Q ’15 $18.1 $17.9 $17.7 • Retail postpaid ARPA plus 2Q '14 1Q '15 2Q '15 installment billings up 1.0% Y/Y ■ Service Revenue ■ Other Revenue in 2Q ’15 • 2Q
Slide 7: Wireless Connections / Net Adds / Churn
WIRELESS Connections / Net Adds / Churn Retail Connections (M) 108.6 109.5 104.6 4.7% Y/Y Growth • Retail postpaid connections 98.6 102.6 103.7 growth of 5.2% Y/Y in 2Q ’15 2Q '14 1Q '15 2Q '15 • More than 1.1M retail postpaid ■ Retail Postpaid ■ Retail Prepaid net adds in 2Q ’15* • Retail postpaid
Slide 8: Wireless Devices / 4G LTE
WIRELESS Devices / 4G LTE Retail Postpaid Device Activations (M) 15.3 • 2Q ’15 retail postpaid device 11.7 11.1 10.3 11.3 activations up 1.9% Y/Y • Smartphone penetration of 81%, up from 75% a year ago 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 ■ Smartphones ■ Other • Industry leading in 4G LTE connections
Slide 9: Wireline Mass Markets
WIRELINE Mass Markets Consumer Revenue ($B) $3.9 $4.0 $4.0 4.5% Y/Y Growth • FiOS now 79% of consumer revenue – FiOS consumer revenue growth 2Q '14 1Q '15 2Q '15 of 9.8% Y/Y in 2Q ’15 • FiOS Internet subscribers – 6.8M subscribers, 72K net adds Consumer FiOS Internet Subscribers – 41.4% penetration
Slide 10: Wireline Revenue & Profitability
WIRELINE Revenue & Profitability Total Revenue ($B) $9.6 Y/Y Growth $9.5 $9.4 (2.2%) • Total FiOS revenue grew 10.0% Y/Y in 2Q ’15 2Q '14 1Q '15 2Q '15 • Global Enterprise revenue down 6.4% Y/Y in 2Q ’15 Segment EBITDA ($B) Y/Y Growth • Global Wholesale revenue $2.3 $2.2 $2.2 (2.1%) down 4.5% Y/Y in
Slide 11: Summary
CONSOLIDATED Summary • Strong financial performance in 1H ’15 • Strong cash generation • Consistent investment in networks and platforms • Well-positioned for video and IoT opportunities Confident in ability to execute, grow profitably, and invest for the future Confidential and proprietary material
Slide 12: 2nd Quarter 2015 Earnings Results
2nd QUARTER 2015 EARNINGS RESULTS Fran Shammo Chief Financial Officer July 21, 2015 VlpHU09DSUQyMDE1UTI=
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