Verizon reports 3Q earnings growth driven by customer demand for wireless and fios services

Oct 20, 2015, 07:30 ET from Verizon Communications Inc.

NEW YORK, Oct. 20, 2015 /PRNewswire/ --

3Q 2015 highlights

Consolidated

  • 99 cents in earnings per share (EPS) and $1.04 in adjusted EPS (non-GAAP), compared with 89 cents per share in 3Q 2014.
  • $28.4 billion year to date in cash flow from operations.

Wireless

  • 1.3 million net retail postpaid connections added in the quarter; low retail postpaid churn of 0.93 percent; 110.8 million total retail connections; 105.0 million total retail postpaid connections.
  • 5.4 percent year-over-year increase in total revenues; 33.3 percent operating income margin.

Wireline

  • 114,000 fios internet and 42,000 fios video net additions.

Fueled by wireless and fios connections growth and continued customer loyalty, Verizon Communications Inc. (NYSE, Nasdaq: VZ) today reported third-quarter 2015 earnings of 99 cents per share, or $1.04 per share on an adjusted basis (non-GAAP).

This compares with EPS of 89 cents in third-quarter 2014. Third-quarter 2015 earnings included a 5 cent per share non-cash charge due to a re-measurement triggered by a pension settlement accounting threshold.

"Verizon continues to grow earnings by delivering network reliability and superior value that continues to attract new customers," said Chairman and CEO Lowell McAdam. "Verizon Wireless posted another quarter of quality connections growth – even better than in the second quarter – while maintaining high customer loyalty and profitability. Meanwhile, fios customer growth also improved from the previous quarter. We expect future revenue growth from mobile over-the-top video, including digital advertising, and the Internet of Things."

Verizon's acquisition of AOL Inc. in June is playing a key role in this future growth strategy. In September Verizon launched go90, a differentiated, mobile-first social entertainment platform.

In the first nine months of 2015, Verizon invested approximately $22 billion in spectrum licenses and capital for future network capacity, in addition to the $4 billion AOL acquisition. Over that same time, the company maintained its leverage ratio and returned more than $11 billion to shareholders in the form of dividends and share repurchases. Verizon's Board of Directors increased dividends for the ninth consecutive year in September.

Consolidated results

  • Total operating revenues in third-quarter 2015 were $33.2 billion, a 5.0 percent increase compared with third-quarter 2014. Current-quarter revenues include results from AOL. The comparable year-over-year growth rate excluding AOL (non-GAAP) would have been 3.1 percent.
  • Year-to-date consolidated revenue growth was 3.3 percent, after adjusting for the inclusion of AOL in the third quarter and the sale of the public sector business in 2014 (non-GAAP). On this same basis, Verizon continues to expect consolidated revenue growth of at least 3 percent for full-year 2015.
  • New revenue streams from the Internet of Things (IoT) totaled approximately $175 million in third-quarter 2015 and about $495 million year to date. In August Verizon launched hum, a telematics service that creates a smart, connected driving experience with an addressable market of 150 million vehicles in the U.S.
  • Cash flow from operating activities increased to $28.4 billion at the end of third-quarter 2015, compared with $23.2 billion at the end of third-quarter 2014. This year's cash flow included a non-recurring $2.4 billion related to the monetization of tower assets in the first quarter.
  • Excluding the tower transaction, free cash flow (non-GAAP, cash flow from operations less capital expenditures) totaled $13.5 billion at the end of third-quarter 2015. Verizon continues to expect full-year 2015 capital expenditures to range between $17.5 billion and $18.0 billion.

Verizon Wireless delivers profitable, quality growth

In third-quarter 2015, Verizon Wireless continued to deliver profitable, quality postpaid connections growth and low churn, which demonstrates high customer loyalty.

Wireless financial highlights

  • Total revenues were $23.0 billion in third-quarter 2015, up 5.4 percent year over year. Service revenues totaled $17.6 billion, down 4.1 percent year over year. Over the same period, equipment revenues increased to $4.3 billion, up from $2.5 billion, as more customers chose to buy new devices with installment pricing.
  • Service revenues plus installment billings increased 1.2 percent year over year. The percentage of phone activations on installment plans grew to about 58 percent in third-quarter 2015, compared with 49 percent in second-quarter 2015 and only 12 percent in third-quarter 2014. Verizon expects the percentage of phone activations on installment plans to increase to about 70 percent in fourth-quarter 2015.
  • In third-quarter 2015, wireless operating income margin was 33.3 percent, up from 31.9 percent in third-quarter 2014. Segment EBITDA margin on service revenues (non-GAAP, earnings before interest taxes, depreciation and amortization, divided by service revenues) was 56.4 percent, compared with 49.5 percent in third-quarter 2014. Segment EBITDA margin on total revenues (non-GAAP) was 43.2 percent, compared with 41.6 percent in third-quarter 2014.

Wireless operational highlights

  • Verizon Wireless reported 1.3 million retail postpaid net additions in third-quarter 2015, with improvements from second-quarter 2015 in the number of 4G smartphone and total postpaid phone net adds. These net additions do not include any wholesale or IoT connections.
  • Verizon added 889,000 4G smartphones to its postpaid customer base in third-quarter 2015. Postpaid phone net adds totaled 430,000 as net smartphone adds of 694,000 were partially offset by a net decline of basic phones. Tablet net adds totaled 818,000 in the quarter, and net prepaid devices declined by 80,000.
  • During the third quarter, 5.6 million phones were activated on device installment plans. Verizon has about 19 million device payment phone connections in total, representing approximately 22 percent of its postpaid phone base. Overall, more than 30 percent of Verizon's postpaid phone customers are on unsubsidized service pricing.
  • At the end of third-quarter 2015, the company had 110.8 million retail connections, a 4.3 percent year-over-year increase, and 105.0 million retail postpaid connections, a 4.9 percent year-over-year increase.
  • 4G devices now constitute more than 76 percent of the retail postpaid connections base, with the LTE network handling approximately 89 percent of total wireless data traffic in third-quarter 2015 – an increase of about 75 percent in network data megabytes in the past year.
  • About 7 percent of Verizon's retail postpaid base upgraded to a new device in third-quarter 2015. In the past year, the number of 4G smartphones in Verizon's customer base has increased by about 34 percent, to 64.6 million. The company continues to see opportunities to upgrade its postpaid connections base of about 15 million basic phones and nearly 7 million 3G smartphones to 4G devices.
  • Customer retention remained high, with retail postpaid churn at 0.93 percent in third-quarter 2015, a year-over-year improvement of 7 basis points.
  • Wireless capital investment totaled $2.9 billion in third-quarter 2015 and $8.5 billion year to date, up 8.4 percent from a year ago, as Verizon continues to optimize its network. Densification plans, which include deployment of small cells, DAS (distributed antenna system) nodes and in-building solutions, are improving capacity in the near-term as Verizon prepositions its network for 5G.

Fios continues to drive wireline consumer revenue growth

In the wireline segment, Verizon's results were highlighted by continued revenue and customer growth for fios fiber-optic-based services.

Wireline financial highlights

  • In third-quarter 2015, consumer revenues were $4.0 billion, an increase of 2.8 percent compared with third-quarter 2014. Fios revenues represented 79 percent of the total.
  • Total fios revenues grew 7.5 percent, to $3.4 billion, comparing third-quarter 2015 with third-quarter 2014.
  • Wireline operating income margin was 6.2 percent in third-quarter 2015, up from 2.3 percent in third-quarter 2014. Segment EBITDA margin (non-GAAP) was 23.5 percent in third-quarter 2015, compared with 23.0 percent in third-quarter 2014.

Wireline operational highlights

  • In third-quarter 2015, Verizon added 114,000 net new fios internet connections and 42,000 net new fios video connections. Both are increases from second-quarter 2015. Verizon had totals of 6.9 million fios internet and 5.8 million fios video connections at the end of the third quarter, representing year-over-year increases of 7.2 percent and 5.0 percent, respectively.
  • Fios internet penetration (subscribers as a percentage of potential subscribers) was 41.7 percent at the end of third-quarter 2015, compared with 40.6 percent at the end of third-quarter 2014. In the same periods, fios video penetration was 35.6 percent, compared with 35.5 percent.
  • By the end of third-quarter 2015, two-thirds of consumer fios internet customers subscribed to Quantum, which provides speeds ranging from 50 to 500 megabits per second. The highest rate of growth is in the 75-megabit-per-second tier, to which one-fourth of Quantum customers subscribe.
  • Verizon Enterprise Solutions helped clients around the globe drive growth and business performance, manage risk and improve the customer experience in the third quarter. The company deployed innovative enterprise-grade network, cloud, security, IoT, mobility and other business solutions for some of the world's leading brands, including Ciena, Darden Restaurants and Waste Management; energy and utility clients Valero, E.ON, National Grid and Hawaiian Electric Industries; insurance clients Ageas and ACE Group; manufacturing and building clients Terex Corporation, Diebold, Incorporated, and Gilbane Building Company; healthcare clients Eli Lilly and Company, and Visiting Nurse Service of New York; and government and non-profit clients U.S. Army Reserve Command and the National Sheriffs' Association.

Wireline results include operations being sold to Frontier Communications Corp. in the non-contiguous states of California, Florida and Texas, as Verizon seeks to focus wireline efforts on the East Coast. Verizon's consolidated balance sheet reflects these operations as assets held for sale until the transaction's closing, expected at the end of first-quarter 2016.

NOTE: See the accompanying schedules and www.verizon.com/about/investors for reconciliations to generally accepted accounting principles (GAAP) for non-GAAP financial measures cited in this document.

Verizon Communications Inc. (NYSE, Nasdaq: VZ) employs a diverse workforce of 177,900 and generated more than $127 billion in 2014 revenues. Verizon Wireless operates America's most reliable wireless network, with 110.8 million retail connections nationwide. Headquartered in New York, Verizon also provides communications and entertainment services over America's most advanced fiber-optic network, and delivers integrated business solutions to customers worldwide. For more information, visit www.verizon.com/news/.

VERIZON'S ONLINE NEWS CENTER: Verizon news releases, executive speeches and biographies, media contacts and other information are available at Verizon's online News Center at www.verizon.com/news/. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.

Forward-looking statements In this communication 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 operations. Forward-looking statements also include those preceded or followed by the words "anticipates," "believes," "estimates," "hopes" or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the "SEC"), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: adverse conditions in the U.S. and international economies; the effects of competition in the markets in which we operate; material changes in technology or technology substitution; disruption of our key suppliers' provisioning of products or services; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks; breaches of network or information technology security, natural disasters, terrorist attacks or acts of war or significant litigation and any resulting financial impact not covered by insurance; our high level of indebtedness; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; material adverse changes in labor matters, including labor negotiations, and any resulting financial and/or operational impact; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or treaties, or in their interpretation; changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; and the inability to implement our business strategies.

 

Verizon Communications Inc.

Condensed Consolidated Statements of Income

(dollars in millions, except per share amounts)

 3 Mos. Ended 

 3 Mos. Ended 

 9 Mos. Ended 

 9 Mos. Ended 

Unaudited

9/30/15

9/30/14

% Change

9/30/15

9/30/14

 % Change 

Operating Revenues

Service revenues and other

$    28,866

$    29,107

(0.8)

$      85,840

$      87,152

(1.5)

Wireless equipment revenues

4,292

2,479

73.1

11,526

6,735

71.1

Total Operating Revenues

33,158

31,586

5.0

97,366

93,887

3.7

Operating Expenses

Cost of services

7,589

7,046

7.7

21,571

21,230

1.6

Wireless cost of equipment

5,716

5,206

9.8

16,279

14,298

13.9

Selling, general and administrative expense

8,309

8,277

0.4

24,222

24,159

0.3

Depreciation and amortization expense

4,009

4,167

(3.8)

11,978

12,465

(3.9)

Total Operating Expenses

25,623

24,696

3.8

74,050

72,152

2.6

Operating Income

7,535

6,890

9.4

23,316

21,735

7.3

Equity in earnings (losses) of unconsolidated businesses

(18)

(48)

(62.5)

(70)

1,811

 * 

Other income and (expense), net

51

71

(28.2)

158

(757)

 * 

Interest expense

(1,202)

(1,255)

(4.2)

(3,742)

(3,633)

3.0

Income Before Provision for Income Taxes

6,366

5,658

12.5

19,662

19,156

2.6

Provision for income taxes

(2,195)

(1,864)

17.8

(6,800)

(5,052)

34.6

Net Income

$        4,171

$      3,794

9.9

$      12,862

$       14,104

(8.8)

Net income attributable to noncontrolling interests

$           133

$            99

34.3

$            374

$         2,248

(83.4)

Net income attributable to Verizon

4,038

3,695

9.3

12,488

11,856

5.3

Net Income

$        4,171

$        3,794

9.9

$       12,862

$       14,104

(8.8)

Basic Earnings per Common Share 

Net income attributable to Verizon

$            .99

$            .89

11.2

$            3.05

$           3.03

0.7

Weighted average number of common shares (in millions)

4,072

4,152

4,089

3,912

Diluted Earnings per Common Share (1)

Net income attributable to Verizon

$            .99

$            .89

11.2

$            3.05

$           3.03

0.7

Weighted average number of common 

shares-assuming dilution (in millions)

4,078

4,159

4,095

3,919

Footnotes:

(1)

Diluted Earnings per Common Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represents the only potential dilution.

Certain reclassifications have been made, where appropriate, to reflect comparable operating results.

   *

Not meaningful

 

Verizon Communications Inc.

Condensed Consolidated Balance Sheets

(dollars in millions)

Unaudited

9/30/15

12/31/14

$ Change

Assets

Current assets

Cash and cash equivalents 

$               3,875

$             10,598

$         (6,723)

Short-term investments

306

555

(249)

Accounts receivable, net

13,105

13,993

(888)

Inventories

1,319

1,153

166

Assets held for sale

895

552

343

Prepaid expenses and other

2,268

2,772

(504)

Total current assets

21,768

29,623

(7,855)

Plant, property and equipment

216,674

230,508

(13,834)

Less accumulated depreciation

134,112

140,561

(6,449)

82,562

89,947

(7,385)

Investments in unconsolidated businesses

779

802

(23)

Wireless licenses

86,331

75,341

10,990

Goodwill

25,124

24,639

485

Other intangible assets, net

8,322

5,728

2,594

Non-current assets held for sale

10,117

-

10,117

Deposit for wireless licenses

-

921

(921)

Other assets

7,070

5,707

1,363

Total Assets

$           242,073

$           232,708

$           9,365

Liabilities and Equity

Current liabilities 

Debt maturing within one year

$               7,264

$               2,735

$           4,529

Accounts payable and accrued liabilities

17,721

16,680

1,041

Liabilities related to assets held for sale

461

-

461

Other

9,046

8,649

397

Total current liabilities

34,492

28,064

6,428

Long-term debt

105,060

110,536

(5,476)

Employee benefit obligations

32,962

33,280

(318)

Deferred income taxes

42,896

41,578

1,318

Non-current liabilities related to assets held for sale

940

-

940

Other liabilities

11,181

5,574

5,607

Equity

Common stock

424

424

-

Contributed capital

11,184

11,155

29

Reinvested earnings

8,156

2,447

5,709

Accumulated other comprehensive income

600

1,111

(511)

Common stock in treasury, at cost

(7,604)

(3,263)

(4,341)

Deferred compensation – employee 

stock ownership plans and other

378

424

(46)

Noncontrolling interests

1,404

1,378

26

Total equity

14,542

13,676

866

Total Liabilities and Equity

$           242,073

$           232,708

$           9,365

Verizon - Selected Financial and Operating Statistics

Unaudited

9/30/15

 12/31/14 

Total debt (in millions)

$            112,324

$            113,271

Net debt (in millions)

$            108,449

$            102,673

Net debt / Adjusted EBITDA(1)

2.4x

2.4x

Common shares outstanding end of period (in millions)

4,069

4,155

Total employees

177,900

177,300

Quarterly cash dividends declared per common share

$                0.565

$                0.550

Footnotes:

(1)

Adjusted EBITDA excludes the effects of non-operational items.

The unaudited condensed consolidated balance sheets are based on preliminary information.

 

 

Verizon Communications Inc.

Condensed Consolidated Statements of Cash Flows

(dollars in millions)

9 Mos. Ended

9 Mos. Ended

Unaudited

9/30/15

9/30/14

$ Change

Cash Flows from Operating Activities

Net Income

$         12,862

$         14,104

$       (1,242)

Adjustments to reconcile net income to net cash provided by 

operating activities:

Depreciation and amortization expense

11,978

12,465

(487)

Employee retirement benefits

1,184

843

341

Deferred income taxes

890

914

(24)

Provision for uncollectible accounts

1,136

684

452

Equity in earnings (losses) of unconsolidated businesses, net of dividends     received

98

(1,785)

1,883

Changes in current assets and liabilities, net of effects from 

acquisition/disposition of businesses

1,443

(816)

2,259

Other, net

(1,165)

(3,252)

2,087

Net cash provided by operating activities

28,426

23,157

5,269

Cash Flows from Investing Activities

Capital expenditures (including capitalized software)

(12,540)

(12,624)

84

Acquisitions of investments and businesses, net of cash acquired

(3,205)

(180)

(3,025)

Acquisitions of wireless licenses

(9,811)

(343)

(9,468)

Proceeds from dispositions of wireless licenses

-

2,367

(2,367)

Proceeds from dispositions of businesses

-

120

(120)

Other, net

960

230

730

Net cash used in investing activities

(24,596)

(10,430)

(14,166)

Cash Flows from Financing Activities

Proceeds from long-term borrowings

6,497

21,575

(15,078)

Repayments of long-term borrowings and capital lease obligations

(7,168)

(12,594)

5,426

Decrease in short-term obligations, excluding current maturities

(305)

(426)

121

Dividends paid

(6,373)

(5,653)

(720)

Proceeds from sale of common stock

31

34

(3)

Purchase of common stock for treasury

(5,134)

-

(5,134)

Acquisition of noncontrolling interest

-

(58,886)

58,886

Other, net

1,899

(3,087)

4,986

Net cash used in financing activities

(10,553)

(59,037)

48,484

Decrease in cash and cash equivalents

(6,723)

(46,310)

39,587

Cash and cash equivalents, beginning of period

10,598

53,528

(42,930)

Cash and cash equivalents, end of period

$           3,875

$           7,218

$       (3,343)

Footnotes:

Certain reclassifications of prior period amounts have been made, where appropriate, to reflect comparable operating results.

 

 

Verizon Communications Inc.

Wireless - Selected Financial Results

 (dollars in millions) 

 3 Mos. Ended 

 3 Mos. Ended 

 9 Mos. Ended 

 9 Mos. Ended 

Unaudited

9/30/15

9/30/14

 % Change 

9/30/15

9/30/14

 % Change 

Operating Revenues

Service

$     17,598

$     18,356

(4.1)

$       53,201

$       54,421

(2.2)

Equipment

4,292

2,480

73.1

11,526

6,737

71.1

Other

1,115

999

11.6

3,219

3,039

5.9

Total Operating Revenues

23,005

21,835

5.4

67,946

64,197

5.8

Operating Expenses

Cost of services

2,010

1,837

9.4

5,809

5,343

8.7

Cost of equipment

5,716

5,206

9.8

16,279

14,298

13.9

Selling, general and administrative expense

5,351

5,698

(6.1)

16,009

16,991

(5.8)

Depreciation and amortization expense

2,260

2,139

5.7

6,675

6,307

5.8

Total Operating Expenses

15,337

14,880

3.1

44,772

42,939

4.3

Operating Income

$        7,668

$        6,955

10.3

$       23,174

$       21,258

9.0

Operating Income Margin

33.3%

31.9%

34.1%

33.1%

Segment EBITDA

$        9,928

$        9,094

9.2

$       29,849

$       27,565

8.3

Segment EBITDA Margin

43.2%

41.6%

43.9%

42.9%

Segment EBITDA Service Margin

56.4%

49.5%

56.1%

50.7%

Footnotes:

     The segment financial results and metrics above are adjusted to exclude the effects of non-operational items, as the Company's      chief operating decision maker excludes these items in assessing business unit performance.

     Intersegment transactions have not been eliminated.

     Certain reclassifications have been made, where appropriate, to reflect comparable operating results.

 

 

Verizon Communications Inc.

Wireless - Selected Operating Statistics

Unaudited

9/30/15

9/30/14

 % Change 

Connections ('000)

Retail postpaid

105,023

100,103

4.9

Retail prepaid

5,737

6,053

(5.2)

Retail

110,760

106,156

4.3

 3 Mos. Ended 

 3 Mos. Ended 

 9 Mos. Ended 

 9 Mos. Ended 

Unaudited

9/30/15

9/30/14

 % Change 

9/30/15

9/30/14

 % Change 

Net Add Detail ('000) (1)

Retail postpaid

1,289

1,516

(15.0)

2,988

3,496

(14.5)

Retail prepaid

(80)

9

 * 

(394)

5

 * 

Retail

1,209

1,525

(20.7)

2,594

3,501

(25.9)

Account Statistics

Retail Postpaid Accounts ('000) (2)

35,677

35,435

0.7

Retail postpaid ARPA

$     152.38

$     161.24

(5.5)

$       154.08

$       160.21

(3.8)

Retail postpaid connections per account (2)

2.94

2.82

4.3

Churn Detail

Retail postpaid

0.93%

1.00%

0.95%

1.00%

Retail

1.21%

1.29%

1.24%

1.30%

Retail Postpaid Connection Statistics

Total Smartphone postpaid % of phones activated

91.3%

91.0%

91.5%

90.6%

Total Smartphone postpaid phone base (2)

82.4%

76.5%

Total Internet postpaid base (2)

16.0%

13.1%

Other Operating Statistics

Capital expenditures (in millions)

$        2,921

$        2,483

17.6

$         8,466

$         7,808

8.4

Footnotes:

(1)   Connection net additions exclude acquisitions and adjustments.

(2)   Statistics presented as of end of period.

        The segment financial results and metrics above are adjusted to exclude the effects of non-operational items, as the Company's         chief operating decision maker excludes these items in assessing business unit performance.

        Intersegment transactions have not been eliminated.

        Certain reclassifications have been made, where appropriate, to reflect comparable operating results.

*       Not meaningful

 

 

Verizon Communications Inc.

Wireline - Selected Financial Results

 (dollars in millions) 

 3 Mos. Ended 

 3 Mos. Ended 

 9 Mos. Ended 

 9 Mos. Ended 

Unaudited

9/30/15

9/30/14

 % Change 

9/30/15

9/30/14

 % Change 

Operating Revenues

Consumer retail

$        4,012

$        3,902

2.8

$       12,041

$       11,606

3.7

Small business

585

613

(4.6)

1,778

1,858

(4.3)

Mass Markets

4,597

4,515

1.8

13,819

13,464

2.6

Strategic services

2,012

2,067

(2.7)

6,090

6,213

(2.0)

Core

1,196

1,308

(8.6)

3,606

4,077

(11.6)

Global Enterprise

3,208

3,375

(4.9)

9,696

10,290

(5.8)

Global Wholesale

1,466

1,544

(5.1)

4,481

4,689

(4.4)

Other

84

142

(40.8)

251

426

(41.1)

Total Operating Revenues

9,355

9,576

(2.3)

28,247

28,869

(2.2)

Operating Expenses

Cost of services

5,203

5,325

(2.3)

15,696

16,006

(1.9)

Selling, general and administrative expense

1,952

2,048

(4.7)

5,990

6,228

(3.8)

Depreciation and amortization expense

1,623

1,978

(17.9)

5,075

6,016

(15.6)

Total Operating Expenses

8,778

9,351

(6.1)

26,761

28,250

(5.3)

Operating Income

$           577

$           225

 * 

$          1,486

$             619

 * 

Operating Income Margin

6.2%

2.3%

5.3%

2.1%

Segment EBITDA

$        2,200

$        2,203

(0.1)

$          6,561

$          6,635

(1.1)

Segment EBITDA Margin

23.5%

23.0%

23.2%

23.0%

Footnotes:

     The segment financial results and metrics above are adjusted to exclude the effects of non-operational items,  as the Company's chief      operating decision maker excludes these items in assessing business unit performance.

     Intersegment transactions have not been eliminated.

     Certain reclassifications have been made, where appropriate, to reflect comparable operating results.

*    Not meaningful

 

 

Verizon Communications Inc.

Wireline - Selected Operating Statistics

Unaudited

9/30/15

9/30/14

 % Change 

Connections ('000)

fios video subscribers

5,807

5,533

5.0

fios internet subscribers

6,935

6,471

7.2

fios digital voice residence connections

4,703

4,514

4.2

fios digital connections

17,445

16,518

5.6

HSI

2,288

2,675

(14.5)

Total Broadband connections

9,223

9,146

0.8

Primary residence switched access connections

4,982

5,794

(14.0)

Primary residence connections

9,685

10,308

(6.0)

Total retail residence voice connections

10,051

10,743

(6.4)

Total voice connections

18,740

20,089

(6.7)

 3 Mos. Ended 

 3 Mos. Ended 

 9 Mos. Ended 

 9 Mos. Ended 

Unaudited

9/30/15

9/30/14

 % Change 

9/30/15

9/30/14

 % Change 

Net Add Detail ('000)

fios video subscribers

42

114

(63.2)

158

271

(41.7)

fios internet subscribers

114

162

(29.6)

319

399

(20.1)

fios digital voice residence connections

42

74

(43.2)

101

266

(62.0)

fios digital connections

198

350

(43.4)

578

936

(38.2)

HSI

(112)

(93)

20.4

(301)

(268)

12.3

Total Broadband connections

2

69

(97.1)

18

131

(86.3)

Primary residence switched access connections

(212)

(213)

(0.5)

(614)

(687)

(10.6)

Primary residence connections

(170)

(139)

22.3

(513)

(421)

21.9

Total retail residence voice connections

(188)

(160)

17.5

(564)

(486)

16.0

Total voice connections

(339)

(302)

12.3

(1,055)

(996)

5.9

Revenue Statistics

fios revenues (in millions)

$        3,439

$        3,200

7.5

$       10,229

$          9,366

9.2

Strategic services as a % of total Enterprise revenues

62.7%

61.2%

62.8%

60.4%

Other Operating Statistics

Capital expenditures (in millions)

$        1,202

$        1,464

(17.9)

$          3,413

$          4,194

(18.6)

Wireline employees ('000)

71.4

79.4

fios video open for sale ('000)

16,304

15,602

fios video penetration

35.6%

35.5%

fios internet open for sale ('000)

16,641

15,945

fios internet penetration

41.7%

40.6%

Footnotes:

The segment financial results and metrics above are adjusted to exclude the effects of non-operational items, as the Company's chief operating decision maker excludes these items in assessing business unit performance.

Intersegment transactions have not been eliminated.

Certain reclassifications have been made, where appropriate, to reflect comparable operating results.

 

 

SOURCE Verizon Communications Inc.



RELATED LINKS

http://www.verizon.com