Verizon finishes 2023 with strong cash flow and wireless customer growth
- Double-digit gains across fixed wireless and total wireless postpaid net additions.
- Full-year 2023 wireless service revenue was $76.7 billion, up 3.2 percent from full-year 2022.
- 31 percent year-over-year increase in fixed wireless net additions.
- 26 percent spike in total wireless postpaid net additions for full-year 2023 compared to 2022.
- Full-year 2023 cash flow from operations increased to $37.5 billion.
- Full-year 2023 free cash flow increased to $18.7 billion.
- Verizon reported total broadband net additions of 413,000 for the fourth quarter of 2023.
- Verizon reported total wireless service revenue of $19.4 billion, a 3.2 percent increase year over year.
- Retail postpaid phone net additions of 449,000, and retail postpaid net additions of 1,460,000.
- Verizon expects total wireless service revenue growth of 2.0 percent to 3.5 percent for 2024.
- Consolidated net loss for the fourth quarter of $2.6 billion.
- Full-year 2023 earnings per share was $2.75, compared with $5.06 in 2022.
- Full-year 2023 consolidated operating revenue was $134.0 billion, down 2.1 percent year over year.
- Verizon's total unsecured debt as of the end of the year was $128.5 billion, a $2.1 billion increase sequentially.
- Verizon reported 289,000 wireless retail prepaid net losses in fourth-quarter 2023.
Insights
The reported increase in wireless service revenue for Verizon Communications Inc. by 3.2 percent year over year to $76.7 billion is a significant indicator of the company's core business strength. This growth, particularly in the fixed wireless and total wireless postpaid net additions, suggests a successful expansion in a competitive market. The spike of 26 percent in total wireless postpaid net additions for full-year 2023 indicates a robust customer acquisition strategy and may reflect positively on the company's market share.
However, the reported decrease in total operating revenue of 2.1 percent year over year and the consolidated net loss of $2.6 billion for the fourth quarter, compared to a net income of $6.7 billion in the same quarter of the previous year, raises concerns about overall profitability. The pre-tax loss from special items, such as the goodwill impairment charge and the market-to-market adjustment for pension liabilities, suggests significant non-operational challenges that impacted the bottom line. Investors should consider the sustainability of Verizon's growth in the context of these financial headwinds and the company's strategy to mitigate such losses in the future.
Verizon's performance in the fixed wireless sector, with net additions up over 31 percent year over year, reflects the increasing demand for reliable internet services, likely spurred by the ongoing remote work trend and the expansion of 5G technology. The company's achievement in the Consumer fixed wireless market, particularly in the first 76 C-Band markets, indicates a strategic advantage in deploying the latest technology to capture consumer interest. With over 3 million subscribers and a goal of reaching 4 to 5 million by the end of 2025, Verizon's early investment in C-Band spectrum appears to be paying off.
Despite this, the decline in Fios Internet net additions and a decrease in Consumer Fios revenue growth may suggest a shift in consumer preference toward fixed wireless solutions over traditional fiber-optic services. This trend could have implications for Verizon's long-term infrastructure investments and product offerings. Additionally, the lower upgrade volumes leading to a decrease in wireless equipment revenue highlight a potential saturation in the smartphone market or a longer consumer upgrade cycle, which could affect future equipment sales.
Verizon's increased full-year free cash flow from $14.1 billion in 2022 to $18.7 billion in 2023 represents a positive signal for investors, as it enhances the company's ability to invest in growth, pay dividends and reduce debt. However, the increase in net unsecured debt in the fourth quarter of 2023 by $4.2 billion from the previous quarter, alongside a net loss reported for the same period, may be a point of concern for debt sustainability and credit risk. The debt-to-income ratio of approximately 10.6 times and the net unsecured debt to adjusted EBITDA ratio of approximately 2.6 times should be monitored closely for any potential impact on the company's credit ratings and borrowing costs.
In addition, the company's guidance for 2024, including wireless service revenue growth of 2.0 percent to 3.5 percent and adjusted EBITDA growth of 1.0 percent to 3.0 percent, suggests cautious optimism. However, investors should consider the potential risks associated with the company's ability to achieve these targets, especially in light of the competitive pressures in the telecommunications industry and any unforeseen economic downturns that could affect consumer spending and corporate budgets.
Posts double-digit gains across fixed wireless and total wireless postpaid net additions
Full-year 2023 wireless service revenue was
Fixed wireless net additions for full-year 2023 were up over 31 percent year over year reflecting the increased demand driven by the strength and reliability of the product
Total wireless postpaid net additions for full-year 2023 spike 26 percent compared to 2022
Total wireless postpaid phone net additions jump to 449,000 for fourth-quarter 2023 compared to 217,000 for fourth-quarter 2022
Consumer postpaid phone gross additions for fourth-quarter 2023 increase nearly 17 percent year over year, marking the best quarterly performance in four years
2023 highlights
Consolidated:
- Full-year 2023 earnings per share (EPS) of
$2.75 , compared with$5.06 in 2022; adjusted EPS1, excluding special items, of$4.71 , compared with 2022 adjusted EPS1 of$5.18 . - Total operating revenue of
$134.0 billion in full-year 2023, down 2.1 percent year over year. - Full-year 2023 cash flow from operations of
$37.5 billion , an increase from$37.1 billion in 2022. - Full-year 2023 free cash flow1 of
$18.7 billion , an increase from$14.1 billion in 2022.
4Q 2023 highlights
Consolidated:
- Earnings per share was
$(0.64) , compared with earnings per share of$1.56 in fourth-quarter 2022; adjusted EPS1, excluding special items, of$1.08 , compared with$1.19 in fourth-quarter 2022. - Total operating revenue of
$35.1 billion , a decrease of 0.3 percent from fourth-quarter 2022. - Consolidated net loss for the fourth-quarter of
$2.6 billion , compared to consolidated net income of$6.7 billion in fourth-quarter 2022, and consolidated adjusted EBITDA1 of$11.7 billion , in line with the 2022 result.
Total Broadband:
- Total broadband net additions of 413,000, represented the fifth consecutive quarter that Verizon reported more than 400,000 broadband net additions. Total broadband net additions included 375,000 fixed wireless net additions, bringing the subscriber base to over 3 million. In fourth-quarter 2023, more than 80 percent of Consumer fixed wireless gross additions were in Verizon's first 76 C-Band markets. Verizon is ahead of schedule to achieve its goal of 4 to 5 million subscribers by the end of 2025.
- 55,000 Fios Internet net additions, down 4,000 from the fourth-quarter 2022.
- 10.7 million total broadband subscribers as of the end of fourth-quarter 2023.
Total Wireless:
- Total wireless service revenue2 of
$19.4 billion , a 3.2 percent increase year over year. - Retail postpaid phone net additions of 449,000, and retail postpaid net additions of 1,460,000.
- Retail postpaid churn of 1.18 percent, and retail postpaid phone churn of 0.93 percent.
NEW YORK, Jan. 23, 2024 (GLOBE NEWSWIRE) -- Verizon Communications Inc. (NYSE, Nasdaq: VZ) reported strong fourth-quarter and full-year 2023 results highlighted by total wireless postpaid net additions, fixed wireless net additions and increased wireless service revenue.
"After delivering continuous improvement throughout 2023, we ended the year strong and continue to pursue the right balance of growth and profitability," said Verizon Chairman and CEO Hans Vestberg. "2023 was a year of change. We have the right assets and the best team in place and are well-positioned for growth in 2024."
For fourth-quarter 2023, Verizon reported earnings per share of
Fourth-quarter 2023 financial results reflected a pre-tax loss from special items of approximately
For full-year 2023, Verizon reported
Consolidated results
- Total consolidated operating revenue in fourth-quarter 2023 of
$35.1 billion , down 0.3 percent from fourth-quarter 2022. The decrease can be attributed to wireless equipment revenue, which was 2.0 percent lower than 2022, as total postpaid upgrades declined by 17.9 percent. Full-year 2023 consolidated operating revenue was$134.0 billion , down 2.1 percent year over year. - Total wireless service revenue2 in fourth-quarter 2023 was
$19.4 billion , up 3.2 percent year over year, driven primarily by pricing actions implemented in recent quarters, the larger allocation of our administrative and telco recovery fees from other revenue into wireless service revenue, higher premium price plan adoption and growth from fixed wireless access offerings. - Full-year 2023 cash flow from operations was
$37.5 billion , an increase from$37.1 billion in 2022. This marks a year over year increase of over$300 million , primarily due to working capital improvements. - Full-year 2023 capital expenditures were
$18.8 billion , down from$23.1 billion in 2022. - The company ended 2023 with free cash flow1 of
$18.7 billion , an increase from$14.1 billion in 2022. - Consolidated net loss for the fourth-quarter 2023 was
$2.6 billion , compared to consolidated net income of$6.7 billion in fourth-quarter 2022, and consolidated adjusted EBITDA1 was$11.7 billion , in line with the 2022 result. - Verizon's total unsecured debt as of the end of the year was
$128.5 billion , a$2.1 billion increase sequentially, but$2.1 billion lower year over year. The company's net unsecured debt1 at the end of the year was$126.4 billion , a$4.2 billion increase from third-quarter 2023, but$1.6 billion lower year over year. At the end of fourth-quarter 2023, Verizon's ratio of unsecured debt to net income (LTM) was approximately 10.6 times and net unsecured debt to adjusted EBITDA ratio1 was approximately 2.6 times.
Verizon Consumer results
- Total Verizon Consumer revenue in fourth-quarter 2023 was
$27.0 billion , an increase of 0.7 percent year over year as growth in service revenue was offset by declines in wireless equipment revenue and other revenue. For full-year 2023, total Consumer revenue was$101.6 billion , a decrease of 1.8 percent from full-year 2022. - Wireless service revenue in fourth-quarter 2023 increased 3.2 percent year over year driven primarily by growth in Consumer wireless postpaid Average Revenue Per Account (ARPA) resulting from pricing actions implemented in recent quarters, the larger allocation of our administrative and telco recovery fees from other revenue into wireless service revenue, higher premium price plan adoption, and growth from fixed wireless access offerings. For full-year 2023, total Consumer wireless service revenue was
$63.4 billion , an increase of 3.0 percent from full-year 2022. - Consumer wireless retail postpaid churn was 1.08 percent in fourth-quarter 2023, and wireless retail postpaid phone churn was 0.88 percent.
- In fourth-quarter 2023, Consumer reported 318,000 wireless retail postpaid phone net additions, representing an improvement of 369,000 from third-quarter 2023 and 277,000 from fourth-quarter 2022. Consumer postpaid phone gross additions in the fourth-quarter 2023 increased 16.9 percent year over year, the best performance in four years.
- Verizon continues to see better performance in the markets where C-Band is deployed. In Verizon's first 76 C-Band markets, fourth-quarter growth in Consumer postpaid phone gross additions was more than 8 percentage points better than in non C-Band markets and postpaid phone churn remains lower than non C-Band markets.
- Consumer reported 289,000 wireless retail prepaid net losses in fourth-quarter 2023.
- Consumer reported 231,000 fixed wireless net additions and 53,000 Fios Internet net additions in fourth-quarter 2023. Consumer Fios revenue was
$2.9 billion in fourth-quarter 2023, an increase of 1.0 percent year over year. Full-year 2023 Consumer Fios revenue was$11.6 billion , relatively flat year over year. - In fourth-quarter 2023, Consumer operating income was
$7.0 billion , an increase of 0.1 percent year over year, and segment operating income margin was 26.1 percent, a decrease from 26.3 percent in fourth-quarter 2022. Full-year 2023 Consumer operating income was$29.0 billion , an increase of 0.6 percent year over year, and segment operating income margin was 28.5 percent, an increase from 27.9 percent in full-year 2022. Segment EBITDA1 in fourth-quarter 2023 was$10.4 billion , an increase of 2.4 percent year over year. This improvement can be attributed to wireless service revenue growth and lower upgrade volumes. Segment EBITDA margin1 in fourth-quarter 2023 was 38.5 percent, an increase from 37.9 percent in fourth-quarter 2022. Full-year 2023 segment EBITDA margin1 was 41.4 percent, an increase from 40.2 percent in 2022.
Verizon Business results
- Total Verizon Business revenue was
$7.6 billion in fourth-quarter 2023, a decrease of 3.6 percent year over year as lower wireline revenue and lower wireless equipment revenue was partially offset by higher wireless service revenue. For full-year 2023, total Business revenue was$30.1 billion , a 3.1 percent decrease year over year. - Business wireless service revenue in fourth-quarter 2023 was
$3.4 billion , an increase of 3.0 percent year over year. This was driven by the larger allocation of our administration and telco recovery fees from other revenue into wireless service revenue, continued strong net additions and the benefit of pricing actions implemented earlier in the year. Full-year 2023 Business wireless service revenue was$13.4 billion , an increase of 4.1 percent compared to full-year 2022. - Business reported 292,000 wireless retail postpaid net additions in fourth-quarter 2023, including 131,000 postpaid phone net additions. This was the 10th consecutive quarter that Business reported more than 125,000 postpaid phone net additions. Business continues to grow volumes and expand its relationships with customers strengthening its position as a wireless market share leader.
- Business wireless retail postpaid churn was 1.48 percent in fourth-quarter 2023, and wireless retail postpaid phone churn was 1.12 percent.
- Business reported 144,000 fixed wireless net additions in fourth-quarter 2023.
- In fourth-quarter 2023, Verizon Business operating income was
$443 million , a decrease of 24.3 percent year over year, and segment operating income margin was 5.8 percent, a decrease from 7.4 percent in fourth-quarter 2022. Full-year 2023 segment operating income was$2.1 billion , a decrease of 21.5 percent year over year, and segment operating income margin was 6.9 percent, compared with 8.5 percent in full-year 2022. Segment EBITDA1 in fourth-quarter 2023 was$1.6 billion , a decrease of 4.5 percent year over year, driven by continued declines in high margin wireline revenues. Segment EBITDA margin1 in fourth-quarter 2023 was 21.1 percent, a decrease from 21.3 percent in fourth-quarter 2022. For the full year, segment EBITDA margin1 was 21.8 percent, a decrease from 22.3 percent in 2022.
Outlook and guidance
The company does not provide a reconciliation for any of the following adjusted (non-GAAP) forecasts because it cannot, without unreasonable effort, predict the special items that could arise, and the company is unable to address the probable significance of the unavailable information.
For 2024, Verizon expects the following:
- Total wireless service revenue growth2 of 2.0 percent to 3.5 percent.
- Adjusted EBITDA growth1 of 1.0 percent to 3.0 percent.
- Adjusted EPS1 of
$4.50 t o$4.70 . - Capital expenditures between
$17.0 billion and$17.5 billion . - Adjusted effective income tax rate1 in the range of 22.5 percent to 24.0 percent.
1 Non-GAAP financial measure. See the accompanying schedules and www.verizon.com/about/investors for reconciliations of non-GAAP financial measures cited in this document to most directly comparable financial measures under generally accepted accounting principles (GAAP).
2 Total wireless service revenue represents the sum of Consumer and Business segments.
Verizon Communications Inc. (NYSE, Nasdaq: VZ) was formed on June 30, 2000 and is one of the world’s leading providers of technology and communications services. Headquartered in New York City and with a presence around the world, Verizon generated revenues of
VERIZON’S ONLINE MEDIA CENTER: News releases, stories, media contacts and other resources are available at 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,” “assumes,” “believes,” “estimates,” “expects,” “forecasts,” “hopes,” “intends,” “plans,” “targets” 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. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. 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: the effects of competition in the markets in which we operate, including the inability to successfully respond to competitive factors such as prices, promotional incentives and evolving consumer preferences; failure to take advantage of, or respond to competitors' use of, developments in technology and address changes in consumer demand; performance issues or delays in the deployment of our 5G network resulting in significant costs or a reduction in the anticipated benefits of the enhancement to our networks; the inability to implement our business strategy; adverse conditions in the U.S. and international economies, including inflation and changing interest rates in the markets in which we operate; cyber attacks impacting our networks or systems and any resulting financial or reputational impact; damage to our infrastructure or disruption of our operations from natural disasters, extreme weather conditions, acts of war, terrorist attacks or other hostile acts and any resulting financial or reputational impact; disruption of our key suppliers’ or vendors' provisioning of products or services, including as a result of geopolitical factors or the potential impacts of global climate change; material adverse changes in labor matters and any resulting financial or operational impact; damage to our reputation or brands; the impact of public health crises on our operations, our employees and the ways in which our customers use our networks and other products and services; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; allegations regarding the release of hazardous materials or pollutants into the environment from our, or our predecessors’, network assets and any related government investigations, regulatory developments, litigation, penalties and other liability, remediation and compliance costs, operational impacts or reputational damage; our high level of indebtedness; significant litigation and any resulting material expenses incurred in defending against lawsuits or paying awards or settlements; 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; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or regulations, or in their interpretation, or challenges to our tax positions, resulting in additional tax expense or liabilities; and 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.
Non-GAAP Reconciliations - Consolidated Verizon
Consolidated EBITDA and Consolidated Adjusted EBITDA
| (dollars in millions) | |||||||||||||||||||||||||||||||
| Unaudited | 3 Mos. Ended 12/31/23 | 3 Mos. Ended 9/30/23 | 3 Mos. Ended 6/30/23 | 3 Mos. Ended 3/31/23 | 3 Mos. Ended 12/31/22 | 3 Mos. Ended 9/30/22 | 3 Mos. Ended 6/30/22 | 3 Mos. Ended 3/31/22 | |||||||||||||||||||||||
| Consolidated Net Income (Loss) | $ | (2,573 | ) | $ | 4,884 | $ | 4,766 | $ | 5,018 | $ | 6,698 | $ | 5,024 | $ | 5,315 | $ | 4,711 | ||||||||||||||
| Add: | |||||||||||||||||||||||||||||||
| Provision for income taxes | 756 | 1,308 | 1,346 | 1,482 | 2,113 | 1,496 | 1,542 | 1,372 | |||||||||||||||||||||||
| Interest expense | 1,599 | 1,433 | 1,285 | 1,207 | 1,105 | 937 | 785 | 786 | |||||||||||||||||||||||
| Depreciation and amortization expense (1) | 4,516 | 4,431 | 4,359 | 4,318 | 4,218 | 4,324 | 4,321 | 4,236 | |||||||||||||||||||||||
| Consolidated EBITDA | $ | 4,298 | $ | 12,056 | $ | 11,756 | $ | 12,025 | $ | 14,134 | $ | 11,781 | $ | 11,963 | $ | 11,105 | |||||||||||||||
| Add/(subtract): | |||||||||||||||||||||||||||||||
| Other (income) expense, net (2) | $ | 807 | $ | (170 | ) | $ | (210 | ) | $ | (114 | ) | $ | (2,687 | ) | $ | 439 | $ | (49 | ) | $ | 924 | ||||||||||
| Equity in losses (earnings) of unconsolidated businesses | 11 | 18 | 33 | (9 | ) | (4 | ) | (2 | ) | (41 | ) | 3 | |||||||||||||||||||
| Severance charges | 296 | — | 237 | — | 304 | — | — | — | |||||||||||||||||||||||
| Verizon Business Group goodwill impairment | 5,841 | — | — | — | — | — | — | — | |||||||||||||||||||||||
| Asset rationalization | 325 | — | 155 | — | — | — | — | — | |||||||||||||||||||||||
| Legal settlement | 100 | — | — | — | — | — | — | — | |||||||||||||||||||||||
| Business transformation costs | — | 176 | — | — | — | — | — | — | |||||||||||||||||||||||
| Non-strategic business shutdown | — | 158 | — | — | — | — | — | — | |||||||||||||||||||||||
| 7,380 | 182 | 215 | (123 | ) | (2,387 | ) | 437 | (90 | ) | 927 | |||||||||||||||||||||
| Consolidated Adjusted EBITDA | $ | 11,678 | $ | 12,238 | $ | 11,971 | $ | 11,902 | $ | 11,747 | $ | 12,218 | $ | 11,873 | $ | 12,032 | |||||||||||||||
| Consolidated Adjusted EBITDA - Year over year change % | (0.6)% | ||||||||||||||||||||||||||||||
| Footnotes: | |||||||||||||||||||||||||||||||
| (1) Includes Amortization of acquisition-related intangible assets and a portion of the Non-strategic business shutdown, where applicable. | |||||||||||||||||||||||||||||||
| (2) Includes Pension and benefits remeasurement adjustments and Early debt redemption costs, where applicable. | |||||||||||||||||||||||||||||||
Consolidated EBITDA and Consolidated Adjusted EBITDA (LTM)
| Unaudited | 12 Mos. Ended 12/31/23 | 12 Mos. Ended 9/30/23 | 12 Mos. Ended 12/31/22 | ||||||||
| Consolidated Net Income | $ | 12,095 | $ | 21,366 | $ | 21,748 | |||||
| Add: | |||||||||||
| Provision for income taxes | 4,892 | 6,249 | 6,523 | ||||||||
| Interest expense | 5,524 | 5,030 | 3,613 | ||||||||
| Depreciation and amortization expense (1) | 17,624 | 17,326 | 17,099 | ||||||||
| Consolidated EBITDA | $ | 40,135 | $ | 49,971 | $ | 48,983 | |||||
| Add/(subtract): | |||||||||||
| Other (income) expense, net (2) | $ | 313 | $ | (3,181 | ) | $ | (1,373 | ) | |||
| Equity in losses (earnings) of unconsolidated businesses | 53 | 38 | (44 | ) | |||||||
| Severance charges | 533 | 541 | 304 | ||||||||
| Verizon Business Group goodwill impairment | 5,841 | — | — | ||||||||
| Asset rationalization | 480 | 155 | — | ||||||||
| Legal settlement | 100 | — | — | ||||||||
| Business transformation costs | 176 | 176 | — | ||||||||
| Non-strategic business shutdown | 158 | 158 | — | ||||||||
| 7,654 | (2,113 | ) | (1,113 | ) | |||||||
| Consolidated Adjusted EBITDA | $ | 47,789 | $ | 47,858 | $ | 47,870 | |||||
| Footnotes: | |||||||||||
| (1) Includes Amortization of acquisition-related intangible assets and a portion of the Non-strategic business shutdown, where applicable. | |||||||||||
| (2) Includes Pension and benefits remeasurement adjustments and Early debt redemption costs, where applicable. | |||||||||||
| Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio | |||||||||||
| (dollars in millions) | |||||||||||
| Unaudited | 12/31/23 | 9/30/23 | 12/31/22 | ||||||||
| Debt maturing within one year | $ | 12,973 | $ | 12,950 | $ | 9,963 | |||||
| Long-term debt | 137,701 | 134,441 | 140,676 | ||||||||
| Total Debt | 150,674 | 147,391 | 150,639 | ||||||||
| Less Secured debt | 22,183 | 20,951 | 20,008 | ||||||||
| Unsecured Debt | 128,491 | 126,440 | 130,631 | ||||||||
| Less Cash and cash equivalents | 2,065 | 4,210 | 2,605 | ||||||||
| Net Unsecured Debt | $ | 126,426 | $ | 122,230 | $ | 128,026 | |||||
| Consolidated Net Income (LTM) | $ | 12,095 | $ | 21,748 | |||||||
| Unsecured Debt to Consolidated Net Income Ratio | 10.6x | 6.0x | |||||||||
| Consolidated Adjusted EBITDA (LTM) | $ | 47,789 | $ | 47,870 | |||||||
| Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio | 2.6x | 2.7x | |||||||||
| Net Unsecured Debt - Quarter over quarter change | $ | 4,196 | |||||||||
| Net Unsecured Debt - Year over year change | $ | (1,600 | ) | ||||||||
Adjusted Earnings per Common Share (Adjusted EPS)
| (dollars in millions, except per share amounts) | ||||||||||||||||||||||||
| Unaudited | 3 Mos. Ended 12/31/23 | 3 Mos. Ended 12/31/22 | ||||||||||||||||||||||
| Pre-tax | Tax | After-Tax | Pre-tax | Tax | After-Tax | |||||||||||||||||||
| EPS | $ | (0.64 | ) | $ | 1.56 | |||||||||||||||||||
| Amortization of acquisition-related intangible assets | $ | 227 | $ | (57 | ) | $ | 170 | 0.04 | $ | 115 | $ | (34 | ) | $ | 81 | 0.02 | ||||||||
| Severance, pension and benefits charges (credits) | 1,288 | (319 | ) | 969 | 0.23 | (2,214 | ) | 552 | (1,662 | ) | (0.40 | ) | ||||||||||||
| Verizon Business Group goodwill impairment | 5,841 | (52 | ) | 5,789 | 1.37 | — | — | — | — | |||||||||||||||
| Asset rationalization | 325 | (80 | ) | 245 | 0.06 | — | — | — | — | |||||||||||||||
| Legal settlement | 100 | (25 | ) | 75 | 0.02 | — | — | — | — | |||||||||||||||
| $ | 7,781 | $ | (533 | ) | $ | 7,248 | $ | 1.72 | $ | (2,099 | ) | $ | 518 | $ | (1,581 | ) | $ | (0.38 | ) | |||||
| Adjusted EPS | $ | 1.08 | $ | 1.19 | ||||||||||||||||||||
| Footnotes: | ||||||||||||||||||||||||
| Adjusted EPS may not add due to rounding. | ||||||||||||||||||||||||
| (dollars in millions, except per share amounts) | |||||||||||||||||||||||
| Unaudited | 12 Mos. Ended 12/31/23 | 12 Mos. Ended 12/31/22 | |||||||||||||||||||||
| Pre-tax | Tax | After-Tax | Pre-tax | Tax | After-Tax | ||||||||||||||||||
| EPS | $ | 2.75 | $ | 5.06 | |||||||||||||||||||
| Amortization of acquisition-related intangible assets | $ | 865 | $ | (219 | ) | $ | 646 | 0.15 | $ | 826 | $ | (214 | ) | $ | 612 | 0.15 | |||||||
| Severance, pension and benefits charges (credits) | 1,525 | (378 | ) | 1,147 | 0.27 | (1,371 | ) | 339 | (1,032 | ) | (0.25 | ) | |||||||||||
| Verizon Business Group goodwill impairment | 5,841 | (52 | ) | 5,789 | 1.37 | — | — | — | — | ||||||||||||||
| Asset rationalization | 480 | (113 | ) | 367 | 0.09 | — | — | — | — | ||||||||||||||
| Legal settlement | 100 | (25 | ) | 75 | 0.02 | — | — | — | — | ||||||||||||||
| Business transformation costs | 176 | (45 | ) | 131 | 0.03 | — | — | — | — | ||||||||||||||
| Non-strategic business shutdown | 179 | (83 | ) | 96 | 0.02 | — | — | — | — | ||||||||||||||
| Early debt redemption costs | — | — | — | — | 1,241 | (316 | ) | 925 | 0.22 | ||||||||||||||
| $ | 9,166 | $ | (915 | ) | $ | 8,251 | $ | 1.96 | $ | 696 | $ | (191 | ) | $ | 505 | $ | 0.12 | ||||||
| Adjusted EPS | $ | 4.71 | $ | 5.18 | |||||||||||||||||||
| Footnotes: | |||||||||||||||||||||||
| Adjusted EPS may not add due to rounding. | |||||||||||||||||||||||
| Free Cash Flow | ||||||||
| (dollars in millions) | ||||||||
| Unaudited | 12 Mos. Ended 12/31/23 | 12 Mos. Ended 12/31/22 | ||||||
| Net Cash Provided by Operating Activities | $ | 37,475 | $ | 37,141 | ||||
| Capital expenditures (including capitalized software) | (18,767 | ) | (23,087 | ) | ||||
| Free Cash Flow | $ | 18,708 | $ | 14,054 | ||||
Non-GAAP Reconciliations - Segments
| Segment EBITDA and Segment EBITDA Margin | ||||||||||||||||
| Consumer | ||||||||||||||||
| (dollars in millions) | ||||||||||||||||
| Unaudited | 3 Mos. Ended 12/31/23 | 3 Mos. Ended 12/31/22 | 12 Mos. Ended 12/31/23 | 12 Mos. Ended 12/31/22 | ||||||||||||
| Operating Income | $ | 7,035 | $ | 7,028 | $ | 29,011 | $ | 28,846 | ||||||||
| Add Depreciation and amortization expense | 3,344 | 3,111 | 13,077 | 12,716 | ||||||||||||
| Segment EBITDA | $ | 10,379 | $ | 10,139 | $ | 42,088 | $ | 41,562 | ||||||||
| Year over year change % | 2.4 | % | 1.3 | % | ||||||||||||
| Total operating revenues | $ | 26,954 | $ | 26,770 | $ | 101,626 | $ | 103,506 | ||||||||
| Operating Income Margin | 26.1 | % | 26.3 | % | 28.5 | % | 27.9 | % | ||||||||
| Segment EBITDA Margin | 38.5 | % | 37.9 | % | 41.4 | % | 40.2 | % | ||||||||
| Business | ||||||||||||||||
| (dollars in millions) | ||||||||||||||||
| Unaudited | 3 Mos. Ended 12/31/23 | 3 Mos. Ended 12/31/22 | 12 Mos. Ended 12/31/23 | 12 Mos. Ended 12/31/22 | ||||||||||||
| Operating Income | $ | 443 | $ | 585 | $ | 2,066 | $ | 2,631 | ||||||||
| Add Depreciation and amortization expense | 1,164 | 1,098 | 4,488 | 4,312 | ||||||||||||
| Segment EBITDA | $ | 1,607 | $ | 1,683 | $ | 6,554 | $ | 6,943 | ||||||||
| Year over year change % | (4.5) | % | (5.6) | % | ||||||||||||
| Total operating revenues | $ | 7,618 | $ | 7,900 | $ | 30,122 | $ | 31,072 | ||||||||
| Operating Income Margin | 5.8 | % | 7.4 | % | 6.9 | % | 8.5 | % | ||||||||
| Segment EBITDA Margin | 21.1 | % | 21.3 | % | 21.8 | % | 22.3 | % | ||||||||
Media contacts:
Katie Magnotta
201-602-9235
katie.magnotta@verizon.com
Eric Wilkens
201-572-9317
eric.wilkens@verizon.com
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