Robust wi-fi service income progress highlights Verizon’s 4Q and 2022 outcomes

Verizon Sourcing LLC

Verizon Sourcing LLC

Firm enters 2023 with momentum in wi-fi mobility and wi-fi broadband

2022 highlights

Consolidated:

  • Full-year 2022 earnings per share (EPS) of $5.06, in contrast with $5.32 in 2021; adjusted EPS1, excluding particular gadgets, of $5.18, in contrast with 2021 adjusted EPS1 2 of $5.50.

  • Complete working income of $136.8 billion in full-year 2022, up 2.4 p.c 12 months over 12 months.

4Q 2022 highlights

Consolidated:

  • $1.56 in EPS, in contrast with $1.11 in fourth-quarter 2021; adjusted EPS1, excluding particular gadgets, of $1.19, in contrast with $1.33 in fourth-quarter 20212.

  • Complete working income of $35.3 billion, a rise of three.5 p.c from fourth-quarter 2021.

  • Internet revenue of $6.7 billion, a rise of 41.4 p.c from fourth-quarter 2021, and adjusted EBITDA1 of $11.7 billion, down 0.2 p.c 12 months over 12 months.

Complete Wi-fi:

  • Complete wi-fi service income5 of $18.8 billion, a 5.9 p.c enhance 12 months over 12 months.

  • Postpaid cellphone internet additions3 of 217,000, and retail postpaid internet additions3 of 1,434,000, which was the most effective single quarter efficiency in seven years. Full-year 2022 retail postpaid internet additions3 had been 2,605,000, a rise of 23.2 p.c from full-year 2021. This success was pushed by robust mounted wi-fi momentum, pill and wearables adoption and sequential enchancment in cellphone internet additions.

  • Complete retail postpaid churn3 of 1.14 p.c, and retail postpaid cellphone churn3 of 0.89 p.c.

Complete Broadband:

  • Complete broadband internet additions of 416,000 was the most effective whole broadband efficiency in over a decade, reflecting a robust demand for Fios and glued wi-fi merchandise. This end result included 379,000 mounted wi-fi internet additions, a rise of 37,000 mounted wi-fi internet additions from third-quarter 2022. The corporate reported sequential quarterly internet addition progress in mounted wi-fi all through 2022. Full-year 2022 whole broadband internet additions had been 1,290,000, a rise from 409,000 whole broadband internet additions in full-year 2021.

  • 59,000 Fios Web internet additions.

NEW YORK, Jan. 24, 2023 (GLOBE NEWSWIRE) —  Verizon Communications Inc. (NYSE, Nasdaq: VZ) closed 2022 with fourth-quarter outcomes marked by wi-fi service income progress and the very best whole wi-fi retail postpaid internet additions3 in seven years.

“We delivered on the operational expectations and monetary targets that we set within the second half of 2022,” mentioned Verizon Chairman and CEO Hans Vestberg. “We’re quickly constructing out our C-Band spectrum with essentially the most aggressive community deployment in our firm’s historical past and are effectively positioned to enhance and speed up our efficiency. Wi-fi mobility and nationwide broadband might be two of essentially the most vital contributors to our progress for the subsequent a number of years.”

For fourth-quarter 2022, Verizon reported EPS of $1.56, in contrast with $1.11 in fourth-quarter 2021. On an adjusted foundation1, excluding particular gadgets, EPS was $1.19 in fourth-quarter 2022, in contrast with adjusted EPS1 of $1.33 in fourth-quarter 20212.

Fourth-quarter 2022 earnings included a pre-tax internet acquire from particular gadgets of roughly $2.1 billion. This included a internet pre-tax profit of roughly $2.5 billion associated to a mark-to-market adjustment for pension and OPEB (different post-employment advantages) liabilities, a $304 million cost associated to severance and the impacts of amortization of intangible belongings associated to TracFone and different acquisitions of $115 million.

For full-year 2022, Verizon reported $5.06 in EPS, in contrast with $5.32 for full-year 2021. On an adjusted foundation1, excluding particular gadgets, 2022 EPS was $5.18, in contrast with $5.50 for 20212.

Consolidated outcomes

  • Complete consolidated working income in fourth-quarter 2022 of $35.3 billion, up 3.5 p.c from fourth-quarter 2021. Income progress was pushed by service and different income and tools income. Full-year 2022 consolidated working income was $136.8 billion, up 2.4 p.c 12 months over 12 months.

  • Complete wi-fi service income5 in fourth-quarter 2022 elevated 5.9 p.c 12 months over 12 months. This enhance was pushed by limitless plan migrations, the corporate’s highest whole wi-fi retail postpaid internet additions in seven years, pricing actions that had been carried out starting in June 2022 and a full quarter contribution from TracFone. Full-year 2022 wi-fi service income5 elevated 8.6 p.c 12 months over 12 months. The outcomes for each fourth-quarter 2021 and full-year 2021 included a partial contribution from the acquisition of TracFone, which was accomplished in November 2021.

  • Internet revenue of $6.7 billion, a rise of 41.4 p.c in comparison with fourth-quarter 2021, and adjusted EBITDA1 of $11.7 billion, a decline of 0.2 p.c 12 months over 12 months.

  • Money circulate from operations totaled $37.1 billion in 2022, a lower from $39.5 billion in 2021. This decline was primarily pushed by larger gadget cost receivables as the corporate’s gadget cost portfolio elevated by roughly $5 billion throughout 2022.

  • Full-year 2022 capital expenditures had been $23.1 billion, together with C-Band spending of $6.2 billion.

  • The corporate ended 2022 with free money circulate1 of $14.1 billion, a lower from $19.3 billion at year-end 2021.

  • Verizon’s unsecured debt as of the top of fourth-quarter 2022 decreased by $766 million sequentially to $130.6 billion. The corporate’s internet unsecured debt1 steadiness decreased sequentially by $1.3 billion to $128.0 billion, and its internet unsecured debt to adjusted EBITDA ratio1 at quarter-end was roughly 2.7 occasions.

Verizon Client outcomes

  • Complete Verizon Client income was $26.8 billion, a rise of 4.2 p.c 12 months over 12 months, pushed by wi-fi service income. For full-year 2022, whole Verizon Client income was $103.5 billion, a rise of 8.6 p.c from full-year 2021.

  • Wi-fi service income elevated 6.1 p.c 12 months over 12 months. For full-year 2022, whole Client wi-fi service income was $61.5 billion, a rise of 9.6 p.c from full-year 2021. This enhance was pushed by premium adoption, total postpaid connection progress, pricing actions that had been carried out starting in June 2022 and the inclusion of TracFone outcomes.

  • Client wi-fi retail postpaid churn3 was 1.06 p.c in fourth-quarter 2022, and wi-fi retail postpaid cellphone churn3 was 0.86 p.c.

  • In fourth-quarter 2022, Client reported 41,000 wi-fi retail postpaid cellphone internet additions3. Client ended fourth-quarter 2022 with 59 p.c of its postpaid wi-fi cellphone prospects having 5G-capable gadgets.

  • Client reported 175,000 wi-fi retail pay as you go internet losses3 in fourth-quarter 2022.

  • Client reported 262,000 mounted wi-fi internet additions and 56,000 Fios Web internet additions in fourth-quarter 2022. For full-year 2022, Client reported 776,000 mounted wi-fi internet additions and 199,000 Fios Web internet additions. Client Fios income was $2.9 billion in fourth-quarter 2022, flat 12 months over 12 months. Full-year 2022 Client Fios income was $11.6 billion, a rise of 0.6 p.c from full-year 2021.

  • In fourth-quarter 2022, Client working revenue was $7.0 billion, a lower of 4.4 p.c 12 months over 12 months, and section working revenue margin was 26.3 p.c, a lower from 28.6 p.c in fourth-quarter 2021. Full-year 2022 Client working revenue was $28.8 billion and section working revenue margin was 27.9 p.c, a lower from 31.4 p.c in full-year 2021. Phase EBITDA1 in fourth-quarter 2022 was $10.1 billion, a lower of two.0 p.c 12 months over 12 months. This decline was because of larger promotional expense associated to gadget subsidies. Phase EBITDA margin1 was 37.9 p.c, a lower from 40.3 p.c in fourth-quarter 2021. For the complete 12 months, section EBITDA margin1 was 40.2 p.c in 2022, a lower from 43.7 p.c in 2021.

Verizon Enterprise outcomes

  • Complete Verizon Enterprise income was $7.9 billion in fourth-quarter 2022, a rise of 1.2 p.c 12 months over 12 months. Progress was primarily pushed by Small and Medium Enterprise mobility, partially offset by wireline declines. For full-year 2022, whole Verizon Enterprise income was $31.1 billion, flat 12 months over 12 months, as robust wi-fi efficiency was offset by wireline declines.

  • Enterprise wi-fi service income was $3.3 billion, a rise of 4.7 p.c 12 months over 12 months. This progress was pushed predominantly by the continued momentum in including extra prospects onto the platform. Full-year 2022 Enterprise wi-fi service income was $12.8 billion, a rise of three.9 p.c in comparison with full-year 2021.

  • Enterprise reported 455,000 wi-fi retail postpaid internet additions3 in fourth-quarter 2022, together with 176,000 postpaid cellphone internet additions3. This was the sixth consecutive quarter that Enterprise reported greater than 150,000 postpaid cellphone internet additions.

  • Enterprise wi-fi retail postpaid churn3 was 1.38 p.c in fourth-quarter 2022, and wi-fi retail postpaid cellphone churn3 was 1.06 p.c.

  • Enterprise reported 117,000 mounted wi-fi internet additions in fourth-quarter 2022.

  • In fourth-quarter 2022, Verizon Enterprise working revenue was $585 million, a lower of 26.5 p.c 12 months over 12 months, and section working revenue margin was 7.4 p.c, a lower from 10.2 p.c in fourth-quarter 2021. Full-year 2022 section working revenue was $2.6 billion and section working revenue margin was 8.5 p.c, in contrast with 11.1 p.c in full-year 2021. Phase EBITDA1 was $1.7 billion in fourth-quarter 2022, a lower of 8.2 p.c 12 months over 12 months, which mirrored larger subsidies because of elevated activations and sales-related expense, in addition to declines in excessive margin wireline revenues. Phase EBITDA margin1 was 21.3 p.c in fourth-quarter 2022, a lower from 23.5 p.c in fourth-quarter 2021. For the complete 12 months, section EBITDA margin1 was 22.3 p.c, a lower from 24.2 p.c in 2021.

Outlook and steerage

For 2023, Verizon expects the next:

  • Complete wi-fi service income progress4 5 of two.5 p.c to 4.5 p.c.

  • Adjusted EBITDA1 of $47.0 billion to $48.5 billion.

  • Adjusted EPS1 of $4.55 to $4.85.

  • Adjusted efficient revenue tax fee1 within the vary of twenty-two.5 p.c to 24.0 p.c.

  • Capital spending within the vary of $18.25 billion to $19.25 billion, together with the ultimate roughly $1.75 billion of the incremental $10 billion of C-Band-related capital spending.

1Non-GAAP monetary measure. See the accompanying schedules and www.verizon.com/about/buyers for reconciliations of non-GAAP monetary measures cited on this doc to most straight comparable monetary measures below typically accepted accounting ideas (GAAP).

2Adjusted EPS for the prior 12 months interval has been reclassified to conform to present interval presentation.

3On the finish of the fourth quarter of 2022, Verizon totally decommissioned its 3G community, on account of which roughly 909,000 wi-fi retail postpaid connections (576,000 Client and 333,000 Enterprise connections), together with 392,000 wi-fi retail postpaid cellphone connections (180,000 Client and 212,000 Enterprise connections), and 237,000 wi-fi retail pay as you go connections had been disconnected from its community. The impression of the 3G community shutdown has been excluded for functions of calculating wi-fi retail internet additions and wi-fi churn for the respective intervals.

4Features a profit of roughly 190 foundation factors from the reallocation from Different income to Wi-fi service income. This outcomes from a larger allocation of administrative and telco restoration fees which partly recuperate community working prices.

5Complete wi-fi service income represents the sum of Client and Enterprise segments.

Verizon Communications Inc. (NYSE, Nasdaq: VZ) was fashioned on June 30, 2000 and is without doubt one of the world’s main suppliers of know-how and communications providers. Headquartered in New York Metropolis and with a presence around the globe, Verizon generated revenues of $136.8 billion in 2022. The corporate provides information, video and voice providers and options on its award-winning networks and platforms, delivering on prospects’ demand for mobility, dependable community connectivity, safety and management.

VERIZON’S ONLINE MEDIA CENTER: Information releases, tales, media contacts and different sources can be found at verizon.com/information. Information releases are additionally out there via an RSS feed. To subscribe, go to www.verizon.com/about/rss-feeds/.

Ahead-looking statements
On this communication we’ve got made forward-looking statements. These statements are based mostly on our estimates and assumptions and are topic to dangers and uncertainties. Ahead-looking statements embrace the knowledge regarding our doable or assumed future outcomes of operations. Ahead-looking statements additionally embrace these preceded or adopted by the phrases “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “hopes,” “plans” or comparable expressions. For these statements, we declare the safety of the secure harbor for forward-looking statements contained within the Personal Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly launch the outcomes of any revision to those forward-looking statements, besides as required by regulation. Given these dangers and uncertainties, readers are cautioned to not place undue reliance on such forward-looking statements. The next necessary elements, together with these mentioned in our filings with the Securities and Alternate Fee (the “SEC”), may have an effect on future outcomes and will trigger these outcomes to vary materially from these expressed within the forward-looking statements: the consequences of competitors within the markets during which we function, together with any incapacity to efficiently reply to aggressive elements corresponding to costs, promotional incentives and evolving shopper preferences; failure to benefit from, or reply to rivals’ use of, developments in know-how and deal with modifications in shopper demand; efficiency points or delays within the deployment of our 5G community leading to vital prices or a discount within the anticipated advantages of the enhancement to our networks; the lack to implement our enterprise technique; opposed situations within the U.S. and worldwide economies, together with inflation within the markets during which we function; cyber assaults impacting our networks or programs and any ensuing monetary or reputational impression; injury to our infrastructure or disruption of our operations from pure disasters, excessive climate situations, acts of battle, terrorist assaults or different hostile acts and any ensuing monetary or reputational impression; the impression of public well being crises on our operations, our staff and the methods during which our prospects use our networks and different services; disruption of our key suppliers’ or distributors’ provisioning of services or products, together with on account of geopolitical elements, public well being crises or the potential impacts of world local weather change; materials opposed modifications in labor issues and any ensuing monetary or operational impression; modifications within the regulatory atmosphere during which we function, together with any enhance in restrictions on our means to function our networks or companies; our excessive stage of indebtedness; vital litigation and any ensuing materials bills incurred in defending in opposition to lawsuits or paying awards or settlements; an opposed change within the rankings afforded our debt securities by nationally accredited rankings organizations or opposed situations within the credit score markets affecting the fee, together with rates of interest, and/or availability of additional financing; vital will increase in profit plan prices or decrease funding returns on plan belongings; modifications in tax legal guidelines or treaties, or of their interpretation; and modifications in accounting assumptions that regulatory businesses, together with the SEC, could require or that end result from modifications within the accounting guidelines or their software, which may lead to an impression on earnings.

 

Media contacts:

 

Kim Ancin

 

908-559-3227

 

[email protected]

 

 

 

Eric Wilkens

 

201-572-9317

 

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