Verizon reports solid Q2 results as tablets offset slowing smartphone sales | Wifi Walker, J B Chaparal Properties

Verizon reports plain Q2 formula as tablets equivalent negligence smartphone sales

Verizon Delivers Sixth Consecutive Quarter of Double-Digit Operating Income and Earnings Growth

2Q 2014 HIGHLIGHTS

Consolidated

• $1.01 in benefit per share (EPS), compared with 78 cents per share in 2Q 2013.
• 91 cents in practiced EPS (non-GAAP), compared with 73 cents in practiced EPS in 2Q 2013, incompatible non-operational gains in both periods.

Wireless

• Added 1.4 million net sell connections; low sell postpaid shake of 0.94 percent; 104.6 million sum sell connections; 98.6 million sum sell postpaid connections.
• 5.9 percent year-over-year boost in use revenues; 5.3 percent year-over-year boost in sell use revenues; 32.5 percent handling income margin; 50.3 percent shred EBITDA domain on use revenues (non-GAAP).

Wireline

• 5.3 percent year-over-year boost in consumer revenues, a eighth uninterrupted entertain of some-more than 4 percent growth; consumer ARPU (average income per user) adult 11.0 percent.
• 14.4 percent year-over-year boost in FiOS revenues; 139,000 FiOS Internet and 100,000 FiOS Video net additions.

NEW YORK – Verizon Communications Inc. (NYSE, Nasdaq: VZ) currently reported a sixth uninterrupted entertain of double-digit commission enlargement in handling income and benefit per share. In second-quarter 2014, a association delivered combined top-line growth, driven by clever wireless and FiOS revenues, and continued domain expansion.

Chairman and CEO Lowell McAdam said: “Verizon’s second-quarter formula continue to denote a ability to broach clever patron growth, with equally clever financial performance, in a energetic and rival environment. We have good movement streamer into a second half of a year. We sojourn focused on essential enlargement and on suggestive network investments that yield a business with a best, and with a invariably improving, altogether experience.”

Verizon has posted double-digit year-over-year commission enlargement in reported and practiced EPS in 9 of a final 10 quarters.

Verizon reported $1.01 in EPS in second-quarter 2014, compared with 78 cents per share in second-quarter 2013. Second-quarter 2014 formula enclosed an after-tax benefit of $434 million (10 cents per share) associated to a sale of 700 MHz A Block spectrum licenses.

On an practiced basement (non-GAAP), Verizon posted EPS of 91 cents in second-quarter 2014, a 24.7 percent boost compared with 73 cents per share in second-quarter 2013.

Consolidated Highlights

• Verizon accessible a top quarterly income enlargement rate in a past 6 quarters. Total handling revenues in second-quarter 2014 were $31.5 billion, a 5.7 percent boost compared with second-quarter 2013.
• Continued effective cost government gathering second-quarter 2014 handling income to $7.7 billion, a 17.2 percent boost compared with second-quarter 2013.
• Consolidated handling income domain was 24.4 percent for second-quarter 2014, compared with 22.0 percent for second-quarter 2013.
• Consolidated EBITDA domain (non-GAAP, formed on benefit before interest, taxes, debasement and amortization) was 37.6 percent for second-quarter 2014, compared with 35.9 percent for second-quarter 2013.

Verizon Wireless Delivers Strong Customer Additions, Revenue Growth and Profitability

In second-quarter 2014, Verizon Wireless delivered clever enlargement in sell postpaid net connectors and revenues, company-record inscription additions, an boost in smartphone penetration, and continued high shred EBITDA domain on use revenues (non-GAAP).

Wireless Financial Highlights

• Total revenues were $21.5 billion in second-quarter 2014, adult 7.5 percent year over year. Service revenues in a entertain totaled $18.1 billion, adult 5.9 percent year over year. Retail use revenues grew 5.3 percent year over year, to $17.3 billion.
• Retail postpaid ARPA (average income per account) increasing 4.7 percent over second-quarter 2013, to $159.73 per month.
• In second-quarter 2014, wireless handling income domain was 32.5 percent and shred EBITDA domain on use revenues was 50.3 percent. This compares with 32.4 percent and 49.8 percent, respectively, in second-quarter 2013.

Wireless Operational Highlights

• Verizon Wireless combined 1.4 million sell net connections, all of that were postpaid, in a second quarter. These additions bar acquisitions and adjustments.
• At a finish of a second quarter, a association had 104.6 million sell connections. This includes 98.6 million sell postpaid connections, a 4.6 percent boost year over year.
• Verizon Wireless had 35.2 million sell postpaid accounts during a finish of a second quarter, adult 0.7 percent over second-quarter 2013, and 2.80 connectors per account, adult 3.7 percent year over year.
• During second-quarter 2014, a association combined 304,000 postpaid phone net additions and 1.15 million postpaid tablets. At a finish of a quarter, smartphones accounted for scarcely 75 percent of a Verizon Wireless sell postpaid patron phone base, adult from 72 percent in first-quarter 2014. This was also a third true entertain of company-record net additions for tablets.
• Retail postpaid shake was 0.94 percent in a second quarter, down 13 basement points sequentially and adult 1 basement indicate year over year. Retail shake was 1.25 percent in a second quarter, down 12 basement points sequentially and adult 2 basement points year over year.
• The association continued to raise a 4G LTE smartphone lineup. In a second quarter, Verizon Wireless launched a Samsung Galaxy S 5 and ATIV SE, a Lucid 3 by LG and a HTC One (M8). The association also launched a Samsung Galaxy Tab 4 8.0 inscription and announced a Samsung Galaxy Tab 4 10.1 and Galaxy Tab S. Earlier this month, Verizon Wireless launched a Sony Xperia Z2 inscription and a LG G3 smartphone.
• During a second quarter, Verizon Wireless continued to supplement ability to a 4G LTE network, a largest in a United States, regulating AWS spectrum. The additional bandwidth, called XLTE, is now accessible in some-more than 350 markets opposite a country.

Wireline Consumer Revenue Growth Remains Strong

Verizon’s wireline shred reported continued clever formula for consumer services, where year-over-year quarterly revenues now have grown by some-more than 4 percent for 8 uninterrupted quarters.

Wireline Financial Highlights

• Total revenues were $9.8 billion in second-quarter 2014, adult 0.3 percent year over year. This is a initial quarterly year-over-year boost in sum wireline revenues in some-more than 7 years.
• In second-quarter 2014, consumer revenues were $3.9 billion, adult 5.3 percent compared with second-quarter 2013, with FiOS revenues representing 75 percent of a total. Consumer ARPU for wireline services increasing to $122.57 in second-quarter 2014, adult 11.0 percent compared with second-quarter 2013.
• Total FiOS revenues grew 14.4 percent, to $3.1 billion, comparing second-quarter 2014 with second-quarter 2013.
• Wireline handling income domain was 2.7 percent in second-quarter 2014, adult from 0.8 percent in second-quarter 2013. Segment EBITDA domain (non-GAAP) was 23.2 percent in second-quarter 2014, compared with 22.2 percent in second-quarter 2013.
• Sales of vital services to craving business increasing 3.0 percent compared with second-quarter 2013. Strategic services embody private IP, Ethernet, information center, cloud, confidence and managed services.

Wireline Operational Highlights

• In second-quarter 2014, Verizon combined 139,000 net new FiOS Internet connectors and 100,000 net new FiOS Video connections. Verizon had totals of 6.3 million FiOS Internet and 5.4 million FiOS Video connectors during a finish of a second quarter, representing year-over-year increases of 9.3 percent and 7.6 percent, respectively.
• FiOS Internet invasion (subscribers as a commission of intensity subscribers) was 40.1 percent during a finish of second-quarter 2014, compared with 38.6 percent during a finish of second-quarter 2013. In a same periods, FiOS Video invasion was 35.3 percent, compared with 34.5 percent. The FiOS network upheld 19.3 million premises by a finish of second-quarter 2014.
• By a finish of second-quarter 2014, 55 percent of consumer FiOS Internet business subscribed to FiOS Quantum, that provides speeds trimming from 50 to 500 megabits per second, adult from 51 percent during a finish of first-quarter 2014.
• Beginning this week, existent and new FiOS business are receiving upload speeds that counterpart download speeds. Verizon is a initial provider to offer exquisite broadband speeds during no additional charge, enhancing a ability of FiOS business to upload to a cloud, share videos and photos, and video chat.
• Broadband connectors totaled 9.1 million during a finish of second-quarter 2014, a 1.5 percent year-over-year increase. Net broadband connectors increasing by 46,000 in second-quarter 2014, as FiOS Internet net additions some-more than equivalent declines in DSL-based High Speed Internet connections.
• Verizon has been replacing high-maintenance portions of a residential copper network with fiber optics to yield business with some-more volatile infrastructure and revoke repairs, that improves patron compensation and reduces costs. In second-quarter 2014, Verizon migrated an additional 70,000 business to fiber.
• In a second quarter, Verizon Enterprise Solutions began deploying innovative cloud, security, M2M (machine-to-machine), networking and other record solutions for a accumulation of clients around a globe, including medical clients Avera, Cardinal Health, Cerner, iCare and Molina Healthcare; as good as 1-800-Flowers, Anadarko Petroleum Corporation, Commonwealth Bank of Australia, Ferrellgas, Johnson Controls, KG Inicis, Northgate Information Solutions, Peninsula Light Corporation and a state of Colorado’s Statewide Internet Portal Authority.

Guidance Reiterated

Verizon continues to aim 2014 investments in a operation of $16.5 billion to $17 billion, with a diminution in collateral spending as a commission of sum revenues for a full year.

Verizon continues to aim combined top-line enlargement of 4 percent and practiced combined EBITDA domain enlargement in 2014, with certain contributions to essential enlargement from both wireless and wireline.



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