Verizon Reports Sustained Customer Growth and Migration to 4G in 4Q, With
Margins Expected to Return to Historical Levels in 1Q
NEW YORK, Jan. 6, 2015 -- Verizon Communications Inc. (NYSE, Nasdaq: VZ)
announced today that wireless customer growth remained strong throughout
fourth-quarter 2014.
Verizon reported sustained, strong customer demand for 4G smartphones and
tablets, as the company drove retail postpaid gross additions that were higher
both sequentially and year over year. Customer phone upgrades approached 10
percent, higher than the 9.5 percent previously expected, as upgrade volumes
trended higher as December progressed.
Verizon expects first-quarter 2015 wireless margins to return to historical
levels. As previously announced, the company will report that the
fourth-quarter impacts of strong customer volumes, together with its
promotional offers, put short-term pressure on its wireless segment EBITDA and
EBITDA service margin (non-GAAP, based on earnings before interest, taxes,
depreciation and amortization).
In fourth-quarter 2014, Verizon maintained a disciplined market approach
focused on high-quality customers. Churn was elevated both sequentially and
year over year as a result of the highly competitive quarter. The company also
focused on accelerating upgrades of high-quality customers to 4G smartphones on
its More Everything shared data plans on the nation's most reliable 4G LTE
wireless network.
In wireline, the company reiterated its commitment to achieve full-year
expansion of the wireline segment EBITDA margin (non-GAAP).
Verizon will report fourth-quarter 2014 results on Jan. 22.
Verizon Communications Inc. (NYSE, Nasdaq: VZ), headquartered in New York, is a
global leader in delivering broadband and other wireless and wireline
communications services to consumer, business, government and wholesale
customers. Verizon Wireless operates America's most reliable wireless network,
with more than 106 million retail connections nationwide. Verizon also provides
converged communications, information and entertainment services over America's
most advanced fiber-optic network, and delivers integrated business solutions
to customers in more than 150 countries. A Dow 30 company with more than $120
billion in 2013 revenues, Verizon employs a diverse workforce of 178,500. 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/ . The news releases are 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: the ability to realize the expected benefits of our
transaction with Vodafone in the timeframe expected or at all; 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;
significantly increased levels of indebtedness as a result of the Vodafone
transaction; changes in tax laws or treaties, or in their interpretation;
adverse conditions in the U.S. and international economies; material adverse
changes in labor matters, including labor negotiations, and any resulting
financial and/or operational impact; 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; the effects of competition
in the markets in which we operate; 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; significant increases in benefit plan costs or lower investment
returns on plan assets; and the inability to implement our business strategies.
CONTACT: Bob Varettoni, +1-908-559-6388, robert.a.varettoni@verizon.com
