Summary
Verizon Communications Inc. (VZ) in its 2015 10-K filing, released on February 23, 2016, presents a robust picture of its operations, primarily driven by its dominant Wireless segment. The company highlights its extensive 4G LTE network coverage across the U.S., positioning it as a key competitive advantage. Significant focus is placed on strategic initiatives, including the development of 5G technology and expansion into the Internet of Things (IoT) and digital media with the acquisition of AOL. The Wireline segment, while smaller, continues to offer broadband, video, and enterprise solutions, though a significant portion of its local exchange business in California, Florida, and Texas was slated for sale to Frontier Communications, indicating a strategic shift to focus on core strengths. The company emphasizes its commitment to network investment and innovation to meet growing data demands and maintain its market leadership.
Financial Highlights
55 data points| Revenue | $131.62B |
| Cost of Revenue | $23.12B |
| Gross Profit | $108.50B |
| SG&A Expenses | $29.99B |
| Operating Expenses | $98.56B |
| Operating Income | $33.06B |
| Interest Expense | $4.92B |
| Net Income | $17.88B |
| EPS (Basic) | $4.38 |
| EPS (Diluted) | $4.37 |
| Shares Outstanding (Basic) | 4.08B |
| Shares Outstanding (Diluted) | 4.09B |
Key Highlights
- 1Verizon Wireless is the largest wireless service provider in the U.S., with 112.1 million retail connections and revenues of approximately $91.7 billion in 2015, representing about 70% of total company revenues.
- 2The company possesses the most extensive 4G LTE network in the U.S., covering over 98% of the population.
- 3Verizon announced its commitment to developing and deploying 5G wireless technology, with field trials planned for 2016.
- 4A strategic divestiture of the local exchange business in California, Florida, and Texas was underway, including Fios Internet and video customers, to focus on core operations.
- 5The acquisition of AOL Inc. in June 2015 was highlighted as a move to strengthen digital content and advertising capabilities.
- 6Significant capital expenditure is directed towards expanding network capacity and density, with an eye on future technologies like 5G.
- 7The company continued to invest in its wireline infrastructure, including its Fios fiber-to-the-home network, to meet increasing broadband demand.