Summary
Verizon Communications Inc.'s 2016 10-K report highlights a robust business primarily driven by its Wireless segment, which accounted for approximately 71% of total revenues, generating $89.2 billion. The company operates the largest 4G LTE and 3G EV-DO networks in the United States, emphasizing network reliability, capacity, and coverage as key competitive advantages. Significant investments are being made in developing 5G technology, with plans to launch a fixed wireless broadband network in 2018. The Wireline segment, contributing about 25% of revenues ($31.3 billion), offers a range of services including Fios broadband and video to consumers, as well as comprehensive solutions for global enterprise and wholesale customers. Strategic initiatives include continued network densification and the "One Fiber" architecture to support future growth. The company has also been active in strategic acquisitions and divestitures, notably the acquisition of AOL and the pending acquisition of Yahoo!'s operating business, aimed at strengthening its digital media and advertising capabilities. Despite significant competition, Verizon's focus remains on leading in network connectivity, developing new business models in digital media and IoT, and delivering integrated solutions to key industry segments.
Financial Highlights
54 data points| Revenue | $125.98B |
| Cost of Revenue | $22.24B |
| Gross Profit | $103.74B |
| SG&A Expenses | $28.10B |
| Operating Expenses | $96.73B |
| Operating Income | $29.25B |
| Interest Expense | $4.38B |
| Net Income | $13.13B |
| EPS (Basic) | $3.22 |
| EPS (Diluted) | $3.21 |
| Shares Outstanding (Basic) | 4.08B |
| Shares Outstanding (Diluted) | 4.09B |
Key Highlights
- 1Verizon Wireless is the largest wireless service provider in the U.S. by retail connections and revenue, generating $89.2 billion in 2016, representing 71% of total company revenue.
- 2The company operates the largest 4G LTE and 3G EV-DO networks in the U.S., covering over 314 million people and is investing in 5G technology with plans for a fixed wireless broadband network launch in 2018.
- 3The Wireline segment generated $31.3 billion in revenue (25% of total), offering Fios broadband and video to consumers and a broad suite of services to enterprise and wholesale customers.
- 4Strategic acquisitions of AOL and pending acquisition of Yahoo! aim to bolster digital content and advertising platforms, aligning with a strategy to develop new business models in digital media.
- 5Verizon is focused on network modernization, including the 'One Fiber' initiative, to support growth in both wireless and wireline services.
- 6The company faces significant competition across both wireless and wireline segments, with network quality, pricing, customer service, and product innovation being key competitive factors.
- 7Capital expenditures remain significant, driven by ongoing network upgrades, densification, and spectrum acquisition to meet growing demand for data services.