Summary
Verizon Communications Inc. reported its performance for the fiscal year ending December 30, 2017, in its 2018 10-K filing. The company operates primarily through two segments: Wireless and Wireline. The Wireless segment, which is the larger contributor to revenue, offers a comprehensive suite of wireless voice and data services and equipment sales across the United States, leveraging its extensive 4G LTE network. The Wireline segment provides voice, data, and video communications products and services to consumers, businesses, and government agencies, with a strategic focus on its fiber-optic Fios network and enterprise solutions. Verizon demonstrated a strong market position in its Wireless segment, highlighting its leadership in 4G LTE network coverage and performance. The company also indicated significant investments and development in 5G wireless technology, with plans for commercial launches in select markets during 2018. In its Wireline segment, Verizon is actively transitioning towards a fiber-based network to support growing demand for high-speed data and advanced services, while also divesting certain non-strategic assets. The company faces intense competition in both segments but emphasizes its network quality, innovation, and customer service as key competitive advantages.
Financial Highlights
53 data points| Revenue | $126.03B |
| Cost of Revenue | $22.15B |
| Gross Profit | $103.89B |
| SG&A Expenses | $28.59B |
| Operating Expenses | $98.61B |
| Operating Income | $27.43B |
| Interest Expense | $4.73B |
| Net Income | $30.10B |
| EPS (Basic) | $7.37 |
| EPS (Diluted) | $7.36 |
| Shares Outstanding (Basic) | 4.08B |
| Shares Outstanding (Diluted) | 4.09B |
Key Highlights
- 1Verizon maintains its position as the largest wireless service provider in the U.S. by retail connections and revenue, powered by its extensive 4G LTE network covering over 98% of the U.S. population.
- 2The company is actively investing in and preparing for the rollout of 5G wireless technology, with plans to launch commercial 5G residential broadband services in 2018 in several U.S. markets.
- 3The Wireline segment is undergoing a strategic shift towards a fiber-based network (Fios) to meet increasing demand for high-speed data, while also divesting certain legacy assets.
- 4Verizon has been involved in strategic acquisitions and divestitures to optimize its portfolio, including the acquisition of XO Holdings' wireline business and NextLink Wireless for spectrum.
- 5The company operates in a highly competitive landscape across both wireless and wireline sectors, facing pressure from national carriers, cable companies, and other technology providers.
- 6Significant capital investment is directed towards network densification, technology upgrades (like 4G LTE and future 5G), and expanding fiber optic infrastructure.
- 7The Media segment, operating under the Oath brand (combining Yahoo and AOL assets), aims to leverage digital content and advertising to create new revenue streams.