Early Access

10-KPeriod: FY2019

VERIZON COMMUNICATIONS INC Annual Report, Year Ended Dec 31, 2019

Filed February 21, 2020For Securities:VZ

Summary

Verizon Communications Inc. (VZ) in its 2019 10-K filing, reported for the fiscal year ending December 30, 2019. The company operates through two main segments: Verizon Consumer Group and Verizon Business Group, with the Consumer segment generating approximately 69% of total revenue and serving a substantial base of wireless and wireline customers. The company's strategy emphasizes network leadership, particularly in its ongoing 5G deployment, which is a key driver for future growth and service innovation. Verizon is investing heavily in network infrastructure to meet increasing data demands and offer enhanced services. The business faces intense competition across all segments, driven by technological advancements, new market entrants, and evolving customer preferences, making network reliability, speed, pricing, and customer service critical differentiators.

Financial Statements
Beta
Revenue$131.87B
SG&A Expenses$29.90B
Operating Expenses$101.49B
Operating Income$30.38B
Interest Expense$4.73B
Net Income$19.27B
EPS (Basic)$4.66
EPS (Diluted)$4.65
Shares Outstanding (Basic)4.14B
Shares Outstanding (Diluted)4.14B

Key Highlights

  • 1Verizon operates with two primary segments: Verizon Consumer Group (69% of revenue) and Verizon Business Group (24% of revenue), serving millions of wireless and wireline customers.
  • 2The company is actively deploying 5G technology, including 5G Home and 5G Ultra Wideband, aiming to enhance network capabilities like speed, reduced latency, and increased device connectivity.
  • 3Verizon's infrastructure investment is significant, focusing on maintaining and upgrading its 4G LTE network while building out its 5G capabilities, including densifying networks with small cell technology.
  • 4The company faces substantial competition from national and regional wireless providers, cable companies, and other technology firms, emphasizing the importance of network quality, pricing, and customer service.
  • 5Verizon Media, a segment focused on digital advertising, e-commerce, and content platforms, contributed approximately $7.5 billion in revenue.
  • 6The company holds a significant amount of debt, approximately $99.1 billion in outstanding unsecured indebtedness as of December 31, 2019, which requires substantial cash flow for servicing.

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