Summary
Verizon Communications Inc. reported its 2023 annual results, highlighting a strategic focus on network evolution and customer experience amidst intense industry competition. The company's consolidated operating revenues saw a slight decrease of 2.1% to $133.97 billion, primarily driven by lower wireless equipment revenues. While the Consumer segment remained the larger contributor to revenue at $101.6 billion, it experienced a 1.8% decline. The Business segment also saw a revenue decrease of 3.1% to $30.1 billion. A significant event during the year was a $5.8 billion goodwill impairment charge related to the Business segment, reflecting market pressures and revised financial projections. Despite revenue headwinds, Verizon continued its network investments, particularly in 5G and C-Band spectrum deployment, aiming to enhance future growth opportunities. The company generated strong free cash flow of $18.7 billion, an increase from the prior year, driven by operating improvements and reduced capital expenditures. Verizon also maintained its commitment to shareholders through dividends, increasing its quarterly payout for the seventeenth consecutive year. Looking ahead, the company anticipates capital expenditures to be in the range of $17.0 billion to $17.5 billion for 2024.
Financial Highlights
50 data points| Revenue | $133.97B |
| SG&A Expenses | $32.74B |
| Operating Expenses | $111.10B |
| Operating Income | $22.88B |
| Interest Expense | $5.52B |
| Net Income | $12.10B |
| EPS (Basic) | $2.76 |
| EPS (Diluted) | $2.75 |
| Shares Outstanding (Basic) | 4.21B |
| Shares Outstanding (Diluted) | 4.21B |
Key Highlights
- 1Consolidated operating revenues decreased by 2.1% to $133.97 billion, impacted by lower wireless equipment sales.
- 2Verizon Consumer Group revenue declined by 1.8% to $101.6 billion, while the Verizon Business Group revenue decreased by 3.1% to $30.1 billion.
- 3A significant $5.8 billion goodwill impairment charge was recorded for the Business segment due to market pressures and revised financial projections.
- 4Free cash flow increased to $18.7 billion, driven by operational improvements and lower capital expenditures.
- 5Capital expenditures for 2024 are projected to be between $17.0 billion and $17.5 billion.
- 6The company increased its quarterly dividend by 1.9% to $0.6650 per share, marking the seventeenth consecutive annual increase.
- 7Verizon continues to invest heavily in its 5G network and C-Band spectrum deployment.