Summary
Verizon Communications Inc. reported its first-quarter 2017 financial results, indicating a challenging period marked by a decline in overall revenues, largely driven by the Wireless segment. Total operating revenues decreased by 7.3% year-over-year, primarily due to a 5.1% drop in Wireless revenues, stemming from lower service revenue and a decline in overage revenue. The Wireline segment saw a slight 0.6% decrease. Despite revenue pressures, the company has been actively managing its debt, undertaking significant debt exchange offers and tender offers in the quarter. Furthermore, Verizon has made strategic acquisitions, notably the wireline business of XO Holdings, and is progressing with the acquisition of Yahoo's operating business, which is expected to close mid-2017.
Financial Highlights
49 data points| Revenue | $29.81B |
| Cost of Revenue | $4.81B |
| Gross Profit | $25.01B |
| SG&A Expenses | $6.75B |
| Operating Expenses | $22.85B |
| Operating Income | $6.96B |
| Interest Expense | $1.13B |
| Net Income | $3.45B |
| EPS (Basic) | $0.85 |
| EPS (Diluted) | $0.84 |
| Shares Outstanding (Basic) | 4.08B |
| Shares Outstanding (Diluted) | 4.09B |
Key Highlights
- 1Total operating revenues declined by 7.3% to $29.81 billion compared to the prior year's first quarter.
- 2Wireless segment revenue decreased by 5.1% to $20.88 billion, impacted by lower service and equipment revenues.
- 3Wireline segment revenue saw a marginal decrease of 0.6% to $7.88 billion.
- 4The company completed the acquisition of XO Holdings' wireline business for approximately $1.8 billion.
- 5Significant debt management activities occurred, including debt exchanges and tender offers totaling billions of dollars.
- 6Net income attributable to Verizon decreased to $3.45 billion from $4.31 billion in the prior year's first quarter.
- 7Cash flows from operating activities significantly decreased, largely due to discretionary pension plan contributions and changes in how device payment plan receivables are monetized.