VERIZON COMMUNICATIONS INC Quarterly Report for Q1 Ended Mar 31, 2019

Summary

Verizon Communications Inc. reported solid financial results for the first quarter of 2019, demonstrating growth in its core Wireless segment and a slight overall revenue increase. Total operating revenues grew by 1.1% to $32.1 billion, primarily driven by a 3.7% increase in Wireless segment revenues, which reached $22.7 billion. This growth was supported by strong performance in service revenues and continued expansion in connected devices. While the Wireline segment experienced a revenue decline of 3.9% to $7.3 billion, this was largely anticipated due to ongoing shifts in technology and increased competition. The company maintained a strong focus on its strategic priorities, including network investments, particularly in 5G technology, and operational efficiencies. Net income attributable to Verizon increased to $5.03 billion, or $1.22 per diluted share, up from $4.55 billion, or $1.11 per diluted share, in the prior year's comparable period, indicating improved profitability.

Key Highlights

• 1Total operating revenues increased by 1.1% year-over-year to $32.1 billion.
• 2Wireless segment revenues grew by 3.7% to $22.7 billion, driven by strong service and 'other' revenue growth.
• 3Wireline segment revenues decreased by 3.9% to $7.3 billion, reflecting industry trends and competition.
• 4Net income attributable to Verizon increased by 10.7% to $5.03 billion ($1.22 per diluted share), compared to $4.55 billion ($1.11 per diluted share) in Q1 2018.
• 5Capital expenditures were $4.3 billion, reflecting ongoing investments in network infrastructure, including 5G deployment.
• 6Free cash flow increased significantly by 34.2% to $2.8 billion, demonstrating improved operational cash generation.
• 7The company adopted the new lease accounting standard (Topic 842) on January 1, 2019, resulting in the recognition of significant operating lease right-of-use assets and liabilities on the balance sheet.

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