Summary
Verizon Communications Inc. (VZ) filed an 8-K report on January 11, 2008, detailing an update provided by its President and Chief Operating Officer, Dennis Strigl, at the Citigroup Annual Entertainment Conference on January 10, 2008. The company reiterated its strategic focus on its core network and assets to drive sustained organic growth. Key financial targets were reaffirmed, indicating management's confidence in the company's growth trajectory, particularly within its wireless segment. The update highlighted Verizon's commitment to expanding its FiOS fiber-optic network, passing over 9 million homes by the end of 2007. The company also signaled its intention to secure video franchises in major cities within the next 12 to 18 months, suggesting an aggressive expansion plan for its broadband and video services. Investors should note the continued emphasis on profitability metrics like EBITDA margins for both wireless and wireline businesses.
Key Highlights
- 1Verizon reiterated its target for double-digit wireless revenue growth.
- 2The company aims to achieve wireless EBITDA margins in the 43-45 percent range.
- 3Verizon is targeting an improvement in wireline EBITDA margins from the current 27 percent to 33-34 percent.
- 4By the end of 2007, Verizon's FiOS (fiber-to-the-premises) deployment had passed over 9 million homes.
- 5Verizon plans to obtain video franchises in key major cities within the next 12 to 18 months.
- 6The company's strategic focus remains on its networks and strategic assets for sustained organic growth.