8-KOther Events

VERIZON COMMUNICATIONS INC 8-K Report, Corporate Update (Apr 29, 2008)

Filed April 29, 2008For Securities:VZ

Summary

This 8-K filing from Verizon Communications Inc. (VZ) details discussions from an April 28, 2008, conference call regarding its first quarter 2008 results and future outlook. The company is targeting double-digit earnings growth over the next three to five years and expects its consolidated effective tax rate to be between 35-36% in 2008. This report provides key operational updates and strategic initiatives, particularly within its Wireline and Wireless segments, aiming to reassure investors about the company's growth trajectory and operational improvements.

Key Highlights

  • 1Verizon is targeting double-digit earnings growth over the next three to five years.
  • 2The company expects its consolidated effective tax rate for 2008 to be in the 35-36% range.
  • 3Verizon Wireline is aiming for 80-100 basis points of year-over-year margin improvement in 2008, targeting an EBITDA margin in the low 28% range.
  • 4Verizon's fiber-to-the-premises (FiOS) deployment is on track to be EBITDA-positive by the end of 2008.
  • 5The FiOS triple play offering has shown a significant positive impact on access line retention, reducing line loss by at least 250 basis points in areas where FiOS TV has been available for over six months.
  • 6Verizon expects revenue growth to steadily improve throughout 2008 for its Verizon Business segment, with Q1 2008 being the low point for the year.
  • 7Verizon Wireless has observed further positive trends in customer additions at premium levels, churn reduction, and data growth following the introduction of unlimited anytime minute plans.

Frequently Asked Questions

Verizon is targeting double-digit earnings growth over a three to five-year planning period.

Verizon expects its consolidated effective tax rate to be in the 35-36 percent range for the year 2008.

Verizon's FiOS deployment is progressing well, with FiOS EBITDA improving sequentially in Q1 2008 and expected to be EBITDA-positive by the end of 2008. The FiOS triple play offering is a key strategy for retaining customers, leading to a reduction in access line loss by at least 250 basis points in areas where FiOS TV has been available for more than six months.

Verizon believes that the first quarter of 2008 will represent the lowest point for revenue growth in the Verizon Business segment for the year, and anticipates steady improvement thereafter.