Verizon Communications Inc. · NYSE:VZ
Verizon Communications — Q1 2013 Earnings Presentation
14 slides from Verizon Communications's earnings presentation, Apr 18, 2013
Slide 1: 1st Quarter 2013 Earnings Results
1st QUARTER 2013 EARNINGS RESULTS Fran Shammo Chief Financial Officer April 18, 2013
Slide 2: Safe Harbor Statement
“SAFE HARBOR” STATEMENT NOTE: This presentation contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Pri
Slide 3: Consolidated 1Q '13 Overview
CONSOLIDATED 1Q ’13 OVERVIEW • Strong earnings growth • Wireless momentum drives service revenue and profitability • Solid FiOS revenue and customer growth • Improved growth in Enterprise strategic services • Solid cash flow growth and capital efficiency profile Strategic investments drive solid sta
Slide 4: Consolidated 1Q '13 Financial Summary
CONSOLIDATED 1Q '13 FINANCIAL SUMMARY Total Revenue ($B) $28.2 $30.0 $29.4 • 1Q ’13 revenue growth across all strategic areas Y/Y 4.2% Y/Y Growth – Wireless service +8.6% – FiOS +15.1% 1Q '12 4Q '12 1Q '13 – Enterprise strategic +6.0% ■ Wireless ■ Wireline • Strong cost management EBITDA ($B)* contr
Slide 5: Wireless Revenue & Profitability
WIRELESS REVENUE & PROFITABILITY Service Revenue ($B) $15.4 $16.4 $16.7 8.6% Y/Y Growth • Sustained strong service revenue growth in 1Q’13 1Q '12 4Q '12 1Q '13 • Total revenue growth of 6.8% Segment EBITDA ($B) Y/Y $8.4 $7.1 $6.8 • EBITDA service margin of 18.1% 50.4% expanded 410 bps Y/Y 50.4% Y/Y
Slide 6: Wireless Accounts
WIRELESS ACCOUNTS Retail Postpaid ARPA $146.80 $150.27 $140.58 6.9% Y/Y Growth • Retail postpaid ARPA of $150.27, up 6.9% Y/Y 1Q '12 4Q '12 1Q '13 – 30% of accounts on Share Everything Plans – Smartphone penetration of 61%, Retail Postpaid Accounts (M) up from 47% a year ago 34.6 35.1 34.9 • 34.9M r
Slide 7: Wireless Connections / Net Adds / Churn
WIRELESS CONNECTIONS / NET ADDS / CHURN Retail Connections (M) 98.2 98.9 93.0 • 677K retail postpaid net adds 6.4% in 1Q ’13* Y/Y Growth • 43K retail prepaid net adds in 1Q'12 4Q'12 1Q'13 1Q ’13* ■ Retail Postpaid ■ Retail Prepaid • 6.7% of retail postpaid base Retail Net Adds* (000) Y/Y Growth upgr
Slide 8: Wireless Devices / 4G LTE Coverage
WIRELESS DEVICES / 4G LTE COVERAGE Retail Postpaid Device Activations (M) 12.9 10.0 9.4 10.0 9.7 • 7.2M smartphones activated in 1Q ’13 – About 28% of smartphone activations new to Verizon 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 ■ Smartphones ■ Other • 5.9M 4G LTE device activations in 1Q ’13 4G LTE Devices (
Slide 9: Wireline Revenue & Profitability
WIRELINE REVENUE & PROFITABILITY Total Revenue ($B) $9.9 $10.0 $9.8 Y/Y Growth (1.2%) • Strategic revenue growth 1Q '12 4Q '12 1Q '13 continues in 1Q ’13 – Consumer revenue up 4.3% Y/Y Segment EBITDA ($B) – FiOS revenue grew 15.1% Y/Y Y/Y Growth – Enterprise strategic services $2.2 $2.1 (6.2%) reven
Slide 10: Wireline Mass Markets
WIRELINE MASS MARKETS Consumer Revenue ($B) $3.4 $3.6 $3.6 • 4.3% consumer revenue growth Y/Y 9.5% $105.63 $107.15 ARPU $97.88 Y/Y Growth • FiOS now 69% of consumer revenue 1Q '12 4Q '12 1Q '13 – 11% Y/Y growth in triple play ■ Consumer ARPU customers – ARPU over $150 Copper Migrations (K) • FiOS In
Slide 11: Wireline Global Enterprise
WIRELINE GLOBAL ENTERPRISE Global Enterprise Revenue ($B) Y/Y Growth $3.9 $3.8 $3.8 (2.6%) • Strategic services revenue growth of 6.0% Y/Y • Revenue profile improving • Transformation continues – Hardware revenue down 22.0% 1Q '12 4Q '12 1Q '13 Y/Y ■ Strategic Services ■ Other Driving a better reven
Slide 12: Consolidated Cash Flow
CONSOLIDATED CASH FLOW Cash Flow Summary ($B) 1Q ’12 1Q ’13 • 1Q '13 cash flow of $7.5B, up 26.4% Y/Y Cash from operations $6.0 $7.5 Capital expenditures $3.6 $3.6 • Capital efficiency improved Y/Y – Capex/Revenue of 12.2% Free cash flow $2.4 $3.9 Total Debt $51.6 $52.9 • 1Q '13 free cash flow up $1
Slide 13: Consolidated Summary
CONSOLIDATED SUMMARY • Improve revenue mix through key strategic areas • Transform service delivery and increase operating efficiency • Invest in a disciplined manner for future growth • Sustain cash flow and earnings profile Sustain momentum in key strategic areas 13
Slide 14: Verizon
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