Full-year 2023 wireless service revenue was $76.7 billion, up 3.2percent from full-year 2022
Fixed wireless net additions for full-year 2023 were up over 31 percent year over year reflecting the increased demand driven by the strength and reliability of the product
Total wireless postpaid net additions for full-year 2023 spike 26 percent compared to 2022
Total wireless postpaid phone net additions jump to 449,000 for fourth-quarter 2023 compared to 217,000 for fourth-quarter 2022
Consumer postpaid phone gross additions for fourth-quarter 2023 increase nearly 17 percent year over year, marking the best quarterly performance in four years
2023 highlights
Consolidated:
4Q 2023 highlights
Consolidated:
Total Broadband:
Total Wireless:
NEW YORK, Jan. 23, 2024 (GLOBE NEWSWIRE) -- Verizon Communications Inc. (NYSE, Nasdaq: VZ) reported strong fourth-quarter and full-year 2023 results highlighted by total wireless postpaid net additions, fixed wireless net additions and increased wireless service revenue.
"After delivering continuous improvement throughout 2023, we ended the year strong and continue to pursue the right balance of growth and profitability," said Verizon Chairman and CEO Hans Vestberg. "2023 was a year of change. We have the right assets and the best team in place and are well-positioned for growth in 2024."
For fourth-quarter 2023, Verizon reported earnings per share of $(0.64), compared with earnings per share of $1.56 in fourth-quarter 2022. On an adjusted basis1, excluding special items, EPS was $1.08 in fourth-quarter 2023, compared with adjusted EPS1 of $1.19 in fourth-quarter 2022.
Fourth-quarter 2023 financial results reflected a pre-tax loss from special items of approximately $7.8 billion. This includes the impacts of a previously disclosed goodwill impairment charge related to our Business reporting unit of $5.8 billion, a market-to-market adjustment for our pension and Other Post Employment Benefits (OPEB) liabilities of $992 million, asset rationalization charges of $325 million primarily relating to Business network assets that Verizon has ceased the use of, a severance charge of $296 million, the amortization of intangible assets related to Tracfone and other acquisitions of $227 million, and a $100 million charge relating to the settlement of a litigation matter regarding certain administrative fees.
For full-year 2023, Verizon reported $2.75 in EPS, compared with $5.06 for full-year 2022. On an adjusted basis1, excluding special items, 2023 EPS was $4.71, compared with $5.18 for 2022.
Consolidated results
Verizon Consumer results
Verizon Business results
Outlook and guidance
The company does not provide a reconciliation for any of the following adjusted (non-GAAP) forecasts because it cannot, without unreasonable effort, predict the special items that could arise, and the company is unable to address the probable significance of the unavailable information.
For 2024, Verizon expects the following:
1Non-GAAP financial measure. See the accompanying schedules and www.verizon.com/about/investors for reconciliations of non-GAAP financial measures cited in this document to most directly comparable financial measures under generally accepted accounting principles (GAAP).
2 Total wireless service revenue represents the sum of Consumer and Business segments.
Verizon Communications Inc. (NYSE, Nasdaq: VZ) was formed on June 30, 2000 and is one of the world’s leading providers of technology and communications services. Headquartered in New York City and with a presence around the world, Verizon generated revenues of $134.0 billion in 2023. The company offers data, video and voice services and solutions on its award-winning networks and platforms, delivering on customers’ demand for mobility, reliable network connectivity, security and control.
VERIZON’S ONLINE MEDIA CENTER: News releases, stories, media contacts and other resources are available at verizon.com/news. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.
Forward-looking statementsIn this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “forecasts,” “hopes,” “intends,” “plans,” “targets” or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the “SEC”), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of competition in the markets in which we operate, including the inability to successfully respond to competitive factors such as prices, promotional incentives and evolving consumer preferences; failure to take advantage of, or respond to competitors' use of, developments in technology and address changes in consumer demand; performance issues or delays in the deployment of our 5G network resulting in significant costs or a reduction in the anticipated benefits of the enhancement to our networks; the inability to implement our business strategy; adverse conditions in the U.S. and international economies, including inflation and changing interest rates in the markets in which we operate; cyber attacks impacting our networks or systems and any resulting financial or reputational impact; damage to our infrastructure or disruption of our operations from natural disasters, extreme weather conditions, acts of war, terrorist attacks or other hostile acts and any resulting financial or reputational impact; disruption of our key suppliers’ or vendors' provisioning of products or services, including as a result of geopolitical factors or the potential impacts of global climate change; material adverse changes in labor matters and any resulting financial or operational impact; damage to our reputation or brands; the impact of public health crises on our operations, our employees and the ways in which our customers use our networks and other products and services; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; allegations regarding the release of hazardous materials or pollutants into the environment from our, or our predecessors’, network assets and any related government investigations, regulatory developments, litigation, penalties and other liability, remediation and compliance costs, operational impacts or reputational damage; our high level of indebtedness; significant litigation and any resulting material expenses incurred in defending against lawsuits or paying awards or settlements; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or regulations, or in their interpretation, or challenges to our tax positions, resulting in additional tax expense or liabilities; and changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings.
Non-GAAP Reconciliations - Consolidated Verizon
Consolidated EBITDA and Consolidated Adjusted EBITDA
(dollars in millions) | |||||||||||||||||||||||||||||||
Unaudited | 3 Mos. Ended 12/31/23 | 3 Mos. Ended 9/30/23 | 3 Mos. Ended 6/30/23 | 3 Mos. Ended 3/31/23 | 3 Mos. Ended 12/31/22 | 3 Mos. Ended 9/30/22 | 3 Mos. Ended 6/30/22 | 3 Mos. Ended 3/31/22 | |||||||||||||||||||||||
Consolidated Net Income (Loss) | $ | (2,573 | ) | $ | 4,884 | $ | 4,766 | $ | 5,018 | $ | 6,698 | $ | 5,024 | $ | 5,315 | $ | 4,711 | ||||||||||||||
Add: | |||||||||||||||||||||||||||||||
Provision for income taxes | 756 | 1,308 | 1,346 | 1,482 | 2,113 | 1,496 | 1,542 | 1,372 | |||||||||||||||||||||||
Interest expense | 1,599 | 1,433 | 1,285 | 1,207 | 1,105 | 937 | 785 | 786 | |||||||||||||||||||||||
Depreciation and amortization expense (1) | 4,516 | 4,431 | 4,359 | 4,318 | 4,218 | 4,324 | 4,321 | 4,236 | |||||||||||||||||||||||
Consolidated EBITDA | $ | 4,298 | $ | 12,056 | $ | 11,756 | $ | 12,025 | $ | 14,134 | $ | 11,781 | $ | 11,963 | $ | 11,105 | |||||||||||||||
Add/(subtract): | |||||||||||||||||||||||||||||||
Other (income) expense, net (2) | $ | 807 | $ | (170 | ) | $ | (210 | ) | $ | (114 | ) | $ | (2,687 | ) | $ | 439 | $ | (49 | ) | $ | 924 | ||||||||||
Equity in losses (earnings) of unconsolidated businesses | 11 | 18 | 33 | (9 | ) | (4 | ) | (2 | ) | (41 | ) | 3 | |||||||||||||||||||
Severance charges | 296 | — | 237 | — | 304 | — | — | — | |||||||||||||||||||||||
Verizon Business Group goodwill impairment | 5,841 | — | — | — | — | — | — | — | |||||||||||||||||||||||
Asset rationalization | 325 | — | 155 | — | — | — | — | — | |||||||||||||||||||||||
Legal settlement | 100 | — | — | — | — | — | — | — | |||||||||||||||||||||||
Business transformation costs | — | 176 | — | — | — | — | — | — | |||||||||||||||||||||||
Non-strategic business shutdown | — | 158 | — | — | — | — | — | — | |||||||||||||||||||||||
7,380 | 182 | 215 | (123 | ) | (2,387 | ) | 437 | (90 | ) | 927 | |||||||||||||||||||||
Consolidated Adjusted EBITDA | $ | 11,678 | $ | 12,238 | $ | 11,971 | $ | 11,902 | $ | 11,747 | $ | 12,218 | $ | 11,873 | $ | 12,032 | |||||||||||||||
Consolidated Adjusted EBITDA - Year over year change % | (0.6)% | ||||||||||||||||||||||||||||||
Footnotes: | |||||||||||||||||||||||||||||||
(1) Includes Amortization of acquisition-related intangible assets and a portion of the Non-strategic business shutdown, where applicable. | |||||||||||||||||||||||||||||||
(2) Includes Pension and benefits remeasurement adjustments and Early debt redemption costs, where applicable. | |||||||||||||||||||||||||||||||
Consolidated EBITDA and Consolidated Adjusted EBITDA (LTM)
Unaudited | 12 Mos. Ended 12/31/23 | 12 Mos. Ended 9/30/23 | 12 Mos. Ended 12/31/22 | ||||||||
Consolidated Net Income | $ | 12,095 | $ | 21,366 | $ | 21,748 | |||||
Add: | |||||||||||
Provision for income taxes | 4,892 | 6,249 | 6,523 | ||||||||
Interest expense | 5,524 | 5,030 | 3,613 | ||||||||
Depreciation and amortization expense (1) | 17,624 | 17,326 | 17,099 | ||||||||
Consolidated EBITDA | $ | 40,135 | $ | 49,971 | $ | 48,983 | |||||
Add/(subtract): | |||||||||||
Other (income) expense, net (2) | $ | 313 | $ | (3,181 | ) | $ | (1,373 | ) | |||
Equity in losses (earnings) of unconsolidated businesses | 53 | 38 | (44 | ) | |||||||
Severance charges | 533 | 541 | 304 | ||||||||
Verizon Business Group goodwill impairment | 5,841 | — | — | ||||||||
Asset rationalization | 480 | 155 | — | ||||||||
Legal settlement | 100 | — | — | ||||||||
Business transformation costs | 176 | 176 | — | ||||||||
Non-strategic business shutdown | 158 | 158 | — | ||||||||
7,654 | (2,113 | ) | (1,113 | ) | |||||||
Consolidated Adjusted EBITDA | $ | 47,789 | $ | 47,858 | $ | 47,870 | |||||
Footnotes: | |||||||||||
(1) Includes Amortization of acquisition-related intangible assets and a portion of the Non-strategic business shutdown, where applicable. | |||||||||||
(2) Includes Pension and benefits remeasurement adjustments and Early debt redemption costs, where applicable. | |||||||||||
Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio | |||||||||||
(dollars in millions) | |||||||||||
Unaudited | 12/31/23 | 9/30/23 | 12/31/22 | ||||||||
Debt maturing within one year | $ | 12,973 | $ | 12,950 | $ | 9,963 | |||||
Long-term debt | 137,701 | 134,441 | 140,676 | ||||||||
Total Debt | 150,674 | 147,391 | 150,639 | ||||||||
Less Secured debt | 22,183 | 20,951 | 20,008 | ||||||||
Unsecured Debt | 128,491 | 126,440 | 130,631 | ||||||||
Less Cash and cash equivalents | 2,065 | 4,210 | 2,605 | ||||||||
Net Unsecured Debt | $ | 126,426 | $ | 122,230 | $ | 128,026 | |||||
Consolidated Net Income (LTM) | $ | 12,095 | $ | 21,748 | |||||||
Unsecured Debt to Consolidated Net Income Ratio | 10.6x | 6.0x | |||||||||
Consolidated Adjusted EBITDA (LTM) | $ | 47,789 | $ | 47,870 | |||||||
Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio | 2.6x | 2.7x | |||||||||
Net Unsecured Debt - Quarter over quarter change | $ | 4,196 | |||||||||
Net Unsecured Debt - Year over year change | $ | (1,600 | ) | ||||||||
Adjusted Earnings per Common Share (Adjusted EPS)
(dollars in millions, except per share amounts) | ||||||||||||||||||||||||
Unaudited | 3 Mos. Ended 12/31/23 | 3 Mos. Ended 12/31/22 | ||||||||||||||||||||||
Pre-tax | Tax | After-Tax | Pre-tax | Tax | After-Tax | |||||||||||||||||||
EPS | $ | (0.64 | ) | $ | 1.56 | |||||||||||||||||||
Amortization of acquisition-related intangible assets | $ | 227 | $ | (57 | ) | $ | 170 | 0.04 | $ | 115 | $ | (34 | ) | $ | 81 | 0.02 | ||||||||
Severance, pension and benefits charges (credits) | 1,288 | (319 | ) | 969 | 0.23 | (2,214 | ) | 552 | (1,662 | ) | (0.40 | ) | ||||||||||||
Verizon Business Group goodwill impairment | 5,841 | (52 | ) | 5,789 | 1.37 | — | — | — | — | |||||||||||||||
Asset rationalization | 325 | (80 | ) | 245 | 0.06 | — | — | — | — | |||||||||||||||
Legal settlement | 100 | (25 | ) | 75 | 0.02 | — | — | — | — | |||||||||||||||
$ | 7,781 | $ | (533 | ) | $ | 7,248 | $ | 1.72 | $ | (2,099 | ) | $ | 518 | $ | (1,581 | ) | $ | (0.38 | ) | |||||
Adjusted EPS | $ | 1.08 | $ | 1.19 | ||||||||||||||||||||
Footnotes: | ||||||||||||||||||||||||
Adjusted EPS may not add due to rounding. | ||||||||||||||||||||||||
(dollars in millions, except per share amounts) | |||||||||||||||||||||||
Unaudited | 12 Mos. Ended 12/31/23 | 12 Mos. Ended 12/31/22 | |||||||||||||||||||||
Pre-tax | Tax | After-Tax | Pre-tax | Tax | After-Tax | ||||||||||||||||||
EPS | $ | 2.75 | $ | 5.06 | |||||||||||||||||||
Amortization of acquisition-related intangible assets | $ | 865 | $ | (219 | ) | $ | 646 | 0.15 | $ | 826 | $ | (214 | ) | $ | 612 | 0.15 | |||||||
Severance, pension and benefits charges (credits) | 1,525 | (378 | ) | 1,147 | 0.27 | (1,371 | ) | 339 | (1,032 | ) | (0.25 | ) | |||||||||||
Verizon Business Group goodwill impairment | 5,841 | (52 | ) | 5,789 | 1.37 | — | — | — | — | ||||||||||||||
Asset rationalization | 480 | (113 | ) | 367 | 0.09 | — | — | — | — | ||||||||||||||
Legal settlement | 100 | (25 | ) | 75 | 0.02 | — | — | — | — | ||||||||||||||
Business transformation costs | 176 | (45 | ) | 131 | 0.03 | — | — | — | — | ||||||||||||||
Non-strategic business shutdown | 179 | (83 | ) | 96 | 0.02 | — | — | — | — | ||||||||||||||
Early debt redemption costs | — | — | — | — | 1,241 | (316 | ) | 925 | 0.22 | ||||||||||||||
$ | 9,166 | $ | (915 | ) | $ | 8,251 | $ | 1.96 | $ | 696 | $ | (191 | ) | $ | 505 | $ | 0.12 | ||||||
Adjusted EPS | $ | 4.71 | $ | 5.18 | |||||||||||||||||||
Footnotes: | |||||||||||||||||||||||
Adjusted EPS may not add due to rounding. | |||||||||||||||||||||||
Free Cash Flow | ||||||||
(dollars in millions) | ||||||||
Unaudited | 12 Mos. Ended 12/31/23 | 12 Mos. Ended 12/31/22 | ||||||
Net Cash Provided by Operating Activities | $ | 37,475 | $ | 37,141 | ||||
Capital expenditures (including capitalized software) | (18,767 | ) | (23,087 | ) | ||||
Free Cash Flow | $ | 18,708 | $ | 14,054 | ||||
Non-GAAP Reconciliations - Segments
Segment EBITDA and Segment EBITDA Margin | ||||||||||||||||
Consumer | ||||||||||||||||
(dollars in millions) | ||||||||||||||||
Unaudited | 3 Mos. Ended 12/31/23 | 3 Mos. Ended 12/31/22 | 12 Mos. Ended 12/31/23 | 12 Mos. Ended 12/31/22 | ||||||||||||
Operating Income | $ | 7,035 | $ | 7,028 | $ | 29,011 | $ | 28,846 | ||||||||
Add Depreciation and amortization expense | 3,344 | 3,111 | 13,077 | 12,716 | ||||||||||||
Segment EBITDA | $ | 10,379 | $ | 10,139 | $ | 42,088 | $ | 41,562 | ||||||||
Year over year change % | 2.4 | % | 1.3 | % | ||||||||||||
Total operating revenues | $ | 26,954 | $ | 26,770 | $ | 101,626 | $ | 103,506 | ||||||||
Operating Income Margin | 26.1 | % | 26.3 | % | 28.5 | % | 27.9 | % | ||||||||
Segment EBITDA Margin | 38.5 | % | 37.9 | % | 41.4 | % | 40.2 | % | ||||||||
Business | ||||||||||||||||
(dollars in millions) | ||||||||||||||||
Unaudited | 3 Mos. Ended 12/31/23 | 3 Mos. Ended 12/31/22 | 12 Mos. Ended 12/31/23 | 12 Mos. Ended 12/31/22 | ||||||||||||
Operating Income | $ | 443 | $ | 585 | $ | 2,066 | $ | 2,631 | ||||||||
Add Depreciation and amortization expense | 1,164 | 1,098 | 4,488 | 4,312 | ||||||||||||
Segment EBITDA | $ | 1,607 | $ | 1,683 | $ | 6,554 | $ | 6,943 | ||||||||
Year over year change % | (4.5) | % | (5.6) | % | ||||||||||||
Total operating revenues | $ | 7,618 | $ | 7,900 | $ | 30,122 | $ | 31,072 | ||||||||
Operating Income Margin | 5.8 | % | 7.4 | % | 6.9 | % | 8.5 | % | ||||||||
Segment EBITDA Margin | 21.1 | % | 21.3 | % | 21.8 | % | 22.3 | % | ||||||||
Media contacts:
Katie Magnotta201-602-9235 katie.magnotta@verizon.com
Eric Wilkens201-572-9317eric.wilkens@verizon.com
Source: Verizon Sourcing LLC