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Published: 2024-01-23 07:00:34 ET
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EX-99.1 2 a2023q4exhibit991.htm EX-99.1 Document

Exhibit 99.1
vzlogoa58.jpg

News Release

FOR IMMEDIATE RELEASE
Media contacts:
January 23, 2024Katie Magnotta
201-602-9235    
katie.magnotta@verizon.com
Eric Wilkens
201-572-9317
eric.wilkens@verizon.com


Verizon finishes 2023 with strong cash flow and
wireless customer growth
Posts double-digit gains across fixed wireless and
total wireless postpaid net additions

Full-year 2023 wireless service revenue was $76.7 billion, up 3.2 percent 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:
•Full-year 2023 earnings per share (EPS) of $2.75, compared with $5.06 in 2022; adjusted EPS1, excluding special items, of $4.71, compared with 2022 adjusted EPS1 of $5.18.
•Total operating revenue of $134.0 billion in full-year 2023, down 2.1 percent year over year.
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•Full-year 2023 cash flow from operations of $37.5 billion, an increase from $37.1 billion in 2022.
•Full-year 2023 free cash flow1 of $18.7 billion, an increase from $14.1 billion in 2022.

4Q 2023 highlights

Consolidated:
•Earnings per share was $(0.64), compared with earnings per share of $1.56 in fourth-quarter 2022; adjusted EPS1, excluding special items, of $1.08, compared with $1.19 in fourth-quarter 2022.
•Total operating revenue of $35.1 billion, a decrease of 0.3 percent from fourth-quarter 2022.
•Consolidated net loss for the fourth-quarter of $2.6 billion, compared to consolidated net income of $6.7 billion in fourth-quarter 2022, and consolidated adjusted EBITDA1 of $11.7 billion, in line with the 2022 result.

Total Broadband:
•Total broadband net additions of 413,000, represented the fifth consecutive quarter that Verizon reported more than 400,000 broadband net additions. Total broadband net additions included 375,000 fixed wireless net additions, bringing the subscriber base to over 3 million. In fourth-quarter 2023, more than 80 percent of Consumer fixed wireless gross additions were in Verizon's first 76 C-Band markets. Verizon is ahead of schedule to achieve its goal of 4 to 5 million subscribers by the end of 2025.
•55,000 Fios Internet net additions, down 4,000 from the fourth-quarter 2022.
•10.7 million total broadband subscribers as of the end of fourth-quarter 2023.

Total Wireless:
•Total wireless service revenue2 of $19.4 billion, a 3.2 percent increase year over year.
•Retail postpaid phone net additions of 449,000, and retail postpaid net additions of 1,460,000.
•Retail postpaid churn of 1.18 percent, and retail postpaid phone churn of 0.93 percent.

NEW YORK - 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
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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
•Total consolidated operating revenue in fourth-quarter 2023 of $35.1 billion, down 0.3 percent from fourth-quarter 2022. The decrease can be attributed to wireless equipment revenue, which was 2.0 percent lower than 2022, as total postpaid upgrades declined by 17.9 percent. Full-year 2023 consolidated operating revenue was $134.0 billion, down 2.1 percent year over year.
•Total wireless service revenue2 in fourth-quarter 2023 was $19.4 billion, up 3.2 percent year over year, driven primarily by pricing actions implemented in recent quarters, the larger allocation of our administrative and telco recovery fees from other revenue into wireless service revenue, higher premium price plan adoption and growth from fixed wireless access offerings.
•Full-year 2023 cash flow from operations was $37.5 billion, an increase from $37.1 billion in 2022. This marks a year over year increase of over $300 million, primarily due to working capital improvements.
•Full-year 2023 capital expenditures were $18.8 billion, down from $23.1 billion in 2022.
•The company ended 2023 with free cash flow1 of $18.7 billion, an increase from $14.1 billion in 2022.
•Consolidated net loss for the fourth-quarter 2023 was $2.6 billion, compared to consolidated net income of $6.7 billion in fourth-quarter 2022, and consolidated adjusted EBITDA1 was $11.7 billion, in line with the 2022 result.
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•Verizon's total unsecured debt as of the end of the year was $128.5 billion, a $2.1 billion increase sequentially, but $2.1 billion lower year over year. The company's net unsecured debt1 at the end of the year was $126.4 billion, a $4.2 billion increase from third-quarter 2023, but $1.6 billion lower year over year. At the end of fourth-quarter 2023, Verizon's ratio of unsecured debt to net income (LTM) was approximately 10.6 times and net unsecured debt to adjusted EBITDA ratio1 was approximately 2.6 times.
Verizon Consumer results
•Total Verizon Consumer revenue in fourth-quarter 2023 was $27.0 billion, an increase of 0.7 percent year over year as growth in service revenue was offset by declines in wireless equipment revenue and other revenue. For full-year 2023, total Consumer revenue was $101.6 billion, a decrease of 1.8 percent from full-year 2022.
•Wireless service revenue in fourth-quarter 2023 increased 3.2 percent year over year driven primarily by growth in Consumer wireless postpaid Average Revenue Per Account (ARPA) resulting from pricing actions implemented in recent quarters, the larger allocation of our administrative and telco recovery fees from other revenue into wireless service revenue, higher premium price plan adoption, and growth from fixed wireless access offerings. For full-year 2023, total Consumer wireless service revenue was $63.4 billion, an increase of 3.0 percent from full-year 2022.
•Consumer wireless retail postpaid churn was 1.08 percent in fourth-quarter 2023, and wireless retail postpaid phone churn was 0.88 percent.
•In fourth-quarter 2023, Consumer reported 318,000 wireless retail postpaid phone net additions, representing an improvement of 369,000 from third-quarter 2023 and 277,000 from fourth-quarter 2022. Consumer postpaid phone gross additions in the fourth-quarter 2023 increased 16.9 percent year over year, the best performance in four years.
•Verizon continues to see better performance in the markets where C-Band is deployed. In Verizon's first 76 C-Band markets, fourth-quarter growth in Consumer postpaid phone gross additions was more than 8 percentage points better than in non C-Band markets and postpaid phone churn remains lower than non C-Band markets.
•Consumer reported 289,000 wireless retail prepaid net losses in fourth-quarter 2023.
•Consumer reported 231,000 fixed wireless net additions and 53,000 Fios Internet net additions in fourth-quarter 2023. Consumer Fios revenue was $2.9 billion in fourth-quarter 2023, an increase of 1.0 percent year over year. Full-year 2023 Consumer Fios revenue was $11.6 billion, relatively flat year over year.
•In fourth-quarter 2023, Consumer operating income was $7.0 billion, an increase of 0.1 percent year over year, and segment operating income margin was 26.1 percent, a decrease from 26.3 percent in fourth-quarter 2022. Full-year 2023 Consumer operating income was $29.0 billion, an increase of 0.6 percent year over year, and segment operating income margin was 28.5 percent, an increase from 27.9 percent in full-year 2022. Segment EBITDA1 in fourth-quarter 2023 was $10.4 billion, an increase of 2.4 percent year over year. This improvement can be attributed to wireless service revenue growth and lower upgrade volumes. Segment EBITDA margin1 in fourth-quarter 2023
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was 38.5 percent, an increase from 37.9 percent in fourth-quarter 2022. Full-year 2023 segment EBITDA margin1 was 41.4 percent, an increase from 40.2 percent in 2022.
Verizon Business results
•Total Verizon Business revenue was $7.6 billion in fourth-quarter 2023, a decrease of 3.6 percent year over year as lower wireline revenue and lower wireless equipment revenue was partially offset by higher wireless service revenue. For full-year 2023, total Business revenue was $30.1 billion, a 3.1 percent decrease year over year.
•Business wireless service revenue in fourth-quarter 2023 was $3.4 billion, an increase of 3.0 percent year over year. This was driven by the larger allocation of our administration and telco recovery fees from other revenue into wireless service revenue, continued strong net additions and the benefit of pricing actions implemented earlier in the year. Full-year 2023 Business wireless service revenue was $13.4 billion, an increase of 4.1 percent compared to full-year 2022.
•Business reported 292,000 wireless retail postpaid net additions in fourth-quarter 2023, including 131,000 postpaid phone net additions. This was the 10th consecutive quarter that Business reported more than 125,000 postpaid phone net additions. Business continues to grow volumes and expand its relationships with customers strengthening its position as a wireless market share leader.
•Business wireless retail postpaid churn was 1.48 percent in fourth-quarter 2023, and wireless retail postpaid phone churn was 1.12 percent.
•Business reported 144,000 fixed wireless net additions in fourth-quarter 2023.
•In fourth-quarter 2023, Verizon Business operating income was $443 million, a decrease of 24.3 percent year over year, and segment operating income margin was 5.8 percent, a decrease from 7.4 percent in fourth-quarter 2022. Full-year 2023 segment operating income was $2.1 billion, a decrease of 21.5 percent year over year, and segment operating income margin was 6.9 percent, compared with 8.5 percent in full-year 2022. Segment EBITDA1 in fourth-quarter 2023 was $1.6 billion, a decrease of 4.5 percent year over year, driven by continued declines in high margin wireline revenues. Segment EBITDA margin1 in fourth-quarter 2023 was 21.1 percent, a decrease from 21.3 percent in fourth-quarter 2022. For the full year, segment EBITDA margin1 was 21.8 percent, a decrease from 22.3 percent in 2022.
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:
•Total wireless service revenue growth2 of 2.0 percent to 3.5 percent.
•Adjusted EBITDA growth1 of 1.0 percent to 3.0 percent.
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•Adjusted EPS1 of $4.50 to $4.70.
•Capital expenditures between $17.0 billion and $17.5 billion.
•Adjusted effective income tax rate1 in the range of 22.5 percent to 24.0 percent.
1 Non-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.
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Forward-looking statements
In 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.
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Verizon Communications Inc.


Condensed Consolidated Statements of Income
(dollars in millions, except per share amounts)
Unaudited3 Mos. Ended 12/31/233 Mos. Ended 12/31/22%
Change		12 Mos. Ended 12/31/2312 Mos. Ended 12/31/22%
Change
Operating Revenues
Service revenues and other$27,658 $27,626 0.1$109,652 $109,625 —
Wireless equipment revenues7,472 7,625 (2.0)24,322 27,210 (10.6)
Total Operating Revenues35,130 35,251 (0.3)133,974 136,835 (2.1)
Operating Expenses
Cost of services6,952 7,185 (3.2)28,100 28,637 (1.9)
Cost of wireless equipment8,230 8,577 (4.0)26,787 30,496 (12.2)
Selling, general and administrative expense8,991 8,046 11.732,745 30,136 8.7
Depreciation and amortization expense4,516 4,218 7.117,624 17,099 3.1
Verizon Business Group goodwill impairment5,841 — *5,841 — *
Total Operating Expenses34,530 28,026 23.2111,097 106,368 4.4
Operating Income600 7,225 (91.7)22,877 30,467 (24.9)
Equity in earnings (losses) of unconsolidated businesses(11)4 *(53)44 *
Other income (expense), net(807)2,687 *(313)1,373 *
Interest expense(1,599)(1,105)44.7(5,524)(3,613)52.9
Income (Loss) Before Provision For Income Taxes(1,817)8,811 *16,987 28,271 (39.9)
Provision for income taxes(756)(2,113)(64.2)(4,892)(6,523)(25.0)
Net Income (Loss)$(2,573)$6,698 *$12,095 $21,748 (44.4)
Net income attributable to noncontrolling interests$132 $121 9.1$481 $492 (2.2)
Net income (loss) attributable to Verizon(2,705)6,577 *11,614 21,256 (45.4)
Net Income (Loss)$(2,573)$6,698 *$12,095 $21,748 (44.4)
Basic Earnings Per Common Share
Net income (loss) attributable to Verizon$(0.64)$1.56 *$2.76 $5.06 (45.5)
Weighted-average shares outstanding (in millions)4,214 4,204 4,211 4,202 
Diluted Earnings Per Common Share (1)
Net income (loss) attributable to Verizon$(0.64)$1.56 *$2.75 $5.06 (45.7)
Weighted-average shares outstanding (in millions)4,214 4,207 4,215 4,204 
Footnotes:
(1)Where applicable, Diluted Earnings per Common Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represents the only potential dilution.
*Not meaningful

Verizon Communications Inc.


Condensed Consolidated Balance Sheets

(dollars in millions)
Unaudited12/31/2312/31/22$ Change
Assets
Current assets
Cash and cash equivalents$2,065 $2,605 $(540)
Accounts receivable26,102 25,332 770 
Less Allowance for credit losses1,017 826 191 
Accounts receivable, net25,085 24,506 579 
Inventories2,057 2,388 (331)
Prepaid expenses and other7,607 8,358 (751)
Total current assets36,814 37,857 (1,043)
Property, plant and equipment320,108 307,689 12,419 
Less Accumulated depreciation211,798 200,255 11,543 
Property, plant and equipment, net108,310 107,434 876 
Investments in unconsolidated businesses953 1,071 (118)
Wireless licenses155,667 149,796 5,871 
Goodwill22,843 28,671 (5,828)
Other intangible assets, net11,057 11,461 (404)
Operating lease right-of-use assets24,726 26,130 (1,404)
Other assets19,885 17,260 2,625 
Total assets$380,255 $379,680 $575 
Liabilities and Equity
Current liabilities
Debt maturing within one year$12,973 $9,963 $3,010 
Accounts payable and accrued liabilities23,453 23,977 (524)
Current operating lease liabilities4,266 4,134 132 
Other current liabilities12,531 12,097 434 
Total current liabilities53,223 50,171 3,052 
Long-term debt137,701 140,676 (2,975)
Employee benefit obligations13,189 12,974 215 
Deferred income taxes45,781 43,441 2,340 
Non-current operating lease liabilities20,002 21,558 (1,556)
Other liabilities16,560 18,397 (1,837)
Total long-term liabilities233,233 237,046 (3,813)
Equity
Common stock429 429 — 
Additional paid in capital13,631 13,420 211 
Retained earnings82,915 82,380 535 
Accumulated other comprehensive loss(1,380)(1,865)485 
Common stock in treasury, at cost(3,821)(4,013)192 
Deferred compensation – employee stock ownership plans and other656 793 (137)
Noncontrolling interests1,369 1,319 50 
Total equity93,799 92,463 1,336 
Total liabilities and equity$380,255 $379,680 $575 







Verizon Communications Inc.


Consolidated - Selected Financial and Operating Statistics

(dollars in millions, except per share amounts)
Unaudited12/31/2312/31/22
Total debt$150,674 $150,639 
Unsecured debt$128,491 $130,631 
Net unsecured debt(1)
$126,426 $128,026 
Unsecured debt / Consolidated Net Income (LTM)10.6 x6.0 x
Net unsecured debt / Consolidated Adjusted EBITDA(1)(2)
2.6 x2.7 x
Common shares outstanding end of period (in millions)4,204 4,200 
Total employees (‘000)105.4 117.1 
Quarterly cash dividends declared per common share$0.6650 $0.6525 
Footnotes: 
(1)Non-GAAP financial measure.
(2)Consolidated Adjusted EBITDA excludes the effects of non-operational items and special items.

Verizon Communications Inc.


Condensed Consolidated Statements of Cash Flows
(dollars in millions)
Unaudited12 Mos. Ended 12/31/2312 Mos. Ended 12/31/22$ Change
Cash Flows from Operating Activities
Net Income$12,095 $21,748 $(9,653)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense17,624 17,099 525 
Employee retirement benefits1,206 (2,046)3,252 
Deferred income taxes2,388 2,973 (585)
Provision for expected credit losses2,214 1,611 603 
Equity in losses (earnings) of unconsolidated businesses, net of dividends received84 (10)94 
Verizon Business Group goodwill impairment5,841 — 5,841 
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses
(267)(456)189 
Other, net(3,710)(3,778)68 
Net cash provided by operating activities37,475 37,141 334 
Cash Flows from Investing Activities
Capital expenditures (including capitalized software)(18,767)(23,087)4,320 
Cash received (paid) related to acquisitions of businesses, net of cash acquired(30)248 (278)
Acquisitions of wireless licenses(5,796)(3,653)(2,143)
Collateral receipts (payments) related to derivative contracts, net880 (2,265)3,145 
Proceeds from disposition of business— 33 (33)
Other, net281 62 219 
Net cash used in investing activities(23,432)(28,662)5,230 
Cash Flows from Financing Activities
Proceeds from long-term borrowings2,018 7,074 (5,056)
Proceeds from asset-backed long-term borrowings6,594 10,732 (4,138)
Net proceeds from (repayments of) short-term commercial paper(150)106 (256)
Repayments of long-term borrowings and finance lease obligations(6,181)(8,616)2,435 
Repayments of asset-backed long-term borrowings(4,443)(4,948)505 
Dividends paid(11,025)(10,805)(220)
Other, net(1,470)(2,072)602 
Net cash used in financing activities(14,657)(8,529)(6,128)
Decrease in cash, cash equivalents and restricted cash(614)(50)(564)
Cash, cash equivalents and restricted cash, beginning of period4,111 4,161 (50)
Cash, cash equivalents and restricted cash, end of period$3,497 $4,111 $(614)


Verizon Communications Inc.


Consumer - Selected Financial Results
(dollars in millions)
Unaudited3 Mos. Ended 12/31/233 Mos. Ended 12/31/22%
Change		12 Mos. Ended 12/31/2312 Mos. Ended 12/31/22%
Change
Operating Revenues
Service$18,927 $18,443 2.6$74,874 $73,139 2.4
Wireless equipment6,435 6,528 (1.4)20,645 23,168 (10.9)
Other1,592 1,799 (11.5)6,107 7,199 (15.2)
Total Operating Revenues26,954 26,770 0.7101,626 103,506 (1.8)
Operating Expenses
Cost of services4,362 4,450 (2.0)17,580 17,746 (0.9)
Cost of wireless equipment6,877 7,137 (3.6)21,827 25,134 (13.2)
Selling, general and administrative expense5,336 5,044 5.820,131 19,064 5.6
Depreciation and amortization expense3,344 3,111 7.513,077 12,716 2.8
Total Operating Expenses19,919 19,742 0.972,615 74,660 (2.7)
Operating Income$7,035 $7,028 0.1$29,011 $28,846 0.6
Operating Income Margin26.1 %26.3 %28.5 %27.9 %
Segment EBITDA(1)
$10,379 $10,139 2.4$42,088 $41,562 1.3
Segment EBITDA Margin(1)
38.5 %37.9 %41.4 %40.2 %
Footnotes:
(1) Non-GAAP financial measure.
The segment financial results and metrics above exclude the effects of special items (other than the effects of acquisition-related intangible asset amortization), which the Company’s chief operating decision maker does not consider in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.
 

Verizon Communications Inc.


Consumer - Selected Operating Statistics
Unaudited12/31/2312/31/22% Change
Connections (‘000):
Wireless retail postpaid93,850 91,856 2.2
Wireless retail prepaid21,122 22,664 (6.8)
Total wireless retail 114,972 114,520 0.4
Wireless retail postpaid phones74,720 74,857 (0.2)
Fios video 2,951 3,234 (8.8)
Fios internet6,976 6,740 3.5
Fixed wireless access (FWA) broadband1,866 884 *
Wireline broadband 7,190 7,016 2.5
Total broadband9,056 7,900 14.6
Unaudited3 Mos. Ended 12/31/233 Mos. Ended 12/31/22%
Change		12 Mos. Ended 12/31/2312 Mos. Ended 12/31/22%
Change
Gross Additions (‘000):
Wireless retail postpaid4,185 3,889 7.613,475 12,037 11.9
Net Additions Detail (‘000):
Wireless retail postpaid1,168 979 19.32,044 965 *
Wireless retail prepaid(289)(175)(65.1)(1,151)(445)*
Total wireless retail879 804 9.3893 520 71.7
Wireless retail postpaid phones318 41 *(132)(655)79.8
Fios video (62)(80)22.5(283)(339)16.5
Fios internet53 56 (5.4)236 199 18.6
FWA broadband231 262 (11.8)989 776 27.4
Wireline broadband 39 40 (2.5)174 128 35.9
Total broadband 270 302 (10.6)1,163 904 28.7
Churn Rate:
Wireless retail postpaid1.08 %1.06 %1.03 %1.01 %
Wireless retail postpaid phones0.88 %0.86 %0.83 %0.81 %
Wireless retail prepaid4.55 %4.90 %4.37 %4.09 %
Wireless retail1.73 %1.83 %1.67 %1.63 %
Revenue Statistics (in millions):
Wireless service revenue$16,034 $15,539 3.2$63,358 $61,509 3.0
Fios revenues$2,942 $2,914 1.0$11,614 $11,622 (0.1)

Verizon Communications Inc.


Consumer - Selected Operating Statistics (continued)
Unaudited3 Mos. Ended 12/31/233 Mos. Ended 12/31/22%
Change		12 Mos. Ended 12/31/2312 Mos. Ended 12/31/22%
Change
Other Wireless Statistics:
Wireless retail postpaid ARPA (1)
$134.10 $128.02 4.7$132.36 $125.97 5.1
Wireless retail postpaid upgrade rate
4.4 %5.6 %
Wireless retail postpaid accounts (‘000) (2)
32,990 33,183 (0.6)
Wireless retail postpaid connections per account (2)
2.84 2.77 2.5
Wireless retail prepaid ARPU (3)
$31.87 $31.53 1.1$31.46 $31.21 0.8
Footnotes:
(1) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
(2) Statistics presented as of end of period.
(3) Wireless retail prepaid ARPU - average service revenue per unit from retail prepaid connections.
Where applicable, the operating results reflect certain adjustments, including those related to the 3G network shutdowns, migration activity among different types of devices and plans, customer profile changes, and adjustments in connection with mergers, acquisitions and divestitures.
Certain intersegment transactions with corporate entities have not been eliminated.
* Not meaningful


Verizon Communications Inc.


Business - Selected Financial Results
(dollars in millions)
Unaudited3 Mos. Ended 12/31/233 Mos. Ended 12/31/22%
Change		12 Mos. Ended 12/31/2312 Mos. Ended 12/31/22%
Change
Operating Revenues
Enterprise and Public Sector$3,718 $3,908 (4.9)$15,076 $15,693 (3.9)
Business Markets and Other3,318 3,330 (0.4)12,715 12,772 (0.4)
Wholesale582 662 (12.1)2,331 2,607 (10.6)
Total Operating Revenues7,618 7,900 (3.6)30,122 31,072 (3.1)
Operating Expenses
Cost of services2,519 2,665 (5.5)10,180 10,483 (2.9)
Cost of wireless equipment1,353 1,440 (6.0)4,959 5,362 (7.5)
Selling, general and administrative expense2,139 2,112 1.38,429 8,284 1.8
Depreciation and amortization expense1,164 1,098 6.04,488 4,312 4.1
Total Operating Expenses7,175 7,315 (1.9)28,056 28,441 (1.4)
Operating Income$443 $585 (24.3)$2,066 $2,631 (21.5)
Operating Income Margin5.8 %7.4 %6.9 %8.5 %
Segment EBITDA(1)
$1,607 $1,683 (4.5)$6,554 $6,943 (5.6)
Segment EBITDA Margin(1)
21.1 %21.3 %21.8 %22.3 %
Footnotes:
(1) Non-GAAP financial measure.
Our Business segment’s wireless and wireline products and services are organized by the primary customer groups targeted by these offerings. During the first quarter of 2023, Verizon reorganized the customer groups within its Business segment. Previously, this segment was comprised of four customer groups: Small and Medium Business, Global Enterprise, Public Sector and Other, and Wholesale. Following the reorganization, there are now three customer groups: Enterprise and Public Sector, Business Markets and Other, and Wholesale. Enterprise and Public Sector combines the customers previously included in Global Enterprise and Public Sector and Other (excluding BlueJeans and Connect customers) as well as the commercial wireline customers previously included in Small and Medium Business. Business Markets and Other combines the customers previously included in Small and Medium Business (excluding commercial wireline customers), the BlueJeans customers previously included in Global Enterprise and Public Sector and Other, and the Connect customers previously included in Public Sector and Other. The Wholesale customer group remained unchanged. Prior period operating revenue results within the Business segment have been recast for these reorganized customer groups. There was no change to the composition of our reportable segments and total segment results, nor the determination of segment profit.
The segment financial results and metrics above exclude the effects of special items (other than the effects of acquisition-related intangible asset amortization), which the Company’s chief operating decision maker does not consider in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.

Verizon Communications Inc.


Business - Selected Operating Statistics
Unaudited12/31/2312/31/22%
Change
Connections (‘000):
Wireless retail postpaid29,779 28,733 3.6
Wireless retail postpaid phones18,170 17,782 2.2
Fios video 61 67 (9.0)
Fios internet 385 373 3.2
FWA broadband1,201 568 *
Wireline broadband 460 468 (1.7)
Total broadband1,661 1,036 60.3
Unaudited3 Mos. Ended 12/31/233 Mos. Ended 12/31/22%
Change		12 Mos. Ended 12/31/2312 Mos. Ended 12/31/22%
Change
Gross Additions (‘000):
Wireless retail postpaid1,605 1,644 (2.4)6,420 6,294 2.0
Net Additions Detail (‘000):
Wireless retail postpaid292 455 (35.8)1,242 1,640 (24.3)
Wireless retail postpaid phones131 176 (25.6)562 856 (34.3)
Fios video(2)(2)—(6)(4)(50.0)
Fios internet2 3 (33.3)12 17 (29.4)
FWA broadband144 117 23.1547 395 38.5
Wireline broadband(1)(3)66.7(8)(9)11.1
Total broadband 143 114 25.4539 386 39.6
Churn Rate:
Wireless retail postpaid1.48 %1.38 %1.48 %1.38 %
Wireless retail postpaid phones1.12 %1.06 %1.13 %1.07 %
Revenue Statistics (in millions):
Wireless service revenue$3,364 $3,265 3.0$13,372 $12,845 4.1
Fios revenues$312 $304 2.6$1,235 $1,201 2.8
Other Operating Statistics:
Wireless retail postpaid upgrade rate3.1 %3.6 %
Footnotes:
Where applicable, the operating results reflect certain adjustments, including those related to the 3G network shutdowns, migration activity among different types of devices and plans, customer profile changes, and adjustments in connection with mergers, acquisitions and divestitures.
Certain intersegment transactions with corporate entities have not been eliminated.
*Not meaningful


Verizon Communications Inc.


Supplemental Information - Total Wireless Operating and Financial Statistics

The following supplemental schedule contains certain financial and operating metrics which reflect an aggregation of our Consumer and Business segments’ wireless results.
Unaudited12/31/2312/31/22% Change
Connections (‘000)
Retail postpaid123,629 120,589 2.5
Retail prepaid
21,122 22,664 (6.8)
Total retail144,751 143,253 1.0
Retail postpaid phones92,890 92,639 0.3
Unaudited3 Mos. Ended 12/31/233 Mos. Ended 12/31/22%
Change		12 Mos. Ended 12/31/2312 Mos. Ended 12/31/22%
Change
Net Additions Detail (‘000)
Retail postpaid phones449 217 *430 201 *
Retail postpaid1,460 1,434 1.83,286 2,605 26.1
Retail prepaid(289)(175)(65.1)(1,151)(445)*
Total retail1,171 1,259 (7.0)2,135 2,160 (1.2)
Account Statistics
Retail postpaid accounts (‘000) (1)
34,958 35,002 (0.1)
Retail postpaid connections per account (1)
3.54 3.45 2.6
Retail postpaid ARPA (2)
$156.48 $149.95 4.4$154.84 $147.53 5.0
Retail prepaid ARPU (3)
$31.87 $31.53 1.1$31.46 $31.21 0.8
Churn Detail
Retail postpaid phone0.93 %0.89 %0.89 %0.86 %
Retail postpaid1.18 %1.14 %1.14 %1.10 %
Retail prepaid4.55 %4.90 %4.37 %4.09 %
Retail1.67 %1.74 %1.63 %1.58 %
Retail Postpaid Connection Statistics
Upgrade rate4.1 %5.1 %
Revenue Statistics (in millions) (4)
Wireless service$19,398 $18,804 3.2$76,730 $74,354 3.2
Wireless equipment7,472 7,625 (2.0)24,322 27,210 (10.6)
Wireless other1,575 1,851 (14.9)6,083 7,391 (17.7)
Total Wireless$28,445 $28,280 0.6$107,135 $108,955 (1.7)
Footnotes:
(1) Statistics presented as of end of period.
(2) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
(3) Wireless retail prepaid ARPU - average service revenue per unit from retail prepaid connections.
(4) Intersegment transactions between Consumer or Business segment with corporate entities have not been eliminated.
Where applicable, the operating results reflect certain adjustments, including those related to the 3G network shutdowns, migration activity among different types of devices and plans, customer profile changes, and adjustments in connection with mergers, acquisitions and divestitures.
*Not meaningful

Verizon Communications Inc.
Non-GAAP Reconciliations - Consolidated Verizon
Consolidated EBITDA and Consolidated Adjusted EBITDA
(dollars in millions)
Unaudited3 Mos. Ended 12/31/233 Mos. Ended 9/30/233 Mos. Ended 6/30/233 Mos. Ended 3/31/233 Mos. Ended 12/31/223 Mos. Ended 9/30/223 Mos. Ended 6/30/223 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 taxes756 1,308 1,346 1,482 2,113 1,496 1,542 1,372 
Interest expense1,599 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 businesses11 18 33 (9)(4)(2)(41)3 
Severance charges296 — 237 — 304 — — — 
Verizon Business Group goodwill impairment5,841 — — — — — — — 
Asset rationalization325 — 155 — — — — — 
Legal settlement100 — — — — — — — 
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.




Verizon Communications Inc.
Consolidated EBITDA and Consolidated Adjusted EBITDA (LTM)
Unaudited12 Mos. Ended 12/31/2312 Mos. Ended 9/30/2312 Mos. Ended 12/31/22
Consolidated Net Income$12,095 $21,366 $21,748 
  Add:
Provision for income taxes4,892 6,249 6,523 
Interest expense5,524 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 businesses53 38 (44)
Severance charges533 541 304 
Verizon Business Group goodwill impairment5,841 — — 
Asset rationalization480 155 — 
Legal settlement100 — — 
Business transformation costs176 176 — 
Non-strategic business shutdown158 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)
Unaudited12/31/239/30/2312/31/22
Debt maturing within one year$12,973 $12,950 $9,963 
Long-term debt137,701 134,441 140,676 
Total Debt150,674 147,391 150,639 
Less Secured debt22,183 20,951 20,008 
Unsecured Debt128,491 126,440 130,631 
Less Cash and cash equivalents2,065 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 Ratio10.6 x6.0 x
Consolidated Adjusted EBITDA (LTM)$47,789 $47,870 
Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio2.6 x2.7 x
Net Unsecured Debt - Quarter over quarter change$4,196 
Net Unsecured Debt - Year over year change$(1,600)


Verizon Communications Inc.
Adjusted Earnings per Common Share (Adjusted EPS)
(dollars in millions, except per share amounts)
Unaudited3 Mos. Ended 12/31/233 Mos. Ended 12/31/22
Pre-taxTaxAfter-Tax Pre-taxTaxAfter-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 impairment5,841 (52)5,789 1.37 — — — — 
Asset rationalization325 (80)245 0.06 — — — — 
Legal settlement100 (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)
Unaudited12 Mos. Ended 12/31/2312 Mos. Ended 12/31/22
Pre-taxTaxAfter-Tax Pre-taxTaxAfter-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 impairment5,841 (52)5,789 1.37 — — — — 
Asset rationalization480 (113)367 0.09 — — — — 
Legal settlement100 (25)75 0.02 — — — — 
Business transformation costs176 (45)131 0.03 — — — — 
Non-strategic business shutdown179 (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)
Unaudited12 Mos. Ended 12/31/2312 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 


Verizon Communications Inc.
Non-GAAP Reconciliations - Segments
Segment EBITDA and Segment EBITDA Margin
Consumer
(dollars in millions)
Unaudited3 Mos. Ended 12/31/233 Mos. Ended 12/31/2212 Mos. Ended 12/31/2312 Mos. Ended 12/31/22
Operating Income$7,035 $7,028 $29,011 $28,846 
Add Depreciation and amortization expense3,344 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 Margin26.1 %26.3 %28.5 %27.9 %
Segment EBITDA Margin38.5 %37.9 %41.4 %40.2 %
Business
(dollars in millions)
Unaudited3 Mos. Ended 12/31/233 Mos. Ended 12/31/2212 Mos. Ended 12/31/2312 Mos. Ended 12/31/22
Operating Income$443 $585 $2,066 $2,631 
Add Depreciation and amortization expense1,164 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 Margin5.8 %7.4 %6.9 %8.5 %
Segment EBITDA Margin21.1 %21.3 %21.8 %22.3 %