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Verizon finishes 2023 with strong cash flow and wireless customer growth

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:

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).

2Total 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 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.

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 Magnotta
201-602-9235
katie.magnotta@verizon.com

Eric Wilkens
201-572-9317
eric.wilkens@verizon.com


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