Verizon Reports First Quarter Financials and Expansion of 5G Network

Apr 22, 2022 By MarketDepth

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Verizon Communications Inc. (NYSE: VZ) shares down about 5% on Friday after the communication company announced first-quarter results, including the expansion of its 5G Ultra Wideband network to nearly 113 million people around the country and elevated demands for its 5G mobility and nationwide broadband services. The company’s performance produced its best broadband result in over a decade, a surge in upgrades and increased wireless service revenue growth.

“Our operational performance in the first-quarter further positions Verizon for long-term growth and increases our competitive standing in mobility, nationwide broadband, the value market, and above the network business solutions and applications. The January launch of C-Band and expansion of our 5G Ultra Wideband network helped to amplify our fixed wireless momentum in both Consumer and Business, with quarterly additions 2.5 times that of our fourth-quarter performance, and drove momentum in wireless upgrades. We continue to accelerate our C-Band network build with our goal of reaching at least 175 million people by the end of the year and, with the recent early clearing spectrum announcement, we now have the ability to deploy more of this spectrum a full year sooner.”

Verizon Chairman and CEO Hans Vestberg

For first-quarter 2022, Verizon reported EPS of $1.09, compared with $1.27 in first-quarter 2021. On an adjusted basis1, EPS, excluding special items, was $1.35 in first-quarter 2022, compared with adjusted EPS1 of $1.36 in first-quarter 2021.

“At our Investor Day last month, we presented our strategy for investing in and growing the business to generate an incremental $14 billion of service and other revenue by 2025. The bottom-line performance of our results today shows the strength of our core business to deliver profitability, even during a period of significant investment. We expect that over 75 percent of our growth over the next four years will come from 5G mobility and nationwide broadband. In the first-quarter, we saw growth in our wireless sales, customer loyalty, and rapid expansion of our fixed wireless product, fortifying our confidence in our growth prospects.”

Verizon Chief Financial Officer Matt Ellis

Reported first-quarter earnings consisted of a pre-tax loss from special items of approximately $1.5 billion, including a pre-tax loss of approximately $1.2 billion from early debt redemption costs. Additionally, the impact to amortization of intangible assets related to TracFone and other acquisitions was $238 million.