Verizon Projects Low Single-digit Percentage Growth In 2019 Revenues

(RTTNews) - Verizon Communications Inc. (VZ) announced, for 2019, the company expects: low single-digit percentage growth in full-year consolidated revenues on a GAAP reported basis; and adjusted EPS excluding the impact of the new lease accounting standard to be similar to 2018 adjusted EPS. Capital spending for 2019 is projected to be in the range of $17 billion to $18 billion, including the expanded commercial launch of 5G.

For fourth-quarter 2018, on an adjusted basis, EPS, excluding special items, was $1.12, compared with adjusted EPS of 86 cents in fourth-quarter 2017. Verizon's fourth-quarter 2018 EPS included a 9 cent impact due to the effects of accounting changes for revenue recognition.

Total consolidated operating revenues in fourth-quarter 2018 were $34.3 billion, up 1.0 percent from fourth-quarter 2017. Excluding the impact of the revenue recognition standard, fourth-quarter consolidated operating revenues were $34.1 billion, an increase of 0.5 percent year over year.

Verizon reported 1.2 million retail postpaid net additions in fourth-quarter 2018, consisting of 653,000 phone net additions, 11,000 tablet additions and 556,000 other connected devices, primarily wearables. Postpaid smartphone net additions were 873,000, compared with 647,000 in fourth-quarter 2017, a 34.9 percent increase. Total Wireless revenues were $24.4 billion, an increase of 2.7 percent year over year.

Total wireline revenues decreased 3.2 percent year over year in fourth-quarter, compared with 2017, to $7.4 billion. Total Fios revenues grew 2.5 percent year over year, excluding the impact of the revenue recognition standard.

Verizon said it is on track to deliver against the goal to achieve $10 billion in cumulative cash savings by 2021. The initiative includes zero-based budgeting and has yielded approximately $2.3 billion of cumulative cash savings by year-end 2018, of which a majority has been derived from capital efficiencies.