Verizon Projects Higher Margins and Sustained Revenue Growth in 2014
Published on: 24th Feb 2014
By: Ian Mansfield
Following the completion of its deal to buy out Vodafone's stake in the company Verizon has outlined how it plans to move forward under a single owner.
Verizon expects full ownership of Verizon Wireless to be immediately accretive to earnings per share by about 10 percent, excluding non-operational adjustments. Verizon is also targeting 4 percent consolidated revenue growth in 2014, compared with 4.1 percent in 2013.
"Full ownership of our wireless asset is a major milestone for Verizon customers and shareholders," said Lowell McAdam, Verizon chairman and CEO. "We see a new phase of wireless growth and expanding opportunities as mobile networks become the platform for most of the world's digital traffic."
McAdam added: "This acquisition also enhances Verizon's ability to deliver integrated wireless and wireline products and solutions across all networks and platforms."
In 2014, Verizon expects to expand its adjusted consolidated EBITDA margin (non-GAAP, based on earnings before interest, taxes, depreciation and amortization). In 2013, Verizon posted consolidated operating income margin of 26.5 percent and adjusted consolidated EBITDA margin of 34.9 percent. Supporting this expansion, Verizon is targeting increases in EBITDA and EBITDA margin in both its Wireless and Wireline business segments.
The company expects to deliver continued strong cash flows to fund network investments, reduce debt and support it dividend policy for shareholders.
The new Verizon is also positioned to deliver integrated products and solutions to customers even faster. A recently formed company wide Product Development and Management organization will leverage all of Verizon's assets to develop products across the company's wireless, wireline, IP and cloud networks and platforms.
McAdam has named Marni Walden, formerly chief operating officer of Verizon Wireless, to lead this new organization.