Verizon Communications Inc. reported a fourth-quarter FY21 sales decline of 1.8 percent year-on-year, to $34.1 billion, beating the consensus of $33.9 billion.
Adjusted EPS of $1.31 beat the consensus of $1.29.
Total Verizon Consumer revenue grew 7.4 percent Y/Y to $25.7 billion, driven by strong demand for its higher-tier premium mobility and broadband offerings. Consumer wireless service revenues rose 7.7 percent Y/Y to $14.6 billion, backed by ongoing step-ups to unlimited and premium unlimited plans and the contribution from TracFone.
Consumer wireless retail postpaid churn was 0.94 percent in Q4, and wireless retail postpaid phone churn was 0.77 percent. The 667,000 retail postpaid net additions include 336,000 phone net additions.
Total Verizon Business revenues were $7.8 billion in Q4, down 3.0 percent Y/Y.
Consumer segment EBITDA margin contracted 120 bps to 40.3 percent, and business segment EBITDA margin decreased 110 bps to 23.5 percent.
Adjusted EBITDA of $11.8 billion was flat Y/Y.
Verizon sees FY22 organic service and other revenue growth of ~3 percent.
Verizon sees FY22 reported wireless service revenue growth of 9 percent–10 percent.
Verizon sees FY22 adjusted EPS of $5.40–$5.55, above the consensus of $5.39.
By Anusuya Lahiri
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