Verizon Communications Inc. sees significant opportunity for future growth in video and the Internet of Things, enabled by the company’s consistent investment and demonstrated leadership in wireless and broadband networks.
Speaking at an investor conference here today, Chairman and CEO Lowell McAdam outlined the broader vision of the company following recent announcements about its commitment to 5G wireless deployment, the simplification of wireless customer pricing, and new wireless video and telematics products.
Although consumer demand is disrupting Verizon’s traditional business models, McAdam said the company is transforming around the capabilities of its high-performing networks. He said the goal is future growth based on delivering what customers want and need in the new digital world.
While well-positioned for the future, Verizon’s full-year 2016 earnings may plateau at 2015 levels as the company manages near-term impacts. These impacts include the commercial model change in wireless, year-over-year wireline financial comparisons following the expected first-half 2016 sale of operations to Frontier Communications Corp., and the ramp up of new business models for wireless video and IoT.
With expectations of continued strong cash flow, Verizon reiterates its capital allocation priorities of network investment, returning value to shareholders, maintaining a strong balance sheet, and returning to the company’s pre-Vodafone-transaction credit rating profile in the 2018-2019 timeframe.
A transcript of McAdam’s full remarks will be made available later today at http://www.verizon.com/about/investors/. The company will issue detailed third-quarter and year-to-date results on October 20.
Verizon Communications Inc. (NYSE, Nasdaq: VZ), headquartered in New York, employs a diverse workforce of 178,500 and generated more than $127 billion in 2014 revenues. Verizon Wireless operates America’s most reliable wireless network, with 109.5 million retail connections nationwide. Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and delivers integrated business solutions to customers worldwide.