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$VZ Management Update: Fran Shammo, CFO, Verizon Communications, today announced that Scott Krohn will join Verizon on July 6 as Treasurer, succeeding Matt Ellis. Krohn was VP - Tax and Treasurer at 3M Company. “Scott’s extensive knowledge and experience with financial models and markets are tremendous assets for the company,” said Shammo.
Verizon added 1.2MM retail postpaid net additions (647K postpaid adds) in fourth quarter. Earnings came in at $4.56, which includes tax reforms related benefits. Excluding special items, adj. EPS was $0.86, same as 4Q16. $VZ plans to spend $17-17.8Bil in 2018, including the planned 5G launch. It also expects tax reforms to bring $3.5-4Bil in 2018.
Verizon announced today that it had acquired Niddel, which offers automated end-to-end threat hunting solution for enterprises. $VZ plans to integrate Niddel's services, which the firm believes would augment the existing offerings to its enterprise clients. The company didn't disclose the terms of the deal.
$TPR announced that Doreen Toben and Anne Gates have been appointed to its BoD, bringing the board count to 10. Toben served as EVP of $VZ from 2002 until her retirement in 2009, while Gates was President of MGA Entertainment, Inc., a privately-held maker of toy and entertainment products for children.
Verizon has unveiled its plans for the most-awaited 5G launch. The company plans to roll out its wireless broadband offerings in three to five markets in 2018, starting with Sacramento in 2H18. Initial focus will be on residential market where $VZ expects the market potential to be approx. 30MM households.
Pre-commercial trials for 5G network is ongoing and $VZ is expected to share its trial results in fourth quarter. It is on course to launch the fixed wireless 5G offering in 2018, but it doesn’t have any plans to launch mobile 5G services next year. Wireless video and IoT are expected to be new growth drivers for Verizon vs. wireline business.
$VZ’s newly christened digital division Oath is expected to save $1Bil through operating expense synergies by 2020. Oath’s 3Q revenues were $2Bil. Telco’s addressable market has expanded multifold to 1Bil global consumers. It also has targeted $10Bil in cash savings over the next four years. 78% of postpaid subs are now in unsubsidized plans.
$CHTR expects to launch its wireless service in 2018, using the MVNO agreement inked with $VZ. The company also has an operation agreement with Comcast. The wireless service would be bundled into the Spectrum branded offering, which is expected to improve sales numbers. Charter also expects its customer net adds to improve in 2H17.
$VZ's 3Q revenues came in at $31.7Bil, up 2.5% vs. last year. Thanks to the introduction of unlimited data plan in 2Q, the company added 603,000 wireless subscribers vs. 442,000 in 3Q16. $VZ also reported a $0.01 impact in 3Q due to hurricanes in Florida and Texas. Telecom giant now expects FY2017 revenue and adj. EPS to be consistent with FY2016.
Telecom giant $VZ has appointed Rima Qureshi as EVP and Chief Strategy Officer, effective November 6. Qureshi, a former CEO of Ericsson North America, will succeed Roy Chestnutt who has decided to step down by year-end. At Verizon, she will report to Chairman Lowell McAdam. Currently, Qureshi is member of the boards of $MA and Great West Lifeco.
$VZ today named Brady Connor as the head of IR. Connor currently serves as President and CIO of Verizon Investment Management Corp. (VIMCO) and head of Verizon Capital Group (VCG). He will succeed Mike Stefanski, who will retire before the end of the year. Connor brings more than two decades of experience in telecom domain to his new role in IR.
$VZ seems to be getting its arsenal ready for 5G launch. The company announced it's going to acquire $WOW's Chicago fiber network for $225MM. The deal is expected to be closed in early 1Q18. In addition, Verizon will invest $50MM in $WOW to help it complete the fiber network deployment in Chicago (to be completed in 2H18).
On the 5G deployment, $VZ is now conducting pre-commercial trials in 8 out of the 11 markets on the millimeter-wave spectrum. It has already enrolled first batch of customers on the network. Trial results are expected to be out by end of 2017. If all goes well, $VZ will be the first company in US to deploy 5G network in 2018.
$VZ added 64,000 postpaid subscribers in 2Q vs. a loss of 83,000 last year. This is the first time telecom giant has grown its user based in past six quarters. In wireline market, there is a tectonic shift towards fiber. Fiber based products clocked more than 3% growth. IoT, $VZ’s new focus area, revenue grew nearly 20% (Telematics: $220MM).
In June, $CHTR completed the rollout of Spectrum brand across the existing Time Warner Cable and Bright House residential markets. Charter also completed the switch to Spectrum brand for SMBs in July. Charter’s wireless venture continue to move forward as it plans to launch a wireless service as an MVNO on $VZ network in 2018 alongside Comcast.