Verizon: Analyzing the EBITDA Growth in Q1



Verizon’s EBITDA growth

In this part, we’ll discuss Verizon’s (VZ) expected consolidated adjusted EBITDA growth in the first quarter. Analysts expect Verizon’s consolidated adjusted EBITDA to increase ~3.2% YoY (year-over-year) to $12.2 billion in the first quarter.

In the fourth quarter of 2018, Verizon reported an adjusted EBITDA of $11.6 billion, which rose from $10.7 billion in the fourth quarter of 2017. The company is driving its profitability through cost and capital efficiencies across its operations. Verizon reported an adjusted EBITDA margin of 33.8% in the fourth quarter of 2018 and 36.2% in fiscal 2018. The company reported an adjusted EBITDA margin of 35.7% in fiscal 2017. Verizon has reported $2.3 billion of cumulative cash savings in fiscal 2018. The company is committed to obtaining $10 billion in cumulative cash savings from its operations by 2021.

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Peer comparison

In comparison, AT&T’s (T) combined domestic wireless EBITDA margin was 40.1% in the fourth quarter of 2018. T-Mobile (TMUS) and Sprint (S) posted consolidated adjusted EBITDA margins of 36.0% and 54.4%, respectively, in the same quarter.


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