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Verizon: Analyzing the EBITDA Growth in Q1

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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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