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Verizon - a solid year, but limited progress expected
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Verizon's 2018 reported operating profit has fallen 18.8% to $22.3bn. However, that mostly reflects the $4.6bn impairment in Oath (the media arm including Yahoo and AOL).
Earnings per share (adjusted to exclude one off items such as the Oath impairment and the non-recurrence of last year's tax benefit) rose from $3.74 last year to $4.71.
Looking ahead, the group expects a slight increase in revenue next year, but no improvement in adjusted earnings per share.
The shares fell 3.1% in pre-market trading.
The quarterly dividend was $0.6025 per share, up from $0.59 last year.
Wireless total retail connections increased 1.5% to 118m over the year, which helped adjusted annual revenue rise 4.4% to $91.3bn. However, Q4 rose just 2.1% to $24.3bn as better service revenues were offset by weaker equipment sales.
Fourth quarter cash profits as measured by adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose 3.2% to $9.8bn.
2018 Wireline revenues fell 3% to $29.8bn, with Q4 down 3.2% to $7.4bn. That came as growth in Fios, the group's fibreoptic internet, TV and phone service, was offset by falling voice and internet connections.
Lower revenue and a small increase in operating costs sent Wirelines' Q4 underlying EBITDA down from $1.6bn to $1.2bn. After including depreciation and amortisation, that translates to a $273m operating loss in Q4, and the full year.
Net debt decreased by $4.7bn to $11.3bn during 2018 as operating cash flow improved. Capital expenditures fell slightly to $16.7bn.
The group reduced costs by $2.3bn during 2018, and says it is on track to deliver $10bn in savings by 2021.
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