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McAdam: VZW Ownership to Increase Revenue, Margins

By Andrew Berg | February 24, 2014

Verizon Monday said in an announcement that full ownsership of Verizon Wireless will serve to grow the company’s revenue and increase margins. 

In 2013, Verizon posted consolidated operating income margin of 26.5 percent and adjusted consolidated EBITDA margin of 34.9 percent. Supporting this expansion, Verizon is targeting increases in EBITDA and EBITDA margin in both its Wireless and Wireline business segments.

Verizon chairman and CEO, Lowell McAdam, in a statement called full ownership of Verizon Wireless wireless “a major milestone” for Verizon customers and shareholders. 

“We see a new phase of wireless growth and expanding opportunities as mobile networks become the platform for most of the world’s digital traffic,” McAdam said. 

The company expects to deliver continued strong cash flows to fund network investments, reduce debt and support the dividend policy of Verizon’s Board of Directors.

Verizon also says the puchase of Vodafone’s 45 percent stake in the Verizon Wireless joint venture will make it easier for the the company to deliver integrated products and solutions to customers even faster. Verizon recently formed a company-wide Product Development and Management organization that will leverage all of Verizon’s assets to develop more quickly develop products across the company’s wireless, wireline, IP and cloud networks and platforms.


Filed Under: Carriers

 

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