Verizon Comments on Strong Customer Growth in Wireless

Verizon Comments on Strong Customer Growth in Wireless NEW YORK, Sept. 11, 2014 -- Verizon Communications Inc. (NYSE,Nasdaq: VZ) continues to see strong adoption of 4G smartphones and tablets inthird-quarter 2014, according to comments made today by Chairman and CEO LowellMcAdam at an investor conference here. McAdam said that retail postpaid net additions are more than 40 percent higherin the quarter-to-date than a year ago. In third-quarter 2013, Verizon reported927,000 retail postpaid net additions. The percentage of customers choosing theVerizon Edge early-upgrade plan so far in third-quarter 2014 is similar to therate in first-quarter 2014, which was approximately 12 percent of total phoneactivations. Verizon expects strong customer growth and low Edge adoption rate this quarterto date to put some pressure on the wireless segment EBITDA service margin(non-GAAP) on a sequential basis. In second-quarter 2014, Verizon reported awireless segment EBITDA service margin of 50.3 percent. In wireline, FiOS continues to drive consumer revenue growth, while enterpriseand wholesale growth remain under pressure. Although Verizon has made progressin expanding the wireline segment EBITDA margin (non-GAAP) in the first half of2014, the company expects some quarter-to-quarter fluctuations due toseasonality and the timing of non-recurring billings and costs. Verizonreiterated that the company remains on track to achieve full-year expansion ofthe wireline segment EBITDA margin. Verizon will report third-quarter 2014 results on Tuesday, Oct. 21. NOTE: See the accompanying schedules and www.verizon.com/about/investors/ forreconciliations to generally accepted accounting principles (GAAP) for non-GAAPfinancial measures cited in this document. Verizon Communications Inc. (NYSE, Nasdaq: VZ), headquartered in New York, is aglobal leader in delivering broadband and other wireless and wirelinecommunications services to consumer, business, government and wholesalecustomers. Verizon Wireless operates America's most reliable wireless network,with 104.6 million retail connections nationwide. Verizon also providesconverged communications, information and entertainment services over America'smost advanced fiber-optic network, and delivers integrated business solutionsto customers in more than 150 countries. A Dow 30 company with more than $120billion in 2013 revenues, Verizon employs a diverse workforce of 177,800. Formore information, visit www.verizon.com/news/. VERIZON'S ONLINE NEWS CENTER: Verizon news releases, executive speeches andbiographies, media contacts and other information are available at Verizon'sonline News Center at www.verizon.com/news/. The news releases are availablethrough an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/. Cautionary Statement Regarding Forward-Looking Statements In this communication we have made forward-looking statements. These statementsare based on our estimates and assumptions and are subject to risks anduncertainties. Forward-looking statements include the information concerningour possible or assumed future results of operations. Forward-lookingstatements also include those preceded or followed by the words "anticipates,""believes," "estimates," "hopes" or similar expressions. For those statements,we claim the protection of the safe harbor for forward-looking statementscontained in the Private Securities Litigation Reform Act of 1995. Thefollowing important factors, along with those discussed in our filings with theSecurities and Exchange Commission (the "SEC"), could affect future results andcould cause those results to differ materially from those expressed in theforward-looking statements: the ability to realize the expected benefits of ourtransaction with Vodafone in the timeframe expected or at all; an adversechange in the ratings afforded our debt securities by nationally accreditedratings organizations or adverse conditions in the credit markets affecting thecost, including interest rates, and/or availability of further financing;significantly increased levels of indebtedness as a result of the Vodafonetransaction; changes in tax laws or treaties, or in their interpretation;adverse conditions in the U.S. and international economies; material adversechanges in labor matters, including labor negotiations, and any resultingfinancial and/or operational impact; material changes in technology ortechnology substitution; disruption of our key suppliers' provisioning ofproducts or services; changes in the regulatory environment in which weoperate, including any increase in restrictions on our ability to operate ournetworks; breaches of network or information technology security, naturaldisasters, terrorist attacks or acts of war or significant litigation and anyresulting financial impact not covered by insurance; the effects of competitionin the markets in which we operate; changes in accounting assumptions thatregulatory agencies, including the SEC, may require or that result from changesin the accounting rules or their application, which could result in an impacton earnings; significant increases in benefit plan costs or lower investmentreturns on plan assets; and the inability to implement our business strategies. SOURCE Verizon Communications Inc. CONTACT: Ray McConville, 908-559-3504, [email protected], RobinNicol, 908-559-7515, [email protected]