Verizon Communications Inc. forecasts higher revenues, margins in 2014

Nathan Andrada – Fourth Estate Cooperative Contributor

New York, NY, United States (4E) – Verizon Communications Inc., which recently took full control of Verizon Wireless, said on Monday that it predicts revenue and margins to increase in 2014 and revealed plans to form a new product development unit.

On Friday, the phone company completed a $130bn deal to purchase the 45 percent stake of Vodafone Group PLC in Verizon Wireless, which is expected to boost adjusted per-share earnings by 10 percent.

The company expects revenue to climb 4 percent this year, matching analysts’ estimates in a survey by Thomson Reuters. Verizon also said its wireless and wireline business segments are expected to see higher adjusted earnings before interest, taxes, depreciation and amortization margins.

Verizon also said it is creating a unit for product development and management aimed for faster product development across all the company’s platforms. The organization will be headed by former Verizon Wireless Chief Operating Officer Marni Walden.

Last week, Chief Executive Lowell McAdam sent an internal memo to employees saying that there will be changes within the company in the coming weeks.

In January, Verizon said it posted a profit in the fourth quarter driven by a rise of the number of subscribers for its wireless and FiOS services.

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