Verizon Reports Double-Digit Earnings Growth and Increased Operating Cash Flow in First-Quarter 2012
Verizon Wireless Increases Service Revenues by 7.7 Percent, Expands Margins; Demand Remains Strong for FiOS and Strategic Services
NEW YORK, April 19, 2012 /PRNewswire/ --
1Q 2012 HIGHLIGHTS
Consolidated
- 59 cents in diluted earnings per share (EPS), compared with 51 cents per share in 1Q 2011 – a 15.7 percent increase.
- $6.0 billion in cash flow from operating activities, up $922 million compared with 1Q 2011.
- 4.6 percent year-over-year quarterly revenue growth.
Wireless
- 7.7 percent year-over-year increase in service revenues in 1Q 2012; 8.9 percent year-over-year increase in retail service revenues; highest growth rate in three years; data revenues up 21.1 percent; 28.6 percent operating income margin and 46.3 percent Segment EBITDA margin on service revenues (non-GAAP).
- 734,000 retail net customer additions, excluding acquisitions and adjustments, includes 501,000 retail postpaid net customer additions; continued low retail postpaid churn of 0.96 percent.
- 93.0 million total retail customers; 88.0 million total retail postpaid customers.
Wireline
- 193,000 FiOS Internet and 180,000 FiOS Video net additions, with increased sales penetration for both products; net increase of 104,000 broadband connections from 4Q 2011; FiOS Internet customers now total more than 5 million.
- 8.1 percent year-over-year increase in consumer ARPU; 63 percent of consumer revenues generated by FiOS.
- 11.6 percent increase in strategic services revenues, representing 51 percent of global enterprise revenues.
Verizon Communications Inc. (NYSE, Nasdaq: VZ) today reported double-digit percentage growth in year-over-year quarterly earnings results and increased cash flow in first-quarter 2012. Verizon Wireless posted another quarter of profitable revenue growth, while Verizon's Wireline segment posted another quarter of customer and revenue gains for FiOS fiber-optic services, and increased sales of strategic business services.
Verizon reported 59 cents in EPS in first-quarter 2012, an increase of 15.7 percent compared with first-quarter 2011 earnings of 51 cents per share. There were no adjustments in either period.
'On Track to Continue to Deliver Strong Results'
"Verizon delivered double-digit earnings growth and strong cash flow this quarter," said Lowell McAdam, Verizon chairman and CEO. "We built momentum coming out of 2011, and our results show that we continue to execute in the key growth areas of our business. Verizon Wireless produced both great growth and great margins, and we produced another strong quarter of FiOS growth. We are confident we will improve Wireline margins for the full year. Our repositioning of Verizon Enterprise Solutions has better aligned our strengths in high-growth markets, and we expect our enterprise business to contribute even more to overall Wireline revenue growth and profitability over time."
He added: "We remain confident in our ability to take advantage of the growth opportunities we see, and we are focused on driving operating efficiencies. We are on track with our plans and expect to continue to deliver strong results."
Strong Cash Flows, Increased Capital Efficiency
In first-quarter 2012, Verizon's total operating revenues were $28.2 billion on a consolidated basis, an increase of 4.6 percent compared with first-quarter 2011.
Consolidated operating income was $5.2 billion in first-quarter 2012, compared with $4.5 billion in first-quarter 2011. Consolidated EBITDA (non-GAAP, earnings before interest, taxes, depreciation and amortization) totaled $9.2 billion in first-quarter 2012, compared with $8.5 billion in first-quarter 2011.
Cash flow from operating activities totaled $6.0 billion in first-quarter 2012, an increase of $922 million compared with first-quarter 2011. Capital expenditures totaled $3.6 billion in first-quarter 2012, a decrease of $798 million compared with first-quarter 2011, as Verizon improved its capital-to-revenue efficiency. Free cash flow (non-GAAP, cash flow from operations less capex) was $2.4 billion in first-quarter 2012, compared with $672 million in first-quarter 2011. Verizon expects increasing free cash flow levels through 2012.
Verizon Wireless Delivers Strong Financial, Operational Results
In first-quarter 2012, Verizon Wireless delivered strong growth in revenues and retail customers; increased retail postpaid ARPU (average monthly service revenue per user) and smartphone penetration; and delivered a strong EBITDA margin.
Wireless Financial Highlights
- Service revenues in the quarter totaled $15.4 billion, up 7.7 percent year over year. Retail service revenues grew 8.9 percent year over year, to $14.9 billion, an increase of 110 basis points over fourth-quarter 2011 and the highest growth rate in three years.
- Data revenues were $6.6 billion, up $1.1 billion – or 21.1 percent – year over year, and represent 42.9 percent of all service revenues. Total revenues were $18.3 billion, up 8.2 percent year over year.
- Retail postpaid ARPU grew 3.6 percent over first-quarter 2011, to $55.43. Retail postpaid data ARPU increased to $23.80, up 16.0 percent year over year. Retail service ARPU grew 3.4 percent, to $53.66.
- Wireless operating income margin was 28.6 percent. Segment EBITDA margin on service revenues (non-GAAP) was 46.3 percent.
Wireless Operational Highlights
- Verizon Wireless added 734,000 retail net customers in the first quarter, including 501,000 retail postpaid net customers. These additions exclude acquisitions and adjustments.
- At the end of the first quarter, the company had 93.0 million retail customers, a 5.2 percent increase year over year, including 88.0 million retail postpaid customers.
- At the end of the first quarter, nearly 47 percent of Verizon Wireless' retail postpaid customer phone base were smartphones, up from 43.5 percent at the end of fourth-quarter 2011.
- Retail postpaid churn was 0.96 percent, an improvement of 5 basis points year over year. Total retail churn was 1.24 percent, an improvement of 9 basis points year over year.
- Verizon Wireless continued to roll out its 4G LTE mobile broadband network, the largest such network in the U.S. As of today, Verizon Wireless 4G LTE service is available to more than 200 million people in 230 markets across the U.S. – more than two-thirds of the population.
- Verizon Wireless introduced five new 4G LTE devices in the first quarter 2012: the Droid 4 and Droid Razr Maxx by Motorola, the Spectrum and Lucid by LG, and the Samsung Galaxy Tab 7.7. In addition, the Apple iPad with Wi-Fi + 4G became available from Verizon Wireless in mid-March.
FiOS Continues to Add Customers, Increase Sales Penetration
In first-quarter 2012 in the Wireline segment, continued strong demand for FiOS services led to revenue growth generated by U.S. consumer wireline customers and continued gains in FiOS sales penetration. Globally, continued strong sales of strategic services helped mitigate lower revenues resulting from Verizon's targeted efforts to eliminate products that do not meet the company's profitability requirements, and continued secular pressures in wholesale.
Wireline Financial Highlights
- First-quarter 2012 operating revenues were $9.9 billion, a decline of 2.0 percent compared with first-quarter 2011. Wireline operating income margin was 1.6 percent, compared with 2.8 percent in first-quarter 2011, and Segment EBITDA margin (non-GAAP) was 22.6 percent, compared with 23.6 percent in first-quarter 2011.
- Consumer revenues grew 1.7 percent compared with first-quarter 2011. Consumer ARPU for wireline services was $97.88 in first-quarter 2012, up 8.1 percent compared with first-quarter 2011. ARPU for FiOS customers continued to total more than $148 in first-quarter 2012. FiOS services to consumer retail customers represented 63 percent of consumer wireline revenues in first-quarter 2012.
- Global enterprise revenues totaled $3.9 billion in the quarter, up 0.9 percent compared with first-quarter 2011. Sales of strategic services – including Terremark cloud services, security and IT solutions, and strategic networking – increased 11.6 percent compared with first-quarter 2011 and represented 51 percent of global enterprise revenues in first-quarter 2012.
Wireline Operational Highlights
- Verizon added 193,000 net new FiOS Internet connections and 180,000 net new FiOS Video connections in first-quarter 2012. Verizon had a total of 5.0 million FiOS Internet and 4.4 million FiOS Video connections at the end of the quarter.
- FiOS penetration (subscribers as a percentage of potential subscribers) continued to increase. FiOS Internet penetration was 36.4 percent at the end of first-quarter 2012, compared with 33.1 percent at the end of first-quarter 2011. In the same periods, FiOS Video penetration was 32.3 percent, compared with 29.1 percent.
- Broadband connections totaled 8.8 million at the end of first-quarter 2012, a 3.3 percent year-over-year increase. The net increase of 104,000 broadband connections from fourth-quarter 2011 was the highest quarterly net-add total since second-quarter 2009.
- Verizon continued to expand its next-generation 100 gigabit-per-second network, enabling several more network routes in the U.S. and two additional routes in Europe.
- The company also took advantage of the fully activated Europe India Gateway submarine cable system. The 15,000 kilometer high-bandwidth optical system, with a design capacity of 3.84 terabits per second, provides much needed diversity for future Internet, e-commerce, data, video and voice services from the United Kingdom to India.
Strategic Agreements Unveiled for Global Sales
Verizon Enterprise Solutions, a sales and marketing organization that harnesses all of Verizon's cloud, mobility and technology solutions for business and government customers globally, unveiled strategic agreements in first-quarter 2012 to develop offerings in mobile health, electronic health records management and secure e-prescribing.
The organization also announced a digital-signage solution for retail customers, powered by Verizon's 4G LTE network and infrastructure; unveiled new telematics solutions for the automotive and transportation industries; and rolled out a cross-platform open video communications capability.
NOTE: See the accompanying schedules and www.verizon.com/investor for reconciliations to generally accepted accounting principles (GAAP) for non-GAAP financial measures cited in this document.
Verizon Communications Inc. (NYSE, Nasdaq: VZ), headquartered in New York, is a global leader in delivering broadband and other wireless and wireline communications services to consumer, business, government and wholesale customers. Verizon Wireless operates America's most reliable wireless network, with 93 million retail customers nationwide. Verizon also provides converged communications, information and entertainment services over America's most advanced fiber-optic network, and delivers integrated business solutions to customers in more than 150 countries, including all of the Fortune 500. A Dow 30 company with $111 billion in 2011 revenues, Verizon employs a diverse workforce of nearly 192,000. For more information, visit www.verizon.com.
VERIZON'S ONLINE NEWS CENTER: Verizon news releases, executive speeches and biographies, media contacts, high-quality video and images, and other information are available at Verizon's News Center on the World Wide Web at www.verizon.com/news. To receive news releases by email, visit the News Center and register for customized automatic delivery of Verizon news releases.
NOTE: This presentation contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The following important factors could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: adverse conditions in the U.S. and international economies; competition in our markets; material adverse changes in labor matters, including labor negotiations or additional organizing activity, and any resulting financial and/or operational impact; material changes in available technology; any disruption of our key suppliers' provisioning of products or services; significant increases in benefit plan costs or lower investment returns on plan assets; breaches of network or information technology security, natural disasters or terrorist attacks or existing or future litigation and any resulting financial impact not covered by insurance; technology substitution; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets impacting the cost, including interest rates, and/or availability of financing; any changes in the regulatory environments in which we operate, including any increase in restrictions on our ability to operate our networks; the timing, scope and financial impact of our deployment of broadband technology; changes in our accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; our ability to complete acquisitions and dispositions; and the inability to implement our business strategies.
| Verizon Communications Inc. |
|||||
| Condensed Consolidated Statements of Income |
|||||
| (dollars in millions, except per share amounts) |
|||||
| 3 Mos. Ended |
3 Mos. Ended |
||||
| Unaudited |
3/31/12 |
3/31/11 |
% Change |
||
| Operating Revenues |
$ 28,242 |
$ 26,990 |
4.6 |
||
| Operating Expenses |
|||||
| Cost of services and sales |
11,319 |
11,229 |
0.8 |
||
| Selling, general and administrative expense |
7,700 |
7,284 |
5.7 |
||
| Depreciation and amortization expense |
4,028 |
4,024 |
0.1 |
||
| Total Operating Expenses |
23,047 |
22,537 |
2.3 |
||
| Operating Income |
5,195 |
4,453 |
16.7 |
||
| Equity in earnings of unconsolidated businesses |
103 |
101 |
2.0 |
||
| Other income and (expense), net |
19 |
36 |
(47.2) |
||
| Interest expense |
(685) |
(709) |
(3.4) |
||
| Income Before Provisionfor Income Taxes |
4,632 |
3,881 |
19.4 |
||
| Provisionfor income taxes |
(726) |
(617) |
17.7 |
||
| Net Income |
$ 3,906 |
$ 3,264 |
19.7 |
||
| Net income attributable to noncontrolling interest |
$ 2,220 |
$ 1,825 |
21.6 |
||
| Net incomeattributable to Verizon |
1,686 |
1,439 |
17.2 |
||
| Net Income |
$ 3,906 |
$ 3,264 |
19.7 |
||
| Basic Earnings per Common Share |
|||||
| Net income attributable to Verizon |
$ .59 |
$ .51 |
15.7 |
||
| Weighted average number of common shares (in millions) |
2,842 |
2,830 |
|||
| Diluted Earningsper Common Share (1) |
|||||
| Net income attributable to Verizon |
$ .59 |
$ .51 |
15.7 |
||
| Weighted average number of common |
|||||
| shares-assuming dilution (in millions) |
2,849 |
2,834 |
|||
| Footnotes: |
|||||
| (1) |
Diluted Earnings per Common Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represents the only potential dilution. |
||||
| Certain reclassifications have been made, where appropriate, to reflect comparable operating results. |
|||||
| Verizon Communications Inc. |
||||||
| Condensed Consolidated Balance Sheets |
||||||
| (dollars in millions) |
||||||
| Unaudited |
3/31/12 |
12/31/11 |
$ Change |
|||
| Assets |
||||||
| Current assets |
||||||
| Cash and cash equivalents |
$ 5,909 |
$ 13,362 |
$ (7,453) |
|||
| Short-term investments |
623 |
592 |
31 |
|||
| Accounts receivable, net |
11,234 |
11,776 |
(542) |
|||
| Inventories |
1,063 |
940 |
123 |
|||
| Prepaid expenses and other |
4,683 |
4,269 |
414 |
|||
| Total current assets |
23,512 |
30,939 |
(7,427) |
|||
| Plant, property and equipment |
218,250 |
215,626 |
2,624 |
|||
| Less accumulated depreciation |
130,064 |
127,192 |
2,872 |
|||
| 88,186 |
88,434 |
(248) |
||||
| Investments in unconsolidated businesses |
3,566 |
3,448 |
118 |
|||
| Wireless licenses |
73,294 |
73,250 |
44 |
|||
| Goodwill |
23,465 |
23,357 |
108 |
|||
| Other intangible assets, net |
5,744 |
5,878 |
(134) |
|||
| Other assets |
5,154 |
5,155 |
(1) |
|||
| Total Assets |
$ 222,921 |
$ 230,461 |
$ (7,540) |
|||
| Liabilities and Equity |
||||||
| Current liabilities |
||||||
| Debt maturing within one year |
$ 3,121 |
$ 4,849 |
$ (1,728) |
|||
| Accounts payable and accrued liabilities |
13,231 |
14,689 |
(1,458) |
|||
| Other |
6,561 |
11,223 |
(4,662) |
|||
| Total current liabilities |
22,913 |
30,761 |
(7,848) |
|||
| Long-term debt |
48,476 |
50,303 |
(1,827) |
|||
| Employee benefit obligations |
32,164 |
32,957 |
(793) |
|||
| Deferred income taxes |
25,610 |
25,060 |
550 |
|||
| Other liabilities |
5,337 |
5,472 |
(135) |
|||
| Equity |
||||||
| Common stock |
297 |
297 |
- |
|||
| Contributed capital |
37,926 |
37,919 |
7 |
|||
| Reinvested earnings |
1,444 |
1,179 |
265 |
|||
| Accumulated other comprehensive income |
1,398 |
1,269 |
129 |
|||
| Common stock in treasury, at cost |
(4,735) |
(5,002) |
267 |
|||
| Deferred compensation - employee |
||||||
| stock ownership plans and other |
341 |
308 |
33 |
|||
| Noncontrolling interest |
51,750 |
49,938 |
1,812 |
|||
| Total equity |
88,421 |
85,908 |
2,513 |
|||
| Total Liabilities and Equity |
$ 222,921 |
$ 230,461 |
$ (7,540) |
|||
| Verizon - Selected Financial and Operating Statistics |
|||||
| Unaudited |
3/31/12 |
12/31/11 |
|||
| Total debt (in millions) |
$ 51,597 |
$ 55,152 |
|||
| Net debt (in millions) |
$ 45,688 |
$ 41,790 |
|||
| Net debt / Adjusted EBITDA (1) |
1.3x |
1.2x |
|||
| Common shares outstanding end of period (in millions) |
2,841 |
2,834 |
|||
| Total employees |
191,800 |
193,900 |
|||
| Quarterly cash dividends declared per common share |
$ 0.50 |
$ 0.50 |
|||
| Footnotes: |
|||||
| (1) Adjusted EBITDA excludes the effects of non-operational items. |
|||||
| The unaudited condensed consolidated balance sheets are based on preliminary information. |
|||||
| Verizon Communications Inc. |
||||||
| Condensed Consolidated Statements of Cash Flows |
||||||
| (dollars in millions) |
||||||
| 3 Mos. Ended |
3 Mos. Ended |
|||||
| Unaudited |
3/31/12 |
3/31/11 |
$ Change |
|||
| Cash Flows From Operating Activities |
||||||
| Net Income |
$ 3,906 |
$ 3,264 |
$ 642 |
|||
| Adjustments to reconcile net income to net cash provided by |
||||||
| operating activities: |
||||||
| Depreciation and amortization expense |
4,028 |
4,024 |
4 |
|||
| Employee retirement benefits |
375 |
373 |
2 |
|||
| Deferred income taxes |
656 |
790 |
(134) |
|||
| Provision for uncollectible accounts |
278 |
270 |
8 |
|||
| Equity in earnings of unconsolidated businesses, net of dividends received |
(89) |
(86) |
(3) |
|||
| Changes in current assets and liabilities, net of |
||||||
| effects from acquisition/disposition of businesses |
(1,580) |
(2,070) |
490 |
|||
| Other, net |
(1,617) |
(1,530) |
(87) |
|||
| Net cash provided by operating activities |
5,957 |
5,035 |
922 |
|||
| Cash Flows From Investing Activities |
||||||
| Capital expenditures (including capitalized software) |
(3,565) |
(4,363) |
798 |
|||
| Acquisitions of licenses, investments and businesses, net of cash acquired |
(165) |
(104) |
(61) |
|||
| Net change in short-term investments |
16 |
24 |
(8) |
|||
| Other, net |
41 |
68 |
(27) |
|||
| Net cash used in investing activities |
(3,673) |
(4,375) |
702 |
|||
| Cash Flows From Financing Activities |
||||||
| Proceeds from long-term borrowings |
- |
6,440 |
(6,440) |
|||
| Repayments of long-term borrowings and capital |
(1,828) |
(552) |
(1,276) |
|||
| Increase (decrease) in short-term obligations, excluding |
(1,734) |
2,384 |
(4,118) |
|||
| Dividends paid |
(1,291) |
(1,379) |
88 |
|||
| Proceeds from sale of common stock |
69 |
70 |
(1) |
|||
| Special distribution to noncontrolling interest |
(4,500) |
- |
(4,500) |
|||
| Other, net |
(453) |
(284) |
(169) |
|||
| Net cash provided by (used in) financing activities |
(9,737) |
6,679 |
(16,416) |
|||
| Increase (decrease) in cash and cash equivalents |
(7,453) |
7,339 |
(14,792) |
|||
| Cash and cash equivalents, beginning of period |
13,362 |
6,668 |
6,694 |
|||
| Cash and cash equivalents, end of period |
$ 5,909 |
$ 14,007 |
$ (8,098) |
|||
| Verizon Communications Inc. |
|||||
| Verizon Wireless – Selected Financial Results |
|||||
| (dollars in millions) |
|||||
| 3 Mos. Ended |
3 Mos. Ended |
||||
| Unaudited |
3/31/12 |
3/31/11 |
% Change |
||
| Operating Revenues |
|||||
| Retail service |
$ 14,886 |
$ 13,674 |
8.9 |
||
| Other service |
524 |
637 |
(17.7) |
||
| Service |
15,410 |
14,311 |
7.7 |
||
| Equipment |
1,838 |
1,689 |
8.8 |
||
| Other |
1,025 |
881 |
16.3 |
||
| Total Operating Revenues |
18,273 |
16,881 |
8.2 |
||
| Operating Expenses |
|||||
| Cost of services and sales |
5,910 |
5,880 |
0.5 |
||
| Selling, general and administrative expense |
5,228 |
4,751 |
10.0 |
||
| Depreciation and amortization expense |
1,918 |
1,899 |
1.0 |
||
| Total Operating Expenses |
13,056 |
12,530 |
4.2 |
||
| Operating Income |
$ 5,217 |
$ 4,351 |
19.9 |
||
| Operating Income Margin |
28.6% |
25.8% |
|||
| Segment EBITDA |
$ 7,135 |
$ 6,250 |
14.2 |
||
| Segment EBITDA Service Margin |
46.3% |
43.7% |
|||
| Footnotes: |
|||||
| The segment financial results and metrics above are adjusted to exclude the effects of non-operational items, as the Company's chief operating decision maker excludes these items in assessing business unit performance. |
|||||
| Intersegment transactions have not been eliminated. |
|||||
| Certain reclassifications have been made, where appropriate, to reflect comparable operating results. |
|||||
| Verizon Communications Inc. |
|||||
| Verizon Wireless – Selected Operating Statistics |
|||||
| Unaudited |
3/31/12 |
3/31/11 |
% Change |
||
| Connections ('000) |
|||||
| Retail postpaid |
87,963 |
84,031 |
4.7 |
||
| Retail prepaid |
5,025 |
4,383 |
14.6 |
||
| Retail |
92,988 |
88,414 |
5.2 |
||
| 3 Mos. Ended |
3 Mos. Ended |
||||
| Unaudited |
3/31/12 |
3/31/11 |
% Change |
||
| Net Add Detail (1) ('000) |
|||||
| Retail postpaid |
501 |
906 |
(44.7) |
||
| Retail prepaid |
233 |
(27) |
* |
||
| Retail |
734 |
879 |
(16.5) |
||
| Churn Detail |
|||||
| Retail postpaid |
0.96% |
1.01% |
|||
| Retail |
1.24% |
1.33% |
|||
| Revenue and ARPU Statistics |
|||||
| Total data revenues (in millions) |
$ 6,608 |
$ 5,458 |
21.1 |
||
| Retail postpaid data ARPU |
$ 23.80 |
$ 20.51 |
16.0 |
||
| Total data as a % of service revenues |
42.9% |
38.1% |
|||
| Retail service ARPU |
$ 53.66 |
$ 51.88 |
3.4 |
||
| Retail postpaid ARPU |
$ 55.43 |
$ 53.52 |
3.6 |
||
| Retail Postpaid Connection Statistics |
|||||
| Total Smartphone postpaid % of phones sold |
72.4% |
60.0% |
|||
| Total Smartphone postpaid phone base |
46.8% |
32.2% |
|||
| Total Internet postpaid base |
8.3% |
7.3% |
|||
| Other Operating Statistics |
|||||
| Capital expenditures (in millions) |
$ 1,885 |
$ 2,735 |
(31.1) |
||
| Footnotes: |
|||||
| (1) Connection net additions exclude acquisitions and adjustments. |
|||||
| The segment financial results and metrics above are adjusted to exclude the effects of non-operational items, as the Company's chief operating decision maker excludes these items in assessing business unit performance. |
|||||
| Intersegment transactions have not been eliminated. |
|||||
| Certain reclassifications have been made, where appropriate, to reflect comparable operating results. |
|||||
| * Not meaningful |
|||||
| Verizon Communications Inc. |
|||||
| Wireline – Selected Financial Results |
|||||
| (dollars in millions) |
|||||
| 3 Mos. Ended |
3 Mos. Ended |
||||
| Unaudited |
3/31/12 |
3/31/11 |
% Change |
||
| Operating Revenues |
|||||
| Consumer retail |
$ 3,441 |
$ 3,383 |
1.7 |
||
| Small business |
662 |
695 |
(4.7) |
||
| Mass Markets |
4,103 |
4,078 |
0.6 |
||
| Strategic services |
1,969 |
1,765 |
11.6 |
||
| Core |
1,883 |
2,051 |
(8.2) |
||
| Global Enterprise |
3,852 |
3,816 |
0.9 |
||
| Global Wholesale |
1,861 |
2,042 |
(8.9) |
||
| Other |
129 |
211 |
(38.9) |
||
| Total Operating Revenues |
9,945 |
10,147 |
(2.0) |
||
| Operating Expenses |
|||||
| Cost of services and sales |
5,572 |
5,462 |
2.0 |
||
| Selling, general and administrative expense |
2,126 |
2,290 |
(7.2) |
||
| Depreciation and amortization expense |
2,090 |
2,107 |
(0.8) |
||
| Total Operating Expenses |
9,788 |
9,859 |
(0.7) |
||
| Operating Income |
$ 157 |
$ 288 |
(45.5) |
||
| Operating Income Margin |
1.6% |
2.8% |
|||
| Segment EBITDA |
$ 2,247 |
$ 2,395 |
(6.2) |
||
| Segment EBITDA Margin |
22.6% |
23.6% |
|||
| Footnotes: |
|||||
| The segment financial results and metrics above are adjusted to exclude the effects of non-operational items, as the Company's chief operating decision maker excludes these items in assessing business unit performance. |
|||||
| Intersegment transactions have not been eliminated. |
|||||
| Certain reclassifications have been made, where appropriate, to reflect comparable operating results. |
|||||
| Verizon Communications Inc. |
|||||
| Wireline – Selected Operating Statistics |
|||||
| Unaudited |
3/31/12 |
3/31/11 |
% Change |
||
| Connections ('000) |
|||||
| FiOS Video Subscribers |
4,353 |
3,664 |
18.8 |
||
| FiOS Internet Subscribers |
5,010 |
4,289 |
16.8 |
||
| FiOS Digital Voice residence connections |
2,298 |
977 |
* |
||
| FiOS Digital connections |
11,661 |
8,930 |
30.6 |
||
| HSI and other |
3,764 |
4,201 |
(10.4) |
||
| Total Broadband connections |
8,774 |
8,490 |
3.3 |
||
| Primary residence switched access connections |
9,344 |
11,359 |
(17.7) |
||
| Primary residence connections |
11,642 |
12,336 |
(5.6) |
||
| Total retail residence voice connections |
12,421 |
13,327 |
(6.8) |
||
| Total voice connections |
23,700 |
25,454 |
(6.9) |
||
| 3 Mos. Ended |
3 Mos. Ended |
||||
| Unaudited |
3/31/12 |
3/31/11 |
% Change |
||
| Net Add Detail ('000) |
|||||
| FiOS Video Subscribers |
180 |
192 |
(6.3) |
||
| FiOS Internet Subscribers |
193 |
207 |
(6.8) |
||
| FiOS Digital Voice residence connections |
414 |
160 |
* |
||
| FiOS Digital connections |
787 |
559 |
40.8 |
||
| HSI and other |
(89) |
(109) |
(18.3) |
||
| Total Broadband connections |
104 |
98 |
6.1 |
||
| Primary residence switched access connections |
(562) |
(398) |
41.2 |
||
| Primary residence connections |
(148) |
(238) |
(37.8) |
||
| Total retail residence voice connections |
(205) |
(289) |
(29.1) |
||
| Total voice connections |
(437) |
(547) |
(20.1) |
||
| Revenue and ARPU Statistics |
|||||
| Consumer ARPU |
$ 97.88 |
$ 90.55 |
8.1 |
||
| FiOS revenues (in millions) |
$ 2,288 |
$ 1,941 |
17.9 |
||
| Strategic services as a % of total Enterprise revenues |
51.1% |
46.3% |
|||
| Other Operating Statistics |
|||||
| Capital expenditures (in millions) |
$ 1,537 |
$ 1,465 |
4.9 |
||
| Wireline employees ('000) |
90.8 |
92.0 |
|||
| FiOS Video Open for Sale ('000) |
13,460 |
12,585 |
|||
| FiOS Video penetration |
32.3% |
29.1% |
|||
| FiOS Internet Open for Sale ('000) |
13,780 |
12,962 |
|||
| FiOS Internet penetration |
36.4% |
33.1% |
|||
| Footnotes: |
|||||
| The segment financial results and metrics above are adjusted to exclude the effects of non-operational items, as the |
|||||
| Intersegment transactions have not been eliminated. |
|||||
| Certain reclassifications have been made, where appropriate, to reflect comparable operating results. |
|||||
| * Not meaningful |
|||||
SOURCE Verizon Communications Inc.
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