Tuesday, January 22, 2013

Verizon: 2012 Revenues Up 4.5% YoY, Charges for Q4

Verizon Communications reported strong customer and revenue growth in Verizon Wireless and Verizon FiOS services in Q4 2012, however there was a loss of $1.48 in EPS in Q4 2012, due to non-operational charges, including impacts from Superstorm Sandy (38 cents per share) and pension/benefit costs.  Verizon Wireless service revenues were up 8.5% in the quarter, while FiOS revenues were up 15.7 percent and strategic enterprise services were up 5.3%.

For full-year 2012, Verizon’s revenues totaled $115.8 billion, up by 4.5 percent, or $5.0 billion, compared with 2011.   CAPEX was $16.2 billion in 2012, including $135 million in companywide capital related to Superstorm Sandy recovery efforts -- downabout $70 million less than in 2011.

Some highlights from the quarterly report:

Verizon Wireless

  • Q4 revenues were $20.0 billion, up 9.5 percent year over year.  Service revenues in the quarter totaled $16.4 billion, up 8.5 percent year over year.  Retail service revenues grew 8.4 percent year over year, to $15.8 billion.
  • Retail postpaid ARPA (average revenue per account) grew 6.6 percent over fourth-quarter 2011, to $146.80 per month.
  • Added 2.2 million net retail connections in Q4, including a record-high 2.1 million retail postpaid net connections.  Verizon Wireless added 5.0 million net retail postpaid connections in 2012, the most in four years.
  • At the end of 2012, the company had 98.2 million retail connections, a 6.6 percent increase year over year -- including 92.5 million retail postpaid connections.
  • At year-end 2012, smartphones accounted for more than 58 percent of the Verizon Wireless retail postpaid customer phone base, up from 53 percent at the end of third-quarter 2012.


  • FiOS customer growth in fourth-quarter 2012 was greater than in the prior two quarters, despite the disruption caused by Superstorm Sandy. Verizon added 144,000 net new FiOS Internet connections and 134,000 net new FiOS Video connections in fourth-quarter 2012.  Verizon had a total of 5.4 million FiOS Internet and 4.7 million FiOS Video connections at the end of the quarter, representing year-over-year increases of 12.6 percent and 13.3 percent, respectively.
  • In 2012, Verizon migrated 223,000 homes to fiber, which contributed to an 11 percent improvement in trouble reports across Verizon’s entire copper network for the year.  The company has a target of 300,000 additional migrations within FiOS markets in 2013.
  • Q4 operating revenues were $10.0 billion, a decline of 1.5 percent compared with fourth-quarter 2011.  Consumer revenues grew 4.1 percent compared with fourth-quarter 2011.
  • Consumer ARPU for wireline services increased to $105.63 in fourth-quarter 2012, up 9.5 percent compared with Q4 2011.
  • ARPU for FiOS customers continues to be more than $150.  FiOS services produced about 68 percent of consumer wireline revenues in fourth-quarter 2012.  About two-thirds of FiOS consumer customers have purchased a “triple play” of phone, Internet and video services.
  • Global enterprise revenues totaled $3.8 billion in the quarter, down 2.1 percent compared with fourth-quarter 2011.  Sales of strategic services increased 5.3 percent compared with fourth-quarter 2011 and represented 54 percent of global enterprise revenues.  Strategic services include Verizon Terremark cloud and data center services, security and IT solutions, advanced communications, and strategic networking.


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