Verizon provides ‘report-excessive’ 2.1 million subscribers in This fall 2012, however nonetheless makes a loss
Verizon has simply introduced that the final quarter was its greatest but — in regard to subscriber numbers. These 2.1 million new additions imply that Verizon can now lay declare to ninety eight.2 million clients in complete, whereas smartphones have now claimed a further 5 % of this base, as much as fifty eight %. Since its final report, This fall consolidated revenues totaled $30 billion for the primary time, though income have been hit by $one hundred thirty five million in damages from Hurricane Sandy in addition to a one-time pension value that meant the corporate took a cost of between $9 and 10 billion for the quarter. This made up a $1.ninety three billion loss for the service, which remained, unsurprisingly, upbeat. Verizon’s FiOS web and TV companies added one hundred forty four,000 and 134,000 clients, respectively. Based on Verizon, its LTE community is now obtainable to 273 million individuals and CEO Lowell McAdam is looking the final twelve months “a yr of strong progress.”
Earnings Impacted by Beforehand Introduced Non-Operational Costs
4Q 2012 HIGHLIGHTS Wi-fi
eight.5 % yr-over-yr improve in service revenues in 4Q 2012; eight.four % yr-over-yr improve in retail service revenues. 2.2 million retail internet additions, excluding acquisitions and changes, together with a report-excessive 2.1 million retail postpaid internet connections; low retail postpaid churn of zero.ninety five %; ninety eight.2 million complete retail connections, ninety two.5 million complete retail postpaid connections. 4G LTE service now obtainable to greater than 273 million individuals in 476 markets throughout the U.S. Wireline
four.1 % yr-over-yr improve in shopper revenues; shopper ARPU (common income per consumer) up 9.5 % yr over yr, to $one hundred and five.sixty three. one hundred forty four,000 FiOS Web and 134,000 FiOS Video internet additions, with continued elevated gross sales penetration for each providers; 5.four million complete FiOS Web, four.7 million complete FiOS Video clients. Consolidated Earnings
A lack of $1.forty eight in earnings per share (EPS), in contrast with a lack of seventy one cents per share in 4Q 2011, impacted by non-money pension gadgets in each quarters and extra non-operational debt retirement and different restructuring gadgets in 4Q 2012. A 7-cent-per-share impression because of Superstorm Sandy yielded 38 cents per share in adjusted EPS (non-GAAP), in contrast with fifty two cents in adjusted EPS in 4Q 2011. NEW YORK – Verizon Communications Inc. (NYSE, Nasdaq: VZ) in the present day reported robust buyer and income progress in Verizon Wi-fi and Verizon FiOS providers in fourth-quarter 2012 — positioning the corporate nicely for 2013.
Verizon Wi-fi reported document-setting buyer additions within the quarter, whereas Verizon FiOS buyer additions have been greater in fourth-quarter 2012 than within the prior two quarters, regardless of the impression of Superstorm Sandy.
“Verizon seized progress alternatives within the fourth quarter to cap a yr of strong progress throughout the whole enterprise,” stated Lowell McAdam, Verizon chairman and CEO. “We delivered a complete return of thirteen.2 % to shareholders in 2012, and we enter 2013 able to speed up the momentum we have achieved and create vital shareholder worth within the years to return.”
4Q and Full-Yr Earnings Outcomes
Because of the influence of non-operational gadgets introduced earlier this month, Verizon reported a lack of $1.forty eight in EPS in fourth-quarter 2012, in contrast with a fourth-quarter 2011 lack of seventy one cents per share.
A discount of seven cents per share as a consequence of impacts from Superstorm Sandy yielded a complete of 38 cents per share in adjusted fourth-quarter 2012 earnings (non-GAAP). Fourth-quarter 2012 fees totaled $1.86 per share: $1.fifty five per share associated to severance, pension and profit expenses primarily for the annual actuarial valuation of Verizon’s profit plans in addition to the annuitization of varied pension liabilities in the course of the quarter, and 31 cents per share associated to the early retirement of debt and different restructuring actions.
Comparable adjusted fourth-quarter 2011 earnings of fifty two cents per share excluded costs of $1.23 per share, primarily associated to the valuation of pension plans.
On an annual foundation, Verizon reported 31 cents in 2012 EPS, in contrast with eighty five cents per share in 2011. Adjusted annual EPS (non-GAAP) was $2.24 in 2012, in contrast with $2.15 in 2011.
Income Progress Throughout All Strategic Areas; Continued Robust Money Movement
In fourth-quarter 2012, Verizon’s consolidated quarterly working revenues exceeded $30.zero billion for the primary time in firm historical past. This represented a 5.7 % improve in contrast with fourth-quarter 2011 and was the corporate’s highest yr-over-yr quarterly progress price in 2012.
For full-yr 2012, Verizon’s revenues totaled $one hundred fifteen.eight billion, a rise of four.5 %, or $5.zero billion, in contrast with 2011. In fourth-quarter 2012, Verizon noticed yr-over-yr income will increase throughout all strategic progress areas: eight.5 % for Verizon Wi-fi service revenues, 15.7 % for FiOS revenues and 5.three % for strategic enterprise providers.
Money circulate from working actions totaled $31.5 billion in 2012, a rise of 5.7 % in contrast with $29.eight billion in 2011.
Capital expenditures have been $sixteen.2 billion in 2012, together with $one hundred thirty five million in companywide capital associated to Superstorm Sandy restoration efforts, and totaled about $70 million lower than in 2011. Free money circulate (non-GAAP, money stream from operations much less capex) was $15.three billion for the yr, a rise of thirteen.1 % in contrast with $thirteen.5 billion in 2011.
Verizon maintained a robust stability sheet, with yr-finish 2012 complete debt of $fifty two.zero billion, down from $fifty five.2 billion at yr-finish 2011.
Verizon Wi-fi Delivers Document-Excessive Buyer Additions and Robust Income Progress
In fourth-quarter 2012, Verizon Wi-fi delivered the very best variety of retail postpaid internet additions of any quarter in its historical past, robust progress in revenues, a rise in smartphone penetration, and continued low retail postpaid churn.
Wi-fi Monetary Highlights
Complete revenues have been $20.zero billion in fourth-quarter 2012, up 9.5 % yr over yr. Service revenues within the quarter totaled $sixteen.four billion, up eight.5 % yr over yr. Retail service revenues grew eight.four % yr over yr, to $15.eight billion. For full-yr 2012, complete revenues have been $seventy five.9 billion, up eight.1 % over full-yr 2011, and repair revenues have been $sixty three.7 billion in 2012, up 7.7 % yr over yr. Retail postpaid ARPA (common income per account) grew 6.6 % over fourth-quarter 2011, to $146.eighty per 30 days. As clients proceed so as to add a number of units to accounts following the introduction of the Share Every thing Plan in June, Verizon Wi-fi now studies ARPA as an alternative of ARPU since clients can share knowledge amongst a number of units. In fourth-quarter 2012, wi-fi working revenue margin was 24.zero % and phase EBITDA margin on service revenues (non-GAAP) was forty one.four %, down eighty foundation factors from fourth-quarter 2011. For full-yr 2012, working revenue margin was 28.7 %, up 230 foundation factors from full-yr 2011; phase EBITDA margin was forty six.6 %, up one hundred eighty foundation factors yr over yr. Wi-fi Operational Highlights
Verizon Wi-fi added 2.2 million internet retail connections within the fourth quarter, together with a report-excessive 2.1 million retail postpaid internet connections. The corporate added 5.zero million internet retail postpaid connections in 2012, probably the most in 4 years. These additions exclude acquisitions and changes. On the finish of 2012, the corporate had ninety eight.2 million retail connections, a 6.6 % improve yr over yr — together with ninety two.5 million retail postpaid connections. Verizon Wi-fi had 35.1 million retail postpaid accounts on the finish of the fourth quarter, a 1.four % improve over the fourth quarter 2011, and a mean of two.6 connections per account, up four.three % yr over yr. At yr-finish 2012, smartphones accounted for greater than fifty eight % of the Verizon Wi-fi retail postpaid buyer telephone base, up from fifty three % on the finish of third-quarter 2012. Retail postpaid churn was zero.ninety five % within the fourth quarter and retail churn was 1.24 %, each up 1 foundation level yr over yr. Verizon Wi-fi continued to roll out its 4G LTE cellular broadband community, the most important 4G LTE community within the U.S. As of in the present day (Jan. 22), Verizon Wi-fi 4G LTE service is accessible to greater than 273 million individuals — near 89 % of the inhabitants — in 476 markets throughout the U.S. The corporate continued to reinforce its gadget lineup with new smartphones and tablets. Within the fourth quarter, Verizon Wi-fi launched eight 4G LTE smartphones: the DROID RAZR HD and DROID RAZR MAXX HD by Motorola; Home windows Telephone 8X by HTC; Nokia Lumia 822; Samsung Galaxy Observe II; Spectrum 2 by LG; Samsung Galaxy Stratosphere II; and the DROID DNA by HTC. As well as, Verizon Wi-fi launched three tablets within the quarter: the Samsung Galaxy Tab 2, Apple iPad with Retina show and Apple iPad mini. Verizon Wi-fi introduced it should start providing shared knowledge plans for enterprise on Jan. 24, 2013, with the Share The whole lot Plan for Small Enterprise and the Nationwide for Enterprise Knowledge Packages and Plans. Wireline Reviews Continued Robust FiOS Buyer and Income Progress
Within the Wireline phase, FiOS buyer progress in fourth-quarter 2012 was larger than within the prior two quarters, regardless of the disruption brought on by Superstorm Sandy. In international enterprise and wholesale, elevated gross sales of strategic providers continued to assist mitigate decrease revenues ensuing from secular and international financial impacts.
Wireline Monetary Highlights
Fourth-quarter 2012 working revenues have been $10.zero billion, a decline of 1.5 % in contrast with fourth-quarter 2011. Shopper revenues grew four.1 % in contrast with fourth-quarter 2011. On an annual foundation, 2012 shopper revenues totaled $14.zero billion, a rise of three.2 % in contrast with 2011 and Verizon’s highest annual income progress fee in shopper wireline in 10 years. Shopper ARPU for wireline providers elevated to $one hundred and five.sixty three in fourth-quarter 2012, up 9.5 % in contrast with fourth-quarter 2011. ARPU for FiOS clients continues to be greater than $one hundred fifty. FiOS providers produced about sixty eight % of shopper wireline revenues in fourth-quarter 2012. About two-thirds of FiOS shopper clients have bought a “triple play” of telephone, Web and video providers. International enterprise revenues totaled $three.eight billion within the quarter, down 2.1 % in contrast with fourth-quarter 2011. Gross sales of strategic providers elevated 5.three % in contrast with fourth-quarter 2011 and represented fifty four % of worldwide enterprise revenues. Strategic providers embrace Verizon Terremark cloud and knowledge middle providers, safety and IT options, superior communications, and strategic networking. For 2012, wireline working revenue margin was zero.2 % and wireline EBITDA margin (non-GAAP) was 21.three %, together with the unfavorable impression of fourth-quarter storm restoration. Excluding identifiable storm impacts (non-GAAP), wireline working revenue margin was 1.zero % and wireline EBITDA margin was 22.1 %. Wireline Operational Highlights
Verizon added one hundred forty four,000 internet new FiOS Web connections and 134,000 internet new FiOS Video connections in fourth-quarter 2012. Verizon had a complete of 5.four million FiOS Web and four.7 million FiOS Video connections on the finish of the quarter, representing yr-over-yr will increase of 12.6 % and thirteen.three %, respectively. FiOS penetration (subscribers as a proportion of potential subscribers) continued to extend. FiOS Web penetration was 37.three % on the finish of fourth-quarter 2012, in contrast with 35.5 % on the finish of fourth-quarter 2011. In the identical durations, FiOS Video penetration was 33.three %, in contrast with 31.5 %. The FiOS community handed 17.6 million premises at yr-finish 2012. Broadband connections totaled eight.eight million at yr-finish 2012, a 1.four % yr-over-yr improve. Revenues from broadband connections grew three.1 % — to $three.5 billion for full-yr 2012 — over the identical interval, pushed by buyer purchases of upper-velocity FiOS providers. Verizon has been changing excessive-upkeep parts of its residential copper community with fiber optics to offer enhanced providers and to scale back ongoing restore prices. In 2012, Verizon migrated 223,000 houses to fiber, which contributed to an eleven % enchancment in hassle stories throughout Verizon’s complete copper community for the yr. The corporate has a goal of 300,000 further migrations inside FiOS markets in 2013. To satisfy quickly rising buyer-visitors calls for, Verizon deployed further 100G (gigabits per second) know-how on community routes within the U.S. and Europe in fourth-quarter 2012. Within the U.S., these excessive-capability routes included Atlanta to Tampa, Kansas Metropolis to Dallas and Salt Lake Metropolis to Seattle. Throughout 2012, the corporate added thirteen,000 miles to its 100G community within the U.S. Verizon Enterprise Options accomplished agreements with multinational and U.S. firms The Coca-Cola Firm, Hongkong and Shanghai Resorts Ltd., Bridgestone Americas, CME Group, Redbox and Shred-It for superior enterprise know-how options. Verizon Enterprise Options launched a complete cloud and knowledge middle infrastructure portfolio particularly designed to assist the well being care business meet the federal Well being Insurance coverage Portability and Accountability Act (HIPAA) necessities for safeguarding digital protected well being info.