Verizon sells 1.4m LTE devices in Q3; revenues increase 5.4%

24 Oct 2011

US telco Verizon has reported revenues of USD27.9 billion for the three months ended 30 September 2011; an increase of 5.4% year-on-year. EBITDA for the period grew 19.2% to USD8.8 billion, whilst net income for Q3 increased from USD2.70 billion to USD3.54 billion year-on-year. Verizon also confirmed that its CAPEX for the first nine months of 2011 totalled USD12.5 billion, on track to meet its full year guidance of USD16.5 billion.

In operational terms, Verizon Wireless saw its total subscriber base grow 6.5% to reach 107.70 million, of which 90.71 million are retail subscribers; of this figure, 86.18 million are connected to post-paid contracts. In addition, Verizon claimed 17.00 million ‘wholesale and other connections’ at the same date. During 3Q11, Verizon sold 1.4 million Long Term Evolution (LTE)-suitable devices, although a total 4G subscriber figure has not been released by the operator. As of 20 October 2011, its LTE network was available in 165 markets across the country, covering a population of more than 186 million. With additional markets scheduled before year-end, Verizon says that its LTE network build-out is well ahead of schedule, and has already exceeded the company’s 2011 target of 185 million.

Elsewhere, Verizon added 138,000 net new fibre-optic ‘FiOS Internet’ connections and 131,000 net new ‘FiOS TV’ connections in 3Q11, to take its subscriber totals to 4.6 million (internet) and 4.0 million (TV). With the clearing of FiOS installation backlogs caused by storms and strike activity earlier in the year, Verizon expects to add at least 200,000 FiOS Internet and 200,000 FiOS TV customers in the fourth quarter of 2011. Elsewhere, total broadband connections totalled 8.6 million at the end of September, a 2.8% increase year-on-year. Verizon notes that FiOS connections more than offset a decrease in DSL-based activity, resulting in a net increase of 20,000 broadband connections quarter-on-quarter. Meanwhile, total voice connections – comprising ‘FiOS Digital Voice’ in addition to traditional switched access lines – declined 7.6% to 24.5 million, representing the smallest year-on-year decline since 4Q06.

Verizon CEO Lowell McAdam commented: ‘Verizon emerges from the third quarter in a strong position to accelerate growth. We faced significant challenges in recent months, yet delivered results that keep us on track to meet our 2011 earnings and revenue guidance, with great momentum expected entering 2012. We continue to grow revenues from strategic products and to increase free cash flow through improved operating performance and disciplined capital spending. Verizon Wireless delivered impressive results across the board in the third quarter, and we are geared up for an even better fourth quarter, with new smartphones, tablets and data devices coming to market. In FiOS, we expect to capitalize on pent-up demand and deliver stronger growth in the fourth quarter’.

United States, Verizon Communications