Verizon reports highest y-o-y quarterly revenue growth in eleven-year history for 4Q11

25 Jan 2012

US telecoms giant Verizon Communications has reported revenues of USD28.4 billion for the three months ended 31 December 2011, an increase of 7.7% year-on-year; the results mark the company’s highest y-o-y quarterly revenue growth in its eleven-year history. Full year revenues increased 4% to USD110.9 billion, although Verizon notes that the 2010 figure included revenues from operations that have since been divested; on a comparable basis, Verizon’s FY2011 revenues increased 6.2% compared with FY2010. EBITDA for the twelve month period reached USD29.4 billion, and CAPEX was reported at USD16.2 billion, just short of the telco’s full-year guidance of USD16.5 billion.

In operational terms, mobile unit Verizon Wireless saw its total subscriber base grow 6.3% last year to reach 108.7 million, of which 92.2 million are retail subscribers, and a further 16.5 million are classed as ‘wholesale and other connections’. The wireless unit added 1.5 million retail subscriptions q-o-q, but lost 490,000 ‘telematics’ (machine-to-machine) customers, giving it net additions of around one million subscribers in Q4. In addition, during 4Q11, Verizon confirmed sales of 2.3 million Long Term Evolution (LTE)-suitable devices, although a total 4G subscriber figure has not been released by the operator.

In its fixed line business, Verizon added 201,000 net new fibre-optic ‘FiOS Internet’ connections and 194,000 net new ‘FiOS TV’ connections in 4Q11, to take its subscriber totals to 4.8 million (internet) and 4.2 million (TV) respectively. Elsewhere, total broadband connections reached 8.7 million at the end of December, a 3.3% increase year-on-year. Verizon notes that new FiOS connections more than offset a decrease in DSL-based activity, resulting in a net increase of 98,000 broadband connections q-on-q. Meanwhile, total voice connections – comprising ‘FiOS Digital Voice’ in addition to traditional switched access lines – declined 7.2% to 24.1 million, representing the smallest y-o-y decline since 4Q06.

The group’s CEO Lowell McAdam commented: ‘Verizon finished 2011 very strong, both in terms of revenue growth and by delivering an 18.2% total return to our shareholders for the full year, and the company has great momentum for 2012. Verizon Wireless produced particularly strong growth in the fourth quarter. While that diluted wireless margins in the short term, it is good news for revenue and margin growth over the long term, particularly given our leadership in the rapidly developing 4G LTE ecosystem. With recent strategic moves and our investments in FiOS, LTE, and global IP and cloud-based strategic services, Verizon has set the stage for accelerated growth across our business units, and we look to continue to build significant value for shareholders in 2012’.

United States, Verizon Communications, Verizon Wireless