Verizon witnesses sizeable Q1 net income boost following Vodafone stake buyout

25 Apr 2014

US telecoms giant Verizon Communications has reported revenues of USD30.818 billion for the three months ended 31 March 2014, an increase of 4.8% year-on-year from USD29.420 billion. Of this figure, mobile unit Verizon Wireless generated sales of USD20.879 billion. Consolidated operating income for the first quarter was USD7.160 billion, up 15.1% from USD6.222 billion on an annualised basis. Net income for the January-March period totalled USD5.986 billion, up 23.3% from USD4.855 billion one year earlier.

In operational terms, mobile unit Verizon Wireless saw its retail subscriber base grow 4.4% to 103.3 million, including 97.3 million post-paid customers. The cellular unit added 549,000 retail customers on a net basis in the first quarter, including 539,000 net post-paid additions; as at 31 March smartphones constituted more than 72% of Verizon Wireless’ post-paid user base. In addition, during 1Q14 Verizon confirmed sales of 8.1 million Long Term Evolution (LTE)-suitable devices, for a total of 47.9 million, while 73% of the company’s total data traffic is now carried over its LTE network.

Lowell McAdam, Verizon chairman and CEO, commented: ‘Verizon has delivered double-digit earnings growth in eight of the past nine quarters, and in first-quarter 2014 we posted our strongest consolidated revenue growth in five quarters. With the [Verizon Wireless] transaction now behind us, we have great confidence in our ability to sustain these strong results. We are already seeing the expected earnings accretion from the transaction.’

United States, Verizon Communications, Verizon Wireless