Verizon profit climbs to $1.95 billion in Q1 on solid subscriber growth
Verizon Communications posted its first-quarter earnings results on Thursday, showing solid income and revenue growth. The nation’s No.1 carrier reported EPS growth of 15.3% in the first quarter as Verizon earned $0.68 per share, or $1.95 billion, compared to $0.59 in the same quarter last year. Sales also climbed 4% to $29.4 billion, narrowly missing the Street’s $29.54 billion consensus. Smartphones accounted for 61% of Verizon’s postpaid customer base which grew by a net 677,000 subscribers in the first quarter. The carrier also said it activated 4 million iPhones during Q1 2013, beating Wall Street’s 3.5 million-unit consensus. Verizon shares climbed 1.94% during Thursday’s pre-market session. The carrier’s full press release follows below.
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Verizon Wireless Expands Margins; Continued Strong Customer and Revenue Gains Reported for Wireless, FiOS and Global Enterprise Strategic Services
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1Q 2013 HIGHLIGHTSConsolidated
Wireless
Wireline
NEW YORK - Verizon Communications Inc. (NYSE, Nasdaq: VZ) today reported strong first-quarter 2013 earnings growth, driven by record margins at Verizon Wireless and continued strong cash flow and year-over-year revenue increases for wireless, FiOS and strategic enterprise services.
Verizon reported 68 cents in EPS in first-quarter 2013, a 15.3 percent increase compared with first-quarter 2012 earnings of 59 cents per share. There were no adjustments in either quarter.
“Verizon is off to an excellent start in 2013,” said Lowell McAdam, Verizon chairman and CEO. “Our strategic investments in wireless, wireline and global networks have given us the platforms to sustain momentum and take advantage of growth opportunities in key markets for broadband, video and cloud services. With ongoing improvements in operating efficiency, we expect continued growth in free cash flow and earnings as we move through the year.”
Strong Cash Flow and Consolidated Revenue Growth
In first-quarter 2013, Verizon’s consolidated results were highlighted by continued strong cash flow and revenue growth.
Consolidated Highlights
Verizon Wireless Delivers Record Profitability, Strong Customer and Revenue Growth
In first-quarter 2013, Verizon Wireless delivered strong growth in retail postpaid net additions and revenues; an increase in smartphone penetration; and the highest segment EBITDA margin on service revenues (non-GAAP) in the company’s history — surpassing the previous high in third-quarter 2012.
Wireless Financial Highlights
Wireless Operational Highlights
Wireline Reports Continued Strong FiOS Customer and Revenue Growth
Verizon’s Wireline segment reported continued strong FiOS customer, market share and revenue growth in first-quarter 2013, leading to overall growth in consumer revenues. In enterprise and wholesale, increased sales of global enterprise strategic services continued to help mitigate lower revenues resulting from secular and global economic impacts.
Wireline Financial Highlights
Wireline Operational Highlights
Verizon added 188,000 net new FiOS Internet connections in first-quarter 2013, marking the third consecutive quarter of sequential growth in net customer additions. The company also added 169,000 net new FiOS Video connections in the quarter. Verizon had a total of 5.6 million FiOS Internet and 4.9 million FiOS Video connections at the end of the quarter, representing year-over-year increases of 12.0 percent and 12.5 percent, respectively.
FiOS penetration (subscribers as a percentage of potential subscribers) continued to increase. FiOS Internet penetration was 38.2 percent at the end of first-quarter 2013, compared with 36.4 percent at the end of first-quarter 2012. In the same periods, FiOS Video penetration was 34.1 percent, compared with 32.3 percent. The FiOS network passed 17.8 million premises by the end of first-quarter 2013.
Broadband connections totaled 8.9 million at the end of first-quarter 2013, a 1.4 percent year-over-year increase. Overall, net broadband customers increased 99,000 in the first quarter, as FiOS Internet net customer additions more than offset fewer subscribers for DSL-based High Speed Internet services.
Verizon has been replacing high-maintenance portions of its residential copper network with fiber optics to provide enhanced services and to reduce ongoing repair costs. In first-quarter 2013, Verizon migrated 83,000 homes to fiber, toward a target of 300,000 migrations within FiOS markets in 2013.
Verizon Enterprise Solutions completed agreements with and began deploying innovative business technology solutions for a variety of corporations and organizations in the quarter, including the Commonwealth of Pennsylvania, Ocean Exploration Trust, Quest Diagnostics and Synchronoss Technologies (Nasdaq: SNCR).
This article was originally published on BGR.com
