Verizon Earnings: Wireless Leads, Wired Treads Water

Thoughts on Carrier Evolution (Jan 24 2012) Business Models

1. Verizon earnings and revenue growth during the fourth quarter of 2011 were strong. Verizon had revenue of $28.4 billion, an increase of 7.7 percent from the same quarter of 2010.
   
   After adjustments for a strike, a huge snowstorm, a pension charge and higher costs for Apple iPhone subsidies, Verizon earned 52 cents a share, just below analyst forecasts of 53 cents, so share prices dipped after the earnings were released.
   
   Verizon actually ended the quarter with a $212 million loss, down from a $4.6B profit in the period last year, on revenues of $28.4 billion.
   
   The revenue increase was a company record. The operational results always are more interesting for some of us who track changes in the wireless and wireline communications business. Wireless generated $18 billion worth of revenue, wired services about $10 billion.
   
   Operating revenue grew in mobile, declined in fixed line. Basically, all the new FiOS revenue is simply compensating for losses in other legacy services, including voice services and digital subscriber line.

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