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Verizon Quarterly Profits Down by 10%
Verizon Communications has reported that its total operating revenues grew 10.2 percent to US$27.3 billion, compared with the third quarter 2008. This includes revenues from Alltel, which Verizon acquired in January 2009. On a pro forma basis, operating revenue growth was 0.6 percent.
Net income was down by 9.8% though to US$2.9 billion, from US$3.2 billion a year ago.
Cash flow from operations totaled US$23.1 billion for the first nine months of 2009, up 16 percent, or $3.2 billion, over the same period last year. Free cash flow (cash flow from operations minus capital expenditures) totaled $10.7 billion, up $3.3 billion over the same period last year.
"Verizon continues to generate strong cash flow, which we have used in building the foundation for sustainable, long-term shareowner value," said Verizon Chairman and CEO Ivan Seidenberg. Seidenberg also noted that a simplified organizational structure announced earlier this month will enable Verizon to achieve improved levels of productivity. The realignment has combined two former Wireline business groups, Verizon Telecom and Verizon Business, into one organization.
Wireless retail (non-wholesale) gross customer additions were up 15 percent over the prior year. On a pro forma basis, retail gross customer additions decreased by 8.3 percent. Verizon Wireless had 89.0 million customers at the end of the quarter, an increase of 25.7 percent year over year, and 6.3 percent on a pro forma basis.
Total service ARPU decreased 2.2 percent year over year and 0.8 percent on a pro forma basis to US$51.04. Total data ARPU increased to $15.59, up 17.2 percent year over year and 20.7 percent on a pro forma basis.
Posted to the site on 26th October 2009