Verizon Wireless Added Over 2 Million New Customers in Q4 2012
Published on: 8th Jan 2013
Note -- this news article is more than a year old.
By: Ian Mansfield
Verizon Wireless expects to have signed up an additional 2.1 million retail postpaid customers in the fourth quarter 2012 of which approximately 87 percent were smartphones. For the full year smartphone activations increased more than 15 percent as compared to 2011.
The figures were released by Verizon Communications CEO, Lowell McAdam during a speech at a conference, and confirmed by the company via a stock market filing.
However, due to the higher up-front subsidies on smartphones, the company expects a near-term negative impact on its EBITDA service margin, which will be greater than the sequential decline from fourth quarter 2011, and a consequent negative impact on profits.
For the landline division at the parent company, Verizon Communications expects to record a pre-tax charge of approximately USD7 billion to US$7.5 billion, related primarily to the non-cash year-end remeasurement of pension and other postretirement liabilities
The company also expects non-operational pre-tax charges of approximately $1.0 billion to $1.5 billion related to the early retirement of debt and other restructuring activities during the quarter.
Finally, the company estimates that the direct impact from Superstorm Sandy will be approximately USD1 billion, with over half of this amount related to operating expenses and the remainder related to capital expenditures and estimates that approximately one-third of the total amount will be recovered by insurance.