Verizon Communications Posts $4.2 Billion Loss After One-Off Costs
Published on: 22nd Jan 2013
Note -- this news article is more than a year old.
By: Ian Mansfield
USA based Verizon Communications has reported that its fourth quarter revenues rose by 5.7% to reach US$30.05 billion. However the company posted a net loss of US$4.23 billion compared to a loss of US$2 billion a year ago thanks largely to the recently announced pensions provision.
Verizon Wireless reported record-setting customer additions in the quarter, while Verizon FiOS customer additions were higher in fourth-quarter 2012 than in the prior two quarters, despite the impact of Superstorm Sandy.
Capital expenditures were $16.2 billion in 2012, including $135 million in companywide capital related to Superstorm Sandy recovery efforts, and totaled about $70 million less than in 2011.
In fourth-quarter 2012, Verizon saw year-over-year revenue increases across all strategic growth areas: 8.5 percent for Verizon Wireless service revenues, 15.7 percent for FiOS revenues and 5.3 percent for strategic enterprise services.
For Verizon Wireless, the company saw revenues rise by 9.5% to US$20 billion.
Retail postpaid ARPA (average revenue per account) grew 6.6 percent to $146.80 per month. As customers continue to add multiple devices to accounts following the introduction of the Share Everything Plan in June, Verizon Wireless now reports ARPA instead of ARPU since customers can share data among multiple devices.
At the end of 2012, the company had 98.2 million retail customers, a 6.6 percent increase year over year -- including 92.5 million retail postpaid connections.
At year-end 2012, smartphones accounted for more than 58 percent of the Verizon Wireless retail postpaid customer phone base, up from 53 percent at the end of third-quarter 2012.
"Verizon seized growth opportunities in the fourth quarter to cap a year of solid progress across the entire business," said Lowell McAdam, Verizon chairman and CEO. "We delivered a total return of 13.2 percent to shareholders in 2012, and we enter 2013 ready to accelerate the momentum we've achieved and create significant shareholder value in the years to come."
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