Verizon Communications Posts 16% Rise in Q1 Profits
USA based Verizon Communications has reported that its first-quarter revenues were US$29.4 billion, a 4.2 percent increase compared with first-quarter 2012.
Net profit rose by 16 percent to US$1.95 billion, up on the US$1.69 billion a year ago.
In the Verizon Wireless division, which is 45% owned by Vodafone, the total revenues were $19.5 billion, up 6.8 percent year over year.
Retail postpaid ARPA (average revenue per account) increased 6.9 percent over first-quarter 2012, to $150.27 per month. As customers continue to add multiple devices to accounts, Verizon Wireless has been reporting ARPA instead of ARPU (average revenue per user) on a postpaid basis since customers can share data among multiple devices.
In first-quarter 2013, wireless operating income margin was 32.9 percent and segment EBITDA margin on service revenues was 50.4 percent, setting record-highs.
At the end of the first quarter, the company had 98.9 million retail connections, a 6.4 percent increase year over year -- including 93.2 million retail postpaid connections.
At the end of the first quarter, smartphones accounted for more than 61 percent of the Verizon Wireless retail postpaid customer phone base, up from 58 percent at the end of fourth-quarter 2012.
"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."
In the landline division, revenues were $3.6 billion, an increase of 4.3 percent compared with first-quarter 2012. Consumer ARPU for wireline services increased to $107.15 in first-quarter 2013, up 9.5 percent compared with first-quarter 2012.