Verizon Posts Double Digit Rise in Operating Income
USA based Verizon has reported its third-quarter financial results with year-over-year double-digit percentage growth in operating income, boosted by demand for Verizon Wireless, FiOS and strategic enterprise services.
Total operating revenues in third-quarter 2013 were US$30.3 billion, a 4.4 percent increase compared with third-quarter 2012. This is the fourth consecutive quarter of year-over-year revenue growth of more than 4 percent.
Operating income increased 30.0 percent, to $7.1 billion in third-quarter 2013, compared with $5.5 billion in third-quarter 2012. Operating income margin jumped to 23.5 percent in third-quarter 2013, compared with 18.9 percent a year ago.
Lowell McAdam, Verizon chairman and CEO, said: "Our unwavering focus on wireless, FiOS and strategic enterprise services has produced consistent performance, and we've delivered double-digit earnings growth in six of the past seven quarters."
At the end of the third quarter, the company had 101.2 million retail connections -- a 5.5 percent increase year over year -- including 95.2 million retail postpaid connections.
Total revenues were $20.4 billion in third-quarter 2013, up 7.2 percent year over year. Service revenues in the quarter totaled $17.5 billion, up 8.4 percent year over year. Retail service revenues grew 8.0 percent year over year, to $16.8 billion.
Consumer revenues were $3.7 billion, an increase of 4.3 percent compared with third-quarter 2012.
In third-quarter 2013, Verizon added 173,000 net new FiOS Internet connections, up 27.2 percent from third-quarter 2012 -- and 135,000 net new FiOS Video connections, up 13.4 percent. Verizon had a total of 5.9 million FiOS Internet and 5.2 million FiOS Video connections at the end of the quarter, representing year-over-year increases of 12.6 percent for each.