updated 10:38 am EDT, Thu April 24, 2014
First financial report after taking complete ownership of Verizon Wireless
Verizon is reporting revenues of $30.8 billion and an adjusted profit of $0.84 per-share in its first quarter financial results. While the quarter takes into account a full five weeks of ownership of Verizon Wireless, following the acquisition of Vodafone's holdings in the company, the results are slightly under the $0.87 per-share earnings analysts expected from marginally lower revenues of $30.7 billion.
Verizon Wireless picked up $20.9 billion in first-quarter revenues, a year-on-year improvement of 6.9 percent. During the period, it added 549,000 retail net connections, including 539,000 postpaid, and at the end of the quarter had a subscriber base of 103.3 million retail connections, 97.3 million being postpaid. Smartphones made up more than 72 percent of its device sales, up from the 70-percent share in the previous quarter, with 7.6 million activations. A total of 8.1 million 4G LTE devices were activated in the quarter, with the carrier noting that about 73 percent of its total data traffic used its 4G LTE network.
The wireline business is also seeing year-on-year improvements, rising 6.2 percent to $3.8 billion in consumer revenues. FiOS represents 74 percent of these revenues, growing 14.6 percent year-on-year, with FiOS quarterly revenues also passing $3 billion for the first time. A total of 98,000 net FiOS Internet connections were added, along with 57,000 net FiOS Video connections, bringing the subscriber totals to 6.2 million and 5.3 million respectively. At the end of the quarter, 51 percent of FiOS Internet customers were subscribed to its FiOS Quantum service, providing connections between 50Mbps and 500Mbps, up from the 46 percent reported at the end of last year. The company still has more than 9 million broadband customers at the end of the quarter, up 1.5 percent, though it notes that FiOS Internet additions offset declines in its DSL-based services.
Looking to the future, Verizon is targeting consolidated top-line growth of 4 percent. It also notes that, while its Edge payment plan for mobile devices minimally affected the first quarter results, it is likely to make a greater impact on revenue growth in future quarters, with service revenues shifting over to equipment revenues.