Verizon reports $22.6 billion in revenues, up 6.4 percent from 1Q 2006, and 54 cents in diluted EPS before discontinued operations and special items (non-GAAP), up 17.4 percent from 46 cents per share in 1Q 2006. Some highlights for the quarter:
Verizon Wireless
- Verizon Wireless added 1.6 million retail net customer additions (including acquisitions and adjustments) most of which were post-paid customers. The company now has 58.5 million retail customers. The company added 1.7 million total net customers. Total customers (which include retail and wholesale) number 60.7 million.
- Retail churn was 1.08 percent.
- Retail service ARPU (average monthly revenue per customer) was $50.73, up 2.8 percent year-over-year, delivering the fourth consecutive quarter of year-over-year growth.
Verizon — Wireline
- Data revenues across all market segments increased 12.2 percent, to $4.2 billion, compared with the first quarter 2006. On pro-forma basis (non-GAAP), data revenue growth was 9.5 percent compared with the first quarter 2006.
- Data growth reflected increasing revenues from consumer broadband – such as DSL and Verizon’s all-digital, fiber-optic FiOS services – as well as from wholesale data transport and sales of Verizon Business data services.
- Verizon added 416,000 net new broadband connections. This is the sixth consecutive quarter that Verizon has added more than 400,000 net broadband connections, a measure that combines the number of DSL and FiOS Internet connections.
- Wireline broadband connections totaled 7.4 million, a 30.1 percent
increase compared with the first quarter 2006. This total includes
864,000 FiOS Internet connections, an increase of 177,000 in the first
quarter 2007. - Verizon Telecom added a net of 141,000 new FiOS TV customers in the first quarter 2007. Verizon served 348,000 FiOS TV customers as of the end of the quarter. The company averaged approximately 2,200 FiOS TV net customer additions per business day in the first quarter 2007, about 750 more net additions per business day than the fourth-quarter 2006 average.
- Verizon now serves 618,000 satellite TV customers in partnership with DIRECTV, for a total approaching 1 million video customers nationwide.
- Revenues for Verizon Telecom’s consumer market decreased by 3.5 percent, to $4.2 billion, comparing first quarter 2007 with first quarter 2006. However, in legacy Verizon markets, consumer revenues reversed recent year-over-year declines. (Legacy Verizon consumer markets exclude former MCI consumer markets – where Verizon’s strategic focus has led to expected declines.) With an increasing shift to broadband and video sales, FiOS sales contributed to revenue growth in legacy Verizon markets of 1.6 percent, to $3.8 billion, comparing first quarter 2007 with first quarter 2006.
Verizon Business
- Verizon Business reported first-quarter 2007 revenues of $5.2 billion, or growth of 2.3 percent compared with the first quarter 2006 on a pro-forma adjusted basis (non-GAAP, including MCI revenues from Jan. 1, 2006). This is the second consecutive quarter of positive year-over-year revenue growth.
- Overall revenue growth at Verizon Business was driven by the continued momentum of strong sales of key strategic services, such as IP and managed services. In the first quarter 2007, strategic services generated $1.2 billion in revenue, up 22.8 percent from the first quarter 2006 on a pro-forma basis. This resulted in year-over-year growth of more than $200 million in revenues from strategic services, and it exceeded declines in revenues from core services, such as traditional voice and data services. Sales of strategic services were also up sequentially, increasing 2.0 percent from the fourth quarter 2006.
CAPEX
- Capital expenditures were in line with the company’s previously announced plans. Expenditures totaled $4.2 billion in the first quarter 2007, compared with $4.0 billion in the first quarter 2006.
http://www.verizon.com