Citing gains in strategic growth areas such as wireless, broadband, data, video and global IP, Verizon Communications reported $23.8 billion in Q4 2007 revenues, up 5.5 percent; up 5.6 percent on an adjusted basis (non-GAAP) and earnings of 37 cents in fully diluted earnings per share (EPS). This compares with fourth-quarter 2006 earnings of 48 cents per share before income from discontinued operations that have since been divested.
"In the fourth quarter, the momentum of revenue growth and margin expansion continued to drive double-digit earnings growth, and we once again reported strong growth in sales of all our strategic products," said Verizon Chairman and CEO Ivan Seidenberg.
Some highlights for the quarter.
Wireless
- 2.0 million total net customer additions, 1.9 million net retail customer additions; 65.7 million total customers, 63.7 million retail (non-wholesale) customers; 6.9 million retail net adds in 2007, the most of any carrier.
- 1.20 percent total churn, 0.94 percent retail post-paid churn.
- Total revenues in the quarter were $11.4 billion, up 13.3 percent; service revenues were $9.9 billion, up 13.7 percent, driven by customer growth and demand for data services. Full-year revenues were $43.9 billion, up 15.3 percent.
- ARPU (average monthly revenue per customer) levels increased year-over-year for the seventh consecutive quarter: retail ARPU of $51.49 was up 1.4 percent; retail data ARPU of $11.06 was up 36.0 percent.
- 226,000 net new FiOS TV customers, 943,000 total FiOS TV customers at year-end; Verizon now has more than 1 million FiOS TV customers. Including satellite TV customers served in partnership with DIRECTV (a net of 63,000 added this quarter), Verizon has more than 1.8 million video customers.
- Verizon added a net of 264,000 new broadband connections (DSL and FiOS Internet connections combined). Broadband connections totaled 8.2 million, an increase of 17.9 percent compared with year-end 2006. The company added a net of 245,000 FiOS Internet connections this quarter, for a total of more than 1.5 million as of year-end.
- ARPU in legacy Verizon wireline markets (which excludes former MCI consumer markets) increased 11.0 percent to $59.48, compared with the fourth quarter 2006.
- The FiOS network passed more than 9.3 million premises by year-end. Estimated earnings dilution from FiOS was 9 cents per share in the fourth quarter.
- FiOS Internet was available for sale to 7.5 million premises in parts of 17 states by year-end. Penetration for the service averaged 20.6 percent across all markets. FiOS TV was available for sale to 5.9 million premises in parts of 13 states by year-end. Penetration for the service averaged 16.0 percent across all markets.
- Verizon Business generated revenues of $5.4 billion, or growth of 0.5 percent compared with the fourth quarter 2006 on an adjusted basis (non-GAAP). This is Verizon Business' fifth consecutive quarter of year-over-year, pro-forma revenue growth.
- Verizon cited strong sales of key strategic services -- such as IP, managed services, Ethernet and optical ring services -- continued to drive Verizon Business' growth. These services generated more than $1.4 billion in revenue, up 25.1 percent from the fourth quarter 2006.
Wireline
Verizon Business
