In the first seven week that the iPhone was available on Verizon ’s steadfast web , 2.2 million of the handsets were activated . That is — not surprisingly , given the pent - up demand — about 12,000 more units per Clarence Day that AT&T activated in the first one-quarter , and goes a long way towards explaining the monster iPhone counting Apple put up yesterday in its earnings assertion .
First - Quarter Performance Affirms 2011 Revenue and Earnings Guidance
1Q HIGHLIGHTS
amalgamated
51 cents in diluted earnings per parcel ( EPS ) , compared with EPS of 16 cents and adjust EPS ( non - generally accepted accounting principles ) of 48 centime in 1Q 2010 .
Wireless
6.3 percent yr - over - year addition in servicing revenues in 1Q 2011 ; datum revenues up 22.3 percentage ; 25.8 percent operating income leeway and 43.7 percent Segment EBITDA perimeter on avail tax income ( non - generally accepted accounting principles ) .
1.8 million net additions , excluding acquisitions and adjustments , includes 906,000 retail prepaid net client add-on ; continue low retail postpaid churn of 1.01 percent .
104.0 million total connection , include 88.4 million retail customers .
Wireline
207,000 net FiOS Internet and 192,000 final FiOS TV addition ; 4.3 million total FiOS Internet connections and 3.7 million total FiOS television receiver connections .
10.5 percentage year - over - yr increase in consumer ARPU ; FiOS consumer retail revenues now interpret just about 54 percent of entire consumer tax income .
12.8 percent increase in strategic enterprise revenues , which now represent approximately 46 percent of entire globose initiative revenues .
Verizon Communications Inc. ( NYSE , NASDAQ : VZ ) today reported firm first - quarter 2011 wage , as industry drawing card Verizon Wireless continued to effectively balance customer growth and profitability , while increment in FiOS and strategic enterprise service contributed to another quarter of improvement in wireline border .
Verizon report 51 cents in EPS in first - tail 2011 , compared with first - tail 2010 net profit of 16 penny per part . There are no modification to first - quarter 2011 earnings outcome . Adjusted first - quartern 2010 earnings , exclude the impact of divestiture and non - useable rush ( non - GAAP ) , were 48 cents per share .
On Track to Meet Revenue and net Objectives
“ In the first quarter , Verizon Wireless solidify its diligence leaders with resultant role that once again showed sustainable , profitable development , ” said Verizon Chairman and CEO Ivan Seidenberg . “ We are executing on our business concern design and building impulse , and we are on track to meet both our tax income and net objective for the year . ”
Seidenberg bring , “ Wireline EBITDA margins expanded for the 4th successive quarter , driven by continued effectiveness in FiOS revenues and disciplined cost direction . Our strategical learning of Terremark , which closed earlier this month , improves our power to bring home the bacon merged , enterprise - class cloud solutions and accelerate growth . ”
Consolidated Revenue Growth Accelerates
On a consolidated basis , Verizon ’s total operating gross were $ 27.0 billion in first - quarter 2011 , an increase of 0.3 per centum compared with first - quarter 2010 . Last year ’s resolution include revenues from trading operations that have since been divested .
On a comparable basis ( non - GAAP ) , first - quarter 2011 total operating revenues increased 5.3 percent compared with first - quarter 2010 — up from growth of 2.3 percentage on the same basis comparing fourth - quarter 2010 with fourth - quarter 2009 . roughly 77 percent of first - fourth part 2011 revenue were generated by high - growth wireless , FiOS and strategic enterprise inspection and repair , compared with approximately 72 percent of comparable first - fourth part 2010 revenues .
As previously put forward , Verizon is target corresponding top - line revenue growth rates in the range of 4 percent to 8 percent for full - year 2011 . The company is also targeting EPS growth of 5 percentage to 8 per centum in 2011 , over a comparable set base of $ 2.08 per portion in 2010 .
Verizon continues to expect 2011 chapiter spending to be essentially monotonous , compared with the 2010 investment of $ 16.5 billion . In first - quarter 2011 , Verizon ’s capital expenditure totaled $ 4.4 billion , compared with $ 3.4 billion in first - fourth part 2010 , as the party aggressively invested in growth chance , including the deployment of Verizon ’s nationwide 4 gigabyte LTE ( 4th - generation , Long - Term Evolution ) wireless broadband web . With 4 G LTE deployment well under way , Verizon ’s capitalise sake will be lower in 2011 , leave in higher interest expense of about $ 150 million for each quarter this year .
John Cash flow from operations add $ 5.0 billion in first - stern 2011 , down from $ 7.1 billion in first - quarter 2010 . Operating hard cash stream from higher nett income in first - twenty-five percent 2011 was countervail by the launch of the iPhone and gratification of Verizon ’s full - year 2011 pension financial support certificate of indebtedness of $ 392 million . In addition , the first half of last year included cash menstruum from since - deprive properties .
Verizon say its cash flow prospect for 2011 remains secure , and there is no change regarding the hoped-for 2012 timing of a Verizon Wireless dividend to its parent companies .
The effective income tax charge per unit attributable to Verizon for the first quarter was 30 percent . For full - twelvemonth 2011 , Verizon anticipates an efficacious tax pace to be in a grasp consistent with the past three quarter , post the Frontier and Alltel divestitures .
Verizon Wireless give up Strong Operational and Financial Results
Verizon Wireless delivered strong growth in revenues , retail customer and other connections ; increase retail prepaid ARPU ( average monthly armed service revenue per substance abuser ) and smartphone penetration ; and delivered a strong EBITDA tolerance . In the first poop of 2011 :
Wireless Financial Highlights
Service revenues in the quarter add $ 14.3 billion , up 6.3 percentage class over yr . Data gross were $ 5.5 billion , up $ 1.0 billion or 22.3 percent class over yr , and represent 38.1 percent of all help revenues . full receipts were $ 16.9 billion , up 10.2 percent year over class .
Retail postpaid ARPU grew 2.2 percentage over first - after part 2010 , to $ 53.52 . Retail postpaid data ARPU increased to $ 20.51 , up 17.3 percentage year over year . Retail armed service ARPU also grew 2.2 pct , to $ 51.88 .
Wireless operating income allowance was 25.8 percent . section EBITDA margin on service gross ( non - GAAP ) was 43.7 percent .
Wireless Operational Highlights
Verizon Wireless added 1.8 million total connections , including 906,000 retail prepaid customers , and 897,000 wholesale and other connector . These addition exclude acquisition and alteration .
At the close of the first quarter , the company had 104.0 million full connection , an increase of 6.1 percent year over year , including 88.4 million retail client and 15.6 million sweeping and other connexion .
At the end of the first fourth , 32 percent of Verizon Wireless ’ retail prepaid customer telephone set base were smartphones , up from 28 pct at the end of fourth - tail 2010 .
Retail postpaid churn remained low at 1.01 percent , and entire retail butter churn was 1.33 percent . Both improved year over twelvemonth .
The company inclose three 4 constant of gravitation LTE devices : the ThunderBolt by HTC , the first 4 G LTE smartphone ; the Verizon USB551L , a modem made by Novatel Wireless ; and a Samsung 4 guanine LTE Mobile Hotspot .
requirement was strong for new LTE machine — as well as for Apple ’s iPhone 4 , which give rise the most successful first - day sale in Verizon Wireless history when it was introduce in February to existing customer .
Verizon Wireless keep on to enthrone in its 3 deoxyguanosine monophosphate internet , the body politic ’s declamatory and most honest 3 G internet .
The company announce plans to start the Verizon Wireless app Innovation Center in San Francisco later this year , where developers , engineers and others can work together on innovative applications that will run on the fellowship ’s 3 GB and 4 gramme meshing .
Continued Wireline Margin Expansion and FiOS Growth
Verizon ’s Wireline segment delivered continued margin expansion and growth in FiOS customers and revenues , as well as speed up emergence in revenues for strategic initiative services . In the first quarter of 2011 :
Wireline Financial Highlights
section EBITDA margin ( non - generally accepted accounting principles ) was 23.6 percent , compare with 21.1 per centum in first - quarter 2010 . This was Wireline ’s fourth consecutive quartern of sequential perimeter expansion .
First - quarter 2011 operating revenues were $ 10.1 billion , a decline of 2.2 percent compared with first - quarter 2010 . This is an improvement from a decline of 2.8 percent comparing 4th - quarter 2010 to fourth - fourth 2009 . First - stern 2011 total operating expenses were $ 9.9 billion , a declination of 3.9 percent liken with first - quarter 2010 .
revenue for Verizon ’s FiOS fiber - optic service to consumer retail customers sire approximately 54 percent of consumer wireline revenue in first - quarter 2011 , compared with approximately 45 percent in first - after part 2010 .
Consumer revenues grew 1.9 pct compare with first - quarter 2010 . Consumer ARPU for wireline services was $ 90.55 in first - quarter 2011 , up 10.5 pct compare with first - one-quarter 2010 . ARPU for FiOS customers carry on to be more than $ 146 .
Global enterprisingness revenues totaled $ 3.8 billion in the after part , up 1.0 percent compared with first - one-quarter 2010 . Sales of strategic enterprise services — such as security and IT solution , as well as strategical networking — increased 12.8 percent compare with first - quarter 2010 , and accelerated from a outgrowth pace of 8.0 percent comparing fourth - quarter 2010 with quaternary - quartern 2009 . Strategic services now symbolize around 46 per centum of spherical endeavor tax revenue .
Wireline Operational Highlights
Verizon added 207,000 net new FiOS Internet connections and 192,000 net new FiOS idiot box connection in first - quarter 2011 . Verizon had 4.3 million FiOS cyberspace and 3.7 million FiOS TV connections at the terminal of the quarter .
Broadband connections number 8.5 million at the death of first - quarter 2011 , a 3.0 percentage year - over - year increment . FiOS Internet connexion more than offset a decrement in DSL - based HSI connections , leading to a net increase of 98,000 broadband connections from quaternary - poop 2010 . These are the most wideband net gain since 2d - quarter 2009 . Total vocalism connections , which measures FiOS Digital Voice connections in gain to traditional switched access line , declined 8.2 per centum to 25.5 million — the smallest class - over - year downslope since first - one-quarter 2008 .
During the quarter , Verizon moved decisively to accelerate its “ everything - as - a - overhaul ” enterprise swarm strategy by announcing its acquisition of cloud and make do IT substructure leader Terremark Worldwide , which close in April .
Verizon continued to deploy secure IT and communication theory solutions that enable better business issue for transnational go-ahead , medium - sized and government customers . These included a newfangled swarm - based interconnected communication service , an enhanced exercise set of Enterprise Identity Management offerings , and delivery of SAP ’s Customer Relationship Management service through Verizon ’s flagship cloud offer , Computing as a Service . In add-on , Verizon completed new agreement during the quarter with a range of transnational corporations , including Delphi Automotive .
Verizon expand its global electronic connection infrastructure , continuing to diversify its global setting and capableness . The ship’s company set up 38 additional individual IP bound routers for a aggregate of 852 edge router in 238 sites throughout 63 countries ; activated the first 100GE ( gigabit Ethernet ) transmitting trunk between routers on Verizon ’s anchor net ; implemented Internet Protocol Version 6 ( IPv6 ) on its public IP backbone in Europe and the Asia - Pacific area ; and actuate 7,021 statute mile of the Europe India Gateway pigboat cable system , which connect the United Kingdom , the Middle East , Africa and Asia .
The Wireline workforce totaled 92,000 at the end of first - quarter 2011 , a class - over - year declination of 16,000 ( adjusted for divested operations ) , chiefly as a result of incentive offers that led to voluntary separation .
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