Despite record number of smartphone activations, Verizon loses $1.93 billion in Q4
0. phoneArena 22 Jan 2013, 07:34 posted on
Verizon reported adding 2.1 million new post-paid subscribers in the fourth quarter and activated a record number of smartphones in the quarter, but despite all this, the nation's largest carrier reported a loss of $1.93 billion for the three month period due to charges related to Hurricane Sandy; minus the charges, Verizon made 45 cents a share in profit, below expectations of 52 cents a share...
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1. anonimust (Posts: 19; Member since: 12 Jan 2012)
Inaccurate reporting. The results released were for Verizon Communications, the parent company which includes both Verizon Telecom and Verizon Wireless. The majority of the loss was sustained by Verizon Telecom due to damage and destruction of the costlier landline / FiOS network.
2. Alan01 (Posts: 357; Member since: 21 Mar 2012)
Actually, the costs related to Hurricane Sandy also dealt with the wireless end of the business.The company waived a number of late charges and the costs of using mobile trucks to keep the network running weighed on the quaterly results.
The best way to look at Verizon's numbers is to remove one time charges which resuklts in profits of 45 cents a share. That includes both wireless and the FIOS/landline business.
Considering that we never broke down the numbers between the two divisions, our coverage is completely accurate.
8. PAPINYC (banned) (Posts: 2315; Member since: 30 Jul 2011)
Actually, the best way to analyze Verizon's loss (since that's what the article attempts) is to state the obvious, if Verizon had not been so benevolent during (and, after) SuperStorm Sandy, it's quarterly loss would have been much less. Realizing, of course, that they are still repairing damage to their underground lines near Water Street, TriBeCa and other areas in NYC where their underground lines were damaged, as is evidenced by the presence of Verizon repair crews.
Verizon also GREATLY helped non-subscribers (who were with other carriers) to borrow phones (since their service was dead, cough-cough, T-Mobile, AT&T, Sprint); allowed people to charge their phones (AT&T said "No, you can not use our outlets even if you're a subscriber); allowed people use of their in-store demo devices; sent out Mobile trucks to affected areas (no other carrier did that); loaned out phones to FEMA - all cell phones in use at FEMA DRC's were Verizon flip phones!! How's that for accuracy?!
16. threed61 (Posts: 193; Member since: 27 May 2011)
Ok JP, welcome to the corporate states of America. If hating Verizon makes you feel better, by all means indulge! Or pour that anger into activism. There are numerous groups that are working to cut cell rates, give them your time and/or money. I'm still pretty sure Verizon didn't force you to use their service, and a real rape victim would be happy to trade problems with you. Activism does work by the way, it helped stop AT&T from buying out T-Mobile, and AT&T has one of the best lobbying machines in America.
17. suneeboy (Posts: 201; Member since: 02 Oct 2012)
Don't understand how so many people have Verizon. It is super expensive. Matter of fact, I don't know how so many people can still be willing to sign a 2-year contract.