Verizon Q4 earnings are short of expectations; carrier expects explosive growth ahead
While the company did not breakdown earnings for the wireless division, mobile revenue grew 5.7 year-over-year to $16.1 billion in the quarter, with total service revenue up 7.7%. Verizon executive VP and CFO Francis Shammo said, "While we've made rapid progress in a relatively short period of time, adding 9.3 million smartphone customers this year and substantially increasing data ARPU (Average Revenue Per User), we strongly believe both connections and data ARPU growth could really explode over the next several years with proliferation of 4G LTE devices and the iPhone opportunity,"
Verizon's top brass said that 11 million Apple iPhone units will be sold in 2011 by Big Red, which might be a conservative number. The mobile operator is looking to nearly double the number of its contract customers using smartphones from the present 26% to 50% by the end of this year. That 26% figure is well behind the carrier's three other main rivals, AT&T, Sprint and T-Mobile. All of the latter three carriers have closer to 40% of their contract accounts using smartphones.
During its first month of availability, Verizon's LTE laptop modem sold 65,000 units. The carrier's COO, Lowell McAdam, said that Verizon would focus on promoting its 4G network. Another area of growth would appear to be tablets. During Q4, the carrier sold 86,000 Apple iPads and Samsung Galaxy Tab tablets and soon will be offering the highly anticipated dual-core processing, Honeycomb flavored Motorola XOOM. How soon is unknown, but as we reported, Best Buy plans on launching the device on February 17th.
The nation's largest carrier now has 94.1 million customers with 88% of them being post-paid contract subscribers. These are the accounts analysts like to see grow because the monthly invoices tend to be larger than for other wireless users..
source: NYTimes via AppleInsider
1. jcoberg10 (Posts: 110; Member since: 30 Oct 2009)
wow carrier earnings are short of expectations? 1 Cent!! glass 3/4 empty or what?
8. XxVerbalxX (unregistered)
i cent per share of stock....thats a butt ton of money
2. Slammer (Posts: 1395; Member since: 03 Jun 2010)
I wholly expect Sprint will eventually prevail in attracting attention for consumer's appetite for broadband data use. No one will be able to deliver the internet and functions of data as inexpensive as Sprint will be able to do. No one!
3. MalakiMills (Posts: 256; Member since: 15 Jun 2010)
Well that's not true, If Sprint does get just as big as Verizon or At&t they wouldn't keep the same pricing as they have now. The contract for sprint even says that those are promotional prices and that they are subject to change, they have just kept this pricing scale because they have yet to grow as big as they want, but as soon as they do you better believe that those promotional prices will go up, I'm not saying to the same prices of the other two, but up that's for sure.
4. Slammer (Posts: 1395; Member since: 03 Jun 2010)
I will not deny your great points. However, how much spectrum a carrier has, can greatly decrease the strain and load of the carriers network thus curbing expenses. There is no doubt that the higher frequency in which Sprint's 4G network will require more energy to deliver, but the amount of spectrum they hold greatly offsets the disadvantage. If all the carriers were equal in size, Sprint would still be able to deliver data cheaper than the other carriers. This is very attractive in what is the future of communications. Sprint has committed to unlimited data. They truly are in a position to deliver on that promise. Let's hope they hold their promise.
5. ILikeBubbles (Posts: 412; Member since: 17 Jan 2011)
From what i heard Sprint IS quite epic but only really effective on the West Coast, so... perception is everything?
6. newfdog 13 (Posts: 64; Member since: 06 Mar 2010)
Translation for non-stock owners/Verizon Customers: Get ready to bend over and take it hard because we gotta ram you hard for our shareholders. Up goes the fees/rates!
7. sln1021 (Posts: 3; Member since: 11 Jan 2010)
FYI: Verizon Wireless does not trade stock. Verizon Communications ( a landline company) does. They own part of Verizon Wireless, the rest of VZW is owned by Vodafone, so no stock owners b/c it is a privately held company, not publicly traded.
9. XxVerbalxX (unregistered)
....but their sales figures are public, and they are owned by public companies who have to divulge their finances to stockholders, wouldnt that kinda of make them public by proxy? i mean verizon wireless's sales effect verizon communications bottom line so if vzw does well wouldnt vz stock go up or down accordingly depending on their other ventures? i dont know too much about the market but even if vzw doesnt trade stock directly it still factors into the price of vz stocks. i guess what im trying to ask but missing the words for is do any companies who are already public sell stocks for seperate parts of their company as well as their own? jus curious and lookin for info/clarification