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Verizon outs Q3 results, revenue from data now 36% of total services

Posted: , by Daniel P.

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Verizon outs Q3 results, revenue from data now 36% of total services
Big Red announced its results for the third quarter, cash flow growth has been stronger thanks to expansion in wireless and FiOS services. Earnings per share were 31c for the quarter, which is less than in Q3 of last year, but Verizon had big non-cash pension settlements due to the layoffs and restructuring going on. This is good in the longer run, as more money will be freed up for investments such as Big Red's 4G network buildup. The carrier plans to have finished all investments in its LTE infrastructure by the end of 2013 - by then your 3G phones will be morally tired anyway.

An interesting take is the increase in the percentage of revenue brought on by data services. Verizon reports that 35.7% of all service revenues are now coming from providing data, a twenty percent increase compared to the same period in 2009. Cash flow from operations totaled $8.3 billion just in the third quarter, and there was a nice boost in FiOS subscribers. The increase in data-related revenues stands to show that voice will keep diminishing in importance for mobile carriers, for the sake of data charges.

Verizon also boasts being an industry leader in cost per customer - the monthly cash expense per head was just $26.88 in the third quarter.

source: Verizon


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posted on 22 Oct 2010, 13:37

1. bbonline (unregistered)


This article does not mention one important point. Verizon only added about 800,000 new customers to its total. This only puts them about 400,000-500,000 customers ahead of AT&T. The battle for number one is getting red hot! It looks like AT&T might regain the number one title this 4th quarter. I can almost guarantee it.

posted on 23 Oct 2010, 22:15 2

8. lgchocolate (Posts: 2; Member since: 03 Oct 2010)


Its actually inaccurate cause they report differently. Verizon does not count they're prepaid customer base. They only count they're post paid. ATT counts both as one.

Verizon reported total: postpaid: 93.2M +7.9M Prepaid= 101.1M
ATT reported postpaid and prepaid combined of: 92.8M.

So 400-500k shy of each other? Sure. If you don't count Verizon's prepaid.

I don't want to hear about how Verizon bought Alltel, cause Cingular did the same thing to ATT back when it was really ATT. Which is now ATT again. Go figure.

posted on 22 Oct 2010, 13:47 2

2. Unregistered (unregistered)


Thats pretty funny. Have you seen the estimates for what's going to happen to AT&T when (not if) the CDMA iPHONE is released? It is estimated that upwards of 10 million AT&T subscribers will switch service over to Verizon when that phone launches. Who's gonna be counting customers then?

posted on 22 Oct 2010, 14:13

3. bbonline (unregistered)


I highly doubt that is going to happen all at once. Do you know why? Because all those people are under contracts already. It will be very hard for them to have to break contracts and pay upwards to $325 just to move to another carrier, especially if the iPhone is the same as the one they already have. If it was an LTE iPhone, then I could see more contracts broken. If this is going to happen (10 million), it's not going to happen all in a month or two. I can almost guarantee it.

posted on 22 Oct 2010, 16:16

4. unregistered (unregistered)


bbonline you can almost guarantee everything it looks like!!!

posted on 22 Oct 2010, 16:42 1

5. guest (unregistered)


bbonline i love how you are even comparing ATT to VZW in terms of service and reception

posted on 22 Oct 2010, 18:59 1

6. sjung (Posts: 15; Member since: 22 Oct 2010)


bbonline,

whether they are under contracts or not, they WILL LEAVE once the beauty lands on Big Red network. I mean, come on! It's Verizon!

posted on 22 Oct 2010, 19:22

7. bbonline (unregistered)


I have not mentioned anything regarding service and reception. That's another 20 bucks.

My original statement is that AT&T will likely regain the number one title in terms of number of subscribers in the 4th quarter, based on the trends we're seeing.

Some people will likely leave. Of course! Verizon is recognized as having a very good network, but there's also quite a bit of hype involved. The iPhone hasn't been tested in those waters.

In any case, we will see. It will be VERY interesting, to say the least.

As of right now, it's ALL rumors...

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