Despite record number of smartphone activations, Verizon loses $1.93 billion in Q4

Posted: 22 Jan 2013, 06:34, by Alan F.

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Despite record number of smartphone activations, Verizon loses $1.93 billion in Q4

It cost Verizon money to roll out its mobile trucks in aftermath of Hurricane Sandy

Despite adding 2.1 million post-paid subscribers in the fourth quarter, as previously announced, and activating a record number of smartphones, Verizon Communications reported a $1.93 billion loss for the period. That works out to a loss of $1.48 for the quarter vs. a loss of 71 cents a share in the year ago period. But most of that red ink was spilled as a result of one-time charges such as pension costs and money spent to keep cell towers running in the wake of Hurricane Sandy. Removing the one time charges results in a profit of 45 cents a share for Verizon, but that figure still failed to meet Wall Street expectations of 52 cents a share. Revenue rose 4.5% to $30 billion, topping forecasts of $29.8 billion.

Other figures cited by Verizon for the quarter include low retail post-paid churn of .95%. Verizon now has 92.5 million post-paid accounts and a total of 98.2 million retail customers. The carrier's LTE signal blankets 273 million people in 476 markets. That places Verizon on top of the charts as the largest U.S. carrier and the carrier covering the most markets with LTE.

"We delivered a total return of 13.2 percent to shareholders in 2012, and we enter 2013 ready to accelerate the momentum we’ve achieved and create significant shareholder value in the years to come."-Lowell McAdam, Verizon CEO

It should be noted that the earnings numbers are for the entire company which includes Verizon's non-wireless operations such as cable television
source: Verizon via BGR

6 Comments

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posted on 22 Jan 2013, 07:48 6

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.

posted on 22 Jan 2013, 08:05 1

2. Alan01 (Posts: 439; 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.

Regards,
Alan F.

posted on 22 Jan 2013, 13:36 5

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?!

posted on 22 Jan 2013, 20:24

12. corporateJP (Posts: 2458; Member since: 28 Nov 2009)

Kool-Aid.

posted on 22 Jan 2013, 23:31

16. threed61 (Posts: 244; 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.

posted on 24 Jan 2013, 22:09

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.