Verizon revenue up on mobile, broadband growth

Mobile data revenue up more than 21 percent compared to the first quarter of 2011, the company says

Verizon Communications posted revenue and net income gains for the first quarter of 2012, with mobile and broadband customer additions driving the numbers.

Verizon on Thursday reported revenue of US$28.2 billion for the first quarter, up 4.6 percent from the first quarter of 2011. Net income was $3.9 billion, up 19.7 percent, with $1.7 billion of the net income attributable to Verizon, and the rest to Verizon Wireless partner Vodafone. Net income attributable to Verizon was up 17.2 percent from a year ago.

Verizon reported a 21.1 percent increase in mobile data revenue, compared to the first quarter of 2011 and an increase of 734,000 retail mobile customers during the quarter. The company also reported additions of 193,000 Fios broadband customers and 180,000 Fios television customers.

Verizon Wireless produced "both great growth and great margins," Lowell McAdam, Verizon chairman and CEO, said in a statement.

Earnings per share for Verizon's cut of the net income was $0.59, beating analyst estimates of $0.58.

The company's mobile service revenue was $15.4 billion for the quarter, up 7.7 percent from the first quarter of 2011. Mobile data revenue was $6.6 billion. Forty-seven percent of Verizon's mobile customers have smartphone plans, up from 43.5 percent at the end of the fourth quarter of 2011.

At the end of the quarter, Verizon had 93 million mobile retail customers, up 5.2 percent from a year ago.

During a conference call, Fran Shammo, Verizon's executive vice president and CFO, detailed Verizon's plans, announced Thursday, to sell 24MHz of spectrum in the lower 700MHz block if federal regulators approve the company's request to buy other spectrum from a group of cable providers.

The proposed sale of the A and B blocks of the 700MHz band isn't the result of a "roadblock" at the U.S. Federal Communications Commission on Verizon's deal with the cable firms, Shammo said. The cable spectrum fits better with Verizon's C block holdings in the 700MHz band for providing 4G LTE service, he said.

"We think it's the prudent thing to do to sell these licenses off to the rest of the industry for the benefit of their customers and to enhance their ability to build out 4G LTE," Shammo said. "We would say we're being good stewards."

Shammo disputed reports that Verizon was conducting a spectrum "fire sale." Verizon will only sell the A and B blocks if it gets the price it wants, he said. "We would be prudent to our shareholders to make sure we get a return on the investment," he said.

In Verizon's wireline division, revenue was $9.9 billion for the first quarter, down 2 percent from a year earlier. But Verizon officials pointed to Fios customer growth as a positive sign. Verizon added a net 104,000 broadband customers during the quarter, bringing its total number of broadband customers to 8.8 million. Fios broadband customers totalled 5 million.

Grant Gross covers technology and telecom policy in the U.S. government for The IDG News Service. Follow Grant on Twitter at GrantGross. Grant's e-mail address is grant_gross@idg.com.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Grant Gross

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?