Summary
Verizon Communications Inc. reported significant revenue growth for the year ended December 31, 2001, with operating revenues reaching $67.19 billion, an increase from the previous year. However, net income available to common shareholders saw a substantial decrease, falling to $389 million from $11.79 billion in 2000. This decline was heavily influenced by "special items," including substantial losses on investments in companies like Genuity, Cable & Wireless, and NTL, along with significant merger transition costs and severance charges. The Domestic Wireless segment demonstrated strong revenue growth, driven by customer additions. Conversely, the Domestic Telecom segment experienced a slight revenue decline due to economic pressures and mandated price reductions, although data transport and long-distance services showed resilience. The company's financial position shows total assets of $170.8 billion and long-term debt of $45.7 billion.
Key Highlights
- 1Operating revenues increased by 3.8% to $67.19 billion in 2001.
- 2Net income available to common shareholders significantly decreased to $389 million in 2001, down from $11.79 billion in 2000.
- 3Domestic Wireless segment revenue grew by 22.2% in 2001, driven by a nearly 10% increase in its customer base.
- 4Domestic Telecom segment revenues saw a slight decrease of 0.6% in 2001, impacted by economic slowdown and regulatory price reductions.
- 5The company incurred substantial special charges in 2001, including $4.69 billion in losses on investments and $1.6 billion in severance and pension enhancement costs.
- 6Total assets grew to $170.8 billion, while long-term debt increased to $45.7 billion at the end of 2001.
- 7Cash flow from operating activities increased to $19.77 billion in 2001.