Summary
Verizon Communications Inc.'s 2010 10-K filing for the year ended December 31, 2009, highlights the company's strong position in the telecommunications industry, particularly in its Domestic Wireless segment, which accounted for approximately 58% of total revenues. The acquisition of Alltel in January 2009 significantly bolstered Verizon Wireless's market leadership, making it the largest wireless provider in the U.S. by customer count and revenue. The company is actively integrating this acquisition, realizing cost savings, and divesting overlapping properties as required by regulators. The Wireline segment, while a smaller contributor to revenue (approximately 43%), is undergoing strategic changes, including the planned spin-off and merger of certain landline assets with Frontier Communications, expected to close in Q2 2010. Verizon is also investing heavily in network infrastructure, including the development and planned 2010 launch of its 4G LTE wireless broadband network and continued expansion of its fiber-optic FiOS network for wireline customers. Verizon emphasizes its commitment to network reliability, customer service, and product innovation across both segments. The company faces intense competition from traditional and emerging players, and its future performance will depend on its ability to adapt to technological advancements, manage regulatory environments, and effectively integrate its operations and capitalize on growth opportunities in data services and next-generation technologies.
Financial Highlights
54 data points| Revenue | $107.81B |
| Cost of Revenue | $44.58B |
| Gross Profit | $63.23B |
| SG&A Expenses | $30.72B |
| Operating Expenses | $91.83B |
| Operating Income | $15.98B |
| Interest Expense | $3.10B |
| Net Income | $4.89B |
| EPS (Basic) | $1.72 |
| EPS (Diluted) | $1.72 |
| Shares Outstanding (Basic) | 2.84B |
| Shares Outstanding (Diluted) | 2.84B |
Key Highlights
- 1Completed the acquisition of Alltel in January 2009, solidifying Verizon Wireless's position as the largest U.S. wireless provider by customer count and revenue.
- 2Actively integrating the Alltel acquisition, achieving cost savings and operational efficiencies, while divesting overlapping assets in specific markets.
- 3Announced plans to spin off certain wireline assets to form a new subsidiary, which will then merge with Frontier Communications, expected to close in Q2 2010.
- 4Investing in and preparing for the 2010 launch of its 4G LTE wireless broadband network, aiming for broad coverage by 2013.
- 5Expanding its fiber-optic network (FiOS) for wireline customers, offering high-speed Internet, broadband video, and interactive services.
- 6Focusing on enhancing network reliability, customer service, and developing innovative data and multimedia services to drive revenue growth.
- 7Facing significant competition across both wireless and wireline segments, necessitating continuous adaptation to new technologies and market dynamics.