Summary
Verizon Communications Inc. (VZ) filed its annual report for the fiscal year ended December 31, 2010, on February 27, 2011. The report highlights a strong operational year, with the company continuing to invest heavily in its network infrastructure, particularly in the rollout of its 4G LTE technology. This strategic investment is aimed at enhancing data services and maintaining its competitive edge in the rapidly evolving telecommunications market. Financially, Verizon reported significant revenues driven by its two primary segments: Domestic Wireless and Wireline. The Domestic Wireless segment, largely driven by Verizon Wireless, represented the larger portion of revenues, showcasing robust demand for wireless voice and data services. The Wireline segment, encompassing broadband, video, and enterprise services, also contributed substantially, with a strategic focus on expanding its fiber-optic FiOS services and cloud-based enterprise solutions. The company's ongoing efforts to diversify its revenue streams and enhance its service offerings position it for continued growth and market leadership.
Financial Highlights
51 data points| Revenue | $106.56B |
| Cost of Revenue | $44.15B |
| Gross Profit | $62.42B |
| SG&A Expenses | $31.37B |
| Operating Expenses | $91.92B |
| Operating Income | $14.64B |
| Interest Expense | $2.52B |
| Net Income | $2.55B |
| EPS (Basic) | $0.90 |
| EPS (Diluted) | $0.90 |
| Shares Outstanding (Basic) | 2.83B |
| Shares Outstanding (Diluted) | 2.83B |
Key Highlights
- 1Verizon's Domestic Wireless segment generated $63.4 billion in revenue, accounting for approximately 60% of total company revenue, underscoring the strength of its wireless operations.
- 2The company is aggressively deploying its 4G LTE network, having launched in 38 major metropolitan areas by the end of 2010, with plans for significant expansion in 2011 and 2013.
- 3The Wireline segment generated $41.2 billion in revenue, with a strategic focus on expanding its high-speed FiOS Internet and FiOS TV services, and on growing its Global Enterprise business.
- 4Verizon completed the spin-off of certain rural landline assets and merged them with Frontier Communications, further sharpening its focus on its high-growth FiOS business.
- 5The company is actively pursuing strategic acquisitions, announcing its intent to acquire Terremark Worldwide, Inc. for approximately $1.4 billion to enhance its IT infrastructure and cloud services offerings for enterprise and government clients.
- 6Verizon continued to emphasize customer service and retention as key differentiators in both its wireless and wireline businesses, implementing various programs to enhance customer satisfaction and reduce churn.
- 7The company faces significant competition across both its wireless and wireline segments from established players and emerging technologies, necessitating continuous investment in network upgrades and service innovation.