Summary
Verizon Communications Inc. reported its fiscal year ended December 31, 2012, highlighting its robust performance driven by its two primary segments: Verizon Wireless and Wireline. The company, a leader in communications, information, and entertainment services, maintained a strong market position, particularly within its wireless division, which accounted for approximately 66% of total revenues. Verizon Wireless demonstrated significant growth, fueled by its extensive 4G LTE network coverage and the introduction of innovative data-sharing plans like 'Share Everything.' The segment's focus on network reliability and expansion, including investments in advanced technologies, positions it well for continued data traffic growth. The Wireline segment, while a smaller contributor to overall revenue, showcased advancements in its FiOS offerings for consumers and a comprehensive suite of enterprise solutions, including cloud and security services, underscoring Verizon's strategy to be a full-service provider across multiple platforms.
Financial Highlights
53 data points| Revenue | $115.85B |
| Cost of Revenue | $46.27B |
| Gross Profit | $69.57B |
| SG&A Expenses | $39.95B |
| Operating Expenses | $102.69B |
| Operating Income | $13.16B |
| Interest Expense | $2.57B |
| Net Income | $875.00M |
| EPS (Basic) | $0.31 |
| EPS (Diluted) | $0.31 |
| Shares Outstanding (Basic) | 2.85B |
| Shares Outstanding (Diluted) | 2.86B |
Key Highlights
- 1Verizon Wireless is the largest wireless service provider in the U.S. by retail connections and revenue, with 98.2 million retail connections and $75.9 billion in revenue for 2012 (66% of total revenue).
- 2The company's 4G LTE network covered nearly 89% of the U.S. population by year-end 2012, with plans to expand coverage further in 2013.
- 3Verizon Wireless launched 'Share Everything' plans, which accounted for approximately 23% of its retail postpaid accounts by the end of 2012, offering shared data allowances across multiple devices.
- 4The Wireline segment generated $39.8 billion in revenue (34% of total revenue), with Mass Markets, Global Enterprise, and Global Wholesale as its key sub-segments.
- 5Verizon continued to invest in its FiOS network, passing over 17.6 million homes with speeds up to 300 Mbps, and expanded its global IP network with 100G technology deployments.
- 6The company completed strategic acquisitions, including HUGHES Telematics for its telematics offerings and Terremark for cloud services, to bolster its enterprise solutions.
- 7Verizon is actively managing its spectrum portfolio, engaging in acquisitions, exchanges, and sales, such as the agreement to sell 700 MHz B block licenses to AT&T.