Summary
Verizon Communications Inc. reported its third-quarter and year-to-date results for 2009. The company experienced a notable increase in consolidated revenues, largely driven by the acquisition of Alltel Corporation, which significantly boosted the Domestic Wireless segment's performance. This acquisition contributed to substantial revenue growth and an increase in total wireless customers. However, the Wireline segment continued to face challenges, with declining revenues attributed to losses in traditional voice services, though growth in broadband and FiOS services provided some offset. The company also incurred significant merger integration and acquisition costs, as well as pension settlement losses, which impacted profitability. Despite these one-time charges and ongoing economic pressures affecting the Wireline segment, Verizon's operating income for the Domestic Wireless segment saw a strong increase. The company remains focused on strategic imperatives of revenue growth, market share gains, and operational efficiency across its segments, while managing its debt and capital structure.
Financial Highlights
50 data points| Revenue | $27.27B |
| Cost of Revenue | $11.00B |
| Gross Profit | $16.27B |
| SG&A Expenses | $8.11B |
| Operating Expenses | $23.28B |
| Operating Income | $3.82B |
| Interest Expense | $704.00M |
| Net Income | $1.10B |
| EPS (Basic) | $0.39 |
| EPS (Diluted) | $0.39 |
| Shares Outstanding (Basic) | 2.84B |
| Shares Outstanding (Diluted) | 2.84B |
Key Highlights
- 1Consolidated revenues increased by 10.2% for the three months and 11.0% for the nine months ended September 30, 2009, primarily due to the acquisition of Alltel.
- 2Domestic Wireless segment revenue grew by 24.4% (quarterly) and 27.2% (nine months), driven by the Alltel acquisition, resulting in a total of 89.0 million customers.
- 3Wireline segment revenues declined by 4.8% (quarterly) and 4.6% (nine months) due to decreases in traditional voice services, though FiOS Internet and TV subscribers saw significant growth (49.2% and 67.7% year-over-year, respectively).
- 4Net income attributable to Verizon decreased to $1.176 billion for the quarter ($4.304 billion for nine months) compared to $1.669 billion ($5.193 billion for nine months) in the prior year, impacted by non-recurring charges and acquisition costs.
- 5Operating income for the Domestic Wireless segment increased by 29.1% (quarterly) and 29.7% (nine months), while the Wireline segment's operating income decreased by 57.6% (quarterly) and 46.3% (nine months).
- 6Net cash provided by operating activities increased to $23.118 billion for the nine months ended September 30, 2009, from $19.934 billion in the prior year, largely due to improved wireless operations.
- 7The company reported significant merger integration and acquisition costs, as well as pension settlement losses, totaling $277 million and $961 million pretax for the quarter and nine months respectively, primarily related to the Alltel acquisition.