Summary
Verizon Communications Inc. reported stable operating revenues for the first quarter of 2011, with a slight increase of 0.3% year-over-year to $26.99 billion. This stability was primarily driven by strong performance in the Domestic Wireless segment, which saw a 10.2% increase in total operating revenue, boosted by higher service and equipment sales, particularly in data services and smartphone sales. The Wireline segment experienced a 2.2% revenue decline, largely due to decreases in Global Wholesale revenues, although Mass Markets and Global Enterprise showed modest growth. Net income available to common shareholders significantly increased to $1.439 billion ($0.51 per share) from $443 million ($0.16 per share) in the prior year, partly due to a significant decrease in the provision for income taxes. The company also demonstrated robust operating cash flow of $5.035 billion, although this was lower than the prior year. Capital expenditures remained substantial at $4.363 billion, primarily for wireless network expansion, including the 4G LTE build-out.
Financial Highlights
51 data points| Revenue | $26.99B |
| Cost of Revenue | $11.23B |
| Gross Profit | $15.76B |
| SG&A Expenses | $7.28B |
| Operating Expenses | $22.54B |
| Operating Income | $4.45B |
| Interest Expense | $709.00M |
| Net Income | $1.44B |
| EPS (Basic) | $0.51 |
| EPS (Diluted) | $0.51 |
| Shares Outstanding (Basic) | 2.83B |
| Shares Outstanding (Diluted) | 2.83B |
Key Highlights
- 1Operating revenues remained steady at $26.99 billion, a marginal 0.3% increase year-over-year.
- 2Domestic Wireless revenue surged by 10.2% to $16.88 billion, driven by strong growth in service and equipment sales, with data revenue representing 38.1% of service revenue.
- 3Wireline segment revenue declined by 2.2% to $10.15 billion, impacted by decreased Global Wholesale revenues, though Mass Markets and Global Enterprise saw growth.
- 4Net income attributable to Verizon common shareholders significantly increased to $1.439 billion ($0.51 per share) from $443 million ($0.16 per share) in Q1 2010.
- 5The provision for income taxes decreased substantially from $1.622 billion to $617 million, contributing to the rise in net income.
- 6Operating cash flow was $5.035 billion, a decrease from $7.084 billion in the prior year, but still demonstrating strong cash generation.
- 7Capital expenditures were $4.363 billion, a notable increase from $3.423 billion in the prior year, reflecting continued investment in network build-out, especially 4G LTE.