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Last Update: 21-Oct-11 10:17 ET
Verizon Reports In-line Quarter; Reaffirms Fiscal Year 2011 Guidance
Verizon (VZ $36.90 -0.20) reported third quarter earnings of $0.56 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate consensus of $0.56.
Revenues rose 5.4% year/year to $27.91 billion versus the $27.89 billion consensus.
For fiscal year 2011, the company reaffirmed earnings guidance of +5-8% to approx. $2.18 to $2.25 versus the $2.21 Capital IQ Consensus Estimate, with comp revenue +4-8%, not comparable to +3.9% as reported rev growth consensus.
Wireless: Service revenues in third-quarter 2011 totaled $15.0 bln, up 6.1% year/year. Data revenues were $6.1 billion, up more than $1.0 billion or 20.5% year over year, and represent 40.6% of all service revenues. Total revenues were $17.7 billion, up 9.1% YoY. Retail postpaid ARPU grew 2.4% YoY, to $54.89. Retail postpaid data ARPU increased to $22.22, up 15.7% year over year. Retail service ARPU also grew 2.4%, to $53.21.
Verizon Wireless added 1.3 mln total connections in third-quarter 2011, including 882,000 retail postpaid customers, and 367,000 wholesale and other connections. These additions exclude acquisitions and adjustments. At the end of the third quarter, the company had 107.7 million total connections, an increase of 6.5% year over year, consisting of 90.7 million retail customers and 17.0 mln wholesale and other connections.
At the end of the third quarter, smartphones accounted for 39% of the Verizon Wireless retail postpaid customer phone base, up from 36 percent at the end of second-quarter 2011. Retail postpaid churn was 0.94 percent in third-quarter 2011, an improvement of 13 bps year/year. Total retail churn was 1.26 percent, an improvement of 17 bps year/year.
Revenues rose 5.4% year/year to $27.91 billion versus the $27.89 billion consensus.
For fiscal year 2011, the company reaffirmed earnings guidance of +5-8% to approx. $2.18 to $2.25 versus the $2.21 Capital IQ Consensus Estimate, with comp revenue +4-8%, not comparable to +3.9% as reported rev growth consensus.
Wireless: Service revenues in third-quarter 2011 totaled $15.0 bln, up 6.1% year/year. Data revenues were $6.1 billion, up more than $1.0 billion or 20.5% year over year, and represent 40.6% of all service revenues. Total revenues were $17.7 billion, up 9.1% YoY. Retail postpaid ARPU grew 2.4% YoY, to $54.89. Retail postpaid data ARPU increased to $22.22, up 15.7% year over year. Retail service ARPU also grew 2.4%, to $53.21.
Verizon Wireless added 1.3 mln total connections in third-quarter 2011, including 882,000 retail postpaid customers, and 367,000 wholesale and other connections. These additions exclude acquisitions and adjustments. At the end of the third quarter, the company had 107.7 million total connections, an increase of 6.5% year over year, consisting of 90.7 million retail customers and 17.0 mln wholesale and other connections.
At the end of the third quarter, smartphones accounted for 39% of the Verizon Wireless retail postpaid customer phone base, up from 36 percent at the end of second-quarter 2011. Retail postpaid churn was 0.94 percent in third-quarter 2011, an improvement of 13 bps year/year. Total retail churn was 1.26 percent, an improvement of 17 bps year/year.
