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With 86.6 million customers thanks to the Alltel Wireless acquisition Verizon Wireless has reported its 1Q 2009 results. Operating Revenues were down 3.8 percent compared with the first quarter of 2008, but the good news is retail customers represent 97 percent of the company’s base. The addition of the BlackBerry Storm to the carrier’s lineup helped boost data revenues 23.0 percent and now represent 28.0 percent of all service revenues. 2010 will be a big year for Verizon Wireless with February’s announcement that Ericsson and Alcatel-Lucent will be vendors to supply the infrastructure for commercial LTE-based services. Sprint might have started their 4G WiMax rollout ahead of the pack, but Verizon and At&t’s LTE networks will be right behind. Below is a breakdown of the highlights from 1Q 2009.
Consolidated Results
- 58 cents in EPS and 63 cents in adjusted EPS (non-GAAP), compared with 1Q 2008 EPS of 57 cents and 61 cents, respectively.
- $6.4 billion in cash flows from operations, up $1.0 billion, or 19.1 percent, year over year.
- Capital expenditures totaled $3.7 billion; free cash flow totaled $2.7 billion, up $1.5 billion.
Wireless
- 86.6 million total customers, up 28.8 percent; 84.1 million retail customers, up 29.0 percent; 1.3 million net customer additions, excluding acquisitions and adjustments, almost all retail.
- 29.6 percent increase in total revenues; industry-leading retail postpaid churn, 1.14 percent; data revenues up 56.2 percent; 28.2 percent operating income margin and 46.0 percent EBITDA margin on service revenues (non-GAAP).
- Integration of Alltel operations on schedule.
Wireline
- 299,000 net new FiOS TV customers and a record 298,000 net new FiOS Internet customers, for a total of 2.2 million FiOS TV customers and 2.8 million FiOS Internet customers.
- 13.7 percent increase in consumer ARPU.
- 7.5 percent increase in strategic business services revenues.
For a the full 1Q Verizon Wireless Report click here.
