Verizon Wireless Adds Customers in Q4 2010, Increases Revenues

Mobile phone carrier Verizon Wireless has just announced its financial results for the fourth quarter of the last year, and posted increases in services and data revenues, along with 30.1 percent operating income margin, amid an increase of customers base by 803,000 new total retail customers.

According to the wireless carrier, the fourth quarter of the last year marked 7.7 percent increase in service revenues when compared to the same quarter a year before, along with 25.5 percent growth in data revenues.

For the time frame, the company also announced 47.5 percent Segment EBITDA margin on service revenues, and a number of 94.1 million customers at the end of the fourth quarter.

The carrier also announced that 26 percent of Verizon Wireless' retail postpaid customer base had a smartphone at the end of the last year. Over 75 percent of Verizon Wireless' postpaid net adds in the fourth quarter of the year were smartphones.

Other highlights from the company's announcements include:

- Retail postpaid churn remained low at 1.01 percent. Total retail and total customer churn levels were 1.37 and 1.34 percent, respectively. All churn levels improved year over year and sequentially.

- Retail service revenues in the quarter totaled $13.5 billion, up 5.1 percent year over year. Retail data revenues were $5.0 billion, up 22.8 percent year over year. Service revenues in the fourth quarter were $14.2 billion, up 7.7 percent year over year.

- Total revenues were $16.1 billion, up 5.7 percent year over year. For full-year 2010, service revenues were $55.6 billion, up 6.9 percent over full-year 2009; total revenues were $63.4 billion, up 5.1 percent year over year.

Retail postpaid ARPU for the quarter was of $53.50, up 2.5 percent when compared to the fourth quarter of 2009. Retail postpaid data ARPU was of $19.97, marking an increase of 19.3 percent from the year before.

For the time frame, the carrier announced operating income margin was 30.1 percent, which marks an increase of 340 basis points on an year over year basis.

“Verizon ended 2010 with strong results, driven by solid execution across all our businesses,” said Verizon Chairman and CEO Ivan Seidenberg.

“The fourth quarter capped a strong second half of the year, resulting in improved earnings, solid momentum and an even stronger balance sheet.

“Verizon Wireless produced another quarter of impressive growth, with record-high profitability, as we continue to drive higher smartphone adoption and data use. Following another solid quarter in our wireline businesses, we are optimistic about opportunities to continue to expand wireline margins.”