14 DAY TRIAL // Verizon Communications, the United States-based wireless provider, has recently announced that its fourth-quarter profits have risen, although the number of its wireless subscribers has seen a slow growth, while landline subscribers are reported to keep on shutting down accounts. The company posted a profit of $1.2 billion during the quarter, higher than the $1.1 billion a year before, and announced sales of $24.6 billion, up from the $23.8 billion the previous year.
The joint venture with Vodafone, Verizon Wireless, has registered 1.4 million organic net customer additions, most of which retail. At the same time, it also recorded 1.2 million total net customer additions, which also includes a net customer loss related to the acquisition of Rural Cellular in the third quarter of the year. The carrier totals 72.1 million customers, 70.0 million of them being retail customers, a 9.9-percent rise, aside from those added through the purchase of Alltel on January 9, 2009.
Verizon Wireless also announced a 1.35-percent churn among all customers, along with a 1.05-percent churn among its retail post-paid customers. In addition, the company posted a 12.3-percent increase in total revenues, while data revenues went up 41.4 percent. This was the 11th consecutive quarter in which it registered ARPU growth, while the EBITDA margin on service revenues was 47.2 percent.
“Verizon has shown that it is able to compete effectively in this economic environment,” said Chairman and CEO Ivan Seidenberg. “We grew profits and maintained strong cash flows throughout 2008. In the fourth quarter, we continued to produce top-line growth, fueled by strong sales volumes for broadband, wireless and strategic business services.”
For the entire year, the company announced annual operating revenues of $97.4 billion, registering a 4.2-percent growth compared to 2007 on a reported basis, as well as a 5.1-percent increase on an adjusted basis. Verizon reported operating expenses of $80.5 billion in 2008, up from 2007 – 3.3 percent on a reported basis and 4.2 percent on an adjusted basis.