Verizon Reports Double-Digit Earnings Growth in 2Q 2013 Strategic Investments in 4G LTE, FiOS and Global Networks Continue to Drive Strong Growth in Revenues, Earnings and Cash Flow

NEW YORK, July 18, 2013 /PRNewswire/ --

2Q 2013 HIGHLIGHTS

Consolidated

  • 78 cents in earnings per share (EPS), including a non-operational gain of 5 cents per share related to pensions, compared with 64 cents per share in 2Q 2012.
  • 73 cents in adjusted EPS (non-GAAP), a 14.1 percent increase compared with 2Q 2012.

Wireless

  • 8.3 percent year-over-year increase in service revenues in 2Q 2013; 7.8 percent increase in retail service revenues; 32.4 percent operating income margin and 49.8 percent segment EBITDA margin on service revenues (non-GAAP).
  • 941,000 retail postpaid net additions, up 6 percent year over year; low retail postpaid churn of 0.93 percent; 100.1 million total retail connections, 94.3 million total retail postpaid connections.
  • 4G LTE service now available to 301 million people in 500 markets across the U.S.

Wireline

  • 4.7 percent year-over-year increase in consumer revenues; consumer ARPU (average revenue per user) up 9.4 percent year over year, to $109.67.
  • 14.7 percent year-over-year increase in FiOS revenues; 161,000 FiOS Internet and 140,000 FiOS Video net additions, including the addition of the 5 millionth FiOS Video customer, with continued increased sales penetration for both services.
  • 4.8 percent year-over-year increase in revenues for global enterprise strategic services.

Verizon Communications Inc. (NYSE, Nasdaq: VZ) today reported year-over-year double-digit percentage growth in operating income and earnings per share, as second-quarter 2013 results showed continued strong operating performance and customer demand for Verizon Wireless, FiOS and strategic enterprise services.

Verizon reported 78 cents in EPS in second-quarter 2013, compared with 64 cents per share in second-quarter 2012.  Second-quarter 2013 results include a non-cash, non-operational gain of 5 cents per share for an interim actuarial remeasurement associated with one of Verizon's pension plans.

Adjusted second-quarter 2013 earnings of 73 cents per share increased 14.1 percent, compared with 64 cents per share in second-quarter 2012, when there were no adjustments.

"Verizon's consistent strategic investments in wireless, FiOS and global networks drove strong financial performance in the first half of 2013," said Lowell McAdam, Verizon chairman and CEO.  "Having posted double-digit earnings growth in five of the last six quarters, we are focused on continuing to provide the best portfolio of products on the most reliable networks; capturing incremental revenue growth in broadband, video and cloud services; and sustaining our earnings and cash-flow momentum."

Consolidated Results Reflect Continued Profitable Growth

In second-quarter 2013, Verizon's consolidated results were highlighted by continued strong operating performance and profitable growth based on operating efficiencies and customer demand.

Consolidated Highlights

  • Total operating revenues in second-quarter 2013 were $29.8 billion, a 4.3 percent increase compared with second-quarter 2012.
  • Operating income increased 16.0 percent, to $6.6 billion in second-quarter 2013, compared with $5.7 billion in second-quarter 2012.  Operating income margin was 22.0 percent in second-quarter 2013, compared with 19.8 percent in second-quarter 2012.
  • Consolidated EBITDA (non-GAAP, earnings before interest, taxes, depreciation and amortization) grew 9.5 percent year over year, totaling $10.7 billion in second-quarter 2013.  EBITDA margin (non-GAAP) expanded to 35.9 percent in second-quarter 2013, up 170 basis points year over year.
  • Cash flow from operating activities totaled $17.1 billion in first-half 2013, compared with $15.3 billion in first-half 2012.  Capital expenditures in first-half 2013 were $7.6 billion, compared with $7.4 billion in first-half 2012.  Free cash flow (non-GAAP, cash flow from operations less capital expenditures) in first-half 2013 totaled $9.5 billion, compared with $7.8 billion in first-half 2012.

Verizon is increasing its capital spending guidance from $16.2 billion to between $16.4 billion and $16.6 billion for full-year 2013, as the company anticipates higher demand for wireless data consumption and begins deployment of AWS (advanced wireless services) spectrum in second-half 2013.

Verizon Wireless Delivers Another Strong Quarter

In second-quarter 2013, Verizon Wireless delivered solid growth in retail postpaid net additions and revenues; an increase in smartphone penetration; and a strong segment EBITDA margin on service revenues (non-GAAP).

Wireless Financial Highlights

  • Total revenues were $20.0 billion in second-quarter 2013, up 7.5 percent year over year.  Service revenues in the quarter totaled $17.1 billion, up 8.3 percent year over year.  Retail service revenues grew 7.8 percent year over year, to $16.4 billion.
  • Retail postpaid ARPA (average revenue per account) increased 6.4 percent over second-quarter 2012, to $152.50 per month.
  • In second-quarter 2013, wireless operating income margin was 32.4 percent, compared with 30.8 percent in second-quarter 2012.  Segment EBITDA margin on service revenues was 49.8 percent, up 80 basis points over second-quarter 2012.

Wireless Operational Highlights

  • Verizon Wireless added 941,000 retail postpaid net connections, out of a total 1.0 million net retail connections, in the second quarter.  These additions exclude acquisitions and adjustments.  Verizon expects to continue to see increases in quarterly sequential net additions for retail postpaid connections in the second half of 2013.
  • At the end of the second quarter, the company had 100.1 million retail connections, a 6.3 percent increase year over year -- including 94.3 million retail postpaid connections.
  • With more than 36 percent of retail postpaid accounts now on a Share Everything Plan, which allows customers to share data among multiple devices, Verizon Wireless had 35 million retail postpaid accounts at the end of the second quarter.  This is an average of 2.7 connections per account.
  • At the end of the second quarter, smartphones accounted for more than 64 percent of the Verizon Wireless retail postpaid customer phone base, up from 61 percent at the end of first-quarter 2013.
  • Retail postpaid churn was 0.93 percent in the second quarter, up 9 basis points year over year.  Retail churn was 1.23 percent in the second quarter, up 12 basis points year over year.
  • As of the end of June, Verizon Wireless has substantially completed deployment of its 4G LTE network, covering more than 99 percent of its current 3G network footprint.  In the second quarter, the company activated 4G LTE data service in Alaska, resulting in Verizon Wireless 4G LTE service being available in all 50 states.  The Verizon Wireless 4G LTE network is now available in 500 markets to more than 95 percent of the U.S. population and covers about 301 million people, including those in areas served by the company's LTE in Rural America partners.
  • The company continued to enhance its 4G LTE smartphone device lineup.  In the second quarter, Verizon Wireless launched the Pantech Perception, the Nokia Lumia 928, the Casio G'zOne Commando 4G LTE, the Blackberry Q10 and the Samsung Galaxy S4.  The company has also announced the HTC One would be available later this summer.

Wireline Reports Another Quarter of Strong FiOS Customer and Revenue Growth

Verizon's Wireline segment reported another quarter of FiOS customer, market share and revenue growth, leading to continued growth in consumer revenues.  In enterprise and wholesale, sales of global enterprise strategic services continued to increase and constitute a larger percentage of the revenue base.

Wireline Financial Highlights

  • Consumer revenues were $3.6 billion, an increase of 4.7 percent compared with second-quarter 2012.  Consumer ARPU for wireline services increased to $109.67 in second-quarter 2013, up 9.4 percent compared with second-quarter 2012.
  • FiOS revenues grew 14.7 percent, to $2.7 billion in second-quarter 2013, compared with $2.4 billion in second-quarter 2012.  ARPU for FiOS customers continued to be more than $150 in second-quarter 2013.
  • Sales of strategic services to global enterprise customers increased 4.8 percent compared with second-quarter 2012 and represented 57 percent of total enterprise revenues, compared with 52 percent in second-quarter 2012.  Strategic services include cloud and data center services, security and IT solutions, advanced communications, strategic networking and telematics services.

Wireline Operational Highlights

  • Verizon added 161,000 net new FiOS Internet connections and 140,000 net new FiOS Video connections in second-quarter 2013.  Verizon had a total of 5.8 million FiOS Internet and 5.0 million FiOS Video connections at the end of the quarter, representing year-over-year increases of 12.2 percent and 12.6 percent, respectively.
  • FiOS penetration (subscribers as a percentage of potential subscribers) continued to increase.  FiOS Internet penetration was 38.6 percent at the end of second-quarter 2013, compared with 36.6 percent at the end of second-quarter 2012.  In the same periods, FiOS Video penetration was 34.5 percent, compared with 32.6 percent.  The FiOS network passed 18.0 million premises by the end of second-quarter 2013.
  • By the end of second-quarter 2013, 35 percent of FiOS Internet customers subscribed to FiOS Quantum, which provides speeds ranging from 50 to 300 megabits per second.
  • Broadband connections totaled 8.9 million at the end of second-quarter 2013, a 1.9 percent year-over-year increase.  Overall, net broadband customers increased 45,000 in the second quarter, as FiOS Internet net customer additions more than offset a decline in subscribers for DSL-based High Speed Internet services.
  • Verizon has been replacing high-maintenance portions of its residential copper network with fiber optics to provide enhanced services and to reduce ongoing repair costs.  In first-half 2013, Verizon migrated 169,000 homes to fiber, toward a target of 300,000 migrations within FiOS markets in 2013.
  • Verizon Enterprise Solutions completed agreements with and began deploying innovative business technology solutions for a variety of corporations and organizations around the globe in the quarter, including American Tower, the Australian Federal Police and its client agencies, d'Amico Societa di Navigazione, the District of Columbia, Kohn Pedersen and Fox Associates, Marathon Petroleum Corporation, Panviva and Veolia Environnement.

NOTE: See the accompanying schedules and www.verizon.com/investor  for reconciliations to generally accepted accounting principles (GAAP) for non-GAAP financial measures cited in this document.

Verizon Communications Inc. (NYSE, Nasdaq: VZ), headquartered in New York, is a global leader in delivering broadband and other wireless and wireline communications services to consumer, business, government and wholesale customers.  Verizon Wireless operates America's most reliable wireless network, with more than 100 million retail connections nationwide.  Verizon also provides converged communications, information and entertainment services over America's most advanced fiber-optic network, and delivers integrated business solutions to customers in more than 150 countries, including all of the Fortune 500.  A Dow 30 company with nearly $116 billion in 2012 revenues, Verizon employs a diverse workforce of 180,900.  For more information, visit www.verizon.com.

VERIZON'S ONLINE NEWS CENTER: Verizon news releases, executive speeches and biographies, media contacts and other information are available at Verizon's online News Center at newscenter.verizon.com.  The news releases are available through an RSS feed.  To subscribe, visit newscenter.verizon.com/corporate/feeds.

NOTE: This presentation contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The following important factors could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: adverse conditions in the U.S. and international economies; competition in our markets; material changes in available technology or technology substitution; disruption of our key suppliers' provisioning of products or services; changes in the regulatory environments in which we operate, including any increase in restrictions on our ability to operate our networks; breaches of network or information technology security, natural disasters, terrorist attacks or significant litigation and any resulting financial impact not covered by insurance; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of financing; changes in our accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could affect earnings; material adverse changes in labor matters, including labor negotiations, and any resulting financial and/or operational impact; significant increases in benefit plan costs or lower investment returns on plan assets; and the inability to implement our business strategies.

 


Verizon Communications Inc.






Condensed Consolidated Statements of Income




























(dollars in millions, except per share amounts)












 3 Mos. Ended 

 3 Mos. Ended 



 6 Mos. Ended 

 6 Mos. Ended 


Unaudited

 6/30/13 

6/30/12

 % Change 


 6/30/13 

6/30/12

 % Change 










Operating Revenues

$     29,786

$     28,552

4.3


$       59,206

$       56,794

4.2










Operating Expenses








Cost of services and sales

11,033

10,896

1.3


21,965

22,215

(1.1)

Selling, general and administrative expense

8,047

7,877

2.2


16,195

15,577

4.0

Depreciation and amortization expense

4,151

4,128

0.6


8,269

8,156

1.4

Total Operating Expenses

23,231

22,901

1.4


46,429

45,948

1.0










Operating Income 

6,555

5,651

16.0


12,777

10,846

17.8

Equity in earnings of unconsolidated businesses

120

72

66.7


115

175

(34.3)

Other income, net

25

34

(26.5)


64

53

20.8

Interest expense

(514)

(679)

(24.3)


(1,051)

(1,364)

(22.9)

Income Before Provision for Income Taxes

6,186

5,078

21.8


11,905

9,710

22.6

Provision for income taxes

(988)

(793)

24.6


(1,852)

(1,519)

21.9

Net Income 

$        5,198

$        4,285

21.3


$       10,053

$          8,191

22.7










Net income attributable to noncontrolling interests

$        2,952

$        2,460

20.0


$          5,855

$          4,680

25.1

Net income attributable to Verizon

2,246

1,825

23.1


4,198

3,511

19.6

Net Income 

$        5,198

$        4,285

21.3


$       10,053

$          8,191

22.7



















Basic Earnings per Common Share 








Net income attributable to Verizon

$            .78

$            .64

21.9


$            1.46

$            1.23

18.7










Weighted average number of common shares (in millions)

2,865

2,849



2,866

2,846











Diluted Earnings per Common Share (1)








Net income attributable to Verizon

$            .78

$            .64

21.9


$            1.46

$            1.23

18.7










Weighted average number of common 









shares-assuming dilution (in millions)

2,872

2,858



2,873

2,854




















Footnotes:

(1)

Diluted Earnings per Common Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represents the only potential dilution.




Certain reclassifications have been made, where appropriate, to reflect comparable operating results.

 

 


Verizon Communications Inc.







Condensed Consolidated Balance Sheets



























(dollars in millions)










Unaudited

 6/30/13


 12/31/12


 $ Change


Assets







   Current assets







      Cash and cash equivalents

$               1,788


$               3,093


$         (1,305)


      Short-term investments

618


470


148


      Accounts receivable, net

12,216


12,576


(360)


      Inventories

1,040


1,075


(35)


      Prepaid expenses and other

6,295


4,021


2,274


   Total current assets

21,957


21,235


722


   Plant, property and equipment

215,224


209,575


5,649


      Less accumulated depreciation

126,892


120,933


5,959




88,332


88,642


(310)


   Investments in unconsolidated businesses

3,319


3,401


(82)


   Wireless licenses

75,825


77,744


(1,919)


   Goodwill

24,336


24,139


197


   Other intangible assets, net

5,776


5,933


(157)


   Other assets

3,801


4,128


(327)


Total Assets

$           223,346


$           225,222


$         (1,876)










Liabilities and Equity







   Current liabilities







      Debt maturing within one year

$               7,961


$               4,369


$           3,592


      Accounts payable and accrued liabilities

14,671


16,182


(1,511)


      Other

6,559


6,405


154


   Total current liabilities

29,191


26,956


2,235


   Long-term debt

41,791


47,618


(5,827)


   Employee benefit obligations

33,835


34,346


(511)


   Deferred income taxes

25,696


24,677


1,019


   Other liabilities

5,677


6,092


(415)










   Equity







      Common stock

297


297


-


      Contributed capital

37,895


37,990


(95)


      Accumulated deficit

(2,483)


(3,734)


1,251


      Accumulated other comprehensive income

1,994


2,235


(241)


      Common stock in treasury, at cost

(3,974)


(4,071)


97


      Deferred compensation - employee







        stock ownership plans and other

332


440


(108)


      Noncontrolling interests

53,095


52,376


719


   Total equity

87,156


85,533


1,623


Total Liabilities and Equity

$           223,346


$           225,222


$         (1,876)


















Verizon - Selected Financial and Operating Statistics











Unaudited

 6/30/13


 12/31/12












Total debt (in millions)

$             49,752


$             51,987




Net debt (in millions)

$             47,964


$             48,894




Net debt / Adjusted EBITDA (1)

1.2x


1.3x




Common shares outstanding end of period (in millions)

2,862


2,859




Total employees

180,900


183,400




Quarterly cash dividends declared per common share

$             0.5150


$             0.5150












Footnotes:

(1)

Adjusted EBITDA excludes the effects of non-operational items.




The unaudited condensed consolidated balance sheets are based on preliminary information.

 

Verizon Communications Inc.






Condensed Consolidated Statements of Cash Flows






















(dollars in millions)










 6 Mos. Ended 


 6 Mos. Ended 



Unaudited

 6/30/13 


6/30/12


 $ Change 

Cash Flows From Operating Activities






Net Income

$        10,053


$           8,191


$        1,862

Adjustments to reconcile net income to net cash provided by






operating activities:






   Depreciation and amortization expense

8,269


8,156


113

   Employee retirement benefits

354


751


(397)

   Deferred income taxes

1,812


1,237


575

   Provision for uncollectible accounts

507


521


(14)

   Equity in earnings of unconsolidated businesses, net of dividends received

(95)


(149)


54

   Changes in current assets and liabilities, net of effects from






    acquisition/disposition of businesses

(1,660)


(1,136)


(524)

   Other, net

(2,092)


(2,300)


208

Net cash provided by operating activities

17,148


15,271


1,877








Cash Flows From Investing Activities






Capital expenditures (including capitalized software)

(7,616)


(7,430)


(186)

Acquisitions of investments and businesses, net of cash acquired

(76)


(203)


127

Acquisitions of wireless licenses, net

(264)


(33)


(231)

Net change in short-term investments

(21)


21


(42)

Other, net

142


61


81

Net cash used in investing activities

(7,835)


(7,584)


(251)








Cash Flows From Financing Activities






Proceeds from long-term borrowings

499


-


499

Repayments of long-term borrowings and capital
    lease obligations

(2,330)


(1,891)


(439)

Decrease in short-term obligations, excluding
    current maturities

(432)


(887)


455

Dividends paid 

(2,946)


(2,587)


(359)

Proceeds from sale of common stock

74


210


(136)

Purchase of common stock for treasury

(153)


-


(153)

Special distribution to noncontrolling interests

(3,150)


(4,500)


1,350

Other, net

(2,180)


(1,393)


(787)

Net cash used in financing activities

(10,618)


(11,048)


430








Decrease in cash and cash equivalents

(1,305)


(3,361)


2,056

Cash and cash equivalents, beginning of period

3,093


13,362


(10,269)

Cash and cash equivalents, end of period

$           1,788


$        10,001


$       (8,213)








 


Verizon Communications Inc.







Wireless – Selected Financial Results





























(dollars in millions)












 3 Mos. Ended 

 3 Mos. Ended 



 6 Mos. Ended 

 6 Mos. Ended 


Unaudited

 6/30/13 

6/30/12

 % Change 


 6/30/13 

6/30/12

 % Change 










Operating Revenues








   Retail service 

$     16,422

$     15,230

7.8


$       32,591

$       30,116

8.2

   Other service 

656

546

20.1


1,215

1,070

13.6

Service 

17,078

15,776

8.3


33,806

31,186

8.4










Equipment 

1,953

1,768

10.5


3,766

3,606

4.4

Other

945

1,033

(8.5)


1,927

2,058

(6.4)

Total Operating Revenues

19,976

18,577

7.5


39,499

36,850

7.2










Operating Expenses








Cost of services and sales

5,799

5,558

4.3


11,450

11,468

(0.2)

Selling, general and administrative expense

5,666

5,295

7.0


11,114

10,523

5.6

Depreciation and amortization expense

2,047

2,011

1.8


4,053

3,929

3.2

Total Operating Expenses

13,512

12,864

5.0


26,617

25,920

2.7










Operating Income

$        6,464

$        5,713

13.1


$       12,882

$       10,930

17.9

Operating Income Margin

32.4%

30.8%



32.6%

29.7%











Segment EBITDA

$        8,511

$        7,724

10.2


$       16,935

$       14,859

14.0

Segment EBITDA Service Margin

49.8%

49.0%



50.1%

47.6%




















Footnotes:


The segment financial results and metrics above are adjusted to exclude the effects of non-operational items, as the Company's chief operating decision maker excludes these items in assessing business unit performance.




Intersegment transactions have not been eliminated.




Certain reclassifications have been made, where appropriate, to reflect comparable operating results.

 


Verizon Communications Inc.






Wireless – Selected Operating Statistics































Unaudited





 6/30/13 

6/30/12

 % Change 










Connections ('000)








   Retail postpaid





94,271

88,838

6.1

   Retail prepaid 





5,853

5,316

10.1

Retail 





100,124

94,154

6.3







































 3 Mos. Ended 

 3 Mos. Ended 



 6 Mos. Ended 

 6 Mos. Ended 


Unaudited

 6/30/13 

6/30/12

 % Change 


 6/30/13 

6/30/12

 % Change 










Net Add Detail ('000)(1)








   Retail postpaid

941

888

6.0


1,618

1,389

16.5

   Retail prepaid 

97

290

(66.6)


140

523

(73.2)

Retail 

1,038

1,178

(11.9)


1,758

1,912

(8.1)



















Account Statistics








Retail Postpaid Accounts ('000)(2)





34,958

34,646

0.9

Retail postpaid ARPA

$     152.50

$     143.32

6.4


$       151.39

$       141.95

6.7

Retail postpaid connections per account (2)





2.70

2.56

5.5










Churn Detail 








Retail postpaid 

0.93%

0.84%



0.97%

0.90%


Retail 

1.23%

1.11%



1.27%

1.18%




















Retail Postpaid Connection Statistics








Total Smartphone postpaid % of phones activated

84.4%

71.6%



84.3%

71.3%


Total Smartphone postpaid phone base (2)





64.4%

49.7%


Total Internet postpaid base (2)





9.9%

8.5%











Other Operating Statistics








Capital expenditures (in millions)

$        2,278

$        2,048

11.2


$          4,270

$          3,933

8.6



















Footnotes:

(1)

Connection net additions exclude acquisitions and adjustments.



(2)

Statistics presented as of end of period.




The segment financial results and metrics above are adjusted to exclude the effects of non-operational items, as the Company's chief operating decision maker excludes these items in assessing business unit performance.




Intersegment transactions have not been eliminated.




Certain reclassifications have been made, where appropriate, to reflect comparable operating results.

 


Verizon Communications Inc.







Wireline – Selected Financial Results































(dollars in millions)












 3 Mos. Ended 

 3 Mos. Ended 



 6 Mos. Ended 

 6 Mos. Ended 


Unaudited

 6/30/13 

6/30/12

 % Change 


 6/30/13 

6/30/12

 % Change 










Operating Revenues








   Consumer retail 

$        3,643

$        3,478

4.7


$          7,232

$          6,919

4.5

   Small business

648

667

(2.8)


1,299

1,329

(2.3)

Mass Markets

4,291

4,145

3.5


8,531

8,248

3.4










   Strategic services 

2,079

1,983

4.8


4,166

3,952

5.4

   Core

1,557

1,837

(15.2)


3,223

3,720

(13.4)

Global Enterprise

3,636

3,820

(4.8)


7,389

7,672

(3.7)










Global Wholesale 

1,686

1,827

(7.7)


3,413

3,688

(7.5)

Other

121

139

(12.9)


231

268

(13.8)

Total Operating Revenues

9,734

9,931

(2.0)


19,564

19,876

(1.6)










Operating Expenses 








Cost of services and sales

5,407

5,500

(1.7)


10,864

11,072

(1.9)

Selling, general and administrative expense

2,168

2,141

1.3


4,433

4,267

3.9

Depreciation and amortization expense

2,085

2,102

(0.8)


4,180

4,192

(0.3)

Total Operating Expenses

9,660

9,743

(0.9)


19,477

19,531

(0.3)










Operating Income

$             74

$           188

(60.6)


$               87

$             345

(74.8)

Operating Income Margin

0.8%

1.9%



0.4%

1.7%











Segment EBITDA

$        2,159

$        2,290

(5.7)


$          4,267

$          4,537

(6.0)

Segment EBITDA Margin

22.2%

23.1%



21.8%

22.8%




















Footnotes:


The segment financial results and metrics above are adjusted to exclude the effects of non-operational items, as the Company's chief operating decision maker excludes these items in assessing business unit performance.




Intersegment transactions have not been eliminated.




Certain reclassifications have been made, where appropriate, to reflect comparable operating results.

 


Verizon Communications Inc.







Wireline – Selected Operating Statistics
































Unaudited





 6/30/13 

6/30/12

 % Change 










Connections ('000)









   FiOS Video Subscribers





5,035

4,473

12.6

   FiOS Internet Subscribers





5,773

5,144

12.2

   FiOS Digital Voice residence connections 





3,817

2,648

44.1

FiOS Digital connections





14,625

12,265

19.2










   HSI 





3,166

3,632

(12.8)

Total Broadband connections





8,939

8,776

1.9

   Primary residence switched access connections





7,200

8,843

(18.6)

Primary residence connections





11,017

11,491

(4.1)










Total retail residence voice connections






11,583

12,222

(5.2)

Total voice connections






21,828

23,278

(6.2)






























 3 Mos. Ended 

 3 Mos. Ended 



 6 Mos. Ended 

 6 Mos. Ended 


Unaudited

6/30/13

6/30/12

 % Change 


6/30/13

6/30/12

 % Change 










Net Add Detail ('000)








   FiOS Video Subscribers

140

120

16.7


309

300

3.0

   FiOS Internet Subscribers

161

134

20.1


349

327

6.7

   FiOS Digital Voice residence connections 

286

350

(18.3)


590

764

(22.8)

FiOS Digital connections

587

604

(2.8)


1,248

1,391

(10.3)










   HSI 

(116)

(132)

(12.1)


(205)

(221)

(7.2)

Total Broadband connections

45

2

*


144

106

35.8

   Primary residence switched access connections

(393)

(501)

(21.6)


(782)

(1,063)

(26.4)

Primary residence connections

(107)

(151)

(29.1)


(192)

(299)

(35.8)










Total retail residence voice connections


(142)

(199)

(28.6)


(266)

(404)

(34.2)

Total voice connections


(363)

(422)

(14.0)


(675)

(859)

(21.4)










Revenue and ARPU Statistics








Consumer ARPU

$     109.67

$     100.26

9.4


$       108.46

$          99.70

8.8

FiOS revenues (in millions)

$       2,731

$       2,380

14.7


$         5,364

$          4,668

14.9

Strategic services as a % of total Enterprise revenues

57.2%

51.9%



56.4%

51.5%











Other Operating Statistics








Capital expenditures (in millions)

$        1,515

$        1,596

(5.1)


$          2,949

$          3,133

(5.9)










Wireline employees ('000) 





84.7

88.6


FiOS Video Open for Sale ('000)






14,607

13,721


FiOS Video penetration






34.5%

32.6%


FiOS Internet Open for Sale ('000)






14,943

14,044


FiOS Internet penetration






38.6%

36.6%




















Footnotes:


The segment financial results and metrics above are adjusted to exclude the effects of non-operational items, as the Company's chief operating decision maker excludes these items in assessing business unit performance.




Intersegment transactions have not been eliminated.




Certain reclassifications have been made, where appropriate, to reflect comparable operating results.



*

Not meaningful

 

 

SOURCE Verizon Communications Inc.



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