Verizon Reports Strong Customer Additions and Another Quarter of Double-Digit Earnings Growth

Oct 21, 2014, 07:30 ET from Verizon Communications Inc.

NEW YORK, Oct. 21, 2014 /PRNewswire/ -- 

3Q 2014 HIGHLIGHTS

Consolidated

  • 89 cents in earnings per share (EPS), compared with 78 cents per share (or 77 cents on a non-GAAP adjusted basis) in 3Q 2013.

Wireless

  • Added 1.5 million net retail connections; retail postpaid churn of 1.00 percent; 106.2 million total retail connections; 100.1 million total retail postpaid connections.
  • 4.8 percent year-over-year increase in service revenues; 4.6 percent year-over-year increase in retail service revenues; 31.9 percent operating income margin; 49.5 percent segment EBITDA margin on service revenues (non-GAAP).

Wireline

  • 4.5 percent year-over-year increase in consumer revenues, the ninth consecutive quarter of more than 4 percent growth; consumer ARPU (average revenue per user) up 10.3 percent.
  • 13.4 percent year-over-year increase in FiOS revenues; 162,000 FiOS Internet and 114,000 FiOS Video net additions.

Verizon Communications Inc. (NYSE, Nasdaq: VZ) today reported double-digit year-over-year percentage growth in reported and adjusted earnings per share for the 10th time in the past 11 quarters.

The company posted another strong quarter of Verizon Wireless connections growth and profitability, and customer growth for FiOS fiber-optic services.

Chairman and CEO Lowell McAdam said: "We have great confidence heading into the fourth quarter, as Verizon continues to deliver consistently strong operating and financial results. We see continued, healthy customer demand for wireless and broadband services, and we are encouraged by the growth we are starting to see in the areas of video delivery and machine-to-machine. Our cash generation remains strong, and last month we were pleased to announce board approval of a quarterly dividend increase for the eighth consecutive year."

Verizon reported 89 cents in EPS in third-quarter 2014, compared with 78 cents per share in third-quarter 2013. No special items impacted third-quarter 2014 earnings. Third-quarter 2013 results included a non-operational net gain of 1 cent per share.

The 89 cents in EPS in third-quarter 2014 is a 15.6 percent increase compared with 77 cents per share on an adjusted basis (non-GAAP) in third-quarter 2013.

Consolidated Highlights

  • Total operating revenues in third-quarter 2014 were $31.6 billion, a 4.3 percent increase compared with third-quarter 2013. Excluding third-quarter 2013 revenues of the public sector business Verizon divested at the beginning of third-quarter 2014, the comparable growth rate (non-GAAP) would have been 4.9 percent.
  • Capital expenditures totaled $12.6 billion through the first nine months of 2014, up 6.9 percent year over year. Verizon projects capital spending of around $17 billion for full-year 2014, with consistent wireless capital spending throughout the year to stay ahead of customer demand by adding capacity to optimize the company's 4G LTE network.
  • Verizon continues to target consolidated top-line growth of 4 percent in 2014. For the full year, results for consolidated adjusted and wireless segment EBITDA service margin (non-GAAP, based on earnings before interest, taxes, depreciation and amortization) will be dependent on fourth-quarter volumes and installment take rates. Wireline segment EBITDA margin remains on track to expand on a full-year basis.
  • New revenue streams from machine-to-machine and telematics totaled $150 million in third-quarter 2014 – or more than $400 million through the first nine months of 2014, an increase of more than 40 percent year to date.

Verizon Wireless Delivers Strong Customer Additions and Profitability

In third-quarter 2014, Verizon Wireless delivered strong growth in retail postpaid net connections, a high number of tablet additions, an increase in smartphone penetration and continued high segment EBITDA margin on service revenues (non-GAAP).

Wireless Financial Highlights

  • Total revenues were $21.8 billion in third-quarter 2014, up 7.0 percent year over year. Service revenues in the quarter totaled $18.4 billion, up 4.8 percent year over year. Retail service revenues grew 4.6 percent year over year, to $17.6 billion.
  • Retail postpaid ARPA (average revenue per account) increased 3.5 percent over third-quarter 2013, to $161.24 per month. 
  • In third-quarter 2014, wireless operating income margin was 31.9 percent and segment EBITDA margin on service revenues was 49.5 percent. This compares with 33.8 percent and 51.1 percent, respectively, in third-quarter 2013.

Wireless Operational Highlights

  • Verizon Wireless added 1.53 million retail net connections, including 1.52 million retail postpaid connections, in the third quarter. These additions exclude acquisitions and adjustments.
  • At the end of the third quarter, the company had 106.2 million retail connections. This includes 100.1 million retail postpaid connections, a 5.2 percent increase year over year.
  • Verizon Wireless had 35.4 million retail postpaid accounts at the end of the third quarter, up 1.3 percent over third-quarter 2013, and 2.82 connections per account, up 3.7 percent year over year.
  • During third-quarter 2014, the company added 457,000 postpaid phones and 1.1 million postpaid tablets. At the end of the quarter, smartphones accounted for 77 percent of the Verizon Wireless retail postpaid customer phone base, up from 75 percent at the end of second-quarter 2014.
  • Retail postpaid churn was 1.00 percent in the third quarter, an increase of 6 basis points sequentially and 3 basis points year over year. Retail churn was 1.29 percent in the third quarter, up 4 basis points sequentially and 1 basis point year over year.
  • The company continued to enhance its 4G LTE device lineup. In the third quarter, Verizon Wireless launched the HTC One Remix, LG G Vista, Kyocera Brigadier, HTC One (M8) for Windows, Apple iPhone 6 and 6 Plus and New Moto X smartphones; the Verizon Jetpack 4G LTE Mobile Hotspot MiFi 6620L, and Samsung Galaxy Tab 4 (10.1) and Tab S 10.5 tablets.
  • During the third quarter, Verizon Wireless continued to add capacity to its 4G LTE network, the largest in the United States, using AWS-1 spectrum. This additional bandwidth, called XLTE, is now available in more than 400 markets across the country.

Wireline Consumer Revenue Growth Remains Strong

Verizon's wireline segment reported continued strong results for consumer services, where year-over-year quarterly revenues now have grown by more than 4 percent for nine consecutive quarters.

Wireline Financial Highlights

  • Total revenues were $9.6 billion in third-quarter 2014, down 0.8 percent year over year. Consumer revenues were $3.9 billion, up 4.5 percent compared with third-quarter 2013, with FiOS revenues representing 76 percent of the total. Consumer ARPU for wireline services increased to $125.32 per month in third-quarter 2014, up 10.3 percent compared with third-quarter 2013.
  • Total FiOS revenues grew 13.4 percent, to $3.2 billion, comparing third-quarter 2014 with third-quarter 2013.
  • Wireline operating income margin was 2.3 percent in third-quarter 2014, up from 1.5 percent in third-quarter 2013. Segment EBITDA margin (non-GAAP) was 23.0 percent in third-quarter 2014, flat compared with third-quarter 2013.
  • Sales of strategic services to enterprise customers increased 1.0 percent, to $2.1 billion, compared with third-quarter 2013. Strategic services include private IP, Ethernet, data center, cloud, security and managed services.

Wireline Operational Highlights

  • In third-quarter 2014, Verizon added 162,000 net new FiOS Internet connections and 114,000 net new FiOS Video connections. Verizon had totals of 6.5 million FiOS Internet and 5.5 million FiOS Video connections at the end of the third quarter, representing year-over-year increases of 8.8 percent and 7.0 percent, respectively.
  • FiOS Internet penetration (subscribers as a percentage of potential subscribers) was 40.6 percent at the end of third-quarter 2014, compared with 39.2 percent at the end of third-quarter 2013. In the same periods, FiOS Video penetration was 35.5 percent, compared with 34.9 percent. The FiOS network passed 19.7 million premises by the end of third-quarter 2014.
  • By the end of third-quarter 2014, 57 percent of consumer FiOS Internet customers subscribed to FiOS Quantum, which provides speeds ranging from 50 to 500 megabits per second, up from 55 percent at the end of second-quarter 2014.
  • As of this week, nearly 5 million FiOS customers have already been upgraded to SpeedMatch upload speeds that mirror download speeds. This upgrade, at no additional customer cost, helps distinguish the benefits of fiber-based broadband.
  • Broadband connections totaled 9.1 million at the end of third-quarter 2014, a 1.7 percent year-over-year increase. Net broadband connections increased by 69,000 in third-quarter 2014, as FiOS Internet net additions more than offset declines in DSL-based High Speed Internet connections.
  • Verizon has been replacing high-maintenance portions of its residential copper network with fiber optics to provide customers with more resilient infrastructure and reduce repairs, which improves customer satisfaction and reduces costs. In third-quarter 2014, Verizon migrated an additional 55,000 customers to fiber, bringing the year-to-date total to around 200,000.
  • In the third quarter, Verizon Enterprise Solutions began deploying innovative enterprise-grade network, cloud, security, mobility and other technology solutions for some of the world's strongest brands: healthcare clients CVS Health, Carestream Health and Atlantic Health System; public sector customers such as the Australian Taxation Office, Australian Department of Foreign Affairs, California Department of Transportation (Caltrans) and Corporation for Education Initiatives in California (CENIC); and industry leaders such as Avianet, Dun & Bradstreet, Property Exchange Australia (PEXA), Telerx, TruGreen and Vanguard Logistics Services (USA), Inc.

NOTE: See the accompanying schedules and www.verizon.com/about/investors 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 106 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. A Dow 30 company with more than $120 billion in 2013 revenues, Verizon employs a diverse workforce of 178,500. For more information, visit www.verizon.com/news/.

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 www.verizon.com/news/. The news releases are available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.

Forward-Looking Statements

In this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words "anticipates," "believes," "estimates," "hopes" or similar expressions. 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, along with those discussed in our filings with the Securities and Exchange Commission (the "SEC"), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the ability to realize the expected benefits of our transaction with Vodafone in the timeframe expected or at all; 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 further financing; significantly increased levels of indebtedness as a result of the Vodafone transaction; changes in tax laws or treaties, or in their interpretation; adverse conditions in the U.S. and international economies; material adverse changes in labor matters, including labor negotiations, and any resulting financial and/or operational impact; material changes in technology or technology substitution; disruption of our key suppliers' provisioning of products or services; changes in the regulatory environment 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 acts of war or significant litigation and any resulting financial impact not covered by insurance; the effects of competition in the markets in which we operate; changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; 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 



 9 Mos. Ended 

 9 Mos. Ended 


Unaudited

9/30/14

9/30/13

 % Change 


9/30/14

9/30/13

 % Change 










Operating Revenues

$ 31,586

$     30,279

4.3


$     93,887

$     89,485

4.9










Operating Expenses








Cost of services and sales

12,252

10,960

11.8


35,528

32,925

7.9

Selling, general and administrative expense

8,277

8,037

3.0


24,159

24,232

(0.3)

Depreciation and amortization expense

4,167

4,154

0.3


12,465

12,423

0.3

Total Operating Expenses

24,696

23,151

6.7


72,152

69,580

3.7










Operating Income

6,890

7,128

(3.3)


21,735

19,905

9.2

Equity in earnings (losses) of unconsolidated businesses

(48)

19

 * 


1,811

134

 * 

Other income and (expense), net

71

20

 * 


(757)

84

 * 

Interest expense

(1,255)

(555)

 * 


(3,633)

(1,606)

 * 

Income Before Provision for Income Taxes

5,658

6,612

(14.4)


19,156

18,517

3.5

Provision for income taxes

(1,864)

(1,034)

80.3


(5,052)

(2,886)

75.1

Net Income

$   3,794

$       5,578

(32.0)


$     14,104

$     15,631

(9.8)










Net income attributable to noncontrolling interests

$        99

$       3,346

(97.0)


$       2,248

$       9,201

(75.6)

Net income attributable to Verizon

3,695

2,232

65.5


11,856

6,430

84.4

Net Income

$   3,794

$       5,578

(32.0)


$     14,104

$     15,631

(9.8)










Basic Earnings per Common Share 








Net income attributable to Verizon

$        .89

$            .78

14.1


$          3.03

$          2.24

35.3









Weighted average number of common shares (in millions)

4,152

2,866



3,912

2,866










Diluted Earnings per Common Share (1)








Net income attributable to Verizon

$        .89

$            .78

14.1


$          3.03

$          2.24

35.3









Weighted average number of common 









shares-assuming dilution (in millions)

4,159

2,874



3,919

2,874




















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.











*

Not meaningful


 

Verizon Communications Inc.

Condensed Consolidated Balance Sheets













(dollars in millions)








Unaudited

9/30/14


12/31/13


$ Change








Assets






Current assets







Cash and cash equivalents 

$     7,218


$   53,528


$         (46,310)


Short-term investments

635


601


34


Accounts receivable, net

13,283


12,439


844


Inventories

1,206


1,020


186


Prepaid expenses and other

2,431


3,406


(975)

Total current assets

24,773


70,994


(46,221)

Plant, property and equipment

230,452


220,865


9,587


Less accumulated depreciation

140,520


131,909


8,611



89,932


88,956


976

Investments in unconsolidated businesses

818


3,432


(2,614)

Wireless licenses

75,303


75,747


(444)

Goodwill

24,617


24,634


(17)

Other intangible assets, net

5,738


5,800


(62)

Other assets

5,112


4,535


577

Total Assets

$ 226,293


$ 274,098


$         (47,805)








Liabilities and Equity






Current liabilities 







Debt maturing within one year

$     1,603


$     3,933


$           (2,330)


Accounts payable and accrued liabilities

17,055


16,453


602


Other

8,231


6,664


1,567

Total current liabilities

26,889


27,050


(161)

Long-term debt

107,627


89,658


17,969

Employee benefit obligations

25,770


27,682


(1,912)

Deferred income taxes

42,289


28,639


13,650

Other liabilities

5,750


5,653


97








Equity







Common stock

424


297


127


Contributed capital

11,089


37,939


(26,850)


Reinvested earnings

6,964


1,782


5,182


Accumulated other comprehensive income

1,175


2,358


(1,183)


Common stock in treasury, at cost

(3,465)


(3,961)


496


Deferred compensation – employee 







stock ownership plans and other

390


421


(31)


Noncontrolling interests

1,391


56,580


(55,189)

Total equity

17,968


95,416


(77,448)

Total Liabilities and Equity

$ 226,293


$ 274,098


$         (47,805)















Verizon - Selected Financial and Operating Statistics













Unaudited

9/30/14


 12/31/13 










Total debt (in millions)

$  109,230


$    93,591



Net debt (in millions)

$  102,012


$    40,063



Net debt / Adjusted EBITDA(1)

2.3x


1.0x



Common shares outstanding end of period (in millions)

4,150


2,862



Total employees

178,500


176,800



Quarterly cash dividends declared per common share

$      0.550


$      0.530










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)










9 Mos. Ended


9 Mos. Ended



Unaudited

9/30/14


9/30/13


$ Change








Cash Flows from Operating Activities






Net Income

$    14,104


$    15,631


$  (1,527)

Adjustments to reconcile net income to net cash provided by 






operating activities:







Depreciation and amortization expense

12,465


12,423


42


Employee retirement benefits

843


649


194


Deferred income taxes

914


3,011


(2,097)


Provision for uncollectible accounts

684


746


(62)


Equity in earnings of unconsolidated businesses, net of dividends received

(1,785)


(100)


(1,685)


Changes in current assets and liabilities, net of effects from 







acquisition/disposition of businesses

(816)


(1,078)


262


Other, net

(3,252)


(2,895)


(357)

Net cash provided by operating activities

23,157


28,387


(5,230)








Cash Flows from Investing Activities






Capital expenditures (including capitalized software)

(12,624)


(11,807)


(817)

Acquisitions of investments and businesses, net of cash acquired

(180)


(81)


(99)

Acquisitions of wireless licenses

(343)


(430)


87

Proceeds from dispositions of wireless licenses

2,367


2,111


256

Proceeds from dispositions of businesses

120


-


120

Other, net

230


184


46

Net cash used in investing activities

(10,430)


(10,023)


(407)








Cash Flows from Financing Activities






Proceeds from long-term borrowings

21,575


49,166


(27,591)

Repayments of long-term borrowings and capital lease obligations

(12,594)


(2,392)


(10,202)

Decrease in short-term obligations, excluding current maturities

(426)


(324)


(102)

Dividends paid

(5,653)


(4,420)


(1,233)

Proceeds from sale of common stock

34


76


(42)

Purchase of common stock for treasury

-


(153)


153

Special distribution to noncontrolling interest

-


(3,150)


3,150

Acquisition of noncontrolling interest

(58,886)


-


(58,886)

Other, net

(3,087)


(3,550)


463

Net cash provided by (used in) financing activities

(59,037)


35,253


(94,290)








Increase (decrease) in cash and cash equivalents

(46,310)


53,617


(99,927)

Cash and cash equivalents, beginning of period

53,528


3,093


50,435

Cash and cash equivalents, end of period

$      7,218


$    56,710


$(49,492)








Footnotes:







Certain reclassifications of prior period amounts have been made, where appropriate, to reflect comparable operating results.

 

Verizon Communications Inc.

Wireless - Selected Financial Results

























 (dollars in millions) 












 3 Mos. Ended 

 3 Mos. Ended 



 9 Mos. Ended 

 9 Mos. Ended 


Unaudited

9/30/14

9/30/13

 % Change 


9/30/14

9/30/13

 % Change 










Operating Revenues









Retail service

$     17,556

$     16,776

4.6


$     52,090

$     49,367

5.5


Other service

800

740

8.1


2,331

1,955

19.2

Service

18,356

17,516

4.8


54,421

51,322

6.0










Equipment

2,480

1,924

28.9


6,737

5,690

18.4

Other

999

959

4.2


3,039

2,886

5.3

Total Operating Revenues

21,835

20,399

7.0


64,197

59,898

7.2










Operating Expenses








Cost of services and sales

7,043

5,652

24.6


19,641

17,102

14.8

Selling, general and administrative expense

5,698

5,801

(1.8)


16,991

16,915

0.4

Depreciation and amortization expense

2,139

2,060

3.8


6,307

6,113

3.2

Total Operating Expenses

14,880

13,513

10.1


42,939

40,130

7.0










Operating Income

$       6,955

$       6,886

1.0


$     21,258

$     19,768

7.5

Operating Income Margin

31.9%

33.8%



33.1%

33.0%











Segment EBITDA

$       9,094

$       8,946

1.7


$     27,565

$     25,881

6.5

Segment EBITDA Service Margin

49.5%

51.1%



50.7%

50.4%




















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


9/30/14

9/30/13

 % Change 







Connections ('000)






Retail postpaid


100,103

95,185

5.2


Retail prepaid


6,053

5,965

1.5

Retail


106,156

101,150

4.9






























 3 Mos. Ended 

 3 Mos. Ended 



 9 Mos. Ended 

 9 Mos. Ended 


Unaudited

9/30/14

9/30/13

 % Change 


9/30/14

9/30/13

 % Change 










Net Add Detail ('000) (1)









Retail postpaid

1,516

927

63.5


3,496

2,545

37.4


Retail prepaid

9

134

(93.3)


5

274

(98.2)

Retail

1,525

1,061

43.7


3,501

2,819

24.2



















Account Statistics








Retail Postpaid Accounts ('000) (2)





35,435

34,972

1.3

Retail postpaid ARPA

$     161.24

$     155.74

3.5


$     160.21

$     152.84

4.8

Retail postpaid connections per account (2)





2.82

2.72

3.7










Churn Detail








Retail postpaid

1.00%

0.97%



1.00%

0.97%


Retail

1.29%

1.28%



1.30%

1.27%











Retail Postpaid Connection Statistics








Total Smartphone postpaid % of phones activated

91.0%

84.9%



90.6%

84.5%


Total Smartphone postpaid phone base (2)





76.5%

67.2%


Total Internet postpaid base (2)





13.1%

10.2%










Other Operating Statistics








Capital expenditures (in millions)

$       2,483

$       2,450

1.3


$       7,808

$       6,720

16.2



















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 



 9 Mos. Ended 

 9 Mos. Ended 


Unaudited

9/30/14

9/30/13

 % Change 


9/30/14

9/30/13

 % Change 










Operating Revenues









Consumer retail

$       3,902

$       3,735

4.5


$     11,606

$     11,020

5.3


Small business

613

639

(4.1)


1,858

1,912

(2.8)

Mass Markets

4,515

4,374

3.2


13,464

12,932

4.1











Strategic services

2,068

2,048

1.0


6,214

6,059

2.6


Core

1,316

1,491

(11.7)


4,099

4,590

(10.7)

Global Enterprise

3,384

3,539

(4.4)


10,313

10,649

(3.2)










Global Wholesale

1,552

1,631

(4.8)


4,713

4,992

(5.6)

Other

125

113

10.6


379

339

11.8

Total Operating Revenues

9,576

9,657

(0.8)


28,869

28,912

(0.1)










Operating Expenses








Cost of services and sales

5,325

5,342

(0.3)


16,006

15,925

0.5

Selling, general and administrative expense

2,048

2,094

(2.2)


6,228

6,517

(4.4)

Depreciation and amortization expense

1,978

2,074

(4.6)


6,016

6,254

(3.8)

Total Operating Expenses

9,351

9,510

(1.7)


28,250

28,696

(1.6)










Operating Income

$          225

$          147

53.1


$          619

$          216

 * 

Operating Income Margin

2.3%

1.5%



2.1%

0.7%











Segment EBITDA

$       2,203

$       2,221

(0.8)


$       6,635

$       6,470

2.6

Segment EBITDA Margin

23.0%

23.0%



23.0%

22.4%




















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

 

Verizon Communications Inc.

Wireline - Selected Operating Statistics















Unaudited

9/30/14

9/30/13

 % Change 






Connections ('000)





FiOS Video Subscribers

5,533

5,170

7.0


FiOS Internet Subscribers

6,471

5,946

8.8


FiOS Digital Voice residence connections

4,514

4,069

10.9

FiOS Digital connections

16,518

15,185

8.8







HSI

2,675

3,049

(12.3)

Total Broadband connections

9,146

8,995

1.7


Primary residence switched access connections

5,794

6,821

(15.1)

Primary residence connections

10,308

10,890

(5.3)






Total retail residence voice connections

10,743

11,421

(5.9)

Total voice connections

20,089

21,457

(6.4)






















 3 Mos. Ended 

 3 Mos. Ended 



 9 Mos Ended 

 9 Mos Ended 


Unaudited

9/30/14

9/30/13

 % Change 


9/30/14

9/30/13

 % Change 










Net Add Detail ('000)









FiOS Video Subscribers

114

135

(15.6)


271

444

(39.0)


FiOS Internet Subscribers

162

173

(6.4)


399

522

(23.6)


FiOS Digital Voice residence connections

74

252

(70.6)


266

842

(68.4)

FiOS Digital connections

350

560

(37.5)


936

1,808

(48.2)











HSI

(93)

(117)

(20.5)


(268)

(322)

(16.8)

Total Broadband connections

69

56

23.2


131

200

(34.5)


Primary residence switched access connections

(213)

(379)

(43.8)


(687)

(1,161)

(40.8)

Primary residence connections

(139)

(127)

9.4


(421)

(319)

32.0










Total retail residence voice connections

(160)

(162)

(1.2)


(486)

(428)

13.6

Total voice connections

(302)

(371)

(18.6)


(996)

(1,046)

(4.8)










Revenue and ARPU Statistics








Consumer ARPU

$     125.32

$     113.65

10.3


$    122.60

$    110.81

10.6

FiOS revenues (in millions)

$       3,200

$       2,823

13.4


$      9,366

$      8,187

14.4

Strategic services as a % of total Enterprise revenues

61.1%

57.9%



60.3%

56.9%











Other Operating Statistics








Capital expenditures (in millions)

$       1,464

$       1,518

(3.6)


$      4,194

$      4,467

(6.1)










Wireline employees ('000)





79.4

83.6


FiOS Video Open for Sale ('000)





15,602

14,824


FiOS Video penetration





35.5%

34.9%


FiOS Internet Open for Sale ('000)





15,945

15,167


FiOS Internet penetration





40.6%

39.2%




















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.



 

SOURCE Verizon Communications Inc.



RELATED LINKS

http://www.verizon.com