Verizon's (NYSE: VZ) wireline results in the fourth quarter of 2011 showed how its bets on fiber-based broadband and video have continued to pay off. As of the end of 2011, Verizon had 8.7 million total broadband connections, up 3.3 percent year-over-year.
At the same time, traditional voice services also remained stable with Verizon reporting its lowest voice line losses since Q1 2006.
Here's a breakdown of Verizon's key wireline metrics in Q4 2011:
- Landline Losses: As expected, Verizon reported that total voice connections, a figure that includes both FiOS Digital Voice Connections and traditional TDM-based voice connections, declined 7.2 percent decline to 24.1 million.
- Broadband, video services: During the fourth quarter, the service provider added 201,000 FiOS Internet customers and 194,000 FiOS TV subscribers. FiOS again offset a decrease in DSL-based HSI connections, resulting in a net increase of 98,000 broadband connections from third-quarter 2011. However, its broadband and video gains fell below analyst expectations. Michael Nelson, an analyst at Mizuho Securities USA, forecast that Verizon would added 200,000 FiOS Internet users and 200,000 TV customers.
- Business services: In the business arena, Verizon reported $3.9 billion in total global enterprise revenues, up 1.3 percent over Q4 2010. Once again, the main drivers in the business portfolio came from strategic services sales. Sales of Terremark and cloud services, security and IT solutions, and strategic networking increased 14.7 percent compared with fourth quarter 2010 and represented 51 percent of global enterprise revenues in fourth quarter 2011.
Lowell McAdam, Verizon's chairman, president and CEO, said he sees an uptick in the wireline segment in 2012.
"Wireline margins recovered from third-quarter pressures, and we expect wireline margin expansion in 2012," he said in the earnings release. "With recent strategic moves and our investments in FiOS, LTE, and global IP and cloud-based strategic services, Verizon has set the stage for accelerated growth across our business units, and we look to continue to build significant value for shareholders in 2012."
From a total revenue standpoint, Verizon's operating revenues were $28.4 billion on a consolidated basis, up 7.7 percent compared with fourth-quarter 2010. For the year 2011, revenues increased 4 percent from 2010 to $110.9 billion.
However, the service provider did see a loss of 71 cents in EPS in fourth-quarter 2011, compared with earnings of 93 cents per share in fourth-quarter 2010. This loss was related to previously announced non-cash pension items.
- see the earnings release
- Bloomberg has this article
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