Verizon adds 872,000 subscribers, doubles profit in fourth quarter

By on January 25, 2011 at 11:07 AM.

Verizon adds 872,000 subscribers, doubles profit in fourth quarter

Shares of Verizon Communications stock slid over 1% in after-hours trading Tuesday morning as the company reported its fourth quarter earnings. Despite almost doubling profit from $2.37 billion in the fourth quarter of 2009 to $4.65 billion in 2010, earnings of $0.54 per share missed the Street’s consensus of $0.55 per share and revenue fell 2.6% to $26.4 billion. Subscriber growth of 872,000 net postpaid customers crushed Wall Street’s consensus, however, which sat in the mid-600,000s. “Verizon ended 2010 with strong results, driven by solid execution across all our businesses,” Verizon CEO Ivan Seidenberg said in a statement. “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.” Verizon also noted that only 26% of Verizon Wireless’ 83 million postpaid wireless subscribers owned smartphones at the close of 2010. This creates a tremendous opportunity for the carrier as it prepares to launch the iPhone 4 next month. Hit the break for Verizon’s full press release. More →

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Credit Suisse gives AT&T iPhone exodus predictions

By on September 21, 2010 at 1:30 PM.

Credit Suisse gives AT&T iPhone exodus predictions

Credit Suisse has published a speculative report on just what might happen to AT&T’s customer base if rival Verizon Wireless were to begin carrying the iPhone. According to Credit Suisse, 23% of AT&T iPhone users indicate they would move over to Big Red if the company was to offer Apple’s smartphone. This would translate into a 0.2% jump in churn for AT&T; from 1.1% to 1.3% in 2011-2012. The report also predicts that AT&T’s 2012 new net subscriptions would fall flat, but Verizon’s net adds would spike to around 4 million. Despite what seems like bad news, the analytics firm upgraded Ma’ Bells stock from neutral to outperform, saying, “it was undervalued compared to Verizon and more prone to upward earnings estimate revisions.” The report also notes that VZW’s cost-per-user would increase significantly upon offering the iPhone but also noted this increase would “snap back” the following year.  More →

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