Verizon Posts Strong Earnings Growth In 1Q 2013

Things are looking up for Verizon according to their press release for the first quarter of 2013. It appears activations on their many services including FIOS and smartphones are all up.

Here is a bit from the release:

Verizon Communications Inc. today reported strong first-quarter 2013 earnings growth, driven by record margins at Verizon Wireless and continued strong cash flow and year-over-year revenue increases for wireless, FiOS and strategic enterprise services.

Verizon reported 68 cents in EPS in first-quarter 2013, a 15.3 percent increase compared with first-quarter 2012 earnings of 59 cents per share. There were no adjustments in either quarter.

“Verizon is off to an excellent start in 2013,” said Lowell McAdam, Verizon chairman and CEO. “Our strategic investments in wireless, wireline and global networks have given us the platforms to sustain momentum and take advantage of growth opportunities in key markets for broadband, video and cloud services. With ongoing improvements in operating efficiency, we expect continued growth in free cash flow and earnings as we move through the year.”

Highlights include:

Consolidated
- 68 cents in earnings per share (EPS), a 15.3 percent increase compared with 59 cents per share in 1Q 2012.
- 4.2 percent year-over-year increase in total operating revenues; cash flow from operating activities up $1.6 billion, or 26.4 percent, from 1Q 2012.
Wireless
- 8.6 percent year-over-year increase in both service revenues and retail service revenues in 1Q 2013; 32.9 percent operating income margin and 50.4 percent segment EBITDA margin on service revenues (non-GAAP), both record highs.
- 677,000 retail postpaid net additions, up 35 percent year over year; low retail postpaid churn of 1.01 percent; 98.9 million total retail connections, 93.2 million total retail postpaid connections.
- 4G LTE service now available to 287 million people in 491 markets across the U.S.
Wireline
- 188,000 FiOS Internet and 169,000 FiOS Video net additions, with continued increased sales penetration for both services; FiOS revenues up 15.1 percent year over year, to $2.6 billion.
- 4.3 percent year-over-year increase in consumer revenues; consumer ARPU up 9.5 percent year over year, to $107.15.
- 6.0 percent year-over-year increase in revenues for global enterprise strategic services.