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VZ » Topics » Wireless Strength Continues for Quarter, Full Year

This excerpt taken from the VZ 8-K filed Jan 28, 2008.

Wireless Strength Continues for Quarter, Full Year

Verizon Wireless continues to be the most profitable domestic wireless company and the largest in terms of retail customers. In the fourth quarter:

 

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Total customers increased to 65.7 million, up 11.3 percent year-over-year.

 

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1.6 million of a total 2.0 million (retail and wholesale) net customer additions were retail post-paid customers.

 

Verizon News Release, page 5

 

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Verizon Wireless continued its industry-leading customer loyalty, with 1.20 percent total churn. Churn among retail post-paid customers, 93 percent of all its customers, was under 1.0 percent for the quarter and the full year.

 

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Total revenues in the quarter were $11.4 billion, up 13.3 percent; service revenues were $9.9 billion, up 13.7 percent, driven by customer growth and demand for data services. Full-year revenues were $43.9 billion, up 15.3 percent.

 

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ARPU (average monthly revenue per customer) levels increased year-over-year for the seventh consecutive quarter: retail ARPU of $51.49 was up 1.4 percent; retail data ARPU of $11.06 was up 36.0 percent.

 

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Wireless operating income margin was 26.2 percent. EBITDA margin on service revenues (non-GAAP) was 43.6 percent. (EBITDA is earnings before interest, taxes, depreciation and amortization.)

Continued Strong Growth in FiOS, Strategic Services

Verizon’s Wireline business, which consists of Verizon Telecom and Verizon Business, reported continued strong growth in customers of FiOS fiber-optic services and sales of strategic services to enterprise customers. In the fourth quarter:

 

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Verizon added a net of 226,000 new FiOS TV customers. The company had 943,000 FiOS TV customers by year-end and announced today that it had added its 1 millionth FiOS TV customer earlier this month. Including satellite TV customers served in partnership with DIRECTV (a net of 63,000 added this quarter), Verizon has more than 1.8 million video customers.

 

Verizon News Release, page 6

 

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Verizon added a net of 264,000 new broadband connections (DSL and FiOS Internet connections combined). Broadband connections totaled 8.2 million, an increase of 17.9 percent compared with year-end 2006. The company added a net of 245,000 FiOS Internet connections this quarter, for a total of more than 1.5 million as of year-end.

 

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Due to continued strong demand for broadband and TV services, ARPU in legacy Verizon wireline markets (which excludes former MCI consumer markets) increased 11.0 percent to $59.48, compared with the fourth quarter 2006.

 

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Verizon Business generated revenues of $5.4 billion, or growth of 0.5 percent compared with the fourth quarter 2006 on an adjusted basis (non-GAAP). This is Verizon Business’ fifth consecutive quarter of year-over-year, pro-forma revenue growth.

 

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Strong sales of key strategic services — such as IP (Internet protocol), managed services, Ethernet and optical ring services — continued to drive Verizon Business’ growth. These services generated more than $1.4 billion in revenue, up 25.1 percent from the fourth quarter 2006.

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