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Verizon profit growth continues on wireless expansion
2014-01-21 15:27:00| Telecompaper Headlines
(Telecompaper) Verizon reported fourth-quarter revenues up 3.4 percent year-on-year to USD 31.1 billion, led by continued strong growth at its mobile activities and Fios services. The net result was a profit of USD 1.76 per share, compared to a loss of USD 1.48 a year ago. The increase was mainly due to a gain of USD 1.29 per share for changes in its pension valuations, offset by USD 540 million or 19 cents a share in costs for the pending acquisition of Vodafone's stake in Verizon Wireless. Verizon Wireless recorded quarterly sales up 5.7 percent to USD 21.2 billion, including a 7.5 percent increase in retail service revenue to USD 17.0 billion. The adjusted EBITDA margin rose 5.6 percent points to 47.0. The mobile operator added a net 1.7 million new retail customers in the three months to finish the year with a total 102.8 million, up 4.7 percent from the end of 2012. Verizon said its LTE roll-out is largely complete, covering 97 percent of the US population. The company spent in total USD 16.6 billion on capital equipment last year, up from USD 16.2 16.2 billion in 2012. Verizon estimates flat to slightly higher capex this year, at USD 16.5-17.0 billion, while capex as a percentage of revenue will continue to decrease. The company generated free cash flow (operating cash flow less capex) of USD 22.2 billion in 2013, an increase of 45.1 percent.
Tags: growth
wireless
profit
continues
Category:Telecommunications