Verizon Firing on All Cylinders, First Quarter Revenue Tops $28 Billion

Paul Lilly

Verizon had it going on in the first quarter of 2012. Solid performance in both wireless and wireline business segments led to a consolidated double-digit percentage growth in year-over-year quarterly earnings results, a 4.6 percent leap in year-over-year quarterly revenue growth to $28.2 billion, and $6 billion in cash flow from operating activities, up $922 million compared with the same quarter in 2011.

Big Red posted a 7.7 percent year-over-year increase in wireless service revenues and 8.9 percent in retail service revenues, which were helped in large part by 734,000 retail subscriber additions, of which 501,000 were postpaid customers. Verizon claims it's now home to 93 million total retail customers and 88 million postpaid subscribers.

"Verizon delivered double-digit earnings growth and strong cash flow this quarter," said Lowell McAdam , Verizon chairman and CEO. "We built momentum coming out of 2011, and our results show that we continue to execute in the key growth areas of our business. Verizon Wireless produced both great growth and great margins, and we produced another strong quarter of FiOS growth. We are confident we will improve Wireline margins for the full year. Our repositioning of Verizon Enterprise Solutions has better aligned our strengths in high-growth markets, and we expect our enterprise business to contribute even more to overall Wireline revenue growth and profitability over time."

What's particularly remarkable about all this is that Verizon is gaining ground even as the wireless market nears saturation, as Bloomberg reports .

"Margins improved as the iPhone sales tailed off," Joe Bonner, an analyst at Argus Research Group, told Bloomberg. "This might be good news for the rest of the sector, especially AT&T."

Verizon, the largest wireless carrier in the U.S., raked in $15.4 billion in wireless service revenue in the first quarter of 2012 and $6.6 billion in data revenues, the latter of which is up $1.1 billion (or 21.1 percent) year-over-year. It's not just the iPhone, either. Verizon rolled out five new 4G LTE devices just in the first quarter, including the Droid 4 and Droid Razr Maxx by Motorola, the Spectrum and Lucid by LG, and the Samsung Galaxy Tab 7.7. Apple's new iPad also made a debut.

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