Verizon Communications Inc. today reported strong, profitable first-quarter 2007 revenue growth, supported by industry-leading retail customer growth at Verizon Wireless and strong sales of broadband services, including video.
"Verizon is off to a strong start in 2007," said Chairman and CEO Ivan Seidenberg. "Our results show that across-the-board we have accelerated organic growth in key markets: retail wireless, broadband, data, video and global IP [Internet protocol]."
Profitable Revenue Growth
Verizon's total operating revenues grew 6.4 percent, to $22.6 billion, comparing first quarter 2007 with first quarter 2006. On an adjusted basis (non-GAAP), which reflects comparable results for the sale of selected non- strategic assets in the first quarter 2007, year-over-year operating revenue growth was 6.5 percent.
Verizon Wireless Continues to Stand Out From Industry
Verizon Wireless continued its record of strong, industry-leading retail net customer additions, revenue growth, profitability and low churn in the first quarter 2007.
Verizon Wireless remains the largest U.S. wireless company in terms of retail (non-wholesale) customers, total revenues and data revenues. In the first quarter:
- Nearly all of the 1.6 million retail net customer additions (including acquisitions and adjustments) were post-paid customers. Based on publicly available information, the company has the most retail customers in the industry: 58.5 million.
- Total customers (which include retail and wholesale) were 60.7 million. The company added 1.7 million total net customers.
- Verizon Wireless continued its industry-leading low churn, with retail churn at 1.08 percent for the quarter, indicating remarkable customer loyalty. Churn among retail post-paid customers was even lower, at 0.89 percent.
- Revenues totaled $10.3 billion, up 17.0 percent. Service revenues were $9.0 billion, up 18.2 percent, driven by strong customer growth and demand for data services.
- Retail service ARPU (average monthly revenue per customer) was $50.73, up 2.8 percent year-over-year, delivering the fourth consecutive
quarter of year-over-year growth.
- Wireless operating income margin was 26.5 percent, the highest ever. EBITDA margin was 44.3 percent. Margins remained strong even as the
company added a significant number of net retail customers. (EBITDA - earnings before interest, taxes, depreciation and amortization - is
non-GAAP, and wireless EBITDA margin is EBITDA divided by wireless service revenues.)