Verizon Wireless Delivers Strong Operational and Financial Results
Verizon Wireless delivered strong growth in revenues, retail customers and other connections; increased retail postpaid ARPU (average monthly service revenue per user) and smartphone penetration; and delivered a strong EBITDA margin. In the first quarter of 2011:
Wireless Financial Highlights
* Service revenues in the quarter totaled $14.3 billion, up 6.3 percent year over year. Data revenues were $5.5 billion, up $1.0 billion or 22.3 percent year over year, and represent 38.1 percent of all service revenues. Total revenues were $16.9 billion, up 10.2 percent year over year.
* Retail postpaid ARPU grew 2.2 percent over first-quarter 2010, to $53.52. Retail postpaid data ARPU increased to $20.51, up 17.3 percent year over year. Retail service ARPU also grew 2.2 percent, to $51.88.
* Wireless operating income margin was 25.8 percent. Segment EBITDA margin on service revenues (non-GAAP) was 43.7 percent.
Wireless Operational Highlights
* Verizon Wireless added 1.8 million total connections, including 906,000 retail postpaid customers, and 897,000 wholesale and other connections. These additions exclude acquisitions and adjustments.
* At the end of the first quarter, the company had 104.0 million total connections, an increase of 6.1 percent year over year, including 88.4 million retail customers and 15.6 million wholesale and other connections.
* At the end of the first quarter, 32 percent of Verizon Wireless' retail postpaid customer phone base were smartphones, up from 28 percent at the end of fourth-quarter 2010.
* Retail postpaid churn remained low at 1.01 percent, and total retail churn was 1.33 percent. Both improved year over year.
* Following the launch of its 4G LTE mobile broadband network in 38 markets in December 2010, the company so far has named more than 100 additional markets where 4G LTE is being rolled out. By year-end, Verizon Wireless' 4G LTE network, the fastest and most advanced 4G LTE network in the U.S., is expected to be available in more than 175 markets, covering a population of more than 185 million people throughout the country.
* The company introduced three 4G LTE devices: the ThunderBolt by HTC, the first 4G LTE smartphone; the Verizon USB551L, a modem made by Novatel Wireless; and a Samsung 4G LTE Mobile Hotspot.
* Demand was strong for new LTE devices -- as well as for Apple's iPhone 4, which produced the most successful first-day sales in Verizon Wireless history when it was introduced in February to existing customers.
* Verizon Wireless continued to invest in its 3G network, the nation's largest and most reliable 3G network.
* The company announced plans to open the Verizon Wireless Application Innovation Center in San Francisco later this year, where developers, engineers and others can work together on innovative applications that will run on the company's 3G and 4G networks.