Verizon Announces Q1 2012 Results: Total Operating Revenues Of $28.2 Billion, Increase Of 4.6% From Q1 2011

Posted on Apr 19 2012 - 12:54pm by Editorial Staff

Verizon just announced its first quarter 2012 results with total operating revenues were $28.2 billion on a consolidated basis, an increase of 4.6 percent compared with first-quarter 2011. Consolidated operating income was $5.2 billion in first-quarter 2012, compared with $4.5 billion in first-quarter 2011.  Consolidated EBITDA (non-GAAP, earnings before interest, taxes, depreciation and amortization) totaled $9.2 billion in first-quarter 2012, compared with $8.5 billion in first-quarter 2011. Cash flow from operating activities totaled $6.0 billion in first-quarter 2012, an increase of $922 million compared with first-quarter 2011. Capital expenditures totaled $3.6 billion in first-quarter 2012, a decrease of $798 million compared with first-quarter 2011, as Verizon improved its capital-to-revenue efficiency.  Free cash flow (non-GAAP, cash flow from operations less capex) was $2.4 billion in first-quarter 2012, compared with $672 million in first-quarter 2011.  Verizon expects increasing free cash flow levels through 2012.

“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.” He added: “We remain confident in our ability to take advantage of the growth opportunities we see, and we are focused on driving operating efficiencies.  We are on track with our plans and expect to continue to deliver strong results.”

Financial Highlights:


  • 59 cents in diluted earnings per share (EPS), compared with 51 cents per share in 1Q 2011 – a 15.7 percent increase.
  • $6.0 billion in cash flow from operating activities, up $922 million compared with 1Q 2011.
  • 4.6 percent year-over-year quarterly revenue growth.


  • 7.7 percent year-over-year increase in service revenues in 1Q 2012; 8.9 percent year-over-year increase in retail service revenues; highest growth rate in three years; data revenues up 21.1 percent; 28.6 percent operating income margin and 46.3 percent Segment EBITDA margin on service revenues (non-GAAP).
  • 734,000 retail net customer additions, excluding acquisitions and adjustments, includes 501,000 retail postpaid net customer additions; continued low retail postpaid churn of 0.96 percent.
  • 93.0 million Total retail customers; 88.0 million total retail postpaid customers.


  • 193,000 FiOS Internet and 180,000 FiOS Video net additions, with increased sales penetration for both products; net increase of 104,000 broadband connections from 4Q 2011; FiOS Internet customers now total more than 5 million.
  • 8.1 percent year-over-year increase in consumer ARPU; 63 percent of consumer revenues generated by FiOS.
  • 11.6 percent increase in strategic services revenues, representing 51 percent of global enterprise revenues.
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