Verizon Reports Strong Wireless Customer And Data Growth In 4Q; Delivers Higher Operating Cash Flows

Results Include 4Q Costs for Steps to Transform Wireline, Strengthen Business.

4Q 2009 HIGHLIGHTS

Consolidated

* Continued cash flow growth in 4Q 2009: $31.6 billion in cash flow from operations in 2009, up $4.0 billion, or 14.5 percent, from 2008.
* A loss of 23 cents per share and adjusted earnings (non-GAAP) of 54 cents per share, compared with 4Q 2008 EPS of 43 cents and 61 cents, respectively.

Wireless

* 2.2 million total net customer additions, excluding acquisitions and adjustments, in 4Q 2009; 1.2 million retail net customer additions in quarter; 87.5 million retail customers, up 25 percent from year-end 2008; 91.2 million total customers, up 26.6 percent from year-end 2008.
* 22.5 percent increase in total revenues from 4Q 2008; continued low retail postpaid churn, 1.06 percent; data revenues up 45.9 percent; 27.3 percent operating income margin and 45.0 percent EBITDA margin on service revenues (non-GAAP).

Wireline

* 153,000 each of net FiOS Internet and FiOS TV customer additions in 4Q 2009; 3.4 million total FiOS Internet customers and 2.9 million total FiOS TV customers.
* 12.6 percent increase in consumer ARPU from 4Q 2008; total broadband and video revenues of $1.7 billion, up 25.5 percent from 4Q 2008.

Verizon Communications Inc. (NYSE:VZ) today reported continued strong cash flow in the fourth quarter 2009, fueled by quarterly growth in strategic areas. Verizon Wireless added a net of 2.2 million total customers, including 1.2 million retail customers, and reported increased data revenue. Verizon�s wireline operations posted customer and revenue gains in FiOS broadband services and increased sales of strategic business services.

In the fourth quarter, Verizon recorded a loss of 23 cents in diluted earnings per share (EPS), compared with EPS of 43 cents per share in the fourth quarter 2008. Contributing to the loss was a special item of $3.0 billion in pre-tax costs related to workforce reductions. On an adjusted basis (non-GAAP), fourth-quarter 2009 EPS was 54 cents, compared with 61 cents in the fourth quarter 2008.

On an annual basis, Verizon reported $1.29 in 2009 EPS, compared with $2.26 in 2008. On an adjusted basis, full-year 2009 EPS was $2.40, compared with 2008 EPS of $2.54.

Click to read the rest of the press release