Verizon posted Quarter 1, 2010 earnings today, Thursday April 22nd. Earnings were $0.56 a share meeting analyst expectations.
Verizon reported $7.1 billion in cash from operations up 7.5% from Quarter 1 2009 and $3.7 billion in free cash flow up %25.6. Verizon’s wireless segment increased total customers by 1.5 million and a 4.4% increase in total revenues compared to Quarter 1 2009.Verizon Fios growth remains strong with an increase of 185,000 internet subscribers and an increase of 168,000 TV subscribers.
Throughout the quarter Verizon has been capable of maintaining its high margins mainly through wireless data plan subscribers. In accordance with Verizon’s business plan, data plans have slowly become the status quo. Few phones are now offered through Verizon Wireless that can be purchased and used without data subscription. Management stated plans to introduce its 4G network to approximately 25-30 areas by the end of the year. Advancement in Verizon’s 4G network and breaking ground on its new Technology Innovation Center will lead to innovative products will continue to help Verizon gain market share, solidifying the investment thesis this company was purchased on.
- Chad Schneider