Verizon blames Sandy and pensions for doubled Q4 2012 loss

Jan 22, 2013
Verizon blames Sandy and pensions for doubled Q4 2012 loss

Verizon has blamed Hurricane Sandy and the impact of pension pay-outs for recording a loss in Q4 2012, despite setting new records for subscriber additions as well as increasing retail service records by more than 8-percent versus 2011. Revenue for the quarter exceeded $30bn, Verizon announced, up 5.7-percent from Q4 2011, with 2.1m postpaid customers joining the network and boosting total retail connections to 98.2m; however, the carrier also had to pay an unexpected $135m in Sandy-related capital expenditures.

Despite that - and a total of $16.2bn capital expenditures over the course of 2012 - Verizon still spent less than it did in 2011, by around $70m in fact. The company also trimmed its debt, cutting it by $3.2bn to $52bn at the end of last year.

Revenues for the whole year mustered $115.8bn, up 4.5-percent year on year, while revenues in Q4 2012 specifically rose 8.5-percent for wireless service and 15.7-percent for FiOS.

However, costs related to pensions and benefits plans hit home, and took their toll on Verizon's overall share value, with the company recording a loss of $1.48 in EPS for the fourth quarter, more than double the loss in Q4 2011.

According to Verizon, its LTE network - as of today - covers nearly 89-percent of the US population, roughly 273m people, and is active in 476 markets. Usage may well see a boost too, with the company launching its shared data plans for business customers on Thursday this week.



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