For the first quarter of 2008, Verizon earned $1.64 billion, or 57 cents per share, on revenues of $23.83 billion. In the same quarter of last year, Verizon earned $1.5 billion, or 51 cents per share on revenues of $22.58 billion. Non-GAAP EPS of 61 cents per share was in line with analyst expectations according to Thomson Financial .
Table 1: Verizon's First Quarter 2008 Results
|FiOS TV Subscribers||1,206,000||348,000||246.6%|
Verizon continues to tout strong uptake of FiOS and now has more than 1.2 million FiOS TV subscribers, averaging a nearly 20 percent penetration rate across all markets where the service is available. But while FiOS continues to perform strongly, wireline services in general continue to slide.
Total wireline revenues, which include Verizon Telecom and Verizon Business, were off 1.4 percent. Verizon Telecom -- the sector that includes FiOS -- was off 2.5 percent. A lot of this is due to Verizon losing another 8 percent of its legacy access lines -- a familiar trend for all telcos.
Much of the growth in the first quarter instead came from wireless where total revenues were up 13.2 percent. Verizon added 1.5 million wireless subscribers and now has 67.2 million along with a very low churn rate of 1.19 percent (0.93 percent for post-paid subscribers).
"Overall, wireless results were strong, while wireline telecom revenues and margins were lower than expected," writes UBS AG analyst John Hodulik in a research note this morning.
Chairman and CEO Ivan Seidenberg expressed confidence that Verizon will continue to weather the recent economic downturn in the U.S. economy saying that “I am also confident of our position over the long term because we have further opportunities to drive revenue growth and further opportunities to eliminate costs” in an official statement.
One of those ways that Verizon will eliminate costs could very well be eliminating more jobs within its wireline sector. (See Landline Landslide Will Lead to More Layoffs.)
Shares of Verizon are set to open up $0.46 (1.24 percent) to $37.94 in pre-market trading on the New York Stock Exchange (NYSE) .
— Raymond McConville, Reporter, Light Reading