Verizon posts $2.23BN loss despite FiOS adds
DetailsMichelle Clancy | 23 January 2015
Verizon Communications posted a loss of $2.23 billion, or $0.54 a share, compared with a year-ago profit of $5.07 billion, or $1.77 a share in the fourth quarter of 2014.
Its wireline revenue fell 1.6% to $9.6 billion despite a 4.1% increase in consumer retail revenue lifted by FiOS TV and broadband.
About 387,000 net new FiOS TV customers and 544,000 net new FiOS Internet customers were added, bringing the respective bases to 5.6 million and 6.6 million. That's a slower rate of additions than last year, though.
Unfortunately, the FiOS gain was offset by 3.7%, 4.6% and 5.8% drops in small business, enterprise and wholesale revenue, respectively. And, wireline voice connections fell by 6.1% year-over-year to 19.8 million.
Wireline margin and EBITDA margin however rose to 4.4% and 23.9% from 1.2% and 22.5% a year ago.
"Verizon (VZ) posted another year of consistently high operating and financial performance in 2014, with strong cash generation and the return of $7.8 billion to our shareowners," chairman and CEO Lowell McAdam. "I am confident that Verizon's assets and market momentum position us to continue to drive profitable growth in 2015."
Verizon is guiding for "at least 4%" 2015 revenue growth, above a 2.6% consensus.