Telecommunications giant Verizon Wireless finished 2013 on a strong note, the company announced Tuesday morning: the wireless provider edged above Street expectations with its fourth quarter 2013 revenue and earnings per share. In a separate announcement, the company also announced it is purchasing the assets of Intel Media, Intel’s business division dedicated to the development of cloud TV products and services.
Verizon reported $31.1 billion in fourth quarter revenue, a 3.4% increase over the same time last year and a hair above analyst predictions of $31 billion. Net income came in at $7.9 billion, resulting in earnings of $1.76 per share. On a non-GAAP basis, fourth quarter earnings per share came in at 66 cents per share, a penny above Street consensus and a whopping 73.7% increase over the fourth quarter of 2012 (which was affected by Superstorm Sandy).
On a full-year basis, Verizon reported earnings of $4.00 per share in 2013, compared with earnings of 31 cents per share in 2012. Citing revenue growth across Verizon Wireless, FiOS and other enterprise services, Verizon said it generated total operating revenues of $120.6 billion for full-year 2013, an increase of 4.1%, or $4.7 billion, compared with 2012.
“Verizon delivered a total return of 18.6 percent to our shareholders in 2013, while attracting more customers than our competitors and improving our financial performance. This included more than 20 percent year-over-year increases in operating cash flow and EPS,” Lowell McAdam, Verizon chairman and CEO, said in a statement Tuesday morning. “In 2014, we look forward to acquiring sole ownership of Verizon Wireless, the best asset in the global wireless industry, and leveraging all our assets to deliver innovative products to customers and more value to shareholders.”
In good news for the company but less so for consumers, the wireless provider’s quarterly results were boosted in part by higher phone bills: the company said average revenue per account grew 7.1% to $157.21 per month.
Verizon added 1.6 million subscribers in the quarter, 218,000 of which were either FiOS Internet or FiOS video net additions. FiOS as a whole saw a 15.6% year-over-year increase in revenue.
The company recorded a charge of $540 million, or 19 cents per share, for transaction costs related to the acquisition of Vodafone’s U.S. holdings. Assuming approval of Verizon and Vodafone shareholders later this month, the closing of the acquisition is planned for Feb. 21 and would be immediately accretive to earnings by about 10 %, Verizon said. Verizon received the necessary FCC permissions for the deal in December.
In a separate announcement released Tuesday morning, Verizon said it is acquiring from Intel (for an undisclosed amount) the assets of Intel Media, a division dedicated to the development of cloud products. Intel’s primary TV product, the OnCue, will be integrated with Verizon’s fiber-optic services and enhance the company’s offerings. Specifically, Verizon said, OnCue is expected to make for better search and discovery of television content and allow for cross-screen use.
“The OnCue platform and team will help Verizon bring next-generation video services to audiences who increasingly expect to view content when, where and how they want it,” Verizon’s McAdam said in a statement Tuesday morning. “We will have the opportunity to enhance, expand, accelerate and integrate our delivery of video products and services to better serve audiences on a wide array of devices.”
Added Brian Krzanich, CEO of Intel, in a statement, “Intel Media’s over-the-top TV products are truly innovative and under Verizon’s ownership have the potential to change how people interact with content.”
Michael Rollins, an analyst with Citi Research, said in a note Tuesday morning that the Intel acquisition strengthens Verizon’s assets, and that Citi is retaining its buy rating on the company. Rollins’ price target for Verizon is $53 per share.
Following the release of its fourth quarter earnings and announcement of the Intel acquisition, shares of Verizon ticked up about 1.1%, opening at $48.66. Intel, meanwhile, took a 1% dip in early Tuesday trading, while Vodafone was essentially flat, down just 0.08%. In 2013 Vodafone was the winner of the group, finishing the year with a 53.3% return against Intel’s 21.4% gain and Verizon’s 11% return.
Telecommunications giant Verizon Wireless finished 2013 on a strong note, the company announced Tuesday morning: the wireless provider edged above Street expectations with its fourth quarter 2013 revenue and earnings per share. In a separate announcement, the company also announced it is purchasing the assets of Intel Media, Intel’s business division dedicated to the development of cloud TV products and services.
Verizon reported $31.1 billion in fourth quarter revenue, a 3.4% increase over the same time last year and a hair above analyst predictions of $31 billion. Net income came in at $7.9 billion, resulting in earnings of $1.76 per share. On a non-GAAP basis, fourth quarter earnings per share came in at 66 cents per share, a penny above Street consensus and a whopping 73.7% increase over the fourth quarter of 2012 (which was affected by Superstorm Sandy).
On a full-year basis, Verizon reported earnings of $4.00 per share in 2013, compared with earnings of 31 cents per share in 2012. Citing revenue growth across Verizon Wireless, FiOS and other enterprise services, Verizon said it generated total operating revenues of $120.6 billion for full-year 2013, an increase of 4.1%, or $4.7 billion, compared with 2012.
“Verizon delivered a total return of 18.6 percent to our shareholders in 2013, while attracting more customers than our competitors and improving our financial performance. This included more than 20 percent year-over-year increases in operating cash flow and EPS,” Lowell McAdam, Verizon chairman and CEO, said in a statement Tuesday morning. “In 2014, we look forward to acquiring sole ownership of Verizon Wireless, the best asset in the global wireless industry, and leveraging all our assets to deliver innovative products to customers and more value to shareholders.”
In good news for the company but less so for consumers, the wireless provider’s quarterly results were boosted in part by higher phone bills: the company said average revenue per account grew 7.1% to $157.21 per month.
Verizon added 1.6 million subscribers in the quarter, 218,000 of which were either FiOS Internet or FiOS video net additions. FiOS as a whole saw a 15.6% year-over-year increase in revenue.
The company recorded a charge of $540 million, or 19 cents per share, for transaction costs related to the acquisition of Vodafone’s U.S. holdings. Assuming approval of Verizon and Vodafone shareholders later this month, the closing of the acquisition is planned for Feb. 21 and would be immediately accretive to earnings by about 10 %, Verizon said. Verizon received the necessary FCC permissions for the deal in December.
In a separate announcement released Tuesday morning, Verizon said it is acquiring from Intel (for an undisclosed amount) the assets of Intel Media, a division dedicated to the development of cloud products. Intel’s primary TV product, the OnCue, will be integrated with Verizon’s fiber-optic services and enhance the company’s offerings. Specifically, Verizon said, OnCue is expected to make for better search and discovery of television content and allow for cross-screen use.
“The OnCue platform and team will help Verizon bring next-generation video services to audiences who increasingly expect to view content when, where and how they want it,” Verizon’s McAdam said in a statement Tuesday morning. “We will have the opportunity to enhance, expand, accelerate and integrate our delivery of video products and services to better serve audiences on a wide array of devices.”
Added Brian Krzanich, CEO of Intel, in a statement, “Intel Media’s over-the-top TV products are truly innovative and under Verizon’s ownership have the potential to change how people interact with content.”
Michael Rollins, an analyst with Citi Research, said in a note Tuesday morning that the Intel acquisition strengthens Verizon’s assets, and that Citi is retaining its buy rating on the company. Rollins’ price target for Verizon is $53 per share.
Following the release of its fourth quarter earnings and announcement of the Intel acquisition, shares of Verizon ticked up about 1.1%, opening at $48.66. Intel, meanwhile, took a 1% dip in early Tuesday trading, while Vodafone was essentially flat, down just 0.08%. In 2013 Vodafone was the winner of the group, finishing the year with a 53.3% return against Intel’s 21.4% gain and Verizon’s 11% return.
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