Verizon reported a 7.7 percent annual rise in revenues for the fourth quarter, driven by strong demand for smartphones and mobile data services. Revenues increased to USD 28.4 billion, fueled by the start of iPhone 4S sales and a 19.2 percent rise in mobile data service revenues. At Verizon Wireless, total revenues were up 13.0 percent to USD 13.2 billion, while the service revenues rose a slower 6.4 percent to USD 15.1 billion. The extra costs for selling the iPhone put pressure on the EBITDA margin, which fell 530 basis points from a year earlier to 42.2 percent of service revenue. The mobile operator added a net 1.0 million new lines in the quarter, as 1.5 million new retail subscribers was offset by a loss of 490,000 wholesale lines, mainly in telematics. At year-end, the company had 108.7 million mobile lines, up 6.3 percent year-over-year, of which 92.2 million were retail. The wireline division posted sales down 1.5 percent to USD 10.1 billion and EBITDA flat at USD 2.4 billion. The broadband base grew by a net 98,000 from September, as 201,000 new Fios customers offset the loss of DSL subscribers. Voice connections were down 7.2 percent year-on-year to 24.1 million, while the Fios TV base grew by 194,000 in the quarter to 4.2 million. Global enterprise revenues rose 1.3 percent from a year ago to USD 3.9 billion. Verizon reported a net loss of 71 cents per share, versus a profit of 93 cents a year earlier. Excluding one-time charges for its pension liabilities, EPS fell to USD 0.52 from USD 0.54. Cash flow from operating activities totaled USD 29.8 billion in 2011, and capital expenditures reached USD 16.2 billion over the full year. Verizon said it expects wireline margins to increase in 2012, while the strong sales in wireless in Q4 and expansion of LTE services should prepare the company for long-term growth in mobile.
