Verizon has just announced their operating results for the final quarter of 2011. Big Red saw a $2.02 Billion loss due largely to a $3.4 Billion pension revaluation charged in the quarter. The loss is down from a $2.64 Billion profit in the Q4 2010. The loss comes despite outstanding revenues generated in wireless (record-breaking) and FiOS business lines.
The other main factor in Verizon’s 4th quarter financials is the iPhone, which Verizon and anyone else who carries the device sells at a loss in an attempt to bring in new customers to sign up for hefty voice and data plans. Verizon sold over 4 million iPhone’s in the 4th quarter, comprising 52% of Verizon’s total smartphone sales for the quarter, and placing iPhone sales well ahead of sales of Android devices.
We fully expect Verizon to return to profitability in the next quarter, as the pension charge was a one time charge against earnings Verizon needed to put on the books. Verizon saw a 19% increase in data sales, and a record 13% increase in revenue from their wireless business, and Verizon would have had a profit of $1.38 Billion if they hadn’t incurred the pension charge. Quite the strong quarter for a $2.02 Billion loss if you ask us.
Verizon ended the year with an astounding $70.2 Billion total revenue, up nearly 11% from 2010 performance. All in all, Verizon’s having one hell of a year, a trend that’s likely to continue well into 2012.