Verizon Communications Inc. (VZ, Financial) filed Quarterly Report for the period ended 2010-06-30.
Verizon Communications Inc. has a market cap of $81.72 billion; its shares were traded at around $28.91 with a P/E ratio of 12.6 and P/S ratio of 0.7. The dividend yield of Verizon Communications Inc. stocks is 6.5%. Verizon Communications Inc. had an annual average earning growth of 2.3% over the past 10 years.VZ is in the portfolios of Mark Hillman of Hillman Capital Management, George Soros of Soros Fund Management LLC, Charles Brandes of Brandes Investment, Arnold Van Den Berg of Century Management, NWQ Managers of NWQ Investment Management Co, James Barrow of Barrow, Hanley, Mewhinney & Strauss, Jeff Auxier of Auxier Focus Fund, Brian Rogers of T Rowe Price Equity Income Fund, John Buckingham of Al Frank Asset Management, Inc., Brian Rogers of T Rowe Price Equity Income Fund, Pioneer Investments, Jim Simons of Renaissance Technologies LLC, Jeremy Grantham of GMO LLC, David Dreman of Dreman Value Management, Bill Frels of Mairs & Power Inc. , Richard Snow of Snow Capital Management, L.P., Murray Stahl of Horizon Asset Management, Kenneth Fisher of Fisher Asset Management, LLC, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Dodge & Cox.
Consolidated revenues during the three months ended June 30, 2010 decreased by $88 million, or 0.3%, compared to the similar period in 2009, primarily due to declines in revenues at our Wireline segment resulting from switched access line losses and decreased MOUs in traditional voice products, partially offset by higher revenues in our growth markets. Consolidated revenues during the six months ended June 30, 2010 increased by $234 million, or 0.4%, compared to the similar period in 2009, primarily due to higher revenues in our growth markets. These revenue increases were partially offset by declines in revenues at our Wireline segment due to switched access line losses and decreased MOUs in traditional voice products.
Domestic Wireless revenues during the three months ended June 30, 2010 increased by $526 million, or 3.4%, and $1,187 million, or 3.9%, for the six months ended June 30, 2010, compared to the similar periods in 2009, primarily due to growth in service revenue. Service revenue during the three months ended June 30, 2010 increased by $697 million, or 5.2%, and $1,467 million, or 5.6%, for the six months ended June 30, 2010 compared to the similar periods in 2009 primarily due to a 4.4 million, or 5.0%, increase in total customers since July 1, 2009, as well as continued growth from data services, partially offset by a decline in wireless voice revenue.
Total wireless data revenue was $4,839 million and accounted for 34.5% of service revenue during the three months ended June 30, 2010, compared to $3,908 million and 29.3% during the similar period in 2009. Total wireless data revenue was $9,451 million and accounted for 33.9% of service revenue during the six months ended June 30, 2010, compared to $7,557 million and 28.6% during the similar period in 2009. Total data revenue continues to increase as a result of growth of our e-mail, Mobile Broadband and messaging services. Voice revenue decreased as a result of continued declines in our voice ARPU, partially offset by an increase in the number of customers.
Wirelines revenues during the three months ended June 30, 2010 decreased by $376 million, or 3.3%, and $711 million, or 3.1%, during the six months ended June 30, 2010, compared to the similar periods in 2009. Mass Markets revenues during the three months ended June 30, 2010 decreased by $9 million, or 0.2%, and $14 million, or 0.2%, during the six months ended June 30, 2010, compared to the similar periods in 2009, primarily due to a continued decline of local exchange revenues principally as a result of switched access line losses, partially offset by continued growth in consumer and business FiOS services (Voice, Internet and TV). Global Enterprise revenues increased by $26 million, or 0.6%, during the three months ended June 30, 2010, compared to the similar period in 2009, primarily due to higher customer premises equipment revenue, partially offset by lower long distance and traditional circuit-based revenues. Global Enterprise revenues decreased $31 million, or 0.4%, during the six months ended June 30, 2010, compared to the similar period in 2009, primarily due to lower long distance and traditional circuit-based data revenues, partially offset by higher customer premises equipment revenue. Global Wholesale revenues during the three months ended June 30, 2010 decreased by $202 million, or 8.3%, and $271 million, or 5.6%, during the six months ended June 30, 2010, compared to the similar periods in 2009, due to decreased MOUs in traditional voice products, increases in voice termination pricing on certain international routes and continued rate compression in the marketplace. Other revenue during the three months ended June 30, 2010 decreased by $191 million, or 45.9%, and $395 million, or 42.6%, during the six months ended June 30, 2010, compared to the similar periods in 2009, primarily due to reduced business volumes, including former MCI mass markets customer losses.
Consolidated cost of services and sales during the three months ended June 30, 2010 increased by $1,758 million, or 16.8%, and $2,167 million, or 10.4%, during the six months ended June 30, 2010, compared to the similar periods in 2009, primarily due to severance, pension and benefit charges recorded during the three and six months ended June 30, 2010 as well as other non-operational charges noted in the table below. Also contributing to the increases were an increase in content costs, higher circuit expense and customer premise equipment costs partially offset by lower headcount and productivity improvements at our Wireline segment. Wireless network costs also increased as a result of an increase in operating lease expense and local interconnection cost.
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Verizon Communications Inc. has a market cap of $81.72 billion; its shares were traded at around $28.91 with a P/E ratio of 12.6 and P/S ratio of 0.7. The dividend yield of Verizon Communications Inc. stocks is 6.5%. Verizon Communications Inc. had an annual average earning growth of 2.3% over the past 10 years.VZ is in the portfolios of Mark Hillman of Hillman Capital Management, George Soros of Soros Fund Management LLC, Charles Brandes of Brandes Investment, Arnold Van Den Berg of Century Management, NWQ Managers of NWQ Investment Management Co, James Barrow of Barrow, Hanley, Mewhinney & Strauss, Jeff Auxier of Auxier Focus Fund, Brian Rogers of T Rowe Price Equity Income Fund, John Buckingham of Al Frank Asset Management, Inc., Brian Rogers of T Rowe Price Equity Income Fund, Pioneer Investments, Jim Simons of Renaissance Technologies LLC, Jeremy Grantham of GMO LLC, David Dreman of Dreman Value Management, Bill Frels of Mairs & Power Inc. , Richard Snow of Snow Capital Management, L.P., Murray Stahl of Horizon Asset Management, Kenneth Fisher of Fisher Asset Management, LLC, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Dodge & Cox.
Highlight of Business Operations:
As a condition of the regulatory approvals by the Department of Justice (DOJ) and the Federal Communications Commission (FCC) to complete the acquisition of Alltel Corporation (Alltel) in January 2009, Verizon Wireless was required to divest overlapping properties in 105 operating markets in 24 states (Alltel Divestiture Markets). On May 8, 2009, Verizon Wireless entered into a definitive agreement with AT&T Mobility LLC (AT&T Mobility), a subsidiary of AT&T Inc., pursuant to which AT&T Mobility agreed to acquire 79 of the 105 Alltel Divestiture Markets, including licenses and network assets, for approximately $2.4 billion in cash. On June 9, 2009, Verizon Wireless entered into a definitive agreement with Atlantic Tele-Network, Inc. (ATN), pursuant to which ATN agreed to acquire the remaining 26 Alltel Divestiture Markets, including licenses and network assets, for $200 million in cash. During the second quarter of 2010, Verizon Wireless received the necessary regulatory approvals and completed both transactions. The Verizon Wireless customer base was reduced by approximately 2.1 million customers, partially offset by certain adjustments.Consolidated revenues during the three months ended June 30, 2010 decreased by $88 million, or 0.3%, compared to the similar period in 2009, primarily due to declines in revenues at our Wireline segment resulting from switched access line losses and decreased MOUs in traditional voice products, partially offset by higher revenues in our growth markets. Consolidated revenues during the six months ended June 30, 2010 increased by $234 million, or 0.4%, compared to the similar period in 2009, primarily due to higher revenues in our growth markets. These revenue increases were partially offset by declines in revenues at our Wireline segment due to switched access line losses and decreased MOUs in traditional voice products.
Domestic Wireless revenues during the three months ended June 30, 2010 increased by $526 million, or 3.4%, and $1,187 million, or 3.9%, for the six months ended June 30, 2010, compared to the similar periods in 2009, primarily due to growth in service revenue. Service revenue during the three months ended June 30, 2010 increased by $697 million, or 5.2%, and $1,467 million, or 5.6%, for the six months ended June 30, 2010 compared to the similar periods in 2009 primarily due to a 4.4 million, or 5.0%, increase in total customers since July 1, 2009, as well as continued growth from data services, partially offset by a decline in wireless voice revenue.
Total wireless data revenue was $4,839 million and accounted for 34.5% of service revenue during the three months ended June 30, 2010, compared to $3,908 million and 29.3% during the similar period in 2009. Total wireless data revenue was $9,451 million and accounted for 33.9% of service revenue during the six months ended June 30, 2010, compared to $7,557 million and 28.6% during the similar period in 2009. Total data revenue continues to increase as a result of growth of our e-mail, Mobile Broadband and messaging services. Voice revenue decreased as a result of continued declines in our voice ARPU, partially offset by an increase in the number of customers.
Wirelines revenues during the three months ended June 30, 2010 decreased by $376 million, or 3.3%, and $711 million, or 3.1%, during the six months ended June 30, 2010, compared to the similar periods in 2009. Mass Markets revenues during the three months ended June 30, 2010 decreased by $9 million, or 0.2%, and $14 million, or 0.2%, during the six months ended June 30, 2010, compared to the similar periods in 2009, primarily due to a continued decline of local exchange revenues principally as a result of switched access line losses, partially offset by continued growth in consumer and business FiOS services (Voice, Internet and TV). Global Enterprise revenues increased by $26 million, or 0.6%, during the three months ended June 30, 2010, compared to the similar period in 2009, primarily due to higher customer premises equipment revenue, partially offset by lower long distance and traditional circuit-based revenues. Global Enterprise revenues decreased $31 million, or 0.4%, during the six months ended June 30, 2010, compared to the similar period in 2009, primarily due to lower long distance and traditional circuit-based data revenues, partially offset by higher customer premises equipment revenue. Global Wholesale revenues during the three months ended June 30, 2010 decreased by $202 million, or 8.3%, and $271 million, or 5.6%, during the six months ended June 30, 2010, compared to the similar periods in 2009, due to decreased MOUs in traditional voice products, increases in voice termination pricing on certain international routes and continued rate compression in the marketplace. Other revenue during the three months ended June 30, 2010 decreased by $191 million, or 45.9%, and $395 million, or 42.6%, during the six months ended June 30, 2010, compared to the similar periods in 2009, primarily due to reduced business volumes, including former MCI mass markets customer losses.
Consolidated cost of services and sales during the three months ended June 30, 2010 increased by $1,758 million, or 16.8%, and $2,167 million, or 10.4%, during the six months ended June 30, 2010, compared to the similar periods in 2009, primarily due to severance, pension and benefit charges recorded during the three and six months ended June 30, 2010 as well as other non-operational charges noted in the table below. Also contributing to the increases were an increase in content costs, higher circuit expense and customer premise equipment costs partially offset by lower headcount and productivity improvements at our Wireline segment. Wireless network costs also increased as a result of an increase in operating lease expense and local interconnection cost.
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