Verizon Communications Inc. (VZ, Financial) filed Quarterly Report for the period ended 2012-09-30.
Verizon Communications Inc. has a market cap of $128.68 billion; its shares were traded at around $44.25 with a P/E ratio of 18.9 and P/S ratio of 1.2. The dividend yield of Verizon Communications Inc. stocks is 4.6%. Verizon Communications Inc. had an annual average earning growth of 2.3% over the past 10 years. GuruFocus rated Verizon Communications Inc. the business predictability rank of 4-star.
Equity in earnings of unconsolidated businesses decreased $63 million, or 50.4%, and $110 million, or 31.7%, during the three and nine months ended September 30, 2012, respectively, compared to the similar periods in 2011. The decrease during both periods was primarily due to lower earnings from operations at Vodafone Omnitel N.V. and, to a lesser extent, the devaluation of the Euro against the U.S. dollar.
The increase in retail postpaid ARPA for the three and nine months ended September 30, 2012 compared to the similar periods in 2011 was primarily driven by increases in smartphone penetration and in retail postpaid connections per account. The proportion of our retail postpaid phone base utilizing smartphones increased to 53.2% as of September 30, 2012 compared to 39.2% at September 30, 2011 and retail postpaid connections per account increased by 4.0% as of September 30, 2012 compared to September 30, 2011. The increase in retail postpaid connections per account is primarily due to increases in Internet data devices, which represented 8.8% of our retail postpaid connection base as of September 30, 2012 compared to 7.8% as of September 30, 2011, primarily due to strong sales of jetpacks.
We continued to grow our subscriber base and consistently improved penetration rates within our FiOS service areas in the three and nine months ended September 30, 2012. Revenue from FiOS services represented 66% and 65% of Consumer retail revenue during the three and nine months ended September 30, 2012, respectively, compared to 59% and 57% in the similar periods in 2011. As of September 30, 2012, we achieved penetration rates of 37.0% and 32.9% for FiOS Internet and FiOS Video, respectively, compared to penetration rates of 34.6% and 30.6% for FiOS Internet and FiOS Video, respectively, at September 30, 2011. Also contributing to the increase in revenue from FiOS services during the three and nine months ended September 30, 2012, were changes in our pricing strategies adopted in 2012. During the third quarter of 2011, FiOS subscriber growth was lower than in prior quarters due to installation delays caused by storm conditions in the Mid-Atlantic and Northeast regions coupled with the work stoppage of our union-represented employees in August 2011.
Global Enterprise revenues decreased during the three and nine months ended September 30, 2012 compared to the similar periods in 2011 primarily due to lower local services and traditional circuit-based revenues, a decline in customer premise equipment revenues and the unfavorable impact of foreign currency translation. Core services, which consist of traditional circuit-based services such as frame relay, private line and Asynchronous Transfer Mode services, declined compared to the similar periods last year as our customer base continues to migrate to next generation IP services. The decline in customer premise equipment revenues reflects our focus on improving margins by de-emphasizing sales of equipment that are not part of an overall enterprise solutions bundle. This decrease was partially offset by higher Strategic services revenues. Strategic services revenue increased $0.1 billion, or 4.4%, and $0.4 billion, or 6.6%, respectively, during the three and nine months ended September 30, 2012 compared to the similar periods in 2011 primarily due to growth in advanced services, such as managed network, contact center solutions, IP communications and our cloud and data center offerings.
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Verizon Communications Inc. has a market cap of $128.68 billion; its shares were traded at around $44.25 with a P/E ratio of 18.9 and P/S ratio of 1.2. The dividend yield of Verizon Communications Inc. stocks is 4.6%. Verizon Communications Inc. had an annual average earning growth of 2.3% over the past 10 years. GuruFocus rated Verizon Communications Inc. the business predictability rank of 4-star.
Highlight of Business Operations:
In our Wireless business, during the three months ended September 30, 2012 compared to the similar period in 2011, strong revenue growth of 7.3% was driven by strong demand for smartphones and Internet data devices. At September 30, 2012, smartphones represented 53.2% of our retail postpaid phone base, and we also experienced a 4.0% increase in retail postpaid connections per account as compared to September 30, 2011.Equity in earnings of unconsolidated businesses decreased $63 million, or 50.4%, and $110 million, or 31.7%, during the three and nine months ended September 30, 2012, respectively, compared to the similar periods in 2011. The decrease during both periods was primarily due to lower earnings from operations at Vodafone Omnitel N.V. and, to a lesser extent, the devaluation of the Euro against the U.S. dollar.
The increase in retail postpaid ARPA for the three and nine months ended September 30, 2012 compared to the similar periods in 2011 was primarily driven by increases in smartphone penetration and in retail postpaid connections per account. The proportion of our retail postpaid phone base utilizing smartphones increased to 53.2% as of September 30, 2012 compared to 39.2% at September 30, 2011 and retail postpaid connections per account increased by 4.0% as of September 30, 2012 compared to September 30, 2011. The increase in retail postpaid connections per account is primarily due to increases in Internet data devices, which represented 8.8% of our retail postpaid connection base as of September 30, 2012 compared to 7.8% as of September 30, 2011, primarily due to strong sales of jetpacks.
We continued to grow our subscriber base and consistently improved penetration rates within our FiOS service areas in the three and nine months ended September 30, 2012. Revenue from FiOS services represented 66% and 65% of Consumer retail revenue during the three and nine months ended September 30, 2012, respectively, compared to 59% and 57% in the similar periods in 2011. As of September 30, 2012, we achieved penetration rates of 37.0% and 32.9% for FiOS Internet and FiOS Video, respectively, compared to penetration rates of 34.6% and 30.6% for FiOS Internet and FiOS Video, respectively, at September 30, 2011. Also contributing to the increase in revenue from FiOS services during the three and nine months ended September 30, 2012, were changes in our pricing strategies adopted in 2012. During the third quarter of 2011, FiOS subscriber growth was lower than in prior quarters due to installation delays caused by storm conditions in the Mid-Atlantic and Northeast regions coupled with the work stoppage of our union-represented employees in August 2011.
Global Enterprise revenues decreased during the three and nine months ended September 30, 2012 compared to the similar periods in 2011 primarily due to lower local services and traditional circuit-based revenues, a decline in customer premise equipment revenues and the unfavorable impact of foreign currency translation. Core services, which consist of traditional circuit-based services such as frame relay, private line and Asynchronous Transfer Mode services, declined compared to the similar periods last year as our customer base continues to migrate to next generation IP services. The decline in customer premise equipment revenues reflects our focus on improving margins by de-emphasizing sales of equipment that are not part of an overall enterprise solutions bundle. This decrease was partially offset by higher Strategic services revenues. Strategic services revenue increased $0.1 billion, or 4.4%, and $0.4 billion, or 6.6%, respectively, during the three and nine months ended September 30, 2012 compared to the similar periods in 2011 primarily due to growth in advanced services, such as managed network, contact center solutions, IP communications and our cloud and data center offerings.
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