Earnings: VZ Q1 Profits Dipped On Cost Of Absorbing MCI

Still absorbing the costs of the MCI acquisition, Verizon’s 1Q06 profits dipped year over year to $1.6 billion, or 56 cents a share, from $1.757 billion, or 63 cents a share. The company expects it to be the lowest quarter this year. Some bulletpoints:
— By the end of 1Q06, Verizon Wireless had 26.1 million data customers — a 47-percent increase over 1Q05 — and had more than doubled services revenue year over year to $872 million. Data accounts for nearly one-third of Verizon wireline revenues.
— Verizon has 57 video franchise agreements covering 1 million-plus households in 9 states and is selling FiOS TV in limited markets in seven states.
— 80 percent of FiOS subs are triple-play customers; one out of two new customers get all three services.
— More than 60 percent of video subs take advanced set-tops with either DVRs, HD or both.
— While the lion’s share of video attention is on Verizon’s FiOS efforts, subscribers to the company’s DirecTV bundle hit 415,000 during 1Q06, up 66,000 from the end of 2005.
— 6.2 million customers had 3G EV-DO broadband-capable devices by the end of the first quarter
— During the quarter, Verizon Wireless customers sent 9.6 billion text messages and 171 million-plus picture and audio messages.
— Nearly 45 million ringtones , games, ringbacks and exclusive content were downloaded. (Does not say how many were billable to consumer.) Earnings release | Financials | Webcast (replay) | Slides | Transcript (company provided)

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