Verizon Reports Loss Despite 'record-high' Subscribers in Q4 2012

Discussion in 'Android News' started by dgstorm, Jan 22, 2013.

  1. dgstorm
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    dgstorm Editor in Chief Staff Member Premium Member

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    It looks like Verizon actually had a pretty good year despite some behind the scenes problems with pension funds and super-storms. Verizon just shared their financials for the Q4 2012 and had "record-high" subscriber increases. It also saw its revenue grow, yet despite this, the company ended up posting a net loss of $1.93 Billion. This was because of unexpected additional costs from Hurricane Sandy repairs and from pension plan issues. Here's the full press release,

  2. kodiak799
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    kodiak799 Silver Member

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    So, a couple conclusions:

    1) Contrary to popular opinion, "greedy" VZW is not gouging its customers with unfair prices. The network is a little more expensive to maintain and build than people realize.

    2) For all threats to leave VZW because of said unfair pricing, subscriber numbers continue to hit records.
  3. trestevenson
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    trestevenson Active Member

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    Additionally, I found this particular snippet interesting:

    Verizon maintained a strong balance sheet, with year-end 2012 total debt of $52.0 billion, down from $55.2 billion at year-end 2011.

    This seems to backup your assertions as well. The company overall is still carrying a substantial amount of debt.
  4. 52brandon
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    52brandon Active Member

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    you're right, perhaps the blame was placed unfairly on the company. When it should in fact be placed on the corporate officers themselves. Being upside down because of pension funds hardly screams "about the customer"
  5. kodiak799
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    kodiak799 Silver Member

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    Many other companies, and governments, are equally struggling with pensions. Most mature pensions were founded on 9% guaranteed returns, which back in the day tracked average market investment gains. But obviously the last decade has been brutal, with some huge drawdowns and returns annualizing closer to 5%. That's left a lot of these underfunded as a result. It's not mismanagement so much as bad expectations tracing back some 30 years ago.

    Regardless, pensions are part of employee/retiree expense. And that goes to the bottom line, justifiably, like everything else.
    Last edited: Jan 23, 2013
  6. kodiak799
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    kodiak799 Silver Member

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    Could be. I'd have to do a deeper analysis to look at interest coverage and CF/Debt ratios to say if their debt load is high or not. But I would guess it is higher than historically while they've invested in LTE infrastructure.