Verizon announces increased revenues for the second quarter of 2010

July 24th, 2010 - 12:12 am ICT by BNO News  

NEW YORK (BNO NEWS) – Verizon on Friday presented its reports for the second quarter of 2010, announcing a strong cash flow growth, improved margins for both its Wireless and Wireline business segments, and increased revenues from sales to global business customers.

But the company also reported that it suffered a loss of 7 cents in basic earnings per share (EPS) in the quarter, including $2.3 billion in pre-tax costs for workforce reductions related to an incentive offer that will lead to the voluntary separation of 11,000. In the second quarter of 2009, Verizon recorded earnings of 52 cents in EPS.

“Verizon showed solid improvement in operational results in the quarter. We have the network platforms in place, and the product and service innovations in the pipeline, to fuel the next generation of growth in our changing industry. Our cost-reduction efforts are gaining momentum, and trends in the global business market are showing signs of stabilization,” said Verizon Chairman and CEO Ivan Seidenberg.

Verizon’s total operating revenues were $26.8 billion in second-quarter 2010, a decrease of 0.3 percent compared with second-quarter 2009. Cash flow from operators totaled $16.9 billion in the first half of 2010, compared with $14.1 billion in the first half of 2009. For the second quarter, the operations totaled $9.8 billion in 2010, 29.8 percent above from the 2009 figures.

The company’s net debt was $52.7 billion at the end of the second-quarter 2010; Verizon expects it to be lower by the end of the year.

On the other hand, Verizon Wireless continued to deliver strong margins and data revenue growth, and solid customer additions in the second quarter. Wireless added 665,000 retail postpaid and 454,000 total retail customers in the period.

Verizon Wireless’ total number of customers was 92.1 million, after the addition of 1.4 million total net customers and removing 2.1 million customers in connection with divestitures and conforming adjustments related to the Alltel acquisition. In the second quarter, data revenues increased to 34.5 percent of all service revenues, up from 29.3 percent in the second quarter 2009. In addition to winning new business with a number of multinational corporate customers, Verizon entered into new agreements with several government agencies, including the U.S. Department of Health and Human Services.

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