Verizon Loss Widens In Q4 On Sandy Expenses
Despite a record 9.8 million smartphone activations, including 6.2 million iPhones, Verizon reported a loss of $4.22 billion, or $1.48 a share, in the fourth quarter because of costs related to Superstorm Sandy and pension expenses.That's double a year-earlier loss of $2 billion, or 71 cents a share.
On an adjusted basis, the carrier earned 38 cents a share.
Revenue increased 5.7% to $30 billion. Wall Street analysts expected Verizon to post earnings of 52 cents a share on revenue of $29.75.
The nation’s largest carrier added 2.1 million contract subscribers in Q4 and 5 million in 2012, the most in four years. Of the 6.2 million iPhones activated, the 4G-powered iPhone 5 accounted for half of total sales. Most of the remaining 3.6 million smartphones activated were Android devices.
Verizon’s wireless business, which is jointly owned by Vodafone, had revenue of $20 billion in the quarter, up 9.5% from a year ago. The wireline business, by contrast, saw sales declined 1.5% to $10 billion.
The company’s FiOS broadband unit, meanwhile, added 144,000 new customers and FiOS TV added 134,000 net new customers.