Telecommunications giant Verizon (NYSE:VZ, news, filings) reported it's Q4 and full year results this morning, opening earnings season with ... well not with a bang but not a whimper either. When you're as big and diverse as these guys are, I guess it's hard to sneak up on anyone. Revenues of $27.1B were in-line, as were adjusted earnings per share of $0.54. Wireless subscriber additions of 2.2M were higher than expected, but most of that came through wholesale. Total wireline subscribers 'shockingly' continued to decline, falling to 32.56M, down 10% on the year.
The biggest news the media latched on to was the non-recurring $3B in charges due to layoffs and severance. Now on the one hand, this isn't news at all because we all knew the jobs had been cut and we all knew they would take a big charge for it. On the other hand, given the shrinking wireline customer base and the steady workforce reductions that must accompany it - perhaps I shouldn't use the phrase 'non-recurring' so freely. The company cut some 13,000 workers from the wireline business in 2009, and expects the same in 2010. At some point, things will level off and FIOS will dominate the wireline biz, but until then you'd better hold on tight guys.
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