Friday, April 15, 2016

Fixed Network Now Drives Just 7% of Verizon Operating Income

If you wanted a one-sentence description of how the U.S. fixed network business has been transformed over the last 15 years, here it is: “Wireline now accounts for less than 30 percent of Verizon’s total operating revenues, down from 60 percent in 2000, and less than seven percent of our operating income,” noted Verizon Communications CEO Lowell McAdam.

In the fiscal year ended December 31, 2014, Verizon generated $127.1 billion of total revenues.
Fully $87.6 billion revenues, 69 percent of total, came from the mobile segment.

Verizon generated $38.4 billion revenues, 30 percent of the total, from fixed networks. Verizon generated $18.0 billion (47 percent) from mass markets, $13.7 billion (36 percent)  from global enterprise, $6.2 billion (16 percent) from global wholesale, and $0.5 billion (one percent) from other operations.

As often is the case, revenue contribution and profit contribution can vary. Fixed network operating income margin was 4.3 percent in first-quarter 2015, Verizon reported. In first-quarter 2015, mobile segment operating income margin was 35 percent.

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