3rd Quarter 2009 Results

[Mobile Mike]

Post any and all information on wireless industry quarterly financials in this thread.

[hf1khal]

Article: AT&T Q3 EPS Tops Street; Big Quarter For iPhone - Tech Trader Daily - Barrons.com

Thursday, October 22, 2009 ET.AT&T Q3 EPS Tops Street; Big Quarter For iPhone.By Eric Savitz
AT&T (T) this morning posted better-than-forecast profits for the third quarter, getting a big boost from the Apple (AAPL) iPhone.

For the quarter, the company posted revenue of $30.9 billion, in line with the Street, with diluted EPS of 54 cents a share, ahead of the Street at 50 cents. Revenue was down from $31.3 billion a year ago.

AT&T added 2 million total wireless subs in the quarter, up 2.5% from a year ago, and the third highest quarterly net gain in the company’s history, to reach 81.6 million total customers; that’s, up 6.7 million, or 9%, over the past year. Postpaid net adds were 1.4 million, down 18.2% from the year ago quarter; total post-paid customers reached 63.4 million, up 8%.

The company noted that wireless churn at 1.17% was lowest ever for a third quarter. Postpaid subscriber ARPU was up 3.8%; 4.3 million post-paid 3G devices were added to the the network, including 3.2 million iPhone activations, the highest ever for one quarter. Wireless data revenue was up 33.6% to $3.6 billion.

Meanwhile, U-verse had 240,000 net TV subscriber adds, to reach 1.8 million subscribers.

Total retail consumer wireline voice connections tumbled 11%, as many people continued to give up traditional phone lines.

This morning, AT&T is up 56 cents, or 2.2%, to $26.50.

[Mobile Mike]

I wonder where AT&T would be without all those iPhone activations? IMO, this looks precarious for AT&T.

[bobolito]

Now let's take all that profit and invest it in extra capacity for their congested network, and expand 3G coverage.

[JFB]

Here is Verizon's press release on their earnings.

Verizon Wireless and FiOS Growth Fuels Continued Strong Cash Flow at Verizon in 3Q

Gains Reported in Customers and Revenues for Wireless, Fiber-Optic Services

3Q 2009 HIGHLIGHTS

Consolidated Earnings
• 41 cents in EPS and 60 cents in adjusted EPS (non-GAAP), compared with 3Q 2008 EPS of 59 cents and 66 cents, respectively.
• $23.1 billion in cash flow from operations through the first nine months of 2009, up $3.2 billion, or 16.0 percent.
Wireless
• 89.0 million total customers, up 25.7 percent; 86.3 million retail customers, up 25.4 percent; 1.2 million net customer additions, excluding acquisitions and adjustments.
• 24.4 percent increase in total revenues compared with 3Q 2008; continued low retail postpaid churn, 1.13 percent; data revenues up 48.1 percent; 28.3 percent operating income margin and 46.1 percent EBITDA margin on service revenues (non-GAAP).
Wireline
• 198,000 net new FiOS Internet customers and 191,000 net new FiOS TV customers, with increased sales penetration for both services; 3.3 million total FiOS Internet customers and 2.7 million total FiOS TV customers.
• 12.6 percent increase in consumer ARPU.

NEW YORK -- Verizon Communications Inc. (NYSE:VZ) generated strong and improved cash flow in the third quarter 2009, with continued revenue and customer growth in wireless and broadband markets.

Verizon today reported diluted earnings per share (EPS) of 41 cents in the third quarter, compared with 59 cents per share in the third quarter 2008. On an adjusted basis (non-GAAP), Verizon posted EPS of 60 cents in the third quarter 2009, compared with 66 cents in the third quarter 2008.

Verizon’s total operating revenues grew 10.2 percent to $27.3 billion, compared with the third quarter 2008. This includes revenues from Alltel Corporation, which Verizon acquired in January 2009. On a pro forma basis (consolidating the operating results of Verizon and the former Alltel as though the acquisition had occurred on Jan. 1, 2008), operating revenue growth was 0.6 percent.

Cash flow from operations totaled $23.1 billion for the first nine months of 2009, up 16.0 percent, or $3.2 billion, over the same period last year. Free cash flow (cash flow from operations minus capital expenditures) totaled $10.7 billion, up $3.3 billion over the same period last year. Verizon paid shareowners $3.9 billion in dividends during the first three quarters of 2009, and its Board of Directors approved a 3.3 percent quarterly dividend increase last month.

Long-Term Shareowner Value

“Verizon continues to generate strong cash flow, which we have used in building the foundation for sustainable, long-term shareowner value,” said Verizon Chairman and CEO Ivan Seidenberg. “Even through the worst of the recession, we have continued to raise our dividend and to add new customers, expand markets and grow revenues based on the power and innovation of Verizon’s wireless, broadband and global networks.”

He added, “The Verizon network is now an engine for next-generation communications services that will create new short- and long-term opportunities for us. As the U.S. economic and employment picture improves, and as we accelerate reductions in our own cost structure, we are well-positioned to quickly and significantly improve our growth profile.”

Seidenberg also noted that a simplified organizational structure announced earlier this month will enable Verizon to achieve improved levels of productivity. The realignment has combined two former Wireline business groups, Verizon Telecom and Verizon Business, into one organization.

Wireless Delivers Industry-Leading Profitability, Strong Customer Growth

Verizon Wireless continued to lead the industry with the highest profit margins. In the third quarter 2009:
• Wireless retail (non-wholesale) gross customer additions were up 15.0 percent over the prior year. On a pro forma basis, retail gross customer additions decreased by 8.3 percent.
• Verizon Wireless had 89.0 million customers at the end of the quarter, an increase of 25.7 percent year over year, and 6.3 percent on a pro forma basis. Verizon Wireless is the largest wireless company in the U.S. in terms of total customers and revenues.
• The company also has the most retail customers of any U.S. wireless provider and continued to grow its high-quality base, adding 1.0 million net retail customers in the quarter, excluding acquisitions and adjustments, for a total of 86.3 million retail customers.
• Total churn and retail postpaid churn were 1.49 percent and 1.13 percent, respectively.
• Revenues totaled $15.8 billion, up 24.4 percent year over year and up 4.9 percent on a pro forma basis. Service revenues were $13.5 billion, up 23.7 percent year over year and up 6.1 percent on a pro forma basis as demand continued to grow for data services. Data revenue grew to $4.1 billion, up 48.1 percent and up 28.9 percent on a pro forma basis.
• Total service ARPU (average monthly service revenue per user) decreased 2.2 percent year over year and 0.8 percent on a pro forma basis to $51.04. Total data ARPU increased to $15.59, up 17.2 percent year over year and 20.7 percent on a pro forma basis.
• Wireless operating income margin, adjusted for merger integration and acquisition costs, was 28.3 percent, up 1.0 percentage point year over year and up 1.4 percentage points pro forma. Adjusted on the same basis, EBITDA (earnings before interest, taxes, depreciation and amortization) margin on service revenues (non-GAAP) was 46.1 percent, an increase of 1.9 percentage points year over year and 1.3 percentage points on a pro forma basis.

Continued Growth in Consumer Broadband and Video

In addition to strong Wireless results, Verizon posted another quarter of gains in the number of customers using fiber-optic-based FiOS Internet and FiOS TV services. In consumer markets served by Verizon’s wireline network, increased revenues from broadband and video services helped produce overall revenue growth, as well as ARPU growth. In the third quarter:
• Verizon added 198,000 net new FiOS Internet customers. The company served 3.3 million FiOS Internet customers by the end of the quarter, a 49.2 percent year-over-year increase.
• FiOS Internet penetration (customers as a percentage of potential customers) increased to 28.5 percent by the end of the third quarter, with the product available for sale to 11.5 million premises. This compares with a 24.2 percent penetration at the end of the third quarter 2008.
• Verizon also added 191,000 net new FiOS TV customers. The company served 2.7 million FiOS TV customers by the end of the quarter, a 67.7 percent year-over-year increase.
• FiOS TV penetration increased to 24.9 percent by the end of the third quarter, with the product available for sale to 10.9 million premises. This compares with a 19.7 percent penetration at the end of the third quarter 2008.
• Consumer broadband and video revenues in wireline mass markets (which include consumer and small-business customers) represented growth of 30.7 percent compared with the third quarter 2008. This increase contributed to 1.2 percent revenue growth in consumer markets served by Verizon’s wireline network.
• Revenue growth from broadband and video services boosted consumer ARPU to $75.04 in the third quarter 2009, a 12.6 percent year-over-year increase. FiOS ARPU is more than $137, driven primarily by “triple-play” bundles of voice, Internet and TV services.
• Worldwide sales of strategic business services -- such as IP (Internet protocol), managed services, Ethernet and security solutions -- generated $1.6 billion in revenue in the quarter, up 1.0 percent from the third quarter 2008.

Details of Earnings Adjustments

Adjusted earnings in the third quarter 2009 excluded 19 cents per share in special items: 13 cents for severance, pension and benefit charges in connection with pension settlements related to previously announced force reductions; 4 cents for merger integration and acquisition costs primarily in connection with the Alltel transaction; and 2 cents for costs related to the pending spinoff of non-strategic Wireline access lines. Third-quarter 2008 adjusted earnings excluded 7 cents per share in special items: 6 cents for severance, pension and benefit charges; and 1 cent for merger integration costs in connection with Verizon’s acquisition of MCI in 2006.

Additional Highlights

Wireless
• At the end of the third quarter 2009, retail customers (postpaid and prepaid) represented nearly 97 percent of the company’s customer base.

• Verizon Wireless continued to lead the industry in cost efficiency. Monthly cash expense per customer (non-GAAP) decreased in the third quarter 2009 to $27.52, from $28.42 in the comparable period in 2008 on a pro forma basis.

• In the third quarter, data revenues grew to 30.5 percent of all service revenues, up from 25.1 percent in the third quarter 2008 on a pro forma basis.

• Verizon Wireless continued to extend the reach of its broadband network, the nation’s largest and most reliable 3G (third-generation) network. Verizon’s 3G network provides more coverage than any U.S. carrier and is available to approximately 284 million people.

• Verizon Wireless marked a significant milestone in its LTE network deployment plans in August with the successful completion of the first LTE 4G (Long Term Evolution, fourth generation) test data calls over its 700 MHz spectrum in Boston and Seattle. The company also released updated specifications for wireless devices that will run on the LTE network. Verizon Wireless plans to offer commercial LTE-based service in the U.S. in 2010 in up to 30 markets.

• Verizon Wireless and Google have announced a strategic partnership that will leverage the Verizon Wireless network and the best of the Android open platform to deliver leading-edge mobile applications, services and devices. As a result of this agreement, consumers will have access to an array of products that combine the speed of the nation’s largest and most reliable 3G network with the flexibility of the Android mobile platform. Verizon Wireless expects to launch two Android-based devices before the end of the year.

• The company continued to roll out new devices, including the HTC Touch Pro2, a 3G global smartphone; the Samsung Rogue, with a full-touch display, QWERTY keyboard and one-touch access to popular social networking widgets; and the Nokia 7705 Twist, featuring a unique, swivel-open square shape.

• During the third quarter, Verizon Wireless customers sent or received more than 153 billion text messages. Customers also sent more than 2.8 billion picture/video messages and completed nearly 38 million music and video downloads.

Wireline
• Third-quarter operating revenues in the Wireline segment were $11.6 billion, a decline of 4.8 percent compared with the third quarter 2008. This is an improvement of 0.4 percentage points compared with the year-over-year revenue declines reported in the second quarter 2009.

• Broadband connections totaled 9.2 million at the end of the third quarter, an 8.5 percent year-over-year increase. This is a net increase of 63,000 from the second quarter 2009, as the increase in FiOS Internet connections more than offset a decrease in DSL-based High Speed Internet connections.

• Over the past year, Verizon has added 1.1 million FiOS TV customers and expanded the availability of FiOS triple-play bundles. Of the approximately 32 million total households in areas covered by Verizon’s wireline network, FiOS triple-play bundles were available to 10.9 million premises at the end of the third quarter 2009, compared with 8.2 million premises at the end of the third quarter 2008.

• As of the end of the quarter, the FiOS network passed 14.5 million premises, or approximately more than 45 percent of total households in areas covered by Verizon’s wireline network. This is on track to the end-of-year target of 15 million.

• For global and other large-business customers, Verizon unveiled a suite of managed solutions to help enterprises manage mobile devices, usage plans and applications across multiple carriers globally, along with new IT consulting services to support enterprise-wide mobility programs. The company also rolled out a next-generation managed security services platform for enterprises and a program to prevent hacker attacks on business applications.

• Continuing to widen and deepen its global scope and capabilities, Verizon extended availability of its on-demand, “cloud-based” Computing as a Service (CaaS) solution to the company’s Amsterdam data center. It also rolled out both its Managed Services portfolio and Remote IP Application Management service in India.

• New agreements with multinational customers included ING, Manulife, NYSE Euronext and Sandvik. Verizon also signed new contracts with several U.S. government agencies, including the U.S. Citizenship and Immigration Service.

[bobolito]

Wow, it looks like Verizon is hurting: AT&T added 1.3M postpaid and Verizon 0.9M. First time in history this happens on a consistent basis. No wonder they have commercials attacking AT&T. They never did that before.

[hf1khal]

Sprint Nextel Reports Third Quarter 2009 Results



--Achieved best net retail subscriber results in more than two years, driven by sequential improvement in both post-paid and prepaid gross subscriber additions

--Launched industry-leading Any Mobile, Anytime(SM) calling feature to eliminate mobile calling circles

--Seven consecutive quarters of improvement in Customer Care Satisfaction and First Call Resolution

--Extended 4G leadership into seventeen markets

--The company’s third quarter earnings conference call will be held at 8 a.m. EDT today. Participants may dial 800-938-1120 in the U.S. or Canada (706-634-7849 internationally) and provide the following ID: 29897906, or may listen via the Internet at Sprint Nextel Corporation - Investor Relations - Investor Relations.

Sprint Nextel Corp. (S) today reported third quarter 2009 financial results that included consolidated net operating revenues of $8.0 billion, a net loss of $478 million and a diluted loss per share of 17 cents. The company generated Free Cash Flow* of $664 million in the quarter and $2.1 billion year-to-date in 2009. As of September 30, 2009, the company had $5.9 billion in cash, cash equivalents and short-term investments and $1.6 billion in borrowing capacity available under its revolving bank credit facility, for total liquidity of $7.5 billion.

Sprint lost a total of 135,000 net retail subscribers in the quarter. The company’s year-over-year post-paid gross addition improvement was the best in Sprint Nextel history, and the sequential improvement was the best in more than five years. Net post-paid subscriber losses have improved by approximately 20 percent in each of the second and third quarters of 2009.

"Sprint achieved its best net retail subscriber results in more than two years and improvement in both post-paid and prepaid gross subscriber additions in the third quarter," said Dan Hesse, Sprint Nextel CEO. "Sprint is beginning to attract more customers with the industry’s best device line-up and the clarity and simplicity of our offers, seven sequential quarters of improvement in customer care satisfaction, a network declared to be most reliable by PC World magazine, and recognition from Newsweek magazine which ranked Sprint 15th of 500 companies on its 2009 Green Ratings list -- the only telecom company in the Top 100.

"The company again generated strong cash flow, and while Operating Income Before Depreciation and Amortization* (OIBDA) was impacted by costs associated with growth in customer additions, previous quarters’ subscriber losses and certain seasonal costs in the quarter, Sprint continues to manage costs rigorously. We expect to see sequential quarterly improvement in both post-paid and total net subscriber losses in the fourth quarter of 2009," Hesse said.

In 2009 Sprint has launched or announced 16 new touch, QWERTY and smart devices with a full selection of operating systems. They include Palm(R) Pre(TM) and Palm(R) Pixi(TM), Blackberry(R) Tour(TM); HTC Hero(TM) and Samsung Moment(TM) -- which are both based on Google’s Android(TM) platform; HTC Touch Pro 2, Samsung Instinct(R) HD, and Samsung Intrepid(TM), which offers the new Windows Mobile(R) 6.5 Professional operating system. In addition, Sprint launched the nation’s first full-featured, eco-friendly phone, Samsung Reclaim(TM) which earlier this month was given the "Hottest in Show" award at the CTIA Convention in San Diego.

Additionally, Sprint 4G is now available in 17 markets, including Philadelphia, PA, which launched earlier this week. Sprint 4G coverage should serve a population of more than 30 million people by the end of 2009, and cover a population of up to 120 million people in about 80 markets by the end of 2010. Sprint 4G service is planned for deployment in these additional markets in 2009: Austin, TX; Charlotte, NC; Chicago, IL; Dallas/Ft. Worth, TX; Greensboro, NC; Honolulu, HI; Maui, HI; Raleigh, NC; San Antonio, TX; and Seattle, WA.

Wireless Customers

-- The company served 48.3 million customers at the end of the third quarter of 2009, compared to 48.8 million at the end of the second quarter of 2009. This includes 33.6 million post-paid subscribers (25.0 million on CDMA, 7.8 million on iDEN, and 870,000 Power Source users who utilize both networks), 5.7 million prepaid subscribers (5.2 million on iDEN and 500,000 on CDMA) and 8.9 million wholesale and affiliate subscribers, all of whom utilize our CDMA network.

-- For the quarter, net retail subscribers declined by a total of 135,000 and net wireless customers declined by approximately 545,000, including net losses of 801,000 post-paid customers -- comprising 271,000 CDMA and 530,000 iDEN customers (including a net 64,000 customers who transferred from the iDEN network to the CDMA network). The company gained a net 801,000 prepaid iDEN customers, offset by net losses of 135,000 prepaid CDMA customers. The company also experienced a net loss of 410,000 wholesale and affiliate subscribers as a result of subscriber losses from our mobile virtual network operators and deactivation of open machine-to-machine devices that had been activated in the second quarter but may not be utilized.

-- The credit quality of our post-paid customers reached the company’s highest historical level of almost 85% prime and improved year-over-year from 83% at the end of the third quarter of 2008.

-- More than 9% of post-paid customers upgraded their handsets during the third quarter, a slight increase sequentially, resulting in increased contract renewals.

-- During the third quarter, the company added to its device line-up with the Blackberry(R) Tour(TM), Samsung Reclaim(TM), HTC Touch Pro 2 and Samsung Instinct(R) HD. In addition, Sprint launched HTC Hero(TM), Samsung Intrepid and Motorola Debut(TM) in October, with Samsung Moment(TM) and Palm(R) Pixi(TM) also planned for availability before the holidays.

Wireless Churn

-- Post-paid churn in the quarter was 2.17% compared to 2.15% in the year-ago period and 2.05% in the second quarter of 2009. The sequential increase is due to seasonality and heightened competition.

-- Prepaid churn in the third quarter of 2009 was 6.65%, compared to 8.16% in the year-ago period and 6.38% in the second quarter of 2009. The year-over-year improvement in churn is due to increased subscriber additions related to our national Boost Monthly Unlimited offering. The sequential increase in prepaid churn is related to seasonality and the significant growth of the Boost Monthly Unlimited customer base during the second quarter.

Continue reading here: EarningsWhispers.com Latest Earnings Release for Sprint Nextel Corp.

[Mobile Mike]

I guess the Palm Pre didn't have much of a sales effect for Sprint (at least that's how it appears...)

Too bad, because it is one sweet phone.

[Kalimotxo]

T-Mobile - Q3 - 2009

Source: T-Mobile USA Reports Third Quarter 2009 Results | Reuters

* $1.56 billion Operating Income Before Depreciation and Amortization ("OIBDA")
in the third quarter of 2009, up from $1.53 billion in the third quarter of
2008; OIBDA margin of 33% in the third quarter of 2009.
* Cash Cost Per User ("CCPU") of $23 during the third quarter of 2009, compared
to $25 in the third quarter of 2008.
* Aggressive build out of the 3G network continues with coverage reaching 167
million people, an increase of almost 50% in the quarter.
* Expanded adoption of data devices with 2.8 million 3G capable converged
devices now on the T-Mobile USA network.
* Continued recognition in the third quarter of 2009 for industry leading
wireless retail sales satisfaction and wireless customer care performance by
J.D. Power and Associates.
* Total customers declined by 77,000 in the third quarter of 2009, compared to
670,000 net customer additions in the third quarter of 2008.