3Q 2018 highlights

Consolidated:

  • $1.19 in earnings per share (EPS), compared with 89 cents in 3Q 2017; adjusted EPS (non-GAAP), excluding special items, of $1.22, compared with 98 cents in 3Q 2017.
  • Year-to-date operating cash flow of $26.2 billion, an increase of $9.8 billion year over year and total debt reduction of $4.2 billion.

Wireless:

  • 515,000 retail postpaid net additions, including 510,000 postpaid smartphone net adds.
  • Strong customer loyalty, with retail postpaid phone churn at 0.80 percent.
  • Total revenue growth of 6.1 percent year over year, excluding the impact of the revenue recognition standard adopted on Jan. 1, 2018.
  • Service revenue growth of 2.6 percent year over year, excluding the impact of the revenue recognition standard.

Wireline:

  • 54,000 Fios Internet net adds.
  • Total Fios revenue of $3.0 billion, an increase of 1.5 percent year over year.

NEW YORK, Oct. 23, 2018 (GLOBE NEWSWIRE) -- Verizon Communications Inc. (NYSE, Nasdaq: VZ) today posted third-quarter results highlighted by continued growth at Verizon Wireless, strong cash flow and network innovations that led to the world’s first 5G commercial product offering.   

“Verizon has posted a third quarter of strong operational and financial performance,” said CEO Hans Vestberg. “With the beginning of the 5G era in this fourth quarter, we expect that trend to continue. We are investing in networks, creating platforms to add value for customers and maintaining a focused, disciplined strategy. Verizon is best positioned to take full advantage of the opportunities offered by the new game-changing generation of technology.”

For third-quarter 2018, Verizon reported EPS of $1.19, compared with 89 cents in third-quarter 2017. The company’s reported earnings included a net impact of 3 cents per share from special items. Charges for early debt redemption and integration-related expenses (primarily pertaining to Oath) were partially offset by a pension and benefit re-measurement credit.

On an adjusted basis (non-GAAP), third-quarter 2018 EPS was $1.22, compared with 98 cents in third-quarter 2017. Verizon’s third-quarter 2018 EPS included approximately 21 cents due to the net effects of tax reform and accounting changes for revenue recognition.

Consolidated results

Total consolidated operating revenues in third-quarter 2018 were $32.6 billion, up 2.8 percent from third-quarter 2017. Excluding the impact of the revenue recognition standard, consolidated operating revenues were up approximately 2.6 percent year over year.  

Year-to-date cash flow from operations totaled $26.2 billion through third-quarter 2018, up $9.8 billion year over year. In September 2018, Verizon’s Board of Directors declared a quarterly dividend increase for the 12th consecutive year, and the company’s cash dividend payments totaled $7.3 billion through third-quarter 2018.

Year-to-date capital expenditures were $12.0 billion through third-quarter 2018, including capital to support the increasing demand on Verizon’s industry-leading 4G network, the commercial launch of 5G Home, significant fiber deployment in markets nationwide and the pre-positioning for additional 5G services.

Strong operational cash flow and the benefits from tax reform have enabled Verizon to decrease total debt by $4.2 billion year to date. The company has also made discretionary contributions of $1.7 billion to employee benefit programs during this time.

Verizon is on track to deliver against a goal to achieve $10 billion in cumulative cash savings by 2021. This initiative includes zero-based budgeting, which has yielded approximately $1.3 billion of cumulative cash savings on a year-to-date basis, and the recently announced Voluntary Separation Program.

In Verizon’s media business, Oath revenues were $1.8 billion in third-quarter 2018, 6.9 percent below the same quarter last year. The company expects Oath revenues to be relatively flat in the near term and does not expect to meet the previous target of $10 billion in Oath revenues by 2020. In the telematics business, total Verizon Connect revenues, excluding the impact of the revenue recognition standard, were $241 million in third-quarter 2018. IoT (Internet of Things) revenues, including Verizon Connect, increased approximately 12 percent year over year, excluding the impact of the revenue recognition standard.

Net income was $5.1 billion in third-quarter 2018. EBITDA (non-GAAP, earnings before interest, taxes, depreciation and amortization) totaled $12.3 billion. For third-quarter 2018, consolidated operating income margin was 23.5 percent. Consolidated EBITDA margin (non-GAAP) was 37.6 percent in third-quarter 2018, compared with 34.5 percent in third-quarter 2017. Adjusted EBITDA margin (non-GAAP) in third-quarter 2018 was 37.4 percent. Excluding the impact of the revenue recognition standard, adjusted EBITDA margin (non-GAAP) was 36.3 percent.

Wireless results

  • Total revenues were $23.0 billion, an increase of 6.5 percent year over year. Excluding the impact of the revenue recognition standard, total revenues were $22.9 billion in third-quarter 2018, an increase of 6.1 percent compared with third-quarter 2017.

  • Service revenues for the quarter on a reported basis grew 0.8 percent year over year. Excluding the impact of the revenue recognition standard, service revenues grew 2.6 percent year over year, driven by customer step-ups to higher access plans and increases in the average connections per account.

  • In third-quarter 2018, approximately 83 percent of Verizon’s postpaid phone base were on unsubsidized plans, compared with 78 percent in the same period last year.

  • Verizon reported 515,000 retail postpaid net additions in third-quarter 2018, consisting of net phone additions of 295,000, postpaid smartphone net additions of 510,000, tablet losses of 80,000 and 300,000 other connected devices additions, primarily wearables.

  • Total retail postpaid churn was 1.04 percent in third-quarter 2018, compared with 0.97 percent year over year. Retail postpaid phone churn was 0.80 percent in third-quarter 2018. The company expects retail postpaid phone churn to increase seasonally during fourth-quarter 2018.

  • Segment operating income in third-quarter 2018 was $8.5 billion, and segment operating income margin on total revenues was 37.0 percent.

  • Segment EBITDA (non-GAAP) totaled $11.0 billion, an increase of 10.0 percent year over year, driven by a combination of service revenue growth and efficiencies gained within the business. Excluding the impact of the revenue recognition standard, segment EBITDA totaled $10.6 billion in third-quarter 2018. Segment EBITDA margin on total revenues (non-GAAP) was 47.7 percent, compared with 46.2 percent in third-quarter 2017. Excluding the impact of the revenue recognition standard, segment EBITDA margin was 46.4 percent.

Wireline results

  • Total wireline revenues were $7.4 billion. Excluding the impact of the revenue recognition standard, total wireline revenues decreased 3.7 percent year over year in third-quarter 2018.

  • Total Fios revenues were $3.0 billion. Excluding the impact of the revenue recognition standard, total Fios revenues increased 1.6 percent year over year in third-quarter 2018.

  • In third-quarter 2018, Verizon added a net of 54,000 Fios Internet connections, indicative of continued strong customer demand for high quality internet connectivity. Verizon lost 63,000 Fios Video connections in third-quarter 2018, impacted by ongoing shifts away from linear video offerings.

  • Wireline operating loss was $50 million in third-quarter 2018, and segment operating loss margin was 0.7 percent. Segment EBITDA (non-GAAP) was $1.5 billion in third-quarter 2018. Excluding the impact of the revenue recognition standard, segment EBITDA was $1.5 billion. Segment EBITDA margin (non-GAAP) was 20.4 percent in third-quarter 2018, compared with 21.1 percent in third-quarter 2017. Excluding the impact of the revenue recognition standard, segment EBITDA margin was 19.9 percent.

Outlook and guidance

         Verizon expects the following:

  • Full-year consolidated revenue growth at low-to-mid single-digit percentage rates on a GAAP reported basis.

  • The impact of revenue recognition on EPS for full-year 2018 to be between 27 and 31 cents. The accretive benefit to full-year 2018 consolidated operating income is expected to moderate in 2019 and become insignificant in 2020, as the timing impacts to revenues and commission costs converge.

  • Low single-digit percentage growth in adjusted EPS in 2018, before the net impact of tax reform and the revenue recognition standard.

  • Capital spending for 2018 to be in the range of $16.6 billion to $17.0 billion.

  • The effective tax rate for full-year 2018 to be at the low end of the range of 24 to 26 percent.

NOTE: See the accompanying schedules and www.verizon.com/about/investors for reconciliations to generally accepted accounting principles (GAAP) for non-GAAP financial measures cited in this document.

Verizon Communications Inc. (NYSE, Nasdaq: VZ), headquartered in New York City, generated $126 billion in 2017 revenues. The company operates America’s most reliable wireless network and the nation’s premier all-fiber network, and delivers integrated solutions to businesses worldwide. Its Oath subsidiary reaches people around the world with a dynamic house of media and technology brands.

VERIZON’S ONLINE MEDIA CENTER: News releases, stories, media contacts and other resources are available at www.verizon.com/about/news/. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/

Forward-looking statements
In this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words “anticipates,” “believes,” “estimates,” “expects,” “hopes” or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the “SEC”), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: adverse conditions in the U.S. and international economies; the effects of competition in the markets in which we operate; material changes in technology or technology substitution; disruption of our key suppliers’ provisioning of products or services; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks; breaches of network or information technology security, natural disasters, terrorist attacks or acts of war or significant litigation and any resulting financial impact not covered by insurance; our high level of indebtedness; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; material adverse changes in labor matters, including labor negotiations, and any resulting financial and/or operational impact; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or treaties, or in their interpretation; changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; the inability to implement our business strategies; and the inability to realize the expected benefits of strategic transactions.

Verizon Communications Inc.       
Condensed Consolidated Statements of Income
   
         
   (dollars in millions, except per share amounts)
         
  3 Mos. Ended3 Mos. Ended  9 Mos. Ended9 Mos. Ended 
Unaudited9/30/189/30/17% Change 9/30/189/30/17% Change
         
Operating Revenues       
Service revenues and other$  27,254 $  27,365  (0.4) $  81,145 $  79,665  1.9 
Wireless equipment revenues  5,353   4,352  23.0    15,437   12,414  24.4 
Total Operating Revenues  32,607   31,717  2.8    96,582   92,079  4.9 
         
Operating Expenses       
Cost of services  7,842   8,009  (2.1)   24,022   22,697  5.8 
Wireless cost of equipment  5,489   4,965  10.6    16,195   14,808  9.4 
Selling, general and administrative expense  7,224   7,483  (3.5)   21,673   20,112  7.8 
Depreciation and amortization expense  4,377   4,272  2.5    13,051   12,498  4.4 
Total Operating Expenses  24,932   24,729  0.8    74,941   70,115  6.9 
         
Operating Income  7,675   6,988  9.8    21,641   21,964  (1.5)
Equity in losses of unconsolidated businesses  (3)  (22) (86.4)   (250)  (71)* 
Other income (expense), net  214   (291)*    499   (719)* 
Interest expense  (1,211)  (1,164) 4.0    (3,634)  (3,514) 3.4 
Income Before Provision For Income Taxes  6,675   5,511  21.1    18,256   17,660  3.4 
Provision for income taxes  (1,613)  (1,775) (9.1)   (4,282)  (5,893) (27.3)
Net Income$  5,062 $  3,736  35.5  $  13,974 $  11,767  18.8 
         
Net income attributable to noncontrolling interests$  138 $  116  19.0  $  385 $  335  14.9 
Net income attributable to Verizon  4,924   3,620  36.0    13,589   11,432  18.9 
Net Income$  5,062 $  3,736  35.5  $  13,974 $  11,767  18.8 
         
Basic Earnings Per Common Share       
Net income attributable to Verizon$  1.19 $  0.89  33.7  $  3.29 $  2.80  17.5 
        
Weighted average number of common shares (in millions)  4,136    4,084      4,125    4,083   
        
Diluted Earnings Per Common Share (1)       
Net income attributable to Verizon$  1.19 $  0.89  33.7  $  3.29 $  2.80  17.5 
        
Weighted average number of common       
 shares-assuming dilution (in millions)  4,140    4,089      4,129    4,088   
         
         
Footnotes:       
(1)  Diluted Earnings per Common Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represents the only potential dilution. 
         
*Not meaningful       
         

 

Verizon Communications Inc.  
Condensed Consolidated Balance Sheets  
       
       
   (dollars in millions)
       
Unaudited9/30/18 12/31/17 $ Change
       
Assets     
Current assets     
Cash and cash equivalents$  2,538  $  2,079  $  459 
Accounts receivable, net  24,012    23,493    519 
Inventories  1,270    1,034    236 
Prepaid expenses and other  5,334    3,307    2,027 
Total current assets  33,154    29,913    3,241 
Property, plant and equipment  252,030    246,498    5,532 
Less accumulated depreciation  164,566    157,930    6,636 
Property, plant and equipment, net  87,464    88,568    (1,104)
Investments in unconsolidated businesses  732    1,039    (307)
Wireless licenses  94,006    88,417    5,589 
Goodwill  29,200    29,172    28 
Other intangible assets, net  9,731    10,247    (516)
Other assets  11,275    9,787    1,488 
Total assets$  265,562  $  257,143  $  8,419 
       
Liabilities and Equity     
Current liabilities     
Debt maturing within one year$  6,502  $  3,453  $  3,049 
Accounts payable and accrued liabilities  19,342    21,232    (1,890)
Other current liabilities  8,323    8,352    (29)
Total current liabilities  34,167    33,037    1,130 
Long-term debt  106,440    113,642    (7,202)
Employee benefit obligations  19,660    22,112    (2,452)
Deferred income taxes  35,712    31,232    4,480 
Other liabilities  13,496    12,433    1,063 
Total long-term liabilities  175,308    179,419    (4,111)
       
Equity     
Common stock  429    424    5 
Additional paid in capital  13,436    11,101    2,335 
Retained earnings  44,091    35,635    8,456 
Accumulated other comprehensive income  3,201    2,659    542 
Common stock in treasury, at cost  (6,987)   (7,139)   152 
Deferred compensation – employee
stock ownership plans and other
  325    416    (91)
Noncontrolling interests  1,592    1,591    1 
Total equity  56,087    44,687    11,400 
Total liabilities and equity$  265,562  $  257,143  $  8,419 
       
       
Verizon - Selected Financial and Operating Statistics
       
Unaudited9/30/18 12/31/17  
       
Total debt (in millions)$  112,942  $  117,095   
Net debt (in millions)$  110,404  $  115,016   
Net debt / Consolidated Adjusted EBITDA(1) 2.4x   2.6x   
Common shares outstanding end of period (in millions)  4,132    4,079   
Total employees (‘000)  152.3    155.4   
Quarterly cash dividends declared per common share$  0.6025  $  0.5900   
       
Footnotes:     
(1 )Consolidated adjusted EBITDA excludes the effects of non-operational items, special items and operating results of divested businesses.
       

 

Verizon Communications Inc.     
Condensed Consolidated Statements of Cash Flows  
       
       
   (dollars in millions)
       
  9 Mos. Ended 9 Mos. Ended  
Unaudited9/30/18 9/30/17 $ Change
       
Cash Flows from Operating Activities     
Net Income$  13,974  $  11,767  $  2,207 
Adjustments to reconcile net income to net cash provided by operating activities:     
Depreciation and amortization expense  13,051    12,498    553 
Employee retirement benefits  (886)   (334)   (552)
Deferred income taxes  2,023    2,577    (554)
Provision for uncollectible accounts  699    842    (143)
Equity in losses of unconsolidated businesses, net of dividends received  291    100    191 
Net gain on sale of divested businesses  —    (1,774)   1,774 
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses  (1,944)   (6,257)   4,313 
Discretionary employee benefits contributions  (1,679)   (3,411)   1,732 
Other, net  715    467    248 
Net cash provided by operating activities  26,244    16,475    9,769 
       
Cash Flows from Investing Activities     
Capital expenditures (including capitalized software)  (12,026)   (11,282)   (744)
Acquisitions of businesses, net of cash acquired  (39)   (6,247)   6,208 
Acquisitions of wireless licenses  (1,307)   (469)   (838)
Proceeds from dispositions of businesses  —    3,614    (3,614)
Other, net  236    1,397    (1,161)
Net cash used in investing activities  (13,136)   (12,987)   (149)
       
Cash Flows from Financing Activities     
Proceeds from long-term borrowings  5,932    21,915    (15,983)
Proceeds from asset-backed long-term borrowings  3,216    2,878    338 
Repayments of long-term borrowings and capital lease obligations  (9,776)   (16,457)   6,681 
Repayments of asset-backed long-term borrowings  (2,915)   —    (2,915)
Dividends paid  (7,283)   (7,067)   (216)
Other, net  (1,595)   (2,866)   1,271 
Net cash used in financing activities  (12,421)   (1,597)   (10,824)
       
Increase in cash, cash equivalents and restricted cash  687    1,891    (1,204)
Cash, cash equivalents and restricted cash, beginning of period  2,888    3,177    (289)
Cash, cash equivalents and restricted cash, end of period$  3,575  $  5,068  $  (1,493)
       
Footnotes:     
Certain amounts have been reclassified to conform to the current period presentation.
       

 

Verizon Communications Inc.       
Wireless - Selected Financial Results     
         
         
         
       (dollars in millions)
         
  3 Mos. Ended3 Mos. Ended  9 Mos. Ended9 Mos. Ended 
Unaudited9/30/189/30/17% Change 9/30/189/30/17% Change
         
Operating Revenues       
Service$  15,966 $  15,841  0.8  $  47,122 $  47,241  (0.3)
Equipment  5,353   4,352  23.0    15,437   12,414  24.4 
Other  1,654   1,387  19.3    4,763   4,085  16.6 
Total Operating Revenues  22,973   21,580  6.5    67,322   63,740  5.6 
         
Operating Expenses       
Cost of services  2,350   2,270  3.5    6,900   6,676  3.4 
Cost of equipment  5,489   4,965  10.6    16,195   14,808  9.4 
Selling, general and administrative expense  4,169   4,376  (4.7)   12,052   13,116  (8.1)
Depreciation and amortization expense  2,454   2,366  3.7    7,341   7,051  4.1 
Total Operating Expenses  14,462   13,977  3.5    42,488   41,651  2.0 
         
Operating Income$  8,511 $  7,603  11.9  $  24,834 $  22,089  12.4 
Operating Income Margin 37.0% 35.2%   36.9% 34.7% 
         
Segment EBITDA$  10,965 $  9,969  10.0  $  32,175 $  29,140  10.4 
Segment EBITDA Margin 47.7% 46.2%   47.8% 45.7% 
         
         
Footnotes:       
 The segment financial results and metrics above are adjusted to exclude the effects of special items, as the Company’s chief operating decision maker excludes these items in assessing business unit performance.
        
 Intersegment transactions have not been eliminated.      
         

 

Verizon Communications Inc.       
Wireless - Selected Operating Statistics     
          
          
         
          
Unaudited    9/30/189/30/17% Change
          
Connections (‘000)       
Retail postpaid       112,135    109,686  2.2 
Retail prepaid       4,736    5,588  (15.2)
Total retail       116,871    115,274  1.4 
          
          
   3 Mos. Ended3 Mos. Ended  9 Mos. Ended9 Mos. Ended 
Unaudited9/30/189/30/17% Change 9/30/189/30/17% Change
          
Net Add Detail (‘000) (1)       
Retail postpaid   515    603  (14.6)    1,306    910  43.5 
Retail prepaid   (96)   139 *     (667)   141 * 
Total retail   419    742  (43.5)    639    1,051  (39.2)
          
          
Account Statistics       
Retail postpaid accounts (‘000) (2)       35,309    35,364  (0.2)
Retail postpaid connections per account (2)       3.18    3.10  2.6 
Retail postpaid ARPA (3) (5)$  136.58 $  136.31  0.2  $  134.28 $  136.06  (1.3)
Retail postpaid I-ARPA (4) (5)$  170.92 $  166.98  2.4  $  167.98 $  165.98  1.2 
          
Churn Detail       
Retail postpaid 1.04% 0.97%   1.02% 1.02% 
Retail 1.22% 1.19%   1.23% 1.25% 
          
Retail Postpaid Connection Statistics (2)       
Total smartphone postpaid phone base     91.7% 89.4% 
Total Internet postpaid base     19.4% 18.6% 
        
Other Operating Statistics       
Capital expenditures (in millions)$  2,127 $  2,652  (19.8) $  6,144 $  6,927  (11.3)
          
          
Footnotes:       
(1)Connection net additions exclude acquisitions and adjustments.
          
(2)Statistics presented as of end of period.     
          
(3)Retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
          
(4)Retail postpaid I-ARPA - average service revenue per account from retail postpaid account plus recurring device installment billings.
          
(5)ARPA and I-ARPA for periods beginning after January 1, 2018 reflect the adoption of Accounting Standard Update 2014-09, “Revenue from Contracts with Customers (Topic 606)”.  ARPA and I-ARPA for periods ending prior to January 1, 2018 were calculated based on the guidance per ASC Topic 605, "Revenue Recognition".  Accordingly, amounts are not calculated on a comparative basis.
          
 The segment financial results and metrics above are adjusted to exclude the effects of special items, as the Company’s chief operating decision maker excludes these items in assessing business unit performance.
          
 Intersegment transactions have not been eliminated.      
          
*Not meaningful        
          

 

Verizon Communications Inc.       
Wireline - Selected Financial Results     
           
           
           
         (dollars in millions)
           
    3 Mos. Ended3 Mos. Ended  9 Mos. Ended9 Mos. Ended 
Unaudited9/30/189/30/17% Change 9/30/189/30/17% Change
           
Operating Revenues       
Consumer Markets$  3,138 $  3,204  (2.1) $  9,420 $  9,589  (1.8)
Enterprise Solutions  2,172   2,262  (4.0)   6,623   6,882  (3.8)
Partner Solutions  1,166   1,244  (6.3)   3,594   3,708  (3.1)
Business Markets  840   903  (7.0)   2,561   2,700  (5.1)
Other  55   49  12.2    189   184  2.7 
Total Operating Revenues  7,371   7,662  (3.8)   22,387   23,063  (2.9)
           
Operating Expenses       
Cost of services  4,371   4,496  (2.8)   13,223   13,457  (1.7)
Selling, general and administrative expense  1,498   1,552  (3.5)   4,554   4,716  (3.4)
Depreciation and amortization expense  1,552   1,549  0.2    4,610   4,572  0.8 
Total Operating Expenses  7,421   7,597  (2.3)   22,387   22,745  (1.6)
           
Operating Income (Loss)$  (50)$  65 *  $  — $  318 * 
Operating Income (Loss) Margin (0.7)% 0.8%   0.0% 1.4% 
           
Segment EBITDA$  1,502 $  1,614  (6.9) $  4,610 $  4,890  (5.7)
Segment EBITDA Margin 20.4% 21.1%   20.6% 21.2% 
           
           
Footnotes:       
   The segment financial results and metrics above are adjusted to exclude the effects of special items, as the Company’s chief operating decision maker excludes these items in assessing business unit performance.
           
   Intersegment transactions have not been eliminated.      
           
*  Not meaningful       
           

 

Verizon Communications Inc.       
Wireline - Selected Operating Statistics     
         
         
         
         
Unaudited    9/30/189/30/17% Change
         
Connections (‘000)       
Fios video connections       4,497    4,648  (3.2)
Fios Internet connections       6,013    5,803  3.6 
Fios digital voice residence connections      3,833   3,920  (2.2)
Fios digital connections      14,343   14,371  (0.2)
High-speed Internet (HSI) connections       945    1,175  (19.6)
Total broadband connections       6,958    6,978  (0.3)
Total voice connections       12,009    13,100  (8.3)
         
         
         
  3 Mos. Ended3 Mos. Ended  9 Mos. Ended9 Mos. Ended 
Unaudited9/30/189/30/17% Change 9/30/189/30/17% Change
         
Net Add Detail (‘000)       
Fios video connections   (63)   (18)*     (122)   (46)* 
Fios Internet connections   54    66  (18.2)    163    150  8.7 
Fios digital voice residence connections   (30)   11 *     (72)   25 * 
Fios digital connections   (39)   59 *     (31)   129 * 
High-speed Internet (HSI) connections   (52)   (76) 31.6     (164)   (210) 21.9 
Total broadband connections   2    (10)*     (1)   (60) 98.3 
Total voice connections   (261)   (252) (3.6)    (812)   (839) 3.2 
         
Revenue Statistics       
Fios revenues (in millions)$  2,986 $  2,942  1.5  $  8,893 $  8,732  1.8 
         
Other Operating Statistics       
Capital expenditures (in millions)$  1,551 $  1,208  28.4  $  4,400 $  3,358  31.0 
Wireline employees (‘000)