Verizon Reports Double-Digit Earnings Growth in 2Q 2013

           Verizon Reports Double-Digit Earnings Growth in 2Q 2013

Strategic Investments in 4G LTE, FiOS and Global Networks Continue to Drive
Strong Growth in Revenues, Earnings and Cash Flow

PR Newswire

NEW YORK, July 18, 2013

NEW YORK, July 18, 2013 /PRNewswire/ --

2Q 2013 HIGHLIGHTS

Consolidated

  o78 cents in earnings per share (EPS), including a non-operational gain of
    5 cents per share related to pensions, compared with 64 cents per share in
    2Q 2012.
  o73 cents in adjusted EPS (non-GAAP), a 14.1 percent increase compared with
    2Q 2012.

Wireless

  o8.3 percent year-over-year increase in service revenues in 2Q 2013; 7.8
    percent increase in retail service revenues; 32.4 percent operating income
    margin and 49.8 percent segment EBITDA margin on service revenues
    (non-GAAP).
  o941,000 retail postpaid net additions, up 6 percent year over year; low
    retail postpaid churn of 0.93 percent; 100.1 million total retail
    connections, 94.3 million total retail postpaid connections.
  o4G LTE service now available to 301 million people in 500 markets across
    the U.S.

Wireline

  o4.7 percent year-over-year increase in consumer revenues; consumer ARPU
    (average revenue per user) up 9.4 percent year over year, to $109.67.
  o14.7 percent year-over-year increase in FiOS revenues; 161,000 FiOS
    Internet and 140,000 FiOS Video net additions, including the addition of
    the 5 millionth FiOS Video customer, with continued increased sales
    penetration for both services.
  o4.8 percent year-over-year increase in revenues for global enterprise
    strategic services.

Verizon Communications Inc. (NYSE, Nasdaq: VZ) today reported year-over-year
double-digit percentage growth in operating income and earnings per share, as
second-quarter 2013 results showed continued strong operating performance and
customer demand for Verizon Wireless, FiOS and strategic enterprise services.

Verizon reported 78 cents in EPS in second-quarter 2013, compared with 64
cents per share in second-quarter 2012. Second-quarter 2013 results include a
non-cash, non-operational gain of 5 cents per share for an interim actuarial
remeasurement associated with one of Verizon's pension plans.

Adjusted second-quarter 2013 earnings of 73 cents per share increased 14.1
percent, compared with 64 cents per share in second-quarter 2012, when there
were no adjustments.

"Verizon's consistent strategic investments in wireless, FiOS and global
networks drove strong financial performance in the first half of 2013," said
Lowell McAdam, Verizon chairman and CEO. "Having posted double-digit earnings
growth in five of the last six quarters, we are focused on continuing to
provide the best portfolio of products on the most reliable networks;
capturing incremental revenue growth in broadband, video and cloud services;
and sustaining our earnings and cash-flow momentum."

Consolidated Results Reflect Continued Profitable Growth

In second-quarter 2013, Verizon's consolidated results were highlighted by
continued strong operating performance and profitable growth based on
operating efficiencies and customer demand.

Consolidated Highlights

  oTotal operating revenues in second-quarter 2013 were $29.8 billion, a 4.3
    percent increase compared with second-quarter 2012.
  oOperating income increased 16.0 percent, to $6.6 billion in second-quarter
    2013, compared with $5.7 billion in second-quarter 2012. Operating income
    margin was 22.0 percent in second-quarter 2013, compared with 19.8 percent
    in second-quarter 2012.
  oConsolidated EBITDA (non-GAAP, earnings before interest, taxes,
    depreciation and amortization) grew 9.5 percent year over year, totaling
    $10.7 billion in second-quarter 2013. EBITDA margin (non-GAAP) expanded
    to 35.9 percent in second-quarter 2013, up 170 basis points year over
    year.
  oCash flow from operating activities totaled $17.1 billion in first-half
    2013, compared with $15.3 billion in first-half 2012. Capital
    expenditures in first-half 2013 were $7.6 billion, compared with $7.4
    billion in first-half 2012. Free cash flow (non-GAAP, cash flow from
    operations less capital expenditures) in first-half 2013 totaled $9.5
    billion, compared with $7.8 billion in first-half 2012.

Verizon is increasing its capital spending guidance from $16.2 billion to
between $16.4 billion and $16.6 billion for full-year 2013, as the company
anticipates higher demand for wireless data consumption and begins deployment
of AWS (advanced wireless services) spectrum in second-half 2013.

Verizon Wireless Delivers Another Strong Quarter

In second-quarter 2013, Verizon Wireless delivered solid growth in retail
postpaid net additions and revenues; an increase in smartphone penetration;
and a strong segment EBITDA margin on service revenues (non-GAAP).

Wireless Financial Highlights

  oTotal revenues were $20.0 billion in second-quarter 2013, up 7.5 percent
    year over year. Service revenues in the quarter totaled $17.1 billion, up
    8.3 percent year over year. Retail service revenues grew 7.8 percent year
    over year, to $16.4 billion.
  oRetail postpaid ARPA (average revenue per account) increased 6.4 percent
    over second-quarter 2012, to $152.50 per month.
  oIn second-quarter 2013, wireless operating income margin was 32.4 percent,
    compared with 30.8 percent in second-quarter 2012. Segment EBITDA margin
    on service revenues was 49.8 percent, up 80 basis points over
    second-quarter 2012.

Wireless Operational Highlights

  oVerizon Wireless added 941,000 retail postpaid net connections, out of a
    total 1.0 million net retail connections, in the second quarter. These
    additions exclude acquisitions and adjustments. Verizon expects to
    continue to see increases in quarterly sequential net additions for retail
    postpaid connections in the second half of 2013.
  oAt the end of the second quarter, the company had 100.1 million retail
    connections, a 6.3 percent increase year over year -- including 94.3
    million retail postpaid connections.
  oWith more than 36 percent of retail postpaid accounts now on a Share
    Everything Plan, which allows customers to share data among multiple
    devices, Verizon Wireless had 35 million retail postpaid accounts at the
    end of the second quarter. This is an average of 2.7 connections per
    account.
  oAt the end of the second quarter, smartphones accounted for more than 64
    percent of the Verizon Wireless retail postpaid customer phone base, up
    from 61 percent at the end of first-quarter 2013.
  oRetail postpaid churn was 0.93 percent in the second quarter, up 9 basis
    points year over year. Retail churn was 1.23 percent in the second
    quarter, up 12 basis points year over year.
  oAs of the end of June, Verizon Wireless has substantially completed
    deployment of its 4G LTE network, covering more than 99 percent of its
    current 3G network footprint. In the second quarter, the company
    activated 4G LTE data service in Alaska, resulting in Verizon Wireless 4G
    LTE service being available in all 50 states. The Verizon Wireless 4G LTE
    network is now available in 500 markets to more than 95 percent of the
    U.S. population and covers about 301 million people, including those in
    areas served by the company's LTE in Rural America partners.
  oThe company continued to enhance its 4G LTE smartphone device lineup. In
    the second quarter, Verizon Wireless launched the Pantech Perception, the
    Nokia Lumia 928, the Casio G'zOne Commando 4G LTE, the Blackberry Q10 and
    the Samsung Galaxy S4. The company has also announced the HTC One would
    be available later this summer.

Wireline Reports Another Quarter of Strong FiOS Customer and Revenue Growth

Verizon's Wireline segment reported another quarter of FiOS customer, market
share and revenue growth, leading to continued growth in consumer revenues.
In enterprise and wholesale, sales of global enterprise strategic services
continued to increase and constitute a larger percentage of the revenue base.

Wireline Financial Highlights

  oConsumer revenues were $3.6 billion, an increase of 4.7 percent compared
    with second-quarter 2012. Consumer ARPU for wireline services increased
    to $109.67 in second-quarter 2013, up 9.4 percent compared with
    second-quarter 2012.
  oFiOS revenues grew 14.7 percent, to $2.7 billion in second-quarter 2013,
    compared with $2.4 billion in second-quarter 2012. ARPU for FiOS
    customers continued to be more than $150 in second-quarter 2013.
  oSales of strategic services to global enterprise customers increased 4.8
    percent compared with second-quarter 2012 and represented 57 percent of
    total enterprise revenues, compared with 52 percent in second-quarter
    2012. Strategic services include cloud and data center services, security
    and IT solutions, advanced communications, strategic networking and
    telematics services.

Wireline Operational Highlights

  oVerizon added 161,000 net new FiOS Internet connections and 140,000 net
    new FiOS Video connections in second-quarter 2013. Verizon had a total of
    5.8 million FiOS Internet and 5.0 million FiOS Video connections at the
    end of the quarter, representing year-over-year increases of 12.2 percent
    and 12.6 percent, respectively.
  oFiOS penetration (subscribers as a percentage of potential subscribers)
    continued to increase. FiOS Internet penetration was 38.6 percent at the
    end of second-quarter 2013, compared with 36.6 percent at the end of
    second-quarter 2012. In the same periods, FiOS Video penetration was 34.5
    percent, compared with 32.6 percent. The FiOS network passed 18.0 million
    premises by the end of second-quarter 2013.
  oBy the end of second-quarter 2013, 35 percent of FiOS Internet customers
    subscribed to FiOS Quantum, which provides speeds ranging from 50 to 300
    megabits per second.
  oBroadband connections totaled 8.9 million at the end of second-quarter
    2013, a 1.9 percent year-over-year increase. Overall, net broadband
    customers increased 45,000 in the second quarter, as FiOS Internet net
    customer additions more than offset a decline in subscribers for DSL-based
    High Speed Internet services.
  oVerizon has been replacing high-maintenance portions of its residential
    copper network with fiber optics to provide enhanced services and to
    reduce ongoing repair costs. In first-half 2013, Verizon migrated 169,000
    homes to fiber, toward a target of 300,000 migrations within FiOS markets
    in 2013.
  oVerizon Enterprise Solutions completed agreements with and began deploying
    innovative business technology solutions for a variety of corporations and
    organizations around the globe in the quarter, including American Tower,
    the Australian Federal Police and its client agencies, d'Amico Societa di
    Navigazione, the District of Columbia, Kohn Pedersen and Fox Associates,
    Marathon Petroleum Corporation, Panviva and Veolia Environnement.

NOTE: See the accompanying schedules and www.verizon.com/investor 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, is
a global leader in delivering broadband and other wireless and wireline
communications services to consumer, business, government and wholesale
customers. Verizon Wireless operates America's most reliable wireless
network, with more than 100 million retail connections nationwide. Verizon
also provides converged communications, information and entertainment services
over America's most advanced fiber-optic network, and delivers integrated
business solutions to customers in more than 150 countries, including all of
the Fortune 500. A Dow 30 company with nearly $116 billion in 2012 revenues,
Verizon employs a diverse workforce of 180,900. For more information, visit
www.verizon.com.

VERIZON'S ONLINE NEWS CENTER: Verizon news releases, executive speeches and
biographies, media contacts and other information are available at Verizon's
online News Center at newscenter.verizon.com. The news releases are available
through an RSS feed. To subscribe, visit
newscenter.verizon.com/corporate/feeds.

NOTE: This presentation contains statements about expected future events and
financial results that are forward-looking and subject to risks and
uncertainties. 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. The following important factors 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; competition in our markets; material changes in
available technology or technology substitution; disruption of our key
suppliers' provisioning of products or services; changes in the regulatory
environments 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 significant
litigation and any resulting financial impact not covered by insurance; 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
financing; changes in our accounting assumptions that regulatory agencies,
including the SEC, may require or that result from changes in the accounting
rules or their application, which could affect earnings; 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; and the inability to
implement our business strategies.



Verizon Communications Inc.
Condensed Consolidated Statements of Income
                                                  (dollars in millions, except
                                                  per share amounts)
                       3 Mos.   3 Mos.            6 Mos.   6 Mos.
                       Ended    Ended             Ended    Ended
Unaudited              6/30/13 6/30/12  %        6/30/13 6/30/12  %
                                          Change                      Change
Operating Revenues     $       $      4.3       $      $     4.2
                       29,786    28,552             59,206    56,794
Operating Expenses
Cost of services and   11,033    10,896   1.3       21,965    22,215   (1.1)
sales
Selling, general and   8,047     7,877    2.2       16,195    15,577   4.0
administrative expense
Depreciation and       4,151     4,128    0.6       8,269     8,156    1.4
amortization expense
Total Operating        23,231    22,901   1.4       46,429    45,948   1.0
Expenses
Operating Income      6,555     5,651    16.0      12,777    10,846   17.8
Equity in earnings of
unconsolidated         120       72       66.7      115       175      (34.3)
businesses
Other income, net      25        34       (26.5)    64        53       20.8
Interest expense       (514)     (679)    (24.3)    (1,051)   (1,364)  (22.9)
Income Before
Provision for Income   6,186     5,078    21.8      11,905    9,710    22.6
Taxes
Provision for income   (988)     (793)    24.6      (1,852)   (1,519)  21.9
taxes
Net Income            $      $     21.3      $      $     22.7
                       5,198    4,285             10,053     8,191
Net income
attributable to        $      $     20.0      $     $     25.1
noncontrolling         2,952    2,460             5,855     4,680
interests
Net income
attributable to        2,246     1,825    23.1      4,198     3,511    19.6
Verizon
Net Income            $      $     21.3      $      $     22.7
                       5,198    4,285             10,053     8,191
Basic Earnings per
Common Share
Net income             $     $               $     $   
attributable to         .78      .64 21.9       1.46          18.7
Verizon                                                       1.23
Weighted average
number of common       2,865     2,849              2,866     2,846
shares (in millions)
Diluted Earnings per
Common Share ^(1)
Net income             $     $               $     $   
attributable to         .78      .64 21.9       1.46          18.7
Verizon                                                       1.23
Weighted average
number of common
  shares-assuming
  dilution (in         2,872     2,858              2,873     2,854
  millions)

Footnotes:
    Diluted Earnings per Common Share includes the dilutive effect of shares
(1) issuable under our stock-based compensation plans, which represents the
    only potential dilution.
    Certain reclassifications have been made, where appropriate, to reflect
    comparable operating results.





Verizon Communications Inc.
Condensed Consolidated Balance Sheets
                                                                  (dollars in
                                                                  millions)
Unaudited                         6/30/13       12/31/12        $ Change
Assets
 Current assets
 Cash and cash equivalents   $        $         $    
                                   1,788        3,093            (1,305)
 Short-term investments      618            470              148
 Accounts receivable, net    12,216         12,576           (360)
 Inventories                 1,040          1,075            (35)
 Prepaid expenses and other  6,295          4,021            2,274
 Total current assets           21,957         21,235           722
 Plant, property and equipment  215,224        209,575          5,649
 Less accumulated            126,892        120,933          5,959
depreciation
                                  88,332         88,642           (310)
 Investments in unconsolidated  3,319          3,401            (82)
businesses
 Wireless licenses              75,825         77,744           (1,919)
 Goodwill                       24,336         24,139           197
 Other intangible assets, net   5,776          5,933            (157)
 Other assets                   3,801          4,128            (327)
Total Assets                      $         $           $    
                                  223,346        225,222          (1,876)
Liabilities and Equity
 Current liabilities
 Debt maturing within one    $        $         $     
year                               7,961        4,369            3,592
 Accounts payable and        14,671         16,182           (1,511)
accrued liabilities
 Other                       6,559          6,405            154
 Total current liabilities      29,191         26,956           2,235
 Long-term debt                 41,791         47,618           (5,827)
 Employee benefit obligations   33,835         34,346           (511)
 Deferred income taxes          25,696         24,677           1,019
 Other liabilities              5,677          6,092            (415)
 Equity
 Common stock                297            297              -
 Contributed capital         37,895         37,990           (95)
 Accumulated deficit         (2,483)        (3,734)          1,251
 Accumulated other           1,994          2,235            (241)
comprehensive income
 Common stock in treasury,   (3,974)        (4,071)          97
at cost
 Deferred compensation -
employee
 stock ownership plans and 332            440              (108)
other
 Noncontrolling interests    53,095         52,376           719
 Total equity                   87,156         85,533           1,623
Total Liabilities and Equity      $         $           $    
                                  223,346        225,222          (1,876)
Verizon - Selected Financial and Operating Statistics
Unaudited                         6/30/13       12/31/12
Total debt (in millions)          $        $      
                                  49,752         51,987
Net debt (in millions)            $        $      
                                  47,964         48,894
Net debt / Adjusted EBITDA ^(1)   1.2x           1.3x
Common shares outstanding end of  2,862          2,859
period (in millions)
Total employees                   180,900        183,400
Quarterly cash dividends declared $        $      
per common share                  0.5150         0.5150

Footnotes:
(1) Adjusted EBITDA excludes the effects of non-operational items.
    The unaudited condensed consolidated balance sheets are based on
    preliminary information.



Verizon Communications Inc.
Condensed Consolidated Statements of Cash Flows
                                                                   (dollars in
                                                                   millions)
                                          6 Mos.      6 Mos.
                                          Ended       Ended
Unaudited                                 6/30/13    6/30/12      $ Change
Cash Flows From Operating Activities
Net Income                                $         $       $   
                                          10,053      8,191        1,862
Adjustments to reconcile net income to
net cash provided by
operating activities:
 Depreciation and amortization expense  8,269        8,156        113
 Employee retirement benefits           354          751          (397)
 Deferred income taxes                  1,812        1,237        575
 Provision for uncollectible accounts   507          521          (14)
 Equity in earnings of unconsolidated   (95)         (149)        54
businesses, net of dividends received
 Changes in current assets and
liabilities, net of effects from
 acquisition/disposition of businesses (1,660)      (1,136)      (524)
 Other, net                             (2,092)      (2,300)      208
Net cash provided by operating activities 17,148       15,271       1,877
Cash Flows From Investing Activities
Capital expenditures (including           (7,616)      (7,430)      (186)
capitalized software)
Acquisitions of investments and           (76)         (203)        127
businesses, net of cash acquired
Acquisitions of wireless licenses, net    (264)        (33)         (231)
Net change in short-term investments      (21)         21           (42)
Other, net                                142          61           81
Net cash used in investing activities     (7,835)      (7,584)      (251)
Cash Flows From Financing Activities
Proceeds from long-term borrowings        499          -            499
Repayments of long-term borrowings and
capital                                   (2,330)      (1,891)      (439)
 lease obligations
Decrease in short-term obligations,
excluding                                 (432)        (887)        455
 current maturities
Dividends paid                           (2,946)      (2,587)      (359)
Proceeds from sale of common stock        74           210          (136)
Purchase of common stock for treasury     (153)        -            (153)
Special distribution to noncontrolling    (3,150)      (4,500)      1,350
interests
Other, net                                (2,180)      (1,393)      (787)
Net cash used in financing activities     (10,618)     (11,048)     430
Decrease in cash and cash equivalents     (1,305)      (3,361)      2,056
Cash and cash equivalents, beginning of   3,093        13,362       (10,269)
period
Cash and cash equivalents, end of period  $       $         $   
                                          1,788        10,001      (8,213)



Verizon Communications Inc.
Wireless – Selected Financial Results
                                                               (dollars in
                                                               millions)
                          3 Mos.   3 Mos.          6 Mos.   6 Mos.
                          Ended    Ended           Ended    Ended
Unaudited                 6/30/13 6/30/12 %       6/30/13 6/30/12 %
                                            Change                    Change
Operating Revenues
 Retail service        $       $     7.8      $      $    8.2
                          16,422    15,230           32,591    30,116
 Other service         656       546     20.1     1,215     1,070   13.6
Service                  17,078    15,776  8.3      33,806    31,186  8.4
Equipment                1,953     1,768   10.5     3,766     3,606   4.4
Other                     945       1,033   (8.5)    1,927     2,058   (6.4)
Total Operating Revenues  19,976    18,577  7.5      39,499    36,850  7.2
Operating Expenses
Cost of services and      5,799     5,558   4.3      11,450    11,468  (0.2)
sales
Selling, general and      5,666     5,295   7.0      11,114    10,523  5.6
administrative expense
Depreciation and          2,047     2,011   1.8      4,053     3,929   3.2
amortization expense
Total Operating Expenses  13,512    12,864  5.0      26,617    25,920  2.7
Operating Income          $      $    13.1     $      $    17.9
                          6,464    5,713           12,882    10,930
Operating Income Margin   32.4%     30.8%            32.6%     29.7%
Segment EBITDA            $      $    10.2     $      $    14.0
                          8,511    7,724           16,935    14,859
Segment EBITDA Service    49.8%     49.0%            50.1%     47.6%
Margin

Footnotes:
 The segment financial results and metrics above are adjusted to exclude the
 effects of non-operational items, as the Company's chief operating decision
 maker excludes these items in assessing business unit performance.
 Intersegment transactions have not been eliminated.
 Certain reclassifications have been made, where appropriate, to reflect
 comparable operating results.



Verizon Communications Inc.
Wireless – Selected Operating Statistics
Unaudited                                           6/30/13 6/30/12  %
                                                                       Change
Connections ('000)
 Retail postpaid                                  94,271    88,838   6.1
 Retail prepaid                                  5,853     5,316    10.1
Retail                                             100,124   94,154   6.3
                         3 Mos.   3 Mos.          6 Mos.   6 Mos.
                         Ended    Ended           Ended    Ended
Unaudited                6/30/13 6/30/12 %       6/30/13 6/30/12  %
                                           Change                     Change
Net Add Detail
('000)^(1)
 Retail postpaid       941       888     6.0      1,618     1,389    16.5
 Retail prepaid       97        290     (66.6)   140       523      (73.2)
Retail                  1,038     1,178   (11.9)   1,758     1,912    (8.1)
Account Statistics
Retail Postpaid Accounts                            34,958    34,646   0.9
('000)^(2)
Retail postpaid ARPA     $       $     6.4      $      $     6.7
                         152.50    143.32           151.39    141.95
Retail postpaid
connections per account                             2.70      2.56     5.5
^(2)
Churn Detail
Retail postpaid         0.93%     0.84%            0.97%     0.90%
Retail                  1.23%     1.11%            1.27%     1.18%
Retail Postpaid
Connection Statistics
Total Smartphone
postpaid % of phones     84.4%     71.6%            84.3%     71.3%
activated
Total Smartphone                                    64.4%     49.7%
postpaid phone base ^(2)
Total Internet postpaid                             9.9%      8.5%
base ^(2)
Other Operating
Statistics
Capital expenditures (in $      $    11.2     $     $     8.6
millions)                2,278    2,048           4,270     3,933

Footnotes:
(1) Connection net additions exclude acquisitions and adjustments.
(2) Statistics presented as of end of period.
    The segment financial results and metrics above are adjusted to exclude
    the effects of non-operational items, as the Company's chief operating
    decision maker excludes these items in assessing business unit
    performance.
    Intersegment transactions have not been eliminated.
    Certain reclassifications have been made, where appropriate, to reflect
    comparable operating results.



Verizon Communications Inc.
Wireline – Selected Financial Results
                                                              (dollars in
                                                              millions)
                       3 Mos.     3 Mos.          6 Mos.   6 Mos.
                       Ended      Ended           Ended    Ended
Unaudited              6/30/13   6/30/12 %       6/30/13 6/30/12  %
                                           Change                     Change
Operating Revenues
 Consumer retail    $        $    4.7      $     $     4.5
                       3,643      3,478           7,232     6,919
 Small business      648         667     (2.8)    1,299     1,329    (2.3)
Mass Markets           4,291       4,145   3.5      8,531     8,248    3.4
 Strategic services 2,079       1,983   4.8      4,166     3,952    5.4
 Core                1,557       1,837   (15.2)   3,223     3,720    (13.4)
Global Enterprise      3,636       3,820   (4.8)    7,389     7,672    (3.7)
Global Wholesale      1,686       1,827   (7.7)    3,413     3,688    (7.5)
Other                  121         139     (12.9)   231       268      (13.8)
Total Operating        9,734       9,931   (2.0)    19,564    19,876   (1.6)
Revenues
Operating Expenses
Cost of services and   5,407       5,500   (1.7)    10,864    11,072   (1.9)
sales
Selling, general and   2,168       2,141   1.3      4,433     4,267    3.9
administrative expense
Depreciation and       2,085       2,102   (0.8)    4,180     4,192    (0.3)
amortization expense
Total Operating        9,660       9,743   (0.9)    19,477    19,531   (0.3)
Expenses
                       $      $             $     $   
Operating Income        74          188 (60.6)      87        (74.8)
                                                              345
Operating Income       0.8%        1.9%             0.4%      1.7%
Margin
Segment EBITDA         $        $    (5.7)    $     $     (6.0)
                       2,159      2,290           4,267     4,537
Segment EBITDA Margin  22.2%       23.1%            21.8%     22.8%

Footnotes:
 The segment financial results and metrics above are adjusted to exclude the
 effects of non-operational items, as the Company's chief operating decision
 maker excludes these items in assessing business unit performance.
 Intersegment transactions have not been eliminated.
 Certain reclassifications have been made, where appropriate, to reflect
 comparable operating results.



Verizon Communications Inc.
Wireline – Selected Operating Statistics
Unaudited                                           6/30/13 6/30/12  %
                                                                       Change
Connections ('000)
 FiOS Video Subscribers                           5,035     4,473    12.6
 FiOS Internet                                    5,773     5,144    12.2
Subscribers
 FiOS Digital Voice                               3,817     2,648    44.1
residence connections
FiOS Digital connections                            14,625    12,265   19.2
 HSI                                             3,166     3,632    (12.8)
Total Broadband                                     8,939     8,776    1.9
connections
 Primary residence
switched access                                     7,200     8,843    (18.6)
connections
Primary residence                                   11,017    11,491   (4.1)
connections
Total retail residence                              11,583    12,222   (5.2)
voice connections
Total voice connections                             21,828    23,278   (6.2)
                           3 Mos. 3 Mos.          6 Mos.   6 Mos.
                           Ended  Ended           Ended    Ended
Unaudited                  6/30/13 6/30/12 %       6/30/13   6/30/12  %
                                           Change                     Change
Net Add Detail ('000)
 FiOS Video Subscribers  140     120     16.7     309       300      3.0
 FiOS Internet           161     134     20.1     349       327      6.7
Subscribers
 FiOS Digital Voice      286     350     (18.3)   590       764      (22.8)
residence connections
FiOS Digital connections   587     604     (2.8)    1,248     1,391    (10.3)
 HSI                    (116)   (132)   (12.1)   (205)     (221)    (7.2)
Total Broadband            45      2       *        144       106      35.8
connections
 Primary residence
switched access            (393)   (501)   (21.6)   (782)     (1,063)  (26.4)
connections
Primary residence          (107)   (151)   (29.1)   (192)     (299)    (35.8)
connections
Total retail residence     (142)   (199)   (28.6)   (266)     (404)    (34.2)
voice connections
Total voice connections    (363)   (422)   (14.0)   (675)     (859)    (21.4)
Revenue and ARPU
Statistics
Consumer ARPU              $     $     9.4      $      $     8.8
                           109.67  100.26           108.46     99.70
FiOS revenues (in          $    $    14.7     $     $     14.9
millions)                  2,731   2,380            5,364      4,668
Strategic services as a %
of total Enterprise        57.2%   51.9%            56.4%     51.5%
revenues
Other Operating Statistics
Capital expenditures (in   $    $    (5.1)    $     $     (5.9)
millions)                  1,515  1,596           2,949     3,133
Wireline employees ('000)                          84.7      88.6
FiOS Video Open for Sale                            14,607    13,721
('000)
FiOS Video penetration                              34.5%     32.6%
FiOS Internet Open for                              14,943    14,044
Sale ('000)
FiOS Internet                                       38.6%     36.6%
penetration

Footnotes:
  The segment financial results and metrics above are adjusted to exclude the
  effects of non-operational items, as the Company's chief operating decision
  maker excludes these items in assessing business unit performance.
  Intersegment transactions have not been eliminated.
  Certain reclassifications have been made, where appropriate, to reflect
  comparable operating results.
* Not meaningful





SOURCE Verizon Communications Inc.

Website: http://www.verizon.com
Contact: Jim Gerace, 212-395-2355, james.gerace@verizon.com, or Bob Varettoni,
908-559-6388, robert.a.varettoni@verizon.com