Data comparison of AT&T and Verizon for two most recent fiscal years - Case Study Example

SUMMERY OF DATA COMPARISION OF AT&T AND VERIZON FOR TWO MOST RECENT FISCAL YEARS Summery of Data Comparison of AT&T and Verizon for Two Most Recent Fiscal Years AT&T and Verizon Communications are two, American top ranking voice and telecommunication business giants. AT&T, with its headquarters at San Antonio, Texas, having more 309,050 worldwide employees, was founded in 1983, as SCB (Southwestern Bell Corporation). AT&T is recognized as the leading worldwide provider of IP-based communication services and equipments to businesses and the leading U.S. provider of wire and wireless, high speed Internet access, local and long distance voice, and directory publishing and advertising services.

Verison Communications, formerly the Bell Atlantic Corporation, too, have more than 32,000 employees, in 75 countries across six continents. It was founded in 1983 and it is the premier communications partner to enterprises world. It is a leading provider of advanced communications solutions to business and government, providing its expertise in advanced IP- based communication services, next-generation broadband wireless communications. Since AT&T and Verizon Communications, both are involved in ever increasing business of voice and telecommunication services, hence both companies have observed a considerable increase in their over all revenues.

Also, both have gained a dramatic growth in their key strategic services during the past decades and they continued to roll out products and integrated solutions that transform the way enterprises operate. For year 2007, AT&T total assets have reached to record value of $275,644 millions with a net annual income of $11,951 millions while during 2006, its total assets were worth of $270,634 millions with a net annual income of $ 7,356 millions. Hence compared to a 1.8% increase in total assets, a huge increase of 62.

2% in annual income was observed. during 2007. During 2006-2007, AT&T operating, investing and financing activities always remained at their peaks, hence a continuous increasing trend can be observed throughout this period and company had increased a considerable cash amount for operating ($34,072 millions for 2007, $15,615 millions for 2006), investing ($18,506 millions 8,293millions) and for Financing Activities ($16,014 millions $6,128 millions) (AT&T Inc. Financial Review 2007, 2008, p.26). During fiscal years 2006-2007, contrary to AT&T, Verizon's net assets and its annual income decreased.

In 2007, its net assets declined from $188804 millions in 2006 to $186959 millions in 2007 which was about 1% decrease. Its annual income also had to go through a 6.6% decrease ($7419 millions in 2006 and $6926 millions in 2007) (Verizon Communication Inc. Historical Financial Information, 2007, pp. 1-10). For 2006 and 2007, both AT&T and Verizon both considerably increased their operating incomes along with operating revenues, operating expenses. For AT&T, operating revenues, increased $55,873 millions, or 88.

6%, in 2007 and $19,291millions, or 44.1%, in 2006. These increases were primarily due to AT&T acquisitions and its increased demand for data products.Verizon operating revenue also raised to $9, 3469 millions in 2007 compared to $8, 8078 million in 2006 or 61.2% increase. Its operating income and operating expenses almost became double in 2007 with an increased of 86.7% and 98.3% compared to 2006. Operating income raised to $ 20,404 in 2007, while it was $ 10,288 millions in 2006.

Operating expanses also reached to $ 98,524 millions, in 2007, almost double $ 52,767 millions 2006. Overall Verizon, observed an increase of 61.2%, in its operating revenues, 3.8% in operating expenses and 17.8% in operating income were observed during 2006-2007. During 2006-2007, both T&T and Verizon income tax values also increased. AT&T also increased $2,728, or 77.4%, in 2007 and $2,593 in 2006. The increase in income taxes in 2007 was primarily due to higher operating income in 2007 reflecting the addition of BellSouth's and its share of AT&T Mobility's operating results.

Reference AT&T Inc. 2007 Annual Report, (2008). AT&T [Internet], February, pp. 1-55. Available from: [Accessed 14 March 2008]. Verizon Communication Inc. Historical Financial Information. (2007). Verizon [Internet] December, pp. 1-10. Available from: [Accessed 14 March 2008].