Verizon's mobile and broadband growth drive higher revenue in Q3
Verizon Communications’ profit and sales rose in the third quarter of 2013, with the growth driven by higher mobile and broadband numbers.
The company said on Thursday that it posted a 4.4 percent increase in revenue and a 30 percent increase in net income compared with 2012’s third quarter. Net income attributable to Verizon, not including Vodafone’s stake in Verizon Wireless, was $2.2 million, up 38 percent from a year earlier.
Revenue came in at $30.3 billion for the quarter ended Sept. 30, and net income was $5.6 billion. Earnings per share grew 39.3 percent to $0.78.
On a pro forma, adjusted basis, earnings per share were $0.77, up 20.3 percent year-on-year and topping analyst consensus estimates by 3 cents.
Verizon added 1.1 million mobile customers and 173,000 Fios broadband customers during the quarter.
“Our third-quarter results were very strong, showing consistent performance in all our key strategic growth areas,” Fran Shammo, Verizon’s CFO, said during a conference call.
Mobile revenue was $20.4 billion for the third quarter, up 7.2 percent year over year. At the end of the third quarter, Verizon had 101.2 million retail mobile connections, a 5.5 percent increase from the third quarter of 2012.
In September, Verizon announced plans to purchase Vodafone Group’s 45 percent stake in its Verizon Wireless subsidiary for $130 billion. The company will finance the deal through a $49 billion debt offering and an agreement for up to $12 billion in loans.
In Verizon’s wireline division, the company posted revenue of $9.8 billion, down from $9.9 billion a year ago. Consumer revenue was $3.7 billion, up 4.3 percent, but the company has challenges in its enterprise markets, particularly with cuts in U.S. government spending, Shammo said.
Fios revenue grew 13.4 percent to $2.8 billion. In addition to the Fios broadband customer additions, Verizon’s Fios TV service added 135,000 customers during the quarter. Net broadband growth for the quarter was 56,000, with declines in DSL subscribers partially offsetting Fios growth.
Verizon had nearly 9 million broadband customers at the end of the third quarter, up 2.6 percent from a year ago.
Updated at 3:05 p.m. PT to add net income attributable to Verizon numbers.