Verizon revenue rises steadily, driven by wireless service growth
Record numbers of new tablet users, and the first rise in fixed-line revenue in seven years, drove Verizon Communications’ second-quarter revenue up 5.7 percent year on year, it reported Tuesday.
Revenue for the quarter ended June 30 totaled US$31.5 billion, up from $29.8 billion a year earlier.
Wireless services continued to contribute the bulk of the company’s revenue and growth, rising 5.9 percent to $18.1 billion, from $17.1 billion a year earlier. The company signed up 1.4 million net new retail postpaid customers, 1.15 million of them tablet users. That takes the company’s total number of retail connections to 104.6 million, 75 percent of them smartphone users.
In the fixed-line segment, revenue crept up 0.3 percent to $9.8 billion in the quarter—but Verizon hailed this as a victory, the first year-on-year increase it has seen in quarterly wireline revenue in over seven years. The company added 139,000 net new fiber Internet subscribers and 100,000 net new fiber video subscribers, taking the totals to 6.3 million and 5.4 million, respectively. Revenue from the Fios services grew 14.4 percent year on year to $3.1 billion, it said.
The company reported net profit of $4.3 billion, down from $5.2 billion a year earlier. However, due to its acquisition of Vodafone’s share in Verizon Wireless, a greater proportion of the profit was attributable to Verizon: $4.2 billion, almost doubling from the year-earlier figure of $2.2 billion. Earnings per share attributable to Verizon grew less rapidly, up 29.5 percent year on year to $1.01, as a result of the issuance of new shares to finance the Vodafone deal. Almost half of the per-share earnings growth came from a one-off sale of wireless spectrum.
For the full year, Verizon expects wireless and fixed-line businesses to continue to grow profitably, it said.