Mobile Growth Drives Higher Verizon Revenue
Increases in mobile service revenue and in consumer broadband at Verizon Communications drove revenue and net income growth for the company in the second quarter of 2012, the company announced Thursday.
Verizon reported revenue of US$28.6 billion for the second quarter, up 3.7 percent from the second quarter of 2011. Net income attributable to Verizon was $1.8 billion, up 13.4 percent from a year ago.
Mobile service revenue was up 7.3 percent, with mobile data revenue up 18.5 percent year over year, the company said. Consumer wireline revenue was up 2.5 percent, the largest increase in years, driven by consumer adoption of Fios broadband and television services, the company said in a press release.
Mobile revenue more than offset revenue drops in Verizon's wireline and enterprise divisions.
Earnings per share were $0.64, meeting analyst expectations.
Officials pointed to growth at Verizon Wireless as the reason for gains. The mobile service combined "strong revenue growth with record margins and high customer loyalty," Lowell McAdam, Verizon chairman and CEO, said in a statement.
Mobile service revenue was $15.8 billion for the quarter, with mobile data revenue $6.9 billion, up by $1.1 billion from a year ago. Verizon Wireless added 1.2 million retail customers during the quarter, bringing the number of retail customers to 94.2 million the company said.
In its wireline division, Verizon's revenue was $9.9 billion for the quarter, down 3.1 percent from a year ago. But average revenue per user, or ARPU, grew by 8.5 percent in the consumer area, increasing to $100.26, the company said. ARPU for Fios customers stands at more than $149, the company said.
Verizon added 134,000 Fios broadband and 120,000 Fios TV customers during the quarter. The company now has 5.1 million Fios broadband and 4.5 million Fios TV customers. It has 8.8 million broadband customers, including DSL, an increase of 2.6 percent over a year ago.
Global enterprise revenue was $3.8 billion, down 3.4 percent from a year ago.
Grant Gross covers technology and telecom policy in the U.S. government for The IDG News Service. Follow Grant on Twitter at GrantGross. Grant's e-mail address is email@example.com.