Verizon reports Q2 growth, driven by mobile, Fios

Nieuws Algemeen Verenigde Staten 21 JUL 2015
Verizon reports Q2 growth, driven by mobile, Fios
Verizon Communications reported USD 32.22 billion in operating revenue in the second quarter, up 2.4 percent on USD 31.48 billion in the second quarter of 2014. The operator said top-line revenue growth was driven by wireless and FiOS, with emerging revenue streams from the IoT and telematics, and continued strong cash flow. Operating profit grew 1.8 percent to USD 7.82 billion and net profit by 0.7 percent to USD 4.35 billion, for a 2 percent increase in basic earnings per common share to USD 1.04. Verizon expects a higher year-over-year revenue growth rate in the third quarter and at least 3 percent growth in the full year, both excluding revenue from AOL, which it acquired in the second quarter. 

Verizon’s wireless operations generated USD 22.61 billion of revenue in the second quarter, up 5.3 percent on the year-earlier period. This included service revenue down by 2.2 percent and equipment revenue up by 61.8 percent to USD 3.86 billion as more customers bought devices with instalment pricing. Wireless EBITDA rose by 9.1 percent to USD 9.92 billion. 

Verizon Wireless had 109.5 million retail connections at the end of June, 4.7 percent more than a year earlier. Postpaid retail customers increased by 1.1 million in the second quarter and by 5.2 percent in a year to 103.7 million at the end of June. About 7.2 percent of Verizon’s retail postpaid base upgraded to a new device in the quarter and the company continues to see opportunities to upgrade its base of around 16 million basic phones and 9 million 3G phone customers to 4G. 

In the wireline segment, consumer revenue rose by 4.5 percent to USD 4 billion in the second quarter, compared to a year earlier. Total FiOS revenue increased by 10 percent to USD 3.4 billion. The wireline EBITDA declined by 2.1 percent to USD 2.21 billion. 

Verizon added 72,000 net new FiOS internet connections and 26,000 new FiOS video connections in the quarter to reach 6.8 million and 5.8 million, respectively. Some 64 percent of FiOS internet customers subscribed to FiOS Quantum, offering speeds of 50 to 500 Mbps. The highest growth rate was seen in the 75 Mbps tier, to which 23 percent of FiOS customers subscribe. 

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Algemeen

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Verizon

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Verenigde Staten

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Voice services, Data services, Messaging, Sales figures, Financial figures, Wireline, Wireless, Internet Access

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