Verizon Communications announced solid financials for the second quarter of 2015, a period which saw it complete its $4.4 billion acquisition of AOL.
“We’re now poised to offer customers exciting new over-the-top mobile video services, and we look forward to a very positive second half of 2015,” Lowell McAdam, chairman and CEO (pictured), said.
But it was noted that the company is now estimating consolidated revenue growth of “at least 3.0 per cent” for 2015, excluding AOL contribution. It had previously said it expected growth of “at least 4 per cent”.
The company reported a profit of $4.23 billion, up slightly from $4.21 billion, on revenue of $32.22 billion, up 2.4 per cent for $31.48 billion. Service revenue was down 2.4 per cent to $28.36 billion, which was offset by growth in wireless equipment revenue.
It said that its top-line growth was driven by “wireless and FiOS [Fibre], with emerging revenue streams from IoT and telematics”. The new businesses contributed $165 million of revenue in Q2.
For its Wireless unit, EBITDA was $9.92 billion, up 9.1 per cent from $9.09 billion, on revenue of $22.61 billion, up 5.3 per cent from $21.48 billion. Wireless service revenue decreased 2.2 per cent to $17.69 billion.
Although the AOL deal closed on 23 June, Verizon said that the numbers “do not reflect any results from AOL operations since these were immaterial for the last seven days of the quarter”. AOL’s financials will be fully included from Q3.
The company ended the period with 109.55 million retail connections, a figure which excludes wholesale or IoT business.
It added 842,000 4G smartphones to its contract customer base during the three months, with around 73 per cent of the retail postpaid user base now having such devices. Verizon’s LTE network handled around 87 per cent of total wireless data traffic during the quarter.
It also said its network densification plans are “on schedule”, which includes the deployment of small cells, distributed antenna systems, and in-building technology.