Strong mobile showing lifts Verizon in Q2 - Mobile World Live

Strong mobile showing lifts Verizon in Q2

19 JUL 2012

US operator Verizon Communications reported rising Q2 earnings and revenue today on the back of another strong performance at its mobile arm.

Revenues were up 3.7 percent year-on-year to US$28.6 billion, while second-quarter profit rose 12.3 percent to US$1.83 billion (US$0.64 per share). EBITDA increased to US$9.8 billion, up from US$9.0 billion.

"Verizon delivered another strong quarter of earnings growth and cash generation, and we remain on track to meet our financial objectives and produce solid double-digit earnings growth for the year," said Lowell McAdam (pictured), Verizon chairman and CEO.

Verizon Wireless posted a 7.3 percent year-on-year increase in service revenues (to US$15.8 billion), which offset a 3.1 percent sales decline in the fixed-line business (to US$9.9 billion).

Highlights on the mobile side included an 18.5 percent increase in data revenues (up US$1.1 billion to US$6.9 billion), and a 3.7 percent rise in postpaid ARPU to a record US$56.13.

The operator added 1.2 million retail net mobile customers in the quarter (including 888,000 postpaid customers) bringing the total to 94.2 million. Smartphones constituted 50 percent of the postpaid customer phone base, up from 47 percent at the end of Q1.

It sold 2.7 million iPhones in the period, up from 2.3 million a year ago but down from 3.2 million in Q1, suggesting that people may now be waiting for the new model. It sold 5.9 million smartphones in total.