Verizon has reported a decline in net income for second-quarter 2009 as weaknesses in the company’s traditional wireline business continued to impact earnings. Net income totalled US$1.48 billion, or US$0.52 a share, down from US$1.88 billion, or US$0.66 a share, a year earlier. Excluding acquisition costs, profit was US$0.63 a share, in line with the average estimate of analysts in a Bloomberg survey. Total operating revenues grew 11.3 percent year-on-year to US$26.9 billion, including revenues from mobile operator Alltel, which it acquired in January 2009. On a pro forma basis (assuming the Alltel acquisition had occurred a year earlier), operating revenue growth was 1.9 percent. Wireless revenue reached US$15.5 billion, up 27.7 percent year over year and up 7.6 percent on a pro forma basis, but wireline revenue declined 5.2 percent to US$11.5 billion.

Total mobile customers at Verizon Wireless rose to 87.7 million in the quarter, up 27.7 percent over the year. Excluding acquisitions and adjustments, the operator said it recorded 1.1 million net customer additions in the quarter, below the 1.4 million added by its major rival AT&T, which reported 2Q09 numbers last week. Mobile service ARPU decreased 0.8 percent year-on-year to US$51.10, but was up 0.6 percent on a pro forma basis. Total data ARPU was US$14.96, up 18.9 percent year-on-year and up 22.8 percent on a pro forma basis. Wireless operating income margin, adjusted for acquisition-related charges and integration costs, was 28.8 percent, up 20 basis points year over year and up 70 basis points on a pro forma basis. In a statement, Verizon said that the integration of Alltel operations remains on schedule, with nearly half of the customers acquired in the Alltel merger converted to the Verizon Wireless billing system as of mid-July. Meanwhile Verizon Wireless stressed it is on schedule to offer the first commercial LTE-based service in the US in 2010, having released an initial set of technical specifications for devices to run on its LTE network in April. Recent reports have suggested Verizon is prepping a Q1 2010 launch (rather than Q2) in order to beat rival MetroPCS to LTE launch.