x
Gigabit

Verizon Reports $1.83B Profit for Q2

Verizon Wireless added more subscribers than analysts expected in the second quarter, a factor that helped the wireless venture's part owner, Verizon Communications Inc. (NYSE: VZ), report revenues up by 3.7 percent year-on-year Thursday morning.

Verizon Wireless -- the joint venture between Verizon and Vodafone Group plc (NYSE: VOD) -- added 1.2 million net customers in the second quarter, including 888,000 new subscribers on a monthly contract. Analysts polled by Thomson Reuters had expected 666,000 of these monthly "post-paid" subscribers to be added in the second quarter.

Verizon Wireless ended June with 94.2 million retail customers, a 4.9 percent year-on-year increase, including 88.8 million customers on a monthly contract.

Verizon also added 134,000 FiOS Internet and 120,000 FiOS Video net wireline subscribers. The company reports that average revenue per user (ARPU) now tops $100 a month, with 65 percent of consumer wireline revenues generated by FiOS services.

Overall, Verizon reported net profits of $1.83 billion, or $0.64 a share, up from $1.61 billion, or $0.57 a share, a year ago. The operator's revenues increased by 3.7 percent to $28.55 billion.

This matched expectations of analysts polled by Thomson Reuters.

— Dan Jones, Site Editor, Light Reading Mobile

joset01 12/5/2012 | 5:27:30 PM
re: Verizon Reports $1.83B Profit for Q2

Fran Shammo just said: "With the rumor mill out there of a new phone out there in the fourth quarter people may be waiting."


 


Think that's an iPhone 5 tease? Maybe so...

kaps 12/5/2012 | 5:27:19 PM
re: Verizon Reports $1.83B Profit for Q2

Just found it myself. 2.5 million 4G LTE phones, 2.7 million iPhones. Would love to see some of the financial analysts ask them on one of these calls how much each 4G LTE customer has cost from a marketing perspective.

kaps 12/5/2012 | 5:27:19 PM
re: Verizon Reports $1.83B Profit for Q2

Just found it myself. 2.5 million 4G LTE phones, 2.7 million iPhones. Would love to see some of the financial analysts ask them on one of these calls how much each 4G LTE customer has cost from a marketing perspective.

kaps 12/5/2012 | 5:27:19 PM
re: Verizon Reports $1.83B Profit for Q2

Did they break out 4G LTE vs. iPhone numbers? Is the iPhone still outselling all 4G LTE combined?

kaps 12/5/2012 | 5:27:19 PM
re: Verizon Reports $1.83B Profit for Q2

Did they break out 4G LTE vs. iPhone numbers? Is the iPhone still outselling all 4G LTE combined?

joset01 12/5/2012 | 5:27:17 PM
re: Verizon Reports $1.83B Profit for Q2

3.2 million LTE devices sold all told, 2.5 being smartphones vs. 2.7 million iphones (down 16% q/q for iPhone). See here for commentary.


 


I would doubt that LTE phone subsidies are higher than the iPhone subsidy. If you're talking about customer acquisition cost as a function of LTE network spend I've never heard VRZN break that down. They did say capex would be down to flat this year.


Its not like they spent nothing on marketing the CDMA iPhone either.


 

HOME
Sign In
SEARCH
CLOSE
MORE
CLOSE