Verizon revenue rises steadily, driven by wireless service growth

A record number of new tablet users helped Verizon continue its growth

Record numbers of new tablet users, and the first rise in fixed-line revenue in seven years, drove Verizon Communications' second-quarter revenue up 5.7 percent year on year, it reported Tuesday.

Revenue for the quarter ended June 30 totaled US$31.5 billion, up from $29.8 billion a year earlier.

Wireless services continued to contribute the bulk of the company's revenue and growth, rising 5.9 percent to $18.1 billion, from $17.1 billion a year earlier. The company signed up 1.4 million net new retail postpaid customers, 1.15 million of them tablet users. That takes the company's total number of retail connections to 104.6 million, 75 percent of them smartphone users.

In the fixed-line segment, revenue crept up 0.3 percent to $9.8 billion in the quarter -- but Verizon hailed this as a victory, the first year-on-year increase it has seen in quarterly wireline revenue in over seven years. The company added 139,000 net new fiber Internet subscribers and 100,000 net new fiber video subscribers, taking the totals to 6.3 million and 5.4 million, respectively. Revenue from the Fios services grew 14.4 percent year on year to $3.1 billion, it said.

The company reported net profit of $4.3 billion, down from $5.2 billion a year earlier. However, due to its acquisition of Vodafone's share in Verizon Wireless, a greater proportion of the profit was attributable to Verizon: $4.2 billion, almost doubling from the year-earlier figure of $2.2 billion. Earnings per share attributable to Verizon grew less rapidly, up 29.5 percent year on year to $1.01, as a result of the issuance of new shares to finance the Vodafone deal. Almost half of the per-share earnings growth came from a one-off sale of wireless spectrum.

For the full year, Verizon expects wireless and fixed-line businesses to continue to grow profitably, it said.

Peter Sayer covers open source software, European intellectual property legislation and general technology breaking news for IDG News Service. Send comments and news tips to Peter at peter_sayer@idg.com.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuestelecommunicationfinancial resultsVerizon Communications

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Peter Sayer

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?