Verizon 2nd quarter earnings: 1.4 million net adds

Verizon 2nd quarter earnings: 1.4 million net adds
Earnings are up, revenues are up, and customers are up. That pretty much summarizes the second quarter earnings statement issued by Verizon this morning.

Not only are wireless customers and revenues up, but wireline operations posted growth too, in legacy as well as FiOS customer growth with over 200,000 net additions.

Wireless as expected posted the most impressive numbers however. Big Red capped its sixth consecutive quarter of good news with 1.4 million net added retail connections, and an admirably low postpaid churn of just 0.94%.

The mobile additions breakdown as 304,000 postpaid net adds, and 1.15 million tablets. 75% of phone sales are smartphones. That fueled growth of average revenue per account to increase 4.7% to approximately $160 per-month. Those gains have an air of modesty to them, but still commendable given the saturation of the market, and the competition being put up by the likes of T-Mobile and AT&T.

Verizon now boasts a customer base of 104.6 million subscribers, of which, 98.6 million are postpaid. Couple that with the news that Verizon also has the highest number of customers paying over $100 per month for service, roughly 51%, and it becomes easier to add up the wireless revenues which reached about $18.1 billion for the quarter, up 6% compared to the same period last year.

Verizon maintained its guidance for the remainder of the year.

source: Verizon

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9 Comments

1. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

I wonder how many of those adds came from Sprint?

3. Slammer

Posts: 1515; Member since: Jun 03, 2010

I for one, have elected to stay put. After 7 years with Sprint, the network has been showing a huge improvement. In all honesty, the transition from the old network to the new was rough. Experienced a lot of dropped calls and poor data connectivity. Since the transition, I have never had better network performance and the network isn't even completed yet. I would've fell into the logs of complaints if I hadn't been previously instructed by Sprint that I would experience issues during upgrades. Sprint has been upfront and it is delivering a very viable network. John B.

2. Slammer

Posts: 1515; Member since: Jun 03, 2010

This is more proof that Tmobile's "Uncarrier" branding is not hurting AT&T or Verizon. I have said it a million times before, propping up Tmobile as a force, is only producing a limited effect. You can't fight higher paying customers with least profitable ones. Verizon and AT&T have never been harmed by trinkets and fake chandeliers. The only way to fight these two behemoths now, is to create a third power. John B.

4. zinger69

Posts: 86; Member since: Feb 13, 2014

I think that's the argument Masayoshi Son is trying to make to justify Softbank buying T-Mo.

5. corporateJP

Posts: 2458; Member since: Nov 28, 2009

When you have a million plus tablets, that really isn't saying much, especially when those tablet adds are usually only $10 monthly revenue streams. Like how they're steroiding themselves up for the earnings report...

6. dwillopp

Posts: 18; Member since: Jul 08, 2010

More tablets = more data being used on these tablets = bumps in Gigabyte allocation = more than just $10 ;)

9. droidlife

Posts: 4; Member since: Feb 01, 2013

That is like saying back in the day that $10 share lines didn't matter. I see it as a positive sign they are keeping pace and changing with the times.

7. xtroid2k

Posts: 601; Member since: Jan 11, 2010

In the end it doesn't matter how the money comes in, so long as the share holders are happy those tablets will matter and mean something. And whether someone spends $5 or $500 they are still a customer.

8. hkendrick3

Posts: 6; Member since: Dec 13, 2012

Of course look how they are bending there customers over as long as you like that take it Verizon will always be No #1

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