Verizon adds subscribers, beats the street in Q2 on account of surging iPhone 4 sales; Lowell McAdam takes over as CEO

Verizon adds subscribers, beats the street in Q2 on account of surging iPhone 4 sales; Lowell McAdam takes over as CEO
Verizon Communications posted strong results for the second quarter beating analysts' estimates with net income of $1.61 billion, translating into 57 cent gain per share, up from a loss of $1.19 billion a year earlier. Big Red's revenue grew 2.8% to reach $27.54 billion in the second trimester. Earlier, Wall Street analysts predicted per share earnings of 55 cents with revenue projected at $27.42 billion. 

But equally as important is the carrier's addition of 1.3 million new contract subscribers, a figure suprassing what Verizon has added in the last two years and a half. AT&T, in comparison, only added 379,000 post-paid subscribers in the same period.

iPhone sales became one of the biggest drivers of Big Red's growth with a total of 2.3 million units sold. Verizon still sells less iPhones than rival AT&T, which pushed 3.6 million of Apple's handsets to customers. 

LTE devices including smartphones stood at a solid 1.2 million, picking up pace as Verizon expands its 4G portfolio. At the same time, the carrier is furthering the reach of LTE as now more than 100 million Americans have access to the network.

Verizon also announced news about a shuffle at the top executive level, naming current COO Lowell McAdam as its new CEO effective August 1st. McAdam is replacing Ivan Seidenberg who will remain chairman to "facilitate the transition." Verizon has thus completed a CEO succession plan which the company started last year.

source: Verizon

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32 Comments

1. exidor

Posts: 9; Member since: Jun 28, 2009

Why does it seem most people who write articles about Verizon wireless can't seem to separate Verizon and Verizon wireless. This article sites stock prices. Verizon wireless is a non publicly traded company. Verizon wireless did not loose money last year. They average over the last 3 years of a profit at a 45% rate. This is sloppy journalism at best. Phonearena should be ashamed of passing this along with out obviously reading it.

4. g unregistered

Where did you see Verizon Wireless pointed out in the article? I can only see Verizon, which seems like the generic term for the publicly traded company.

8. remixfa

Posts: 14605; Member since: Dec 19, 2008

actually, it says verizon communications in the very first sentence and then cites stocks. Exidor is right on the money. Verizon communications is landlines, verizon wireless is cell phones. They are not the same company. VZW is private while VZC is a publicly traded company.

11. remixfa

Posts: 14605; Member since: Dec 19, 2008

anyone else notice that "att had "strong" results" with a measily 330k subscribers.. but VZW just "added subscribers" at 1.3 million postpaid? consistency people!!

12. Gawain

Posts: 448; Member since: Apr 15, 2010

VZComm is the parent of VZW. Vodafone is a non-participating minority owner of VZW. This essentially makes VZW is specific business unit of VZComm. If they were truly "separate" companies, then VZComm would not be including VZW's results in their quarterly and annual reports. Vodafone keeps their interest because it is a high-growth asset, unlike the rest of the European wireless sector which is saturated.

15. taco50

Posts: 5506; Member since: Oct 08, 2009

Wrong as usual Verizon Comm owns Verizon Wireless so they're the same company just different divisions.

21. Whateverman

Posts: 3295; Member since: May 17, 2009

I can understand the confusion with this issue, but Verizon wireless is a joint venture between two different companies. This is a different company from it's parent company.

25. taco50

Posts: 5506; Member since: Oct 08, 2009

Try reading my links below. Guess you learned something.

32. Whateverman

Posts: 3295; Member since: May 17, 2009

Let's try and keep it civil taco. Joint ventures are typically are not considered a decision of any one company. Cello partnership is the name of the company and the name that appeared on my W2's. And in the first paragraph of that link, it confirms that Cellco Partnership is doing business as Verizon Wireless. If you talk to any VZW employees, they will tell you it is a separate company partially owned by Verizon and Vodaphone. In fact Vodaphone is one of the "departments" we used to transfer people to when they needed a gsm phone. So we all worked together to help our customers, but it is considered a separate entity. :)

22. remixfa

Posts: 14605; Member since: Dec 19, 2008

Taco. Less sour cream and more research. I used to work for vzw. It is a seperately run private untraded company. It is not run by or put in as part of vz landlines quarterly earnings or stock price. As usual you prove to be an idiot with nothing useful to say.

23. taco50

Posts: 5506; Member since: Oct 08, 2009

On June 30, 2000, the addition of GTE Wireless' assets, in connection with the merger of Bell Atlantic and GTE to form Verizon Communications, made Verizon Wireless the nation's largest wireless communications provider. http://en.wikipedia.org/wiki/Verizon_Wireless#Partnerships You used to work for VZW. that explains a lot. I guess you got fired and now work for a 2nd rate company. http://seekingalpha.com/article/281173-verizon-communications-management-discusses-q2-2011-results-earnings-call-transcript Here's a link where Verizon communications talks about Q2 results including wireless. This is almost too easy. You're literally wrong every time you post.

26. remixfa

Posts: 14605; Member since: Dec 19, 2008

u really need to learn reading comprehension. OI. Next time I'll put it in a pop up book. Notice in the post u responded to i said VZWireline and VZWireless, not VZCommunicatons. Notice how I said it was not part of VZWireline or publically traded as part or like VZWireline. Im quite aware of who the parent company and partners are. You try so hard to discredit me you just end up looking dumber and dumber. I really dont know how much worse u could look though. Keep trying. Maybe u should hold hands with gemini and Miz to get some extra isheep power?

28. taco50

Posts: 5506; Member since: Oct 08, 2009

Lol so which is it remix? Isn't VZwireline = VZ Communciations? So either VZW is part of them or not. If they're not how come the landline business which is called VZ Comm reported VZW results as part of their results? Why can't you admit when you're wrong? Everyone can read what you posted above and now you're trying to twist around what you said, but it just makes you look dumber.

29. taco50

Posts: 5506; Member since: Oct 08, 2009

And lol you said it's not part of Verizon Communications. You never said VZwireline. "Verizon communications is landlines, verizon wireless is cell phones. They are not the same company."

30. remixfa

Posts: 14605; Member since: Dec 19, 2008

i corrected myself already. my original post said communications, my second post... which is the one YOU replied to said wireline. Again, READING COMPREHENSION.

31. taco50

Posts: 5506; Member since: Oct 08, 2009

where' is this phantom post that I don't see. Also even if you changed the way you worded it you're still wrong.

24. Gawain

Posts: 448; Member since: Apr 15, 2010

Verizon Wireless most certainly is listed as a part of the assets and financial performance of Verizon Communications. In fact, even minority holdings of Verizon around the world are accounted for in their financial performance. Verizon Communications owns 55% of the "Cellco Partnership LLC" (aka Verizon Wireless). Vodafone owns the other 45%. Vodafone assumes no active management role in Verizon Wireless. In fact, I'm pretty sure that Vodafone does not even get a dividend off their ownership. Verizon Wireless does not have its own Board of Directors.

3. davecann2

Posts: 460; Member since: Mar 15, 2011

Uggg... another apple article and the Fandroids come out of hibernation to bash it. It’s getting tiresome... give it a rest troll!

5. exidor

Posts: 9; Member since: Jun 28, 2009

Ahh the whole second section about LTE devices while still calling Verizon. Implying its 1 and the same company. Verizon stock price and Verizon releasing 4g LTE devices. Did youjust start reading this year. Your coming off a little slow, you might be a retard.

6. snowgator

Posts: 3621; Member since: Jan 19, 2011

It seems like half the story. 1) Was 1.3 million a net gain? Or is that not including what Verizon may have lost? Same question for AT&T's 379,00 new customers. 2) Was most of the 2.3 million of the iPhone's sales from existing (upgrading) Verizon consumers? Or what part of them were new contracts? Again, same question for AT&T's iPhone sales, which were from both the iPhone 4 and the 50.00$ iPhone3GS. While these numbers may be harder to come by as the carriers don't want to be seen losing customers, some of the really smart people have most likely figured it out. Really curious as to these results.

7. networkdood

Posts: 6330; Member since: Mar 31, 2010

Great call on the 3GS sales. That possibly is THE reason AT&T beat Verizon for iphone activations. I am sure somewhere on the net there is more details.

9. ChrisTheTechGuy

Posts: 85; Member since: Nov 04, 2010

I believe in the report I read somewhere on ATT's Q2 information their net churn was 1.14%, or something close to it, which is quite high

10. remixfa

Posts: 14605; Member since: Dec 19, 2008

also what were the android sales. they were mysteriously absent from this article. it just cites iphone and LTE. Yea, all LTE phones are androids, but they make a fraction of the total androids.

14. gallitoking

Posts: 4721; Member since: May 17, 2011

well is simple,.... nobody cares about android phones not being LTE.. .. name a verizon 3G phone other than the recently launch Droid X2 and the Droid 3? that is worth our time...

27. remixfa

Posts: 14605; Member since: Dec 19, 2008

other than 2 of its biggest sellers? lol. Tech geeks forget, a lot of consumers dont buy the biggest and most expencive. Not everyone has or cares about 4G.

16. taco50

Posts: 5506; Member since: Oct 08, 2009

No one cares about android and that's why it's not reported. iPhone crushed LTE in sales. You take all of LTE including internet devices and it was only half of the iPhone sales. iPhone outsold all LTE android phones probably 3 to 1. Massacre.

17. Beast Malone unregistered

Friend, my question to you is this: How often or how many times a day do you have intimate relations with your Apple device(s) directly and how do you make this possible? Do you have a case with a built-in "pocketpussy"?

19. derp unregistered

that same question could be asked to the inbred android fanatics on this site.

13. tgolds unregistered

Verizon Communications Inc. provides communication services. The company operates through two segments, Domestic Wireless and Wireline. The Domestic Wireless segment offers wireless voice and data services; and sells equipment in the United States

18. G-reg unregistered

Yay, tards rehashing the same stuff we all know. 1. Phonearena isnt the sharpest when writing articles. 2. Taco is obsessed with is**ts and cant see that your fanboyism doesnt make your phone any better or worse than anyone elses.

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