Verizon profits double driven by wireless data boom, but subscriber adds miss expectations

Verizon profits double driven by wireless data boom, but subscriber adds miss expectations
Verizon Communications, owning the country’s biggest carrier Verizon Wireless, reported double the profit it had in Q3 2010, growing quicker than the Street’s projections, mainly due to its wireless data services, but missed expectations for subscriber additions.

Verizon registered $1.38 billion in profits, translating into 49 cents per share, double the $659 million of profit in the same quarter last year. Revenue also grew better than expected totalling $27.9 billion for the third trimester of the year, up from $26.5 billion.

Subscriber additions amounted to 882,000 additions - a solid result, however still short of analysts’ projections for 1.04 million. The total number of subscriber at Verizon now stands at 107.7 million.

The wireless segment alone accounted for $17.7 billion of the total revenue, growing by a healthy 9.1% on the year. There were no details about sales of particular devices like the iPhone 4 for example and the carrier’s traditionally strong DROID brand. 

“Verizon Wireless delivered impressive results across the board in the third quarter, and we are geared up for an even better fourth quarter, with new smartphones, tablets and data devices coming to market,” CEO Lowell McAdam said.

The carrier reported that now 39% of its post-paid subscribers use smartphones, up from 36% in the last quarter but still less than the above 50% at other carriers like AT&T. We expect to hear more about that at the conference call starting soon, so stay tuned.

source: Verizon



1. snowgator

Posts: 3621; Member since: Jan 19, 2011

Verizon is so light years ahead in network, customer service rankings, and subscribers that it is almost unfair right now. When the GS2 wasn't coming to them, there was a lot of disgruntled talk, but now with the trio of Android monsters they have coming and a fourth option in the Bionic that would be a franchise starter on other carriers even that gripe is ancient history. I am hoping for a WP, but really I think I would be very happy with any of those options without it. What is there not to respect there?

2. ayephoner

Posts: 858; Member since: Jun 09, 2009

their data prices are absurd for new customers though. if i werent locked in to unlimited data, i wouldnt even consider them. its insulting that they push these devices and services on you that requires the use of so much data and then offer you such limited, expensive plans. while it is fair to charge more to customers that use more, the structure they've come up with is pretty crazy. i'd guess this is why they are seeing less new subscribers than they want.

3. arcq12

Posts: 733; Member since: Oct 13, 2011

I think the plans are reasonable because of the quality of phones and coverage you get from verizon are the best in general. im a heavy data user but I only use the 2GB data when I'm on the go and I use my wifi at home. it pretty much works for me.

5. remixfa

Posts: 14605; Member since: Dec 19, 2008

I get all that, with fast high quality phones and no overages at tmobile for less than half the price. If you live in a city where coverage is the same between multiple carriers, why would u pay more? its about 1500-2500 per line difference over 2 years. the difference in a family plan could buy a cheap car or put a down payment on a house.. lol.

4. networkdood

Posts: 6330; Member since: Mar 31, 2010

I wonder how much they screwed their employees out of, from the new contract.... AT&T is doing much better than 2-3 years, but always behind Verizon....I hope the wife does decide to switch back to Verizon, so that I can get an awesome Android upgrade.

6. Locuzt

Posts: 1; Member since: Oct 21, 2011

I guarantee you that if sprint also had landline servcies, it woudl be a very tough competition.

7. ChrisTheTechGuy

Posts: 85; Member since: Nov 04, 2010

Shafty reporting whenever they mix vzcomm and vzw together. you may as well include Vodafone's profits in there with it since its half vodafone and half vz comm's joint venture. or how about you just keep vzw separate when talking earnings. and @remixfa, i need to see side by side comparisons of all the rate plans for tmo and vzw to believe that its 1500-2500/yr. you're saying that its at minimum a $50/line difference and up to $100/line difference a month. not sure what kind of house you're putting a down payment on with 6k, but I'm sure its a bad neighborhood or a fixer-upper

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit for samples and additional information.