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

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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

+- Press Release

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