Verizon Q2 revenues rise 2.8% to USD27.54 billion

26 Jul 2011

US telco Verizon has reported revenues of USD27.54 billion for the three months ended 30 June 2011; this figure represents an increase of 2.8% year-on-year. The company’s net income for Q2 increased from USD553 million to USD3.6 billion year-on-year; no reason has been given for the significant increase, although the year-ago period saw Verizon itself impacted by an attributable loss of USD1.2 billion. Verizon’s CAPEX for 1H11 totalled USD8.9 billion, compared with USD7.6 billion in the first six months of 2010; Verizon expects its FY2011 capital expenditure to be broadly similar to its 2010 investment of USD16.5 billion.

In operational terms, Verizon Wireless saw its total subscriber base grow 4.1% to reach 89.74 million, of which 85.29 million are connected to post-paid contracts. In addition, Verizon claimed 16.56 million ‘wholesale and other connections’ at the same date. During 2Q11, Verizon Wireless reports that it sold 1.2 million Long Term Evolution (LTE)-suitable smartphones, although a total 4G subscriber figure has not been released by the operator. As of 21 July 2011, Verizon Wireless said that its LTE network was available in 102 markets across the country, covering a population of more than 160 million. By year-end, Verizon’s LTE network is expected to be available in more than 175 markets across the country, covering a population of more than 185 million.

Elsewhere, Verizon added 189,000 net new FiOS internet connections and 184,000 net new FiOS TV connections in 2Q11, to take its subscriber totals to 4.5 million (internet) and 3.8 million (TV) respectively. Verizon said that its fibre-optic FiOS network passed a total of 16.1 million premises at end-June 2011. Overall broadband connections totalled 8.6 million in 2Q11, representing an increase of 3.3% year-on-year. FiOS connections more than offset a decrease in DSL-based connections, resulting in a net increase of 62,000 broadband connections quarter-on-quarter. Meanwhile, total voice connections – including both FiOS ‘Digital Voice’ connections and traditional switched access lines, declined 7.9%, to 25.0 million – the smallest year-on-year decline since 2Q07.

Verizon CEO Ivan Seidenberg commented: ‘In terms of earnings growth and the acceleration of revenue growth, this has been one of Verizon’s best quarters since the 2008 economic downturn. We expanded sequential margins in both our wireline and wireless businesses, and in the second half of the year we expect Verizon to build on this strong, positive momentum to continue to drive profitable, sustainable growth. We expect Verizon Wireless to gain share in the retail post-paid market and widen its network-quality lead throughout 2011. We also continue to see strong customer demand for FiOS internet and TV, and for cloud and other strategic services. At the same time, we remain focused on our cost structure, as we deliver improvements in wireline margins quarter after quarter’.

United States, Verizon Communications, Verizon Wireless