Verizon reported its highest quarterly revenue growth rate in the past six quarters: total operating revenues in second-quarter 2014 were $31.5 billion, a 5.7 percent increase compared with second-quarter 2013 and operating income was $7.7 billion, a 17.2 percent increase compared with second-quarter 2013. Verizon reported $1.01 in EPS in second-quarter 2014, compared with 78 cents per share in second-quarter 2013, including an after-tax gain of $434 million (10 cents per share) related to the sale of 700 MHz A Block spectrum licenses.
Chairman and CEO Lowell McAdam said: “Verizon’s second-quarter results continue to demonstrate our ability to deliver strong customer growth, with equally strong financial performance, in a dynamic and competitive environment. We have great momentum heading into the second half of the year. We remain focused on profitable growth and on meaningful network investments that provide our customers with the best, and with a continuously improving, overall experience.”
Some highlights from the companys 2Q2014 report:
- Total revenues for Verizon Wireless were $21.5 billion in second-quarter 2014, up 7.5 percent year over year.
- Retail postpaid ARPA (average revenue per account) increased 4.7 percent over second-quarter 2013, to $159.73 per month.
- Verizon Wireless added 1.4 million retail net connections, all of which were postpaid, in the second quarter. These additions exclude acquisitions and adjustments.
- At the end of the second quarter, the company had 104.6 million retail connections. This includes 98.6 million retail postpaid connections, a 4.6 percent increase year over year.
- At the end of Q2, smartphones accounted for nearly 75 percent of the Verizon Wireless retail postpaid customer phone base.
- Verizon Wireless' AWS spectrum-enhanced XLTE service is now available in more than 350 markets across the country.
- Total wireline revenues were $9.8 billion in second-quarter 2014, up 0.3 percent year over year. This is the first quarterly year-over-year increase in total wireline revenues in more than seven years.
- In second-quarter 2014, Verizon added 139,000 net new FiOS Internet connections and 100,000 net new FiOS Video connections. Verizon had totals of 6.3 million FiOS Internet and 5.4 million FiOS Video connections at the end of the second quarter, representing year-over-year increases of 9.3 percent and 7.6 percent, respectively.
- FiOS Internet penetration (subscribers as a percentage of potential subscribers) was 40.1 percent at the end of second-quarter 2014, compared with 38.6 percent at the end of second-quarter 2013. In the same periods, FiOS Video penetration was 35.3 percent, compared with 34.5 percent. The FiOS network passed 19.3 million premises by the end of second-quarter 2014.
- By the end of second-quarter 2014, 55 percent of consumer FiOS Internet customers subscribed to FiOS Quantum, which provides speeds ranging from 50 to 500 megabits per second, up from 51 percent at the end of first-quarter 2014.
- In Q3, Verizon migrated 70,000 customers from copper to fiber access.