14 DAY TRIAL // Mobile phone carrier Verizon Wireless announced on Monday its financial results for the second quarter of the ongoing year and posted $15.5 billion in revenue, which represents a growth of 27.7 percent compared to the same time frame last year, or a 7.6 percent increase on a pro forma basis. At the same time, the company also announced that wireless retail gross customer additions had gone up by 26.0 percent year on year.
However, the carrier also added that, on a pro forma basis, retail gross customer additions had gone down by 0.6 percent, as a result of slower additions on the business market. Even so, the operator ended the second quarter with 87.7 million customers, which marks an increase of 27.7 percent year over year (7.9 percent on a pro forma basis). When it comes to the total customers and revenues, Verizon Wireless proves to be the largest in the US, the company added.
The number of retail customers was also the largest any other operator in the United States had. Around 1.1 million retail customers were added during the three-month time frame, reaching a total number of 85.2 million retail customers, the company states. When it comes to the churn and retail post-paid churn rates, they both improved compared to the previous quarter, reaching 1.37 percent and 1.01 percent, respectively.
Other details that Verizon provided include a 0.8 percent drop in service ARPU on a yearly basis, while the total data ARPU went up by 18.9 percent to $14.96. The company's wireless operating income margin was 28.8 percent, going up from a year ago. Earnings before interest, taxes, depreciation and amortization margin on service revenues were 46.3 percent.
“Verizon posted continued strong wireless revenue growth and new levels of sales success with FiOS in the second quarter,” said Verizon Chairman and CEO Ivan Seidenberg. “This resilience in consumer demand for our wireless, broadband and video products has again produced overall revenue growth despite cyclical impacts, especially in business markets. Verizon’s continued strong cash flow reflects the exceptional focus and disciplined execution across our business.”