Verizon Communications Inc. (NYSE:VZ) released the results from its second fiscal quarter, posting adjusted earnings of 91 cents per share on $31.5 billion in revenue. Analysts had been expecting earnings of 90 cents per share on $31.1 billion in revenue. In the same quarter a year ago, Verizon reported 73 cents per share in adjusted earnings and $29.79 billion in revenue.
Reported earnings per share were $1.01, compared to 78 cents in the same quarter a year ago.
Breaking down Verizon’s earnings
During the second quarter, Verizon added 1.4 million net retail connections and reported a .94% retail postpaid churn. At the end of the quarter, the wireless carrier had 104.6 million total retail wireless connections and 98.6 million total retail postpaid connections. The company reported a 5.9% increase in service revenues year over year and a 5.3% increase in retail service revenues. Verizon saw an operating margin of 32.5% and a segment EBITDA margin of 50.3% on service revenues.
In its wireline segment, Verizon reported a 5.3% increase in consumer revenues, marking the eighth quarter in a row in which growth was higher than 4%. Average revenue per user rose 11% in the segment. Verizon also reported a 14.4% increase in FIOS revenues year over year, including 139,000 FiOS Internet net additions and 100,000 FiOS video net additions. At the end of the quarter, the company had 6.3 million FiOS Internet subscribers and 5.4 million FiOS video subscribers.
Verizon reiterates guidance
“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,” said Chairman and CEO Lowell McAdam in a statement. “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.”
The mobile carrier also reiterated the guidance it provided previously for this year. It expects to invest between $16.5 billion and $17 billion this year with a decline in capital spending as a percentage of the full year’s total revenues. The company said it still expects 4% top-line growth and that its adjusted consolidated EBITDA margin will expand this year. Verizon expects positive contributions from wireline and wireless.