Verizon Communications Inc. (NYSE:VZ), one of the largest mobile communications carriers in the United States, reported a 13 percent surge in earnings for the second quarter of 2012. The company posted $1.84 billion profit, or $0.64 per share during the three months period from April to June. Its earnings result is higher than its $161 billion, or $0.57 per share in 2011.
Based on the analysts’ forecast compiled by FactSet, Verizon’s earnings match their expectations of $0.64 per share. The company’s $28.6 billion revenue rose by 3.7 percent, compared with $27.54 billion sales during the same period last year. Verizon’s current revenue also matched the expectations of analysts.
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For its wireless business, the Verizon recorded service revenues climbed by 7.3 percent to $15.8 billion, 8.3 percent in retail revenues to $15.2 billion, and 18.5 percent in data revenues, to $6.9 billion year over year. The mobile carrier giant added 1.2 million new subscribers, and 888,000 contract-based customers. Verizon has a total of 94.2 million customers, a 4.9 percent increase year over year.
Fifty percent of Verizon’s contract-based subscribers are smartphone users. Its customer base in the smartphone market increased by 47 percent compared with the previous quarter.
The company’s wireline business showed a weaker result, with only 2.5 percent increase in consumer revenues year over year. The majority of its sales were generated from FiOS, with a total of 5.1 million FiOS internet, and 4.5 million FiOS video customers. Verizon’s has a total of 8.8 million broadband subscribers, up by 2.6 percent year over year.
During the second quarter, the company implemented several projects to improve its service and growth demands. Verizon is also building a control plane technology to its network infrastructure, inorder to be able to deliver cloud-based and mobility-enabled industry solutions, and to allow a speedy automated recovery of complex optical mesh networks.
Lowell McAdam, chairman and CEO of Verizon, said based on Verizon’s second quarter performance; the company proved its leadership in the telecommunications industry. He is confident that the company will be able to continue its long-term growth across its business units.
McAdam said, “Verizon delivered another strong quarter of earnings growth and cash generation, and we remain on track to meet our financial objectives, and produce solid double-digit earnings growth for the year. Verizon has once again demonstrated its industry leadership, combining strong revenue growth with record margins and high customer loyalty…We also look forward to the closing of strategic transactions, and to the integration of process improvements that will set the stage for continues long-term profitable growth across all our business units.”