Verizon released its second quarter earnings report before opening bell this morning, posting earnings of $1.04 per share, both GAAP and non-GAAP, compared to last year’s GAAP earnings of $1.01 per share and non-GAAP earnings of 91 cents per share. Revenue was $32.2 billion, a 2.4% increase year over year. Analysts had been expecting earnings of $1.01 per share on $32.45 billion in revenue.
Key metrics from Verizon’s earnings report
Verizon reported 1.1 million net retail postpaid adds during the quarter and a postpaid churn rate of 0.9%, which was the lowest percentage in three years. In all, the mobile carrier had 109.5 million retail connections and 103.7 million total retail postpaid subscribers.
Total wireless revenues increased 5.3% from last year to $22.6 billion. Wireless service revenues were $17.7 billion and equipment revenues rose to $3.9 billion as customers used the installment pricing to buy new devices. Approximately 7.2% of the retail postpaid base upgraded to a new device during the quarter. Over the last year, the number of smartphones in the carrier’s customer base has climbed 40% to 61.6 million.
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The wireline business recorded a 10% increase in FiOS revenues with 72,000 FiOS internet adds and 26,000 FiOS video ads. Consumer wireline revenues increased 4.5% year over year. FiOS internet penetration among Verizon’s subscriber base was 41.4% as of the end of the second quarter. The company noted better than expected demand for the new custom TV packages. Also 64% of consumer FiOS subscribers were signed up for FiOS Quantum, which offers speeds of 50 to 500 megabits per second.
Consumer wireline revenues rose 4.5% year over year to $4 billion. FiOS revenues were $3.4 billion, a 10% increase.
Verizon trims revenue guidance
Verizon management said they expect the third quarter growth rate for consolidated revenue to be greater than it was in the second quarter. For the full year, Verizon management expects to see at least a 3% increase in consolidated revenue. Their previously provided guidance was a 4% growth rate for consolidated revenue.
As of this writing, shares of Verizon were down 1.7% at $47.30 per share in premarket trades.