Reuters

(Reuters)

Verizon 2Q Profit Meets Street, Wireless Customer Additions Beat

By Features FOXBusiness

Verizon Communications (VZ) revealed a 19% jump in second-quarter profit as consumer appetite for data on smartphones continued to increase and consumer wireline revenues grew by the highest percentage in several years.

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In the same quarter that its Verizon Wireless joint venture with Vodafone (VOD) introduced shared data plans, Verizon revealed a 7.3% year-over-year increase in the No. 1 carrier’s service revenues to $15.8 billion and an 18.5% jump in data revenues to $6.9 billion.

Verizon Wireless added 1.2 million retail net customers during the second quarter, including 888,000 retail postpaid customers, boosting total retail customers by 4.9% to 94.2 million. The increase in postpaid customers bested analyst predictions of 666,000 additions.

With expenses only modestly rising during the period, wireless operating margin climbed to a record high of 30.8%. The wireless company rolled out the shared data plans in June in an effort to transform the way customers share and pay for data.

The New York-based provider of wireless, phone and cable services under the FiOS brand reported net income of $4.29 million, or 64 cents a share, compared with a year-earlier $3.6 million, or 57 cents. The results matched average analyst estimates in a Thomson Reuters poll.

Revenue for the three months ended June 30 climbed 3.7% to $28.6 billion from $27.5 billion a year ago, topping the Street’s view of $28.55 billion.  

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“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 CEO Lowell McAdam said in a statement.

Despite the upbeat earnings, shares of Verizon were down about 1.5% premarket.

While wireline consumer revenues were up 2.5%, second-quarter operating revenues in the segment fell 3.1% to $9.9 billion. Wireline operating margin decreased year-over-year to 1.9% from 3.1% a year ago.