TMCnet News
Verizon Q2 Profit Surges, Tops Estimates(dpa-AFX International Compact Via Acquire Media NewsEdge) NEW YORK CITY (dpa-AFX) - Telecom giant Verizon Communications Inc. (VZ) Tuesday reported a sharp increase in second-quarter profit, as revenues grew about 6 percent, helped by growth in wireless revenue. Adjusted earnings as well as revenues topped analysts' expectations. For the quarter, net income attributable to the company surged to $4.21 billion or $1.01 per share from $2.25 billion or $0.78 per share in the previous year. However, quarterly net income dropped 16.8 percent year-over-year to $4.32 billion from $5.2 billion in the same quarter last year on higher tax provision. Excluding non-operational gains, Verizon posted adjusted earnings of $0.91 per share for the recent quarter, while it was $0.73 per share last year. On average, 27 analysts polled by Thomson Reuters expected earnings per share of $0.90 for the quarter. Analysts' estimates typically exclude one-time items. Operating revenues for the quarter grew 5.7 percent to $31.48 billion from $29.79 billion a year go, and came above 23 analysts' revenue estimate of $31.12 billion. In Verizon Wireless, total revenues were $21.5 billion, up 7.5 percent from a year ago. Retail postpaid average revenue per account or ARPA, increased 4.7 percent to $159.73 per month. Verizon Wireless added 1.4 million retail net connections in the quarter, all of which were postpaid. In the Wireline business, total revenues edged up 0.3 percent to $9.8 billion. Consumer revenues rose 5.3 percent, with FiOS revenues representing 75 percent of the total. Consumer Average Revenue Per User or ARPU for wireline services climbed 11 percent to $122.57. In the recent quarter, Verizon added 139,000 net new FiOS Internet connections and 100,000 net new FiOS Video connections. For full-year 2014, the company continues to target consolidated top-line growth of 4 percent and adjusted consolidated EBITDA margin expansion, with positive contributions to profitable growth from both wireless and wireline. Chairman and CEO Lowell McAdam said, "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." VZ closed Monday's trading at $50.70 on the NYSE. In the pre-market activity on Tuesday, the shares rose 0.39 percent. Copyright RTT News/dpa-AFX |