Verizon Earnings Grew Along With Shared PlansBy: Sean Patterson - October 18, 2012
Verizon Wireless this week announced its third-quarter 2012 results, revealing that the company continues to grow earnings. The company stated that it is on-track to meet its 2012 financial objectives.
“In the third quarter, Verizon continued to deliver double-digit earnings growth and strong cash generation, and we remain solidly on track to meet our financial objectives for the year,” said Lowell McAdam, chairman and CEO of Verizon. “With our 4G LTE network advantage, well-received Share Everything Plans and unmatched product portfolio, Verizon Wireless continues to do an outstanding job of balancing growth and profitability. Wireless achieved record profitability in a quarter in which we reported the highest number of retail postpaid gross and net adds in four years.”
Verizon earlier this year rolled out its Share Everything Plans, which allow families to pool data, but require a monthly fee for each device that can access the data. The plans could conceivably save money for large families who don’t use much data, but are more expensive for individual users.
The new plans and its FiOS service have propelled Verizon to a third consecutive quarter of double-digit earnings growth. The company’s wireless service revenues totaled $16.2 billion, up 7.5 percent from the third quarter of 2011. Overall, the company saw 56 cents in diluted earnings per share (eps) – a 14.3% increase over the third quarter of 2011.
“Based on the strength of our FiOS fiber-optic network, we reported the highest growth in U.S. consumer wireline revenues in 10 years,” saidMcAdam. “Additionally, strategic services growth in our Enterprise business helped offset weaker revenues caused by global economic challenges. We are confident that we have the right plans in place to meet these challenges while improving the long-term profitability in both Consumer and Enterprise.”