Verizon Posts Strong Third Quarter Results
T-Mobile decided to rewrite the wireless carrier business model earlier this year with its Un-Carrier plan. At the time, Verizon customers asked the nation’s largest carrier to follow suit. It didn’t, and its latest financial results show that it doesn’t have to either.
Verizon announced today that it had a strong third quarter this year with total operating revenue coming in at $30.3 billion, a 4.4 percent increase compared to Q3 2012. It also posted an operating income of $7.1 billion, a 30 percent increase over Q3 2012. It also added 1.1 million subscribers this past quarter, with 927,000 of those subscribers being postpaid. Overall, Verizon now has 101.2 million subscribers, a 5 percent increase year-over-year.
“These strong third-quarter results reflect Verizon’s long-term investment in reliable, high-quality networks to deliver value to customers,” said Lowell McAdam, Verizon chairman and CEO.” Our unwavering focus on wireless, FiOS and strategic enterprise services has produced consistent performance, and we’ve delivered double-digit earnings growth in six of the past seven quarters. Verizon’s strategic networks form a powerful distribution platform for future growth and innovation.”
Verizon notes that smartphones accounted for 67 percent of all devices on its network last quarter. This is up from 64 percent in Q3 2012. Furthermore, it has managed to migrate 42 percent of its postpaid customers to its Share Everything plan.
As for Verizon’s 4G LTE rollout, the company says that 4G LTE services are now available to 99 percent of its 3G footprint. In other words, its 4G LTE coverage now covers 97 percent of the U.S. population and is available in more than 500 markets.
Aside from its successful wireless service, Verizon also posted growth in its wireless FiOS service. It gained 173,000 FiOS Net and 135,000 FiOS Video subscribers in the last quarter leading to a total of 5.9 million FiOS Net subscribers and 5.2 million FiOS Video subscribers. It also added 56,000 regular broadband customers in the last quarter as well. This led to revenues of $3.7 billion, or a 4.3 percent year-over-year increase.
On the news, Verizon’s share price has risen by a little over 3 percent. It’s now trading at $48.78 per share.[Image: Verizon Wireless/YouTube]