Verizon Rides The Wireless Wave To Sixth Consecutive Quarter Of Double Digit Earnings Growth
Verizon Communications said it added 1.4 million net retail connections in the second quarter of 2014 to bring its total wireless subscriber base to 104.6 million. Equally impressive is the company's low churn rate of just 1.2 percent, meaning that the vast majority of wireless customers are content with their service, or at least content enough not to jump ship.
This helped Verizon record its highest quarterly revenue growth of the past six quarters, which totaled $31.5 billion, up 5.7 percent compared to the same quarter a year ago. Wireless revenue contributed $21.5 billion to that tally, which itself represents a 7.5 percent year-over-year jump.
"Verizon’s second-quarter results continue to demonstrate our ability to deliver strong customer growth, with equally strong financial performance, in a dynamic and competitive environment. 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," said Lowell McAdam, Chairman and CEO of Verizon.
The nation's No. 1 wireless carrier seems to have found the formula for success. Operating income for the quarter came to $7.7 billion, a 17.2 percent increase compared with the second quarter of 2013, and the sixth consecutive quarter of growth.
Verizon continues to flesh out its FiOS service as well. The company added 139,000 new FiOS Internet connections and 100,000 FiOS Video subscribers representing yearly gains of 9.3 percent and 7.6 percent, respectively. Verizon should be able to maintain that momentum after having just recently bumped its FiOS upstream speeds to match its downstream speeds at each tier.
This helped Verizon record its highest quarterly revenue growth of the past six quarters, which totaled $31.5 billion, up 5.7 percent compared to the same quarter a year ago. Wireless revenue contributed $21.5 billion to that tally, which itself represents a 7.5 percent year-over-year jump.
"Verizon’s second-quarter results continue to demonstrate our ability to deliver strong customer growth, with equally strong financial performance, in a dynamic and competitive environment. 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," said Lowell McAdam, Chairman and CEO of Verizon.
The nation's No. 1 wireless carrier seems to have found the formula for success. Operating income for the quarter came to $7.7 billion, a 17.2 percent increase compared with the second quarter of 2013, and the sixth consecutive quarter of growth.
Verizon continues to flesh out its FiOS service as well. The company added 139,000 new FiOS Internet connections and 100,000 FiOS Video subscribers representing yearly gains of 9.3 percent and 7.6 percent, respectively. Verizon should be able to maintain that momentum after having just recently bumped its FiOS upstream speeds to match its downstream speeds at each tier.
