In a mobile market that’s supposed to be saturated, Verizon Wireless doesn’t seem to have any trouble finding new subscribers. Verizon wound up with 941,000 more mobile customers at the end of the second quarter than it started out with, improving on the 720,000 net additions it announced in the first quarter.
For Verizon as a whole, second quarter revenues increased 4.3 percent year over year by to $29.8 billion, and its quarterly profits jumped 21 percent to $5.2 billion. Verizon saw growth in both its wireless and wireline divisions, but as expected, the biggest gains were in the mobile group.
Wireless revenues totaled $20 billion, up 7.5 percent from a year ago. Verizon’s average revenue per account (because of shared data and family plans Verizon now tracks revenues by the the service plan, not the subscriber) came in at $152.50, up 6.4 percent. It’s becoming very apparent that families and people with multiple-connected devices are important to the company: Verizon has a total of only 35 million accounts, so it’s averaging 2.7 devices per account. Consequently Verizon is seeing big growth in the shared data plans it launched last year. More than a third of its accounts are now on the company’s Share Everything plans.
Verizon continued to shift large portions of its customer base to its new LTE network, which is now effectively complete covering 500 markets and 95 percent of the U.S. population. Verizon activated 10.1 million devices, 7.5 million of which were smartphones. Of those smartphones, just over half of them, 3.8 million, were Apple iPhones. Those iPhones (at least the latest generation ones) helped drive 6.4 million LTE device activations. One third of its roughly 94.3 million retail contract subscribers now have an LTE device, up from 12 percent a year ago, and 59 percent of all data traffic runs over the new 4G network.
Verizon’s residential broadband group also added 161,000 new FiOS internet customers and 140,000 new FiOS video customers, helping offset 116,000 DSL subscriber losses. Verizon now has 5.8 million total FiOS internet and 5 million FiOS video subscribers. Revenues for the wireline division were up 4.7 percent to $3.6 billion.
We are updating this post as we learn more information on Verizon’s earnings call.