Verizon announced earnings results on July 16th, they reported EPS of 64 cents, a 12.3% increase year over year, which met analysts’ expectations. They posted record highs in operating income margin at 30.8% and EBITDA margin of 49%. The wireless segment increased revenues 7.3% year over year, added 1.2 million retail customers; 888,000 of which were postpaid customers. The wireline segment saw increases of 2.5 percent in revenues, with 65% of revenues generated by Verizon FiOS. Verizon had a 3 percent increase in smartphone users, bringing in 50% of their postpaid revenues from smartphone customers. Verizon released its Share Everything plan on June 28th, offering customers unlimited calling, texting, and shareable data, increasing the amount of devices allowed from 5 to 10. The new plans offer cheaper pricing for customers with more devices, however slightly higher pricing for feature phone customers. They also had the release of the Samsung Galaxy S III which has been a top selling smartphone thus far, which will benefit Verizon’s margins if more customers choose to use that over the iPhone. Looking forward Verizon remains the leading competitor in the 4G LTE market, they have enabled customers to add multiple data devices such as tablets and broadband cards for very affordable rates, and their FiOS services continue to grow and penetrate into new markets. These key points will allow them to grow their business and continue to remain the market leader in mobile telecommunications.
-Ryan Ranado
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