Verizon Communications on Friday (July 22) reported revenue of US$27.5 billion for the second quarter of 2011, up 2.8 percent from the second quarter of 2010, largely driven by mobile subscriber additions.
Net income was US$3.6 billion, up from US$553 million, although the second quarter of 2010 included a one-time charge of US$2.3 billion for a voluntary employee reduction program. Earnings per share was US$0.57 for the past quarter, compared to US$0.51 in the second quarter of 2010, not including the one-time charges. Analysts polled by Thomson Reuters expected earnings of US$0.55.
The company added 2.2 million mobile customers during the quarter, and mobile data revenue grew 22.2 percent from a year ago.
Verizon also announced a change in its top management, with President and COO Lowell McAdam promoted to president and CEO. as of Aug. 1. Current Chairman and CEO Ivan Seidenberg, who had been expected to retire this year, will remain chairman, the company said.
McAdam has been COO for 10 months and was president and CEO of Verizon Wireless before that. McAdam's promotion is "testimony to his extraordinary record of achievement," Seidenberg said in a statement.
Verizon's revenue grew 6.3 percent on a comparable basis from the second quarter of 2010. This was Verizon's strongest revenue growth in 10 quarters, the company said. Last year's results included revenue from operations that have been sold.
Mobile service revenue was US$14.7 billion for the quarter, up 6.6 percent year over year. Mobile data revenue was US$5.8 billion, up by US$1.1 billion from a year earlier.
Verizon had 106.3 million mobile connections at the end of the quarter, including 89.7 million retail customers and 16.6 million wholesale and other connections.
Wireline revenue was US$10.2 billion for the quarter, a decline of 0.3 percent.
Verizon added 189,000 Fios broadband connections and 184,000 Fios TV connections in the second quarter. The company now has 4.5 million Fios broadband and 3.8 million Fios TV customers.
Verizon's broadband customers, including DSL, rose by 62,000 during the quarter, with gains in Fios offsetting losses in DSL customers. Verizon had 8.6 broadband customers at the end of the quarter.
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