Verizon announces $1.83B Q2 profits, rising revenues due to smartphones and FiOS

Verizon Wireless posted encouraging second quarter numbers, bolstered by increased revenue from smartphone sales and the shift from copper to fiber optics’ FiOS for wireline and Internet customers. The No. 1 U.S. mobile carrier announced Thursday a $1.83 billion quarterly profit on $28.552 billion in revenue.

The company, a joint effort with Vodafone Group, announced wireless revenue rose 7.3 percent to $15.8 billion, compared to a year ago. Meanwhile, wireline second-quarter revenue fell 3.1 percent to $9.9 billion. Smartphones now comprise 50 percent of Verizon’s wireless sales, up from 47 percent in the first quarter of 2012. Revenue from data plans now represents 43.6 percent of the carrier’s income. Data now brings in $6.9 billion, an 18.5 percent jump compared to the same period last year.

During the second quarter, Verizon Wireless added 888,000 net post-paid mobile subscribers, helping the company reach 94.2 million wireless customers, a 4.9 percent increase over the 88.8 million postpaid mobile customers reported during the same time in 2011. Under 1 percent of Verizon Wireless customers are jumping ship to other carriers, witnessed by the 0.84 percent “churn” rate.

The picture wasn’t so bright on the wireline side of Verizon’s business. While wireline subscriptions fell 3.1 percent in the second quarter, the more profitable FiOS service, which includes phone, internet and television, grew. FiOS sales now comprise 65 percent of the $9.9 billion in second-quarter revenue reported today. Verizon’s margin on wireline sales is slowly increasing from the 1.6 percent announced earlier this year. FiOS can be thanked there, too. While overall, a wireline customer brings in $100, an average FiOS subscriber provides more than $149, Verizon said. The company reports 5.1 million FiOS Internet customers and 4.5 million FiOS Video subscribers. Around 70 percent of FiOS customers opt for the phone, internet and video bundle, Verizon announced.

After rising more than 14 percent Wednesday, Verizon stock fell 1.5 percent to $45.22 before the markets opened in New York.