Earlier today, the largest wireless carrier in the country launched its earnings for the second quarter and the first half of 2019. During the three months from April to late June, the carrier reported 420,000 net additions of postpaid smartphones. Although this followed the 710,000 net smartphone additions reported by T-Mobile over the same period, it exceeded the 72,000 net additions that AT&T had for the category over the same time period. Verizon also claimed to have net telephone additions of 245,000 over the period, 23% more than in the second quarter of 2018, so it was a strong quarter for Big Red’s wireless business. Verizon’s wireless revenue increased 1% year on year to $22.7 billion with service revenues of up to 3.1% per year. The wireless service provider recorded the lowest postpaid phone turnover in the sector with 0.76%, while post-paid retail sales reached 1.02%.
If we stick to the final consumer of the company, the net additions of postpaid smartphones have reached 209,000, with an increase of 17% compared to the same quarter last year. Verizon also had net post-paid telephone charges of 73,000 on the consumer side and a net tablet loss of 134,000. He added 187,000 other devices connected in the period, mostly wearable. Postpaid retail phone sales were an impressive 0.72% in the quarter.
“Verizon finished strong in the first half of 2019 by delivering solid financial results while transforming the business under the new operating structure and advancing our leadership in 5G. Verizon made history this quarter by becoming the first carrier in the world to launch 5G mobility. We are focused on optimizing our next-generation networks and enhancing the customer experience while we head into the second half of the year with great momentum.” – Hans Vestberg, chairman and CEO, Verizon
Verizon subscribers switched to more expensive plans during the second quarter and added new lines to existing plans (most likely due to telephone promotions requiring existing customers to add a new line). This helped increase wireless consumer revenue by 2.5% during the period. Equipment sales (read phones) were lower. And the company has also spent a lot of money, about $8 billion, on capital expenditures during the first half of the year, mainly to help build and launch its 5G Ultra-Wideband network. He also spent on increasing the capacity of his 4G LTE network due to an increase in the amount of data and video traffic carried in the pipeline.
Verizon Will Have Its 5G Ultra-Wideband Service In 30 Cities By The End Of This Year
Overall, Verizon’s operations, including its cable operations, reported revenues of $32.07 billion in the quarter. This was 4% less from year to year. Net income decreased 4.1% to $4.07 billion or 0.95 cents per share, below the $1.00 per share declared by Verizon in the second quarter of last year. For the first half of 2019, revenues increased by 1.4% to $55.55 billion and net profits increased by 3.6% to $ 9.23 billion. Earnings per share during the first six months of this year increased by 3.3% from $2.10 to $2.17.
Investors felt that the results were more positive than negative. While the NYSE shares closed the 1 cent at $55.26, the entire market was ruined today, so Verizon’s performance was indeed bullish.
By the end of the year, the company’s 5G Ultra-Wideband network will be operating in 30 cities and the company currently offers three phones connected to the 5W mmW carrier spectrum. There’s the Samsung Galaxy S10 5G, the LG V50 ThinQ 5G, and the Motorola Moto Z4. The latter becomes a 5G phone once the Moto Mod 5G accessory is connected to the back of the phone.
- All Significant US Carriers May Offer BOGO Deals on Galaxy Note 10, pre-order May Start on August 7 and VIP pre-orders Incorporate a Limited-Edition Package
- Samsung’s Galaxy Note 10 will Reportedly Incorporate Ultra-Fast Wired and Wireless Charging
- A New Research Report On 2019 iPhones Includes One Unexpected Capability
Follow us on Twitter to never miss an update on all the latest news from Apple, Google, Microsoft, and the Web.