Verizon Earns $5.2 Billion as iPhone Activations Remain Strong

By Craig Galbraith Comments
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Verizon's wireless business keeps rolling along, leading to a second-quarter profit of $5.2 billion, a 21 percent increase from the year-ago quarter.

The New York City-based operator's earnings rose from 64 cents per share in Q2 2012 to 78 cents in Q2 2013 – a 21 percent gain. It was 73 cents per share if you exclude a one-time benefit that resulted from a recalculation of its pension plan.

Revenue was up a little more than 4 percent, to nearly $30 billion. That's approximately what most analysts were predicting. Revenue for the wireless side of the business was $20 billion, up 7.5 percent.

Verizon reported 7.5 million new smartphone activations, with a little more than half of those being iPhones – not bad considering it's been nearly 10 months since Apple released the latest version of its iconic device. iPhone activations were up more than 40 percent compared to the year-ago quarter. More than one quarter of the smartphone activations were for new customers.

Overall, Verizon added 1 million subscribers last quarter, with the lion's share signing long-term contracts. The carrier added about 300,000 new subs for its FiOS Internet and TV services.

Verizon Wireless is jointly owned by Verizon and Vodafone.

Follow senior online managing editor @Craig_Galbraith on Twitter.

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