Verizon Quarterly Earnings: New Wireless Subscribers Choose Smartphones

Verizon Communications Inc. on Tuesday disclosed that roughly 75 percent of its new wireless subscribers purchased smartphones in the fourth quarter.  

At the end of the year, 26 percent of the companys retail postpaid customers had smartphones. Thats up from 15 percent at the end of 2009.

The company said Verizon Wireless the joint venture between Verizon Communications and Vodafone PLC added 872,000 retail postpaid subscribers in the most recent quarter.  

Verizon Wireless ended the quarter with 94.1 million customers, including 87.5 million retail subscribers. 

For the year, Verizon Wireless service revenues rose 6.9 percent to $55.6 billion as data services continued to drive growth. In the fourth quarter, retail data revenues rose 22.8 percent to $5 billion.

Verizon Wireless produced another quarter of impressive growth with record-high profitability, as we continue to drive higher smartphone adoption and data use,” Verizon Chairman and CEO Ivan Seidenberg said.

Net income attributable to Verizon Communications was $2.64 billion, up from $617 million a year earlier. The financial press reported that Verizons adjusted earnings per share of 54 cents missed Wall Streets expectations by a penny.

Revenues at Verizon declined 2.6 percent to $26.4 billion, although the company said last years results included revenues from operations that have been divested. 

The company reported that revenues in its wireless business dipped 2.8 percent to $10.3 billion.

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