Verizon Communications Inc. on Tuesday reported a second-quarter profit that beat analysts’ expectations, but the company announced revenues that were lower than expected.
The New York-based telecom giant reported EPS (earnings per share) of $1.04, or net income of $4.35 billion, on consolidated revenues of $32.2 billion. Analysts polled by Thomson Reuters had forecast EPS of $1.01 and revenues of approximately $32.5 billion, national media reported.
Revenues in the global enterprise business fell 6.4 percent to $3.2 billion, while the global wholesale business contracted 4.5 percent to $1.5 billion. During the first six months of the year, global enterprise revenues have fallen 6.2 percent to $6.5 billion.
Verizon continued to grow its wireless business. Wireless revenues rose 5.3 percent over the same period a year ago to $22.6 billion, as Verizon added 1.1 million retail postpaid customers to end the month of June with 109.5 million retail connections. The gains weren’t as impressive as the second quarter of 2014, when Verizon wooed 1.4 million retail postpaid subscribers.
Last month, the company completed its $4.4 billion acquisition of AOL Inc. AOL is crucial to Verizon’s strategy to deliver so-called OTT (over the top) mobile video services to its smartphone base of predominantly 4G customers. While about three-quarters of Verizon’s retail postpaid connection base uses 4G devices, the company still serves 16 million basic phone customers and 9 million 3G smartphone subscribers.
In the wireline consumer business, revenues rose 4.5 percent to $4 billion, thanks largely to Verizon’s FIOS voice, Internet and video services. As of June 30, Verizon FIOS served nearly 5.8 million video subscribers, 6.8 million Internet customers and 4.7 million residential voice subscribers.