Strong wireless subscriber additions boost Verizon

Reuters News
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Posted: Jul 22, 2014 6:50 AM

(Reuters) - Verizon Communications Inc, the largest U.S. wireless telecoms company, reported better-than-expected quarterly revenue and profit due to a jump in postpaid wireless subscriber additions.

However, the company's net profit fell 16.8 percent as interest expenses rose.

Verizon's shares fell about 1 percent to $50.08 before the bell.

The company's postpaid wireless subscriber net additions surged 53 percent to 1.4 million in the second quarter ended June 30.

Operating revenue rose 5.7 percent to $31.48 billion.

However, net income fell to $4.3 billion, or $1.01 per share, in the quarter from $5.2 billion, or 78 cents per share, a year earlier.

Excluding items, the company earned 91 cents per share.

Analysts on average had expected a profit of 90 cents per share on revenue of $31.12 billion, according to Thomson Reuters I/B/E/S.

Verizon's wireless revenue, which accounts for more than two-third of its total revenue, rose 7.5 percent due to strong growth in service revenue.

Average monthly revenue per account rose 4.7 percent to $159.73.

Verizon's shares closed at $50.70 on Monday on the New York Stock Exchange. The stock has risen 3 percent this year to Monday's close.

(Reporting by Soham Chatterjee in Bangalore; Editing by Kirti Pandey)