VZW Revenue Up; Smartphones 50% Market Penetration; More Androids Sold than iPhones

[dgstorm]

Verizon Wireless released their earnings report for Q2, and things are very rosy for Big Red. Their revenues continued to grow and they finally broke the 50% market penetration barrier with smartphones. That basically means that 50% of all cellular devices sold by Verizon during the last quarter were smartphones. They also shared the numbers for the two big smartphone manufacturers, and Andy came out on top. There were 2.9 million Android devices sold vs. 2.7 Million iPhones sold.

Here's a quote from their press release with some self-congratulatory back-patting:

On Track for 'Solid Double-Digit Earnings Growth' in 2012

"Verizon delivered another strong quarter of earnings growth and cash generation, and we remain on track to meet our financial objectives and produce solid double-digit earnings growth for the year," said Lowell McAdam, Verizon chairman and CEO. "Verizon Wireless has once again demonstrated its industry leadership, combining strong revenue growth with record margins and high customer loyalty. We reported sequential improvement in second-quarter Wireline margins, and we expect to see that improving trend carry through the second half of the year. We also look forward to the closing of strategic transactions and to the integration of process improvements that will set the stage for continued long-term profitable growth across all our business units."

Consolidated Results: Strong Gains in Cash Flow

In second-quarter 2012, Verizon's total operating revenues were $28.6 billion on a consolidated basis, an increase of 3.7 percent compared with second-quarter 2011.

Consolidated operating income was $5.7 billion in second-quarter 2012, compared with $4.9 billion in second-quarter 2011. Consolidated EBITDA (non-GAAP, earnings before interest, taxes, depreciation and amortization) totaled $9.8 billion in second-quarter 2012, compared with $9.0 billion in second-quarter 2011.

Cash flow from operating activities totaled $15.3 billion in first-half 2012, compared with $12.8 billion in first-half 2011. In second-quarter 2012 alone, cash flow from operating activities totaled $9.3 billion, a 20.1 percent increase compared with second-quarter 2011.

With capital expenditures of $7.4 billion in first-half 2012, free cash flow (non-GAAP, cash flow from operations less capex) was $7.8 billion in first-half 2012, compared with $3.9 billion in first-half 2011.

For full-year 2012, capital expenditures are expected to be flat to down compared with 2011 capital expenditures of $16.2 billion.

Verizon Wireless Results: Record Profitability, Strong Operational Metrics

In second-quarter 2012, Verizon Wireless delivered strong growth in revenues and retail customers; an increase in smartphone penetration; record-high retail postpaid ARPU; and the highest segment EBITDA margin on service revenues (non-GAAP) in the company's history.

Source: Verizon

 

[cobravnm13]

Of course their revenue went up. They're charging people out the butt for more than they should.

Sent from my 3rd reincarnation of the ever-so-lovable Droid

 

[johnomaz]

Of course more Android were sold than iPhone. VZW is pushing LTE big time. I went in the local VZW store to end my account and in that 30 minutes or so, they sold about 6 people on the S3. Thats good as far as I care, the iPhone can die along with Apple, but their big thing was LTE that I overheard. Being on AT&T now using their HSPA network, its pretty damn fast. LTE in Modesto, CA was pretty bad. 10megs down and maybe 1.5 or so up. In HSPA, i'm at 10 down and 2 up.

 

[mountainbikermark]

I like their reword for "locked into contracts" being "customer loyalty"
Yeah the start of the second quarter was when they started the $30 activation fee for existing customers,aka pure net profit, so of course their bottom line went up.
Of course Android sales went up as well. There is 1 outdated Apple phone and the rest are Androids.
Nothing new under the sun

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