Shares in Verizon rose 7.7% after second quarter results were released. The group beat market forecasts to deliver revenues of $30.5bn, level with the prior year.
Excluding exceptional items, second quarter earnings per share were $0.96, up from $0.94 in Q2 2016.
The wireless division saw a net increase of 614,000 retail postpaid connections in the quarter, following the launch of the Verizon Unlimited service in mid-February. Smartphone additions of 590,000 compares with 336,000 last year. Total postpaid customers increased to 109.1m, with churn of 0.94% steady year-on-year.
However, higher customer numbers have not translated into higher revenues. Revenue dipped 1.9% to $21.3bn, with operating income of $7.4bn down from $8bn last year.
In the wireline division, reported revenue rose 1.2% to $7.8bn. On a comparable basis, which means excluding revenues from newly the acquired XO Communications and divested data centres, revenue declined 2.8%. Operating income was $68m, compared with a loss of $524m last year, which was impacted by a work stoppage.
Looking ahead, the group expects full year organic revenues, and earnings per share to be broadly consistent with 2016 levels. Capital expenditure for 2017 to be in the range of $16.8bn to $17.5 bn.
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