Verizon reported its second quarter earnings on 24 July, with revenues rising 5.4% to $32.2bn.
However, operating costs increased 13.5% to $25.6bn, which pushed earnings per share down 6.5% to $1.00. The decline would have been more steep were it not for a reduced tax bill. Operating profit, which is measured before interest and tax, fell 17.4% $6.6bn.
The shares fell 1.2% on the day of the announcement.
Half Year Results
In Wireless, the number of contract mobile customers grew 2.3% to 111.6m year-on-year, driven by wearable tech. This more than offset a 11.3% fall in pay as you go customers - which dropped to 4.8m.
Service revenues rose 0.8% to $15.8bn, and would have grown 2.5% were it not for accounting changes. 17.4% growth in equipment sales, plus a 21.2% increase in other revenue, meant the division as a whole saw revenues jump 5.5% to $22.4bn. With operating costs up just 2.2%, operating profits rose 11.7% to $8.3bn.
Retail contract churn increased slightly to 0.97, although remained lower at 0.75 for phones alone.
Wireline reported an operating loss of $19m in the quarter, compared to a $47m profit a year earlier. That reflects a 3.4% decline in divisional revenues.
Within the division, Verizon added a net 70,000 Fios customers.
Looking ahead, Verizon expects low-to-mid single-digit percentage growth in revenues for the full year, with earnings per share growth in the low single-digits. Capital spending for 2018 will be closer to the lower end of the previously announced $17.0bn to $17.8bn range, including the commercial launch of 5G.
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