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Verizon Crosses 5M Video Subscribers

FiOS, Wireless Fuel Strong Q2 7/18/2013 7:07 AM Eastern

Verizon Communications’ FiOS TV service crossed 5 million video subscribers, capping a strong second quarter when the telecom giant also added nearly 1 million wireless customers.

Verizon added 160,000 FiOS Internet and 140,000 FiOS TV customers in the second quarter, raising its total high-speed Internet customers to 5.8 million and its video subscribers to 5 million, representing year-over-year gains of 12.2% and 12.6%, respectively.

The gains helped boost FiOS penetration rates – FiOS Internet is now at 38.6%, compared to 36.6% during the same period last year. Video penetration rates rose nearly 2 percentage points, to 34.5% from 32.6% last year.

Revenue at the FiOS units also rose during the period – up 14.7% to $2.7 billion -- compared to $2.4 billion in the second quarter last year.

On the wireless side, Verizon Wireless added 941,000 retail postpaid net connections, out of a total 1 million net retail connections, in the second quarter. These additions exclude acquisitions and adjustments. Verizon expects to continue to see increases in quarterly sequential net additions for retail postpaid connections in the second half of 2013. At the end of the second quarter, the company had 100.1 million retail connections, a 6.3% increase year over year, including 94.3 million retail postpaid connections.

Overall, total operating revenue increased 4.3% to $29.8 billion and earnings before interest, taxes, depreciation and amortization (EBITDA) rose 9.5% to $10.7 billion.

"Verizon’s consistent strategic investments in wireless, FiOS and global networks drove strong financial performance in the first half of 2013," chairman and CEO Lowell McAdam said in a release. "Having posted double-digit earnings growth in five of the last six quarters, we are focused on continuing to provide the best portfolio of products on the most reliable networks; capturing incremental revenue growth in broadband, video and cloud services; and sustaining our earnings and cash-flow momentum."

September