Verizon grows wireless revenue

US operator Verizon has announced an 8.4 per cent year on year increase in service revenues to its wireless business for 3Q13, generating $17.5bn for the quarter and a 33.8 per cent operating income margin. Total revenues for the firm were $20.4bn in third-quarter 2013, up 7.2 per cent year on year.

The operator said its wireless unit added 1.1 million net retail connections during the quarter, including 927,000 net retail postpaid connections. It also reported a low retail postpaid churn of 0.97 per cent; of the 101.2 million total retail connections it has, 95.2 million are retail postpaid connections.

Average revenue per account (ARPA) increased by 7.1 per cent over the quarter to $155.74 per month. The firm added that it is on track to deliver 49 to 50 per cent segment EBITDA margin on wireless service revenues for the full year.

The firm added that its LTE service now available to more than 303 million people in more than 500 markets across the United States.

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At the end of the 3Q13, smartphones accounted for more than 67 per cent of the Verizon Wireless retail postpaid customer phone base, up from 64 per cent at the end of 2Q13.

“These strong third-quarter results reflect Verizon’s long-term investment in reliable, high-quality networks to deliver value to customers,” said Lowell McAdam, Verizon chairman and CEO.

“Our unwavering focus on wireless, fibre optic services (FiOS) and strategic enterprise services has produced consistent performance, and we’ve delivered double-digit earnings growth in six of the past seven quarters. Verizon’s strategic networks form a powerful distribution platform for future growth and innovation.”