Unlimited Data Plans Help Verizon Beat Q2 Expectations

Verizon reported a modest increase in operating revenue and a big jump in profit for the second quarter compared to the same quarter in 2016.

Total operating revenue in the second quarter was $30.5 billion, about the same as the year-ago quarter. Profit was $4.48 billion, up from $831 million a year ago. Second-quarter earnings met analysts’ expectations and beat revenue estimates.

“Verizon reignited its growth engine in the quarter, both adding and retaining wireless customers while scaling our media business and continuing to invest in our superior networks,” said Lowell McAdam, Verizon’s chairman and CEO. “With record customer loyalty and a clean sweep of third-party network quality results, we’re leading the way to provide customers with next-generation broadband, smart cities, telematics, media and Internet of Things (IoT) services.”

Wireless revenue totaled $21.3 billion for the quarter, compared to $21.7 billion for the year-ago quarter. Building on momentum since the launch of Verizon Unlimited in mid-February, the carrier added 633,000 wireless customers, up from 585,000 for the year-ago quarter.

Total wireline revenue increased 1.2 percent, to $7.8 billion, compared to the year-ago quarter. However, excluding revenue from the newly acquired XO Communications and the sale of its data centers, total wireline revenue declined 2.8 percent year over year.

FiOS revenue grew 4.4 percent to $2.9 billion. Verizon added 49,000 FiOS Internet connections and lost 15,000 FiOS video connections. At the end of the quarter, the carrier had 5.7 million FiOS Internet connections and 4.7 million FiOS Video connections, year-over-year increases of 4.4 percent and 0.6 percent, respectively.

Verizon’s IoT revenue, which includes telematics, increased about 20 percent year over year.

This week, Citi analyst Jason Bazinet wrote in a research note that Comcast should buy Verizon in an acquisition that could be worth $215 billion.