Verizon Drops Despite Wireless Profits
NEW YORK (TheStreet) - Verizon
The New York-based telecom's shares were dropping 2.1% to $49.66 in mid-day trading.
Verizon posted a 16% increase in net income to $5.2 billion on nearly $30 billion in revenue as the company attracted nearly one million new wireless subscribers. Beating analyst estimates, Verizon reported earnings of 78 cents per share compared to 64 cents per share for the same period a year ago, and one penny better than estimates.
According to the latest numbers, Verizon's wireless revenues grew 8.3% in 2Q/'13. Wireless profits increased 14% in the same period due to the addition of 941,000 new postpaid subscribers. That's a 6.6% increase in subscribers over last year's figures.
The company added a number of new handsets to their offerings in the quarter including Nokia's
But questions remain about the high cost of upgrading Verizon's landline network to current and future standards. The company has been aiming to replace its older, high-maintenance copper wires with higher capacity fiber optic cables. Verizon says it's more than halfway toward reaching its goal of upgrading more than 300,000 connections nationwide by the end of 2013.
FiOS sales increased 14.7% over a year ago, which translates into 161,000 new FiOS internet subscribers and 141,000 additional FiOS video customers bringing total FiOS subscriber numbers to 5.8 million and 5.0 million respectively, increases of 12.2% and 12.6% respectively.
More than one third of those internet customers subscribe to FiOS Quantum Verizon's Web service offering various levels of higher-speed (ranging from 50-to-300 megabits per second) Web connections