Verizon beats by $0.04, reports revs in-line; sees FY15 revs growth of at least 3%
- Reports Q2 (Jun) earnings of $1.04 per share, $0.04 better than the Capital IQ Consensus of $1.00; revenues rose 2.4% year/year to $32.22 bln vs the $32.47 bln consensus.
- Co issues in-line guidance for FY15, sees FY15 revs growth of at least 3% (to $130.9 bln vs. $131.34 bln Capital IQ Consensus).
- Verizon expects a higher year-over-year growth rate in Q3 than in Q2 (consensus +4.3%). These growth estimates exclude revenue from AOL.
- Wireless:
- 1.1 million net retail postpaid connections added in the quarter; retail postpaid churn of 0.90 percent, the lowest in three years; 109.5 million total retail connections; 103.7 million total retail postpaid connections.
- 5.3 percent year-over-year increase in total revenues; 34.0 percent operating income margin.
- 56.1 percent segment EBITDA margin on service revenues (non-GAAP), and 43.9 percent segment EBITDA margin on total revenues (non-GAAP).
--> Verizon on Q2 earnings call
- Looking ahead VZ believes that the percentage of phone activation on installment will continue to increase and will likely be around 60% in the third quarter.
- Retail postpaid net additions of more than 1.1 mln were more than twice a net additions in the first quarter.
- Tablet net adds totaled 852K in the quarter and net prepay devices declined by 126K.
- Total postpaid device activations totaled 11.3 mln in the quarter up nearly 2.0%.
- Ended the quarter with 70.1 mln smartphones in total and smartphone penetration increased to ~81% of total phones.
- FiOS represents 79% of cons. revenues, helped by prize fight in early May -- high rate of growth
- FiOS video subs 5.8 mln -- 37.5% penetration