Strong wireless subscriber additions boost Verizon


Credit: Reuters/Sean Gardner


A Verizon logo is seen during the International CTIA WIRELESS Conference & Exposition in New Orleans, Louisiana May 9, 2012.


However, the company's net profit fell 16.8 percent as interest expenses rose.


Verizon's shares fell about 1 percent to $50.08 before the bell.


The company's postpaid wireless subscriber net additions surged 53 percent to 1.4 million in the second quarter ended June 30.


Operating revenue rose 5.7 percent to $31.48 billion.


However, net income fell to $4.3 billion, or $1.01 per share, in the quarter from $5.2 billion, or 78 cents per share, a year earlier.


Excluding items, the company earned 91 cents per share.


Analysts on average had expected a profit of 90 cents per share on revenue of $31.12 billion, according to Thomson Reuters I/B/E/S.


Verizon's wireless revenue, which accounts for more than two-third of its total revenue, rose 7.5 percent due to strong growth in service revenue.


Average monthly revenue per account rose 4.7 percent to $159.73.


Verizon's shares closed at $50.70 on Monday on the New York Stock Exchange. The stock has risen 3 percent this year to Monday's close.


(Reporting by Soham Chatterjee in Bangalore; Editing by Kirti Pandey)


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