Verizon’s earnings were not good enough
Verizon Communications Inc. (NYSE: VZ) reported second-quarter 2015 results before markets opened on Tuesday. The telecom giant reported quarterly EPS of $1.04 on revenues of $32.22 bln up from $0.91 on revenues of $31.48 bln a year ago. Wireless added 1.1 mln net retail connections in the second quarter, of which all were postpaid (contract) subscribers. At the end of the quarter, Wireless claimed 35.56 mln retail accounts and 109.5 mln retail connections. Average revenue per (postpaid) account (ARPA) fell 3.8% y-o-y to $153.73 a month. Verizon claimed 6.82 mln Internet connections and 5.77 mln video connections to its FiOS fiber network at the end of June, up 8.1% and 6.4%, respectively. The situation is less upbeat when we look at net additions in the wireline business. Verizon added 26,000 net video subscribers in the quarter and 72,000 net Internet subscribers, down 74% and 48.2%, compared with 2Q 2014. These numbers will weigh on shares.