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Revenues, ARPA, operating income and customers all increase notably

Verizon has just posted its earnings for the third quarter of 2013, with strong results for both its wireless and wireline businesses. Naturally we're most interested in the Verizon Wireless side of things, and will be focusing on those results. The quarter was strong overall, with revenues, earnings, revenues per account and subscribers all increasing. Here's the breakdown:

  • Revenues of $20.4 billion, up 7.2 percent year-over-year
  • ARPA (avg. revenue per account) of $155.74 per month, up 7.1 percent y-o-y
  • Operating income up 2 percentage points to 33.8 percent
  • 1.1 million net retail connections added
  • Total customers reached 101.2 million

Strong revenues and earnings are great, but Verizon is seeing improvements in all areas of its business. The carrier says that it now has 35 million postpaid accounts, with an average of 2.7 connections per account. Nearly 42 percent of its postpaid accounts are now using Share Everything plans as well. As of Q3 2013, Verizon claims smart phones account for 67 percent of its customer base, up from 64 percent in Q2. Postpaid churn (how many people leave the carrier quarterly) was just 0.97 percent, but up very slightly from last year.

Getting to the network side of things, Verizon says that its LTE network now covers "more than 99 percent" of its 3G network footprint. That means over 500 markets and 97 percent of the U.S. population is covered by its network, according to its own figures. 

Source: Verizon

 
There are 78 comments

cowboys2000 says:

Nearly 42 percent of its postpaid accounts are now using Share Everything plans as well. As of Q3 2013, Verizon claims smart phones account for 67 percent of its customer base, up from 64 percent in Q2. Postpaid churn (how many people leave the carrier quarterly) was just 0.97 percent, but up very slightly from last year.

That pretty much says it all! The switch to Share Everything raise ARPU..

But, with my discounts i'm only paying $5 more than I was with Sprint. So I'm not complaining!

cokeblack says:

That's great man, why don't you pass your discount to the rest of us. I might come back to Verizon then.

evan_adams says:

I just got approved for a 22% discount. I'm in construction. Got it through the builders exchange. Just had to read the fine print.

ctleng76 says:

I don't know about other areas of the country, but Verizon is by far the best in terms of coverage and reception in the St. Louis area. They are a little pricier than the competition, but I guess you get what you pay for.

Mtn_Scott says:

People will pay more for a premium brand. Verizon knows that. They market themselves as one and they charge as one.

deparson says:

Very true!

And, people will pay more for a premium product/service and Verizon delivers that in terms of network quality and coverage.

npco543 says:

That's not universally true. I live in a fairly populated town (fairly well known college, close proximity to several major cities, etc.) and Verizon's coverage is pretty spotty. Needed a network extender just to get a reliable signal in out house... and it's not the house, there was poor coverage outside too.

In my experience with them over the past 4 years, their network is no where near what it's made out to be. Verizon customers sometimes sound like Apple customers - fanatically putting them on a pedestal and exaggerating their product far beyond what it really is.

Add to the *actual* network quality that our rates went up ~$40 a month while the service provided was reduced (unlimited data reduced to 300 meg per month plans) and we finally had enough. We get a good signal on T-Mobile in the house *without* a network extender, get more service (unlimited everything) and pay ~$60 less than Verizon.

If customers keep acting like sheep, Verizon will keep overcharging.

tdizzel says:

Ahh, that's right. You allegedly had a bad experience, so nobody could POSSIBLY have a good experience with Verizon and everyone who thinks that a signal strength of -68dBm(what I have right now) and a download speed of 38 megs(average of what I get) is good service is just a sheep.
Gotcha

drokssilva says:

I get really slow data, with verizon. And their coverage here in Ventura county (SoCal) is OK but it drops to 1x and 3g so much. The LTE is slower than any other carriers. I don't know how you getr great data speeds, cuz I get terrible speed. I think just because you had a GOOD experience doesn't mean everybody will.

Posted inside a time machine 30 years in the future

drokssilva says:

Double post, sorry!

Posted inside a time machine 30 years in the future

Jay Holm says:

Bad consumers! Sending Verizon the message that their doing everything right, when they aren't. People like their wallets being raped?

Posted via Android Central App

codiusprime says:

I've never felt like I was overpaying for my Verizon service and I've never felt like my wallet was being "raped." Obviously they're doing something right.

MetalMike901 says:

Exactly right. Contracts are crap as are shareable, overpriced plans. All I can assume is that most people love being ripped off. #Merica

Earlier this year Verizon was charging me $90+ just for two basic phone lines, no data or text. And that was with a frikken discount to boot! 1000% ripoff. I pay the same amt today for two smartphone lines with unlimited everything for each, nothing shared. Screw these greedy sobs.

Posted via Android Central App on my white Nexus 4 with StraightTalk

codiusprime says:

Man, can you tell me more of my business since you guys obviously have every American figured out?

LegacyEvoAce says:

Curious what trash ERrr...carrier are you on?

deparson says:

He is on StraightTalk :)

MetalMike901 says:

And save a heck of a lot more money for more important things in life. What's the problem with that? Or should I just throw more money away like so many others?

Posted via Android Central App

Razieltov says:

You were obviously not in the right plan since unlimited talk and text in Verizon is 70 dollars a month. Since you lied about the plan you were in our not smart enough to pick the right plan nothing you say can be taken seriously.

Posted via Android Central App

MetalMike901 says:

Well I'm smart enough to pay $100 for two smartphone lines with unlimited everything. Can you beat or match that on vzw? I thought not....

I lied about nothing, and the way I set up my two lines was the only cheapest way vzw would allow at that time. I have no clue what current basic pricing is, and further that isn't even relevant.

Posted via Android Central App

Razieltov says:

Your right vzw can't match that price but they actually get reception. I would rather pay extra for something that works rather than pay less for something that doesn't.

Posted via Android Central App

MetalMike901 says:

Lmao! I get perfect reception on att, full bars nearly everywhere I go. Never once have dropped call and data speeds are great. Talk about an outright lie, well done on that one. You just lost all cred, not that you had much to lose.

I guess you're just jealous that I pay $45 for unlimited everything, that works perfectly fine, and you are paying much more for likely less service and locked to the carrier on contract. I pity you.

Posted via Android Central App

Razieltov says:

Obviously you know nothing about me. I pay $35 for 2000 min, unlimited text and data. No contact. In AT&T. Employee plan sucker. And AT&T doesn't have a public unlimited plan for $45 a month.

Posted via Android Central App

cvgjava says:

I don't have VZW, but, clearly consumers must like the service or VZW wouldn't have the subscriber growth.

codiusprime says:

Obviously every Verizon subscriber is just a sheep, it couldn't be that their services and coverage are a good fit for a lot of people.

MetalMike901 says:

From what I hear over 50% of vzw activations are Iphones, so yeah I would suggest there are a lot of isheep, who like to overpay for their service much like they did for their phone.

I really need to start selling these honest good paying folks premium swampland in Hawaii. I bet I could fetch top dollar for said land if I slap a fruit logo and red check mark onto the area.

Posted via Android Central App on my white Nexus 4 with StraightTalk

codiusprime says:

Claiming that the iPhone is overpriced is a great way to have any rational person immediately stop taking you seriously, FYI.

MetalMike901 says:

Far more than my N4, so what's your point?

And I don't have to claim anything. It's common knowledge that those premium Iphones are worth only about $200, yet they are priced at $600+. Overpriced is a vast understatement actually.

Posted via Android Central App on my white Nexus 4 with StraightTalk

codiusprime says:

My point is that you're an idiot. I was going to attempt to engage you in am intelligent discussion about carriers but you automatically assume that everything that works for you should work for everyone else. Then I wondered why I bother getting on the Internet after the Jr high schools get out.

MetalMike901 says:

No, I just wonder why good people such as yourself would gladly be ripped off. But I think you answered that huh? And I'm the idiot?

By the way boy, I've got a MBA. Now go wiki that and find out what that means.

Posted via Android Central App on my white Nexus 4 with StraightTalk

oooh...an MBA....

Ry says:

Same as Samsung. Same as Motorola. Same as LG. Same as HTC.

codiusprime says:

What, companies sell things for a profit? Well I never.

Yep, you're an idiot.

MetalMike901 says:

When does profit cross the line to blatant ripoff? Maybe you need a little more schooling....before you can engage in anything intelligent.

Now move along sheep and go play elsewhere.

Posted via Android Central App on my white Nexus 4 with StraightTalk

Ry says:

Why are you singling out Apple when all of the other OEMs sell their devices for the same price? The true cost of a device is more than the cost of the parts to build it.

Razieltov says:

Number 1, most people only pay $200 for their iPhone. And how is the iPhone only worth $200. Where do you get your information? Do you think apple could only pay $200 to make an iPhone? On what planet?

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MetalMike901 says:

#clueless. Do some of your own research.

Posted via Android Central App

Razieltov says:

I did. Just the pieces by the seller are $200. Looks like you can't even answer a simple question.

Posted via Android Central App

MetalMike901 says:

What question? There is no relevant question to address. What do you think assembly costs at Chinese slave factories? The phone is cheap to build and manufacture, yet is priced at exorbitant levels, aka ripoff. End of discussion.

Posted via Android Central App

Razieltov says:

I just told you that just the materials cost $200 dollars. Do you know how cost even works? You have to factor in R&D, advertisements, wages for employees, leases on brick and mortar stores, and a profit margin.

Posted via Android Central App

MetalMike901 says:

Right, okay, then smart guy, you throw out a real number on what the phone actually costs, instead of merely quoting and accepting my $200 number. I already knew that remember? Where is any new additional relevant info from you? You are acting Like you have all the answers so start providing them instead of building from what I've already told you.

Posted via Android Central App

Razieltov says:

Actually the $200 comes from ifixit.com. You threw out a random number for no reason. I asked you how you came up with that figure. And you couldn't be bothered to answer.

Posted via Android Central App

Ry says:

Boom.

mike340t says:

Sometimes paying for better service is just worth it.. Period. I know of no other carrier where we are almost guaranteed to have service anywhere and everywhere. (Of course if you never leave your house or town that doesn't matter to you) Definitely, there is no other carrier where we can go hundreds of miles with my daughters Netflix never skipping a frame! BTW, I don't anything Apple...

Ry says:

If Verizon wasn't going things right, they wouldn't be generating the revenue that they're generating. They're a business.

evan_adams says:

Ever since my Sprint coverage went to crap it feels like I'm getting ripped off even if the cheapest. X*0=0.

LegacyEvoAce says:

They got me last month loving it so far.

codiusprime says:

Let the hate flow through you haters....

mike340t says:

Good news tends to always attract a lot of haters...

Amir47 says:

35 million post paid accounts? so it has 65 million pre paid accounts?
nvm. 35m X 2.7= 95m

Hand_O_Death says:

I stay with Verizon because it covers my house and work with fantastic coverage unlike the other three. I also get to keep my unlimited for the time being so I get a good price/value ratio.

Also: How did I KNOW the Jerry wasn't going to write this article?

Synycalwon says:

Same thing here! I also get great coverage (including LTE) pretty much everywhere I travel in the U.S. I'd be shooting myself in the foot to leave and go to someone else.

jlczl says:

Best coverage and super fast LTE on a premium device like the HTC One in blue for $60 per month (unlimited talk text and 2gb data) is a good deal IMO.

Posted via Android Central App

cokeblack says:

How are you paying $60 per month? the 2GB data plan on their site comes out to $100 per month. 60$ + $40 to use it.

MERCDROID says:

More than likely, a legacy plan with a discount.

Posted via Android Central App

jlczl says:

Actually it's a loyalty plan I just got. That being said I only had Verizon service for 12 days when I was put on this plan. Called in, said I felt the service was too expensive for $100 per month and would be cancelling within my 14 day trial. Bam, got offered this plan........I had read about the process on SlickDeals ;-)

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hmmm says:

I guess I would pay for Verizon if their LTE was reliable everywhere I went. I am happy with my Sprint price but the data speeds are horrendous so I guess you get what you pay for. The problem I have with Verizon though is the way they treat their phones. Encrypting bootloaders and throwing your logo on buttons on phons that I am paying for will forever keep me away from them. Once Sprint's LTE is actually rolled out (yeah I know, just like waiting for Wimax that never came) it will be the best carrier but I am guessing at that point something will change with their pricing or data structure and it will be bad.

RexMaximus says:

I was one of those million+ after departing from the trash that is Sprint. It only took 2 months but I finally got my ETF issues finally sorted out last week after Sprint let me out due to no coverage at my new address.

It took a lot of phone calls and stern tones, but that really highlights just how incompetent and disorganized Sprint is.

Posted via Android Central App and Droid Mini

dasny97 says:

Ha you think sprint was tough I'll guarantee if you had that situation with Verizon they wouldn't have let you out without paying a couple hundred bucks per line

Posted via Android Central App

eric3316 says:

I got out of Verizon ETF free because of no service at my house. They sent a tech to survey my area and he confirmed the service was bad. No argument at all, they let me right out of contract.

If people are willing to pay and keep going to Verizon even after they continue to make their plans more expensive and keep offering less, they will just continue to take more and give less. It seems to be working for them.

deparson says:

My total cost for service on Verizon went down a great deal from Sprint. We have 7 devices on a Share plan and, for us, pay less than the same devices on Sprint and about the same as it would cost on T-MOBILE.

That, and we get the Verizon network :)

yankeesusa says:

The more lines you have with Verizon the better the plan. Verizon wants families not single users. That's why they charge over $100 after taxes for 1 line with only 2gb of data.

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RexMaximus says:

No coverage or severe roaming is a contracts "impracticability" issue, and there's probably laws and regs that require carriers to let a customer out of contract in that event, especially if he's sucking up data from a foreign carrier like I had to, on their dime no less.

The only difference between Sprint and Verizon here is that Sprint can't even do fuck-all to finish in 2 months what would easily take under 2 weeks to resolve, because the left hand don't know what the right hand is doing.

Posted via Android Central App and Droid Mini

suavemezie says:

Wait until AT&T releases Thiers, it will dwarf Verizon's for sure.

Posted via Android Central App

codiusprime says:

Do they usually? (I really don't know)

Mtn_Scott says:

Yes. Investors pay more for (P/E) for Verizon shares though.

dplane says:

Cue logo complainers in 1..2..

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UJ95x says:

$155.74 per month per account? Is that per line or for the whole plan?

Per account. I have 2 lines on my family plan & pay about that per month. It is just one "account".

tdizzel says:

but...but...but Verizon is evil and greedy and only rip people off and everybody is leaving them for T-Mobile cuz...cuz...cuz they have slow updates and lock bootloaders and don't have the new Nexus

Ruchelli says:

3..... I hate logos!

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deparson says:

For all the flack that Verizon takes about prices, phone updates, and logos on phones they clearly have the best and highest quality coverage of any carrier in the US.

One note about the ARPA figure. With such a fast migration to Share plans Verizon is seeing people add more and more devices to the same account. i.e. a tablet only costs $10/month extra on the Share plans. This is pushing ARPL lower but ARPA higher. You might argue that is a win for Verizon and for the consumer. They get more revenue in total and the consumer gets access to more devices at a lower cost per device that in the past.

This amazes me. All I've read for the past six months is how people are leaving Verizon. Ummm I guess not.

Posted via Android Central App

evan_adams says:

And this is why VZW need not allow the Nexus on the network.

Junior chuxx says:

You heard wrong brah, vzw is the best!!

Posted via Android Central App on my VZW 4G LTE GS4

jimbo says:

I know.

Yet despite the ravenous justifiable scorn Verizon overwhelming derives in these forums, Verizon added 1.1 million new customers in the most recent quarter essentially rendering the opinions of this virulently ebullient subgroup totally irrelevant.

Go figure!

yankeesusa says:

The reason they keep adding customers is because Sprint keeps losing them. Since AT&T is just as expensive yet less coverage and more congestion Verizon will continue to gain customers even if they raise prices and decrease data caps. Those that live in area that only Verizon has good coverage are the ones keeping Verizon getting so much money. Luckily where I live T-Mobile has great coverage so I chose them. I had Verizon years ago when their prices where a little less taxing on the wallet.

Posted via Android Central App

dzyuba says:

Funny to read all the "_____ is bad because of my bad experience" comments.

I am sure most people choose a carrier on more than just the monthly reoccurring cost. Our company is currently on Verizon and has been for a while - good coverage and price with a sizable discount. As much as I open to switching to another carrier it has yet to happen because there isn't a better fit for us. Most carriers cannot even compete with our discounted price. Even T-Mobile was offering about a 5% savings on our bill but after testing coverage with some phones they provided us it did not work as well as what we have.

Enjoy whatever service works for you and your wallet!

overfloater says:

Ditching VZW in the next week or so. I'm afraid T-Mobile's new offers are simply too good to pass up -- for my situation, at least.

With VZW, I'm paying $80/mo base for limited minutes, limited domestic texts, and 2GB data (which I don't even come close to using, but there's no smaller/cheaper data package). I send/receive a fair number of international texts, for which I pay through the nose in both directions. I travel internationally at least a couple of times a year and being on a CDMA phone (and the associated hassle/cost of dealing with a temporary global phone) is a pain in the ass. Coverage is average-to-flaky, 4G especially, and 3G speeds are dire. And my apartment is basically a cell "dead zone" except right up against the front window -- admittedly also a problem with AT&T, so it's probably not VZW's fault, but VZW offers no WiFi calling option. Oh, and locked bootloaders: nuff said.

With T-Mobile, the same base charge will net me unlimited domestic minute & texts, unlimited international calling & texts, and an *appropriate* amount of data. It'll include free international roaming text & data and hugely discounted roaming voice. And I'm guaranteed to be on a GSM phone whatever I get now or upgrade to later, so no extra hassles or restrictions there. T-Mobile offers WiFi calling/texting at no additional charge, meaning my cell phone will *actually function* in my apartment. (This is *huge* for me.) Oh, and I'll be on a shiny new phone ;) (with upgrade options every 6 months, not 18.)

I'm sure VZW works out for some people but for my situation/location it's just too restrictive and awkward. I like that T-Mobile is trying to shake things up, give people a little more freedom with prepaid plans and regular upgrade options, and aiming to entice the "global community" market with its international focus. Too many people are sick of getting locked into long, restrictive contracts and hit with endless surcharges and roaming fees. I, for one, appreciate T-Mobile offering people what the customer wants, rather than trying to push the company's preferences on them.