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.