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Verizon 2Q profit rises 93 percent

By Peter Svensson

Associated Press

Published: Tuesday, July 22 2014 1:29 p.m. MDT

This Oct. 17, 2012 file photo, shows a Verizon Wireless store in Little Rock, Ark. Verizon Communications Inc. reports quarterly financial results before the market opens Tuesday, July 22, 2014.

Danny Johnston, File, Associated Press

Enlarge photo»

NEW YORK — Verizon reported Tuesday that its second-quarter earnings nearly doubled after it secured full ownership of Verizon Wireless.

Profit jumped to $4.32 billion from $2.25 billion, or 78 cents per share. Net income per share grew, but at a lower rate, to $1.01 per share from 78 cents per share. That's because Verizon issued shares in February to pay Vodafone Group PLC shareholders for their share of Verizon Wireless.

Adjusted for non-recurring gains, chiefly from the sale of spectrum licenses to T-Mobile US, earnings were 91 cents per share. That just edged out the 90 cents per share that analysts were expecting, according to a survey by Zacks Investment Research.

Revenue rose 5.7 percent to $31.48 billion from $29.79 billion last year. Analysts expected $31.09 billion, according to Zacks.

Before February, Verizon Communications Inc. owned only 55 percent of Verizon Wireless, which is vastly more profitable than the Verizon's wholly-owned landline and FiOS properties. Vodafone, a British cellphone company, owned the rest until it was bought out for $130 billion in cash and stock.

Verizon Wireless, the country's largest cellphone carrier, continued its strong run in the second quarter. It added a net 1.4 million devices to Verizon-branded services, for a total of 104.6 million. Revenues grew 7.5 percent year over year. Tablets were a chief driver: Verizon added three tablets for every new smartphone.

Verizon shares rose 23 cents to $50.93 before the opening bell.

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