Led by wireless growth of 25%, Verizon Communications reported Q2 operating revenues of $17.8 billion, compared with $16.8 billion in Q2 2003 -- exceeding market forecasts. Growth businesses, such as wireless, data and broadband, accounted for 52% of Verizon's Q2 revenues, compared with 46% of the company's second-quarter revenues last year.
Some highlights for Q2:
- Wireless: industry-record 1.5 million total net customer additions, 40.4 million total customers; 25.0% growth in total revenues; The company posted record-low churn of 1.45% per month. Wireless total revenues were $6.8 billion in Q2, compared with $5.5 billion in Q2 2003. This was the eighth consecutive quarter of double-digit, year-over-year wireless revenue increases. ARPU increased to $50.80.
- Domestic Telecom: operating revenues were $9.6 billion in the second quarter 2004, a 2.9% decrease compared with the second quarter 2003 and a slight increase compared with the first quarter 2004. Second-quarter results included an increase of 14.7% in revenues from all long- distance services, which were $1.0 billion compared with $0.9 billion in the second quarter 2003, and an increase of 5.7% in total data revenues, which were $1.9 billion compared with $1.8 billion in the second quarter 2003.
- DSL: 280,000 net additions in the quarter, for a total of more than 2.9 million lines
- Wireline Access Lines: there were 519,000 residential line losses in Q2, compared to 387,000 in Q2 2003. There were 155,000 business line losses in Q2, compared to 184,000 line losses in the preceding quarter.
- Long-Distance: 14.7% growth in revenues
- Bundles: Approximately 50% of Verizon residential customers have purchased local services in combination with either Verizon long-distance or Verizon DSL, or both.
- Enterprise Advance Initiative: the company is now targeting $250 million in new revenue for 2004
- Total company revenues: 6.0% growth in operating revenues; 64 cents in diluted earnings per share; consolidated operating income margin (operating income divided by operating revenues) of 20.9%
- Free Cash Flow: $1.6 billion in the quarter, up 25.2%
- Debt: Total debt at the end of the second quarter 2004 was $41.9 billion, compared with $45.4 billion at year-end 2003.
