Verizon on Tuesday reported solid revenue and profit growth for the first quarter as its mobile customer base increased to 108.5 million.
In the three months to 31 March, the U.S. telco giant generated operating revenue of $32 billion, up from $30.8 billion in the same quarter a year ago. Verizon Wireless accounted for the lion’s share, generating $22.3 billion compared to the fixed line business’ $9.5 billion.
Operating income grew 11% to $8 billion, while net income attributable to Verizon increased on-year to $4.2 billion, or $1.02 per share, from $3.9 billion.
Analysts polled by Thomson Reuters expected earnings per share of $0.95.
"Verizon is off to a strong start in 2015 with another quarter of profitable growth," said Verizon CEO Lowell McAdam, in a statement. "We expanded our base of customers seeking a premium experience, and we grew revenues, earnings and cash flow during a quarter in which we also took significant steps to sharpen our strategic focus."
In the first quarter, Veri zon’s postpaid net customer additions increased to 565,000 from 539,000 in Q1 2014, bringing its total postpaid base to 102.6 million. Verizon said approximately 70% of these customers are on a 4G price plan. A 188,000 decline in prepaid customers meant Verizon ended the quarter with 108.6 million retail mobile connections, a 5.1% year-on-year increase.
Verizon Wireless’ EBITDA rose to $10 billion from $9.4 billion last year.
On the fixed side of the business, Verizon saw its FiOS high-speed fixed broadband subscriber base grew 9.3% on-year to 6.7 million, while the number of FiOS TV customers increased to 5.7 million from 5.3 million.
Verizon’s wireline EBITDA came in at $2.2 billion, flat compared to Q1 2014.
"We are confident in our ability to maintain momentum and continue to add value for customers and shareholders," McAdam said.
