Long Live The Tablet! Verizon Profits Beat Expecations On Strength Of Gadget’s Popularity

Verizon Wireless and Tablet Sales

Verizon Communications profits beat Wall Street expectations in the second quarter as subscriber growth was again helped along by tablet add-ons.

Revenue at the nation’s largest mobile provider missed expectations, as the company added 1.1 mainstream wireless subscribers, slightly above analysts expectations of 1.06 million.

The company leaned on tablets for growth, adding 852,000 devices, just 2,000 less than analysts at Wells Fargo had predicted.

Verizon has been facing steep competition from the T-Mobile “UnCarrier” campaign and Sprint Corp. Those companies are both offering cheaper and in many cases unlimited data plans that undercut the company’s own data and calling plans. T-Mobile has also focused on contract-free plans and BYOD (bring your own device) options.

Verizon posted earnings of $4.23 billion, or $1.04 a share, up from $4.21 billion, or $1.01 a share in the previous year. Revenue was 2.4% to $32.22 billion.

Analysts had predicted $1.01 a share in earnings and $32.5 billion in revenue.

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The company also added 26,000 new FiOS video subscribers and a net 72,000 FiOS Internet subscribers.

The company is now highly promoting its mobile division following its $4.4 billion acquisition of AOL Inc. With that agreement in place the company now owns claim to one of the largest desktop and mobile advertising platforms on the planet.

Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at OnlineDegree.com.