Verizon Announces Earnings, 2.2 Million iPhone Activations
The iPhone has been good to Verizon, the largest mobile operator in the US - at least until AT&T is allowed to purchase T-Mobile. On Thursday, the mobile giant "beat the street" by announcing that it more than tripled net income in the first quarter.
Verizon said that Q1 profits were $1.44 billion (51 cents a share) compared to $443 million (16 cents a share) in Q1 2010. As expected, a certain Apple product helped drive that record profit. Verizon activated some 2.2 million iPhones, even though the iPhone 4 was available for less than one-third of the quarter for which earnings were reported.
On a consolidated basis, Verizon's total operating revenues were $27.0 billion in first-quarter 2011, an increase of 0.3 percent compared with first-quarter 2010, the company said.
Verizon, however, totally eviscerated AT&T in another category of new subscribers. Verizon Wireless picked 906,000 new subscribers. AT&T, on the other hand, picked up 62,000. Verizon now enjoys better than 104 million total connections.
"In the first quarter, Verizon Wireless solidified its industry leadership with results that once again showed sustainable, profitable growth," said Verizon Chairman and CEO Ivan Seidenberg. "We are executing on our business plans and building momentum, and we are on track to meet both our revenue and earnings objectives for the year."