A good Q1 earnings report for Verizon (VZ): Its fibre-optic ‘FiOS’ business picked up a lot of new TV and broadband subscribers, and Verizon Wireless continued its strong performance.
Verizon said it added 299,000 net new FiOS TV subscribers and 298,000 net new FiOS broadband subscribers during Q1, for a total 2.2 million TV subs and 2.8 million broadband subs. Despite the crappy economy, that’s faster growth than a year ago, when Verizon added 263,000 TV subs and 262,000 broadband subs. (This is bad news for cable and satellite companies.)
Meanwhile, Verizon Wireless grew by 1.3 million net subscribers — excluding the roughly 14 million it picked up as part of its acquistion of Alltel. That’s down from 1.5 million net subs added during Q1 last year, but not surprising, given the economic slowdown and Verizon’s tendency to take mostly high-value customers. (Many of whom are buying the AT&T-exclusive Apple iPhone.)
Overall, Verizon’s revenue of $26.6 billion beat the Street’s $26.3 billion consensus and adjusted EPS of $0.63 beat the Street at $0.59.