Verizon Reports Q2, Names New CEO

The big buzz around Verizon (NYSE:VZ, news, filings) this quarter has centered around it being the company’s first full quarter selling the iPhone, but you couldn’t tell from the release which didn’t mention the product directly.  Verizon Wireless did add an impressive 2.2M connections, including 1.3M retail postpaid customers, giving them 106.3M in all.  They sold 1.2M 4G LTE smartphones in the quarter, but those weren’t iPhones of course – emphasizing that Verizon’s efforts are strongly focused on bringing its new 4G network to bear.  Overall, Verizon’s revenues of $27.54B and earnings per share of $0.57 were a bit ahead of composite analyst projections.

On the wireline side, Verizon put substantially more focus on its fiber and datacenter footprint than its brethren AT&T did.  Terremark, which the company acquired in April, provided $98M in revenue during the quarter, and its cloud services were immediately lumped into the company’s sales of strategic services – up 17.8% compared with the same period last year.  Global enterprise revenues totaled $4.0B in the quarter, up 3.6% on the year.  Verizon also detailed fiber expansions in the UK and Singapore, as well as its rollout of 100G to nine routes in the US.

But the big news I guess is that Ivan Seidenberg is stepping back into the Chairman role, and on August 1 Lowell McAdam will take over the reins as CEO.  While this process has been in motion for some time, not having Seidenberg at the helm will still take some getting used to.  McAdam has lately been COO and in charge of all business operations at Verizon, and was CEO of Verizon Wireless from 2007 to September of 2010.

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Categories: Financials · ILECs, PTTs · Wireless