Verizon Wireless's Q1 2014 results see $21 billion in revenue and 539,000 postpaid subscribers

Verizon BlackBerry Q10
By Derek Kessler on 24 Apr 2014 08:33 am EDT
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Verizon's first quarter results are in, and mirroring rival AT&T, they saw some rather impressive growth. Verizon as a whole saw $30 billion in revenue, but even with their substantial non-cellular businesses, Verizon Wireless accounted for a whopping $20.9 billion of that income. That's an increase of nearly 7% from this quarter last year, though growth through their retail outlets was slightly lower.

The wireless business has proven profitable for Verizon, with a profit margin of 35%. That too is an increase, up from 32.9% year-over-year. That's $7.3 billion, for those keeping track at home. The jump comes in no small part thanks to Verizon's $130 billion purchase of the remaining 45% share of Verizon Wireless that was held by Vodafone.

Much of that increase revenue and profit comes thanks to the 549,000 new subscribers Verizon Wireless added this year, with 539,000 of those signing up for traditional post-paid contracts. That's not quite as many new customers as AT&T, though Verizon Wireless had both higher revenue and earnings. Verizon ended the quarter with 97.3 million subscribers, 72% of whom were using smartphones.

Source: Verizon Wireless

49 comments

deremi

Hmm wonder how TMO is.

raino

Same here. If both AT&T and Verizon did well (at least Verizon did, I haven't seen actual profit numbers for AT&T,) that must mean either Sprint hemorrhaged big time, or both TMO and Sprint hemorrhaged.

Brutal Efficiency

Doesn't mean any of them haemorrhaged. Not everyone has a subscription to a carrier. There are still people without phones, and perhaps a lot of them are starting to subscribe.

My 55 year old father (business owner as well) will be getting his first phone this year.

Quality Poultry - Channel PIN: C004B64D1

raino

That would have to be a LOT of non-subscribers. The US is very close to, if not already saturated, so I still think that these aren't 800k virgin subs, but lateral subs (or at least a significant majority of them.)

crucial bbq

Considering the population of the U.S., those 549,000 new customers are roughly about 2% of the total population.

Hardly near saturation.

raino

As of 6/2013, 91% of US adults were using a cellphone, so yeah--that's saturation. I doubt these are youngsters signing Verizon and AT&T contracts (considering these are two of the more expensive carriers and, you know, contracts with a minor can be voided,) so just two carriers signing up 2-3% of the unsaturated market in one quarter is highly improbable.

PLTM

Last quarter TMO CEO was all over twitter screaming how they took AT&T and Verizon customers when AT&T posted a drop in customer growth. This quarter you can't hear a peep out of him. I'm a TMO customer but I can't stand how arrogant the CEO is. It almost like your dealing with a child looking attention. Well I hope he sees now that Randall is sleeping well at nights while he (John Legere) worrying about Randall sleeping habits. Just look at John Legere tweets lately, no jags at the competition. It's almost like he was humbled.

raino

Lol. May 1 is when TMO reports its results. We'll see what happened. They've posted losses in all three Uncarrier quarters. Granted, the second of these three quarters was when they bought Metro PCS, but Q3 of three's losses were greater than Q1 of three's.

medic22003

Verizon gained a ton of customers over us cellular completely botching their billing for month after month. I'm sure at&t and tmo got some of those too, but us cell was bleeding customers for awhile.

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marcoad320

We won't know till next month about TMO. The main reason why people stay with VZ is because they have either a small business or are a corporate company that can write off the bill on their taxes. When something is expensive you try and write it off as a business expense not use it as a personnel unless you like overpaying for things because your rich.

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David Tyler1

And also Verizon will continue to add customers because of their vast coverage where in some places where T-mobile and Sprint does not exist.

kjjb0204

That doesn't make any sense. Businesses aren't staying with vz because they can write it off. They can do the same with the other carriers. Businesses and consumers stay for the network. Do you know what writing it off means? It's not free - they just get a tax deduction. It's not a bigger deduction if they use vzw compared to any other carrier.

travaz

The Company that I work for just went to VZW because we got tired of Sprint Network not working in way too many places as well as calls being dropped and general bad service. By the way I am located in a large metro area and thier coverage here sux. Thats why we went to VZW. Cheapest is not always the best option.

koool1

Verizon needs to promote the Z30. That will give them the edge they need!!!

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Kevin Michaluk

Man these carriers know how to print money.

It's like a mandatory tax on living in the year 2014.

raino

What's more impressive is posting such numbers in the so-called Uncarrier era. Kinda makes you wonder how that's going.

Brutal Efficiency

Now imagine what BlackBerry could do with such numbers.

Super-duper-mobile-computing here we come?

Quality Poultry - Channel PIN: C004B64D1

crucial bbq

Technology has gotten to the point where a two-year old phone is still good enough, if not still more phone, for the masses. To add, Pew Research shows that the average American only installs a handful of apps and out of those only use one or two on a regular basis...Despite what some of the yahoos on here will claim, the average American has no need or current desire for octocores, 4gig RAM, 3D graphics, etc.

ThunderShock2005

Ummm, no, planned obsolescence is still a thing, and the waste produced by this practice is still a huge concern to environmental scientists.

Posted from my BlackBerry Q10 on AT&T

Patrick Pierobon

Hmmmm, can we say: "They are charging us too much!" I know in Canada they are! Rogers and Bell are bending us over and ramming us in the.....................................

crucial bbq

I used to think that.

If you are on a family plan it gets cheaper....and cheaper... with the more lines added...they also give discounts to employees of various employers...the list is rather extensive. I currently pay near the same as I did when I was on T-Mo. Plus my phone works on Cape Cod or in northern/western Maine. When I was on T-Mo I had to hope I would be close enough to the border to pick up a Rogers signal.

raino

Oh, don't you worry. As bad as our carriers are, yours up north are still worse. I've looked at Canadian carrier pricings, and yikes. But that's what you pay for living in an extra-awesome country, I guess.

Jedi_Blackberry

BOHICA w/no vasaline!

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TrueKulcha

Relevance being? They all too thief as some would say lol.

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TrueKulcha

@ Kevin, I couldn't agree more. If someone is preparing a personal budget, communication will have to certainly be a big piece of that pie nowadays

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VR6

How is this relevant to BlackBerry?

Thuggidy

I was trying to figure that out myself. I can see future potential of Verison business profit connecting to Blackberry if the management to capitalize on Enterprise,(maybe?)

21stNow

Because most people use cellular service on their BlackBerry devices?

F2

I definitely contributed - they removed my Employee Discount when I retired although I was assured it would continue.

Wolf35Nine

The customer is getting overcharged horribly.

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nt300

Hope TMO loses there shirts for the ridiculous stunts they've pulled with BBRY.

Hopefully John Chen secures both Verizon and AT&T to help push BB10 devices. As he mentioned in one of his interviews.

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Dukun

Don't be too hasty. Folks may not like T-Mobile or what happened with BlackBerry, but their presence is only benefiting cellular customers. The "big two" with only one other company would make things worse than they already are. I like T-Mobile's no- contract stance, and also what they have done with international roaming. I may be wrong, but I don't remember AT&T having identical-coverage no-contract plans before T-Mobile. So, because of T-Mobile's actions, I could now afford to switch to AT&T if I choose. Then switch back if I need to, and so forth. AT&T certainly didn't do this out of the goodness of their hearts. Nor did T-Mobile. But would it happen with less players?

rngeek

How much of the profits came from the sales of BlackBerry 10 phones?

Donnierock

I went back to Verizon a couple of weeks ago after being gone for about three years. The pricing has been curbed (here in the US) greatly for single line individual usage, as compared to three years ago when it was astronomical and only the rich and famous could afford it. I also got my Q10 there for free. The Z10 is also free, both with a two year contract. I have no problem with contracts as long as the phones are subsidized and the consumer gets the benefits of it. I also wanted a better wireless system to call on. My home phone system runs on Verizon Wireless too, through Straight Talk. So yes, Verizon should post positive sells and customer base, not just because of me, but by what they are starting to offer the consumer. BlackBerry could do with some positive advertising from Verizon as reviews on the website for the Q10 and Z10 are extremely positive.

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Dukun

The Z30 reviews aren't half bad either! I was even considering going back to them for the Z30 + plus great coverage, but I use mobile hotspot for uploading work photographs, and their more affordable single line offerings restrict data use to the device only, so I would be forced to use the more expensive share plan. Although it is cheaper than it used to be.

LyBerry

Not as much growth but more profit reflects Verizon truly being the most expensive carrier. However, it also shows they're doing something right to post those kind of numbers. I have definitely been happy with their service and, I believe in getting what you pay for. I used to have AT&T and I did like their service but, once I went Verizon, I never looked back. Even though the other carriers have more attractive price plans, they have yet to show and prove they can provide the quality of service I am used to.

Those of us hoping Verizon would respond to the competition and make their plans cheaper can stop wishing. With those kind of numbers, they have no motivation to make any more changes. Oh, well. Thankfully, my bill did go down with the data plans introduced rather than the older unlimited data plans.

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BerryRipe

I just want the darn "Verizon" branding off my Q10. I used goofoff to remove it from my 9900 but it won't remove it from the Q10.

 BlackBerry Q10  Keep The Faith 

coffee-turtle

They caught on to you BerryRipe. :-)

coffee-turtle

If they are your carrier, you know why.

anon5129477

This is one area I wish the US government would normalize. A phone is really more like a Utility such as a common house hold computer and internet connection. Its becoming a requirement just as much as the water or electricity.

att better get in line and show more support for BB. we will switch if we have to!

raino

Can you imagine how the rates for cable and cellular service would plummet if the federal government decided airwaves are essentially utilities?!

chapa6sigma

I have Verizon. Service is good. They never promote blackberry so they are on my shitlist

They just happen to be higher on shit list then apple and tmobile and sprint and ATT. That's why i use them.

Delta Champion

bbdodgersdude

I read that VZW loss 138k cell phone (post-paid) customers. I read it in the WSJ.
http://m.us.wsj.com/articles/SB10001424052702303380004579519974135792910...

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Bacon Munchers

21 Billion eh?

Shows how much highway robbery these corporations are doing at our cost.

Go BlackBerry WiFi calling....

Tookey

That just goes to show how much they are ripping customers off with the high monthly fees. Thumbs down!

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TonyRomo9

Verizon will have one less customer soon. I'm going back to ATT. If you are 25 seconds late on your phone bill they hound you to death and act like the entire organization is going under

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rjawdarian

Seriously what does all this have to do with blackberry? It's either your trying to say profits came from BlackBerry, which it definitely didn't with their major loss. Or a verizon article has been misplaced on crackberry forums. :S

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ojaninoa10304

This is really awesome to me. It gives me a little hope that BlackBerry will rise to the top again.

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Herbie52

Blackberry now has an iPhone Killer, where's verizon?

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