Verizon Wireless continues growth in 1Q08
Written by admin on April 30th, 2008 in Gadgets and Devices.
While some other wireless carriers struggle to remain competitive, Verizon Wireless is riding a wave a success. Earlier this week the company reported their first quarter results of this year. The biggest news was that the company had the highest net adds in the industry, ending the quarter with 1.5 million net customer additions. That gives Verizon Wireless a customer base of 67.2 million customers with 65.2 million being retail customers.
The company’s net customer additions for the quarter were up 11.5% compared to the same quarter last year. The company also saw double digit growth in revenue. Overall total revenue was up 13.2 percent. Data revenue was up an astounding 48.9% compared to 1Q07.
Fueling Verizon Wireless’ revenue growth was an increase in the average monthly revenue per customer (ARPU). Retail service ARPU was up a mere 1.3% while retail data ARPU was up 33.4% year over year. The company’s operating income margin also was the highest ever at 27.9% for the quarter.
Read more from the Verizon Wireless press release.
Brian’s Opinion
Verizon Wireless is on a roll. Their growth in subscribers continues to remain strong. They also have great revenue growth as a result. Even their future is looking brighter after getting some great additional spectrum in the last FCC auction. Some of that spectrum will even help with the company’s open network initiative.
The amazing thing about Verizon Wireless’ success last quarter is that they are having growth in a struggling economy. Nobody could ask for more from a company, especially a shareholder. Verizon Wireless is in a good sector when it comes to a struggling economy, though.
Businesses tend to turn to technology to improve processes and streamline costs. One solution many companies have turned to is wireless data network cards like those offered by Verizon Wireless. They end up being much cheaper than paying for Internet access at airports and hotels when needed. Most importantly, they ensure a connection is always available which improves productivity. That probably explains Verizon’s impressive growth in data related revenue.
Tags: wireless, speakers, design, digital
