Boston, MA 09/12/2014 (wallstreetpr) – Wireline and wireless communications services provider Verizon Communications Inc. (NYSE:VZ) Chief Executive Officer Lowell McAdam said that the company continued to witness strong adoption of 4G tablets and smartphones during the third quarter.
Net Additions
Speaking at an investor conference in New York, the CEO said that there was a net addition of 927,000 retail postpaid customers in the third quarter, according to the company’s statement. He also said that in terms of percentage of customers selecting its early-upgrade plan during the third quarter, it witnessed a much similar rate of the first quarter activities, which was about 12% of total activations of phone.
On a quarter-to-date over the previous year period, McAdam disclosed that it was able to achieve over 40% growth in net additions of retail postpaid connections. The CEO seemed to have taken the opportunity to provide a mid-review of its performance in the current third quarter.
Customer Growth
Verizon Communications Inc. (NYSE:VZ) said that it expects robust customer uptick and a low Edge adoption pace during the current third quarter to date to put forth pressure on its adjusted or non-GAAP EBITDA service margin of the wireless division on a quarter-over-quarter basis. The wireless division posted EBITDA service margin of 50.3% during the second quarter.
As far as its wireline division is concerned, the company believes that its FiOS would continue to fuel customer revenue growth. However, it sees pressure mounting on its enterprise and wholesale growth. Verizon Communications Inc. (NYSE:VZ) also predicts fluctuations in its non-GAAP EBITDA margin on a quarter-to-quarter basis despite the progress it has made in the wireline division during the first two quarters of the current year. The company blamed the fluctuations to timing of non-recurring costs and billings apart from the seasonality.
However, the company expressed its confidence of achieving its full year expansion of its EBITDA margin in the wireline division. The Verizon Communications Inc. (NYSE:VZ) said it would release its third quarter results on October 21, and more details can be expected then.
