Verizon today said it will retain its Capex at around $16.5 billion to $17 billion in 2014. However, there will be a decrease in Capital spending as a percentage of total revenues this year.

Announcing the result, Verizon said its Q2 operating revenues rose 5.7 percent to $31.5 billion.

The American telecom operator said its wireless business added 1.4 million net retail connections in the second quarter of 2014. It achieved low retail postpaid churn of 0.94 percent.

Verizon had 104.6 million retail connections, while 98.6 million are retail postpaid connections.

The wireless carrier said it posted 5.9 percent increase in service revenues and 5.3 percent growth in retail service revenues.

Its wireline business registered 5.3 percent increase in consumer revenues, while consumer ARPU rose 11 percent.

Verizon said its FiOS revenues grew 14.4 percent and added 139,000 FiOS Internet and 100,000 FiOS Video net additions.

Operating income increased 17.2 percent to $7.7 billion.

Consolidated operating income margin was 24.4 percent against 22 percent.

 

Wireless

Wireless revenues grew 7.5 percent to $21.5 billion. Service revenues rose 5.9 percent to $18.1 billion. Retail service revenues grew 5.3 percent to $17.3 billion.

Retail postpaid ARPA increased 4.7 percent to $159.73 per month.

Verizon Wireless added 1.4 million retail net connections – postpaid – and reached 104.6 million in Q2. This includes 98.6 million retail postpaid connections, a 4.6 percent increase.

Verizon Wireless had 35.2 million retail postpaid accounts, up 0.7 percent, and 2.80 connections per account, up 3.7 percent.

The company added 304,000 postpaid phone net additions and 1.15 million postpaid tablets.

Smartphones accounted for nearly 75 percent of the Verizon Wireless retail postpaid customer phone base, up from 72 percent in first-quarter 2014.

Verizon said XLTE is available in more than 350 markets.

Wireline

Verizon Wireline revenues increased 0.3 percent to $9.8 billion.

Wireline consumer revenues rose 5.3 percent to $3.9 billion, with FiOS revenues representing 75 percent. Consumer ARPU for wireline services increased 11 percent to $122.57.

Total FiOS revenues grew 14.4 percent to $3.1 billion.

Verizon added 139,000 net new FiOS Internet connections and 100,000 net new FiOS Video connections. Verizon had 6.3 million FiOS Internet and 5.4 million FiOS Video connections, representing increases of 9.3 percent and 7.6 percent, respectively.

FiOS Internet penetration was 40.1 percent against 38.6 percent. FiOS Video penetration was 35.3 percent compared with 34.5 percent. The FiOS network passed 19.3 million premises by the end of second-quarter 2014.

Broadband connections rose 1.5 percent to 9.1 million. Net broadband connections increased by 46,000 as FiOS Internet net additions more than offset declines in DSL-based High Speed Internet connections.

In second-quarter 2014, Verizon migrated an additional 70,000 customers to fiber.