American telecom service provider Verizon today said its Q1 2014 revenue rose 4.8 percent to $30.8 billion, while income grew 15.1 percent to $7.2 billion. Wireless and FiOS were the main growth drivers.
Verizon said capital expenditures (Capex) reached $4.15 billion in Q1 2014. Though Verizon will target Capex of $16.5 billion to $17 billion in 2014, there will be a decrease in capital spending as a percentage of total revenues.
Verizon wireless revenues rose 6.9 percent to $20.9 billion. Out of this, service revenues grew 7.5 percent to $18 billion. Retail service revenues increased 6.7 percent to $17.2 billion.
Retail postpaid ARPA rose increased 6.3 percent to $159.67.
Verizon Wireless added 549,000 retail net connections, including 539,000 retail postpaid net connections and the total retail connections reached 103.3 million, including 97.3 million retail postpaid connections.
Smartphones accounted for more than 72 percent of the Verizon Wireless retail postpaid customer phone base against 70 percent in Q4 2013.
Earlier, AT&T said smartphones accounted for 92 percent of postpaid phone sales. AT&T’s ARPU for smartphones is about twice that of non-smartphone subscribers.57 percent of AT&T’s postpaid smartphone customers used an LTE-capable device.
Also read: AT&T Q1 2014 result: revenue up 3.6%, income flat, $21 bn Capex unchanged for the year
Verizon wireline revenue increased 6.2 percent to $3.8 billion. Consumer ARPU for wireline services increased 11.3 percent to $120.17.
Representing 74 percent of total consumer revenues, FiOS consumer revenues grew 14.6 percent, and total FiOS revenues grew 15.5 percent.
Verizon added 98,000 net new FiOS Internet connections and 57,000 net new FiOS Video connections.
Verizon FiOS Internet rose 9.9 percent to 6.2 million. Verizon FiOS Video connections grew 8.7 percent to 5.3 million.
Broadband connections rose 1.5 percent to 9 million. Verizon said it added 16,000 net broadband connections as FiOS Internet net additions more than offset declines in DSL-based High Speed Internet connections.