Verizon Communications Inc. reported that its wireless division added a company record 1.5 million subscribers during the second quarter of this year compared with 1.3 million net adds during the second quarter of 2003 and finishing the first half of 2004 with 40.4 million total customers. The carrier noted its retail channels accounted for 1.46 million net additions during the quarter, which was a 20-percent increase compared with the second quarter of 2003.
Bolstering the carrier’s customer growth, which was greater than even the most aggressive analyst estimates, was a 7.5-percent increase in gross customer additions to 3.3 million subscribers and a drop in customer churn from 1.7 percent last year to 1.45 percent this year. In addition, Verizon Wireless said its cash expense per customer dropped 7.4 percent during the second quarter of this year.
Verizon Wireless also reported a company record of $50.80 in average revenue per user during the second quarter compared with $49.22 last year that when combined with the carrier’s strong growth resulted in a 25-percent year-over-year increase in wireless revenues from $5.5 billion during the second quarter of 2003 to $6.8 billion this year. Wireless data services contributed 4.2 percent, or $255 million, to wireless service revenues led by customers sending 2.3 billion text messages, 21 million picture messages and 23.4 million Get It Now downloads of games and content during the quarter.
“Verizon Wireless again extended its industry leadership with another outstanding quarter of profitable growth, including industry-record net customer additions,” noted Ivan Seidenberg, chairman and chief executive officer of Verizon.
