Verizon Tacks on FiOS Subs in Q1

Adds 90,000 FiOS Tv, 133,000 FiOS Internet Subs
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Verizon Communications said the rate of sub growth for FiOS TV and FiOS Internet rose in the first quarter, while FiOS voice additions slowed during the period.   

Verizon, which just introduced a new Custom TV package that has drawn some pushback from ESPN, added 90,000 FiOS TV subs, up from 57,000 in the year-ago period. It ended the period with 5.73 million FiOS TV subs.

The company complemented that by tacking on 133,000 FiOS Internet customers, up from 98,000 in the year-ago period, extending that total to 6.74 million.

Verizon said FiOS Internet penetration was 41.5% at the end of the quarter, up from 39.7% a year ago. Roughly 62% of residential FiOS Internet customers now take a “Quantum” tier, which offers speeds from 50 Mbps to 500 Mbps, versus 59% at the end of 2014. The  highest growing tier is FiOS’s 75 Mbps service, which is now taken by more than 20% of all FiOS customers, Verizon said.

With DSL numbers factored in, Verizon added 41,000 total broadband subs in the quarter, up from 16,000 a year earlier, giving it a total base in the category of 9.24 million. Verizon aid it migrated another 47,000 customers from copper connections in the quarter, inching in toward a full-year goal of 200,000.

Growth was slower for FiOS Voice, as Verizon added 59,000 subs in that area, down from 102,000 in the year-ago period. It ended the quarter with 4.66 FiOS Voice subs

Verizon Wireless added 565,000 retail postpaid net adds in Q1, up 4.8%, giving it a total of 108.6 million retail connections at the end of the period. During the quarter, it  added 621,000 4G smartphones to its sub base, noting that 4G devices (including tablets) not constitute about 70% of its retail postpaid connections base, up from 49% a year earlier.

On the financial front, Verizon posted Q1 earnings of $1.02 per share on revenues of $31.98 billion, versus $30.82 billion in the year-ago period. Analysts were expecting earnings of 95 cents on revenues of $32.27 billion.

Total FiOS revenues grew 10.2%, to $3.4 billion.

“Verizon is off to a strong start in 2015 with another quarter of profitable growth,” said Verizon Chairman and CEO Lowell McAdam, in a statement. “We expanded our base of customers seeking a premium experience, and we grew revenues, earnings and cash flow during a quarter in which we also took significant steps to sharpen our strategic focus. We are confident in our ability to maintain momentum and continue to add value for customers and shareholders.”