Verizon posts earnings of $1.04 a share vs $1.01 expected

Verizon reports mixed earnings
Verizon reports mixed earnings

Verizon delivered quarterly earnings that beat analysts' expectations on Tuesday, boosted by an increase in wireless subscribers.

Shares of Verizon moved a bit higher before going negative in premarket trading following the announcement. (Get the latest quote here.)

The biggest U.S. wireless service provider reported a 2.4 percent rise in quarterly revenue as it added 1.1 million postpaid wireless subscribers ahead of the launch its online video service.

Net income attributable to Verizon was $4.23 billion, or $1.04 per share, in the second quarter ended June 30, compared with $4.21 billion, or $1.02 per share, a year earlier.

Revenue rose to $32.22 billion from $31.48 billion.

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Analysts expected Verizon to post earnings of $1.01 per share on revenue of $32.45 billion, according to a consensus estimate from Thomson Reuters.

The biggest U.S. wireless service provider added 1.1 million wireless retail postpaid subscribers—those who pay each billing cycle based on usage—on a net basis in the second quarter, in line with estimates from analysts polled by market research firm FactSet StreetAccount.

Customer defections, also known as churn in the telecommunications industry, for Verizon's wireless postpaid business dipped to 0.90 percent versus the 0.99 percent estimated by FactSet.

Revenue from Verizon's FiOS high-speed Internet, TV and phone service rose 10 percent to $3.4 billion, while tablet sign-ups totaled 852,000 in the quarter.

Wireless carriers have been offering heavy promotions and discounts on tablets as they look to boost crucial subscriber growth numbers and limit customer churn.

Verizon is gearing up to launch its online video service to unlock new revenue streams as competition in the wireless industry from smaller players such as T-Mobile US and Sprint heats up.

Verizon said it added 842,000 4G smartphones to its postpaid customer base in the quarter.

The telecom giant last month completed its $4.4 billion acquisition of AOL. Verizon was seen as making the move to take in AOL's successful advertising model and content brands like The Huffington Post and Tech Crunch.

Reuters contributed to this report.