Telecom operators have begun to announce results for the second quarter of 2011. Earnings varied in the second quarter of 2011, but many European telecom companies are predicted to struggle due to weaker markets. In the U.S., both Verizon and AT&T performed better than expected, but Verizon fell short on iPhone sales, lagging behind AT&T.
Vodafone Group PLC (London, England), who was predicted to outperform other European telecom providers, reported a Q2 data revenue growth of 24.5% year-on-year, to $2.1 billion in 2Q11.
The service provider has been breaking into emerging markets to make up for weak economies and forced price cuts around Europe. Of these emerging markets, India saw an organic service revenue growth of 16.8%, and Turkey, 32.1%, while Britain was up 1.7% and Germany stayed flat. It was only a month ago that Vodafone announced it would be selling minority stakes in assets it did not control. Since the announcement, the telecom provider has sold stakes in Japan, France, China and Poland.
Vodafone had a Q2 capital expenditure of $1.95 billion, and a Q2 organic service revenue growth of 1.5%, down from the 2.5% growth recorded in the previous quarter.
AT&T Inc (Dallas, Texas, U.S.A.) posted better-than-expected subscriber growth, adding 331,000 net subscribers in the quarter, compared with the average expectation for 91,000 from seven analysts.
Total wireless subscribers were up 1.1 million, to reach 98.6 million subscribers in service.
The telecom provider had consolidated revenues of $31.5 billion in the second quarter, up 2.2%, versus the year-earlier period. AT&T had a 9.5% growth in wireless revenues, with a 7.4% increase in wireless service revenues.
Smartphone sales increased to 5.6 million, making more than 70% of total postpaid sales smartphones sales. Postpaid subscriber Average monthly revenues per subscriber were (ARPU) up 2.0% to $63.87.
In Q2 of 2011, Verizon Wireless (Basking Ridge, N.J., U.S.A.), the number one U.S. mobile service provider fell short of what was expected to be a large iPhone subscriber base, after the mobile operator began offering the iPhone in February, but performed better than expected financially, with a revenue of 27.5 billion, a 2.8% increase from the second quarter of 2010.
Verizon activated 2.3 million iPhones this quarter, compared to 3.6 million by AT&T. Although, Verizon Wireless did add three times as many total net subscribers in the quarter than AT&T.
The company experienced a 1.9% growth in ARPU in Q2, and consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) for second-quarter 2011 totaled $9.0 billion, up 5.2% year over year.
Smartphones were 36% of Verizon Wireless’ retail postpaid customer phone base, up from 32% at the end of first-quarters 2011.
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