Fueled by top billing at
stores across the country, the wireless carrier announced an impressive leap in subscriber numbers in its second quarter ended June 30. Verizon offered preliminary subscriber figures of 807,000 net new subscribers, a swift move up from the first quarter's additions of 518,000 customers. Verizon's wireless division is the combination of the wireless holdings from
and, on top of 10% year-over-year subscriber growth in the second quarter, now serves 28 million customers.
Verizon attributed the 56% sequential gain to the store-within-a-store program it launched with RadioShack and new pay-in-advance digital customer plans. Brimming with good news, Verizon also announced that customer churn dropped significantly, decreasing from 2.8% in the first quarter to 2.3% in the second. Churn climbed 0.2% in the first quarter, and the Street will be pleased to see that trend reversed, especially given the figure includes prepaid customers who are more apt to let their plans lapse.
Prepaid customers composed 15% of new subscribers in the quarter. Investors will have to wait until Verizon reports final second-quarter results on July 31 to gauge Verizon's balance of typically lower-spending prepaid customers to traditional subscribers.