Verizon Communications (VZ)

Wireless retail (non-wholesale) gross customer additions were up 26.0 percent over the second quarter of 2008. On a pro forma basis, retail gross customer additions were down slightly, by 0.6 percent, due in part to fewer additions in the business market.

Verizon Wireless had 87.7 million customers at the end of the quarter, an increase of 27.7 percent year over year and 7.9 percent on a pro forma basis. Verizon Wireless is the largest wireless company in the U.S. in terms of total customers and revenues.

The company also has the most retail customers of any U.S. wireless provider and continued to grow its high-quality base, adding a net of 1.1 million retail customers in the quarter, for a total of 85.2 million retail customers.

Verizon Wireless continued to lead the industry in customer loyalty, as measured by total churn and retail post-paid churn. Both improved over the first quarter 2009, to 1.37 percent and 1.01 percent, respectively.

Revenues totaled $15.5 billion, up 27.7 percent year over year and up 7.6 percent on a pro forma basis. Service revenues were $13.3 billion, up 27.2 percent year over year and up 9.0 percent on a pro forma basis, as demand continued to grow for data services. Data revenue grew to $3.9 billion, up 52.6 percent and up 33.2 percent on a pro forma basis.

Service ARPU (average monthly service revenue per user) decreased 0.8 percent year over year to $51.10. On a pro forma basis, service ARPU was up 0.6 percent. Total data ARPU was $14.96, up 18.9 percent year over year and up 22.8 percent on a pro forma basis.

Wireless operating income margin, adjusted for acquisition-related charges and integration costs, was 28.8 percent, up 20 basis points year over year and up 70 basis points on a pro forma basis. Adjusted on the same basis, EBITDA (earnings before interest, taxes, depreciation and amortization) margin on service revenues was 46.3 percent, an increase of 70 basis points year over year and 10 basis points on a pro forma basis.

The integration of Alltel operations remains on schedule, with nearly half of the customers acquired in the Alltel merger converted to the Verizon Wireless billing system as of mid-July.