Verizon said its Internet of things business delivered about $495 million in revenue for the first nine months of 2015 as the company looks to diversify.
The company disclosed the Internet of things (IoT) sales in its third quarter earnings report. IoT revenue was $175 million in the third quarter. Verizon counts connections to things as well as services such as its hum telematics service.
On a conference call with analysts, Verizon CFO Fran Shammo said:
With our experience networks, devices, platforms, and applications, we are creating an ecosystem that will foster innovation and expand the entire IoT market. Here are a few examples of our early initiatives. In August we announced the commercial availability of home, and aftermarket vehicle technology and subtraction service creating a connected car driving experience that can operate more than 150 million vehicles in the United States. We're very active in smart city solutions markets and we have already announced a partnership with the city of Savannah, Georgia. Municipalities like Savannah are looking to take advantage of our intelligence solutions to integrate disparate systems, monitor traffic and safety conditions in real-time to improve efficiency and public safety.
These are just a few examples of the many opportunities we are pursuing. We are very well-positioned to capitalize on these new opportunities that require both the ubiquity of mobile service and capabilities of platforms above the connectivity layer. This will enable us to monetize uses through new commercial models including data analytics and applications.
Verizon's third quarter topped expectations with earnings of 99 cents a share on revenue of $33.2 billion. Non-GAAP earnings were $1.04 a share, two cents ahead of estimates. Verizon's revenue growth was up 3.1 percent excluding the addition of AOL, which was acquired for its advertising business.
Best known as a wireless carrier, Verizon added 1.3 million net retail postpaid connections. The company ended the quarter with 110.8 million total retail connections.
The company is transitioning its customers to its Edge installment plans over two-year contracts. The company added 5.6 million phones to its installment plan. Those installment customers are about 22 percent of its base.