Verizon Wireless released their impressively strong second quarter financial results.

The company reported a 7.3% increase, at %15.8 billion, in year-over-year service revenues compared to the same quarter of the previous year; 8.6% increase, at $15.2 billion, in retail service revenue; 18.5% increase in data revenues; 30.8% in operating income margin; and 49% increase in segment EBITDA margin on service revenues (non-GAAP), both record highs.  Their operating revenues are up 3.7% at $28.6 billion on a consolidated basis.

“Verizon delivered another strong quarter of earnings growth and cash generation, and we remain on track to meet our financial objectives and produce solid double-digit earnings growth for the year,” said Lowell McAdam, Verizon chairman and CEO. “Verizon Wireless has once again demonstrated its industry leadership, combining strong revenue growth with record margins and high customer loyalty.

“We reported sequential improvement in second-quarter Wireline margins, and we expect to see that improving trend carry through in the second half of the year. We also look forward to the closing of strategic transactions and to the integration of process improvements that will set the stage for continued long-term profitable growth across all our business units.”

The Q2 report also stated that their cash flow from operating activities is up by 20.1% at $9.3 billion – more than doubling free cash flow generated in the previous year.

Their stellar growth is attributed to the fact that they’ve added 1.2 million retail net customers, which includes 888,000 retail postpaid net customers.  At the end of the second quarter, Verizon has 94.2 million retail customers, a 4.9% increase year-over-year, including 88.8 million retail postpaid customers.

Verizon also reported that at the end of the second quarter, smartphones users are at 50%, up from 47% at the end of first-quarter 2012.

Verizon continues to roll out their 4G LTE technology and is now available to more than 230 million people in 337 markets across the U.S. – almost 75% percent of the population.

As for their FiOS, the bundled Internet access, telephone, and television service, operating revenues were $9.9 billion, a decline of  3.1% compared to last year’s second quarter report but reported that FiOS Internet penetration was up by 36.6%, and the FiOS Video penetration is up by 32.6%.

Verizon’s broadband connections increased by 2.6% at 8.8 million.  The increase in penetration is attributed to the fact that the company launched several network projects during the second quarter.  The projects include deployment of next-generation routing equipment on the global Private IP network.