Verizon Communications, the second largest telecoms company in the US, has reported a 3.9% year-on-year rise in fourth-quarter profit, driven by new wireless subscribers, but said it missed its target for revenues as more fixed line telephony customers defected to its rivals’ cable services. For the period ending 31 December 2007 Verizon said net income climbed to USD1.1 billion from USD1 billion a year earlier on a 5.5% rise in quarterly sales to USD23.8 billion, just shy of Wall Street estimates of USD24 billion.
Verizon Communications reported a net loss of 875,000 phone lines in the quarter, an 8.1% drop from a year earlier, compared with an 8% decline in the previous quarter. For the year as a whole, Verizon lost 10.6% of its residential lines, while overall, the total number of landlines, including business customers, dipped to 41.4 million in 2007 from 45.1 million in 2006. On a more positive note, Verizon Wireless, its joint venture with the UK-based Vodafone Group, added two million cellular customers in the fourth quarter, for a total of 65.7 million by 31 December 2007. The number of home broadband subscribers grew 17.9% in 2007 from the previous year, it added. For the full year, Verizon earned USD5.5 billion, down from USD6.2 billion the previous year. Sales climbed to USD93.5 billion from USD88.2 billion.