Wireless gains boost Verizon results

28 Oct 2008

Verizon Communications has reported a 4.1% rise in sales in the third quarter, with results boosted by a strong performance at its cellular subsidiary Verizon Wireless. Revenues for the three months to end-September stood at USD24.8 billion, up from USD23.8 billion in the year-earlier period. Adjustments for the sale of non-core wireline assets earlier this year see the level of sales growth reach 5.4%. Net profits rose from USD1.27 billion to USD1.67 billion year-on-year. Verizon Wireless added 2.1 million net new customers in the third quarter, taking its total subscriber base to 70.8 million. 630,000 net new users were added through Verizon’s acquisition of Rural Cellular Corp. The wireline division reported a 12% year-on-year fall in the number of residential access lines with the unit’s operating revenues down 1.7% at USD12.2 billion. The FiOS broadband internet and TV business continues to perform well, however; the company added 233,000 net new FiOS TV customers and 225,000 net new FiOS Internet customers in 3Q 2008. Verizon’s Chairman and CEO, Ivan Seidenberg, commented: ‘The strategic investments we made over the past few years continue to drive growth in wireless, enterprise, broadband and video.’ Seidenberg told analysts that he expects earnings to slow for the rest of the year, with 8% per-share earnings growth for the full year, which is down on the double-digit growth reported so far in 2008.

United States, Verizon Communications, Verizon Wireless