Verizon Communications has reported a 15.2% increase in its net profit for the fourth quarter of 2008 to USD1.24 billion, with the growth driven largely by the cellular unit Verizon Wireless. Revenues for the quarter were up 3.4% at USD24.65 billion. Sales at the wireless unit rose 12.3% year-on-year to reach USD12.8 billion, with 1.2 million retail net subscriber additions taking its total customer base to 72.1 million. This will rise to over 80 million once subscribers of newly acquired Alltel Corp are transferred to the Verizon Wireless network. The fixed line division lost 911,000 customers in the final three months of 2008 and the ADSL broadband subscriber base also fell, losing 68,000 users. This was offset by growth at the FiOS fibre-optic broadband business, where 282,000 net new customers were added, taking the total to almost 2.5 million.
For the full year 2008 Verizon reported revenues of USD97.35 billion, up 4.2% on the 2007 figure. Consolidated net income was up 16.4% at USD6.43 billion. Capital expenditures totalled USD17.2 billion in 2008 compared with USD17.5 billion the previous year. ‘Verizon has shown that it is able to compete effectively in this economic environment,’ said Chairman and CEO Ivan Seidenberg. ‘We grew profits and maintained strong cash flows throughout 2008. In the fourth quarter, we continued to produce top-line growth, fuelled by strong sales volumes for broadband, wireless and strategic business services.’