Verizon 4Q net profit down USD1.83 billion year-on-year

27 Jan 2010

Verizon Communications has reported net profit of USD1.1 billion for the fourth quarter of 2009, down from USD2.93 billion as a one-off charge of USD3 billion related to workforce reductions in the company’s ailing wireline division hit bottom line earnings. Revenues for the three months ended 31 December 2009 were USD27.09 billion, up USD2.45 billion year-on-year. Company CEO, Ivan Seidenberg, said: ‘In last year’s turbulent economy, we took significant steps to strengthen Verizon going forward. We focused on expanding wireless data and set the stage to deploy a nationwide 4G network later this year. Our fourth quarter earnings reflect costs to re-size and simplify our wireline business. This transformation is realigning our wireline cost structure, improving productivity, and focusing resources on sales of FiOS and strategic business services.’ Seidenberg added that he expected the company to see improved growth in 2010 and 2011.

The company’s fixed line customer base continued to decline in 4Q09, ending the period with 32.56 million switched accesses in service, down from 36.16 million a year earlier. In contrast the firm added 547,000 net new broadband subscribers in the year ended 31 December 2009, closing the year with 9.22 million in total. The company’s FiOS operations also continued to report growth, ending 2009 with 3.43 million internet and 2.86 million TV subscribers, up from 2.48 million and 1.92 million respectively. Verizon Wireless ended 2009 with a consolidated mobile customer base of 91.25 million, up from 72.05 million at year-end 2008.

United States, Verizon Communications, Verizon Wireless