Verizon Communications has reported a 29% fall in net profit as a result of a one-time charge and slower subscriber growth. Profit plunged to USD2.28 billion from USD3.21 billion during the same quarter of 2009. Results for the three month period ended 31 March 2010 included a USD970 million charge related to US health care reform. Revenue climbed 1.2% to USD26.92 billion.
Verizon reported that its wireless subsidiary Verizon Wireless added a total of 1.6 million wireless subscribers in the quarter, of which 423,000 were post-paid contract customers. Wireless revenue increased 4.4% compared to the first quarter of 2009, while the churn rate remained low at 1.07% for contract subscribers. Much of the revenue increase came from data services, which were up 26.4% for the quarter.
On the wireline side of its business Verizon said it added 185,000 Fios internet subscribers and 168,000 Fios TV customers during the quarter, pushing the total customer base to 3.6 million and three million respectively. The average revenue per subscriber was up 12.3% compared to the first quarter of 2009. Verizon continues to lose access lines, reporting 17.9 million residential phone lines in service at the end of March, a decline of 11.9%.