Monday, October 30, 2006

Verizon Profit Rises on Wireless Gains

Verizon Communications on Monday reported a slight increase in third-quarter profit to nearly $2 billion, as the phone giant added 1.9 million net wireless customers.

The New York-based company VZ posted net income of $1.92 billion, or 66 cents a share, compared with $1.87 billion, or 67 cents, earned in the year-ago third quarter.

Revenue rose 26% to $23.25 billion from $18.49 billion, boosted by wireless growth and a contribution from long-distance carrier MCI, which Verizon acquired in January. Adjusted for the MCI deal, sales rose a lesser 3.6% on a pro forma basis.

Although Verizon's wireless division keeps growing at a fast clip, the company's traditional local-phone business is still losing customers. The company faces tough competition as cable-television companies move into the phone business. And some subscribers have dropped landline connections entirely or switched to cheaper Internet phone services.

Source: MarketWatch from DowJones

No comments: