Verizon 1st-qtr profit, revenue beat expectations

Apr 27, 2009 By RACHEL METZ , AP Technology Writer
FILE - In this July 28, 2008 file photo, a cell phone user passes a Verizon store in New York. Verizon Communications Inc. on Monday, April 27, 2009, reported earnings grew 5 percent in the first-quarter as more consumers signed up for its wireless, Internet and TV services, despite the recession.(AP Photo/Mark Lennihan, file)

(AP) -- Verizon Communications Inc. said Monday its earnings grew 5 percent in the first quarter, boosted by its acquisition of Alltel Corp. and strong demand for its wireless, Internet and TV services.

Verizon, which is the second-largest telecommunications provider, earned $3.21 billion, or 58 cents per share, compared with $3.05 billion, or 57 cents per share, a year ago.

Excluding charges related to its acquisition of Alltel, Verizon earned 63 cents per share - 4 cents higher than analysts polled by Thomson Reuters had expected.

Revenue rose almost 12 percent to $26.6 billion. That topped Wall Street's expectations of $26.3 billion in revenue.

Revenue from Verizon Wireless, which is a joint venture with Vodafone Group PLC of Britain, rose 30 percent to $15.1 billion.

During the quarter, Verizon Wireless added 1.3 million net customers - more than the 1.2 million rival AT&T Inc. reported last week and the 1.18 million that analysts were expecting.

Verizon also brought in 13.2 million customers from the $5.9 billion acquisition of Alltel, which closed in January. ended the period with 86.6 million wireless customers.

Wireline revenue, which includes Verizon's local-phone business and the services it sells to corporate and government customers, fell 3.8 percent to $11.6 billion.

The company said it ended the quarter with 8.9 million high-speed Internet customers, up 8 percent from last year. Subscribers to its FiOS fiber-optic Internet service rose more than 55 percent to 2.8 million, while FiOS TV service subscribers rose 84 percent to 2.2 million.

In a client note, Sanford Bernstein analyst Craig Moffett called the results "close to a carbon copy of what we saw with AT&T."

Verizon shares fell 39 cents, 1.3 percent, to $30.61 in morning trading.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Daily that challenged LA Times shuts down

add to favorites email to friend print save as pdf

Related Stories

EBay 1st-qtr profit, sales fall on weak economy

Apr 22, 2009

(AP) -- EBay Inc. said Wednesday the weak economy contributed to declines in both earnings and revenue for the second consecutive quarter, but the online marketplace operator beat analysts' expectations.

AT&T earnings fall, but iPhone cushions the blow

Apr 22, 2009

(AP) -- Cost-cutting and the lure of the iPhone softened the effect of the weak economy at AT&T Inc., helping the country's biggest telecommunications carrier beat analyst estimates for the first quarter.

TI profit, revenue tumble on shrinking demand (Update)

Apr 20, 2009

(AP) -- Texas Instruments Inc. said Monday that first-quarter profit and revenue tumbled as competition heightened and demand for its chips shrank amid the recession, but the results still beat the company's own expectations ...

Microsoft secures Verizon mobile search deal

Jan 08, 2009

Microsoft Corp. has bested rivals Google Inc. and Yahoo Inc. by securing an agreement to become the default provider of Internet search service to mobile phone customers of Verizon Wireless, a Verizon executive said Wednesday.

Fleeing customers haunt phone co. in New England

Mar 12, 2009

(AP) -- Phone companies fear that customers will increasingly switch off their landlines in favor of wireless phones or phone service from cable TV providers. So the last thing FairPoint Communications Inc. needed was to ...

Recommended for you

Daily that challenged LA Times shuts down

2 hours ago

The Los Angeles Register, a newspaper launched earlier this year to challenge the region's dominant Los Angeles Times, announced Tuesday it was shutting down.

User comments : 0