Verizon reports growth in Fios, wireless

Verizon reports net income was down slightly in the fourth quarter of 2008.

Verizon Communications posted net income of US$1.2 billion in the fourth quarter of 2008, up slightly from the fourth quarter of 2007, with growth in wireless and broadband services buoying the company.

Net income in the fourth quarter of 2007 was $1.1 billion. The telecommunications giant also reported revenue up from $23.6 billion to $24.6 billion.

Excluding one-time costs, Verizon's net income for the quarter was $1.7 billion, down slightly from $1.8 billion in the fourth quarter of 2007. Earnings per share for the quarter, excluding one-time items, was $0.61, meeting analyst expectations, according to Thomson Reuters.

For the year, Verizon reported revenue of $97.4 billion, up more than 4 percent from 2007. Verizon posted net income of $6.4 billion for the year, up from $5.5 billion for 2007.

"We think we had a very solid quarter," Ivan Seidenberg, the company's chairman and CEO, said during a conference call. "We had an excellent year. We think that we've built solid momentum going into 2009."

Seidenberg suggested the company's 2009 financial results could be affected by the struggling U.S. economy, but he said it was difficult to forecast the extent of the impact. "We see no reason that the momentum we've developed ... should not continue in some way," he said. "The level of success we have will be tempered somewhat by what the economy gives us, but at this point, our view is we will continue to perform well."

Verizon Wireless revenue for the quarter was $12.8 billion, up more than 12 percent from the fourth quarter of 2007. Verizon Wireless added 1.4 million new customers during the quarter, bringing its customer total to 72.1 million, the company said.

Verizon's Fios fiber-based broadband service added 282,000 customers, compared to 244,000 in the fourth quarter of 2007. Verizon's Fios television service added 303,000 new customers, compared to 226,000 in the fourth quarter of 2007. The company had 1.9 million Fios TV customers at the end of the year, doubling from a year earlier.

"Fios just gets better from here," said Chief Financial Officer Doreen Tobin.

Verizon reported a decrease of 68,000 DSL (Digital Subscriber Line) customers during the quarter.

Consumer broadband and video revenue was $1.2 billion, up 42 percent from the fourth quarter of 2007.

Verizon's wireline revenue was $11.9 billion. Revenue at Verizon Telecom, serving residential and small-business customers, and Verizon Business, serving large businesses, each dropped about 2 percent from the year before. At Verizon Telecom, this was the smallest decrease in 12 quarters, the company said.

"So far Verizon is handling the bad economic environment very well," said Jeff Kagan, an independent telecom analyst. "Perhaps it is the services they sell. Perhaps it is the fact that customers are saving money and staying home. Verizon sells telephone, television, wireless and Internet services. These are the core services that should continue to do well during the bad economy."

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags financial resultsverizon

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Grant Gross

IDG News Service
Show Comments

Father’s Day Gift Guide

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?