Verizon CEO reports strong growth in second quarter

By on
Verizon has posted their financial earnings for the second quarter of this year, showing a rise of 1.9% in revenue, but net income fell 2.8% year over year. The carrier reported revenue of $26.9 billion, up from $26.4 billion and a net income of $5 billion, from $5.2 billion. These figures are adjusted to account for the acquisition of AllTel in January.

The fall in net income is attributed to Verizonís wireline business, which declined in revenue by 5.2% to $11.5 billion. However, broadband connections grew by 9.4% during the recent quarter. With a weakness in wholesale and enterprise segments, the company may cut 8,000 jobs in its wireline venture to reduce its cost structure.

At the close of the quarter, Verizon claimed to be serving 9.1 million broadband customers Ė a net increase of 186,000 from the first quarter. Its DSL subscribers waned by 117,000, but those losses were countered by 303,000 new Fios broadband and 300,000 Fios TV customers.

Verizonís wireless division reported a rise in customers, driving its subscriber count to 87.7 million, with 1.1 million net additions. Wireless revenue rose to $15.5 billion, from $14.4 billion in the year ago quarter, and net income rose to $4.5 billion from $4 billion. Verizonís CEO, Ivan Seidenberg, said the companyís growth was strong.

Add New Comment

TechSpot Members
Login or sign up for free,
it takes about 30 seconds.
You may also...
Get complete access to the TechSpot community. Join thousands of technology enthusiasts that contribute and share knowledge in our forum. Get a private inbox, upload your own photo gallery and more.