Verizon doubles profits
Verizon Communications doubled its third-quarter net profits off one-time gains and improved results in its wireless and long distance business. But its overall revenue increased only slightly, following the overall decline of its core access line business.
Verizon posted a net profit of $4.41 billion, up 135% from last year’s third quarter earnings of $2.3 billion. The net profit, however, includes $1.8 billion in asset sales and another $1 billion in tax benefits. Excluding the one-time items, Verizon’s profits came in at $2.11 billion, in line with analysts’ expectations.
CEO Ivan Seidenberg credited Verizon’s national breadth and its diversified service offerings as the reasons why Verizon has managed to move forward while the telecom industry falters.
“These results show that Verizon is executing effectively as we pull away from the pack in the telecom sector,” Seidenberg said. “We have demonstrated the ability to add customers and gain market share during troubled economic times.”
While results for broadband and long distance divisions excelled--44% year-over-year growth in long distance and 70% in DSL--Verizon said its domestic access line revenues decreased 1.8% to $10.2 billion and its total lines in service dropped 3.6%. Verizon CFO Doreen Toben, blamed this on increased competition in the local exchange market and took the opportunity to criticize regulators for what Verizon considers the current unfair competitive landscape.
Verizon reduced its capital expenditures to $2.6 billion for the quarter, bring its total capital spending for the first three quarters to $8.1 billion. The carrier also managed to reduce its debt by $6.8 billion to $51.8 billion.
Toben said Verizon expected its 2002 revenue to be even or down by 1% over 2001.
Want to use this article? Click here for options!
© 2013 Penton Media Inc.
In this Webinar you will learn how to create a real-time relationship with your customers, how to proactively improve the customer experience, and how to successfully target and cross-sell services to boost incremental revenue.
- Megabytes to Megabucks, Bandwidth to Business Models: How 4G Is Changing Everything
- How to Unplug Your Redundant Telco Apps To Save Money and Improve Efficiency
- When IaaS Isn't Enough: Service Provider Business Models to Drive Growth and Build Margin
- How to Transform Your Aging Telco Voice Network to Drive New Profits and Revenue
- Creative Licensing Approaches for Telcos & Their Network Equipment Vendors
- Smart Home Opportunity: Balancing Customer Data & Privacy
This paper discusses the rise of Diameter and benefits of Diameter Protocol.
- Conducting The Orchestration – Order Management at the Speed of Business
- Toward a Converged Network Edge
- Beyond Spam – Email Security in the Age of Blended Threats
- 6 Important Steps to Evaluating a Web Filtering Solution
- The Expertise to Protect You from Botnet and DDoS Attacks
- Seeing is Believing – Bridging the Order Visibility Gap
Service providers are under tremendous pressure to turn up new services faster then before and, at the same time,
to do it at less expense - and intra-office fiber is one of the biggest challenges in terms of both cost and service
From the Blog
Join the Discussion
Get more out of Connected Planet by visiting our related resources below:
Connected Planet highlights the next generation of service providers, as well as how their customers use services in new ways.Subscribe Now