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Verizon Reports Jump in Revenue, Drop in Profits

5:30 am on October 30, 2007 | Category: Business, Corporate, Telecom Services

American telecom giant, Verizon Communications Inc., posted a 34% drop in third-quarter profits yesterday, due in large part to a one-time tax charge. The company did experience higher overall sales, however, with a 5.8% jump in quarterly revenue.

Verizon’s third-quarter profits totaled $1.27 billion ($0.44 per share), compared with $1.92 billion in the same three month period last year. A one-time tax charge of $0.16 per share applied due to the company’s investment in Italy’s Vodafone Omnitel. Excluding this and other one-time charges, the company would have earned $0.63 per share for the period.

Verizon added 1.6 million wireless subscribers during the summer quarter, for a total user base of 63.7 million, making it a close second to AT&T in the U.S. cell phone market. The New York-based telecom giant also added 229,000 customers to its ever-expanding FiOS broadband network, as well as 202,000 FiOS TV subscribers.

“Our third-quarter results show that we have hit our stride as a leading wireless, broadband and enterprise company,” commented Verizon CEO and Chairman, Ivan Seidenberg, in a statement. “In recent years, we have transformed our business model and revenue base. Our results throughout 2007, and especially in the third quarter, show that our strategy has been successful. We expect to build on these results in the fourth quarter and beyond.”

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