Verizon Profit Rises, Weathers Economic Slowdown - Line Losses (
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LINE LOSSES
In contrast to the strong wireless results, residential
access line subscriptions fell 10.9 percent from a year
earlier. Wireline operating revenues fell 1.4 percent from a
year earlier to $12.3 billion.
That was similar to AT&T, which announced last week that it
added 1.3 million net wireless subscribers in the first quarter
but suffered a heavy fall in residential phone users.
Like AT&T, Verizon said it was able to buffer the fall in
traditional phone subscriptions with growth in high-speed
Internet subscribers.
The company said it had a total of 8.5 million broadband
customers at the end of the quarter, up 14.9 percent.
That included users of both DSL and FiOS, an advanced
service based on an all-fiber network that can also deliver
high-definition video.
Verizon said it added 263,000 FiOS TV customers, bringing
the total to 1.2 million.
"Our plan to roll out FiOS Internet and video is beginning
to pay off for us," Strigl said. "We knew that our historic
dependence on voice needed to shift to broadband and data. And
we're able to offset that erosion we're seeing in voice through
data and FiOS."
Verizon shares rose to $37.75 from their previous close of
$37.04 on the New York Stock Exchange.
(Additional reporting by Sinead Carew; Editing by Steve
Orlofsky)
© Thomson Reuters 2008 All rights reserved
LINE LOSSES
In contrast to the strong wireless results, residential
access line subscriptions fell 10.9 percent from a year
earlier. Wireline operating revenues fell 1.4 percent from a
year earlier to $12.3 billion.
That was similar to AT&T, which announced last week that it
added 1.3 million net wireless subscribers in the first quarter
but suffered a heavy fall in residential phone users.
Like AT&T, Verizon said it was able to buffer the fall in
traditional phone subscriptions with growth in high-speed
Internet subscribers.
The company said it had a total of 8.5 million broadband
customers at the end of the quarter, up 14.9 percent.
That included users of both DSL and FiOS, an advanced
service based on an all-fiber network that can also deliver
high-definition video.
Verizon said it added 263,000 FiOS TV customers, bringing
the total to 1.2 million.
"Our plan to roll out FiOS Internet and video is beginning
to pay off for us," Strigl said. "We knew that our historic
dependence on voice needed to shift to broadband and data. And
we're able to offset that erosion we're seeing in voice through
data and FiOS."
Verizon shares rose to $37.75 from their previous close of
$37.04 on the New York Stock Exchange.
(Additional reporting by Sinead Carew; Editing by Steve
Orlofsky)
© Thomson Reuters 2008 All rights reserved
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