While Sprint is slashing jobs, Verizon Communications has reported a strong fourth quarter with more growth ahead. On Tuesday, Verizon reported a 15 percent increase in earnings for the quarter, proving the economic downturn has not stymied the market for wireless devices and services.
Verizon earned $12.4 billion, or 43 cents a share, up from $10.7 billion, or 37 cents per share, in the year-ago period. Earnings were 61 cents per share after job cuts, in line with analyst expectations. Revenues rose 3.4 percent over the year-ago period, totaling $24.6 billion. Analysts had predicted $24.74 billion.
“Verizon has shown that it is able to compete effectively in this economic environment,” said Chairman and CEO Ivan Seidenberg. “We grew profits and maintained strong cash flows throughout 2008. In the fourth quarter, we continued to produce top-line growth, fueled by strong sales volumes for broadband, wireless and strategic business services.”
A Growing Customer Base
Verizon also grew its customer base. The nation’s second-largest communications provider added 1.4 million customers, almost all retail. In all, Verizon boasts 72.1 million customers, a 9.9 percent increase. That figure doesn’t include the customers Verizon acquired when it purchased Alltel. Counting Alltel subscribers, Verizon Wireless now serves more than 80 million customers.
Verizon Wireless continued to have low churn — 1.35 percent among all customers, and 1.05 percent among the company’s retail post-paid customers. Verizon also reported an 8.4 percent increase in revenue from strategic business services.
“The Verizon story in 2008 was one of customer growth and product innovation, based on the strategic technology and broadband infrastructure investments we have made year after year,” Seidenberg said. “We have built a solid foundation to continue to create value for our customers and shareholders in 2009 and beyond.”
Infrastructure Is Important
The one area where revenue shrank for Verizon was on the landline side. Verizon…