Verizon revenue up, income flat

Verizon reports $900 million in revenue growth for the third quarter of 2005 compared to the same period last year, but net income was flat from a year ealier.

Verizon Communications reported Thursday net income of US$1.9 billion for the third quarter of 2005, with income essentially flat from the third quarter of 2004.

Excluding one-time items, Verizon's net income this quarter was US$1.8 billion, the same amount reported in the third quarter of 2004. Verizon's one-time items included a gain of $37 million for the sale of a New York City office building and tax benefits of US$115 million, the company said.

The New York City-based telecommunications company reported operating revenue of US$19 billion, up from US$18.1 billion in the third quarter of 2004.

Verizon's net income for the quarter translated into earnings per share of US$0.67, or US$0.66 per share before one-time items. Analysts surveyed expected earnings per share of US$0.64, according to Thomson First Call.

Verizon, close to completing an acquisition of competitor MCI, had a "very strong quarter," Ivan Seidenberg, the company's chairman and chief executive officer, said in a statement. The company is making investments in wireless, broadband and enterprise services, "areas where customers are ready and willing to buy our services," Seidenberg added.

Verizon's domestic telecom services revenue was down slightly from the third quarter of 2004, from US$9.5 billion to US$9.4 billion.

Verizon's revenue included US$8.4 billion from Verizon Wireless. The wireless operation's revenue was up US$1 billion from the third quarter of 2004. Verizon Wireless added 1.9 million new customers during the quarter, bringing its customer base to 49.3 million, the company said.

The company added a record 389,000 new broadband customer connections, a quarterly record, Verizon said. Verizon's broadband offerings include DSL (digital subscriber lines) and its FiOS fiber-optic service. Data revenues were up 10.9 percent to US$2.2 billion.

Combined revenue from Verizon's wireline and wireless data services were US$2.8 billion, a 23.3 percent increase from the third quarter of 2004.

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