WASHINGTON (MarketWatch) -- Verizon Communications Inc. on Monday said second-quarter profit fell 7.2%, hurt by higher costs and less demand among business customers pinched by the recession.
VZ 31.15, -0.35, -1.11%
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Net income for the nation's largest phone company (VZ 31.15, -0.35, -1.11%) fell to $3.16 billion, or 52 cents a share, in the three months ended June 30, down from $3.40 billion, or 66 cents, earned in the same period a year earlier.
Quarterly revenue jumped 11.3% to $26.86 billion, fueled by Verizon's acquisition of Arkansas-based Alltel. Adjusted sales rose a much smaller 1.9%.
Omitting one-time items, Verizon would have earned 63 cents a share, compared with an adjusted 67 cents in the comparable 2008 quarter. Verizon incurred one-time costs totaling 11 cents a share related to work-force reductions and the integration of Alltel's assets.
New York-based Verizon had been expected to earn 62 cents a share on revenue of $26.9 billion, according to the consensus of analysts compiled by FactSet Research.
As Verizon reported Friday, the company gained a net 1.1 million wireless customers in the latest quarter. Mobile revenue surged 27.7% to $15.48 billion, though growth would have been 7.6% if adjusted for the Alltel acquisition.
The company also added 300,000 customers for its fiber-TV service and a record 303,000 for its fiber-Internet service. Verizon has spent billions of dollars to build the nation's fastest fiber network and develop another source of growth to go along with wireless.
Yet gains in those parts of Verizon's business failed to fully offset a continued decline in Verizon's older wireline segment. Revenue fell 5.2% to $11.49 billion.
Shares of Verizon, which closed Friday at $31.50, were flat Monday in premarket trading.
VZ 31.15, -0.35, -1.11%
INDU 9,093, +23.95, +0.26%
T 25.45, -0.03, -0.12%
XTC 663.87, -5.30, -0.79%
20%0%-20%-40%-60%
ASON09FMAMJJ
Net income for the nation's largest phone company (VZ 31.15, -0.35, -1.11%) fell to $3.16 billion, or 52 cents a share, in the three months ended June 30, down from $3.40 billion, or 66 cents, earned in the same period a year earlier.
Quarterly revenue jumped 11.3% to $26.86 billion, fueled by Verizon's acquisition of Arkansas-based Alltel. Adjusted sales rose a much smaller 1.9%.
Omitting one-time items, Verizon would have earned 63 cents a share, compared with an adjusted 67 cents in the comparable 2008 quarter. Verizon incurred one-time costs totaling 11 cents a share related to work-force reductions and the integration of Alltel's assets.
New York-based Verizon had been expected to earn 62 cents a share on revenue of $26.9 billion, according to the consensus of analysts compiled by FactSet Research.
As Verizon reported Friday, the company gained a net 1.1 million wireless customers in the latest quarter. Mobile revenue surged 27.7% to $15.48 billion, though growth would have been 7.6% if adjusted for the Alltel acquisition.
The company also added 300,000 customers for its fiber-TV service and a record 303,000 for its fiber-Internet service. Verizon has spent billions of dollars to build the nation's fastest fiber network and develop another source of growth to go along with wireless.
Yet gains in those parts of Verizon's business failed to fully offset a continued decline in Verizon's older wireline segment. Revenue fell 5.2% to $11.49 billion.
Shares of Verizon, which closed Friday at $31.50, were flat Monday in premarket trading.
