TMCnews Featured Article

Bolstered by its recent acquisition of a major wireless telecom company, Verizon Communications Inc. today posted 5 percent year-over-year growth in earnings for the first quarter, to $3.21 billion, besting analysts’ predictions.

 

With what it called strong demand for its wireless as well as Internet and TV services, Verizon – the United States’ second-largest telecom provider, which acquired Alltel (News - Alert) Corp. for $5.9 billion in January – also posted earnings of 58 cents per share for the quarter, up from 57 cents one year ago.

 

The company’s chairman and chief executive officer, Ivan Seidenberg, said Verizon’s (News - Alert) business groups achieved “excellence” in the first quarter.

 

“Our operational and financial discipline produced continued revenue and earnings growth, as well as an expansion of our already strong operating cash flows,” Seidenberg said. “A highlight of the quarter was our successful completion of the Alltel acquisition. We quickly began integration efforts, and we are aggressively pursuing synergies.”

 

That could be very good news for Verizon and its shareholders – and very bad news for rival AT&T.

 

As TMCnet reported earlier today, rumors are emerging now that Verizon could become a carrier for Apple Inc.’s iPhone. Experts say such a move could devastate AT&T (News - Alert), whose recent earnings report reveals how heavily the company relies on its iPhone (News - Alert) business.

 

During the quarter, Verizon Wireless added 1.3 million net customers – more AT&T’s 1.2 million as well as the 1.18 million that analysts were expecting. Operating revenues grew 11.6 percent year-over-year, to $26.6 billion, Verizon said.

 

Seidenberg credited the company’s apparent success in navigating the down economy on placing a focus on customers.

 

“Verizon is in a unique position,” he said. “We are tapping into new market opportunities in wireless, broadband, video and global enterprise, and we already have the assets and capabilities to sustain our cash flows and grow total shareholder returns.”

 

In its wireline division, Verizon says it added 299,000 new FiOS (News - Alert) TV customers and a record 298,000 new FiOS Internet customers, for a total of 2.2 million FiOS TV customers and 2.8 million FiOS Internet customers.

 

Interestingly, broadband and video revenues from consumer customers in wireline mass markets totaled $1.3 billion in the first quarter – a year-over-year quarterly uptick of 36.3 percent.

 

Also, sales of strategic business services – including IP, managed services, Ethernet and security solutions – generated $1.5 billion in revenue, up 7.5 percent from the first quarter 2008.