IDG News Service - Verizon Communications reported 3.9% growth in revenue for the third quarter and 21.2% growth in net income, driven by gains in mobile revenue and customer additions for its Fios broadband and television services.
Verizon on Thursday reported revenue of $29 billion for the third quarter, compared to $27.9 billion in the third quarter of 2011. Net income was nearly $4.3 billion, up from $3.5 billion a year ago. Fios growth led to the highest growth in consumer wireline revenue in 10 years, officials said.
Net income attributable to Verizon was $1.6 billion, up 15.5% from a year ago. Vodafone owns a 45% stake in Verizon Wireless.
Verizon has "significant momentum" going forward, CFO Fran Shammo said during a conference call. "Overall, [it was] a very good third quarter."
Earnings per share, excluding one-time items, was $0.64, meeting analyst expectations. Including one-time costs of $232 million for patent settlements, earnings per share was $0.56.
Verizon added 1.8 million retail mobile customers during the quarter, company officials said. The company now has 95.9 million retail customers, up 5.7% from a year ago. Verizon's new Share Everything mobile plan, including unlimited voice and text along with a pool of data to be shared among multiple devices, has been more popular than expected, officials said. The company introduced Share Everything in June.
Mobile service revenue was $16.2 billion, up from $15 billion a year ago. Net income for Verizon's wireless division was up 17.4% from the third quarter of 2011.
In Verizon's wireline division, the company added 136,000 Fios broadband and 119,000 Fios TV connections during the third quarter. Verizon now has 5.3 million Fios broadband and 4.6 million Fios TV customers.
About two-thirds of Fios customers have purchased a triple play of broadband, TV and phone service, Verizon said.
Verizon has 8.8 million broadband customers, including Fios and DSL, up 2.3% from a year ago.
Wireline revenue was $9.9 billion, declining 2.3% from the third quarter of 2011. But consumer wireline revenue grew 4.6% from a year ago, the largest year-over-year quarterly increase in a decade, Verizon said.
Grant Gross covers technology and telecom policy in the U.S. government for The IDG News Service. Follow Grant on Twitter at GrantGross. Grant's e-mail address is [email protected].
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