Verizon Reports Lower Earnings, Wireless Soars

Verizon Communications Inc. on Monday reported lower-than-expected earnings, but its sister company, Verizon Wireless, exceeded analysts’ forecasts.

Verizon said it earned $1 billion, or 35 cents per share, during the fourth quarter of 2006, compared with $1.7 billion, or 59 cents per share, a year earlier. The company attributed the lower numbers, in part, to the taxes it had to pay when it sold its Dominican Republic assets and to costs related to the spinoff of its directories publishing business.

Verizon Wireless, on the other hand, topped $10 billion for the first time, executives said. Revenue totaled $10.1 billion in the fourth quarter of 2006, a 16.3 percent increase, compared to $8.7 billion for the fourth quarter of 2005. Verizon Wireless said it added 2.3 million customers for a sum of 59.1 million nationwide and said demand for data services also contributed to the revenue increase.

“We have become a leaner, more competitive and global company, with a greater percentage of our revenues from broadband and other growth initiatives,” said Ivan Seidenberg, Verizon chairman and CEO, in a prepared statement.

Verizon Communications shares were up 3 cents on Monday afternoon, trading at $37.86, while Verizon Wireless stock was going for $37.93, up 10 cents.

Verizon Communications Inc. www.verizon.com  

Verizon Wireless www.verizonwireless.com

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