Verizon Communications has reported a 10% decline in net income to $2.9bn for the third quarter 2009, compared to a net income of $3.2bn in the same quarter last year. Revenue was up 10.2% at $27.3bn. Skip related content
Operating income fell 4.5% to $4bn, while diluted EPS fell 31% to $0.41 compared to $0.59 in the same quarter last year. The company increased the number of wireless customers by 26% to 89 million. It also added 191,000 net new FiOS TV customers and 198,000 net new FiOS internet customers.
Wireless revenue rose 24.4% to $15.8bn, with services revenue up 24% at $13.5bn, and equipment and other revenue up 29% at $2.3bn. Wireline revenue declined 5% to $11.6bn.
During the quarter, Verizon Wireless and Google announced a partnership to leverage the Verizon Wireless network and the best of the Android open platform to deliver advanced mobile applications, services and devices. Verizon Wireless also formed a joint venture with Qualcomm to provide machine-to-machine wireless communications and smart services offerings for healthcare, manufacturing, utilities, distribution, and consumer sectors.
Verizon also formed an alliance with Sybase during the quarter to enable multinational companies to manage the deployment and support of mobile workers. It also announced that its president and chief operating officer Dennis F Strigl will retire from the company by the end of 2009.
For the nine-month period, the company reported a 4% decline in net income to $9.3bn compared to $9.7bn a year ago, on revenue up 13.3% at $67.6bn.
Ivan Seidenberg, chairman and chief executive at Verizon, said: "Verizon continues to generate strong cash flow, which we have used in building the foundation for sustainable, long-term shareowner value. As the US economic and employment picture improves, and as we accelerate reductions in our own cost structure, we are well-positioned to quickly and significantly improve our growth profile."
